News digest
Compiled by Clive Goldthorp
1) SAIC Motor/MG and Roewe
MG TF’s target is the global market
Jon Griffin, Birmingham Mail 18th June, 2008
LONGBRIDGE owners Shanghai Automotive Industry Corporation are
already targeting overseas markets for the new MG TF following its UK launch,
it was revealed today. SAIC president Chen Hong told investors at the Chinese
giant’s annual shareholder meeting that export markets were on the horizon
for the two-seater sports car.
He confirmed that production would begin at Longbridge in August
- with a 40-strong dealership network established in the UK. He said initial
production from Birmingham would be modest. “We will do it step by step.
We will start with Britain and will consider selling to other markets eventually,”
he said.
The pledge reaffirms the relaunch of production at the Birmingham
car factory, which has been at a standstill since the closure of MG Rover in
April 2005 with the loss of 6500 jobs. The Chinese owners announced in May that
the MG TF would be launched on August 1, with other new models in the pipeline.
Meanwhile, the two-seater car is also being manufactured at Nanjing Automobile’s
new hi-tech plant on the outskirts of Nanjing, where 2,000 jobs have been created
by the firm’s investment in the popular British car brand.
A recruitment drive is currently under way for production and sales
and marketing staff for Longbridge, and Nanjing are planning a press launch
to follow the early August debut of the MG TF. SAIC is now in the driving seat
at Longbridge following the Shanghai group’s takeover of Nanjing at the
end of 2007. A new chairman, He Xiao Qing, is in place to steer the UK launch
of the MG TF.
Second boost for car industry as Nanjing sets a start date
Duncan Tift, Business Staff, Birmingham Post 18th June, 2008
The Midlands automotive sector has received a second major shot
in the arm with the news that MG owner Shanghai Automotive has told UK dealers
it expects to produce 600 of the new TF LE500 models between the start of production
in August and the end of the year.
That came as the new boss of Jaguar told Birmingham executives
yesterday that the company is staging a fight back against its rivals. He spoke
out just 24 hours after Jaguar Land Rover revealed plans to launch a recruitment
drive to find up to 600 new employees, less than a month after a £1.15
billion takeover by Tata Motors of India was completed.
SAIC’s UK dealers say that the first of the new sports cars are expected to be in UK
showrooms in September and price details are expected to be released
in the next few weeks. Nanjing Automotive, which had previously owned the Longbridge
brand, appointed 50 UK dealers last summer ready for the scheduled launch of
the model in September last year.
Following its merger with SAIC at the start of this year there
had been concerns that the dealership arrangements could change. However, one
dealer has now confirmed that the original supply agreement is being upheld
and the first cars will be rolling off the production lines at Longbridge very
shortly. Luffield Cars in Loughborough was the first UK dealer appointed to
sell the TF.
Managing director David Woods said: “We had struggled for
a long time to get information from China about what might be happening. However,
following the completion of the merger things have become a lot clearer and
SAIC seems to have got its act together.” Mr Woods said the company appeared
to have resolved problems caused by the withdrawal of Stadco from its agreement
to supply body panels for the new cars.
“Production has started in China of the steel panels, which
are now being produced on new presses. The word is that the quality is much
better, which is very encouraging. We have been told that production at Longbridge
will be ramped up in July and the cars will be produced from August ready for
delivery in September. They are expecting to make around 600 units between now
and the end of the year. There is no word on costs yet but I have taken part
in a cost clinic recently and prices should be released soon,” he added.
Mr Woods said he was also optimistic about the future of the brand with new
models said to be in the pipeline.
Of the other new models there is speculation they will include
a new luxury saloon, possibly an updated Rover 75, plus a new mid-range model,
possibly a European version of the Roewe 550 which was one of the stars of the
recent Beijing Motor Show.
Meanwhile, Geoff Cousins, managing director of Jaguar
UK, said he was confident Indian owner Tata had bought the company “for
the right reasons”. Speaking at the Breakfast Connections event run by Birmingham Chamber
of Commerce and Birmingham Forward, and held at the Botanical Gardens, he admitted
Jaguar faced big challenges and was still behind some of its premier competitors.
Mr Cousins admitted: “We have been on the back foot for a long time. We
have been beaten up.” But he said the new Jaguar XF had given confidence
to everyone at the company.
Roewe 550 - Officially on the market,
CCT tempted to get wallet out
China Car Times 19th June, 2008
The Roewe 550 officially jumped onto the Chinese market place earlier
today, pricing was announced, as were specifications of the car. The 550 is
China’s first ‘international car’ – the car which will
clearly shape China as a make it or break it car producing country. The car
was designed in the UK, by the hands of Ricardo 2010 who eventually came under
SAICs control. From what we believe, the Roewe 550 will eventually be branded
as an MG, and then sold into overseas markets. We have heard rumours of the
Roewe brand actually being launched in overseas markets, but we can’t
say for sure.
The Roewe 550 is available in five different packages:
550 Standard - 140,280rmb (manual trans)
550D - 150,280rmb (manual trans)
550S - 150,680rmb (auto trans)
550D - 160,680rmb (auto trans)
550G - 180,980rmb (auto trans)
It’s looking like the 550G is the model with all the trimmings
(airbags in every place possible) and the others only lacking certain items,
which is reflected by the minor differences in the price range. The prices are
a little higher than CCT expected, but not by much.
We really can’t wait to get behind the wheel of a Roewe 550
and tell the world what the ride is like.
