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+++ BMW will follow up the latest 3 Series with the launch of the 4 Series range later this year, and the first prototype images of the cabriolet variant have emerged. The shots of the drop-top 4 Series officially reveal that it will no longer adopt the folding hardtop roof layout of the current car, which will soon be phased out from BMW’s range. With the current 2 Series and new 8 Series Convertible adopting a cloth roof system, it’s not a huge surprise that BMW has elected to drop the folding metal roof for the second generation of the 4 Series. The decision also brings it in line with its closest rivals: the Audi A5 and Mercedes C-Class Cabriolets. Doing so reduces the complexity of engineering and producing an intricate folding hardtop system, and is likely to improve the long-term reliability that complicated folding hardtops are often criticised for. It will also reduce the car’s kerb weight, aiding handling, performance and fuel efficiency. With less mass to store underneath the bootlid when the roof is down, improvements in rear seat and luggage room are likely, too. Like the 3 Series on which it’s based, the 4 Series range will be larger, stronger and safer, but also lighter thanks to the adoption of the firm’s aluminium-intensive CLAR platform architecture. The 4 Series will, as before, feature a wider track and lower, wider body than the 3 Series, aimed at giving the desired sportier stance but also at improving body control. Expect a broadly similar engine range, beginning with 4-cylinder turbocharged petrol and diesel engine options covering the lower- to mid-section of the range, and topping out with straight-6 petrol and diesels on the 440i and 435d variants. A new M4 Convertible is also expected, thanks to the relative success of the outgoing model despite its 230kg weight deficit over the coupé (the new edition will only be 100kg heavier). That will use a newly developed 3.0-litre ‘S58’ motor producing up to 510 hp. As before, we’ll see a 4-door Gran Coupé version of the 4 Series. +++

+++ FORD and Volkswagen have signed a contract to co-develop a replacement for the Amarok pick-up. Ford’s mid-size Ranger will likely form the basis of any future platform, and may help Volkswagen reduce the costs associated with designing a replacement for the Amarok. The partnership could see a production model on sale by 2022. The agreement is the first to follow the German and American brands’ announcement of a ‘global alliance’, which could eventually expand to include electric and autonomous cars. The agreement is likely to involve Volkswagen developing a Van based on Ford’s Transit platform, and the 2 have also signed a memorandum of understanding to “investigate collaboration” on electric and autonomous vehicles and mobility services. Both companies have said they’re open to considering “additional vehicle programmes” in the future. Ford boss Jim Hackett said the alliance will “help both companies create value and meet the needs of our customers and society” and “give us the opportunity to collaborate on shaping the next era of mobility”. Volkswagen boss Herbert Diess added that the alliance “will be a cornerstone for our drive to improve competitiveness”. The alliance will be governed by a joint committee headed by Hackett and Diess and does not involve any cross-ownership between the 2 firms. 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”. Both Volkswagen and Ford are keen to introduce new electric vehicles to the European market, where strict regulations are being imposed on the development and sale of petrol and diesel vehicles. Volkswagen has previously stated its intention to produce 2-3 million electric cars by 2025. Ford and Volkswagen, alongside BMW and Daimler, are co-owners of the Ionity scheme, which is developing a network of ultra-fast charging stations across Europe. The alliance is not the first of its kind; last year, Honda invested $2.75 billion in General Motors’ self-driving division. The Japanese and American companies plan to challenge tech giants Apple and Google with a new range of driverless taxis. Established car makers around the world are beginning to shift their focus entirely to researching and developing zero-emissions and self-driving vehicles as global legislation aims to reduce pollution. +++ 

