+++ CHINA has begun studying when to ban the production and sale of cars using traditional fuels, the official Xinhua news agency reported, citing comments by the vice industry minister, who predicted “turbulent times” for automakers forced to adapt. Xin Guobin did not give details on when China, the world’s largest auto market, would implement such a ban. The United Kingdom and France have said they will ban new petrol and diesel cars from 2040. “Some countries have made a timeline for when to stop the production and sales of traditional fuel cars”, Xin, vice minister of the Ministry of Industry and Information Technology, was quoted as saying at an auto industry event. “The ministry has also started relevant research and will make such a timeline with relevant departments. Those measures will certainly bring profound changes for our car industry’s development”, he said. To combat air pollution and close a competitive gap between its newer domestic automakers and their global rivals, China has set goals for electric and plug-in hybrid cars to make up at least a fifth of Chinese auto sales by 2025. Xin said the domestic auto industry faced “turbulent times” over the years to 2025 to make the switch towards new energy vehicles, and called on the country’s car makers to adapt to the challenge and adjust their strategies accordingly. Banning the sale of petrol- and diesel-powered cars would have a significant impact on oil demand in China, the world’s second-largest oil consumer. Last month, state oil major China National Petroleum Corp (CNPC) said China’s energy demand will peak by 2040, later than the previous forecast of 2035, as transportation fuel consumption rises through the middle of the century. Song Qiuling, a senior finance ministry official, said during Saturday’s event that government subsidies, intended for jump-starting the new energy auto industry, could easily be abused if held long-term and led to “mindless expansion” and excess capacity in the sector, Xinhua reported. She said China would gradually withdraw such financial subsidies for the sector, and instead speed up the establishment of a credits accumulation policy to support the industry. Late last month, Reuters reported that China was likely to delay implementing tough new sales quotas for electric plug-in vehicles, giving global automakers more time to prepare. Under the latest proposals, 8 percent of automakers’ sales would have to be battery electric or plug-in hybrid models by next year, rising to 10 percent in 2019 and 12 percent in 2020, but the rules would not be enforced until 2019, a year later than initially planned, the sources said. In July, Britain said it would ban the sale of new petrol and diesel cars from 2040 to cut pollution, replicating plans by France and cities such as Madrid, Mexico City and Athens. +++
+++ Shares of HYUNDAI and its suppliers slid on fresh worries over their position in China after highly critical state newspaper comments, even as the South Korean automaker managed to get a Chinese car plant restarted. Hyundai has been at odds with partner BAIC Motor over supplier strategy, sources have said; a rift that appears to be at the root of some of its parts makers not being paid on time, leading to plant stoppages. Sources have told Reuters that BAIC wants to shift to cheaper Chinese suppliers to cut costs amid intensifying competition in the world’s biggest auto market, while Hyundai wants to protect its current supply chain. The problem has become a major headache for Hyundai which is also grappling with fierce competition and a less than stellar product line-up; a host of difficulties that prompted S&P Global Ratings to cut its outlook for the automaker and affiliate Kia. Its China woes were thrust into the spotlight again as the Global Times cited unidentified sources as saying BAIC may end its partnership over supplier disputes. The state-run newspaper followed up with commentary on Friday lambasting Seoul for its decision to deploy the U.S. anti-missile defense system THAAD; a diplomatic standoff that has been hurting Hyundai and other South Korean firms that are highly reliant on the Chinese market. Shares in Hyundai suppliers saw some of the worst drops among slides for raft of South Korean firms, as investors feared a shift to Chinese suppliers was underway. Module maker Hyundai Mobis tumbled 4.7 percent and engine parts maker Hyundai Wia slid 7.1 percent. BAIC declined to comment and said it was not aware of the Global Times articles. Hyundai said in a statement that a cooperative relationship with its partner would continue and “the 2 companies plan to continue various dialogue to strengthen competitiveness in the Chinese market”. The automaker’s shares ended down 1.8 percent and have fallen 6 percent since reports of the payment problems in China first emerged. Analysts said Hyundai’s traditional suppliers may find themselves losing business because of the infighting with BAIC, and that the stakes were high for both automakers if they did not work out their problems. “Beijing Hyundai is Hyundai’s only JV in China, so I feel that it is intuitively very important to Hyundai. BAIC only has 2 joint ventures, one with Mercedes and one with Hyundai, and it’s own brand isn’t very good. So Beijing Hyundai to BAIC is of course very important”, said Jefferies analyst