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Shanghai, China
General Motors Co. said it received approval from Chinese regulators to build a Cadillac plant to increase sales of its luxury vehicle in the world's largest automobile market.
GM, the biggest foreign carmaker in China, announced that local authorities signed off in the project to construct an 8bn yuan ($1.3bn) factory to manufacture its luxury Cadillac brand that will have an annual production capacity of 150,000 vehicles.
The approval comes at a time when leading foreign premium brands such as BMW AG and Daimler AG's Mercedes-Benz are expecting slow growth this year as the premium car markets faces a slowdown. BMW saw its sales in China surge 40 percent last year.
China's National Development and Reform Commission has approved the plant, which will be based in Shanghai's Jinqiao zone, according to GM spokeswoman Dayna Hart. The agency had recently approved the project, but Ms Hart did not specify a date.
The Detroit-based automaker announced in April last year that it plans to build at least one Cadillac factory in China. Construction of the plant will begin in June.
Sales of the Cadillac brand last year stood at 30,010 units, which trail Audi's 405,838 units, BMW's 327,341 and Mercedes-Benz at 196,211, according to GM data. The U.S. carmaker halted production of the Cadillac SLS in China when it was replaced with the XTS model.
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Shanghai, China
Porsche has already launched its bid to compete with Maserati over China's growing luxury car market, unveiling its newly-enhanced Panamera coupe at the Shanghai Auto Show.
China's biggest auto show also featured the debut of Daimler AG (DAI)'s Mercedes-Benz GLA compact SUV, Bayerische Motoren Werke AG (BMW)'s X4 coupe-like sport-utility vehicle, and a sedan version of the popular Audi A3 hatchback.
China's presence as an emerging hot spot for high-end cars prompted luxury car makers to shift their focus from Europe to the Asian giant.
"There's still a lot of growth potential in China," Volkswagen Audi CEO Rupert Stadler told reporters in Shanghai, according to Bloomberg on Sunday. "The premium segment accounts for about 9 percent of the total market and that share could grow to between 12 percent and 15 percent."
Europe's car market hit its lowest mark in 20 years due to poor demand in Germany. To cater the preference of Chinese luxury car buyers, car makers are starting to jack up the production of more SUVs and sedans than hatchbacks and wagons which are popular in Europe.
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Shanghai, China
Daimler AG is working to keep up with BMW AG and Audi AG in the Chinese market by increasing the number of dealers for its Mercedes-Benz luxury car brand and streamlining sales.
The German carmaker said recently that sales of Mercedes-Benz in China dropped in the first quarter compared to the previous year, despite sales rising in March by 5.4 per cent. Mercedes was overtaken by BMW in terms of worldwide luxury-car sales in 2005 and gave up second position to Volkswagen AG's Audi two years ago.
Mercedes' underperformance in China has been cited as why BMW and Audi have surged ahead in global sales over the past year.
This year, the difference has even widened as Mercedes' first-quarter sales in China fell 12 per cent to 45,440 cars and sport-utility vehicles (SUVs) compared to 7.5 per cent increase for BMW to 86,224 units and a 14 per cent rise in Audi deliveries to 102,810 vehicles.
The China Association of Automobile Manufacturers reported that overall passenger-car sales in the world's second-largest economy jumped 7.1 per cent to 15.5 million vehicles in 2012.
Daimler plans to address its weakness in China by adding 75 showrooms in the country before the year ends, higher than its earlier plan of setting up 50 sales outlets there every year, according to newly appointed Daimler head of Chinese operations Hubertus Troska. Mercedes' total dealerships in China currently stands at 260, which lags behind BMW and Audi that have more than 300.
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Munich, Germany
Luxury carmaker BMW announced that profits fell in the first quarter, citing weakness in demand for cars in Europe.
BMW said net profits dropped 3 percent to 1.31bn euros ($1.7bn) on revenues that fell 4.1 percent to 17.54bn euros. The German company, the maker of Rolls-Royce and Mini brands, increased its worldwide vehicle deliveries in the quarter by 5.3 percent to 448,200 units.
In the full year 2012, delivery of BMW, Mini and Rolls-Royce brands increased by 10.6 percent to 1.85 million units from the previous year.
BMW Chief Executive Norbert Reithofer said that he does not expect to get great demand from the European markets over the next several months, although he thinks BMW had a great start to the year in other markets around the world.
Group revenues were down 4.1 percent to 17.55bn euros for the quarter, compared to 18.29bn euros posted in the same quarter in 2012. The Automotive segment generated lower revenues, which was down 1.6 percent to 15.91bn euros, while revenues from the Motorcycle segment were down 2.7 percent to 436mn euros.
Industry data indicates there is little sign of a turnaround, with sales in Europe falling 9.8 percent in March for all carmakers, dropping for the 18th straight month.
