+++ The all-electric Nissan ARIYA will likely spawn a larger electric SUV from the automaker. Underpinning the Ariya is Nissan’s new CMF-EV architecture and while recently discussing this platform, Nissan Europe’s EV boss Helen Perry confirmed it will be used for other vehicles. “The platform will be used for other cars in the future”, she told. “The C-SUV and D-SUV segments are due to grow about 300 % over the next 3 years so we will look to use the platform in growth segments in the next few years”. Perry failed to provide any more specifics about how Nissan will use this platform in these “growth segments” and was also unclear on when the next all-electric Nissan could hit the market. “It all depends on the demand of the customer”, she said. “If we’d bought Ariya to market earlier, I’m not sure customers would have been ready for it. Technology wouldn’t have been as up to date as it will be at launch. And while Covid-19 has been terrible, it has made customers review what is important: for example, emissions”. The Nissan Ariya has been announced in a host of specifications with varying powertrain options. Sitting at the top of the range are 2 variants that each use a 90 kWh battery. The first combines this battery with a single electric motor delivering 242 hp and 300 Nm, and will be good for 379 miles 610 km on a charge. The second model couples this battery with two electric motors delivering 393 hp and 600 Nm. This variant has a range of 580 km. In all likelihood, the same battery pack and electric motors would be offered for the larger Nissan electric SUV. +++
+++ According to DAIMLER boss Ola Källenius, his company is considering expanding its partnership with Renault with regards to sharing more electric vehicle technology. Källenius stated that Daimler and Renault have been talking about possible areas of cooperation, with electromobility being one of them. The 2 companies have been doing business for the past 10 years, resulting in products such as the Navara-Based Mercedes X-Class. “We are open for new projects as long as everyone profits from it”, said the Daimler CEO during its company’s annual shareholders meeting. He added that the upcoming fully-electric Citan is a “concrete” example of how this relationship can be very beneficial. Mercedes is also adding a brand new small van to its range, dubbed the T-Class. “Based on this small van platform, 2 vehicles will be created: while the Citan is a no-compromise vehicle tailored to the requirements of commercial customers, the T-Class is primarily focused toward private customers”, said the carmaker in an official release. “The T-Class and the Citan will be established in cooperation with Renault-Nissan-Mitsubishi”. The German brand will however be ending its cooperation with Renault as far as its Smart minicars are concerned. Future Smart models will be built in China by a joint venture with Geely, which owns a 9.69 % stake in Daimler; its largest single shareholder. Current EV variants of the Smart ForFour and ForTwo utilize the same technology as the Renault Twingo Z.E. Daimler’s pension funds own stakes of 3.1 % in Renault and 3.3 % in Nissan, while the latter 2 each hold 1.54 % in Daimler. +++
+++ Deloitte has predicted that a third of all new cars sold globally will be ELECTRIFIED by the end of the decade, citing a radical shift in consumer sentiment. The firm estimates that 31.1 million electrified vehicles will be sold per year by 2030; 10 million more than it forecasted in 2019. The peak of petrol and diesel vehicle sales, it says, is likely to have occurred during the coronavirus pandemic. Although it expects the global car market not to return to pre-pandemic levels until 2024, electrified vehicle sales, it says, are predicted to reach 2.5 million in 2020. Applying a compound annual growth rate of 29 %, this should increase to 11.2 million in 2025 and 31.1 million by 2030. By this point, EVs will account for some 81 % of all new electrified cars sold. Deloitte attributes the disparity between its 2019 forecast and this latest prediction to various factors driving growth and the gradual dissipation of obstacles that previously discouraged drivers from making the switch, among them the increasing affordability of mainstream EVs. Jamie Hamilton, Deloitte’s head of EVs, said: “The price premium attached to many electric vehicles restricted some early adopters but, as the cost of EVs have converged with petrol and diesel equivalents, the pool of prospective buyers is set to increase. A wider range of new electric vehicles, combined with a growing second-hand market, means EVs are becoming a more viable option for many”. Additional factors encouraging EV adoption include various government-backed financial incentives, stricter emissions targets and a more comprehensive array of models on the market, including SUVs, saloons, sports cars and superminis. Despite this, Deloitte notes that would-be electric car buyers are still held back by comparatively low ranges and a perceived lack of charging infrastructure. A Deloitte survey of UK drivers found that half would consider an EV as their next car, but that 33 % cited the UK’s still-growing charging infrastructure as their biggest concern. +++
