+++ The ALLIANCE of Nissan, Renault and Mitsubishi said that its global auto sales in 2017 rose 6.5 percent to 10,608,366 units on brisk sales in China, ranking second for the first time. The 3-way alliance trailed Volkswagen, which clinched the top spot for the second consecutive year, but outperformed the Toyota (including Daihatsu and Hino). Carlos Ghosn, chairman of the Renault-Nissan-Mitsubishi alliance, said the sales growth “reflects the breadth and depth of our model range, our global market presence and the customer appeal of our vehicle technologies”. Global sales of the Japanese-French group of automakers topped the 10 million mark for the first time (a milestone that only Volkswagen and the Toyota group have accomplished) and saw them climb from 4th place in 2016. Mitsubishi joined the alliance after Nissan bought a 34 percent stake in October 2016. Nissan and Mitsubishi Motors saw their sales rise significantly in China, their largest market, helped by the popularity of SUVs, while Mitsubishi’s recovery from a slowdown in 2016 following a fuel economy scandal also lifted sales. A Nissan executive said that the alliance will continue to take advantage of the scale of the group that realizes cost cuts by sharing car components. A Toyota official said the carmaker “will not pursue higher unit sales by merely comparing with other companies’ figures”, adding that the group’s sales hit a record high for the first time in 3 years on “continued efforts to grow sustainably”. Although General Motors has yet to release its annual sales figures, the Toyota group is believed to have surpassed the U.S. automaker to rank 3rd after selling a record 10,386,000 cars globally in 2017, up 2.1 percent from the previous year and surpassing the 10 million mark for the 4th consecutive year. For the first 9 months of 2017, General Motors’ global sales fell 2.2 percent. The automaker is expected to release the 2017 data in early February. In 2016, Toyota ended its 4-year reign as the world’s top-selling automaker, losing out to Volkswagen which was recovering from a diesel data falsification scandal. Volkswagen’s sales increased in every international market, up 4.3 percent globally to 10,741,500 units. But the picture is not all that rosy for the Japanese-French alliance with Nissan still struggling to recover from an inspection scandal involving unauthorized workers who had been engaged in final car tests. The incident is still impacting new car sales in Japan where the company continues to see a slowdown. Earlier this month, in his first public remarks since the scandal surfaced last September, Ghosn avoided any mention of the scandal on the grounds that he was no longer the CEO of Nissan. There has been speculation that he could step down as Renault’s CEO as well. Meanwhile, competition in producing emission-free cars and Electric Vehicle (EV) technologies continues to intensify across the globe. Nissan has been the leader in EV production in the automotive industry for some time, launching its revamped Leaf electric car in October. But with buyers in the key U.S. market opting to buy large-sized cars amid falling oil prices it remains unclear whether Nissan’s EV technology will boost sales. In contrast, the Chinese market, where the company marked record-high sales in 2017, is expected to introduce stricter emissions regulations in 2019. Carmakers have announced tie-ups to step up cooperation in developing electric vehicles, including an alliance between Toyota and Mazda, while 3 major automakers in China have joined hands in making green cars. There is speculation that the Chinese companies could merge in the future, becoming a group ranking with the world’s “big 4” carmaker groups of Volkswagen, Renault-Nissan-Mitsubishi, Toyota and General Motors. +++
+++ BMW has promised to overhaul its design principles to make its vehicles stand out in an increasingly competitive luxury market. The company has apparently been listening to criticism that its current lineup has too many lines, without providing enough distinguishing characteristics between different models or clear changes with facelifts and redesigns. “We’re going to clean things up; we’re going to use fewer lines; the lines that we’ll have will be sharper and more precise”, BMW Group design boss Adrian van Hooydonk told. The X2 is referenced as the first such example, with an inverted kidney grille, unique headlight layout and C-pillar BMW roundel to better separate the newcomer from the existing X4 and X6. “Everything that comes out from now going forward will play a big role”, van Hooydonk says. The next models to showcase the shift in design focus include the new 8-Series coupe, X7 and redesigned versions of the X4, X5 and 3-Series. +++
