+++ A new and advanced dynamic CYLINDER DEACTIVATION technology that can cut CO2 emissions in petrol engines by up to 15% will make production in 2018. Developed by parts supplier Delphi and automotive tech company Tula, the cylinder shut-off technology has the biggest effect in larger capacity engines like V8s, but is also claimed to trim CO2 emissions by 8% in smaller turbocharged four-cylinder engines, making them as efficient as their diesel counterparts. The dynamic skip fire cylinder (DSF) deactivation system works by deciding whether to fire or skip each cylinder before its firing. If a cylinder is skipped, the intake and exhaust valves are held closed by Delphi’s cylinder deactivation hardware. The system works by controlling the car’s spark ignition, so only petrol cars are compatible. It makes independent decisions up to 32,000 times a minute. Scott Bailey, president and CEO of Tula said: “Every time a cylinder is ready to be fired, the system makes a dynamic decision – do we fire this cylinder or do we drive this cylinder for torque reasons?” Bailey explained that this process takes place independently for each cylinder, so each one can be managed to maximise efficiency when not running at full throttle. “We don’t look at running fixed patterns like conventional cylinder deactivation systems, so we can run anywhere from zero cylinders to 100% of the available cylinders, with any firing density between them”, he added. John Kirwan, chief engineer of advanced R&D at Delphi Powertrain, said that the biggest savings can be made in larger capacity engines like V8s and V12s, but that the first models to use the system will have smaller turbocharged units. “We can’t say what model it’ll be fitted to first, but we can say that a large, global manufacturer will be the first to use it in a car from 2018”, he revealed. The system is being demonstrated on a Volkswagen Jetta with a 1.8-litre four-cylinder turbocharged engine. Later down the line, the 2 companies will showcase a 48v hybrid system combined with the dynamic skip fire tech; a CO2 and fuel consumption reduction of up to 20% is possible with the 2 technologies, Delphi claims. A wide range of engine sizes can accommodate the system, including three-cylinder engines, in which the system has also been tested. Torque demand from the driver, the effect of the cylinder on refinement and noise are among the decision criteria of whether to shut down a cylinder before firing. A Delphi spokesman said the system is aimed at making petrol engines as efficient as diesels, with high fuel economy and low CO2 emissions. This could, if the system enters the mainstream, eliminate one of diesel’s key selling points in certain driving scenarios. Delphi claims the system’s cost to a car manufacturer equates to about 40 euro for every 1% of CO2 saved per engine. “This compares to other forms of cylinder deactivation technology which are closer to 80 euro”, said Kirwan. The (DSF) technology will be presented in full at the Vienna Motor Symposium later this month, as an industry first: the first fully variable cylinder deactivation system. All four-cylinder engines are targeted, including downsized turbocharged units. The company also expressed the potential of the system to improve cars’ refinement; in cars with more cylinders, the shut-off system causes vibration when the cylinders are switched off; this new system, said the spokesman, doesn’t and is as refined as when all the cylinders are running. The system is also viable for use in hybrid cars, in addition to purely fossil-fuelled cars. In hybrids, the CO2 saving would be even greater, at up to 3% on top of the previous reduction, so in excess of 11% can be saved. Delphi claims that the system causes the engine to run at near-peak efficiency, and also allows an evolution of the current cylinder shut-off systems’ approaches to saving fuel while decelerating, shutting down all cylinders when the car is decelerating. +++
+++ FORD has suffered a difficult start to 2017, reporting a 35 per cent drop in profits during the first quarter. Across January, February and March, Ford earned $1.6 billion in profit, significantly less than the $2.4 billion it earned in the record-setting first quarter of 2016. The American automaker knew profits would suffer on the back of recalls and higher costs for warranties and materials. In fact, Ford told its investors that its first-quarter profit would fall to between 30 and 35 cents per share but ultimately, it landed at 39 cents per share, also exceeding expectations of Wall Street analysts. Speaking about the results, Ford chief financial officer Bob Shanks said that sales in North America and 2 other regions were higher in the last 4 weeks than had been anticipated. One of the biggest expenses for the Blue Oval in the first quarter was a $467 million increase in warranty costs on the back of $300 million being spent on 2 large recalls. According to president and chief executive Mark Fields, “This quarter was an investment in Ford’s future. From announcing exciting vehicles like the all-new Expedition and Lincoln Navigator, to initiatives such as our investment in Argo AI, we are fortifying our core business, while also investing in emerging opportunities that will deliver profitable growth”. +++