Patrick Yuan. The automaker said earlier in the day that operations at its plant in Hebei province resumed after being suspended; the second time in as many weeks that it has had to halt production at Chinese plants. “We continue to be in discussions over payment”, a spokesman for the automaker said. Samsung Securities analyst Esther Yim said the internal disputes over suppliers signaled a prolonged crisis for the South Korean automaker. “Investors are frustrated that Hyundai is just blaming the political situation, and doing little to address the problem. Hyundai is a silent bystander”, she said. Other companies that slid as the Global Times referred to THAAD as ‘a malignant tumor’, included Lotte Shopping which fell 3.2 percent. Its supermarket stores in China have been shut down for months in the wake of diplomatic tensions. Top cosmetic firm AmorePacific also slumped, falling 4.6 percent. “Have the conservatives in South Korea eaten kimchi until they’ve become confused?” the unsigned article said. +++
+++ MAZDA says that the second-generation SkyActiv platform that will debut with the new ‘3’ will mainly be all-new in terms of physical parts. However, Mazda director and senior managing executive officer with oversight for research and development, Kiyoshi Fujiwara, said that the evolving platform will retain many of the key design, engineering and construction elements developed for the original that debuted with the original CX-5 from late 2011. Fujiwara said this was to maximise efficiency and speed up the process of getting it to market in a timely and affordable manner. “Of course we have carryover parts”, Fujiwara said at a media event in Frankfurt showcasing the new technology. “But we do not care about having parts commonisation, we have always considered architectures should be common. Which means the parts themselves can be different but the characteristics or some of the construction architecture should be the same. This is because we have to save the manpower in the development of the vehicles and their new technologies”. Fujiwara added that using the same basic chassis templates and parameters as before, but spending on new components was more beneficial for a comparatively small company like Mazda as it can save valuable time. “That is because we have limited human resources, and therefore if we have a common architecture we can utilise the same computer aided engineering (CAE) models, for example”, he explained. “We don’t have enough time to again make these CAE models. That’s why we are focusing on the common architecture, common characteristics. Therefore we don’t care about commonisation. It’s better for us”. While Mazda will not divulge more information on the SkyActiv II platform until sometime next year, Fujiwara revealed that it would be lighter than the existing version. “The platform will be the equivalent or less weight than the current one”, he said. “But the SkyActiv-G comes with a little bit of extra weight with the ‘Air Supply’ (compression charge tech)”. +++
+++ The zero-emissions vehicle, which NISSAN has unveiled, promises a range of about 400 km (249 miles) in Japanese driving conditions or 240 km (149 miles) in the U.S., before needing another charge. That’s up from up to 280 km (174 miles) in Japan and 172 km (107 miles) in the U.S. for Leaf models on sale now. The distances depend on driving conditions and how much other items in the car such as heating are used. Gas-engine cars can generally get as much as 966 km (600 miles) on a tank of gas in the higher range. Analysts say the biggest obstacle for electric cars’ becoming more widespread is their limited range per charge. Several breakthroughs in battery technology are likely needed before they become affordable and practical for regular consumers. Koichi Sugimoto, analyst at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo, says many automakers are selling green models because of tightening emissions regulations, especially in Europe and California, rather than because of what he called “natural sales growth”. “There really is no outstanding attractive quality about an electric vehicle”, he said, noting drawbacks such as finding charging stations, as well as the time needed to charge. Quick charging time remains 40 minutes for the new Leaf. With normal charging, 16 hours would be needed for a 3-kilowatt system, and 8 hours at 6 kilowatts. “It’s more about an effort to make a better society, so we are looking at a decade or 2 decades ahead”, Sugimoto said. The Leaf has a single pedal that accelerates and slows the vehicle, reserving a separate brake pedal for emergencies. The feature is made possible by the switching on-and-off feature of electric gadgetry, unlike the more standard internal combustion engine, and it’s already available on other electric vehicles like those from U.S. maker Tesla. The Leaf also offers a technology not directly related to its being electric; a semi-autonomous drive feature that Nissan calls ProPilot can be switched on during single-lane highway driving. It also parks itself, taking control of the steering, accelerating and braking, sliding into a parking spot or parallel parking. The Leaf’s restyled look is not that different from its past design, billed as sleek and aerodynamic to maximize range. The Leaf remains an important part of Yokohama-based Nissan’s branding as a symbol of the company’s commitment to the environment. Other Japanese automakers have not been as bullish on electric vehicles. Toyota has been more aggressive about gas-electric hybrids, exemplified in its hit Prius model, and is expanding to plug-in hybrids, as well as hydrogen-powered vehicles. +++
