+++ AUDI delivered around 160,900 premium cars in April. Global sales increased by 3.1 %. Customers took delivery of around 624,650 units across all models since January, an increase of 8.0 %. As such, the 4 Rings once again beat its previous record-breaking figure, achieving the strongest demand in Audi history on a cumulative basis. In the core regions dealers in Europe reporting 4.1 % fewer deliveries in the past month than in April 2017. By contrast, sales increased above average in North America (+3.9 %) and China (+13.5 %). “The challenging Chinese market is the pioneer for digitalization and electric mobility. Here we still have a great deal of untapped potential”, says Bram Schot, board member for Sales and Marketing. “Through 2022, we will more than double our locally produced model range and build 4 pure battery-electric models locally”. In China, the increase in sales over the past few months continued (+13.5 % to 52,411 units). The brand with the 4 Rings presented the long-wheelbase versions of the Audi Q5 and A8 at the Beijing Motor Show. The SUV will be launched in the Chinese market in the summer. To date, the sporty off-roader has been an important growth driver for Audi in China. With 10,669 models sold (+12.7 %) in the past month, the SUV accounts for around a fifth of Audi sales in China. The Middle Kingdom is the most important sales market for the A8. In April, around half of the A8 models delivered went to a Chinese customer. Sales of the luxury model increased in the last month in China by 49.3 %q year-on-year. Japan also performed positively since the start of the year. In the second-largest market in the Asia-Pacific region, Audi saw sales grow 3.6 % to 8,664 cars in the first 4 months of the year. Likewise, Korea achieved a positive sales balance in the year to date following a long period of stagnation, with sales of more than 2,500 units since January. In Europe, the impact of the imminent model initiative and the associated model start-ups and discontinuations was still apparent. In the domestic region, deliveries in April fell by 4.1 % to around 72,550 cars. The fall in sales in large markets such as Germany (-5.4 % to 26,696 cars) and France (-12.7 % to 5,238 cars) in particular had an adverse effect on results. By contrast, sales in Italy increased by 4.6 %. In Europe as a whole, the carmaker sold around 288,550 cars over the past 4 months, down 4.6 percent on the same period last year. Business of the 4 Rings in North America continued its positive trend: In April, demand in Mexico increased by 0.9 % to 1,058 units. With sales up 13.9 % and 4,108 cars delivered, April provided the best monthly result ever in Audi history in Canada and the 28th consecutive record-breaking month. In the U.S. market, Audi sales increased 2.1 % to 19,104 cars. As in many other markets, the Audi Q5 and the A5 family in particular generated positive momentum. The SUV is Audi’s top-selling model in the United States. Audi of America delivered 19,305 units of the SUV since the start of the year, a year-on-year increase of 18.1 %. Following Germany, the United States is the biggest customer for the A5 Sportback. Last month, 1,106 customers opted for the upper mid-range model. Across all models in the A5 family, the company saw sales increase by 115.4 % to 2,169 cars. Audi managed to consistently increase its cumulative U.S. sales between January and April: Since the start of the year, customers in the United States have taken delivery of 69,156 units, an increase of 7.5 %. In North America, sales in the same period increased by 8.3 % to around 85,650 cars. +++
+++ The CADILLAC ATS Sedan looks set to be discontinued after this year, just 6 years after being introduced as a competitor to the BMW 3 Series and Mercedes-Benz C-Class. Spokesperson Donny Nordlicht said: “Production of the ATS Sedan is ending due to extensive plant upgrades, expansion and re-tooling to prepare for the next generation of Cadillac sedans. Cadillac’s future sedan portfolio will consist of 3 sedans, positioned in different segments and and clearly differentiated by size and price”. According to the report, the roles currently occupied by the ATS, CTS and XTS will be taken over by 2 new sedans, though timing for these new models is yet to be announced. Meanwhile, the CT6 will remain Cadillac’s sedan flagship, serving as technology showcase. This year, the CT6 will introduce the company’s Super Cruise semi-autonomous driving systems. Despite the discontinuation of the ATS Sedan, Cadillac has confirmed it will continue production of the ATS Coupe for the 2019 model year. In 2017, sales of the ATS fell by 39 %, though so far in 2018 the small sedan has risen by 7.4 %. The ATS Sedan may be on the chopping block, but GM’s luxury division is plotting a serious model onslaught over the next 3 years. Starting with the new XT4 SUV later this year, Cadillac has confirmed its plans to launch a new model every 6 months through to the end of 2021. After the XT4, the XT6 (a new 3-row SUV) will be the next new offering to be launched under the Cadillac brand. +++
