Business News » automotive

VW will become the largest automotive manufacturer in 2012

viliyana89 — Sun, 23 Oct 2011 17:17:06 +0000

Volkswagen will become the largest automaker in the world this year – seven years earlier than planned by management objectives. The German concert will claim first place in sales and production, since statistics showed tremendous growth throughout the world because of the problems of Toyota after the devastating earthquake in Japan. If you take the championship of the Japanese automaker, that would be a remarkable achievement for a German company that five years ago was almost written off due to high labor costs and infighting of Governors.
When in 2008 Martin Winterkorn,the CEO of VW, its aim, the company he managed to overtake Toyota by 2018, nobody took him seriously. Then the Germans sold 3 million cars less than Japanese competitors. According to Winterkorn during the first half of this year the Group sold a record 4 million cars. He predicts that by year-end sales can go up to 8 million cars. VW has managed to become a best-selling automaker in China – the largest car market in the world. In addition, this year the company managed to increase sales of difficulties European market by 8%. VW built the most successful platform for “sharing” of the various brands under the umbrella of the company, including Skoda, Seat, Audi and Bentley.
The expectations for leadership positions in VW is supported by several consulting firms – IHS Automotive, JD Power, PwC Autofacts.

Volkswagen with top level of sales

viliyana89 — Thu, 14 Jul 2011 09:02:01 +0000

The largest carmaker Volkswagen in Europe has made significant growth in supply in the first half of 2011, selling over 2.5 million sales for this period worldwide. To customers reached 2.53 million vehicles (compared to January-June 2010 – 2.26 million, 11.8% growth), only for June production was increased sales of 438,500 vehicles (+ 9.8%). According to the CEO Martin Winterkorn concern of the company is on track to meet its target for annual sales of more than 8 million cars.
“The positive trend for the Volkswagen passenger car division for the first half was very encouraging. It would be a huge success if we can keep this position over the next six months, “said Klingler and Christian, a member of the board of directors and head of” Marketing and sales “of the Volkswagen Group and Volkswagen cars. Volkswagen has enjoyed remarkable growth and in Central and Eastern Europe, where sales increased by 42.2%. The company has doubled its sales in Russia with goals 103%. Native German market Volkswagen also noted, although a small increase to 301,700 vehicles (287,400 or 4.9% over the same period of 2010). Meanwhile, the European Commission decided to initiate an investigation of the aid promised by the German Government to car companies BMW and Volkswagen for projects in the former East German provinces, writes Handelsblatt.
Basically means possible as it helps economically depressed region, but financing such large amounts should be whether public support will not affect the company’s market share and harm competitors, said the committee itself. The German authorities plan to grant 46 million project for 368 million EUR for the production of electric and hybrid cars in the BMW plant in Leipzig. The commission indicated that he understood “the significance of the project in terms of environmental and energy policy,” but stressed that still needs “to assess its compliance with EU rules on large investment projects”.
The German authorities plan to relax and 83.7 million on an investment project for 700 million of Volkswagen, aims to modernize the plant in the city of Zwickau. The Commission noted that “doubts” in the classification of state aid made by the German authorities. The plant in the Saxon town of Zwickau, where he has previously produced iconic Trabant, now produces models Golf and Passat, and chassis for the Phaeton luxury models and the Bentley Continental.

Toyota predicted strong decrease of the profits

viliyana89 — Fri, 10 Jun 2011 09:40:36 +0000

The Japanese auto giant Toyota said it expected profits for this financial year to be much lower than previous, mainly because of the strong earthquake in the country in March, which disrupt the proceedings. The forecast for net profit of 280 billion yen (3.5 billion dollars) for the year which will end in March 2012, which is one third less than 408-billion yen last year. The company indicated that revenues will decrease slightly to 8.2 trillion yen. Earlier, Toyota announced that this month it hopes to restore its production capacity in Japan to 90%. The profit in the first half of the financial year will be particularly hard hit, according to Toyota. Subsequently, the business is expected to recover, although the effects of the earthquake and subsequent tsunami will be felt for a long time considered by the company.
“The Japanese economy is expected to recover gradually. However, the damage caused by earthquake in eastern Japan are serious and comprehensive and will continue to affect the Japanese economy”, added there. By Toyota are confident that emerging markets will continue to grow, especially China and India, while developed economies like U.S. and Europe will continue to grow moderately.
However, the company points out that rising oil prices and high unemployment, especially in the U.S., are key risks to future sales. This year Toyota expects to sell 724,000 cars, 292,000 will be sold during the first 6 months. The earthquake hit and the state of automaker last financial year, profit from January to March fell by 77% to 25.5 billion yen in the comparable period in 2010

