News digest
Compiled by Clive Goldthorp
1) Aston Martin
Aston will revive Lagonda luxury brand
Tony Lewin, Automotive News Europe 1st September, 2008
The last production Lagonda was the William Towns-styled saloon from 1976.
Aston Martin today said it will relaunch its Lagonda brand to help
it expand into new markets. "The Lagonda brand would allow us to develop
cars which can have a different character than a sports car," said CEO
Ulrich Bez in a statement. "Lagonda will have its own niche with luxurious
and truly versatile products suitable for both existing and emerging markets."
Lagonda models would be vehicles that could be used all year round
in markets such as Russia where specialized sports cars such as Aston Martins
could only be used for three or four months each year, spokeswoman Janette Green
told Automotive News Europe. Currently, Aston Martin's luxury sports cars are
sold in 32 markets. The company aims to expand into more than 100 markets.
Lagonda would have a unique design language incorporating some
elements from the past, but also very future-oriented, Green said. Green said
Lagonda would not be building SUVs. In its heyday in the 1920s and 1930s, Lagonda
was associated with sumptuous luxury cars. Aston Martin will unveil a concept
for a Lagonda car at next year's Geneva motor show. Lagonda models could go
on sale by 2012.
The most recent Lagonda model, the V8 of 1976, was a sleek, dramatically
styled four-door sedan that was a poorly timed launch amid the European oil
crisis. It was a big success with wealthy Middle Eastern buyers. In 1993, Aston
Martin, then owned by Ford, showed an elegant Lagonda concept styled by Vignale
in Italy.
Lagonda could have even greater worldwide potential than Aston
Martin and would represent incremental volume for the company. "We will
clearly have to find a manufacturing solution, like we have done for the Rapide,"
said Green. In March, Aston Martin announced that its new Rapide sedan will
be assembled by Magna in Austria. Ford Motor sold Aston Martin to a consortium
of investors, including Prodrive owner David Richards, in 2007.
2) Jaguar and Land Rover
Land Rover cuts to avoid "stockpiling"
just-auto.com 29th August, 2008
Land
Rover on Friday said it would cut night shift Range Rover production from the
beginning of October and operate some lines at its Solihull, Birmingham assembly
plant on a four-day week from the start of next month but, as at Toyota's UK
plant in Derbyshire, no workers are being laid off at present. Minor cuts may
also be made at the separate Freelander plant near Liverpool.
"We won't be turning anybody [workers] away," a spokeswoman
insisted today. She said there would be some "non-production days on Fridays"
on the Discovery and Range Rover Sport trim and final lines at Solihull because
the company wanted to avoid "stockpiling". Workers would still come
in and perform other non-production tasks instead.
Fridays already were a traditional half day on the Range Rover
Sport and Discovery 3 line. Corporate affairs manager Mark Foster said that,
from the beginning of September, workers would be required to attend on Fridays
though "there won't be any production". He said Defender production
was increasing and some of the workers transferring to that model "was
a possibility if deemed necessary".
He said the company was moving from a paper-based work process
monitoring system to a computerised one for greater efficiency. "Obviously
that will entail some training," he said. There would also be health and
safety and WIP (Work in Progress) training plus maintenance. "They won't
be idle." As part of a wage settlement deal agreed last year, Land Rover
has already transferred about 300 workers to sister firm Jaguar's plant across
the city at Castle Bromwich, where demand for the new XF sedan exceeds supply.
Foster said it was possible a few more - probably no more than 100 - would go.
Foster said Land Rover "would take a little bit of volume
out of" Freelander production, built with the Jaguar X-type at the former
Ford Escort plant in Halewood on Merseyside. He noted as an aside, that the
X-type [though now withdrawn from the US], had seen a boost this side of the
Atlantic since a diesel automatic option had been added.
The company would "slow the Freelander line a little bit and,
next month, there could be some non-production days" but only two
or three and "only in September." "Freelander has not been affected to the
same extent," he added. He said the premium sector had been hit harder
than most in the recent downturn and was more labour-intensive.
"We're fortunate, we sell into over 160 countries and, although
some of our key markets are definitely being affected, we are seeing growth
in Russia of 100% year to date, China 150% up, Brazil and Middle East, North
Africa, Australia, they're all making very significant progress. To put it into
context, Russia will be our third biggest market this year."
Local newspaper the Birmingham Mail reported earlier this month
that Land Rover workers were told to work shortened weeks after returning from
their summer break - but the company insisted then it was for two weeks only.
Land Rover has insisted that its total sales for 2008 will still be the second
highest in the company's 60-year history after a strong first half. But its
UK sales were off a massive 38.39 per cent to 1764 units last month and down
14.08% to 23,629 year to date, according to SMMT data.
Reports today suggested that the share price of new Jaguar Land
Rover owner Tata was not doing too well, either, as clouds were gathering over its US$2.4bn
acquisitions of Jaguar and Land Rover from Ford last June. Rising fuel prices
have reduced the attraction of fuel-hogging Land Rover/Range Rover SUVs and
global economic woes are also eroding the prospects for upmarket vehicles.
