Detroit Bureau on Twitter

Archive for the ‘China’ Category

Jaguar Land Rover Profits Cut By Falling Diesel Sales

Overall sales rose 1.7% with China leading the way.

by on May.24, 2018

Ralf Speth, Jaguar president, touted the company's full-year sales set a new record, driven by a 19% increase in China.

Jaguar Land Rover reported its annual pre-tax profits fell to 1.5 billion pounds, or $2 billion, from 1.6 billion pounds the year before, and fourth quarter profits during the January to March period was almost cut in half from 676 million pounds, or $905.3 million, to 364 million pounds.

The drop in profits during January to March period was affected by the higher charges in its vehicle development program and the drop in sales of diesel-powered vehicles. But the company said its annual pre-tax profit was boosted a 437-million-pound, or $585.2 million, credit from its pension scheme in the first quarter of the year.

Global News!

The automaker, which was re-organized 10 years ago after Ford Motor Co. sold it to Tata, the Indian industrial conglomerate, noted that “consumer uncertainty surrounding diesel models, Brexit and vehicle taxation” hurt sales in the United Kingdom.  (more…)

Bosch Exec Predicts 50 Percent Rise in 2018 EV Sales

Annual sales expected to rise from 1% to 1.5% of total sales.

by on May.23, 2018

The Chevy Bolt will be joined by two dozen other GM battery-electric vehicles by 2023.

Sales of battery electric vehicles are growing steadily and impressively, according to a key executive at Robert Bosch Gmbh, one of the world’s top automotive suppliers.

Sujit Jain, Bosch Group regional president, Passenger Cars and Electric Vehicles, Powertrain Solutions Division, noted the market share of battery electric vehicles has steadily grown in the U.S. since 2013, reaching nearly 1%.

EV News!

On the surface, the number appears small, but the rate of growth has been impressive with EV sales possibly reaching 1.5% this year, Jain said after a presentation at the Bosch Mobility Experience at the company’s North American test track in suburban Detroit. (more…)

China Cutting Tariffs on Imported Vehicles

But revised rate is still six times higher than what U.S. levies.

by on May.22, 2018

Chinese President Xi Jinping announced plans to cut tariffs on cars to 15% and components to 6%.

Under mounting trade pressure from the U.S., China said Tuesday that it will reduce duties on imported passenger vehicles from 25% to 15%, while also cutting the tariff on imported automotive parts and components to 6%.

Chinese President Ji Xinping had promised to cut tariffs in comments made last month, though it is unclear if the move will go far enough to satisfy critics as diverse as Tesla CEO Elon Musk and U.S. President Donald Trump. With the exception of pickup trucks, the American tariff on imported vehicles is just 2.5%.

Subscribe Now!

In a series of tweets last month, Trump referred to the automotive imbalance asked, “Does that sound like free or fair trade? No, it sounds like STUPID TRADE – going on for years!” (more…)

China Tariffs on Hold as Trade War Talk Recedes

Two countries putting a deal together.

by on May.21, 2018

The Trump administration is backing away from proposed tariffs on a variety items imported from China.

The announcement by the U.S. Secretary of the Treasury Steve Mnuchin that the Trump administration will suspend any plans to impose tariffs on Chinese imports lowers the risks for American and European carmakers, fearing the impact of a trade war.

Companies such as Mercedes-Benz and BMW, which export American-made vehicles to China, will apparently be spared, facing the substantial tariffs the Peoples Republic of China had proposed imposing on vehicles exported from the United States.

Financial News!

Importers of vehicles from China, such General Motors, also will be spared American tariffs on vehicles from Chinese factories. (more…)

Volvo Moving to Eliminate Plastic Waste

Automaker following UN guidelines on cutting plastics.

by on May.21, 2018

Stuart Templar, director for Sustainability, is leading Volvo's efforts to eliminate single-use plastics from its facilities and events.

In another step to secure its reputation as a green company, Volvo Cars plans to remove single-use plastics from all its offices, cafeterias and events across the globe by the end of 2019.

The company said decision reflects the company’s active support of the UN Environment Clean Seas campaign and underlines its ambition to minimize its global environmental footprint. Tons of plastic have been found in the world’s oceans and the plastic pollution is considered a significant threat to aquatic creatures.

News You Can Trust!