+++ DAIMLER ’s profit growth will be dampened this year by spending on new technologies such as electric and autonomous vehicles, it said, as it missed quarterly earnings forecasts and reported a lower margin on its Mercedes-Benz cars. An expected rise in unit sales and revenue in 2018 will be countered by spending on new cars and technologies, the German automaker said, forecasting earnings before interest and tax (EBIT) would come in at a similar level to 2017. Evercore ISI analyst Arndt Ellinghorst said Daimler’s results and guidance flagged investment and exchange rate challenges likely to hit profitability across the industry. “Of course we are aware of many of these burdens, but to see it black and white is still shocking”, said Ellinghorst. Daimler said it faced currency headwinds, partly from a stronger euro, of up to 1 billion euros in 2018, as well as 200 million euros in extra raw material costs and a further 1 billion euros in investments to “secure the future”. Ellinghorst calculated this could amount to an additional 300-400 million euros in extra restructuring costs and a rise of up to 700 million euros in research and development spending. “Daimler is not alone. It will be harder for all companies to maintain their profitability”, said Ellinghorst, who has an “outperform” rating on Daimler shares. Most major carmakers are ramping up spending on electric vehicles and autonomous driving technologies, as well as services such as car-sharing, amid tightening emissions regulations and competition from the likes of Uber and Google. Daimler’s EBIT for the fourth quarter through December was flat at 3.47 billion euros, missing the average forecast of 3.65 billion euros in a Reuters poll. The return on sales at its Mercedes-Benz Cars division shrank to 9.7 percent from an unusually high 10.7 percent a year earlier, even as unit sales rose by 4 percent. This year, Mercedes-Benz will post a slight rise in unit sales and flat EBIT at its cars division, Daimler forecast, while operating profit at the vans business will dip, with the costs of launching a pickup truck offsetting higher unit sales. Despite a continued rise in demand for cars in China this year, Daimler said it expected more moderate demand in the first months of this year. +++
+++ Hyundai luxury brand GENESIS is using an extended Santa Fe mule to develop underpinnings for a premium SUV model that could rival the Range Rover Velar. Spotted testing in the Arctic Circle, the mule is expected to form the basis of a production car that will be the first of 2 confirmed SUV models on their way by 2020. It will be larger than the Hyundai Santa Fe, as evident by the cut-and-shut body of the test mule that gives it an extended wheelbase and stretched body, suggesting it will share much of its base with the G80 saloon. It is likely to be offered in 2- and 4-wheel drive forms and could get up to 3 rows of seating. This fits the bill for an SUV production car that takes inspiration from the GV80 concept. Genesis first showed the concept, which featured a swept-back roofline and spacious four-seat interior, at New York motor show last April. It’s likely that Genesis engineers are using the Sante Fe mule in Scandinavia to put new suspension and driveline settings through their paces before a more comprehensive pre-production car is produced. This is common practice in the earlier stages of a car’s development. Genesis’ production SUV will almost certainly be offered with electrified powertrains in order to conform to increasingly stringent emissions limits. The GV80 concept featured a plug-in hydrogen fuel cell powertrain, although the final car may stick to a more conventional battery-powered system to maximise the car’s infrastructure compatibility. The production SUV model will be key to Genesis’s global growth plans, which are focused on regions where SUV demand dominates new car sales. A brand spokesman told that America, China, Korea and the Middle East have remained first priorities for the brand since it launched as an independent division in 2015. Since then, Genesis has launched the G80 and G90 saloons, with the recently revealed G70 due on roads in the aforementioned markets at the end of 2018. Following this, the brand will launch the first of two SUV models, before adding a sports coupé to the range. Europe is on the brand’s radar, but a spokesman told that “there’s more of a heritage in the other markets”, so Europe won’t become a priority until Genesis has made a real mark in areas it is already established in. It’s probable that Genesis will use the launch of its sports coupé, expected in 2020, as a catalyst to enter the European market in the early part of the next decade. Such a strategy would ensure that Genesis arrives here with enough of a differentiation from Hyundai, which is already a well-known brand in the region. +++