+++ FORD ’s next Kuga has been spied testing again, this time in the United States and wearing near production ready bodywork, compared to previous mules cloaked as current versions of the firm’s Renault Kadjar, Volkswagen Tiguan and Peugeot 3008 rival. Though recently updated and sitting pretty as the 6th best selling car in the United Kingdom so far this year, the current Kuga is 5 years old this year, and with manufacturers seeing big growth in the SUV segment, Ford is in need of fresh metal. This new Kuga is still a few years from hitting showrooms, however, as evidenced by the substantial camouflage hiding the new car’s refreshed design. It’s likely that the next Kuga will share its platform with the new Focus, and a slight increase in size is on the cards, as hinted at by the longer rear overhang and extended wheel arches of the previous mule. The styling will be influenced by the next Focus too, feeding off the all-new design language that model is expected to usher in. Inside, expect the latest Ford interior package. That means a more horizontally actuated design for the dashboard, with a trademark floating tablet style infotainment display perched atop the centre console. It’s quite likely that the next Kuga will sport a hybrid powertrain option too. Ford recently announced plans to significantly invest in electrification, and will spend almost 9 billion euro in a bid to introduce 40 electrified vehicles including full EVs across various markets by 2022. A fully electric compact SUV is high on the firm’s list of priorities too, though it’s unlikely that this will be a Kuga EV. With the current Kuga marking the mid-way point of its life with a facelift early last year, it will be a few years yet before the next-generation model arrives in showrooms, with a reveal in 2020 on the cards. +++
+++ GENERAL MOTORS is investigating how to make future autonomous vehicles more aerodynamic, especially when there’s no-one or very few people on-board. A patent filing for “Method and Systems for Reconfiguring a Vehicle Geometry” has been uncovered. In short, the filing details how vehicles, most likely autonomous, could reconfigure themselves to handle various use cases. For example, if the self-driving car is heading off to pick up passengers, but has nobody inside, it could fold and store its solid roof inside, and slide a canvas roof over the top. The lower roof height would benefit aerodynamics, and improve driving range. The car could also take on a more rectangular shape if it’s carrying a lot of passengers, and morph to become rounder and slipperier if there’s only 1 or 2 people on board. Another part of the filing details how the car could, effectively, suck in its sides in order to fit into narrow spaces. It would also allow more of these cars to be packed into a parking garage or charging zone. Naturally, the range and efficiency increases gained by changing shape like this will need to be substantial in order to justify the mechanisms and extra body parts required. Should any of these designs see the light of day, they’ll take active aerodynamics technology to another level. Currently on some high performance cars you’ll find rear spoilers that raise and lower themselves depending on the car’s speed, thereby causing as little drag as possible when puttering around town, and generating extra downforce at high speeds. More common are active grille shutters, which open when the engine needs to be breathe in more air, and close at other times to reduce drag or accelerate the warming up process. +++
+++ HYUNDAI and KIA flagged a combined 631,225 units in global sales last month, up 10.4 % on–year, the company said. This marks the first 2 digit growth rate since December 2014, boosted by recovery in external factors including improved diplomatic relations between Seoul and Beijing, coupled with all-out marketing efforts of the automaker‘s top brass led by Vice Chairman Chung Eui-sun. Sales recovery was evident in China, where Hyundai and Kia sold 101.9 % more vehicles last month, totaling 103,109 units compared to April last year. Each, Hyundai sold 70,007 units there, up 100 %, while sales of Kia increased 106.2 % to 33,102 units. “Along with base effect from last year, models designed exclusively for the Chinese market garnered popularity there, taking a step closer to achieving this year’s sales goal”, Hyundai said. Hyundai’s mid-compact car Lingdong tailored for China ranked the No.1 bestselling model in April, and flagged 19,300 units in sales. Hyundai sold 4,385 units of compact sport utility vehicle Encino, sold as the Kona in Europe, launched last month, it said. As for Kia, the China-exclusive K2 compact sedan was the most sold with 9,818 units, followed by K3 at 7,983 units. Midsize SUV Zhi Pao released last month trailed behind at 4,836 units. By restoring brand value, releasing new SUV models and green cars, Hyundai and Kia are seeking to achieve this year’s goal to sell a combined 1.3 million units, among which Hyundai would make up 900,000 units and Kia 450,000 units. Vice Chairman Chung has been seen focused on bolstering performance in China, which accounts for some 20 % of Hyundai and Kia’s sales. Chung visited China three times this year so far. In February, Chung visited Chongqing southwestern China where Hyundai’s fifth production plant is located as well as Shenzhen southeastern China, rising as the next Silicon Valley there. Last month Chung attended the launch event for Encino compact SUV, followed by the 2018 Beijing Auto Show. “We have prepared a lot with many new models in line to be released this year, so we are optimistic about China”, Chung told reporters at this year’s Beijing Auto Show. +++
