+++ My phone didn’t stop ringing over Christmas and the New Year as television broadcasters sought my views on a variety of mostly negative car-related stories. Nissan’s banged-up chairman Carlos Ghosn (the unfriendliest car guy I’ve ever met) was the man they desperately wanted to discuss as he languished in jail contemplating a possible 10-year sentence. The Brexit malarkey; plummeting UK vehicle production/sales; slowing sales in China – all were among the hot topics producers and presenters hit me with. There was yet more gloom on the already miserable first working day of the year, with claims from the business world that a cool “€100 billion was wiped off the world’s top car makers” in recent months, Mercedes (down €25 billion) and Ford (down €13 billion) being among the biggest losers. Ouch! Enough of the negativity. 2019 is shaping up to be one of the most exciting in living memory. For starters, new car buyers will be telling themselves that if 25 % discounts were available on some volume cars in 2018, cuts could be more generous in 2019 as supplies outstrip demand. Also mouth-watering is the electric vehicle war about to break out between wet-behind-the-ears Tesla, up-and-coming Jaguar, the reinvigorated Volkswagen empire, unpredictable BMW and old stalwart Mercedes. There will be winners, losers and injuries; one or two fatal, perhaps. So make sure you back the right side and get in early as waiting lists for these new models (and existing electic vehicles) are already stretching towards the end of this new year. If you’re in the majority and still not ready to go down the relatively expensive pure-electric or petrol-electric routes, don’t rule out tried-and-tested diesel and enjoy the low real-world consumption. I achieved this over Christmas in the big, surprisingly endearing Peugeot 508. It’s not the best car in the world. But in eco driving mode it is the most frugal large vehicle I’ve ever driven. And it’s proof state-of-the-art diesel tech can still be a winner, despite mentalists and politicians trying to murder it. In 2019, we petrol / diesel / electric / hydrogen heads are in for an exciting, if bumpy, ride. So let’s enjoy it. +++
+++ AUDI delivered around 1,812,500 automobiles to customers worldwide in 2018, which is 3.5 % less than a year ago. In Europe, sales fell 13.6 % in the past 12 months. On the home continent, Audi had replaced almost a third of its deliveries with important model changeovers for the A1, A6, A7 and Q3 since the start of the year. In China, the Ingolstadt-based carmaker reaffirmed its position as the most successful premium brand for the 30st year in succession. In North America, the company closed the year on a par with the level of last year (-0.9 %). Around 154,550 customers worldwide chose an Audi in December, a decrease of 14.3 %. “As expected, 2018 has proven extremely challenging with the largest model and technology campaign in Audi’s history, coinciding with the switch to the new WLTP test cycle,” says Bram Schot, CEO and interim Board Member for Sales and Marketing at Audi. “The positive feedback from our latest models demonstrates our brand’s strength, while we prepare for the new challenges ahead this year”. In China, Audi once again closed the year with a new record-breaking figure, with 663,049 automobiles sold representing an increase of 10.9 %. The sales volume has increased more than 5-fold over the past 10 years. In 2018, the Four Rings saw demand soar for the locally produced premium models A4 L (+42.6 % to 163,279 cars) and A3 (+12.7 % to 91,173 cars) in particular. The company sold more than 10,000 units (+4.0 %) of the new edition of its full-size flagship, the A8 L, in 2018. In October, a long wheelbase version of the Q2 tailored specifically to the Chinese market joined the local portfolio; this version is aimed particularly at young customers. 2019 will see further highlights arriving at dealers in the Middle Kingdom, with the market introduction of the new A6 L shortly. With the Audi Q2 L e-tron as the first locally produced electric car and the Audi e-tron as an import model, Audi also aims to set an important milestone in the second half of the year for the electrification of the Chinese model range. Model changeovers, numerous political and economic uncertainties as well as the changeover to the new WLTP test cycle dominated business for Audi in Europe in 2018. Across all models, sales on the home continent fell by 13.6 % to around 743,600 units over the year as a whole. The A7 performed well, with sales up 47.4 % to around 10,100 units since January. Attracting around 16,000 advance reservations, the Audi e-Tron also caused a stir among European customers. In