+++ ALFA ROMEO chief executive Jean-Phillipe Imparato has confirmed that the car manufacturer will launch an SUV to slot below its forthcoming Tonale. Reports about a new entry-level SUV from Alfa Romeo first surfaced in April and during a roundtable discussion with journalists last week, Imparato said the Italian automaker needs this new model to compete against rivals, including Mini. “I can absolutely fight against Mini”, Imparato said. “Premium-ness is not a question of size. I’m convinced if I want to put Alfa Romeo on the safe side of P&L (Profit and Loss in 10 years, I must be in the biggest segments in the world”, he said. “I need to be in the B-SUV segment (small) and C-SUV (compact). Being in the corner doesn’t bring any results”. Details about this new model are limited but Autointernationaal earlier suggested it could be dubbed Brennero, in reference to a mountain pass in northern Italy. It may also be built at Stellantis’ plant in Poland and could be based on PSA’s CMP/eCMP platform, allowing Alfa Romeo to offer both petrol and all-electric variants. Imparato added that venturing into new SUV segments will prove hugely beneficial for the automaker. “The C-SUV segment in Europe is around 2.5 to 3 million cars a year in Europe”, he said. “The B-SUV segment is 2 million. Whatever the market share you have, it’s a huge effect in terms of volume”. The Tonale has been a long time coming and will finally launch next year, with production kicking off in March 22 at Alfa Romeo ’s factory in Pomigliano, Italy. It remains to be seen when the Brennero could be launched. +++
+++ HYBRID cars are increasingly popular in the European Union as eco-conscious drivers turn away from their more polluting petrol and diesel counterparts, but environmentalists warn they’re not as green as they seem. Sales of the cars, which use both a conventional combustion engine and a small electric motor, allowing owners to drive a few kilometers without emitting CO2, could soon overtake those of petrol vehicles in the EU. In the third quarter of this year, 20.7 percent of cars sold in the bloc were new hybrid versions whose batteries are recharged by collecting wasted energy from elsewhere, like braking, and 9.1 percent were hybrid plug-ins that can be charged from an electric outlet. Close to 40 percent were petrol-powered, 17.6 percent diesel and just 9.8 percent were fully electric. Cheaper than fully electric cars, they also provide some reassurance for those worried about their battery running out of power at a time when charging stations are still not widespread. Auto giants like Toyota, Stellantis, Renault and Hyundai-Kia are banking on hybrids, not least because they allow them to comply with EU norms on CO2 emissions at a lesser cost than fully electric cars. But are they truly less polluting, or more of a transition solution as the world edges towards ditching petrol and diesel altogether? Greenpeace and the pressure group Transport & Environment believe that hybrids actually slow down this transition. They want to accelerate the shift to fully electric and to other forms of transport, pointing out that hybrids aren’t that green. “Conventional ‘full’ hybrids in particular, which run for the majority of the time on fossil fuel energy, are barely any cleaner than traditional petrol and diesel engines”, Greenpeace said last year. Marie Cheron of France’s Nicolas Hulot Foundation, an environmental group, concurred. “For example, some hybrids have been bought for fleets (of cars), they do not have a system that allows them to recharge, people don’t charge them, and so they don’t drive electric”. But Philippe Degeilh, an engineer at IFP Energies Nouvelles (Ifpen), an energy, transport and environment research group, said people just need to be educated in how to use hybrids correctly. According to an Ifpen study published at the end of 2020, hybrids emit an average of 12 percent less CO2 than a similar petrol-powered car. That rises to 33 percent in town, while it drops to almost zero on highways. Plug-ins that are driven smoothly (draining batteries less) and often recharged are “capable of nearing zero emissions”, according to Ifpen. “A household that has just one car can have a better environmental record with a hybrid rather than with an electric car equipped with a large battery. It’s designed to do 50 kilometers a day and sometimes to go on holiday”, said Degeilh. Meanwhile, fully electric cars aren’t necessarily all that green either. Their batteries, which are getting bigger and bigger, require a lot of energy in their production. Where the electricity comes from is also important to determine their environmental credentials. The debate around hybrids is also a political one. As the EU plans to ban the sale of petrol and diesel engines from 2035, some of the auto industry wants to ensure a role for hybrids. “We think the hybrid is here to stay”, Jim Crosbie, head of Toyota Motor Manufacturing France, told. Hybrids (excluding plug-ins) represent 70 percent of the Japanese group’s sales in Western Europe. “If we’re talking about a model life cycle of 7 to 9 years, it will remain an important asset for us in the years to come”, he said. +++