+++ GENERAL MOTORS reported a record first-quarter profit on robust sales of its large pickup trucks and crossovers in the United States, as uncertainty surrounds the overall pace of domestic auto sales for the industry. The results also underscore a shift where U.S. consumers are favoring larger SUVs, crossovers and trucks, instead of cars. The No. 1 U.S. automaker said it recorded the highest ever profit for a first quarter, including pre-bankruptcy which it emerged from in 2009. The stellar quarter bodes well for an industry that had disappointing sales in March. New vehicle sales hit a record of 17.55 million units in 2016, and analysts expect a slight sales decline in 2017. The results demonstrate that GM will “continue to strengthen the core business, generate the best possible return for our owners and then continue to execute with a huge sense of urgency on the transformative technologies that are really going to allow us to have a leadership position”, Chief Executive Officer Mary Barra told analysts on a conference call. U.S. sales of Chevrolet trucks and crossovers rose 3.5 percent and 12 percent, respectively, during the quarter, while GMC truck and crossover sales jumped almost 10 percent. Pretax margin profit was 8.2 percent, an improvement of 1.1 percentage points from a year earlier. U.S. sales of less profitable cars, however, fell compared to the first quarter of 2016. Fiat Chrysler Automobiles (FCA) reported a higher operating profit this week due to soaring SUV sales. No. 2 U.S. automaker Ford reported lower quarterly net profit due to higher commodity, engineering and recall costs, and a drop in vehicle sales. Ratings agencies have warned of worsening credit and there are concerns millions of nearly-new leased vehicles will flood the market, depressing used-car values and reducing U.S. automakers’ sales. Some analysts worry automakers are relying too much on consumer discounts to push sales. Chief Financial Officer Chuck Stevens said while consumer discounts have risen, so have average vehicle prices, which he said matters more. “Clearly it’s a more competitive market out there”, he said. “But that’s not a surprise given that the industry is plateauing”. GM said first-quarter vehicle sales rose slightly in Europe, where it has agreed to sell its European Opel and Vauxhall operations to France’s PSA Group. Sales dropped more than 6 percent in the company’s International Operations unit, which is dominated by China. Overall, almost all of the company’s pretax earnings came from the U.S. market. “We believe that pricing in North America, coupled with a deterioration in earnings in International Operations, will compromise earnings going forward”, Buckingham Research Group analyst Joseph Amaturo wrote in a client note. The company was hit last week when the Venezuelan government seized its plant in the industrial hub of Valencia. Stevens said GM would try to regain access to its assets via legal means. He said the automaker had not been operating normally in Venezuela for 12 to 18 months. “We don’t want to necessarily exit the country,” he said. “But certainly it’s not an environment you can invest in or run a normal business at this point”. GM also faces an ensuing proxy fight with Greenlight Capital. Billionaire investor David Einhorn, who runs the hedge fund, has proposed creating 2 classes of stock at GM, one that pays a dividend and one that does not, but would be tied to GM’s potential growth. GM has rejected the plan. Moody’s Investors Service and S&P Global Ratings say such a structure could hurt GM’s credit rating. Einhorn has nominated 3 directors to GM’s board. The company’s net profit rose 33 percent in the first quarter to $2.6 billion, or $1.70 per share, from $1.95 billion, or $1.24 per share, a year earlier. Analysts, on average, expected earnings per share of $1.48. The company forecast 2017 full-year adjusted earnings per share of $6 to $6.50. Analysts expect earnings of $5.95. +++