December around 51,500 customers (-20.9 %) in Europe received their keys for an Audi. The company continues to work at full speed on the homologation of its models. Week after week further engine/transmission variants can be ordered again in the configurator. In the United States, Audi once again achieved very strong sales in 2018, ending the year with 223,323 customers, slightly below the comparative figure for 2017 (-1.4 %). The Q family in particular is providing a great deal of momentum in the United States. Demand for the sporty off-roaders grew above-average by 8.3 % to 126,252 units. For the first time in the history of Audi of America, SUV sales account for 57 % of deliveries. The most popular Q model is the Q5, with demand increasing over 21 % to 69,978 cars. Audi Canada also benefited from the SUV trend, achieving a new record-breaking figure (+2.5 % to 36,908 cars). As a result, Canada established itself as a firm fixture among the top10 largest markets for the third year in succession. In North America, deliveries in the year as a whole built on the high level of 2017 (-0.9 % to around 275,000 cars). +++
+++ CHINA ’s new car market is predicted to recover this year after 5 months of turmoil, sending a lifeline to a number of global car makers who rely heavily on the country for profits and have seen painful double-digit sales declines. Throughout 2019, the world’s biggest car market is predicted to recover 3 % of growth and up to around 24 million units, compared with a decline of 2.6 % in 2018 and 23.4 million units, according to industry experts IHS Markit. The decline is the first time since 1990 that China hasn’t recorded growth in the automotive sector. “We do expect China to come back this year”, said Colin Couchman, director of global automotive forecasting at IHS Markit, “probably on the back of a more stable finance market, but also changes to personal taxation taking effect and the tariff war settling down”. Last year, the flow of finance to buyers of new cars started to dry up in the middle of 2018, taking an immediate toll on new car sales. Starting from July, China’s new car market went from steady growth to a consistent decline. According to IHS, July was down 5.3 %, with worsening declines later on in the year culminating in a drop of 12.8 % in November. The sticky finance market is partly blamed on a clampdown on China’s ‘shadow’ banking (unregulated lending) sector, estimated at €9 trillion. “This could have been a negative for the car loan market”, said Couchman. But other significant factors are at play. The tariff war with the US has hurt medium-sized Chinese companies and dented consumer confidence, dissuading car buyers. And the tariff war has also hit China’s stock market, again knocking confidence from buyers who might otherwise have bought a new car. With tariffs see-sawing between 15 %, 25 % and 40 %, car buyers can’t be blamed for waiting to see how prices will eventually settle down? The effect on car makers has been a mixed bag, with some winners, such as BMW, Mercedes and Volkswagen. But Ford, General Motors (GM), Jaguar Land Rover (JLR) and Hyundai have struggled. Ford has suffered with an ageing model range and has recorded a 40 % sales drop that, it hopes, the new Focus will reverse. While GM downsized several models to a new 3-cylinder engine, Chinese buyers lacked confidence in its driveability, which has slowed sales. GM has tried to decouple the US/China trade war from its sales decline, but it’s hard to see how the actions of US president Donald Trump haven’t had a negative effect on both GM and Ford. JLR’s woes have been even more dramatic, with a 50 % sales decline in November from 14,000 units in 2017 to just 7,000 in 2018. JLR is said to have suffered some problems with its dealer network, but tariff uncertainties won’t have helped buyers of top-end models imported from the UK. The result, alongside other factors, culminated in factory shutdowns at the firm’s UK facilities late last year. This year’s market recovery can’t come soon enough for JLR, with an overall 20 % drop in Chinese sales in the year to November (105,000 versus 131,000), while sales of its joint-venture models (the XE and Evoque built in China) fell from 74,000 to 63,000. As for the chances of a wider recovery in 2019, IHS Markit is looking towards a resolution of the tariff wars, some sort of Chinese government stimulus, and the restoration of credit lines to return confidence to the market. Then the world’s most prominent car makers can get back to selling the necessary number of cars in China to justify sizeable investment they have made there over the past few years. +++