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Tokyo, Japan
Toyota Motor Corp. reported a rise in first-quarter net profit as the company benefited from strong U.S. sales and the sharp decline in the value of the Japanese currency, the yen.
Sales in the January to March period rose to 5.837tn yen from 5.703tn yen, while operating profit surged to 502.3bn yen from 238.5bn yen.
Net income is expected to climb 42 per cent to 1.37tn yen ($14bn) for the fiscal year ending March 2014, according to a statement released by the Toyota City, Japan-based car maker.
The projections were calculated based on value of the yen that is higher than current levels, allowing Toyota to beat estimates. The company projected the yen trading at 90 against the U.S. dollar and 120 against the euro, even if the yen is currently trading at around 100 to the dollar and 130 to the euro.
The positive outlook shows how top Japanese firms have quickly changed their fortunes to become profitable again. Toyota's guidance for revenue, operating profit and net income missed the average estimates by analysts surveyed by Bloomberg News.
Analysts predict that the car maker will continue to benefit from the weak yen this year. Toyota looks to sell 9.10 million units in the current fiscal year, higher than 230,000 vehicles that it sold in the recently ended fiscal year.
China's Qoros makes debut at Geneva auto show
The new Chinese automotive brand Qoros presented its first series production vehicle, the Qoros 3 Sedan, at the Geneva International Car Show
GM Plans to Close Down Opel Plant in Germany by 2016
In an effort to to stem losses with its European business in the midst of an extended auto market contraction, General Motors said that it will stop producing Opel cars in its Bochum, Germany
Car Sales Soar Even as Gas Prices Do, Too
Analysts say pent-up demand has primed the pump for a banner year in auto sales
Teenage Girl Drivers: No Longer the Safer Bet?
For decades, teenage boys were considered to be riskier drivers than teenage girls. But several new reports suggest that perception may be changing as girls are more readily taking risks while driving
City Grids May Not Be Ready for Electric Cars
The nation's grid is ready. Your neighborhood's power supply might be another story
Killer Cars? Auto Computer Systems Open to Malfunction and Hackers
Technological advancements have made driving than it has ever been. But as auto manufacturers imagine the future, they'll need to worry about something else -- electronic malfunctions and cyberattacks
United States 'Saudi Arabia of Natural Gas'
President Obama called America the 'Saudi Arabia of natural gas' and said the country should start using natural gas to power more cars and trucks
Buyers of traditional luxury brands are more open to lower-priced alternatives than you might think. What they found once they owned a luxury car was it didn't change their life
The American auto industry is rejuvenated. It is producing world-class vehicles that are proving to be surprisingly competitive with vehicles from top-rated names, like Honda and Toyota. So you want proof? The following is a quick look at some of the best new offerings from each of the Big Three domestic manufacturers
Toyota to Export Indian-Made Cars to South Africa
Toyota Motor Corp. (TMC) has announced plans to export cars manufactured by its subsidiary in India to South Africa
Sales of electric cars will skyrocket in the next five years, according to a new study conducted by Pike Research, which specializes in research in that area
President Barack Obama's recent address on the fuel situation gave hope to advocates of electric cars, natural gas and, as we told you last week, propane. But it offered little solace to those in America's heartland who are the biggest promoters of ethanol
As Fuel Prices Rise, Small Cars Get Hotter
If you throw a line in the water and a fish bites, do you think you'll make a catch every time you go fishing? You may be wondering what this has to do with cars and fuel prices. Well, if you look at the trends over the past several decades, you'll see that consumers are unsophisticated when it comes to dealing with fluctuations in fuel price. Our present situation is a case in point
Hybrids, Electrics and Overseas Growth Pushing Ford Motor
Prospects are good for Ford, although the auto industry is cyclical, meeting higher fuel standards is expensive, and labor will look to gain from the company's improved fortunes
Ford's Mulally Wins Automotive Executive of the Year Award
Auto industry experts and the general public are agreed on one thing: Ford Motor Company is on a roll. So it is unsurprising that the prestigious 2011 Automotive Executive of the Year Award will be presented to Alan R. Mulally, president and CEO of Ford Motor Company
Giving the Red Light to Red-light Runners
Red-light running killed 676 people and injured an estimated 113,000 in 2009. One of the cruelest aspects of this problem is that nearly two-thirds of the deaths were people other than the drivers who ran the red lights. What to do about the problem?
A lot of words have been said and written about ethanol. Some say it is the solution to our reliance on imported oil. Others suggest that, as a green solution to our fuel and carbon dioxide emission problems, ethanol is a sham. But relatively few have talked or written about how corrosive ethanol is
Millions of Americans have a loved one over the age of 70. With one in five Americans caring for an older relative, the number of adults concerned about their parents' driving abilities is on the rise. The key question that has to be asked: When do you pull the keys?