+++ Export expectations in the manufacturing sector of Europe’s largest economy rose in July, with the automotive industry among the biggest winners, the Ifo institute said, in a boon for a sector that has been hit hard by the coronavirus pandemic. The car industry, spearhead of GERMANY ’s export-driven economy, has taken a beating from the pandemic that halted production at some sites during a lockdown that came as companies were already struggling to shift away from diesel- and petrol-powered cars toward “green” electric vehicles. The Ifo institute said its index tracking export expectations in the manufacturing sector rose to 6.9 points in July from -2.2 the previous month thanks to an economic recovery in many countries. “Cautious optimism is spreading among German exporters”, Ifo said. “The automobile sector is one of the biggest winners. After some very tough months, the export business should pick up again”. Daimler last week flagged signs of recovering demand for top-end Mercedes-Benz models and electric vehicles and Volkswagen has said it expects slight growth in China’s premium car segment this year. BMW also posted higher second-quarter China sales. A monthly survey conducted by Ifo had shown business morale continued to recover in July from its biggest decline in decades, with companies the economy to rebound from the coronavirus shock, as long as a second wave of infections is avoided. Nonetheless, the German economy is expected to have plunged by double digits in the 3 months from April to June, when public life and economic activity came to a near halt because of the pandemic. Ifo said that chemical and electronics companies were feeling more upbeat about their prospects of shipping goods abroad while the mechanical engineering sector became less pessimistic even though sales are not expected to rise. +++
+++ HYUNDAI confirmed it is seeking to acquire General Motors’ production facility in St. Petersburg, Russia. “We are discussing acquisition of the plant with GM”, a Hyundai official said. The South Korean carmaker has sought approval from the antitrust agency in Russia, an essential measure to take over the factory. The agency will decide on granting permission if it does not violate the law. The St. Petersburg plant opened in 2008 with an investment of about $300 million by the US-based automaker. However, operations were suspended in 2015 in the wake of Russia’s economic slump. Hyundai has run an automobile production plant in St. Petersburg with an annual production capacity of 230.000 units since 2011. It produces locally customized models such as the Solaris, the compact cross-over Creta and the Kia Rio. Alongside Hyundai, Belarusian-British automobile company Unison and Germany’s BMW are also reported to be interested in acquiring GM’s plants. According to Russian media reports, Unison received permission from the antitrust agency last year, but negotiations have not progressed since then. Hyundai confirmed that it has requested acquisition approval with Russia’s antitrust body, the Federal Antimonopoly Service (FAS), for its intended purchase of GM’s manufacturing plant, which has been shut down since 2015. GM’s Russia plant was first established in 2008. At the time, its manufacturing capacity was 98.000 units per year. The Chevrolet Cruze and Trailblazer were among the models that used to be assembled there. In 2015, however, GM shut the plant down as the local economy was experiencing a drastic slowdown due to low oil prices. GM had also shifted its growth to qualitative rather than quantitative, and had started to withdraw from unprofitable markets. Hyundai and its smaller affiliate Kia, on the other hand, have been working to cement their position in Russia’s auto market. Last year, they together sold the most cars in Russia (404.710 units), outperforming local manufacturer Avtovaz which sold a total of 362.356 units. In the first half of this year, Hyundai and Kia again topped the chart by selling 145.071 units despite unfavorable business conditions due to the coronavirus pandemic. “The latest acquisition is a move to solidify Hyundai’s leading position in Russia”, said Lee Hang-ku, a senior researcher at the Korea Institute for Industrial Economics and Trade. “It is likely the newly acquired factory will be used to manufacture mid- to large-sized SUVs such as the Tucson since Hyundai’s existing factory is dedicated to making small cars”. Hyundai initially had planned to launch its Tucson in Russia this year, but the timeline was tentatively delayed due to Covid-19. Although Russia’s auto market has faltered lately, it is considered to have a huge amount of potential. After experiencing a drastic slowdown in 2015, it was on a constant uptrend, selling a total of 1.4 million in 2016, followed by 1.5 million and 1.8 million in 2017 and 2018. Last year, it sold 1.7 million cars. “After hitting the bottom in April, Russia’s industrial demand as well as Hyundai’s sales has been recovering thanks to aggressive support from the government”, Kim Sang-hyun, chief financial officer at Hyundai, said during a conference call. “In the latter half, the company will expand market share and defend profitability with the Creta at the center”. Hyundai’s auto parts manufacturer affiliate Hyundai Wia is also building its own engine-making factory in St. Petersburg. Earlier this month, Hyundai Wia broke ground to build a factory that can manufacture engines for 240.000 cars starting from October 2021. +++