+++ Combined automobile production in JAPAN by 8 major makers in 2017 rose 5.5 percent from the previous year to 9,194,821 units, the first increase in 3 years, data from the companies showed. The result was backed by brisk new auto sales in Japan. 5 automakers including Toyota posted growth in their domestic auto production, while Honda, Mazda and Subaru incurred drops. Daihatsu saw its domestic production jump 27.2 percent to a record high of 919,516 units, thanks to strong sales of the Roomy and Tank subcompact cars, supplied to the parent for sale under the Toyota brand. Suzuki’s domestic output grew 24.3 percent to 987,537 units, jacked up by robust sales of its Swift. Meanwhile, combined overseas production at the 8 companies climbed for the 6th straight year, hitting a record high of 19,475,612 units; up 3.9 percent. 6 scaled record highs, excluding Daihatsu and Mitsubishi. Overseas output expanded 3.1 percent to 4,749,305 units at Nissan and 5.8 percent to 4,419,342 units at Honda, both thanks to increased production in China. Suzuki’s overseas production advanced 7.6 percent to 2,314,799 units, as Indian production grew. Toyota, Nissan and Honda suffered declines in their U.S. auto production, mainly reflecting the sluggish sales of their passenger cars in the country. Meanwhile, Subaru enjoyed a 20 percent increase in U.S. auto output after starting local production of its Impreza for the North American market. In December alone, overall domestic auto production rose 1.8 percent from a year before to 758,342 units, marking the 14th straight month of increase. Overseas output was up 1.7 percent at 1,505,616 units. +++
+++ The BMW M3 F80 is starting to show its age and will soon be put out to pasture. The introduction of the Worldwide Harmonized Light Vehicle Test Procedure (WLTP) has pushed the automaker to end production of the current-generation M3 earlier than expected. The new regulations, which replace the previous New European Driving Cycle (NEDC), would require the model to be equipped with a particulate filter but BMW has decided against this. As a result, the car will reportedly go out of production in May of this year. While the M3 will be going on a short hiatus, production of the M4 Coupe and Convertible will reportedly continue as both models are expected to receive the filter well ahead of the June 1st deadline. BMW hasn’t said much about the next-generation M3 but the model was recently spotted undergoing testing. The prototype didn’t reveal much about the production model but it suggested the car will have wider front fenders, a 4-tailpipe exhaust system, and an aerodynamic body kit which includes aggressive side skirts and a rear spoiler. There have been countless rumors about what will power the next M3 but the general consensus is a twin-turbo 3.0-liter six-cylinder engine. However, reports vary from there as some claim the car will have a 48-volt mild-hybrid system while other expect the model to use the same water-injection system as the M4 GTS. Everything remains to be seen but rumors suggest the car will produce anywhere from 460 hp to 500 hp. +++
+++ The all-new MERCEDES A-Class will feature advanced voice control technology that enables users to speak in “natural language” to adjust car settings and control the infotainment, Daimler boss Dieter Zetsche has confirmed. Zetsche said that the system, which is called MBUX for Mercedes-Benz User Experience and can be awoken with “Hey Mercedes”, will eventually make its way across the car range. It will be more advanced than the system featured even on the range-topping S-Class. The technology was previewed earlier this week, showing that it works in a similar way to iPhone’s Siri. It comes along with a raft of new features that are integrated into an all-new interior, included new, ultra-advanced satellite navigation technology. Zetsche said that the sat-nav system would benefit from technology developed by British firm What3Words, which divides the world into three-metre squares, each with their own unique three-word reference. Diamler recently invested in the tech company, buying a stake understood to be around 10 percent. Using 3-word references allows the navigation system to identify exactly where the driver wants to go, eliminating the relative inaccuracy of current sat-nav systems. The system is designed mainly for voice-command operation and so will work with the MUX technology. The technology will make its world debut in the new A-Class. It will be presented to the public for the first time at the Geneva motor show in March. It is scheduled to start sales by mid-2018. +++