Chrysler repaid the billion USD aid USA and Canada

viliyana89 — Wed, 25 May 2011 08:05:44 +0000

As announced earlier, the U.S. automotive concern Chrysler back state aid amounting to 7,6 billion dollars. U.S. budget received 5.9 billion dollars, and Canadian – 1,7 billion dollars, said the headquarters of Chrysler in Oabarn Hills. Thus pave the way for and majority ownership of Fiat in the concert. However, the Italians said it increased its share from the current 30% to 46%. By the end of the year as scheduled, Fiat will acquire 51% and thus will become the majority owner of Chrysler. According to chief executive officer of Fiat Sergio Marchione this share may reach 70%. According to the Italian concern due to the repayment of government loan Chrysler will save $ 300 million annual interest. In late 2008, the American corporation received its first emergency aid of $ 4 billion, which allowed him to survive several months. Then followed several financial injections. The return of rescue loans to the two governments is the last still not fulfilled, which the Italians put on their American partners to take majority company. Chrysler rest were to begin assembling fuel-efficient engines in its factory in Dundee (Michigan), to sell cars outside the U.S. for 1.5 billion dollars and create a compact model based on the car of Fiat, which has a fuel consumption up to 5 , 9 l/100 km.
“Less than two years promise to bring U.S. and Canadian taxpayers anything, today delivered on that,” said Sergio Marchione said a press release from the company. Marchione, who actually manages and Chrysler, thanks to extremely “rare second chance” that automobile is obtained thanks to state aid. The U.S. President Marriage Obama described the step as a “cornerstone” for Chrysler and countless American families that depend on this “cult brand”. The U.S. government has provided billions in aid program to buy troubled assets (TARP), to save the sinking businesses, Obama recalled. A closer link with Fiat makes Chrysler more attractive to investors and banks. The IPO could be done more this year or next year.

Ford will close 3 factories because of the earthquake in Japan

viliyana89 — Tue, 26 Apr 2011 10:26:41 +0000

Almost two months after the devastating earthquake in Japan consequences can be felt worldwide. Because of missing parts to be shipped from Japanese suppliers, the U.S. automotive concern Ford will close three of its factories. Тхе вork will be phased out in South African city of Pretoria in East Nantszin in Taiwan.
“According to preliminary plans, these factories had to suspend production later this year for one week, but closure is drawn to earlier, company spokesman Todd Nissen, quoted by Financial Times. All the three affected plants are managed by Ford with Mazda. The worst of the situation in his country is concerned, however, Toyota. And recent marketing results prove that – in March, the month of the earthquake and subsequent tsunami, production in Japan declined by 62.7 percent (just over 129 thousand cars) over the same month a year earlier, said the concern. Production worldwide is even decreased by 19.9 percent to 542,465 vehicles.

The sports cars division of Saab will be sold to Russian investor

viliyana89 — Thu, 24 Feb 2011 18:09:44 +0000

The Dutch carmaker Spyker, owner of Saab, has signed a preliminary agreement to sell its sports division cars CPP Global Holdings for nearly 32 million EUR. The CPP Global Holdings is owned by Russian businessman Vladimir Antonov and is based in the UK, which already produces the sports model of the C8 Aileron Spyker.
“The company management has many exciting plans for Spyker, the brand is entering a period of great development, said in Bredan O’Toole, managing director of CPP.
From Spyker Cars have indicated that the company name can be changed at the conclusion of final agreement. By the Dutch group said that so we can focus exclusively on the business of Saab, reducing debt and improving its operating results. Really the price is good and the bankrupted company was saved from the Spyker cars ans year ago and need of strong management to make the financial situation more stable. The company realized good financial reports in the last quarters, but the sports cars division is not in the plans for developing of Saab management.

Ford will invest 450 million USD for new factory in Thailand

viliyana89 — Thu, 24 Jun 2010 11:47:56 +0000

The motor company Ford Motor Co plans to invest 450 million dollars in building a production base in Thailand, Reuters reported. The main part of the production of the new plant will be exported, which is part of the company’s expansion in Asia-Pacific region. The factory in the eastern province of Rayong will produce Ford Focus cars from 2012, but will set a future opportunity to diversify production, reported by the company. “This investment underlines our long-term commitment to Thailand and its role as a global manufacturing and export center for Ford”, commented Joe Hinrih, president of the company’s Asia-Pacific, and Africa. The factory with an area 750 thousand square meters will have an initial capacity of 150 thousand units per year and 85% of production will be destined for markets outside Thailand. Ford plans to buy locally produced components totaling up to 800 million dollars a year and the plant has the potential to provide up to 11 thousand new jobs, the company indicated.
The company is investing in developing the business in Asia, because of low cost working-hand and materials.