Tata investors are said to be voting with their feet, driving the
Tata Motors share price down by more than 37% this year, compared with a 31%
drop in the benchmark BSE Sensex 30 index.
CityRover to go electric in Norway
Birmingham Post 3rd September, 2008
The Indica is better known in the UK as the former CityRover, although
an updated version of the old MG Rover hatchback was launched in India earlier
this year and it is this car that will be used for the project. Tata said its
intention was to have the electric vehicle running within a year with a view
to bringing it to the local market at a later stage.
Speaking at an industry conference in India, Tata managing director
Ravi Kant said: “This is one of the technologies that we are looking at,
as you know that electric cars are almost zero emission.” Rival manufacturers
including Nissan and Mitsubishi are preparing to roll out electric vehicles
of their own in the coming years to try and counter soaring fuel prices and
stricter emission rules. US giant General Motors meanwhile, is looking to beat
Toyota to the punch with its all-electric Volt. GM expects to have a showroom-ready
version of the car before the year is out.
Last week, Toyota said it would speed up the development of vehicles that
run only on electricity with the aim of mass producing them in the early
part of the next decade. Tata Motors' electric car, which would be left-hand
drive, has been developed in collaboration with a Norwegian firm, said Mr
Kant. "Right now we want to test it out in Norway with the Norwegian party.
A lot of infrastructure is required for electric vehicles and ... in Norway,
they are making arrangements for electric cars," he added.
The company said it would bring the electric car to its native market year
at "an appropriate time". The car will have the capacity to run for around
110 miles when it is fully charged although the mileage will vary depending
on the size of the battery and how it is driven, said the firm.
Meanwhile, violent clashes broke out in eastern India between supporters
and opponents of Tata Motors after the firm suspended work of its new Nano factory
because of a continuing land row. The high-profile project to build the world’s
cheapest car became embroiled in controversy after the local opposition party
in West Bengal state backed protests by some farmers against land seizures for
the £175 million plant.
After weeks of protests and threats against workers, Tata Motors
announced it was suspending work at the site and would be looking at alternative
locations for the project. The decision has sparked anger among supporters of
the project, many of them members of the state’s ruling communist party
or farmers who had got compensation or jobs at the factory. Police said Nano
supporters blocked traffic on a road leading to the factory in Singur, an hour’s
drive from the capital Kolkata, and beat up activists of the opposition Trinamool
Congress who had been protesting near the plant since last week.
Mamata Banerjee, chief of Trinamool Congress, had offered talks
to resolve the dispute just before Tata announced its decision. There is anger
too among those who see the Trinamool protests as counterproductive to the state’s
efforts to industrialise. Hundreds of IT workers and engineers marched in Kolkata,
covering their mouths with black cloth and holding placards that read “Yes
to Tata, No to Mamata”.
The Nano project has been billed as key to the rejuvenation of
industries in West Bengal, where the world’s longest-serving democratically
elected communist government has changed tack after decades of focus on helping
agriculture and poor farmers. But many farmers say they were forced off their
land and offered paltry compensation to make way for the factory.
3) SAIC Motor/MG and Roewe
Supply firms delighted as production resumes at Longbridge
Birmingham Post 3rd September, 2008
The resumption of car production at Longbridge has provided a major
boost to tooling companies like Makita. The Buckinghamshire business is supplying
a series of its tools to the MG production line for work on the revamped TF
roadster. Makita’s torque sensitive production tools are being used for
some of the sports car’s critical fittings such as seat mountings, where
the microprocessor controlled accuracy is vital to ensure build quality and
safety.
In addition, Makita production tools are being evaluated for trim
installation, under bonnet component fixing and chassis joints. Calibration
manager Jeff Ali is one of those assessing the new tooling applications. “Seat
mountings simply have to be spot on every time, tightened to the exact torque
setting and that’s where the accuracy of the Makita BFL400FZ helps us.
Fitting a black Torex fixing into a black runner on top of black carpet effectively
under a seat is not an easy job but has to be 100 per cent right. Unless the
tool hits the required torque setting the operator knows he must do it again
to receive the ‘job-complete’ indicator.”
“The LED ‘job complete’ indicator is a real bonus
in that dark application,” he added. He said the accuracy of the new tools
was proving vital in helping to improve the quality levels of the new car. The
MG production line is also using 9.6 volt angle screwdrivers which can deliver
pre-set torque for trim installations and 12volt pistol grip screwdrivers for
under bonnet mountings. The tools also have anti-tamper adjustment controls,
which prevents the line operators from accidentally altering the torque settings.
Any adjustment can only be carried out by the tool room specialists.
The highly accurate tools also have an in-built microprocessor
that constantly monitors the tool operation making certain that the set torque
is reached every time, monitoring battery power to produce enough torque to
complete the joint correctly. If there is insufficient power left in the battery
cell to do the job the tool is switched off to avoid joints being tightened
inadequately. “The accuracy of Makita production tools will ensure that
the build quality puts the MG at the top of the reliability tables for customer
value and enjoyment,” said a spokesman for the company.