+++ The upcoming Mercedes-Benz GLB SUV will feature a pure-electric EQ B version alongside petrol, diesel and petrol-electric hybrid powertrains. The EQ B, sitting underneath the recently revealed EQ C, promises a range of up to 500 kilometres and will feature an aerodynamically optimised GLB-based body, according to factory insiders. The new Mercedes-Benz SUV, which goes under the internal codename X247, has been conceived as a direct rival to the Audi Q3, BMW X1 and Lexus NX. It will be priced and positioned above the existing GLA crossover hatchback when it goes on sale early next year, following a planned unveiling at the Frankfurt motor show in September. A range of transversely mounted four-cylinder petrol and diesel engines is set to form the basis of the initial GLB line-up. However, it can be confirmed that both plug-in hybrid and pure electric systems will be added to the range shortly afterwards as part of a commitment to launch more than 130 electrified Mercedes-Benz models by the end of 2022. The GLB is the 8th model to be based around Mercedes-Benz’s MFA II platform and it shares its wheelbase with the China-only long-wheelbase A-Class saloon. At 2.789 mm, its wheelbase is 60 mm longer than those of the other new A-Class models, while a relatively long rear overhang ensures the GLB provides more luggage space than today’s first-generation GLA. +++
+++ FIAT CHRYSLER AUTOMOBILES (FCA) is reviewing its investment plan for Italy after the country approved taxes on the purchase of larger gasoline and diesel cars, Chief Executive Officer Mike Manley said. The carmaker said in late November it would spend more than €5 billion on new models and engines in Italy over the next 3 years to try to make better use of factories and boost jobs and margins. In December, however, Italy approved measures to offer subsidies of up to €6,000 euros to buyers of new low-emission vehicles while introducing taxes on the larger gasoline and diesel cars. “It certainly means it needs to be reviewed again. It’s being reviewed at this moment”, Manley told. “Until that review is finished, I can’t comment any further”. FCA’s Italian plans were intended to deliver on a strategy outlined by late boss Sergio Marchionne in June, when he committed to keep converting Italian plants to churn out higher-margin Alfa Romeos, Jeeps and Maseratis, as well as hybrid and electric vehicles, to protect jobs and lift profit. Manley said tariffs imposed by U.S. President Donald Trump’s administration on steel and aluminum imports would add between $300 million and $350 million in extra costs for FCA in 2019. He said the partial U.S. government shutdown over spending for a wall sought by Republican Trump on the U.S.-Mexican border has delayed final certification of one of FCA’s heavy-duty pick-ups. Pick-ups are the one of most profitable segments in the auto industry and are a major profit driver for FCA as it battles for market share against General Motors and Ford. “So I am concerned, clearly. Very concerned”, Manley said. “If the shutdown continues it will have an impact on the launch of heavy duty. The earlier it can be resolved, clearly the better”. Manley, who took the helm at the world’s 7th-largest carmaker last year after Marchionne’s sudden death, also said that FCA’s robotics business, Comau, and castings unit, Teksid, were not for sale at the moment. “I’m focused on building value in those businesses. If I’m able to do that, that’s going to give me options in the future”, he said. FCA last year agreed to sell its biggest parts maker, Magneti Marelli, to Japan’s Calsonic Kansei, owned by U.S. private equity firm KKR for €6.2 billion. That sparked renewed speculation that the smaller Comau and Teksid businesses could also go, especially after attracting interest from potential buyers in the past. “One thing I learned in 2018: you should never say never”, Manley said. “Those businesses have value, there have been people that have talked to us about those businesses and I’ve been interested to hear what they have to say”. +++
