+++ FORD is overhauling its management and product planning to accelerate the arrival of new models (such as a Nissan Qashqai rival) and self-driving technology after the surprise departure of CEO Mark Fields. Jim Hackett, Fields’ replacement, joined the Ford management board 4 years ago. He is said to be refocusing the top management ‘Business Plan Review’ (BPR) meeting towards future product and strategy rather than weekly problem solving. Together with a senior management overhaul and a clearer focus on communicating technology developments, Hackett will try to arrest Ford’s 40 percent share price decline, which prompted the end of Fields’ 3-year reign as CEO, despite Ford forecasting profits this year of 9 billion dollar. “You have to look at the share price as the main driving force in this decision”, a source told. Fields is also said to have, in the eyes of the board, lost focus on the current business while attempting to turn Ford into a ‘mobility services’ company. The Hackett-led shakeup will put Ford of Europe president Jim Farley in charge of all selling activities as the new head of global markets. The president of Ford’s operations in the Americas, Joe Hinrichs, will take control of product development and manufacturing. Raj Nair will move from chief engineer to become president of Ford North America and Hau ThaiTang, who was chief engineer on the 2005 Mustang, will lead global product development and purchasing. Ford of Europe COO Steven Armstrong will take over Farley’s former position. Hackett’s move to overhaul its top management BPR meeting will change the focus of one of the major advances in the Fields/Alan Mulally era, which has been credited with pulling Ford’s departmental silos into a common direction. Significantly, it will free Ford’s top managers to concentrate on introducing self-driving technology, electrification and new revenue streams from mobility services alongside new model launches. Day-to-day operations, it is understood, will be handled by a secondary organisational set-up. There are no plans for Ford to follow General Motors and sell off its European arm because the division is now a valuable asset. After years in the doldrums, it has been making profits since 2015. It also engineers powertrains, platforms and models that are sold globally. “Selling Ford of Europe is not going to happen”, a source told. Ford’s product planning process will be freed to better identify global trends, like the emergence of the B-segment SUV and C-segment crossover. Under Fields and his predecessor, Mulally, Ford’s product planning was organised under the ‘One Ford’ banner to deliver individual models engineered to multiple global standards. Hackett said: “What One Ford doesn’t do as well is deal with a lot of complex strategies, with many elements”. Mainstream models such as the Fiesta and Focus thrived under the One Ford regime. Both are brilliant to drive and the Fiesta recently outsold the Volkswagen Golf as Europe’s number one. One Ford has also delivered compelling performance models such as the Focus RS, Mustang and GT. But to make production, models had to be viable in all key markets: North America, Europe and Asia Pacific. As a result, development of spin-off models like B-segment SUVs has been patchy. One view is that the complexity of global planning for One Ford models hampered decision making and encouraged ‘one size fits all’ vehicles. Product planning on a global basis has certainly led to some below-par models such as the Ecosport, engineered in Brazil, built in India and not up to European standards. The latest Ecosport is doing better and European sales were up 42 percent to 9.200 in the first quarter of 2017, according to market analysts JATO. But rivals from Peugeot, Renault and Opel each outsell it by up to 3 to 1. To better match European expectations, production of the Ecosport will be moved from India to Romania this autumn. The car will get a new interior and under-skin improvements. But the Ecosport has already been re-engineered 3 times in its 5-year lifespan. And with hindsight, the costs associated with that would have better been allocated to a higher-quality initial design. There is another element to moving Ecosport production. Adding its volume bails out the Craiova plant, whose B-Max compact is selling in a shrinking MPV market. It built only 40.000 units last year, despite being planned at over 100.000. Ford is also moving to add a new European-themed crossover, codenamed C430, which can finally provide it with rival to the market-leading Qashqai. But it won’t arrive until 2019; 13 years after the Nissan soft-roader’s debut. Hackett might reflect that, given the choice again, Ford might not have spent scarce resources on re-engineering the Fusion for Europe, where it sells in a shrinking segment. Hackett didn’t provide any detail on his plan to transition Ford to electrified powertrains, although finance director Bob Shanks confirmed that 4.5 billion dollar continues to be earmarked for new EVs and 1 billion dollar for autonomous vehicles, with a target of a Level 4 self-driving car by 2021. Ford’s main thrust on EVs is a 13-model line-up, including an SUV in 2020, possibly badged Model E, with a 500 kilometer range. Rivals are being readied for a similar launch date, so Ford’s product planning is looking on schedule in this cutting-edge technology. +++
