Ford blames market conditions, pulls out of Japan, Indonesia

Ford blames market conditions, pulls out of Japan, Indonesia

Article Source from: http://www.toledoblade.com/Automotive/2016/01/25/Ford-blames-market-conditions-pulls-out-of-Japan-Indonesia-2.html#vvDBEwjUZ2MxEIBr.99

ASSOCIATED PRESS

DETROIT — Ford Motor Co. is pulling out of Japan and Indonesia, saying that market conditions in each country have made it difficult to grow sales or make sustained profits.

“Japan is the most closed, developed auto economy in the world, with all imported brands accounting for less than 6% of Japan’s annual new car market,” spokesman Neal McCarthy wrote in an email message. The 12-nation Trans Pacific Partnership trade agreement in its current form will not improve Ford’s ability to complete there, he said. Congress could vote on the pact this year.

Neither market is large for the Dearborn, Michigan, automaker. Last year Ford sold only 6,100 cars and trucks in Indonesia and only 5,000 in Japan, where it has accused the government of protecting domestic brands.

The company in an emailed statement said that the decision was communicated to employees and dealers today. Ford will exit the countries before the end of the year and plans to explain to customers its commitment to servicing cars, providing parts and making warranty repairs.

McCarthy said auto sales are expected to decline in Japan in the coming years. Analysts have said that’s due to an aging population and declining interest in cars among younger people in urban areas.

In Indonesia, it was difficult for Ford to compete without local manufacturing and vehicles to sell in key market segments, McCarthy said. Ford has restructured its business there but still has less than 1 percent of the market with “no reasonable path to sustained profitability,” he said.

When the trade agreement was being negotiated in 2013, Joe Hinrichs, Ford’s president of the Americas and a former head of its Asia-Pacific operations, said that Japanese Prime Minister Shinzo Abe should be told to open the country’s automobile market.

“We hope the U.S. government will send a clear message that any future trade policy with Japan must ensure a level playing field and not come at the expense of American workers,” Hinrichs said.

Read more at http://www.toledoblade.com/Automotive/2016/01/25/Ford-blames-market-conditions-pulls-out-of-Japan-Indonesia-2.html#vvDBEwjUZ2MxEIBr.99

BMW and Hyundai in cost-sharing talks

 (Reuters) - BMW is in talks with South Korean automaker Hyundai to help shoulder the 1-2 billion euros ($1.3-2.6 billion) in costs for developing new engine families, German industry newsletter Automobil Produktion reported on Thursday.

Hyundai Chairman Chung Mong-koo's son and heir apparent, Chung Eui-sun, had met a small group of top BMW managers in Munich, Automobil Produktion said, without citing sources.

A spokesman declined to comment on the report.

However, Chief Executive Norbert Reithofer earlier dampened speculation BMW would extend its partnerships beyond PSA , Toyota, Daimler and possibly GM , should ongoing talks with the U.S. automaker prove fruitful.

"Further co-operation partners are currently not foreseen," Reithofer told reporters on Thursday.

BMW had said in March it was working on a new engine architecture that would improve economies of scale for its three, four and six-cylinder petrol and diesel engines.

Further readings:
http://paultan.org/2012/05/08/bmw-and-hyundai-rumoured-to-be-in-engine-tie-up-talks/

Reason why we shouldn't buy a new car now...

There are some interesting pictorial on the original site.  

Reason why we shouldn't buy a new car now...

http://www.financetwitter.com/2012/04/here-are-reasons-why-you-shouldnt-buy-a-new-car-now.html

Buying a car in Malaysia is an expensive affair. Besides a place called home, car is perhaps the biggest commitment to an average Malaysian. It’s not a fairy tales anymore that an average-Joe could be spending the rest of his life paying installments for his home and car. And we’re not talking about bungalow with swimming pool or a BMW, mind you. When the AFTA (Asean Free Trade Area) was mooted in 1992 and as date nearing the 2010′s actual implementation, many were grinning from ear to ear hoping to buy a “quality car” at a more affordable price. It never happens. 

Dollar for dollar, people are still wondering why locally designed and built cars are still more expensive than imported foreign cars in the same class. At 1.6-litre segment, a latest 2012 Ford Fiesta cost about US$16,000 in U.S. but a local Proton Persona cost a whopping RM49,000. A new 2012 Toyota Camry 2.5-litre in United States cost merely US$30,000 but it is costing you a leg and an arm at RM183,000 here. Hence an American with monthly salary of US$3,000 could own a Camry with his 1-year salary while a Malaysian requires about 5-year salary to own the same car, dollar-to-dollar speaking. Even after converting to Malaysian Ringgit, the Camry should cost you roughly RM90,000 instead of RM183,000. 

If you’ve been living in the cave for the last 30-years, Malaysia’s automobile sector is protected from foreign competition by barriers of investment-approval permits, differential excise taxes, import duties, sales taxes and whatnot. It was a beautiful multi-layers of barricade specifically architected and designed by none other than former premier Mahathir Mohamad to protect Proton, his pet project. For years since the 1983 National Car Policy, Proton made tons of money thanks to the protection policy – the local automaker became Asean’s largest car producer in the process. Proton became arrogant and didn’t care about qualities so much so that its local buyers were left without any solution for decades about its once-infamous-power-window problem. 