+++ HYUNDAI, an early backer of hydrogen cars, has watched the electric rise of Tesla, including on its home turf. Now’s it’s going on the offensive in the battery-powered market led by its U.S. rival. the South Korean company plans to introduce 2 production lines dedicated to electrics vehicles (EVs): one next year and another in 2024, according to an internal union newsletter. Euisun Chung, leader of the Hyundai Motor Group conglomerate that also includes Kia, has also held a series of meetings since May with his counterparts at Samsung, LG and SK Group, which make batteries and electronic parts. The purpose of the talks, which were publicly announced, was for Hyundai to try to secure batteries at a time of tight supply as the race for EVs intensifies, according to several industry sources. Those manufacturers also supply the likes of Tesla, Volkswagen and General Motors. Hyundai told it was collaborating with Korean battery suppliers “to scale up” its electric car production efficiently. It declined to comment on any plans to introduce dedicated production lines. The moves indicate the carmaker is moving aggressively to expand its electric capacity, days after Chung announced on July 14 that the Hyundai Motor Group aims to sell 1 million battery EVs a year and grab a global market share of over 10 % by 2025. There’s some way to go: the Hyundai Motor Group sold 86.434 battery EVs last year, according to data from industry consultant LMC Automotive. That was above the 73.278 sold by Volkswagen Group, but behind the 367.500 delivered by Tesla. Hyundai, the world’s No.5 automaker together with Kia, said its agility allowed it to lead the charge into EVs. “We are certain Hyundai is never going to fall behind”, it added. A senior Hyundai insider, who declined to be identified because of the sensitivity of the issue, said the company had not been concerned about Tesla when the Silicon Valley company was producing high-end cars. But it became more worried when Tesla brought out a cheaper Model 3 in 2017, according to the insider who described it as a “strategic victory”. No traditional automaker has been successful yet in catching up with Tesla, which retains an edge in battery and software technology. Hyundai could also face a roadblock from its powerful union, which is worried about job security as EVs require fewer components and workers than gasoline vehicles; at Hyundai, this is partly because the automaker makes a number of key components for conventional cars in-house, while many EV parts are outsourced at present. The union is pushing for the company to assemble key EV components, like battery packs and motors, in-house to offset any reduction in workforce. “We are not opposed to EV business. Kodak went bankrupt because it stuck to film even as the industry was shifting to digital photography”, union spokesman Kwon Oh-kook told. “We just want to protect the jobs of our members”, he said. Hyundai said automakers and unions needed to accelerate change to remain viable in the long term. Back in 2010, Hyundai made 230 electric cars for the government, but they ended up being mothballed at a research center outside Seoul due to a lack of charging infrastructure, according to Lee Hyun-soon, R&D chief at the time. In a 2014 book Lee, who developed South Korea’s first gasoline engines, said such electric vehicles were “not realistic”, also citing high battery costs, and that hydrogen cars (a rival clean technology) offered a “bright” future. Along with Toyota and Nikola, Hyundai was one of a few automakers to have backed hydrogen cars. It launched the industry’s first mass-produced hydrogen car, ix35 Fuel Cell, in 2013 and the Nexi in 2018. However the technology has not taken off: 7.707 hydrogen fuel cell cars were sold globally last year, compared with 1.68 million battery EVs, according to LMC Automotive. In Hyundai’s home market, Tesla had its best month in June, with its Model 3 beating Hyundai’s Kona Electric, as well as premium models from BMW and Audi. “Hyundai did not expect Tesla to dominate the EV market so quickly”, another person familiar with the company’s thinking told. Hyundai has a market capitalization of about 25.3 trillion won ($21.2 billion); less than a tenth of that of Tesla, now the world’s most valuable automaker. While Hyundai promotes its hydrogen cars with K-pop boyband BTS, it only plans to introduce up to 2 hydrogen models by 2025 and 23 battery-powered models. Peter Hasenkamp, vice president at electric startup Lucid Motors, who previously worked at Tesla and Ford, said established carmakers faced historical “inertia” to make the EV transition. “Part of the reason we’re based in Silicon Valley is to leverage both software and electrical engineering expertise”, Hasenkamp told. “You’ve got a couple of generations for the big car companies to learn really how to do this well. It is a lot harder than they thought it was”. +++