+++ GENERAL MOTORS posts strong May salesnumbers in China. Last month was GM’s second-best May in China. General Motors and its affiliates posted 294,425 deliveries in China last month, marking the company’s second-best May performance on record in the world’s largest auto market. Buick remained GM’s most popular car brand in China last month with sales of 94,023 units. Buick’s new GL8 MPV proved extremely popular during the month with sales climbing 78 percent in May. The Envision SUV also saw strong numbers with 16,240 deliveries. Chevrolet posted 37,571 deliveries in May, thanks in large to its Malibu range, which saw a 36 percent increase compared to May 2016. Chevrolet’s all-new Equinox posted 4,000 deliveries during its first month on the market. Cadillac’s sales are still relatively modest in China (the brand delivered 14,154 units in May) but demand is growing for the premium marque. The XT5 was the brand’s best-selling vehicle with over 5,000 units delivered. The ATS-L sedan saw sales increase by 93 percent while the XTS jumped by 45 percent. The CT6 nearly doubled its sales tally from last year. Through the first 5 months of the year Cadillac’s sales are up 86 percent in China. Wuling was GM’s best-selling domestic brand in May with deliveries of 84,602. Baojun sold 64,075 vehicles in May. +++
+++ The 2018 HONDA Civic Type R has been detailed for the European market this week, giving an indication of what to expect when the Japanese hot hatch arrives in showrooms later this year. While we already knew the Civic Type R’s 2.0-litre four-cylinder turbo develops 320 hp and 400 Nm (the latter arriving between 2.500 and 4.500 rpm) the company has revealed this week the front-wheel drive performance hatch can sprint from 0-100km/h in 5.7 seconds. This is despite only being available with a 6-speed manual transmission and lacking the traction of all-wheel drive. Not only does the Type R complete the benchmark sprint in under 6.0 seconds, it also has a claimed top speed of 272 km/h, making it the quickest accelerating and fastest front-wheel drive hot hatch you can buy. It also holds the Nurburgring lap record for front-wheel drive vehicles, completing the circuit in 7 minutes and 43.8 seconds. Headlining features include adaptive dampers, 350 mm ventilated front brake discs with 305 mm solid rear units, 20-inch ‘Berlina’ alloy wheels shod with 245/30 R20 tyres filling the enlarged arches, “carbon-fibre effect” exterior highlights to the side skirts and rear diffuser, along with 3 driving modes: Comfort, Sport and +R; the latter tailored for track use. Inside, the driver and occupants are treated to “suede-effect” red and black fabric trim on the high-backed sports seats, a black and red leather steering wheel, carbon dashboard inlay, red pinstripe highlights, a machined alloy gear knob, along with the 7.0-inch TFT LCD driver’s display as seen in other Civic models, but with unique graphics and menus that change depending on the driver mode selected. The Civic Type R will also come as standard with the Honda Sensing driver assistance suite, which includes autonomous emergency braking (AEB), forward collision warning, lane departure warning, road departure mitigation, lane keeping assist, intelligent adaptive cruise control, traffic sign recognition, and intelligent speed assistance. There will also be a higher-spec Type R GT variant, which adds blind spot monitoring with rear cross traffic alert, dual-zone climate control, an auto-dimming rear-view mirror, Honda Connect infotainment with Garmin satellite navigation, wireless phone charging, a 542-Watt 12-speaker audio system, and LED front fog-lights. +++
+++ HYUNDAI and affiliate KIA are expected to heat up the small SUV market with the release of new models. Hyundai will release its new small SUV Kona this month while Kia plans to release the sub-compact crossover SUV, Stonic in the second half of this year. “The small SUV market is fast-growing with its market share growing by over 20 percent on-year”, a Hyundai spokesman said. Some 107,295 small SUVs were sold last year on its homemarket, up 24 percent from 86,233 in 2015. Ssangyong’s Tivoli led the market with 56,935 units sold, followed by Renault-Samsung’s QM3 (11,542 ; Renault Koleos), Chevrolet’s Trax (10,672; Opel Mokka X) and Kia’s hybrid Niro (8,710). Small SUVs are especially popular among young customers. Three out of 10 who bought the bestselling Tivoli last year were in their 30s. Renault Samsung Motors’ attempt to create a league of its own, offering “something different” to Korean customers will continue this year. The QM3, its crossover vehicle, which falls between an SUV and a sedan, will play a major role in this initiative. Renault Samsung, the Korean unit of French auto giant Renault Group, started selling the imported vehicle in Korea in 2013 which is known in Europe as Captur. At the time, there wasn’t a crossover vehicle in Korea’s automotive market. It was either an SUV or a sedan. QM3 was the only imported model that sold more than 20,000 vehicles in 2013. It sold an accumulated 