+++ GENERAL MOTORS (GM) opened its Asia-Pacific Headquarters in Korea, highlighting the automaker’s commitment to the country. The U.S. automaker held a ceremony at GM Korea’s main office, located at its Bupyeong plant in Incheon, to celebrate the establishment of the Asia Pacific Regional Headquarters, which will manage GM’s production, sales, marketing and finances for the region except China. GM International previously had a regional headquarters in Singapore. The ceremony was attended by: Barry Engle, executive vice president of GM; Julian Blissett, president of GM International; Andy Dunstan, managing director of GM who will head the Asia-Pacific office; Kaher Kazem, CEO of GM Korea; and 2 additional GM executives. Several Korean officials and politicians, including the Democratic Party floor leader Hong Young-Pyo, attended the ceremony as well. GM Korea labor union head Lim Han-taek also attended. GM Korea’s plummeting sales forced the company to shut down its production lines in Gunsan, North Jeolla, last year, which led to a long negotiation between the company and its labor union. “Since last year, we have made significant progress to fulfill our promises”, Engle said. “We are establishing the Asia-Pacific Headquarters here to utilize Korea as the core of our business efforts in the region”. The opening of the new regional headquarters indicates that GM is not giving up its presence in Korea, Engle said. The Korean government and GM signed an initial agreement in May last year to open the office amid speculation that the Detroit automaker was going to withdraw its operations from Korea due to low sales and its struggle with the labor union. GM has hired 100 new engineers for research efforts while increasing investment in its Bupyeong plant to develop and build more SUVs. GM Korea also cut the prices of its mainstay models, including the Impala, the Trax and the Equinox, by up to 3 million won in January. The carmaker plans to introduce 15 vehicles into the local market over the next 5 years. +++ 

+++ HONDA and Hino Motors are joining a venture of SoftBank Corp and Toyota that will develop self-driving car services in Japan, as alliances between automakers and tech firms broaden. Under an agreement, Honda and truck maker Hino, in which Toyota owns a majority stake, would each invest around 250 million yen ($2.27 million) in the joint venture, Monet Technologies, and take 10 % stakes in the venture, Monet said. Tech conglomerate SoftBank Group’s domestic Telco and Toyota formed the venture last year. It will foray in the ride-sharing sphere that is dominated by startups such as Uber, Didi Chuxing and Lyft. Honda and Hino’s participation in the venture highlights the challenges facing automakers in developing new transportation services as the rise of self-driving cars could threaten vehicle sales in the future with users seen opting for pay-per-use services over car ownership. It is also the latest example in the growing trend of consolidation among automakers and technology and communications companies as they grapple with the massive investment and software expertise required to develop new services for which demand has yet to be tested. “The more automakers we can get to join the partnership, the smarter we can make our platform”, Junichi Miyakawa, chief executive of Monet and chief technology officer of SoftBank said at an event to promote the venture. The new investment from Honda and Hino would leave SoftBank with a 40.2 % stake in Monet, down from just over 50 % when the venture was formed. Toyota will hold a 39.8 % stake. Toyota president Akio Toyoda said that increased cooperation between automakers and companies in other sectors would help make the mobility services industry more transparent. With the participation of Honda and Hino, “the auto world has taken a big step towards openness”, he said at the event. Honda’s investment in Monet will be its latest in new mobility services after it invested $2.75 billion for a 5.7 % stake in General Motors’ Cruise self-driving vehicle unit last year. The Japanese automaker, which has lagged many of its rivals in developing self-driving cars, is also an investor in Southeast Asian ride-hailing service Grab. SoftBank also invests in Cruise and Grab. The latest investment in Monet values the venture at just $22.7 million, for now making it a miniscule player compared with Cruise, which is valued at around $15 billion, and Uber, which has been valued at around $120 billion ahead of its expected IPO. For now the size of the venture is “insignificant compared with SoftBank Corp’s enterprise value”, said Dan Baker, analyst at Morningstar. The Telco is looking to diversify beyond its core cash-generative wireless business amid pressure on carrier fees. SoftBank Group and its $100 billion Vision Fund are already a major player in ride sharing. Founder and Chief Executive Masayoshi Son says his portfolio companies, which include Uber, Didi, Grab and Ola, control 90 percent of the industry. Monet plans to roll out on-demand bus and car services in Japan in the next year, and a platform to operate self-driving vehicles as early as 2023 based on Toyota’s e-Palette, a boxy multi-purpose vehicle which can be used for on-demand mobile shops, offices and other services. It plans to leverage data compiled from mobile phone users, including user location, and data on steering, braking and vehicle surroundings collected from Toyota cars to create a domestic platform to transport people and goods, along with mobile shops, restaurants and public facilities. Monet also said it had formed a consortium of 88 Japanese companies including Coca-Cola Bottlers Japan, beverage maker Suntory Holdings and Yahoo Japan to collaborate on projects, which could include product delivery or product-related services. +++ 