Honda increased wages in China

viliyana89 — Tue, 01 Jun 2010 17:00:54 +0000

The Japanese car manufacturer Honda announced on Tuesday that the proposed increase of 24% of wages for factory workers in the company’s spare parts in China. The offer comes after the ongoing strike at the factory, which blocked the production of the group in the country. Honda is ready to increase by 366 yuan (44 million) the average wages of workers in its factory in Foshan, which monthly salary will reach 1,910 yuan (228 million). Following the proposal work in the factory was partially restored, reports the manufacturer. According to the company the majority of workers have accepted the proposal, pending further negotiations with those who are unhappy. To serve as a mediator in the talks representatives of local authorities, designated by Honda. However, their task is difficult as those who still protest appear determined not to allow recovery of production and seek to prevent his colleagues to return to work. “We’re not satisfied. We want an increase of 800 yuan (95 million), “said one of the strikers.
Last year Honda sold in China is 576,223 cars, up 23 percent over the previous 12-month period.

KIA opened a factory for 1 billion USD

viliyana89 — Tue, 02 Mar 2010 09:35:36 +0000

The officials of the Korean brand, officials and honored guests gathered in the Georgia state official opening ceremony of the first production base of the brand in West Point, Georgia with a capacity of 300 000 vehicles a year for distribution in North America and global markets. 500 guests visited the celebration, including the president of automotive concern Hyundai-Kia, Mongo-Kuu Chung, CEO of Kia Motors America, Biang Mo-Ann, the governor of Georgia, Sonny Perdyu and other officials. ‘We welcome the new home of Kia in West Point, Georgia,’ said Mr Ahn. ‘Hard work the whole team has helped the brand to make it the fastest growing automotive brand in the world. After presenting an entirely new Sorrento and the founding of the first production base in the United States, Kia is ready for further growth with the ultimate goal – a world leader in cars with high quality and innovative fresh approach. ” With an investment of $ 1 billion in size and 204 000 square meters of brand new factory occupies an area of 2 200 acres. Classifying are 4 main workshops for stamping, welding, painting and assembly. The new facility includes workshops for gear boxes, modules, and test and tape production line to a length of 3.2 kilometers. The main room for installation of car is equipped with conveyors for precise height adjustment for the convenience of the service teams and a maximum reduction of heavy physical labor. KMMG is the only plant in North America, whose floor is made of wood for a more favorable working environment.
Implemented in the base technologies imply higher productivity and efficiency of business processes. Printing press delivers 5 400 тона pressure, fully automated welding workshop is equipped C 242 machines in a room used green technologies. KMMG has rail lines between rooms to facilitate transportation. Impressive manufacturing base and suppliers of the manufacturing company has secured more than a thousand jobs for the local population. We work in KMMG 1200 employees as their number is planned to double by the end of this year. Mass production of entirely new Kia Sorento was launched on 16 November 2009. model is the official distributor in the United States since January this year. With only realized for the first month of this year – 7 398 number in the SUV segment representative has become a bestseller of the brand.
‘Successful delivery of the first model constructed at West Point, Georgia is a good achievement for KMMG, KMA and Kia as a brand, “said Mr. Ahn.” We are trying to increase production of the Kia model range, while retaining the main advantages of the mark: cost ratio -quality, security and new technologies. KMMG will play a significant role in achieving our goals. ” Despite the economic downturn and the global recession, sales of Kia in America increased by 9.8 percent over the previous year to reach 300 063 units. Kia plans to achieve 347 thousand units in 2010., An increase of 15.6%.

Is the public support for the automotive industry a mistake?

viliyana89 — Sat, 20 Feb 2010 08:27:44 +0000

The termination of government programs to help Europe’s car industry this year represent a rude awakening for car manufacturers, writes EUbusiness. This will be one of the main issues to be discussed by EU industry ministers during their meeting tomorrow (19.02.10). And while sales of new cars in Europe grew by 13 percent in January on an annual basis, the data from the largest European economies – Germany, showed completely different picture. In Germany this year expects sales of 2,75 to 3 million cars, while in 2009 reported sales were 3.8 million cars. After termination of the state program to help car sales in the country in January, the decline in automobile sales market Germany is 4.3 percent – a clear warning to the neighbors of Germany. In Italy, a growth of 30%, but there now expire on state support. This prompted the executive director of Fiat Sergio Marchionne to predict a decline in annual sales in Italy of 350 thousand cars. In Britain, public support for the sector was extended until the end of March, but expectations are for a decline in sales of 9% this year.
According to Carlos Da Silva, an analyst at HIS Global Insight, new car sales in Europe in 2010 will decrease by 11%. The main impact will come from unemployment, which decreased demand. A concern, especially at national level is felt when subjected to pressure France and Renault did not want to allow the relocation of the company outside France. Precisely for this trend of deterioration in the economic development will have to find a decision by European ministers of industry. For the last quarter in Germany was reported growth in the euro area it is only 0.1%. This year is waiting for growth of 1%.