+++ The incoming Frankfurt Motor Show starting next week will also see the premiere of the most powerful biturbo diesel version of the second-generation OPEL Insignia, next to the new Insignia GSI and Grandland X. At the heart of this range-topping biturbo diesel sits a newly-developed 2.0-liter engine, capable of developing 210 horsepower at 4,000 rpm, an option that is probably befitting of the GSI badge as well. The new diesel powerplant has sequential 2-stage turbocharging, reaching a maximum torque of 480 Newtonmeters from as low as 1,500 rpm. The 4-cylinder motor will be offered exclusively in conjunction with an 8-speed automatic transmission, rooting power through the company’s high-tech all-wheel drive with torque vectoring. The near-premium model will reach 100 km/h in 7.9 seconds and then continue on to a maximum speed of 233 km/h, with Opel also giving us the fuel economy numbers through the new Worldwide Harmonized Light-Duty Vehicles Test Procedure (WLTP), which is here as a more realistic alternative to the NEDC cycle, with the figure ranging between 7.5 and 8.0 liters per 100 kilometers combined. A new generation AdBlue injection also makes the Insignia 2.0 BiTurbo already compliant to the Euro 6.2 emissions standard, which is being implemented in Europe from fall 2018. +++
+++ PSA Group will support newly acquired Opel introducing electric cars but the switch must be profitable for it to be successful, PSA Chief Executive Carlos Tavares told. Politicians and regulators across the globe are promoting electric cars after Volkswagen’s diesel cheating scandal exposed higher-than-expected pollution levels among all car brands. “If it works and companies can be profitable that’s good. But if it does not gain acceptance in the market, then everybody: industry, employees, and politicians have a big problem”, Tavares told. PSA Group took control of Opel and Vauxhall on August 1 this year, completing a 2.2 billion euro takeover. “We as PSA will make the technology available to Opel to pursue further electrification. If Opel wants to become a fully electric brand some day, we’re ok with that, providing it is profitable”, Tavares said in a joint interview with new Opel Chief Executive Michael Lohscheller. Electric cars need to be accepted in the market without any subsidies, Tavares said. Asked whether Opel will be profitable in 3 years time, new Chief Executive Michael Lohscheller said, “Opel must be and will be profitable”. Opel’s losses widened in the second quarter to around $250 million. +++
+++ Elon Musk took to his usual PR venue (Twitter) to recently confirm the previously hinted arrival of a Smart Air Suspension system on the TESLA Model 3, alongside the dual motor configuration, from early next year. The new optional system is apparently going to become available on the configurator for the Model 3 “in about 6 months or so”, linked exclusively to the dual-motor AWD performance version. Initially the Smart Air Suspension was a $3,000 option on the Model S, but it’s now standard across the range for the pricier sedan. Right now, the Tesla Model 3 in its 2 evrsions comes equipped with a double wishbone suspension with coil-over twin-tube shock absorbers and a stabilizer bar up front; the rear setup includes an independent multi-link setup, also with twin-tube shock absorbers and a stabilizer bar. So far initial reviews have been very positive on the suspension setup: most calling it a bit firm respective to ride quality. The air suspension and AWD should make things even better, and also allow the choice of option to users, who might want more comfort for longer rides and sportiness for quick handling bursts. In addition, thanks to GPS tagging, the smart air suspension will raise the Model 3 when going over speed bumps and lower itself for improved aero efficiency when cruising at high speed. +++
+++ VOLKSWAGEN has admitted that it will take years to perfect autonomous, electric and connected vehicles. VW senior vice president of e-mobility, Buckhard Huhnke said getting the new age of vehicles “nearly to perfection” will take some time. “The car is something we’ve done great in the past 100 years. Where we have to learn is the mobility services ecosystem”, Huhnke admitted. The brand’s first venture into this sphere will happen when its I.D. hatchback launches in 2020 with an all-electric powertrain, autonomous driving capabilities and connected vehicle features. Underpinning the Golf-sized EV will be a distinctive electric modular architecture, set to be used by a host of next-generation VWs. According to Huhnke, this platform will support over-the-air updates and allow electric vehicle ride-sharing to kick off. “We realized you need to have the chance of continuous updates to keep your car fresh, even activating cruise control or an autopilot feature, this is the platform we’re going to be providing in the future”, he said. In the meantime, the car manufacturer will release a revised I.D. Crozz concept at the Frankfurt Motor Show. +++