+++ HYUNDAI said Wednesday it will streamline its organizational structure for executives in an effort to revamp its corporate culture and introduce a more efficient management system. The company’s existing structure for executives will be reduced to 4 levels, with the director and vice president positions consolidated under the vice president title, leaving just the positions of president, executive vice president, senior vice president and vice president. The changes will be in effect from the start of next month. The company expects the changes to make its organization structure more flexible and place more responsibility with the executives. The organizational change is part of Hyundai’s efforts to improve corporate culture. It has relaxed its dress code and work schedule. The move also follows executive vice chairman Euisun Chung’s appointment as CEO of Hyundai Motor and Hyundai Mobis last week. Chung is expected to shake up the company’s management structure in a bid to accelerate succession from his father and group chairman Chung Mong-koo. +++ 

+++ JAGUAR LAND ROVER wants to use technology borrowed from the medical industry to build cars that help keep their occupants in good health. The company outlined how some of its future models could use ultraviolet light technology (UV-C) to kill germs, viruses, and allergens trapped inside a car. UV-C is not new or cutting-edge; it has been around for over seven decades. In hospitals, it’s used to disinfect water, filter air, and sterilize surfaces. Jaguar Land Rover wants to use it to zap the germs living inside a car’s climate control system to ensure air is clean before it makes its way past the vents. It sounds a little bit far-fetched and science fiction-esque, but it’s one of the technologies the group is currently experimenting with. While Jaguar Land Rover hasn’t revealed how soon we could see a UV-C-equipped car in one of its showrooms, it predicts demand for this kind of technology will increase when self-driving shuttles become more common. Passengers might not want to share a shuttle with three strangers at the height of a flu epidemic. However, it could also be installed in city buses, taxi cabs, and planes to stop germs from spreading in these environments. The UV-C technology is part of a broader research initiative at Jaguar Land Rover. The British company is seeking ways to turn its cars into a “tranquil sanctuary” where motorists can relax, regardless of whether they’re driving or being driven. +++ 

+++ NISSAN has told affiliate Renault Samsung it will only order the production of 60,000 cars this year, down 40 % compared to 2018, the Korean carmaker. Nissan has been Renault Samsung’s main client, accounting for half of its production volume. “Considering the unstable output at our factory in Busan”, where workers have staged a strike, “and other uncertainties, we were informed by Nissan that it had no choice to adjust production volume”, Renault Samsung said in a statement. Its contract with Nissan ends in September of this year, but it had expected orders to match last year’s volume until then. Renault Samsung produced 210,000 cars in 2018, but now output will fall to 170,000 this year, reducing the operating rate of the Busan plant from 87 % to 70 %, which is barely break-even point. Renault Samsung has yet to drum up production orders for a follow-up model for the Nissan Rogue (Qashqai) it has been making, mainly due to internal wrangles at Nissan that have led to production being moved back to Japan. Production of the new Renault XM3 for the European market, which was scheduled to be made at the Busan plant, could be handed over to the automaker’s plant in Spain. Renault Samsung CEO Dominique Signora recently flew to France to persuade management to keep production at the Busan plant but failed to get a firm answer. Unionized workers at Renault Samsung are demanding a wage hike and have downed tools 52 times over the last 6 months, causing an estimated W235.2 billion in lost production. +++