+++ KIA has announced that it will invest $1.1 billion into a new manufacturing plant in India’s Anantapur District. The facility will be Kia’s very first in India and construction is scheduled to commence in the final quarter of 2017 before vehicles start rolling out in the second half of 2019. The plant, occupying approximately 23 million square feet, will include all the necessary facilities for stamping, welding, painting and assembly and ultimately ramp up to build around 300,000 vehicles annually. Additionally, the plant will allow the South Korean brand to sell vehicles in India for the very first time as it looks to capture a share of the rapidly-expanding market. In announcing the plant, key executives from Kia Motors signed a memorandum of understanding with the State Government of Andhra Pradesh. In a statement, president of Kia Motors Han-Woo Park said “We are delighted to announce that Kia’s newest manufacturing facility will be here in Andhra Pradesh. It will enable us to sell cars in the world’s fifth largest market, while providing greater flexibility for our global business. Worldwide demand for Kia cars is growing and this is our latest step towards becoming a leading global car manufacturer”. +++
+++ According to a new report, the current LEXUS GS could effectively be replaced by a new-generation ES set to arrive next year. Lexus executives have decided to ditch the GS and update the ES to serve as its sole mid-size, premium sedan. The next ES will continue to be based around the cheaper front-wheel drive architecture of the Camry. By comparison, the GS has rear-wheel drive underpinnings. Although no official sources have confirmed or deny the reports, they do have some logic considering the similarities in size between the current GS and ES, making it plausible for the two to be brought together for a single new model. However, it is possible that Lexus may only be considering merging the ES and GS into one model in certain markets while retaining the two models elsewhere. In mid-March, Japanese reports insinuated that the current GS will be ditched as the new LS may step on its heels. +++
+++ MITSUBISHI and Nissan are studying joint production of so-called multi-purpose ‘people mover’ vehicles at a new manufacturing facility Mitsubishi officially opened on Tuesday. Trevor Mann, Mitsubishi Motors’ chief operating officer, told that Nissan is now exploring the possibility of using a new Mitsubishi multi-purpose vehicle, whose production is due to start later this year at the new plant near Jakarta, to “make a derivative … for Nissan”. The Bekasi plant has been designed and built to have capacity to produce 160,000 vehicles a year. Mitsubishi plans to use the factory to export some models to other markets in the region such as Thailand, Malaysia and the Philippines, Mann said. A full merger of Mitsubishi and Nissan is not on the table, Carlos Ghosn, chairman of both firms, said. “Full merger is not on the table. We want Mitsubishi to reform itself”, said Ghosn, who was attending the opening ceremony of a new Mitsubishi factory on the outskirts of Jakarta. He also said it was likely for Mitsubishi and Nissan to cross-manufacture in areas where it makes sense. Last year, Nissan bought a controlling stake in Mitsubishi for $2.3 billion after the smaller automaker admitted to cheating on mileage tests. Mitsubishi and Nissan were studying joint production of pickup trucks in Southeast Asia as they looked for savings within the broader Renault-Nissan alliance, Mitsubishi’s chief operating officer told Reuters in March. Ghosn is also chairman of Renault. Meanwhile, Mitsubishi Chief Executive Officer Osamu Masuko said he estimated Mitsubishi would have a 10 percent share of Indonesia’s car market in 3 years, from 6 percent at present. This year, he said he expected a nearly 40 percent sales increase in Indonesia, helped by sales of multi-purpose vehicles. Indonesia overtook Thailand as Southeast Asia’s largest car market in recent years and is also growing as a regional production base. Nearly 1.1 million vehicles were sold in the country of 250 million people last year, according to the Association of Indonesia Automotive Industries (Gaikindo). Toyota has long dominated the Indonesian market, partly due to its extensive distribution network. Toyota has a long-standing partnership with the country’s largest distributor, PT Astra International. +++
+++ The SKODA Karoq will launch this May with an all-new exterior design, advanced driver assistance technology and 4 new turbocharged engines. Ditching the unique exterior shape of its predecessor, the Yeti, for a more conventional SUV body, the Karoq shares many features with the larger Kodiaq, which it sits below in Skoda’s line-up. Despite filling its space in the range, Skoda interior designer Arne Leetz explained that the Karoq isn’t a replacement for the Yeti but rather an all new car. “The Yeti will remain a legend” he said. The Karoq’s name is a combination of ‘kaa’raq’ (car) and ‘ruq’ (arrow) in the language of Alaska’s indigenous people, linking it with the Kodiaq, which also gets its name from the same region. It arrives as Skoda plans to shift its brand identity into a new realm. “We want the brand to be classless”, explained technical development boss Christian Strube. “Take the place of Volvo which has now moved upmarket. 