+++ ASTON MARTIN has kicked off its engine partnership with Mercedes-AMG with a new entry-level variant of the DB11. The British brand has announced details of the V8-powered DB11 ahead of its official unveiling at this weekend’s Goodwood Festival of Speed in England. It will be the first time a DB-series vehicle has been offered with a choice of engines, with the V8 model selling alongside the flagship that is powered by the company’s own new-generation 5.2-litre twin-turbo V12. It’s the same 4.0-litre twin turbo V8 used extensively across the Mercedes-AMG range, but has been recalibrated exclusively for the DB11 with a new engine management system and software designed to ensure it has a level of character and performance befitting the grand touring nature of the two-plus-two seater coupe. The end result is that the engine produces the same 510 hp as it does in vehicles such as the AMG C63 S and GT but slightly less torque, with a maximum pulling power of 675 Nm, compared to its peak figure of 850 Nm in the E63 S sedan. While it sits comfortably underneath the 608 hp / 700 Nm outputs offered by the V12, the DB11 V8 is only marginally slower with the ability to accelerate from 0-100 km/h in 4.0 seconds and on to a top speed of 300 km/h; 0.1 seconds and 22 km/h down on the V12. It is, however, significantly more efficient with a claimed fuel consumption figure of 8.2 liter / 100 km compared to 11.4 liter / 100 km for the V12 and weighs 115 kg less. The V8’s smaller overall dimensions, and dry-sump lubrication system, means it can be fitted lower in the DB11’s engine bay for improved handling. To that end, it also features unique engine mounts and revised suspension settings to compensate, which Aston claims gives the V8 model a more sporting character. There are some minor visual tweaks that identify it as well, including unique alloy wheel designs, black bezels in the headlights and a pair (rather than four) bonnet vents that come in a choice of black or titanium. “The DB11 is the most complete and sophisticated car Aston Martin has ever made”, said Aston Martin boss, Andy Palmer. “Now, with this new V8 engine option we have broadened its appeal by offering a car that will bring the DB11 to more customers around the world while still blessed with the exceptional performance and memorable character that sets Aston Martin apart from its rivals. Having driven the car during its development phase, it is not just the engine that has changed the character of the car, but also the resulting dynamic changes to create a remarkable GT car with its own distinct personality from the V12”. Full local details for the Aston Martin DB11 V8 will be released closer to its arrival in showrooms early next year. Autointernationaal.nl expects a Dutch starting price of about 225.000 euro; a 47.000 euro saving over the V12. The AMG-developed 4.0-litre V8 is expected to be used by a host of Aston Martin’s future models, including the next-generation Vantage two-seater due out early next year as well as the DBX SUV it is currently developing ahead of its debut in 2018. +++
+++ German automotive giant Continental is bucking the general perception that DIESEL powered cars’ days are numbered and declares that “diesel has a future”. That bold statement comes on the back off Continental unveiling a new technology called Super Clean Electrified Diesel, which the company claims can reduce NOX emissions by 60 percent. The German tech and tyre company showcased the technology to assembled media at its Continental tech Show 2017 in Hannover, Germany. “The diesel engine will continue to play an important role in meeting mobility needs for the foreseeable future”, said José Avila, President of the Powertrain Division and member of the Executive Board of Continental, “so it is vital for us to develop the technology to support extremely low-pollutant diesel operation”. In order to meet ever more stringent emissions standards in Europe, Continental’s engineers started by replacing a car’s standard injection system with its own Continental PCRs5 piezo common-rail injection system. Working under extreme pressure of 2.500 bar and in conjunction with highly dynamic valve timing, the system performs multiple and very closely spaced metered injections of fuel per cycle. This allows for only the minutest amount of fuel to be injected into the cylinder after combustion and this fuel is only ignited after it reaches the catalyst, thus rapidly accelerating the vital catalyst warm-up function. This is crucial to reducing emissions as the SCR catalyst has to reach a minimum operating temperature before it can start converting nitrous oxide emissions. Continental’s testing has shown this simple measure has reduced the warm-up time by around eight minutes which equates to a reduction in NOX emissions of around 37 percent. However, the system does not work in isolation, and in fact, if used in isolation it would see an increase of fuel consumption of around 4 percent. To combat this, Continental has also developed a world-first 48 volt mild hybrid system. Based on a belt-driven starter/alternator, the mild hybrid not only recuperates energy from braking (which is stored in in a small lithium-ion battery) but then uses that stored energy to help the car under acceleration. This is typically, when NOX emissions are at their peak in a conventional diesel. The combined effect of the 48 volt mild hybrid system is a further reduction in NOX emissions of around 3 percent while CO2 emissions are also reduced by 3 percent. A further 14 percent reduction in NOX emissions is achieved via an electrically heated catalyst, dubbed EMICAT. The heated catalyst serves to quickly heat the SCR catalyst to optimal operating temperature, allowing the system to start converting nitrogen oxide sooner than in a conventional system. The power needed to heat the EMICAT is sourced exclusively from the stored energy harnessed by the 48 volt mild