+++ In view of the bad feeling unleashed by Japan’s detention of Carlos Ghosn in November, one might have expected RENAULT to keep things quiet for a while. Ghosn was head of the giant Renault-Nissan automaking alliance and one theory for his downfall was that he was pushing too hard for a full combination of the French and Japanese companies. But now, Renault hopes to restart those merger talks with Nissan within 12 months and then launch a bid for another big automaker, possibly Fiat Chrysler Automobiles. This is surprising, to put it mildly. Seeking fresh discussions about a tie-up risks opening barely healed wounds in Tokyo. That Renault would even consider such a move suggests relations with Nissan have improved since Ghosn was ousted. But even more than that, it underscores the desperation of automakers as they try to respond to the industry’s epochal challenge: the hugely expensive shift to electric and automated vehicles. The history of automotive mergers and acquisitions has not been a happy one. Daimler’s takeover of Chrysler is but one of many failed marriages. So it’s remarkable how lively the automaker courtship rumor mill has been lately. PSA Group has reportedly approached Fiat. Volkswagen and Ford are trying to deepen a nascent partnership. And fierce rivals Daimler and BMW are teaming up in autonomous driving and car sharing. Elsewhere, Jaguar Land Rover’s heavy losses might put it in play, Daimler will form a joint venture to build Smart cars in China, and Ghosn courted Fiat when he was still Renault boss. One word explains all this frantic positioning: Scale. The more electric cars an automaker can produce, the less burdensome the investments in new technology and plants. The same goes for software, which will become even more pivotal (and costly) once cars drive themselves. It’s in the interest of both Nissan and Renault, then, to maintain their 20-year-old cost-sharing alliance. Unpicking it would be hugely expensive, especially now that key markets such as China and the U.S. are slowing down. But a full-blown merger is something else entirely. Surely they have enough problems to manage without attempting that. The immediate priority is embedding a new governance system at Nissan and the alliance, to replace the dominance of Ghosn. His departure helps, but the French and Japanese sides still have a long way to go to restore trust. In fairness, the alliance now has a new boss, the understated Renault Chairman Jean-Dominique Senard, who brings a more placatory approach. Nissan may be open to renegotiating the alliance’s capital structure if Senard proves reliable. But this is almost certain to be a fraught endeavor, regardless of the personalities at the top. Unpicking a clearly unbalanced cross-shareholding structure (Renault holds 43 % of Nissan, whereas the more profitable Nissan owns 15 % of Renault) is a delicate enough task in view of the French state’s stake in Renault. Trying to then agree merger terms that both parties consider fair would be harder still. If you take away its holding in Nissan, the stock market ascribes little value to Renault’s own automaking operations. Meanwhile, these deliberations would be taking place at the same time as Ghosn’s trial, which will no doubt be a huge distraction for both companies in the coming months. And what of FCA? Its U.S. pickups and SUV profits are attractive, but does the Renault-Nissan alliance (which includes Mitsubishi) really need to get any bigger? It already sells more than 10 million cars a year. That’s on a par with industry giants Volkswagen and Toyota. If you think the politics of Nissan and Renault are thorny, just try to add FCA’s Italian and American mix. Another French automaker, the less geographically diverse PSA, is more in need of an international dance partner like Fiat. France also owns a stake in PSA. There’s also the problem of job cuts at a time of rising populism. It only makes sense for automakers to consolidate if they’re willing to close excess capacity and share resources. Merge or not, the car industry will probably shed thousands of jobs over the next decade: Building an electric car is about 30 % less labor intensive than a combustion engine model. As such, you can see why companies will consider even the most impossible-looking deals. That does not mean they can be done. +++ 

+++ SEAT will introduce 6 electric and plug-in hybrid models by 2021 and lead development on an entry-level electric car following a record 2018. The Spanish manufacturer’s electrification strategy will begin with an electric version of the Mii later this year. The el-Born electric car will then go on sale in 2020, following the Volkswagen ID.3 hatchback and becoming the second Volkswagen Group model to use the MEB platform. Seat has also confirmed that the next-generation Leon and the Tarraco will receive plug-in hybrid variants. The Tarraco recently went on sale and indicates the design direction of future Seat models, while the 4th-generation Leon is expected to make its debut later this year ahead of going on sale in 2020. Performance sister brand Cupra will also add electrified models to its line-up. It has already confirmed that its first non-Seat-derived model, the Formentor SUV-coupé, will feature a plug-in hybrid powertrain. It will also offer a plug-in hybrid versions of the Cupra Leon. Cupra is set to expand its range to 7 model by the end of 2020, with the Formentor due to be built at Seat’s factory in Martorell, Spain. Seat had previously confirmed that 2 electric models would arrive by 2020, but the brand has, along with the rest of the