+++ China’s focus on reducing its carbon footprint means that there will be much room for growth for HYDROGEN fueled cars in the country, Francois Tardif, president of Faurecia China, said during the ongoing China International Import Expo. To address China’s goal of achieving carbon neutrality in 2060, the Paris-based automotive supplier has brought its latest hydrogen storage solution (a fuel cell stack) to the annual expo. According to the company, the device can power a car for at least 500 kilometers and generates no carbon dioxide. Tardif said his positive outlook for hydrogen-fueled vehicles is backed by hydrogen’s longer storage period when compared to other clean energies. Another major advantage of such cars is that they can be refueled quicker than other types of green vehicles. The promotion of hydrogen-fueled cars can be carried out by deploying fleets for use in airports, local logistics systems and even law enforcement, Tardif suggested. Tardif pointed out that another reason to be optimistic about the future of hydrogen-fueled vehicles in China is the fact the country is both the world’s largest consumption market for automobiles and a global leader in connected vehicles and NEVs. Data from the China Passenger Car Association showed that China accounted for 32 percent of all cars sold in the world in 2020. In addition, more than 1 million new energy vehicles were sold each year in China from 2018 to 2020. The size of the new energy vehicle market has also driven the development of technologies related to this sector. “Faurecia used to bring in the most advanced technologies to China before localizing them. Today, frontier concepts and technologies need to be transferred into mass production first in China before they are promoted to other markets”, said Tardif. Founded in 1997, Faurecia has 266 factories and 39 research and development centers all over the world. The company had in mid-August signed an agreement to acquire a 60 percent stake in German automotive supplier Hella. The move, when completed, will allow Faurecia to enhance its development of electromobility and become the world’s seventh largest automotive supplier. +++
+++ Persistent shortages of semiconductors and other auto parts are casting a shadow over the earnings outlook of major automakers in JAPAN . As it remains uncertain when automakers will be able to procure semiconductors and other parts smoothly, they may be forced to make further production cuts and rethink their scenarios for sales recovery from the impact of the coronavirus pandemic, industry sources said. For the year through March 2022, Honda said that it has downgraded its sales estimate to ¥14.6 trillion from ¥15.45 trillion and the net profit forecast to ¥555 billion from ¥670 billion. Honda also reduced its full-year vehicle sales estimate to 4.2 million units from 4.85 million units, against the initial projection of 5 million units. “It could be difficult to catch up by the end of the current year”, Honda executive vice president said. Toyota has lowered its global vehicle sales projection for fiscal 2021 by 260.000 units to 10.29 million units, following such a downward revision in September. Due to delays in parts procurement caused by the spread of the coronavirus in Southeast Asia, Toyota was forced to slash auto production by over 700.000 units in September and October alone. While the company expects the situation to improve from November, Chief Financial Officer Kenta Kon sounded cautious at a news conference, saying, “There still are risks”. Toyota aims to increase profits by improving cost management. However, materials prices are rising around the world, and it has had to accept an increase in its purchase prices for steel materials in negotiations with Nippon Steel. It is unclear whether Toyota will be able to achieve a profit boost as planned, partly because the administration of prime minister Fumio Kishida is eager to strengthen the supervision of business deals involving subcontractors. Mitsubishi revealed that the company has expanded its estimate for production cuts linked to semiconductor shortages in fiscal 2021 to 95.000 units from 40.000 units. Major automakers initially anticipated that production cuts brought on by semiconductor shortages would be resolved by the second half of the current fiscal year. However, the Covid-19 crisis in Southeast Asia appears far more serious than automakers had expected. “A further production cut is inevitable”, a senior official at a major automaker said. The automakers are still in the dark about when their parts procurement woes will be resolved and when production will get back on the recovery track. +++