+++ Ex-Renault CEO Thierry Bolloré has been announced as the new CEO of JAGUAR LAND ROVER , replacing Ralf Speth. The Frenchman will assume his new role on 10 September, following his dismissal from Groupe Renault’s board of directors in October last year. Reports at the time suggested Renault was aiming to distance itself from disgraced former chief Carlos Ghosn and that Bolloré had a difficult relationship with bosses at partner brand Nissan. The appointment was announced by Natarajan Chandrasekaran, chairman of JLR parent company Tata, who said: “I’m delighted to welcome Thierry to Jaguar Land Rover. An established global business leader with a proven track record of implementing complex transformations, Thierry will bring a wealth of experience to one of the most revered positions in the industry”. Speth, who recently announced his departure from the CEO role after 10 years at the helm, will assume the role of non-executive vice chairman of JLR. Bolloré brings more than 30 years of experience to his new position, having previously held management roles at tyre manufacturer Michelin and parts manufacturer Faurecia before joining the board at Groupe Renault in September 2012. He was named CEO on 24 January 2019 but served for only 10 months before being ousted in a surprise management shake-up. During his brief tenure, he was keen to explore the possibility of a partnership with Fiat Chrysler Automobiles, telling: “We need scale”. Talks broke down in June 2019, however, with the French government unwilling to dilute its share in Renault and Nissan accused of obstructing talks. Commenting on the news, Bolloré said: “Jaguar Land Rover is known around the world for its peerless brand heritage, exquisite design and deep engineering integrity. It will be my privilege to lead this fantastic company through what continues to be the most testing time of our generation. Renowned for their passion and spirit, the people of Jaguar Land Rover are the driving force behind its success. I couldn’t be more excited to join the team continuing to shape the future of this iconic company”. +++
+++ MASERATI has previewed new Trofeo range-topping performance versions of the Ghibli and Quattroporte in an image posted to its social media accounts. The models, set to be revealed on 10 August, take after the Levante Trofeo, which touched down as a rival to the Porsche Cayenne Coupe Turbo in 2018. While little is known about the models at this stage, we can expect the new models to feature similarly aggressive styling to the Levante Trofeo. That car is marked out by large wheels and bonnet vents, as well as an ‘F1-inspired’ rear diffuser, so expect the Ghibli Trofeo and Quattroporte Trofeo to adopt similar cues. Under the bonnet, the Levante Trofeo has the same Ferrari-derived 3.8-litre V8 as the Levante GTS. If this same engine will be rolled out to the new vehicles, the duo will generate 580 hp. Interior revisions are also likely to feature. The Levante Trofeo has high-backed sports seats with Trofeo logos stitched into their headrests, for example, alongside carbon fibre inserts. While there’s no news yet on how much the Ghibli and Quattroporte Trofeos will cost, as the range-topping variants of their respective line-ups, buyers should expect a significant premium over the starting price of the Ghibli S and the Quattroporte S. +++
+++ MERCEDES-BENZ plans on killing off at least 7 of its car models in the United States. While speaking during a webinar in late June with dealers, Mercedes-Benz USA chief executive Nicholas Speeks confirmed that the company’s range would be reduced. While Speeks didn’t specify which models are on the chopping block, sources have a good idea of what will be axed. Coupe and convertible versions of the C-Class, E-Class and S-Class will all be dropped from the U.S. range. In addition, one of the brand’s AMG GT models will be axed, as will the CLS. Vice president of AutoForecast Solutions, Sam Fiorani, has suggested that the sportier styling of new sedan models has essentially made Mercedes-Benz’s Coupe models redundant. “With the added utility of rear doors and a fully usable back seat, sedans have made 2-door models redundant”, he said. “2-door coupes and convertibles now only appeal to a handful of buyers who find the extra openings offensive. These buyers are slowly moving to sedans or SUVs, or aging out of personal vehicles altogether”. Greg Gates, the vice president of Swickard Auto Group which operates 3 Mercedes-Benz dealerships, added to this by saying there simply aren’t many customers who are in the market for coupes and convertibles. Details about which GT model will be culled are unclear. However, Fiorani claims the GT 4 Door will be discontinued at the end of the current model’s lifecycle in 2023 because it competes for customers in the same price range as the CLS and S-Class, impacting profits. Overall, Mercedes-Benz is looking to reduce complexity and cost within its U.S. range. The owner of Mercedes-Benz of New London in Connecticut claims that the brand’s product expansion in recent years has actually made it difficult for consumers to differentiate between models. “Reducing model proliferation is good. We’ve been asking for that”, he said. “Whether or not 7 models is enough, time will tell”. +++