Volkswagen Group, accelerated its plans for electrification. Seat’s strategy also includes the Minimó urban mobility concept revealed ahead of this year’s Geneva motor show. It will lead development on micromobility for the entire Volkswagen Group. The brand used its annual conference to reveal record figures for 2018, with post-tax profits of €294 million; a rise of 4.6% over the previous year and the best result in Seat’s 68-year history. Operating profit grew by a significant 93.2 % to €223 million. A turnover of €9.991 billion was 4.6% higher than in 2017 and has grown by 33 % over the past 5 years. Of that figure, €1.223bn was allocated to investment and research in development, a 27 % rise over 2017 and the highest in company history. Seat delivered more than half a million cars in 2018 to become Europe’s fastest-growing automotive brand. The 10.5 % gain over the previous year equated to 517,600 vehicles sold, bolstered by the popularity of the Arona and Ateca. That number places Seat behind Skoda (1.2 million vehicles sold), Audi (1.8 million) and Volkswagen (6.2 million) in terms of overall Volkswagen Group sales. Seat is also targeting a sub €20,000 price for a forthcoming entry-level electric car that will be based on a smaller version of the MEB platform. In a first for the brand, Seat will lead development in collaboration with Volkswagen. Resulting models will be around 4 metres in length and rolled out across other Volkswagen Group brands. “2018 was the best year in the history of Seat”, company CEO Luca de Meo said. The brand saw a 6th year of consecutive growth, fuelled by the continued popularity of the Leon and Ibiza, as well as the addition of SUV models to the line-up. “One of every 3 Seats sold in 2018 was an SUV”, de Meo added. “We had none 3 years ago. A big part of the growth was explained by our SUV offensive, which is working beyond our realistic expectations”. The Ateca has already become the brand’s 4th most popular model, despite supply restrictions at launch, and the introduction of the high-end Tarraco will allow Seat to stretch its line-up more towards a premium offering than ever before. The Leon is still Seat’s top-selling car, with more than 158,000 units sold. The second most popular model, the Ibiza, sold more than 136,000 units in 2018. Germany is Seat’s largest market, with over 114,000 cars sold there in 2018. The brand’s home Spanish market saw 108,000 sales, while the UK set a new record with 63,000 sales. Establishing Cupra as a standalone brand also helped boost sales, with 14,400 cars sold in its first year of independence. Of Seat’s production output for 2018, 80 % was exported, making the brand Spain’s largest industrial exporter, accounting for almost 3 % of the country’s total exports. The Martorell factory produces the Ibiza, Arona and Leon, as well as the Audi A1, and builds more than 2.300 cars per day. Seat is aiming to continue its global expansion in 2019, starting with North Africa, where it will lead the Volkswagen Group’s vehicle assembly project in Algeria. It’s also targeting Latin America, with plans to start operating in Chile later this year. China, the world’s largest car market, is the brand’s biggest opportunity for growth. Seat is already part of the JAC-Volkswagen joint venture and is preparing to enter the Chinese market soon. It’s also targeting software as a way to gain an edge over rivals, by integrating its existing Metropolis:Lab hub in Barcelona with other Seat companies including Xmoba. It will focus on mobility schemes, including ride sharing and on-demand buses. The pressure to reduce emissions and switch to electrification will prove tough, not just for Seat but the industry as a whole, according to de Meo. “It will be a hard proving ground for many before a new era of automotive can blossom again. The next 2 or 3 years will be challenging, but the next ten will probably be fantastic, for the whole industry”. “There’s no alternative to electricity to cut emissions and make mobility CO2 free”, VW Group chairman Herbert Diess said. “We are aligning the group with e-mobility like no other company in our industry”. The group’s vehicles are responsible for 1 % of all transport-related emissions worldwide, and it is committed to becoming carbon neutral by 2050. The Group is investing in charging infrastructure, but the current situation was described as ‘chicken and egg’ by de Meo. “The infrastructure leaders are waiting for us to prove electric cars work, and we are saying if we don’t have the infrastructure we can’t sell enough cars. Clearly there will be a market, as we have emissions targets to meet, and will sell cars that need to be charged. It will happen”. +++ 