Then in 2001, came (former) Thailand Prime Minister Thaksin Shinawatra who formulated Thailand’s master plan for industrial development – of which “Detroit of Asia” was part of it. Little did Mahathir and his regime realize what would hit their “Jaguh Kampong” Proton. By 2003, Thailand overtook Malaysia as the top vehicle producer in the region but Malaysian ministers were still in denial mode and pooh-pooh the “Detroit of Asia”. Nevertheless, National Automotive Policy (NAP) was introduced in 2006 to arrest the decline in Malaysia automotive industry but it lack real substance. 

By the time Malaysian government (reluctantly) realized the consequences of Thailand’s little Detroit’s impact, it was too late. Thailand’s durian orchards have been transformed into small city making vehicles for export to over 200 countries. Toyota, Honda, Nissan, General Motors, Mitsubishi, Suzuki Motor and Ford Motor are some of the giant manufacturers manufacturing or are in the process of doing so (by 2012) in the automobile cluster in Rayong which have 25,000 employees. To make matter worse, Indonesia’s vehicle production quietly overtook Malaysia by 2008. In 2010, Thailand led Southeast Asia in total vehicle sales with 800,357 units, compared with Indonesia’s 764,088 and Malaysia’s 605,156. 

And now the excitement (sort of) is back – the revised NAP scheduled to be revealed end of Apr 2012 with the objective to supposedly plug the holes from the first version of failed NAP. Of course the main attraction here is the possibility of liberalization in the lucrative 1.8-litre segment. Players who could benefits tremendously if such liberalization is adopted will be carmakers from South Korea such as Hyundai and China’s Chery. It could also attract other manufacturers such as Audi or Alfa Romeo. So we could see more models and price pressures from this event and this is perhaps the first reason why you should hold on from new purchase. 

DRB-Hicom has just acquired Proton and the current Proton’s MD Syed Zainal, the person credited to the success of new Proton Saga and coming Proton Prevé, is rumoured to be resigning. DRB-Hicom COO Lukman Ibrahim who once held a top managerial position in Perodua is said to be the replacement. DRB-Hicom currently assembles Volkswagen Passat with Jetta and Polo in the pipelines. The question is whether DRB-Hicom under the new leadership will rebadge some of Volkswagens as Proton models as in the case of Proton Inspira, the carbon copy of Mitsubishi Lancer. 

Judging by the delay in NAP revision due to DRB-Hicom’s acquisition of Proton, the new owner has to do something to plug the continuous losses in Proton and what better way than to take the easy way of rebadging? If you’re not in a rush, this is the second reason why you should wait, at least for couple of months, before making a new purchase. One has to remember that tycoon Syed Mokhtar Albukhary is a businessman and his objective is to make money soonest possible. Therefore, it’s likely DRB-Hicom may attempt to kill two birds with a stone by re-badge Volkswagen with Proton’s ThunderCat logo. And if DRB-Hicom intends to sell off loss-making Lotus, which is long overdue, then there are more reasons to do (re-badge) so, no? 

Third reason to hold from any new purchase at this moment is related to Toyota and Honda cars owners’ wannabe. You’ve seen how UMW-Toyota tries to rip you off with pricier, uglier and low technology new Camry scheduled in June. Chances are the sales would be dull judging from the huge criticisms. On the other hand, Honda is expected to launch its new Civic in June, follow by CRV. Already, the new Civic has attracted international criticisms which saw its designers sent back to the drawing board. But if there’s one consolation prize from Civic over the Camry, it is the coming Civic’s Hybrid option. Why not give both new Toyota and Honda’s first release a pass and wait at least for the facelifts? 

Another area of interest in the coming 2012 NAP is hybrid. The tax exemption provision for hybrid cars which will end in 2013 may get an extension. From what FinanceTwitter have gathered from Honda’s insiders, the road-map for future Honda cars will be in the hybrid market, although (greedy) Toyota prefers to squeeze the last drop from Uncle’s juice instead of bringing Camry hybrid to the market (*grin*). Auto parts suppliers and manufacturers could be encouraged into the hybrid market to differentiate Malaysia from Thailand and Indonesia. Needless to say, you should wait for such revelation before you commit yourself a new car, shouldn’t you? 

The fifth reason is related to ridiculous high import duties or excise duties. Both import duties and excise duties constitute 85% to 135% (CBU and CKD) of the overall price of foreign built cars in Malaysia. Thanks to the government’s protection policy and poor governance, the cost of car ownerships has skyrocket, so much so that the once 5-year installments had mutated to 7-year, 9-year and even 11-year, before Central Bank interfered to cap it at maximum 9-years. Even then, fresh graduates find it hard to afford a new car. Hence you may want to wait and see if the government will reduce the said duties to make car ownerships more affordable, especially in the low-capacity engine cars. 

If you’re currently driving that 15-year-old Proton junk and would like to get a new Proton Prevé, or you’re currently driving that 10-year-old Honda City or Toyota Vios and would like to upgrade to a Volkswagen, or you’re simply thinking of disposing your Accord or Camry for a new BMW 3-series, you may want to think again as the economic outlook is not that rosy after all, unless you have tons of loose change for such purchase. U.S. stubborn unemployment, Europe’s economic crisis, possible Iran war, China’s property bubbles and whatnot could spark further global economic slowdown this year thus another reason why you should adopt a wait-and-see approach for the time being. 

The seventh reason will be the coming general election. Najib administration has been fighting a losing battle trying to win over the more educated young voters, who will determine who will walk the corridors of powers. This group of internet-savvy is the hardest to please and with escalating cost of living, it would be foolish if PM Najib doesn’t take advantage of the revised NAP to give away some candies. Opposition de-facto leader Anwar is already scoring important points with his proposal to scrap the National Higher Education Fund (PTPTN) over the young voters. It would be fun if Anwar can promise an AP (approved permit) for each and every individual if the opposition wins the federal government (*tongue-in-cheek*). 