+++ MITSUBISHI reported a 176 billion yen ($1.7 billion) loss for April-June, and forecast more red ink for the fiscal year, as the coronavirus pandemic slammed auto demand around the world. The Japanese automaker had posted a profit of 9.3 billion yen for the fiscal first quarter the previous year. Quarterly sales shrank 57 % to 229.5 billion yen ($2.2 billion). The maker of the Outlander expects to chalk up a 360 billion yen ($3.4 billion) loss for the fiscal year through March 2021, because of the fallout from the outbreak. The shaky results come as Mitsubishi’s alliance partners Nissan and Renault work to recover from the downfall of their former chairman, Carlos Ghosn. Mitsubishi has denounced Ghosn. Mitsubishi officials, in a news conference relayed in a call to reporters, promised a turnaround, pursuing growth in Southeast Asian markets, where its profitability is relatively strong, and building on its strength in 4-wheeldrive and “off road performance”. They said they expect the company’s results to recover next fiscal year, once Covid-19 is brought under control. Product development will leverage “synergies” with alliance partners, and labor costs will be cut through pay cuts, hiring freezes and voluntary retirements, the automaker said. Tokyo-based Mitsubishi also said it’s working on innovative technology, such as improved diesel engines, electric vehicles and autonomous driving. Its electric vehicles are a strength as environmental standards continue to toughen, especially in major markets like China, it said. But it warned the outbreak’s impact on auto demand was worse than what the auto market suffered during the 2008 financial crisis and so a recovery will take time. It confirmed it is ending production of Pajero sport utility vehicles, under a restructuring strategy set before the outbreak hit. +++
+++ NISSAN warned of a record $4.5 billion operating loss this year and its lowest sales in a decade as the Covid-19 pandemic hampers its turnaround efforts. Japan’s No.2 carmaker is battling to recover from a rapid expansion that has left it with dismal margins and an ageing portfolio, as well as revive its alliance with Renault that was rocked by the arrest of long-time boss Carlos Ghosn. But the virus pandemic and associated plunge in demand has taken a heavy toll on the car industry, with Nissan reporting a second straight quarter of operating losses. The company forecast an operating loss of 470 billion yen ($4.5 billion) for the year to March 2021, much larger than analysts’ consensus estimate for a 262.8 billion yen loss. That would be the second annual loss in a row. The maker of the X-Trail and the Leaf also warned revenue would likely plunge by a fifth to 7.8 trillion yen this year, with vehicle sales falling to an 11-year low of 4.13 million from 4.93 million the year before. Adding to expected losses is a likely deterioration in Nissan’s sales financing business as cash-strapped customers struggle to make lease payments, while underutilised factories are also burning through cash. “The market outlook remains uncertain and we may see a further deterioration in demand due to a possible second wave of the pandemic”, chief executive Makoto Uchida told a livestreamed briefing. “Fiscal year 2020 will be a challenging year in terms of profitability and free cash flow”, Uchida said, adding Nissan would not issue a dividend this year. Still, Nissan said it expected to cut more than 150 billion yen this year from costs related to marketing, selling and depreciation; roughly half its target to cut 300 billion yen from its fixed costs by March 2024. In an attempt to revive its fortunes, Nissan unveiled a far-reaching restructuring plan in May that calls for a dramatic reduction in production lines and its vehicle model range. In the first quarter of this financial year, it made an operating loss of 153.9 billion yen, following a loss of 94.8 billion yen the quarter before. Global sales tumbled 48 % to 643.000 vehicle in April-June as sales halved in North America and fell 40 % in China. While demand in the United States remains weak due to the pandemic, Nissan said the proportion of retail sales was increasing as it shifts away from years of highly discounted fleet sales. As a result, each car sold in the United States resulted in an increase in revenue of more than $700. Nissan said it had secured more loans and issued debt in the past two months to boost liquidity to cope with the virus crisis, resulting in an untapped credit line of around 1.9 trillion yen at the end of June. But free cashflow at its automotive business has deteriorated to minus 815.7 billion yen, as it burns through cash to keep its plants running, with many of them yet to return to normal production levels. As global output normalises, chief financial officer Stephen Ma said he saw a “pretty good chance” that free cash would turn positive in the second half. +++