60,000 until last year. “QM3 emphasized its fuel efficiency when it was first introduced in the Korean market but it has other versatile charms”, said Park Dong-hoon, CEO of Renault Samsung Motors at a press conference for female journalists. “QM3 is a trendy vehicle and I think it has many aspects that appeal to females which is why we organized such an event”, he added. A Korea JoongAng Daily reporter drove a 50 kilometer-route from Itaewon in Yongsan District, central Seoul, to Gapyeong in Gyeonggi. The diesel-powered vehicle boasts a fuel efficiency of 17.7 kilometers per litre, one of the best among its rivals. Its exterior design clearly shows its French origin. The color of the roof and body can be selected separately at the customer’s choice. Red, blue, orange and ivory are among the options for the customized color matches. “Adding an extra color to the option is a huge burden for the car manufacturer”, Park explained. “In Korea, white, silver and black dominate the vehicle colors which is why manufacturers keep making that color. Renault Samsung is veering away from the trend”, he added. Its interior is equipped with circular curves including the air vents, which give the car a soft and feminine vibe. The front drawer has the form of a large glovebox that is able to more stably store objects as large as a laptop. The driver and the passenger seat are spacious, with enough leg room even with the seats pulled forward to the maximum. The 6.5-inch display in the center console felt somewhat small and it was hard to look at the navigation while driving. However, SK Telecom’s T-Map installed as a basic option to its navigation system was convenient. For most import vehicles, the navigation system doesn’t have precise data on Korean roadmaps so the driver has to use a separate navigation app on a smartphone. The driving performance was average. In spite of it being a diesel model, the engine wasn’t too loud when driving below 100 kilometers an hour. The noise was still tolerable when it reached 120 km/h. However, when the car went faster than 120, it generated the usual loud diesel grumbling sound. The initial acceleration of the 90 hp car didn’t feel smooth or powerful. Even when the accelerator was pressed to the maximum, it took at least 2 seconds for the engine to generate enough power equivalent to the pressure applied to the accelerator. +++
+++ MERCEDES has been spotted testing an autonomous equipment-fitted E-Class on public roads in Germany, in preparation for more advanced autonomous systems, with a lidar sensor on the roof. A so-called Level 3 of autonomous driving is the next step following the launch of the brand’s updated S-Class luxury saloon which makes major headway with Level 2 autonomy, including being able to brake itself around bends and speed up again. The model can also steer itself for up to 30secs but requires that drivers have their hands on the wheel at all times. The brand’s models will offer hands-free driving for periods of time in the next three years, according to driver assistance systems boss Christoph von Hugo. Full autonomous driving is labelled Level 5 by the automotive industry. Von Hugo said: ”We have a headstart on our rivals with the S-Class. We are working hard, investing resource to keep our lead. The S-Class is a major step in highly automated driving. We are working towards the revolution of launching Level 3 cars. When we do launch it, by the beginning of the next decade, it will be capable of managing critical situations”. He added that he did not want to bring a Level 3 system on Mercedes cars which would require the customer to be attentive at all times. Referencing that the revised S-Class can’t always be relied on to understand variable speed limits, von Hugo said one “can not guarantee 100 percent reliability”. He added that at this stage, people enjoy the comfort and relaxation from the system but are still paying attention. He acknowledged that this would have to be improved for Level 3. “We should become close to 100 percent reliable for adhering to speed limits”. The next A-Class, due in 2018, is due to be the next model to receive the systems found in the S-Class, according to Britta Seeger, Mercedes sales boss. Von Hugo added: “We will not restrict safety tech to the luxury segment. We will not affect overall traffic safety if we just put these systems in a few cars”,
He said that while it made sense to launch the system on the S-Class as its flagship car, Mercedes “would not wait another 4 years (when the next S-Class is due) to bring the next evolution”. +++