4) China Watch
Costs Drive down Earnings at SAIC
Shanghai Daily 30th August, 2008
SAIC Motor Corp, China's biggest auto maker, said first-half profit
fell 28 percent on higher raw material costs and lower-than-expected demand.
Net income rose to 2 billion yuan (US$292 million), or 0.305 yuan a share, from
2.7 billion yuan, or 0.415 yuan a year earlier, the Shanghai-based auto maker
said in a statement to the city's stock exchange yesterday. Sales rose to 58
billion yuan from 51 billion yuan.
Higher prices for steel and other materials outweighed gains from
SAIC's vehicle sales. Profit growth at Chinese auto makers slowed to 30 percent
in the first half from 66 per cent a year earlier, as costs rose and car makers
slashed prices to win market share, according to the China Association of Automobile
Manufacturers.
"Rising inflation and fuel prices are undermining overall
car demand, and SAIC will face bigger challenges in the second half," Lu
Lei, an analyst at Great Wall Securities Co in Beijing, told Bloomberg News.
"Still, its venture with Volkswagen has turned the corner, and sales are
picking up." SAIC Motor's overall vehicle sales climbed 18 percent in the
first half to more than 990,000, the company said. China's industry-wide vehicle
sales rose 19 percent in the first half to 5.18 million, according to the association.
China sales growth at General Motors, which builds vehicles in
the country through ventures, including SAIC, rose 13 percent in the first half
as a lack of new models stymied demand. Volkswagen's sales gained 23 percent.
The German auto maker has ventures with SAIC and China FAW Group Corp, the country's
No. 2 car maker.
SAIC's sales of Roewe sedans rose 8 per cent in the first six months
to 8,244. The car maker also plans to resume full output of MG cars at a plant
in England by the end of the year.
China's year-on-year August car sales down
Automotive News Europe 8th September, 2008
China's passenger car sales fell in August from a year earlier,
the first monthly decline in more than two years as a slowing economy and the
Beijing Olympics kept would-be car buyers from showrooms. The world's second-largest
auto market sold 451,300 cars last month, down 6.24 percent from year ago, the
China Association of Automobile Manufacturers, the country's official industry
association, said on Monday.
A few more monthly declines may be in store this year as high fuel
prices and a falling stock market dent consumer demand, Rao Da, secretary-general
of the China Passenger Car Association, a leading industry group, said in a
research report. Rao also predicted an end to China's era of 20 percent-plus
annual growth in passenger cars sales, with 2008 growth falling sharply to 6
to 8 percent, followed by more moderate growth rates of 10 to 15 percent from
2009 to 2015.
China raised gasoline and diesel prices in late June by nearly
20 percent, the first rise in seven months and the steepest one-off hike ever.
That increase and expectations of more in the near future have delayed car purchases,
according to a recent online survey by J.D. Power and Internet portal Sina.com.
A slump in the stock market, where the benchmark Shanghai Composite Index has
plunged 65 percent from last October's record peak, has also weakened consumers'
buying power.
But Rao noted that the slowdown had simply brought the car market's
growth rate into line with the overall economy. "In the global auto industry,
10 to 15 percent annual sales growth is still very fast," he said. In the
first eight months of the year, 4.55 million sedans, sport utility vehicles
and multipurpose vehicles were sold in China, up 13 percent from a year earlier,
the country's official auto association said in its monthly report.
Joint ventures of Volkswagen and General Motors are the top three
car sellers in the country.
5) India Watch
Protests halt work on Nano car plant in east India
Automotive News Europe 29th August, 2008
Work at a plant in eastern India that will make the Nano, billed
as the world's cheapest car, stopped on Friday after thousands of employees
failed to turn up for work following protests by farmers, officials said. Tata
Motors, which is setting up the plant to launch the 100,000-rupees ($2300) car,
has faced violent protests and political opposition over the acquisition of
farmland in Singur, an hour's drive from the state capital Kolkata. More than
3600 employees were escorted by the police out of the Singur factory on Thursday
after political activists and farmers threatened to assault them if they returned,
officials said.
"Our workers are not working today," a spokesperson for
Tata Motors said. "We are assessing the situation as of now." Last
week, Tata Motors Chairman Ratan Tata said he was prepared to move the plant
from Singur if violence continued, despite having invested $350 million in the
project. Workers were being intimidated on their way to the factory, some officials
said.
Trouble began after the government took over 1000 acres of farmland
for the factory. The government offered compensation but some farmers refused
it, demanding that at least 400 acres of land be given back to them. The protests
reflect a larger standoff between industry in India and farmers unwilling to
part with land in a country where two-thirds of the billion-plus population
depend on agriculture.
Mamata Banerjee, leader of the opposition Trinamool Congress, which
is spearheading the protests, has threatened to carry out road blockades on
Friday to protest against the factory. West Bengal Chief Minister Buddhadeb
Bhattacharjee said he was ready for talks with farmers but could not return
400 acres of land, earmarked for ancillary units, as it would make the project
unviable. Tata Motors has since been flooded with offers from other states for
the Nano plant.
Shares in the company were trading 3.91 percent up at 434 rupees
in the Mumbai market.
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