+++ MAZDA has begun accepting reservations for its mainstay CX-5 sport utility vehicle following a major facelift aimed at maintaining steady sales. The remodeled CX-5 will go on sale in Japan in early December with suggested retail prices ranging from ¥2,678,500 to ¥4,075,500. The automaker did not disclose a sales target. The changes include a revamped shock-absorbing structure to reduce driver fatigue and a redesigned cargo area that will make it easier to load and remove luggage, it said. The vehicle will be available in 2 special models: Field Journey, using waterproof materials in the cargo area, and Sports Appearance, with black interior and exterior accents. The CX-5 is Mazda’s core model, accounting for 29 % of its global sales in 2020. The upgraded SUV will be launched in the United States this winter and in Europe early next year. +++
+++ MERCEDES-BENZ will recall almost 20.000 examples of the electric EQC around the world. An investigation from the Federal Motor Transport Authority in Germany has revealed that water can find its way into the EQC’s power steering control unit. The recall doesn’t state if Mercedes-Benz is aware of any customer-owned vehicles that have experienced the issue but mentions that a grand total of 19,253 EQCs around the world are affected. Of these, 3.073 are in Germany. The exact cause of the issue isn’t yet known but Mercedes-Benz says that dealers will inspect the wiring harness for damage and carry out any repairs that may be necessary. This isn’t the first time the EQC has been recalled since it hit the market. In November 2020, the SUV was involved in a recall also related to a damaged wiring harness that could cause the power steering system to fail and also potentially trigger a fire. Mercedes-Benz first introduced the EQC in the fall of 2018 and had intended on bringing it to the United States in early 2020. It would have undercut the Tesla Model X by approximately $17,000 but earlier this year, the automaker confirmed that the EQC’s U.S. launch had been delayed indefinitely. Instead, the first new all-electric model from Mercedes to land on U.S. shores is the EQS sedan, a luxurious alternative to the traditional S-Class. Mercedes EQC models sold in other markets feature an 80 kWh battery pack and dual electric motors that produce 408 hp and 760 Nm of torque. +++
+++ The automotive SEMICONDUCTOR SHORTAGE is expected to continue until 2023, and the government and related industries should be prepared to handle rising demand, an automotive think tank said. According to the Korea Automotive Technology Institute, or Katech, the global shortage of automotive semiconductors that started around the end of 2020 will continue to affect the global car industry for the first half of 2022. Even after 2023, some companies may still feel its effects. This year, the chip shortage is expected to take about 10.1 million vehicles out of production, the think tank said, citing statistics from Auto Forecast Solutions. South Korea’s government and its automotive companies have put up a good defense, Katech said, encouraging more active cooperation from different sectors. Up to September, major global automakers such as Volkswagen, Stellantis, General Motors and Honda witnessed their respective accumulated production volume fall by around 30 percent from the same period in 2019, according to Katech. But Hyundai and Kia produced only 14 percent fewer vehicles during the first 3 quarters of this year compared with 2019. With production volume increasing by 7.1 percent this year from a year earlier, Hyundai and Kia combined would rank No. 3 in terms of production volume, after Toyota and Volkswagen, Katech added. Demand for automotive semiconductors is expected to grow. Citing data from IHS Markit, Katech said demand will increase from 132.5 billion chips in 2021 to 209.3 billion in 2027, showing an annual average growth rate of 8 percent. By sales, that amounts to $49.7 billion in 2021 and $89.2 billion in 2027, for an annual average growth of 10.2 percent, it added. Against that backdrop, vehicle manufacturers and auto parts companies should set a long-term plan to prepare the domestic auto industry for a prolonged shortage, Katech said. Chip companies should also focus on long-term market potential rather than short-term profit, and should pursue cooperation with automakers on technology development and investment, the think tank said. +++