OK, some of the above reasons may be wishful thinking. However, looking at Malaysia’s total vehicle sales from 1980 to 2011, obviously it has reaches saturation stage. In order to register higher sales figure, Malaysian government has to stop telling the world what they can’t do yet bitching about declining sales and quarters of (Proton) losses. Gone are the days when Malaysia can (arrogantly) dictate what foreign manufacturers can produce. If they are serious about competing with Thailand and Indonesia, they’ve no choice but to invite more foreign manufacturers into the country with more liberalization. Foreign carmakers do not need Malaysia to survive but the same cannot be said about Malaysia. 
Malaysia has to honour what it promised. The government promised to abolish APs by 2010 but has since pushed it to 2015. The government also promised EU4M diesels to be introduced in 2011 but nothing happens and the poor BMW actually thought Malaysian government was serious about it so much so that they actually launched clean diesel models ahead of the date. Now, every foreign car manufacturers know they can’t trust current Malaysian government at all. Will we see a tsunami in the automobile industry soon? Maybe we shall wait for the NAP 2012 and the coming general election before decide whether it’s wise to book a new car.

Honda gears up to rebound for 2012

SOURCE: Click me!

The double whammy of having to deal with both earthquake in Japan and flooding in Thailand has made 2011 a year to forget for Honda. The latter tragedy, in particular, almost completely crippled Honda's plans this region, with Honda Malaysia Sdn Bhd's plant in Malacca entering a period of enforced shutdown.

Being ranked highest in the J.D. Power Asia Pacific 2011 Malaysia's Sales Satisfaction Index (SSI) study was a celebrated silver lining in what was a very dark cloud. In addition, owners of the City, CR-V, and Accord also gave favourable feedback in the J.D. Power Initial Quality Survey 2011, ensuring the three models finished top in their respective categories.

 
“In spite of some setbacks, we managed to sell 32,482 units and retained our No. 2 position in the non-national car segment. The difficult year did end on a bright note, with the introduction of a star - the Honda CR-Z (picture above), which brought excitement to the hybrid automotive segment. 2011 was also the first year that the hybrid market emerged, and the Honda Insight became the best selling hybrid model with sales of 4,568 units in 2011 that represented 54% share in the segment,” said Mr. Yoichiro Ueno, Managing Director and Chief Executive Officer of Honda Malaysia.

Commenting on Honda’s plans for 2012, Mr. Ueno said, “2012 will be a better year. It will be a year of recovery for Honda Malaysia as we rise stronger from the challenges of 2011. I am pleased to announce that our manufacturing plant in Malacca will resume production on 20 March 2012 and will fully recover 100% production by the end of April 2012 with a production of 180 cars per day. Our highest priority at this moment is to reduce the backorders and to work closely with our dealers to ensure prompt deliveries." 

"On the day we suspended the production in October 2011, we had 2,900 backorder customers who were waiting for delivery. After our production was affected and we became unable to reply on the exact delivery timing, we still received a lot of additional orders and currently we have more than 5,000 backorder customers for CKD models. I would really like to thank those customers who understood the situation, accepted to wait for the delivery, and continuously gave support towards Honda through the challenging times,” Ueno added.

Looking ahead, the company forecasts that total industry volume (TIV) for 2012 will reach 618,000 units and it aims to capture 7.5% of this projected TIV. That target equates to sales of 46,500 units, an ambitious 31% growth from disaster-ridden 2011. The company currently has 1,000 orders for its newly launched CR-Z hybrid sports car, and has committed to significant investments with a new RM50 million warehouse having just opened in January and construction of a RM40 million pre-delivery inspection (PDI) centre under way.

Proton SOLD to DRB-HICOM. What's next?

The Star Business, Wednesday January 18, 2012

Disclaimer: THIS IS NOT MY WORK. SOURCE: Click me

After Proton stake sale, all eyes on merits of deal

Behind the news - By Choong En Han

NOW that the dust has finally settled on who will own Khazanah Nasional Bhd's 42.74% stake in national carmaker Proton Holdings Bhd, the focus will shift over to the merits of the deal.

This is important to shareholders of DRB-Hicom Holdings Bhd, the conglomerate which is not only buying the stake but also making the mandatory general offer for the rest of Proton. And it is important for shareholders of Proton as well.

There will be questions whether Khazanah has struck a fair deal, given that the stake was bought at roughly RM8 per share over several years and in various tranches from different shareholders.

We can expect the picture to become clearer when DRB-Hicom groupmanaging director Datuk Seri Mohd Khamil Jamil meets the press today.

Proton has a list of well-known problems, including its extremely underutilised Tanjung Malim plant, its Lotus turnaround plan and its need for a strategic global partner to drive future growth.

The controlling stake in Proton has come full circle and is finally back to DRB-Hicom. And it looks like it will be the turning point for the national carmaker and this is where all the hard work begins for DRB-Hicom. Words like partnerships, collaborations and strategic joint ventures have been the more favoured keywords recently for Khamil to relate to Proton.

People looking at Proton Exora multi-purpose vehicle at a Proton showroom. The question now is whether DRB-Hicom can lift Proton out of its financial doldrums.