+++ This year’s SEOUL MOTOR SHOW is focusing on green cars as sustainability becomes a key issue in the global auto industry, especially in Seoul where the sky has been gray with dust for months now. Automakers from home and abroad headed to the motor show to show off their own approach to solving environmental issues linked with cars. While the spotlight was mostly on electric vehicles (EVs) and hybrids, new concept cars and the latest SUVs were also on display. Hyundai, Korea’s largest automaker by sales, added an eco-friendly twist to its 8th generation Sonata sedan launched last week. The carmaker unveiled the hybrid version of the mid-sized sedan; a version that has not yet been launched. The hybrid model comes with a so-called solar roof. “Through solar panels on the roof, it produces power and charges the battery not only during daytime driving but also when it is stopped”, said Lee Kwang-guk, executive vice president of Hyundai. While not a completely new technology overseas, its implementation is the first in Korea. The automaker claims that the tech will allow the sedan to drive further. “By using the energy created from the solar roof, it’s possible to drive around 1,300 kilometers a year”, added Lee. Hyundai also said it has ramped up the fuel efficiency of the hybrid Sonata from its previous-generation hybrid by 10 %, adding that it is aiming to reach an efficiency of 20 kilometers per liter with the latest hybrid expected to roll out on the Korean market in June this year. Toyota’s premium brand Lexus showcased its new UX that strengthens the brand’s hybrid-dominant lineup. “With the worsening levels of fine dust recently, interest in hybrids has been growing”, said Lee Byung-jin, managing director at Lexus Korea. “While it was good to be eco-friendly before, we have now reached the age of eco-necessity”. Hybrid vehicles made up 94 % of the automaker’s sales last year in Korea. The eco-friendly theme also extends to the German automakers. Mercedes-Benz unveiled its Vision EQ Silver Arrow electric concept car for the first time in Asia at the show and will also display its all-electric car, the EQ C throughout the show. BMW is also featuring its electric concept at the show through ‘i Vision Dynamics’, emphasizing the automaker’s move toward an electric future. Prior to unveiling a series of new vehicles for the Korean market such as the new X7, BMW Group board member Pieter Nota apologized for the series of recalls last year after numerous BMW vehicle’s burst into flames. “We are truly sorry for the current concern and inconvenience that some of our vehicles have recently caused”, said Nota, making a slight bow. “We are deeply committed to doing everything we can to regain the trust of our customers here in Korea”. Tesla, which made its first appearance at the event, unveiled its long-awaited Model 3 along with the Model S and Model X for the first time in Korea. A spokesperson for Tesla said local deliveries of the Model 3 are expected to start from the 4th quarter this year. It has been roughly 3 years since the carmaker started getting preorders for the car in 2016, and local fans’ patience has been growing thin. “The 4th quarter is our goal at the moment, but there can be changes”, the spokesperson said, being cautious of potential delays. The press officer added that the delivery will be made in the order of final order confirmations, the step after preorders. While it is rare for Tesla to exhibit at motor shows in general, the press officer said: “It is a rare occasion, but Tesla decided to join as the focus of this year’s event on green cars met well with the vision of Tesla”. Apart from eco-friendly vehicles, many SUVs were unveiled at the event as the SUV market continues to grow. Kia introduced its Mohave Masterpiece concept car and SP Signature concept car for the first time. A muscular diesel-powered Mohave (an SUV) modeled off the unveiled concept will launch in the local market by the latter half of this year, according to the automaker. The SP Signature, a concept for a small luxury SUV, is also preparing to launch in the second half of the year. Kwon Hyug-ho, head of local sales for Kia, said the company hopes to become an SUV specialist with this strengthened lineup. Renault Samsung Motors unveiled its XM3 Inspire show-car at the event. The company’s CEO Dominique Signora said the crossover SUV, which has the look of both a sedan and SUV, will be produced in the carmaker’s Busan factory. When asked if the XM3 succeeds the existing SM3 sedan, he said, “It’s a completely new model and the first crossover SUV from Renault Samsung Motors”. The company said customers will be able to see the Busan-made XM3 Inspire by the first half of 2020. GM Korea unveiled the large SUV Traverse and pick-up truck Colorado and said they will be released in the local market in the second half of the year. The large SUV is expected to battle with Hyundai’s recently-released Palisade. SsangYong Motor focused on introducing its latest Korando, which rolled out last month. Instead of elaborating on car specs, the company laid out its future vision related to SUVs. SsangYong does not have any EV or hybrid models yet. +++