+++ FORD chief Jim Hackett says the major overhaul of its European business is a “good news story” that reflects the company’s commitment to the region. The US firm is overhauling its European arm in a series of moves that will involve ditching slow-selling products, increasing production of its strongest European-made products and importing a range of new models. Job losses in the thousands are also expected. The moves in Europe are part of a wider restructure of Ford’s global businesses, which include cutting costs by around €9 billion in the next 5 years. Hackett said: “We have the right people, but in Europe we need to work on the business model. We’ve identified 3 business groups (commercial vehicles, passenger cars and imported models) to build for the future, and all 3 will be profitable. “Building the infrastructure to support them is what’s important. The key thing is that what’s happening in Europe is a good news story. Any business I’ve been involved in has undergone changes: it’s Darwinian. I want to make sure that change happens in an orderly way”. Speaking about the business more widely, Hackett added: “The same approach is happening in North America: here the design of the business is in the right place, but the challenge is in the future and preparing for it”. In the US, Ford is currently in the middle of a new model offensive that will involve refreshing 75 % of its range by the end of 2020, and introducing 40 electrified vehicles by the end of 2022. The Explorer hybrid has already been unveiled and key future launches include the new Escape (Kuga in Europe), the return of the Bronco and a Mustang-inspired electric vehicle. +++
+++ One of Renault boss Carlos GHOSN ’s senior executives received an additional 6-figure salary unknown to the carmaker’s board via the Dutch joint venture overseeing its alliance with Nissan, according to sources. Ghosn and Nissan senior director Greg Kelly, who are at the center of a financial misconduct scandal engulfing the carmaking alliance, approved payments totaling €500,000 to Renault General Secretary Mouna Sepehri, who is responsible for corporate governance in her role as board secretary. There is nothing to suggest that the payments by Renault-Nissan BV were illegal or violated Renault-Nissan rules, but they highlight governance issues and potential conflicts of interest. Renault declined to comment directly on Sepehri’s pay as a board member of the Dutch holding company, which has not previously been reported. “Individual compensation, while entirely justified, is not publicly disclosed, in accordance with the law”, a Renault spokesman said in an emailed statement. “Renault would be outraged by any publication of an identified executive’s pay, which constitutes personal information”. Sepehri currently sits on the Renault-Nissan BV board with 9 other Renault and Nissan executives, and is the only director who drew a compensation package directly from the subsidiary, according to the documents and a senior alliance executive. She received €200,000 in 2013 and €100,000 annually from 2014-16 in addition to her Renault pay, according to statements addressed to her each year and the minutes of a 2013 meeting at which Ghosn and Kelly ordered the payments “for the performance of her duties as a management board member”. “It’s important as a general rule that board secretaries avoid allowing themselves to be influenced by a CEO who might promise them remuneration through a subsidiary”, said Loic Dessaint, head of Proxinvest, a prominent shareholder advisory firm based in Paris. “If Ms Sepehri has been paid by Renault-Nissan BV, it is a conflict of interest situation”, Dessaint said. “At a minimum, Renault directors should have known about it”. Ghosn and Kelly have been charged in Japan with failing to disclose $43 million in additional compensation for 2010-15 that Ghosn had arranged to be paid later. They deny that the deferred compensation agreements were illegal or required disclosure. The finances of Renault-Nissan BV and other alliance subsidiaries are under scrutiny in the Nissan investigation that led to Ghosn’s November arrest and ouster as the Japanese carmaker’s chairman. The French government, Renault’s biggest shareholder, has also demanded that the carmaker provide information about Renault-Nissan BV payments to its executives. Sepehri is among a small group of alliance executives who have previously attempted to find legal ways to pay Ghosn undisclosed income through Renault-Nissan BV or other shared finances. In 2010, she and Kelly worked on proposals to create an additional source of CEO compensation through Renault-Nissan BV, but later dropped the plan after concluding it would not avoid French legal disclosure requirements. She and a handful of top managers were also involved in a 2017 project to pay out millions of euros in undisclosed bonuses via a new Dutch service company. The plan, of which Ghosn was the main beneficiary, was scrapped after Reuters revealed its existence in June of the same year. Both efforts, which Renault has confirmed, were designed explicitly to keep the company’s board and shareholders in the dark about significant compensation to the CEO, while working within the law and Renault-Nissan rules. The scandal surrounding Ghosn and Kelly has strained Nissan’s ties with 43.4 % owner Renault, which has