Volvo plans replace more than 20 million single-use plastic items such as cups, food containers and cutlery with more sustainable alternatives, including biodegradable products made of paper, pulp and wood. This equates to the removal of over 500 plastic items per employee per year. (more…)

In Final Move as FCA CEO, Marchionne Expected to Order Massive Shift in Product, Manufacturing Plans

Small Fiat models likely to be dropped, brand may leave U.S.

by on May.18, 2018

Could FCA pull the Fiat brand out of the U.S.?

As Fiat Chrysler Automobiles prepares for life beyond its founding chief executive, CEO Sergio Marchionne is expected to announce major shifts in the automaker’s product and manufacturing strategy, according to several reports.

During a June 1 meeting meant to reveal FCA’s next five-year plan, the 65-year-old executive reportedly will announce that the Fiat brand will abandon two of its base models, the Punto and Mito, while shifting emphasis to more up-market models. The automaker also will put more emphasis on its Jeep brand which, Marchionne said during the Detroit Auto Show earlier this year, could help Fiat Chrysler double its earnings during the next five years.

The Last Word!

One of the key questions hanging over the Euro-American automaker may not be resolved during a meeting bringing together analysts and journalists from around the world: who will replace Marchionne as CEO? He has dropped hints that his successor will come from FCA’s current top management ranks, which means no women or outsiders are in the running.

(more…)

Volvo Cutting Diesel Engines from Portfolio

Company plans to move to just gas and electric only.

by on May.18, 2018

The Volvo S60 will be the first sedan from the automaker that is offered without a diesel powerplant as an option.

Volvo Cars is implementing plans to stop offering diesel engines in its future vehicles.

The company announced this week the new Volvo S60 sedan – to be launched later this spring – will be the first Volvo to be produced without a diesel engine. The decision to eliminate a diesel engine on a model that will be sold worldwide highlights Volvo Cars’ “commitment to a long-term future beyond the traditional combustion engine,” the company said.

Product News!

“Our future is electric and we will no longer develop a new generation of diesel engines,” said Håkan Samuelsson, president and chief executive of Volvo Cars.  (more…)

BMW Opens New R&D Facility in Beijing

New center is the third in China.

by on May.17, 2018

BMW Group executives mark the opening of the company's new research and development center in Beijing.

The BMW Group opened a new research and development center in Beijing — its third R&D center in the country.

The opening of China R&D Center is a significant step in expanding local innovation and moving ahead with the group’s localization strategy of “In China, for China and the world” one step further, officials noted.

Product News!

China became the largest market for the BMW Group last year. With the establishment of R&D centers in Beijing, Shanghai and Shenyang, the Chinese R&D network is unique and by far the biggest presence of BMW research and development outside Germany. (more…)

Nissan’s Operating Profits Down for FY17, Favorable Tax Rates Raise Income

Company predicts vehicle sales will rise in 2018.

by on May.14, 2018

Nissan Chief Hiroto Saikawa reported the automaker's earnings for 2017.

Despite a tough environment for the first nine months of its fiscal year, Nissan Motor Co. Ltd rallied to post increases in revenue and net income for 2017 and sales increases in its top three markets: the U.S., China and Japan.

Nissan’s January-March profit was 168.8 billion yen, or $1.5 billion, down from 249 billion yen last year. Quarterly sales fell 0.9% to 3.4 trillion yen, or $31.3 billion.

Global News!

The automaker reported an operating profit of 574.8 billion yen, or $4.9 billion, on net revenues of 11.95 trillion yen, or $109 billion, equivalent to an operating margin of 4.8%. The operating profit was down from 2016 by 22.6% and margins fell 1.5%. (more…)

BMW Unleashes its Most Powerful M5 Ever

At 617 hp, M5 Competition will hit 60 in 3.1 seconds and 125 in 10.8.

by on May.14, 2018

The BMW M5 Competition is just a bit more powerful than the M5 at 617 hp, 17 more han the M5.

At 600 horsepower, you might think that the 2018 BMW M5 can make good claim to being “the ultimate driving machine.” But the Bavarian automaker apparently had second thoughts and has decided to amp things up a bit.

Come 2019, if you’ve got $110,995 in loose change you’ll be able to head down to your local BMW showroom and order up the 2019 M5 Competition model. At 617 horsepower, this beast has more than enough power to scare most competitors on the track, but it will be completely street legal – well, unless you try to push it anywhere near to the limits.

Product News!

Picking up on the theme we first saw with the M2 Competition, BMW has made some low-key exterior and interior enhancements, focusing most of its efforts on what you’ll find under the hood – and that not only means more ponies but a more distinctive – read: louder – exhaust note. (more…)