+++ The world of performance cars is moving toward electrification, and MERCEDES-AMG , a high performance brand of German luxury carmaker Mercedes-Benz, hopes to take the lead. Tobias Moers, chairman of the board of management of Mercedes-AMG, said in a recent interview that the company has set a clear direction to head toward electrification ultimately. In the meantime, the company will focus on developing performance hybrids with high power batteries. “The future, especially in the performance segment, is electrified, is hybridization”, he said. “Beyond the year 2020, you can first expect hybrid engines, performance hybrids … and the second, we will have a closer look to EQ … as a technology brand”. EQ is an upcoming brand by Mercedes-Benz consisting of all-electric vehicles. Moers said that the development of high performance hybrid batteries is “on the way”. Marking its 50th anniversary last year, Mercedes-AMG sold 131,970 units throughout the year. With the auto industry all striving toward electrification and autonomous driving, the AMG CEO said the pleasure of driving, as in the form of a pure human activity, will be kept in the market. And the boldness and the courage AMG has demonstrated with products will be pursued in the future, he said. Moers has been leading AMG since 2013, and has been a member of the executive board of Mercedes-AMG since 2011. He joined Mercedes-AMG in 1994 and assumed overall responsibility for the main model series of the AMG brand in 1999. Prior to joining AMG, Moers was involved in developing a concept for an electric vehicle, the company said. +++
+++ Since its sale last year by General Motors to French auto giant PSA Group, OPEL has refrained from using its OPC (Opel Performance Center) designation for performance models, instead opting for GSi, which traditionally has sat below OPC. It doesn’t mean Opel has dropped the OPC sub-brand, however. A spokesperson said the OPC sub-brand will survive. The likely cause of the current hiatus for OPC models are emissions regulations. The spokesperson said any new OPC models will need “more efficient power sources”. A possible solution could be utilizing electrification. Parent company PSA Group also has more pressing issues. At the top of the list of priorities is getting models from Opel to switch from GM platforms to those of PSA Group, since the brands now pay licensing fees for use of the GM platforms. Opel/Vauxhall are also not allowed to enter markets where GM operates using vehicles based on GM platforms. +++
+++ ROLLS-ROYCE has officially entered off-road territory. The Goodwood-based, BMW brand debuted the $325,000 Cullinan, its first SUV. Named after the largest diamond discovered to date, the vehicle is the latest in a long line of 6-figure big rigs from the world’s most prestigious automakers. It is also one of the last major luxury automakers to add one: In April, Lamborghini unveiled its $200,000 Urus; Bentley showed its $200,000 Bentayga V8 late in 2017. “At this point in the history of automotive design, SUVs have become homogenous and ubiquitous”, Giles Taylor, Rolls-Royce’s director of design, told reporters. “The label SUV is now applied to anything with a 2-box silhouette and the least suggestion of going off tarmac. So we envisioned an authentic, 3-box, all-terrain, high-bodied car with a convention-challenging design and absolute capability that would satisfy the adventurous urges of our clients”. There is ample information now: It’s huge. The Cullinan stands 10 centimeters taller off the ground than its closest competitor, the Bentayga. At 5,864 pounds, it’s more than 500 pounds heavier than the Bentayga, too. Angular sides and that high, flat top make it look more imposing than the rounded Bentayga or even Lamborghini’s crouching, super-sporty Urus. Its front grille has the same steel vertical slats and flat, stark form as the one on the new Rolls-Royce Dawn, but it’s elevated to regal height in the new SUV (the Cullinan can wade in water up to 21 inches high, again beating the Bentley equivalent). Futuristic LEDs surrounding each headlight give it a slightly new, rectangular shape. The first thing you notice, though, are the four doors, which close in the traditional coach format. A rear tailgate automatically opens in two sections with the touch of the key fob button. Massive 22-inch rims flank each of its 4 corners. Inside, the Cullinan offers space sufficiently broad and open to fit a regent and retinue though officially, it can seat only up to 5 people. The rear seat comes in 2 configurations, with 2 cockpit-style seats in the rear or a single lounge seat that allows seating for 3 or, when folded down, up to 600 liters of storage space, equal to that of the Urus. That’s enough to hold a small dog house or a week’s worth of safari-style luggage. Rolls-Royce has also made a new, smaller, and thicker steering wheel for the Cullinan, augmented with a high-resolution, heads-up display and all the technology expected in the family: night vision, including daytime and nighttime wildlife and pedestrian warning; an alertness assistant that helps avoid drowsy driving; a four-camera parking system with panoramic view, all-round visibility, and helicopter view; active cruise control; myriad crash-avoidance systems; Wi-Fi; and the standard navigation and entertainment systems. As expected, from hints the company dropped in recent months, the Cullinan comes with a 6.75 liter, twin-turbo V12 engine that gets 570 hp and 830 Nm. This is the same engine Rolls-Royce put in the Phantom, which also shares the SUV’s aluminum-intensive platform. The famous “magic air ride” feel that rendered the Phantom peerless is present here, too. It’s been re-engineered by adding larger air struts with greater air volume and by strengthening the drive and prop shafts to cushion blows from the toughest terrain, though it’s most of the buyers of this epic SUV probably won’t be taking it to Moab. All-new, all-wheel drive and an all-wheel steering system (the first in Rolls-Royce history) come standard. Top speed is 250 km/h. If you’ve got the funds, you might have a chance at getting your hands on the Cullinan, unlike the Lamborghini Urus, which has already sold out its first 2 years of production. Early sales are expected to include 20 % to 30 % bespoke orders, which push up the price immensely. Deliveries begin early next year. +++