The Roewe 550 comes into its own
Jin Jing, Shanghai Daily 20th June, 2008
SAIC Motor Corp yesterday launched its first self-developed mid-class
sedan, the Roewe 550, in Shanghai as it tries to challenge overseas rivals in
the most competitive market segment in China. The model also underscored SAIC's
efforts to speed up the development of its self-owned models, combining research
and development efforts at home and abroad.
Unlike its first model Roewe 750, the nation's largest car maker
said the Roewe 550 was developed from a brand new platform that it developed
entirely on its own after pumping more than 1 billion yuan (US$145.4 million)
in building its own R&D expertise. "The introduction of Roewe 550 is
a landmark step in SAIC's development of self-branded models, and also marks
the increased capability of independent research and development," said
Hu Maoyuan, chairman of Shanghai Automobile Industry Corp, parent of SAIC Motor.
The Roewe 550 model is expected to take on Toyota's Corolla, Ford's
Focus, Volkswagen's Sagitar and Honda's Civic in the fast-expanding mid-class
car segment. The car, which is equipped with a 1.8-liter turbo engine and comes
in five versions, will cost from 142,800 yuan to 189,800 yuan. SAIC is also
reportedly to hold talks with Germany's Karmann about assembling the Roewe 550
in Europe.
SAIC, the Chinese partner of General Motors and Volkswagen, established
the Roewe brand in 2006 as the Chinese central government encouraged major domestic
auto makers to roll out more self-branded models to revive its own auto industry
and pave the way toward building a global name.
SAIC plans to roll out more than 30 new self-owned models by the
end of 2010.
2) Jaguar and Land Rover
JLR to recruit hundreds of new engineers for eco-Jags
John Cranage, Automotive Correspondent, Birmingham Post 18th June, 2008
Jaguar Land Rover is launching a huge recruitment drive to find
up to 600 new employees, less than a month after a £1.15 billion takeover
by Tata Motors of India was completed. The luxury carmaker last night said the
bulk of the recruits would be engineers needed to develop a new generation of
cleaner, more eco-friendly vehicles.
But the company, which is based at Gaydon in Warwickshire, also
said it had "a significant number" of key vacancies in its purchasing,
finance and human resources departments. These vacancies are believed to have
been created by the departure of JLR’s previous owner, Ford. The key focus,
however, is on its need to recruit engineers to work on new technology and product
development programmes.
JLR said it was investing £700 million in sustainable technologies
to improve the environmental performance of its vehicles and was looking for
experienced, degree-educated engineers to work on a variety of "ground-breaking"
projects. In addition, it is launching a programme aimed at recruiting more
than 80 graduate trainees as well as 60 apprentices under an Advanced Modern
Apprenticeship scheme announced in March.
The Birmingham Post understands that decision to sign up a further
600 employees was taken by JLR executives and did not hinge on approval from
Tata Motors. "JLR now has a lot more autonomy under Tata to take decisions
such as this than it did under Ford’s ownership," an industry insider
said last night. "There is a feeling that Tata seems to be happy to take
a back seat and let local management get on with running the business on a day
to day business."
The latest JLR recruitment drive, which comes as Jaguar’s
Castle Bromwich factory in Birmingham is working flat out to meet strong global
demand for its successful new XF saloon, was welcomed by local business leaders
last night. Kiran Virk, policy adviser at Birmingham Chamber of Commerce and
Industry, said the announcement was "a welcome boost to the manufacturing
sector which is battling hard to fight off increasing raw material costs, a
downturn in the economy and global competition."
Ms Virk went on to say: "This is further proof that the West
Midlands can lead the field of research and development." Newly-appointed
JLR chief executive David Smith said: "This recruitment drive demonstrates
Jaguar Land Rover’s confidence in our future. With our new owners,
we have entered an exciting era with stunning new models and ambitious technologies.
I can’t remember a better time to be part of the British car industry,
and certainly it is a brilliant time for Jaguar Land Rover. Sustainability is
a business imperative and we need both experienced and newly qualified graduate
engineers to progress the technology projects of the future."
Des Thurlby, the company’s human resources director, said:
"The campaign is up and running and Jaguar Land Rover will be targeting
a number of different employment sectors to attract top quality candidates.
We shall also be working through a variety of channels from press advertisements
to the graduate milk round, and a new dedicated recruitment website. The work
on offer is cutting-edge and the rewards impressive. This business has a bright
future and we think it will be a very attractive place to work for the best
in our industry here in the UK."
JLR also said last night it had had a "tremendous response"
to an earlier scheme to recruit 25 undergraduates for vacation placements. The
company currently employs some 16,000 people at its car production plants at
Castle Bromwich, Solihull and Halewood in Liverpool and its product development
centres at Gaydon and Whitley in Coventry.
The drive to develop a new generation of "green" cars
is a legacy of Ford’s ownership of the two iconic West Midland companies.
It was in July 2006, long before speculation that the Detroit giant was thinking
of selling its flagship British possessions began to mount, that Ford announced
a £1 billion, UK-based project to make cleaner and more fuel efficient
cars. The work was to be centered on Jaguar’s R&D centre at Whitley,
Land Rover’s engineering facility at Gaydon and a counterpart Ford centre
at Dunton in Essex.
Lewis Booth, Ford’s top-ranking European executive, said
at the time: "Climate change is one of the greatest single challenges facing
the auto industry and society today." Both Jaguar and Land Rover claim
to be making strides towards cutting the emissions of their vehicles as well
as improving fuel efficiency. Land Rover, especially, is working to rid its
vehicles of the "gas guzzling" image that make them a favourite target
of environmentalists.
And Jaguar’s credentials have been boosted by news that its
flagship XJ 2.7 litre diesel car has been named Britain’s greenest luxury
car in the Environmental Transport Association’s car buyers’ guide
for the second year running.