maintained Ghosn as chairman and CEO, with his deputy Thierry Bollore as an interim stand-in. Members of the Renault board, which includes French state representatives, say they have yet to be given full access to Nissan investigation findings shared with company lawyers reporting to Sepehri. Her role gives her control over communications, legal and public affairs, as well as the flow of information to the board. The access restrictions are required for judicial confidentiality, Renault said. The carmaker dismissed questions about a potential conflict of interest for Sepehri. “Ms Sepehri occupies a typical general secretary function”, Renault said, adding that the company was “relying on the opinion of its lawyers and advisors” in dealing with the Nissan investigation findings. 3 years after joining the French carmaker as deputy legal director, Sepehri helped negotiate the 1999 acquisition of near-bankrupt Nissan, where Ghosn (then Renault’s second-in-command) led the lightning turnaround that made his name. As their alliance deepened, Renault-Nissan BV was founded in 2002 as a jointly funded management organisation. France’s left-wing CGT union, which has a seat on Renault’s board, said recently it had contacted Finance Minister Bruno Le Maire to denounce Renault-Nissan BV ’s “opaque workings”, citing payments to an executive it did not identify. In response, the government demanded details of any undisclosed executive payments by the Dutch holding, in a Jan. 4 letter to Renault. “I want to know who these payments were made to, whether they were disclosed, whether they correspond to work carried out and whether the Renault board and shareholders were informed about them”, Le Maire said. Ghosn and Kelly agreed on March 26, 2013 that Renault-Nissan BV would pay Sepehri €125,000 immediately, and monthly payments thereafter amounting to €100,000 per year, according to the minutes of their decision. The 2 men were meeting as the Renault-Nissan BV board’s “governance, appointments and remuneration committee”. Its third member, Sepehri, had recused herself, the same document notes. 4 annual statements issued by Renault-Nissan BV confirm the subsequent payments, with a Dutch withholding tax deducted. While all Renault-Nissan BV directors were salaried Renault or Nissan managers, Sepehri was alone in receiving additional compensation for her board role. Renault said Renault-Nissan BV ’s board of directors, who also include Ghosn, Bollore and Nissan CEO Hiroto Saikawa, was informed about members’ compensation. “The Renault-Nissan BV management report, which is approved by the board and auditors, includes information about its executives’ pay”, the company said. However, Sepehri’s fellow directors of unlisted Renault-Nissan BV were not told who received the 100,000 euros mentioned only as compensation to “board members”, according to a senior alliance executive who has seen the annual reports. “There was no official board decision on this compensation”, he said. For Proxinvest, which advises large financial investors on how to vote at shareholder meetings, the Renault-Nissan BV board process also raises concerns. “Good governance requires that a committee proposal should be approved by the full board”, CEO Dessaint said. “And the fact you have only one member receiving payment is very troubling”. +++
+++ Ford and Volkswagen will confirm a wide-ranging ‘ GLOBAL ALLIANCE ‘ that will include co-operation in commercial, autonomous and electric vehicles. The 2 car giants have already announced a deal to work together on commercial technology, and VW boss Herbert Diess recently said they has “identified other potential cooperation”. Sources have now told that a deal is close to being agreed that will also involve working together on the future development of autonomous and electric vehicles. The plans for a strategic alliance, which will not involve any merger or the 2 companies taking equity stakes in each other, could save both companies billions in research and development costs and allow for shared platforms and self-driving technology. In particular, sources told that the 2 would pool resources on autonomous technology development, with Ford given use of the VW Group’s MEB electric car platform. Volkswagen would gain access to the architecture of the Ford Transit van and Ranger pick-up, and the move could lead to VW cars being built in Ford plants. The news follows an announcement in June that the companies were looking to collaborate on the development of future commercial vehicles, among other projects. Ford’s president of global markets, Jim Farley, called this move an example of Ford’s commitment to “leveraging adaptive business models”. Volkswagen’s own MEB electric vehicle platform could form the basis for shared development, although the company’s chief financial officer, Frank Witter, said there has been no decision regarding whether other companies will be allowed to use the template. The first MEB based models are scheduled to roll out of Volkswagen’s new electric vehicle factory in Zwickau, Germany, in November 2019. +++