+++ TOYOTA is stepping up cost reductions to shore up its money chest, as it looks to ramp up investment in new technologies, but cautioned a stronger yen would chip away at its operating profit and higher annual sales. Toyota’s plans to spend a record 1.08 trillion yen, or about 10 billion dollar, on R&D this year comes at a time when carmakers worldwide are sharpening their focus on electrification and automation to stay competitive amid rising demand for vehicles powered by cleaner technologies. As a buffer against currency moves and to ensure there are funds for R&D, Toyota “will prioritize sticking to its roots, the Toyota production system and cost cuts”, President Akio Toyoda said, referring to a strategy to coordinate with suppliers to make cars when needed, minimizing inventories. A recently introduced production system based on more standardized parts that can be used across different models will also continue to help deliver cost cuts, he added. Cost reductions are expected to contribute around 130 billion yen to operating profit this year, after adding 165 billion yen to Toyota’s earnings last year. “We’ve become a leaner, trimmer company and in the past year we’ve developed our remaining fat into muscle, so that we’re in a strong position to be more competitive”, Toyoda said. Japan’s top carmaker posted a 20 % jump in operating profit to 2.4 trillion yen for the year to March 2018, outpacing rivals Volkswagen and Daimler for a fifth straight year to be the world’s most profitable automaker. Despite cost cuts and record-high global sales, Toyota expects operating profit of 2.3 trillion yen for the year to March 2019; better than analysts’ estimates but 4.2 % lower than a year ago due to a firmer yen rate of around 105 to the dollar, versus 111 yen in the previous year. A firmer yen eats into profits repatriated from abroad and raises the cost of exported vehicles and parts, making Japanese products less competitive overseas and denting margins. Toyota’s warning comes on the heels of similar projections by other Japanese automakers, such as Honda and Mazda. The only outlier so far is Mitsubishi, which sees a rise in operating profit despite a stronger yen. Toyota is targeting total group sales of a record 10.5 million vehicles globally in the year to March, versus 10.44 million last year, led by strength in Asia. It expects sales in Asia to rise 8.2 % to 1.67 million units, while it sees sales in North America, its biggest market, dropping slightly to 2.8 million units. In North America, Toyota and its domestic rivals are grappling with intense competition and falling demand for sedans, a mainstay of Japanese automakers in the region, amid an overall slowdown in the world’s second-biggest auto market. North America remains “challenging”, senior managing officer Masayoshi Shirayanagi said, adding the company planned to keep vehicle discounts, a major cost to the company, at current levels or lower them this year. +++
+++ The Chinese owner of VOLVO has hired three investment banks for an initial public offering (IPO) this year that could value the Swedish carmaker at between 16 to 30 billion dollar, a person familiar with the matter told. China’s Zhejiang Geely Holding Group, which bought Volvo in 2010, has picked Citigroup, Goldman Sachs and Morgan Stanley for the listing, the source said, who asked not to be identified because the deliberations are confidential. The potential listing could take place as soon as September this year, the source said, although market conditions will ultimately determine the timing. A spokeswoman at Volvo said an IPO was an option and the decision was up to its owner. She gave no other comments. Geely said in a statement that the firm was “looking at the possibilities” when asked about the dual listing plans for Volvo. “We haven’t made a final decision on how to proceed as of yet”. Geely and its boss Li Shufu have been making an aggressive global push with billions of dollars worth of deals overseas in the past year, including a 9 billion dollar stake in Daimler, the German owner of Mercedes-Benz. The Chinese group which controls domestic carmaker Geely Automobile Holdings, has a majority stake in sports car maker Lotus, a 49.9 % stake in Malaysian automaker Proton and flying car start-up Terrafugia. Li already owns LEVC, the maker of London’s iconic black cabs, and announced a deal to take a 3.3 billion dollar stake in truck maker AB Volvo at the end of last year. Spokespeople for Citigroup, Goldman Sachs and Morgan Stanley declined to comment, but the source said the 3 investment banks at this stage were joint co-managers and that no lead bank had yet been appointed. Volvo Cars had revenues of 210.9 billion crowns (24.4 billion dollar) in 2017 with an operating profit of 14.1 billion crowns. +++