No stranger to these keywords himself, indeed Khamil has led DRB-Hicom to greater heights by associating the automotive and industrial conglomerate to other global automotive marques and establishing its presence throughout the entire value chain of the automotive industry.

The question now is whether DRB-Hicom can lift Proton up from its financial doldrums after being dragged down by provisions made for its Lotus turnaround plan.

Despite being a domestic-centric car manufacturer, Proton needs to bank on its export base to increase its sales volume and drive the next phase of growth, as the local market seems to be reaching a saturation point with the total industrial volume hovering around 600,000 units.

Collaborating with a foreign strategic partner seems to be the obvious choice for Proton to become a global brand or, maybe, in the nearer term, an Asean brand.

Analysts and observers alike have touted Volkswagen to be the best suitor for Proton, with the latter's significantly underutilised Tanjung Malim plant fitting Volkswagen like a glove to meet the German marque's ambition for a manufacturing hub in Asean.

Excess fat: ‘Proton cars at a logistic centre in Kuala Langat. CIMB believes DRBHicom is well positioned to reap significant low-hanging fruits.’

There is also another potential collaboration on the cards with long-time partner Mitsubishi Motor Corp to assemble Mistubishi cars and the possibilities of engine development.

However, with the entry of DRB-Hicom, the Mitsubishi deal might be scuttled in favour of a more muscular foreign strategic partner like Volkswagen.

Meanwhile, questions also arise about Proton's upcoming launch of “P3-21A”, which is touted to be the model that will make Proton's presence felt in the global car scene. The sudden entry of DRB-Hicom would definitely have an impact on the planned launch of the new car in March.

Currently, DRB-Hicom derives almost 60% of its automotive revenue from business ventures with the national carmaker. It is also the biggest distributor of Proton cars under EON Bhd, besides Proton Edar. The group's manufacturing and engineering companies are all first-tier vendors to Proton, accounting for RM600mil to RM700mil worth of business.

No doubt synergistic gains and operational benefits abound in this link-up between DRB-Hicom and Proton but there will be questions on how Proton's current plans can gel up with DRB-Hicom's future direction.

Recent Related Articles:

• Jan 18

  After Proton stake sale, all eyes on merits of deal

• Jan 18

  Proton revving up

• Jan 17

  Future ventures must benefit Proton, says DRB-Hicom group MD

• Jan 17

  DRB-HICOM has a workable business model for Proton

• Jan 17

  DRB-Hicom a natural frontrunner for Proton stake

  
  
• Further readings:

http://paultan.org/2012/01/17/drb-hicom-picked-to-get-proton-what-will-happen-next/

http://paultan.org/2012/01/18/reports-drb-hicom-to-cut-protons-costs-review-lotus/

DRB-HICOM declares interest in Proton

SOURCE (Click me!)

PETALING JAYA: The Proton Holdings Bhd saga continues with DRB-HICOM Bhd group managing director Datuk Seri Mohd Khamil Jamil coming out to confirm that the group has put in a bid for the national carmaker.

“It is up to the owner (Khazanah Nasional Bhd) to decide on the best suitor. Proton has been in my radar for a long time. Back in 2009, we submitted a proposal with conceptual ideas to Khazanah. However, at that time, they were not interested to dispose of Proton,” he said.

Last Thursday, Proton chairman Datuk Seri Mohd Nadzmi Mohd Salleh had stated his intention to bid for the national carmaker.

Speaking to reporters at a media retreat yesterday, Khamil did not provide details of DRB-HICOM's bid but admitted that Proton would not be an easy project due to the stiff market competition.

Khamil

Asked on the price offered, he said: “You cannot say that we will be buying it at the speculated price. It depends on our capability and capacity. At the end of the day, it is on a willing-buyer willing-seller basis. You cannot measure it based on net tangible asset. It should be priced at a practical, reasonable and workable range.”

Khamil said the group submitted a proposal to Khazanah a few months ago, after the group got wind that Khazanah's stake in Proton was up for sale.

“I'm a long-term player, I never go for short-term gains,” he said.

In filings to Bursa Malaysia last December, DRB-HICOM denied any knowledge of a bid for Proton and of plans to sell a stake in Proton to Volkswagen AG.

The company issued the statement in response to a StarBiz report quoting sources that said DRB-HICOM would divest a portion of its controlling stake in the national automaker to Volkswagen in the second stage of a two-stage bid to win control of Proton.

Khamil said: “I think Proton is a good company and there is a lot of potential in Proton. It might just need a little bit of impetus to trigger the next phase.”

On the bigger picture of the national car company in the local industry, he said Proton had done well considering its humble beginnings.

“I think it can achieve greater heights, complement and enhance the national automotive industry,” he said, adding that after all, Proton was part of the DRB-HICOM Group.

Currently, Proton is still an important business partner for DRB-HICOM, with almost 60% of its automotive revenue derived from business ventures with the national carmaker.

DRB-HICOM is the biggest distributor of Proton cars under EON Bhd, besides Proton Edar, and the group's manufacturing and engineering companies are all first-tier vendors to Proton, accounting for RM600mil to RM700mil worth of business.

He said he was not merely looking at acquiring the national car company per se as he felt that it was still subject to further fine-tuning.

“Proton is able to reach greater heights, and it all depends on how well you handle and manage it. It is capable with the technologies, expertise and products that it has now,” he said.

Khamil did not rule out further partnerships and collaborations with Proton even after the acquisition if it were successful.