hybrid system. Finally, Continental’s connected Energy Management (cEM) system helps the car operate at optimum efficiency by sending at receiving live data about traffic conditions. “The beauty of ‘connected Energy Management’ is, that we can implement a more energy-efficient driving strategy simply by using an improved database”, said Oliver Maiwald, Head of Technology & Innovation with Continental’s Powertrain Division. “When the cEM control unit is aware of the upcoming route (thanks to the navigation system or learning algorithms), it can decide in advance when the vehicle should coast and when it is best for it to recuperate braking energy, thereby saving fuel and emissions”. The cEM also features a Traffic Light Assists (TLA) function which can predict when the next traffic light, whether visible to the driver or not, will be red. The cEM then uses this information to improve coasting, energy recuperation and braking management. In total, Continental’s Super Clean Electrified Diesel system reduces NOX by 60 percent while also achieving a four per cent reduction in fuel consumption. “In other words we have resolved a classic conflict of objectives in diesel engine development”, said Avila, “showing that a clean diesel engine with emissions well within the legal limits doesn’t have to consume more fuel”. I spent some time behind the wheel of Continental’s test vehicle at the company’s Contidrom proving ground just outside Hannover. The vehicle, somewhat ironically, a Volkswagen Golf, was fitted with all the systems outlined above as well as real-world emissions measuring system and it did indeed return NOX figures well below the current Euro6 Diesel standard, prompting engineer Johannes Dreschel to boldly declare: “Continental believes in the diesel and we say ‘the diesel is not dead’ ”. +++
+++ FORD Credit and GENERAL MOTORS Financial, the lending arms of their respective auto makers, are both laboring under falling vehicle values and elevated loan losses, but Ford Credit is healthier than its rival, Moody’s said. Ford Credit’s long tenure as Ford’s captive finance company leads to greater portfolio stability than General Motors Financial, which is still ramping up its captive finance operations for General Motors from its legacy subprime platform, the credit-ratings agency said in a report. Captive finance firms are subsidiaries meant to provide financing to customers buying the parent company’s products. Both Ford Credit and GMF have below-average profitability compared with their historical performance, as shown in the following chart. That’s due to elevated losses in recent periods and declining vehicle values. The multi-year reduction in GMF’s profitability also reflects the transition of its portfolio to captive finance operations for General Motors, Moody’s said. GMF’s launch of a prime asset-backed securities shelf in the first quarter is a significant step in its transition to a full captive, Moody’s said. GMF has managed its transition to captive finance without noteworthy disruptions to its performance. Nonetheless, its portfolio will experience more changes because of the disposition of its European operations, increased prime (higher credit-rated) loan originations and an elevated lease exposure, Moody’s said. In addition, GMF’s interest expense is increasing slightly more than Ford Credit’s as it prepares for more growth and increases its higher cost unsecured funding, which should also increase its supply of unencumbered assets, a credit-positive, Moody’s said. GMF has higher lease exposure, a credit-negative. GMF’s operating leases were 44 percent of total loans and leases as of the end of March, though growth of leases has slowed from prior periods. Ford Credit’s operating leases were 20 percent of total loans and leases as of the same date, below the industry average and a credit-positive. GMF’s charge-offs are significantly higher owing to its larger subprime exposure. GMF’s subprime portfolio (borrower FICO scores below 620) comprised 12 percent of earning assets as of the end of March, while Ford Credit reported its “higher risk business” to be 5 – 6 percent of the U.S. loan portfolio. Notably, the 2 portfolios are not entirely comparable, however, because Ford Credit’s originations support Ford sales only, while GMF’s originations support GM sales as well as non-GM sales from the legacy AmeriCredit platform. GMF’s subprime concentration has declined significantly in recent periods, Moody’s emphasized. GMF’s rapid expansion will pause temporarily with the sale of its European operations but will also remove a sizeable and stable retail loan portfolio, increasing the importance of improving the credit quality of the U.S. portfolio. Ford Credit’s annualized total portfolio growth of 9.2 percent as of March 2017 will continue to track near historical norms unless interest rates increase materially. Moody’s rates Ford Credit Baa2 with a stable outlook. It rates GMF Baa3 with a stable outlook. +++
+++ JAGUAR LAND ROVER ’s Special Vehicle Operations (SVO) division, responsible for the new XE SV Project 8, will build its own bespoke models in the future, according to brand boss John Edwards. Rather than sticking to enhanced versions of existing models like F-Type-based Project 7 and XE-based Project 8, the SVO division will also target cars like the Mercedes-AMG GT by creating a totally unique sports car of its own. “Deep down we want to make our own model”, Edwards told. “Just look at the success of the Mercedes AMG GT”. It’s possible that Jaguar could create a rival for the AMG GT by using the mechanical make-up of the F-Type SVR and dressing it in a bespoke body, with a unique interior. Edwards emphasised the need for SVO to get its early ‘Project’ cars right before embarking on standalone models, however. While it’s currently unclear which JLR products are next in line for the SVO treatment, Edwards explained that the Jaguar F-Pace and upcoming Range Rover Velar SUVs had “great potential”. The new XE SV Project 8 went from first sketch to official reveal in 12 months, proving JLR has the ability to accelerate development of its future bespoke sports car should it wish. Edwards praised the freedom his team of engineers had been given for the Project 7 and Project 8, in fact, and confirmed he was looking towards the next generation of products. +++