+++ MITSUBISHI said Monday it has signed a deal with the Vietnamese government for joint research to promote electric vehicles in the Southeast Asian country. As Vietnam seeks ways to reduce carbon dioxide emissions and to produce environment-friendly cities, Mitsubishi will cooperate with the Vietnam Industry Agency under the Industry and Trade Ministry to study efficient EV usage and public policy programs that can support speedy adoption of sustainable automotive technology, according to the Japanese automaker. Commenting on a memorandum of understanding signed the same day, Vietnamese Industry and Trade Minister Tran Tuan Anh said in a press release, “We are delighted to conclude the MOU with Mitsubishi as our important partner. This joint study is a very important milestone to promote the transition of a low carbon economy”. “We look forward to sharing Mitsubishi’s pioneering expertise in electric vehicles and exploring how government policy can support the adoption of this transformative technology”, said Kozo Shiraji, Mitsubishi Motors’ executive vice president. While vehicle sales in Vietnam have been increasing on the back of economic growth, air pollution is becoming a serious problem as environment-friendly vehicles such as EVs and plug-in hybrids have not been promoted yet. Under the agreement, the Japanese carmaker will share its knowledge on tax and subsidies related to those vehicles, as well as conduct research on charging infrastructure and the country’s road system. Mitsubishi has already signed similar MOUs with the governments of the Philippines and Indonesia. +++
+++ SEAT ’s forthcoming pure-electric car will match the Leon hatchback on size, but offer much more cabin space, the firm’s head of R&D has revealed. The Spanish brand will launch its first product based on the VW Group’s pure-electric MEB platform in 2020. Lodged trademark applications suggest the bespoke electric car could be called the Born, Born-E or E-Born; 3 names based on El Born, one of the trendiest areas of Barcelona and an ideal environment for an electric vehicle. Seat hasn’t confirmed the bodystyle, but it is understood that it’s likely to be a hatchback with a slightly raised floor and roofline to accommodate the batteries. Seat’s vice-president for research and development, Matthias Rabe, has now told where the vehicle will sit in the company’s line-up. “The first MEB car will be smaller than our big SUV that’s coming soon”, he said. “It will be more the size of the Leon; very close, in fact, in length. But the interior space will be much greater because of the packaging advantages of MEB”. This characteristic follows the same pattern as VW’s forthcoming I.D., the first car to use the MEB platform, which will be almost the same length as the next generation of Golf, but use a much-extended wheelbase to offer cabin space similar to that of the larger Passat. Rabe added: “I think in price terms our car will be around the same as an Ateca”. This could place the model in a similar bracket to the I.D., which VW has said will cost the same as a well-specced diesel Golf (32.500 euro in The Netherlands). He also confirmed that Seat plans to offer its MEB hatchback with 2 power outputs, but suggested that additional performance could be offered because the platform will give SEAT the chance to introduce over-the-air subscriptions for services and updates. The research boss said: “We haven’t decided exactly what services we will offer, but I think they will be software-based rather than hardware. “If, for example, we already installed heated seats on 90 percent of our cars as an option, then we could add in the extra 10 percent and offer buyers the chance to subscribe to having heated seats in the winter. However, if you only have those seats on 10 percent of your cars, there’s no business case. “Either way, I think we’ll end up offering over-the-air items in weekly, monthly or permanent upgrades. And additional performance is one option”. Rabe described the car as “95 percent finished” with the fixed points (wheelbase, width and chassis length) now decided. “It’s a really good-looking car, because it looks distinctive and yet it’s clearly a Seat”, he added. +++