“The paradigm shift for DRB-HICOM is to have strategic partnerships and collaborations with our partners. We must never be shy and restrict ourselves by not asking for help. We cannot live within the constraints of our boundaries and say we are the best. We must end off with production and manufacturing,” he said.

Citing human capital development as an integral part of Proton, he said the group must invest in research and development and not merely rebadging cars.

Meanwhile, over the weekend, a business weekly reported that more suitors were vying for the Proton stake, with the latest being businessman Tan Sri Arumugam Apavoo Packiri and Gerald Lopez of Genii Capital.

Arumugam is said to be an associate of former prime minister Tun Mahathir Mohamad, who is currently the adviser to Proton.

It is speculated that the duo are looking to rope in a former chief executive officer of Proton who helmed the company from the mid-1990s to 2004.

Related:

RELATED

» DRB- HICOM best suitor for Proton stake, says research house

Year of the Dragon poised to be an exciting year

KUALA LUMPUR: The local car industry is set to shift into high gear in 2012 despite having gone through a roller-coaster ride this year.


Both the national and non-national car companies have announced exciting model launches, facility and network expansion as well as upgrading programmes.


Some have received enquiries and bookings ahead ofthe Chinese New Year on Jan 23-24, 2012.
Proton Holdings Bhd will launch the new global car, P3-21A, in the first quarter of 2012 and two new variants of multi-purpose vehicle Exora by the second week of January.


UMW Toyota Motor Sdn Bhd plans to unveil a few models for both Toyota and Lexus, while Naza Kia will accept bookings for its new Optima K5 in January.


Naza Kia will set up its second 3S (sales, service and spare parts) outlet -- Kia Red Cube -- and upgrade 27 existing outlets to incorporate its new identity.


Perusahaan Otomobil Kedua (Perodua) will ink a collaborative agreement with Proton on certain aspects early next year.  Perodua has revealed that both parties will make the announcement on the agreement either this year or next year.


On Khazanah Nasional Bhd plans to sell its stake in Proton to DRB-HICOM Bhd, most analysts reserved comments to await Khazanah's formal announcement.

Other factors that industry players need to keep close watch included the revision to the National Automotive Policy and exchange rates for the US dollar and yen.

The younger Malaysian population, which usually forms a large pool of first-time buyers, will propel the car industry towards achieving higher overall total industry volume (TIV).


Car analysts said effective business plans to tap growth opportunities, including strategies to cope with economic reality in view of Europe's debt woes and tight credit, are crucial.
Industry players and analysts expect TIV next year to record positive growth.

OSK Research Sdn Bhd said next year's TIV is expected to grow by 1.1 per cent on the back of a forecast gross domestic product growth of 5.2 per cent.
RHB Research Institute forecasts TIV to remain relatively flat at 607,000 units in 2012 versus 2011, which is estimated at 604,000 units.
MIDF Amanah Investment Bank Bhd predicts the TIV to grow by 0.5 per cent to 611,140 units from 608,100 units estimated this year.


Naza Kia expects sales volume to remain flat next year in view of the coming general elections and said that "maintaining sales at the current level is good enough for next year."


In 2010, the TIV hit a record 605,155 units, an increase of 12.7 per cent compared with 2009's 536,905 units.


As for this year, the Malaysian Automotive Association (MAA) forecasts industry sales to hit 608,000 units.
The market saw a momentum driven by stronger purchasing power and higher demand from customers this year but faced several challenges like earthquake and tsunami that hit Japan in March and the flooding in Ayutthaya, Thailand in the third quarter of the year.


As a result, some delays were seen in the launch of certain models and delivery of spare parts for companies like UMW Toyota Motor and Honda.


With 2011 turning out to be the year best forgotten by the car industry, most analysts agree that the parts production and delivery are nearly back to normal.


Total vehicle sales rose by 8.6 per cent to 48,702 units in November, from the 44,845 units sold in the same month last year.


According to MAA said sales volume for December is expected to moderate further, due to the preference of customers to wait and take delivery of 2012 production year stocks.
-Bernama

Honda Thailand scraps over 1,000 flood-damaged vehicles

Honda Thailand scraps over 1,000 flood-damaged vehicles

BANGKOK: Honda began destroying 1,055 cars in Thailand to reassure customers that no vehicles damaged in the country’s recent flood crisis will ever be sold.

 

The scrapping process at Honda’s plant in the central province of Ayutthaya is expected to take one month, the company said in a statement.

The plant is located in the Rojana Industrial Park, where heavy flooding in early October brought production to a halt and aerial pictures showed hundreds of new cars submerged in muddy water.
“While we were able to relocate many new cars that were awaiting shipment to a safe area, 1,055 vehicles that remained in the plant were finally damaged by the flood,” said Pitak Pruittisarikorn, executive vice president of Honda Automobile Thailand.
Most of the cars to be scrapped are mid-sized City sedans and Brio and Jazz hatchbacks. Production has yet to resume at the factory.
Thailand said earlier this month that over 700 people died in the floods, which at their height affected 65 of the 77 provinces in the low-lying nation and forced the closure of seven major industrial parks, disrupting global supply chains.

-AFP

Saab files for bankruptcy

Saab files for bankruptcy

STOCKHOLM: Swedish Automobile N.V. has announced that Saab Automobile AB (Saab Automobile), Saab Automobile Tools AB and Saab Powertrain AB have filed for bankruptcy with the District Court in Vänersborg, Sweden today.

It is expected that the court will approve the filing and appoint receivers for Saab Automobile shortly. Saab said in a statement that it decided to file for bankruptcy "in the best interests of its creditors."