+++ PEUGEOT has announced that Matthias Hossann will take over from Gilles Vidal as its head of design. The Frenchman will be replaced after 10 years at Peugeot and more than 20 years at the PSA Group, having joined Citroën in 1996 as a designer. PSA hasn’t commented on the reason for Vidal’s departure. Vidal designed Peugeot models such as the latest 2008, 3008 and 5008, as well as the new 208 and the 508. He is widely credited with transforming Peugeot’s fortunes since he joined the firm in 2010, introducing sharper designs. The man who will replace him is currently head of concept vehicles at Peugeot, having taken the post in 2013, following a 5-year stint in Citroën and DS’s Shanghai design studio. Hossann is best known for the 2018 Peugeot e-Legend concept, inspired by the classic Peugeot 504 Coupé and which will influence future Peugeots. He also helped Vidal design the latest 208 and 2008. +++
+++ PSA Group boss Carlos Tavares says that the car giant is on track to rebound strongly from the coronavirus pandemic in the second half of 2020, after posting a profit in the first 6 months. The French firm, whose brands include Citroën, DS, Peugeot and Opel/Vauxhall, was hit by disruption and lockdowns. Its global sales of 1.033.000 from January to June 2020 were down 45.7 % from the 1.903.000 vehicles sold in the same period last year. Despite that, PSA still posted a profit of €595 million for the first half of 2020, although that was sharply down on the €1.83 billion profit for the same period of 2019. Tavares said: “This result proves the Group’s resilience, as a reward of 6 consecutive years of intense work to increase our agility and lower our breakeven point. The Group is also weathering this crisis thanks to the commitment of the teams, focused to deliver a clean, safe and affordable mobility for our customers”. The PSA profit result is stronger than those of some rival firms, which financial analysts partly attributed to Tavares-led efforts to reduce production costs. Tavares also said that, following the lifting of lockdown restrictions in Europen sales in June and July, showed the firm was on track for a strong rebound, with orders books in an “excellent” position. Tavares also reiterated that PSA’s merger with Fiat Chrysler Automobiles (creating a new company named Stellantis) is on course to be completed by the end of the first quarter of 2021. +++
+++ SSANGYONG continued to make a loss in the second quarter despite the automaker’s all-out effort to turn a profit by cutting down labor costs and downsizing welfare expenses. A lack of new models and unfavorable business conditions due to the coronavirus pandemic factored into the automaker’s 14th consecutive quarter without turning a profit. The Korean unit of Indian auto giant Mahindra said July 27 that it recorded 215.8 billion won ($180 million) of operating losses in the first half of this year, which is 180.5 % more than the loss made in the first half of last year. In the second quarter alone, operating losses were 117.1 billion won; a 138.4 % jump on year. Its net loss also expanded from 77.6 billion won in the first half last year to 202.4 billion this year, which is a 160.9 % year-on-year jump. The company sold 49.419 cars in the first half; down 29.7 % from 70.227 units sold during the same period last year. “Despite effort to cut down on costs, losses expanded this year due to disrupted manufacturing and decreased export quantity due to the Covid-19 pandemic”, SsangYong said in a release. SsangYong is in a difficult position after parent company Mahindra earlier this year withdrew its initial promise to inject 230 billion won into the struggling unit. Instead, it offered a one-time infusion of 40 billion won. SsangYong as a result cut down labor costs by 60 billion won this year, which is 19.5 % less than was spent in the first half of last year, and other expenses by 16 billion won in order to maintain its business, but that apparently wasn’t enough to cover deteriorating sales. With the spread of Covid-19 slowing down globally, the automaker hopes its latest launch of upgraded models will help increase sales. In the second quarter, SsangYong released upgraded versions of its Tivoli and Korando in South Korea. For overseas markets, SsangYong partnered up with Chinese carmaker Songuo Motors back in June to sell its Tivoli in the Middle East and Africa. In the second half, SsangYong plans to launch a revamped G4 Rexton and Tivoli Air. “The automaker is doing its best to come up with a solution to attract new investment”, a spokesman said. SsangYong has 199 billion won in short-term debt owed to the Korea Development Bank (KDB) and foreign lenders including JP Morgan and BNP Paribas, which is due within the next 12 months, after KDB rolled over 90 billion won worth of imminent debt earlier this month. Mahindra is still looking for ways to give up on its 75 % ownership of SsangYong as the Korean unit continues to fail in making profit. During June’s conference call, Mahindra president Pawan Goenka said it is “looking for a new investor in SsangYong”. +++