+++ SOUTH KOREA ’s 5 carmakers said their combined sales fell 13 percent last month from a year earlier on weak overseas vehicle demand. The 5 automakers (Hyundai, Kia, Chevrolet, Renault Samsung and SsangYong) sold a total of 663,048 vehicles in May, down from 761,233 units a year earlier, according to data released by the companies. Their overseas sales plunged 14 percent to 527,605 units last month from the previous year’s 615,418 units. Domestic sales declined 7.1 percent to 135,443 from 145,815, the data showed. The carmakers’ poor performance in May was mainly due to a low-growth trend in emerging countries and, in particular, lower demand from China, the world’s biggest automobile market by sales volume, the companies said. Last month, Hyundai and Kia continued to suffer declines in sales in China amid an ongoing row between Seoul and Beijing over the deployment of the Terminal High Altitude Area Defense system. China has opposed the THAAD installation in South Korea as it claimed the battery system’s powerful X-band radar system could spy on its military. Seoul has maintained the anti-missile system is aimed at countering missile threats from North Korea. Sales by Hyundai and Kia fell 14 percent and 9.8 percent to 367,969 and 219,128 units last month, respectively, from a year earlier, the companies said. As the country’s two biggest carmakers expect slowing growth in advanced markets and uncertainties in emerging markets, they plan to launch models that are specific to the countries to boost sales. As part of efforts to increase SUV sales, Hyundai will launch the Kona subcompact SUV this month in the domestic market. The companies do not have any new, competitive SUV models to promote in the US market where SUV makers are benefiting from low gas prices and growing demand for this type of vehicles. The 3 other carmakers also struggled last month as they also had no new models to attract consumers. Chevrolet’s sales declined 17 percent from a year earlier to 43,085 autos last month. SsangYong’s fell 7.0 percent year-over-year to 12,349 vehicles. Renault Samsung’s were down 15 percent to 20,517 units, the companies said. In the January-May period, the 5 companies sold a combined 3.31 million autos, down 6.8 percent from 3.55 million units tallied a year earlier. Their domestic sales fell 1.7 percent year-on-year to 639,843 units and their overseas sales totaled 2.67 million, a 7.9 percent on-year decline, they said. +++
+++ The upcoming TESLA Model Y has been teased in a single image, offering a first glimpse of the company’s latest all-electric SUV. During the firm’s 2017 Annual Shareholder Meeting, the teaser was shown, with CEO Elon Musk reportedly saying Tesla has decided to build the electric crossover on a new platform, rather than on the architecture that will underpin the Model 3. Musk said the Model Y is scheduled to go into production in “late-2019 to 2020”, indicating the new medium SUV is at least 2 or 3 years away. The teaser image doesn’t give away much, though we can see that this version of the Model Y doesn’t have exterior mirrors; though it’s unclear what it will need to offer instead to meet design and safety regulations. If market trends are any indication, the Model Y will likely become even more popular than the Model 3, which has been projected to be the brand’s volume seller when it launches globally in the next 12-18 months, while the crossover’s battery architecture will do away with the current 12V standard in order to phase out lead-acid batteries. The move would also reduce the amount of wiring required, and simplify the production process (allowing for a different and more automated manufacturing line) with a new factory planned to accommodate the production of the new car, though ‘Gigafactory 1‘ will likely produce the Model Y’s battery packs. Tesla is hard at work with its product onslaught, with its electric semi-truck set to debut in September, while an electric ute is planned for reveal within the next “18 to 24 months”. +++
+++ The hotly anticipated TOYOTA Supra will have an automatic gearbox and BMW electronics. The two-seater model, which is twinned with the next BMW Z4, features BMW switchgear, including a dash-top infotainment system and accompanying rotary dial controller on the central tunnel, as well as BMW heating control buttons and a BMW automatic gearlever. The Supra is expected to share its automatic gearbox with the BMW, albeit with different ratios, while also incorporating the same hybrid four-wheel drive set-up, comprised of a BMW petrol engine mated to electric motors with energy stored in supercapacitors, which will have technical links to the ones used in Toyota’s TS030 Hybrid Le Mans car. Toyota has refrained from revealing any details about its new coupé. However, sources claim that the car’s use of a hybrid set-up means it will likely be offered exclusively with an automatic gearbox. Design influence for the model comes from the FT-1 concept of the 2014 Detroit motor show. The Supra will be built on the same platform as the upcoming Z4, which will use BMW’s carbonfibre architecture from its current i3, i8 and 7 Series. However, unlike the convertible Z4, the Supra will only be available as a coupé. Predicted to arrive in 2018, shortly after its Z4 counterpart, the new Supra is the long-awaited successor to Toyota’s discontinued coupé, production of which ended in 2002. The new Supra will sit above the GT86 in Toyota’s line-up, making it the Japanese brand’s flagship sports car. It will also be considerably more expensive than the GT86, due to the Supra’s advanced powertrain and construction. Toyota first demonstrated the performance potential of a hybrid model back in 2013 with the Yaris Hybrid-R concept car, which used a 420 hp set-up comprising a 1.6-litre four-cylinder petrol engine and an electric motor on each rear wheel. +++