The decision came about after GM, which still owns a number of technology licenses for Saab, blocked the sale of Saab Automobile to Chinese auto maker Zhejiang Youngman Lotus Automobile Co.

 Swedish Automobile N.V said it does not expect to realise any value from its shares in Saab Automobile and would write off its interest in Saab Automobile completely.

End of Source...

Jeff Lim's Opinion: Another Car Brand killed by GM. What's with GM? Apparently loved to kill car manufacturers. Prior to Saab, GM Already killed "Pontiac", "Hummer", and "Saturn". What a Selfish move to block sales to China. Sigh...

Three-way fight for Proton stake shaping up – DRB-Hicom, Naza and Proton chairman Datuk Mohd Nadzmi involved?

Three-way fight for Proton stake shaping up – DRB-Hicom, Naza and Proton chairman Datuk Mohd Nadzmi involved?

SOURCE: Click me!


The marketplace is buzzing with news of a three-way tussle for a stake in Proton that’s currently owned by Khazanah Nasional Bhd.

The three parties are said to be DRB-Hicom, which is controlled by tycoon Tan Sri Syed Mokhtar AlBukhary, parties linked to the Naza Group and a management buyout lead by Proton Chairman Datuk Mohd Nadzmi Mohd Salleh. All three parties have been previously linked with the national carmaker.

Currently, Khazanah has a 42.7% stake in Proton, and should a party succeed in buying over the Government’s stake, it will trigger a general offer. Business Times quotes a source involved in the bidding process as saying that the bids were in the range of between RM6 and RM7 per share. The same source added that “whoever is buying Proton is getting the company on the cheap” based on Proton’s March 2011 book value per share of RM9.84.

This development is drawing in the speculators, and Proton’s share price went up by another 89 sen yesterday to close at RM4.50, with over 20 million shares changing hands. DRB-Hicom, thought to be the front runner in the bid, also saw its shares rise. The counter gained 20 sen to end the day at RM2.20, the highest point since August. DRB-Hicom is of course the company that is assembling Volkswagen cars at its Pekan plant.

Proton’s share price might still rise, since OSK Holdings Bhd and RHB Capital Bhd have upgraded the stock to a “buy” with a fair value of RM5 per share. It will be interesting to know more about the plans each of the bidders have for Proton. Nothing is out at the moment, but we will keep tabs on this.

MOTORTREND 2012 Automobile Of The Year Winners

In this blog entry, I'm covering MOTORTREND Magazine's Annual "of the year" awards. Here's the winner of 2012 Motortrend (US) Automobile of the Year:

CAR OF THE YEAR: VW Passat




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SUV of THE YEAR: LAND ROVER RANGE ROVER EVOQUE


TRUCK of THE YEAR: To be announced soon...

2012 Motor Trend Car Of The Year! Picking A Winner


If Car of the Year juries were seated like criminal trial juries, Volkswagen's lawyers might have used up their peremptory challenges dismissing the lot of us. They'd claim we had been poisoned by the launch coverage of the company's supersized Yank-tank B7-generation Passat. Harsh auto-show lighting made the car look like a freshened version of Chevy's little-loved Impala; early punditry slammed the interior as drab, plain, and cheap-looking; and news that the moaning I-5 we loathe in the Golf-class cars would be the mainstream engine seemed like strike three.

Making things worse were VW's concurrently announced plans for world domination, which, combined with the above impressions, seemed to suggest that VW was saying "Vee unterschtand zat to sell lots of zees cahs to you fat Dummkopfs, zay need to be bland like Camry."

Unlike GM and Ford, which are consolidating regional platforms and introducing world cars, Volkswagen's larger new Passat will sell only in North America and China. The car and the strategy raise serious questions: Can an American-born-and-bred Passat be German enough to please the VW faithful? Can anything with a VW badge pry large numbers of people out of their Accords and Camrys? Can such conservative styling turn the heads of the legions on their way to Hyundai? Out on the test track, in the high-desert sunshine, three Passats spanning the range of powertrain and trim levels did their best to answer these questions, presenting evidence in each of our six criteria and gradually whittling away at our editorial preconceptions. Let's read the court testimony.

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http://www.motortrend.com/oftheyear/car/1201_2012_motor_trend_car_of_the_year_volkswagen_passat/viewall.html#ixzz1f6W8BzBz

Peugeot RCZ is Maybank NST CBT Car of the Year 2011!

Peugeot RCZ is Maybank NST CBT Car of the Year 2011!


SOURCE: Click me!

The Peugeot RCZ has been named the “Overall Car of the Year 2011” as well as the “Coupe/Cabriolet of the Year 2011” at the New Straits Times/Maybank “Car of the Year 2011” (COTY) Awards.



Its astonishingly beautiful form, powerful stance and supermodel shape gave the RCZ an exquisite look that surpasses cars more than double its asking price of RM218,888 (OTR with insurance).


The RCZ’s shape has already won it the 2010 Red Dot Design Award and the title of “2009’s Most Beautiful Car of the Year” during the 25th Festival Automobile International.

To back up its supercar proportions, the RCZ is powered by a refined, yet powerful 156hp 1.6-litre direct-injection turbocharged engine, which has been winning engine of the year awards for its category.


Readers and show visitors voted for their favourite Car of the Year from the 44 new cars nominated for this year's COTY awards.