+++ The global car industry seems to be surrounded by crises. Job cuts this onth from JAGUAR LAND ROVER (JLR) and Ford followed redundancies and plant closures announced by General Motors late last year. These, and the challenges faced by the sector, have raised fears of a car armageddon. Chinese sales have slowed, sapping earnings in the world’s most profitable market. The trade war between the US and China risks playing havoc with the global manufacturing strategies. Tougher rules around CO2 emissions are forcing carmakers to spend heavily on electric technology just as diesel vehicles, the industry’s favorite way of lowering carbon pollution, have lost their appeal. Even Britain’s impending departure from the EU is causing a great deal of concern. Add to this plateauing sales in the US and Europe, a warning that the boom times in this cyclical world may be fading, and the mood across the industry is bleak. “These serious challenges are not coming in singles or pairs but in hordes”, said JLR chief executive Ralf Speth. “As a niche player we feel these impact us sooner and to a greater degree”. But despite the gathering clouds, many of the sector’s key indicators are far from gloomy. The Volkswagen Group reported record car sales for last year, despite being unable to sell many of its cars in Europe for several weeks following the introduction of a new WLTP emissions testing regime in September. The Volkswagen Group, the world’s largest carmaker, expected global car demand to grow slightly in 2019, but forecasts stagnation for China, its largest and most profitable market. In the US and Europe, sales remain robust, while the trend among consumers to ditch sedans and hatchbacks for SUVs bodes well for the industry’s profitability. In fact, for an industry that normally only resorts to job cuts and closures in times of crisis, shedding these at the top of the cycle, when sales are strong, is highly unusual. “Something new is going on here”, said Max Warburton, an analyst at Bernstein. “Companies normally only restructure in the depths of crisis when there’s no alternative”. He suggested it indicated a greater focus on short term profits at the businesses, which is no bad thing in an industry that has seen shares decline over the past year as investors write off the sector’s chances of taking on cash-rich technology rivals in areas such as ride sharing and autonomous driving cars. The cuts made by JLR, Ford and GM can also be explained by internal problems at each business. Both Ford and Fiat Chrysler have already moved out of sedans in the US to focus on SUVs and pick-up trucks; GM was a laggard in this respect. Yet GM’s profits have improved because of the plant closures. It upgraded expectations for 2018 and said 2019 profits would climb further still because of the cost savings. “Earnings will benefit from the restructuring to the tune of $2 – $2.5 billion in 2019”, said GM chief financial officer Dhivya Suryadevara. In the US, the past 2 years have seen the market buoyed by natural disasters that led to the need for many thousands of cars to be replaced. Europe’s sales remain strong, but huge uncertainty stems from Brexit and a disorderly exit in March would send shockwaves around the continent that could knock confidence from consumers and companies. China’s market, whose 2 decade growth run has boosted the industry’s profit levels, has turned, with only government intervention likely to stem a fall. Even if all 3 markets hang on to their near peak levels for another year or so, the industry is soon likely to experience falling sales as the rising cycle can only go on for so long. At the same time as fighting off falling sales, carmakers will need to invest in new and expensive electric technology to meet CO2 emissions rules in Europe and sales mandates in China. When they do sell electric cars in greater numbers, they will make less money on them because of costly battery technology that consumers appear unwilling to pay for. Manufacturers based in the United States are also facing increased challenges. Ford and GM are both facing $1 billion of extra costs on their metals after tariffs on imported steel and aluminium led to domestic providers raising their prices. New rules replacing the Nafta agreement between the US, Mexico