+++ Reid Bigland, head of both Alfa Romeo and MASERATI , outlined some thoughts about future product for both luxury brands. The Canadian executive sat down for an wide-ranging interview and discussed everything from sales figures and upcoming vehicles to technology. Bigland talked up Maserati’s impressive sales growth over the past few years, with the brand jumping from around 6,200 sales in 2012 to roughly 42,000 in 2016. All of that has been driven by the Levante, which found 18,000 new homes in the US, and 15,000 in China during 2016. Counting just those 2 markets, the Levante is responsible for over 75 percent of all of last year’s Maserati sales. When asked if a second SUV is possibility, Bigland replied, “If customer preference continues to evolve, certainly”. He also noted a majority of Porsche’s sales come from the Macan and Cayenne, but the Germany company is still seen as a sports car brand. As for the upcoming Alfieri, Bigland stated the much delayed coupe would be pitched as a “real sports car” to better differentiate itself from the 2+2 GranCoupe and GranCabrio. Bigland declared “fully automated driving does not fit our brand” and “Maserati embodies, in many ways, the complete opposite of an autonomous driving car”. Although, he did note the company’s cars “need technologies such as track assistants, collision monitors, or parking aids to remain relevant with the competition”. Shifting to Alfa Romeo, Bigland ruled out a “classic” hatchback replacement for the MiTo and Giulietta models, which are still important for the European, Japanese and Mexican markets. Keen to not exclude “compact Alfa models in the future”, the executive said the “segment of the compact SUV could be interesting here” if it fits into the “new dynamic brand philosophy”. +++
+++ According to the latest rumor off the mill, the Spanish automaker SEAT , who was in a dire financial state not long ago, is valiantly looking into the future and wants to enhance its range even further. Allegedly the automaker is set to enter no less than 3 new segments with 6 new vehicles by 2020, not counting in the recently introduced Arona subcompact crossover. It seems the company is looking to bring to life even more SUVs (one of them we already know of, a brother to the midsize Skoda Kodiaq) as well as electric vehicles before the decade runs out. One of the bespoke electric models is set to use the underpinnings of the VW Group MEB platform, specifically conceived for use in alternatively-powered vehicles. This particular EV should come out in 2019 and feature enough range to drive around for up to 500 kilometers. Matthais Rabe, the brand’s research and development chief, stated during a recent interview that “with these 6 new models we will enter at least 3 new segments. There will be 3 replacement models but 3 will be totally new. We have plans up to 2025 on the product side. We are now coming to the biggest product phase”. Of course we should be expecting a new generation of the Leon, coming for the first time with a plug in hybrid option. +++
+++ VOLKSWAGEN is reducing the workforce at its core division more rapidly than planned, its human resources chief said, helping the brand make progress on cost cuts needed to revive the business. The world’s largest automaker is overhauling its biggest division by sales to generate funds to invest in electric cars and self-driving technology as it struggles to overcome its emissions-cheating scandal. More than 7,500 workers have accepted offers of early retirement since a hard-fought turnaround plan was signed with unions last November, about 80 percent of the 9,300 pledges VW had budgeted for by 2020, group HR boss Karlheinz Blessing said in an interview. To stoke demand for the measure, the carmaker has restricted until July 31 an offer to workers and managers born between 1955 and 1960 to take early retirement, the executive said. “Whoever comes later has missed an opportunity”, Blessing said. “I believe we will achieve our targets on staff reduction sooner than planned”. Investors have said a turnaround at the VW brand, long saddled with high development and personnel costs, will be key to turn the crisis-ridden group into a more attractive business. VW plans to raise productivity at its German plants by 7.5 percent this year and next, and a further 5 percent in 2019 and 2020, counting on fixed-cost cuts and fine-tuning of R&D, procurement and production operations. The carmaker is seeking to raise its brand operating margin to near the upper end of a 2.5-to-3.5 percent range this year, from 1.8 percent in 2016. That’s still below profitability benchmarks at European rivals such as PSA and Renault. “It’s a long way” to lastingly raise profitability, said Blessing. “2018, 2019 and 2020 will be the challenging years”. Volkswagen is also moving fast with efforts to weed out temporary jobs. The core brand has slashed the number of temporary positions to around 2,600 now from 6,500 when the turnaround plan was launched, and aims to cut them further to around 1,000 by year-end, he said. The carmaker has a goal to work without any temporary jobs in its home market by the end of 2020. Management and unions have agreed to cut up to 23,000 jobs and, in return, create 9,000 new positions in the area of battery production and mobility services. Headcount may fall further due to “natural” turnover and buyouts which VW has not yet offered, Blessing said. “We have enough instruments to carry out the reduction in staff in a socially acceptable way”. +++