The winners for the New Straits Times /Maybank 2011 COTY Awards were announced at a gala dinner at The Saujana Kuala Lumpur, hosted by the New Straits Times and title sponsor Maybank Berhad.
Its smooth shifting six-speed automatic transmission, on the other hand, fits perfectly with the RCZ’s refined nature.

The RCZ was named as 2011’s “Overall Car of the Year” as it received the most votes from the COTY judging panel of nine judges, citing its head turning looks, stylish interior, competitive pricing, as well as refined handling dynamics and comprehensive safety features.

Three car brands - Hyundai, Nissan and Jaguar - each picked up double wins in this year’s COTY Awards.

The i10 1.25 Kappa and Santa Fe 2.2 VGT picked up the “Compact Car of the Year” and “SUV of the Year (Above RM150,000)” awards respectively for Hyundai.
Judges were impressed by the i10’s refinement and build quality, while the Santa Fe managed to get nods of approval from all judges for its excellent cabin space and good fuel economy.

Nissan, on the other hand, took home the “Executive Car of the Year” and “Pick-Up Truck of the Year” awards with the Nissan Teana and Navara King Cab.


The Teana’s smooth and comfortable nature made it the car all the judges wanted to go home in after a hard day’s work, while the powerful Navara King Cab wooed the judges by its performance and economy.

Both Jaguar’s new diesel powered models, the XFS 3.0D and XJL 3.0D, swept the “Premium Executive Car of the Year (Above RM300,000)” and “Limousine of the Year” awards.

Although powered by the same three-litre diesel engine, both the XFS and XJL show that diesel power is no handicap even when it is tasked to meet the power demands of a sporty executive sedan and the required refinement worthy of a limousine.

This year’s COTY Awards marks a landmark year as the Great Wall Motor’s Haval H5 becomes the first China made car to win a COTY category award, the “SUV of the Year (Below RM150,000)” Award, in COTY’s 10-year history.


The Perodua Myvi got its due recognition as the people’s champion when it was voted as the winner of this year’s “2011 People’s Choice” Award.

The 2011 People's Choice Award was based on votes received from the NST/Maybank Car of the Year 2011 People's Choice Contest published in the New Straits Times from Oct 20 to Nov 13.



The winners were selected from 44 new models or re-engineered facelift models introduced between October 2010 and October 2011.

When picking the winners, the judges took into account criteria such as exterior and interior design, comfort and ergonomics, performance, safety, emotional appeal, and after sales service including the comprehensiveness of its warranty.

The Overall Car of the Year winner was selected from the list of 14 category winners.

The Car of the Year Awards is the country’s first motoring award and this year’s awards marks the 10th anniversary of the awards which was launched in 2002 by Cars,
Bikes & Trucks, the motoring section of the New Sunday Times, as a means to acknowledge achievements within the motoring industry.

The event is endorsed by the Malaysian Automotive Association.












NST/Maybank Car of the Year 2011 Winners:

Overall Car of the Year & Coupe/Cabriolet of the Year – Peugeot RCZ
Compact Car of the Year - Hyundai i10 1.25 Kappa
Premium Compact Car of the Year – Volkswagen Polo TSi
Family Car of the Year – Kia Forte 2.0SX 6-speed
Executive Car of the Year – Nissan Teana
Premium Executive Car of the Year (below RM300,000) – Skoda Superb
Premium Executive Car of the Year (above RM300,000) – Jaguar XFS 3.0D
Performance Car of the Year – Renault Megane RS250
Limousine of the Year – Jaguar XJL 3.0D
MPV of the Year – Ford S-Max Ecoboost
SUV of the Year (below RM150,000) – GWM Haval H5
SUV of the Year (above RM150,000) – Hyundai Santa Fe 2.2 VGT (Diesel)
Pick-up Truck of the Year – Nissan Navara King Cab

Special Mention Awards

Eco Innovation Award – Toyota Prius
Automotive Man of the Year – JP Chin
People’s Choice Award – Perodua Myvi

Parts shortage from Thailand forces Honda Malaysia to stop production

SOURCE: CLICK ME

In a statement, the company said the floods have caused a huge number of factories in the supply chain to shut down, which include Honda Automobile (Thailand) Co Ltd and other major suppliers which supply parts to Honda Malaysia.

However, Honda Malaysia is actively accessing the situation and its parts suppliers’ recovery.
Honda Malaysia is also studying the feasibility of sourcing parts from other countries until its suppliers’ production in Thailand returns to normal.

“We announce with regret that we have to temporary halt production in Pagoh Plant, in Malacca due to parts shortage.

“We apologise for the delay of delivery and we appreciate the understanding of our customers. We are doing all we that can within our capacity to recover the production here in Malaysia as soon as possible,” said Honda Malaysia managing director and chief executive officer Yoichiro Ueno.

Assembling work at Honda Malaysia's Pagoh plant has 
stopped from today.

“The good news is that all our fully imported models such as the Insight, Stream and Freed are not affected, except for Jazz that is imported from Thailand, which we have sufficient stock to meet the current market demand,” he added.

Asian Honda Motor Co Ltd has recently donated 100 million baht (RM10mi) to Thai Red Cross Society to help flood victims in Thailand.

Honda Malaysia will keep its customers informed of the plant’s progress and it looks forward to bringing good news to the customers.


END OF SOURCE...