30 years ago my father owned a Volvo because it was the understated option”. Skoda is marketing the Karoq as a small yet practical family SUV, to set it apart from the sportier Seat Ateca and pricier Volkswagen Tiguan, with which it shares parts. “All passengers have equal rights”, said Karl Neuhold, the car’s exterior design chief. The Karoq has space for 4 passengers and has a boot capacity of 521 litres or 1.630 litres with the back seats folded down. This comfortably beats the car’s main rival, the Nissan Qashqai, which offers 430 and 1.585 litres respectively. Built on the Volkswagen Group’s MQB platform, the Karoq comes with a choice of 5 turbocharged engines, 4 of which are new to Skoda. The new petrol engines are an entry-level 1.0-litre TSI three-cylinder with 115 hp and 175 Nm and a 1.5-litre TSI with 150 hp and 250 Nm, with the latter enabling an 8.4 seconds 0-100 km/h time and featuring active cylinder technology. There’s a new diesel 1.6-litre TDI that produces 115 hp and 250 Nm while emitting just 118 gram/km of CO2, and a new 2.0-litre TDI that outputs 190 hp and 400 Nm, enabling a 7.8 seconds 0-100 km/h time; the quickest available. These new Skoda units are joined by a 2.0-litre TDI that’s familiar to the brand, which produces 150 hp and is the most fuel-efficient engine, offering 115 gram/km CO2. The Karoq comes in two and four-wheel drive guises and with a choice of a 6-speed manual of 7-speed DSG automatic gearbox. In higher-spec it comes with Skoda’s Drive Mode Select system, which enables the car’s drivetrain to be switched through Normal, Sport, Eco, Individual and Snow. A hot vRS version looks on course to join the range at a later stage, possibly making use of Skoda’s 230 hp turbocharged 2.0-litre engine that’s used in the Octavia vRS. Leetz hinted at the model’s arrival. He said “It is imaginable. Just take our smile as an answer”. Driver assist systems include a radar-based adaptive cruise control, blind spot detect and front assist, which includes automatic city braking with a pedestrian braking system. There’s also hill hold control to prevent roll back and emergency assistance, which can intervene if the driver becomes incapable of driving and adaptive cruise control and lane assist are on. In-car, technology includes gesture control for certain functions, wireless phone charging, as well as a mobile online connection that works with the infotainment. In top spec, the infotainment has a screen of up to 9.2 inch and 3 other displays, including a new digital instrument cluster that makes its debut in a Skoda. Skoda is yet to confirm pricing, but the Karoq’s expected to follow the brand’s aggressive pricing strategy and undercut the Nissan Qashqai, and therefore stick closely to the Yeti’s starting price. The Kodiaq is cheaper than its main rival, the Nissan X-Trail. A smaller SUV will be launched to sit below the Karoq at a later stage. It will be “different to the VW T-Roc – smaller”, said Strube, “and designed primarily for the Chinese market, for younger drivers buying their first car”. Strube wouldn’t comment on whether the smaller model would be based on the Seat Arona’s platform, but he did reveal that it would get “a name in line with Kodiaq and Karoq”. +++
+++ VOLKSWAGEN said it plans to invest billions of euros through 2022 to beef up its portfolio of combustion and electric drives as it braces for a further tightening of emissions rules in key markets. Europe’s biggest carmaker last year announced a multi-billion-euro shift to embrace electric cars and new mobility services as it battles to overcome its diesel emissions scandal, and the German group is cutting costs in all areas of operations to fund this transformation. Volkswagen (VW) will spend about 10 billion euros over the next 5 years to raise the fuel efficiency of combustion engines by 10 to 15 percent in anticipation of stricter emissions standards in Europe, the United States and China, Chief Executive Matthias Müller said. VW will also triple its investment in electric drives to about 9 billion euros over the same period, including a new generation of full hybrids for the U.S., where its emissions scandal broke in 2015. It has spent 3 billion euros on zero-emissions technology in the past 5 years. “Even though modern combustion engines will be relevant for at least another 20 years, it is clear that the future will be ruled by electric drives”, Müller said, citing a need to respond to “epochal changes” in industry. “What’s at stake is to develop a future-proof drives portfolio as a basis for transforming the core autos business”, Müller told an auto industry conference in Vienna. VW’s emissions scandal has cast a shadow over the entire market for diesel cars and has ramped up pressure on automakers to improve combustion engines while rushing into electric cars and hybrids, stretching development budgets. To rein in costs, Müller said VW will reduce the variety of engine types for mass-market models by as much as 40 percent through 2020, without giving details. +++