Smart Phone Apps Help Stop Distracted Driving
It's been worrisome enough that the drivers around you might be applying makeup, eating, talking on the phone, or texting. Now the guy in the next lane could be reading Zagat restaurant reviews on his GPS or, soon, updating his Facebook status. Carmakers continue to stuff new models with distracting devices. But companies are also adding technology to prevent driver distraction
Many consumers are still on-edge. They're saving more and living more frugally than before. The worry remains that they, like some people they may know, could be out of a job at any time. This is bad news for the car industry, but it might be the ideal time to buy a new car if you feel secure in your finances and are in need a new vehicle
Is the American market ready for a small Cadillac? Even in today's frugal economic climate, those buying cars opt for large vehicles. Crossovers and even SUVs are relatively hot right now, while small cars and hybrids are languishing -- yet in this climate, Cadillac has floated what it calls the Urban Luxury Concept
American Car Buyers Think Small
Detroit Tops Auto Industry Customer Satisfaction
Electric Cars May Not Make the World Greener
Chrysler Tries to Kick up Incentives in July
GMAC Rebranded as Ally Financial
American Cars vs. Import Cars: The Short Course on Vehicle Quality
Compromise Between New and Used Cars
Ford and Toyota to Develop New Hybrids
Ford and Toyota typically compete tooth-and-nail in the world's auto markets, but in a startling turn of events the two mammoth companies have announced that they will collaborate as equal partners to develop and market a new advanced hybrid system for light trucks and SUVs
GM Enters Electric Car Joint Venture With Chinese Automaker
General Motors announced that it has entered into a joint venture with a Chinese automaker to develop electric cars. The deal also involves transfer of battery and other electric vehicle technology
Japanese auto brands recapture the lead in key customer satisfaction survey, which puts American recovery in doubt
Cars Talking to Cars Is Next Safety Wave
We recently had the opportunity to participate in an event sponsored by Ford Motor Company that demonstrated how intelligent vehicles that wirelessly talk to each other could be effective in reducing crashes
In 1911, if you asked Billy Durant -- the prototypical American promoter/businessman -- if Chevrolet Motor Company would sell 180 million vehicles by 2011, he probably would have said, 'Damn right it will.' That was just the kind of guy William C. Durant was. Durant co-founded Chevrolet with race driver Louis Chevrolet on Nov. 3, 1911
Seniors Call on President Obama to Stem Gas Costs
If you are a senior on a limited income, you obviously view rising fuel costs as an ominous development. Now, a senior citizen's advocacy group called the Association of Mature American Citizens (AMAC) has called on President Barack Obama to take immediate action to stem gasoline prices that have been on the rise for the past several months.
Obama Should Challenge Country to Make a Clean Energy Automobile
The most remembered State of the Union Addresses are the ones that inspire and challenge us. Today, America needs to be challenged and inspired. I believe today's challenge rests in clean and affordable energy and the inspiration to achieve it can come through a speech coupled with a call to action. The key to prosperity lies in innovation and invention
A lot of words have been said and written about ethanol. Some say it is the solution to our reliance on imported oil. Others suggest that, as a green solution to our fuel and carbon dioxide emission problems, ethanol is a sham. But relatively few have talked or written about how corrosive ethanol is
Millions of Americans have a loved one over the age of 70. With one in five Americans caring for an older relative, the number of adults concerned about their parents' driving abilities is on the rise. The key question that has to be asked: When do you pull the keys?
The Ford C-Max, just introduced at the Detroit auto show, will be offered with a bewildering number of powertrains -- and it will likely make headlines, as it marks Ford Motor Company’s return to the minivan wars. But the seven-passenger C-Max is only one of the wide varieties of C-Max multi-activity vehicle models that will come to market here over the next two years
Hybrids, electrics and other alternative vehicles are dominating automotive news these days. And you might think the gasoline engine is headed down the path of the passenger pigeon. But that impression is very wrong. Frankly, there's both positive and negative news on electric car sales
Is Propane Fuel Getting a Fair Shake?
Globally, propane is the most widely used 'alternative' car fuel -- and for good reason. Propane fuel is abundant, relatively inexpensive and sourced in North America. It also burns clean. However, these arguments have largely fallen on deaf ears as govenrment officials seem intent on vehicle electrification at the expense of other technologies. Many auto experts believe this is a shame
Chevrolet Volt Becomes a Political Issue
The Chevrolet Volt may or may not be an electric car, depending upon whom you ask. But it certainly became a lightning rod of controversy during this past election season
How do you change behavior? By giving an incentive to change. And that’s exactly what the National Highway Traffic Administration has done over the past 32 years with its New Car Assessment (NCAP) Program.