+++ TESLA plans to hire nearly 1.000 factory workers for its Shanghai plant, and designers for its design center. The posts on Tesla’s official WeChat account mark the first time the California-based automaker has looked to hire designers in China. However the company did not reveal how many designers Tesla planned to hire. In January, Tesla announced its plan to set up a design, research and development center in China, to realize a transformation from “Made in China” to “Designed in China”. Tesla also planned to hire 600 operators for casting, stamping, bodywork, painting and assembly workshops, 150 quality inspectors, 200 forklift drivers and 20 security personnel. 2 sources told the recruitment plan was partly prepared for the Model Y at the Shanghai plant, which started trial production in late October. Tesla sold 11.095 of its made-in-Shanghai Model 3 electric sedans to China-based customers in May. The production for Model Y manufacturing facilities in Shanghai is underway, and the first batch of cars will be delivered in 2021, Tesla said in its Q2 financial report. +++
++++ TESLA received payroll related benefits from the government in the first half of the year to help reduce the impact of the coronavirus pandemic on its business, the electric carmaker said in a filing. The company, whose chief executive Officer Elon Musk has spoken against further government aid as Congress debates another round of stimulus, said that along with cost cuts, the benefits had offset almost all of its costs due to the idling of factories in this year’s lockdowns. Tesla’s only U.S. vehicle factory (in California, where most of its cars are produced) was shut down for some 6 weeks in the second quarter ended June after an initial standoff with local authorities. Tesla and its subsidiary SolarCity do not appear on a list by the U.S. Small Business Administration, which issued forgivable loans to millions of companies in an effort to prevent widespread layoffs. “As part of various governmental responses to the pandemic granted to companies globally, we received certain payroll related benefits which helped to reduce the impact of the Corona pandemic on our financial results”, the company said in its regulatory filing. Tesla’s billionaire CEO Musk said that another U.S. government stimulus package “is not in the interests of the people”. U.S. Republicans and Democrats are in the midst of debating a second massive coronavirus aid package to prop up the economy and help millions of Americans who have lost their jobs during the pandemic. +++
+++ VOLVO is rejuvenating its brand image in South Korea via successful collaborations with popular dramas and variety shows. In the currently airing tvN drama “It’s Okay to Not Be Okay”, starring Seo Ye-ji and Kim Soo-hyun, Volvo’s XC90 and S90 are heavily featured, gliding along the coastal roads of Goseong, Gangwon Province. The Volvo cars have also stood out on other TV programs, with popular celebrities taking the cars for a ride, such as SSak 3, a trio of entertainer Yoo Jae-suk, singers Lee Hyo-ri and Rain, which was formed on MBC’s entertainment program “Hangout With You”. Volvo South Korea said it started putting efforts into TV tie-in after it witnessed the power of the marketing method when its XC90 appeared in JTBC reality show “Hyori’s Bed & Breakfast” and went viral in 2017. “We previously made decisions to work with celebrities who already owned Volvo cars. We also look for actors and television personalities who match with the brand’s image”, a Volvo Korea official told. Lee’s husband singer-songwriter Lee Sang-soon had already owned Volvo’s V60 and the company decided to lend the XC90 to the couple, which they ended up buying after the show ended. While the increased exposure of its products on TV appears to have had positive effects on overall sales, it has also attracted younger customers, according to the company. In 2018, the company sold 8.524 units in the country, with 26.8 % of them purchased by customers in their 20s and 30s. The figures are drawing an upward turn, and in 2019, the company said it sold 10.570 units; 29.6 % of which came from the younger group of buyers. The company expects that they will break their own record this year, as the carmaker has already sold 6.524 units from January to June, with 28.5 % of the cars sold being purchased by people in their 20s and 30s. +++