and Canada require greater use of parts made in North America, as well as a higher proportion of workers to be paid $16 an hour or above. And companies that set up their US operations as export bases, such as BMW in Spartanburg or Volvo in Charleston, are facing the prospect of having to re-purpose their facilities to serve the local market instead to counter Donald Trump’s proposed tax levies on imported vehicles. Structurally, the industry is also entering a drawn out period where cars without hybrid or electric features will dwindle, leading to a shift from internal combustion technology to battery power, and the need for a refreshed workforce with a different skillset. Add in the possible job losses from robotics and automation, and companies may be forced to make deeper cuts in the coming years. Analysts at Credit Suisse estimate the industry needs about 18 % fewer workers than currently employed. For most analysts, therefore, the coming downturn is not a question of ‘if’ but ‘when’.“There is a perfect storm coming”, said Philippe Houchois at Jefferies. “Fortunately, it is coming slowly enough so management teams are responding sooner”. +++
+++ MERCEDES-BENZ ‘ parent company Daimler has a lot on its plate these days, such as the expansion of the compact car family and the development of the EQ electric sub-brand. All this, however, are not enough to stop it from developing other products. They’re working on a brand-new supermini, which will slot under the A-Class and become their new entry-level model. Referred to as the ‘A-City’, it’s expected to be underpinned by a shortened version of the A-Class’ platform and be offered as a 3-door hatchback, although a 5-door body style could follow. It should have a starting price of approximately €26,000 in The Netherlands when it goes on sale in 2022, or about the same as the new Audi A1 and more than the Mini Hatch. If it gets approved for production, it could be followed by a small crossover one year later. Tentatively called the ‘A-Adventure’, the subcompact SUV will slot under the GLA and should get a raised ground clearance and plastic cladding. The introduction of the ‘A-City’ falls in line with the killing of the Smart brand. Mercedes-Benz could replace it with a supermini, a small panel van and an on-demand shared transportation vehicle. +++
+++ TOYOTA has begun production of its all-new Corolla hatchback and Touring Sports range at the firm’s UK manufacturing facility in Derbyshire, the Burnaston plant. The production of the Corolla, which remains the world’s best-selling car globally, will see European spec models arrive next month. The British government said the decision to produce the Corolla in the UK was “testament to our proud manufacturing heritage, the highly skilled workforce and leading innovation that sets our world-beating automotive industry apart”. The switch to the Corolla name marks the end of the Auris worldwide, and marks a return of the Corolla name to the European market after an absence of 13 years. It also marks the car’s switch to the brand’s Toyota New Global Architecture (TNGA) platform. The Corolla was revealed at the Geneva motor show with Auris badging, suggesting that Toyota made the decision about the car’s name after its Geneva reveal. It will be available with a choice of petrol hybrid engines, but no diesel option. Speaking at the reveal of the latest version of the small car, Toyota’s European boss, Johan van Zyl, said that the decision to axe a diesel variant was due to customer demand, noting that 41 % of Toyota’s European sales in 2017 were hybrid models. +++
+++ VOLKSWAGEN said it is investing $800 million to build a new electric vehicle at its plant in Chattanooga, Tennessee, as it shifts toward zero emission vehicles. The German automaker said it is adding 1,000 new jobs and that electric vehicle production in Tennessee will begin in 2022. German automakers have been under pressure from U.S. President Donald Trump to increase their investments in the United States. VW will use a modular electric toolkit chassis (MEB) in Chattanooga. VW designed MEB to be the basic building block for its EVs and is intended to consolidate all of the vehicle’s electronic controls and reduce the number of microprocessors. Volkswagen is building the first dedicated EV production facility in Zwickau, Germany, starting MEB production by the end of 2019. Volkswagen will add EV production at facilities in Anting and Foshan, in China, in 2020, and in the German cities of Emden and Hanover by 2022. “We obviously think electric vehicles are going to play a more and more prominent role”, said Tennessee Governor Bill Haslam, who took part in the announcement. +++