At first glance, the new ethanol rules drafted by the Environmental Protection Agency (EPA) might seem to be a bold step toward increasing consumers' use of this renewable fuel. But a deeper look shows that, while the new regulations appear to favor increased use of the biofuel, the finer points of the rules will likely mean little expansion of ethanol use
Fuel Economy Limits for Big Trucks
Sweet Deal for the Auto Dealers
The Price of Global Climate Change Regulations
New Economy Standards Provoke Controversy
The Obama administration is proposing a 56-mpg fuel economy requirement by 2025. Should the regulations be imposed, the world's automobile companies will have to figure out a way to not only build vehicles that can deliver 56-mpg performance, but also persuade enough Americans to buy them. Auto industry experts agree that the latter is much more difficult to accomplish than the former
Mass Transit Cleans up Its Act
The use of alternative fuels in passenger cars is still being questioned, but one unexpected place where alternative-fuel use is gaining traction is in the transit bus sector.
Auto Industry Weathers High Fuel Prices
It may not be happy days again for the auto industry and its shareholders, but there is light at the end of the highway. High fuel prices have boosted sales of smaller cars, while luxury brands have been energized by improving economies and strong Chinese demand
If you think paying $4 for a gallon of gas is ridiculous and long for the days when gas cost a quarter, consider this: 93 years ago you could pay just 25 cents and drive away in your Oldsmobile or Studebaker with a gallon of gas. However ...
2013 Ford Taurus: Tomorrow's Car Today
The year 2013 is still way off in the distance for most of us, but Ford used the New York International Auto Show as a venue to introduce its 2013 model year Taurus and Taurus SHO, two very important models in its portfolio. Since General Motors took the same opportunity to show its 2013 Chevrolet Malibu, you can understand why Ford was willing to pull the wraps off the Taurus early
For a long time, Toyota had everything going its way. Its vehicles were adored by the American public and revered overseas. It was acknowledged as the automotive-technology leader. However, Toyota's unintended acceleration and safety recall problem threatened the very core of the company. Can Toyota recover?
Navigation, music, video and information systems in new cars are the rage. Consumers who are used to instant connectivity and a variety of entertainment choices at home and in the office are electing to have similar options in their cars
Sibling rivalry can often be a terrible thing, but in the case of the new version of the Audi A6 sedan -- introduced to the press at the North American International Auto Show -- it can be just great. We say that because the new A6 takes a lot of what is so good about the flagship A8 and it folds it into a more affordable, accessible package
Consumers More Aware of Alt-fuel Vehicles
The drumbeat of splashy TV advertising and reports in the media has created an awareness of electric and other alternative-fuel vehicles in the general public, but most people admit that they don't know all that much about the new technologies
Ford Vertrek: An Escape From the Escape
If you have champagne tastes and a beer budget, your crossover choices have been limited to some stalwart -- but unexciting -- choices like the Ford Escape. Now -- based on a long, hard look at the Ford Vertrek compact crossover concept just introduced at the North American International Auto Show -- we can report that things will change.
Toyota is recovering from the scandal of its cars' unintended acceleration and other recent headline-making problems. But to avoid similar issues in the future, the legendary company must return to the basic principles that made it so successful
If you're about to buy a new electric or plug-in hybrid vehicle, you should think seriously about where you're going to plug it in. Though many of the upcoming cars will plug into standard 110-volt sockets, you're liable to find the recharging time agonizingly slow.
The Most Anticipated 2011 Cars
Despite the sales doldrums that haunt America and reverberate worldwide, global automakers have put together some very, very interesting vehicles for the 2011 car-model year. In fact, one might accurately state that the most-anticipated of the 2011 cars are among the most interesting vehicles launched in the past 50 years. Let's take a look at them, shall we?
Battle of the Greenest: Electrics vs. Hybrid Cars
Two words are on the tip of the auto industry’s tongue these days: electric cars. Nissan is currently a media darling on the strength of its LEAF battery-electric car. Ford is building buzz with its Ford Transit Connect and Ford Focus battery-electrics. Meanwhile, GM is about to enter the competition with its Chevrolet Volt. All of which leaves Toyota behind the curve in battery-electric cars.
Don't Write Off Gasoline Engines Yet
We live in an era when press and politicians tout the wonders of the electric car. We're on the cusp of Nissan's salvo in the electric car arena, and if you believe the pundits, electrics are the wave of the future. So it must have come as a major shock when the winner of the most important Progressive Automotive XPRIZE category was a car powered by an internal combustion engine
Toyota: Profit Over Principles
Toyota's Reputation Remains Strong
Maybe Cash For Clunkers Helped The Economy After All
Auto Dealers: Cash for Clunkers a Needed Boost
General Motors - Cutting the Auto Giant Down to Size
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