My (Jeff Lim's) comments: Two days ago, I visited a Honda Showroom in Petaling Jaya. The Salesgirl told me that they have Limited stocks (while stock lasts) for ALL CKD Hondas and Honda Jazz. >10 units Civic 1.8 and 2.0, >15 units NEW Accord, >15 units New City, >10 units New Jazz in Malaysia

.  Next batch of CKD will arrive only in February Earliest. As a result they "DON'T HAVE CAR TO SELL". Honda Malaysia were forced to bring the CR-Z and Jazz Hybrid to Malaysia earlier than expected. The CR-Z's coming in 2 weeks time while the Jazz Hybrid is coming in December.

In a meantime, Freed (Indonesian Made), Stream and Insight production uninterrupted.

Proton eyes world market in pact with Hawtai

Sunday, October 23, 2011


Proton eyes world market in pact with Hawtai

NANNING (China): Proton is not only planning to expand its presence in China through Hawtai Motor Group Ltd but will be using the partnership as a springboard to the world market.


It's not your typical joint venture. It's a cooperation that covers many areas," said Proton chairman Datuk Seri Mohd Nadzmi Mohd Salleh.

"We are looking at the low-cost base of China. We should capitalise on that.

In Malaysia, it's difficult for us to achieve economies of scale because of our low volume."
proton.jpg
Mohd Nadzmi (right) and Syed Zainal Abidin.


"Going to China, we can leverage on its low-cost base, especially on the component industry, which is important because 70% to 75% of the cost of a car comes from its components," he said.

Proton exchanged a memorandum of understanding (MoU) with Hawtai Motor at a roundtable dialogue between Malaysian Prime Minister Datuk Seri Najib Tun Razak and Chinese CEOs here on Friday.

Speaking to Malaysian journalists covering the 8th China-Asean Expo here, Mohd Nadzmi said the MoU would result in an agreement in about 90 days and during the period both parties would study how the cooperation would take place.

"We are talking about product collaboration. Immediately, our (Proton) Saga is ready to come to China, followed by the Exora and also our new model that we will make available for this collaboration with Hawtai," he said.

Proton managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said both parties were still discussing whether to use Proton brand or Hawtai brand in selling cars in China.

"What we look forward to is one day to get our cars produced in China. From China, we can export to other left-hand-drive markets, for example, the Middle East.

"The production cost will be much more competitive. This is one of the big objectives we have.

"We can't rely on Malaysia to export left-hand-drive vehicles. We can use China as a base and because they have a big volume here and our partner will provide us with the facility, knowledge and infrastructure," he said.

Syed Zainal Abidin said Proton products in the C and B segments would complement Hawtai Motor's 4X4 vehicles and D-segment sedans.

Hawtai also has a major plant producing diesel engines for the domestic and export markets.

"So we can also use their diesel technology in our cars to exploit the diesel market, for example, in India," said Syed Zainal.

So, the discussions are not only about products but also on technology transfer."

Hawtai Motor has an annual production capacity of 200,000 vehicles, 300,000 engines and 300,000 auto transmissions.

As for the China market, Syed Zainal said Proton was targeting sales of 50,000 to 100,000 per year and for every unit, Proton would receive revenue whether in terms of components or sales or royalties for the technology transferred.

He also said Proton would not be sourcing parts from China for its Malaysian operations.

"Our priority to support our local vendors."

On Youngman Automobile Group,Syed Zainal Abidin said: "Our relationship with Hawtai is complementing our existing relationship with Youngman. We will continue to support Youngman based on our current business arrangement,"

"Youngman is a straight forward licensing agreement. Hawtai is a different arrangement altogether ... different platform, so there is no conflict of relationship with Youngman," he added.
-Bernama

Latest from Ayutthaya - Toyota's three factories shut down

October 19, 2011  By KON

SOURCE: CLICK ME

The situation at the flood-hit Thai region of Ayutthaya continues to worsen. Last week, we reported that Honda has halted operations of its plant there. Toyota, whose three plants are all situated away from Ayutthaya, is not directly affected.

Toyota Corolla Altis - one of many Thai-assembled Toyota models in Malaysia

However, according to a media statement released by UMW Toyota Motor Sdn Bhd today, Toyota Motor Thailand Co. (TMT) has decided to halt operations at its three plants at Samrong, Gateway and Ban Pho due to shortage of parts from affected suppliers.

An extended shut down of these three plants will inevitably affect the Malaysian market as they supply majority of UMWT's fully-imported CBU models and CKD kits for its locally assembled models. At this moment, however, UMWT has stated that deliveries for October 2011 are not affected, although this will not continue if the flooding situation worsens.


“Our commitment to our customers remains topmost in our priority. We are closely monitoring on the parts supply situation in Thailand and will provide any updates or information in a timely manner. We sincerely hope for the quickest possible recovery and appreciate our customers and business partners understanding during these difficult times” said En. Ismet Suki, President of UMW Toyota Motor.

Car production bases to remain in Thailand despite floods

 

(picture source AFP)

BANGKOK: Despite the floods, car makers will not shift their production bases from Thailand but will only suspend production due to the shortage of auto parts, Thai News Agency (TNA) reported.


Piangjai Kaewsuwan, president of the Thai Automotive Industry Association, said on Thursday although industrial estates in Ayutthaya province were flooded and automobile and auto parts manufacturers affected, the floods should not prompt car-making companies to move their production bases from Thailand because it was a temporary natural disaster.

Piangjai, however, said she expected the supply of auto parts to drop by 10-20 percent.

She added that the Thai automotive industry should take at least three months to recover and that the actual automobile production should reach at least 1.5 million units this year instead of the annual production target of 1.8 million vehicles.

Toyota, Ford, Nissan and Isuzu companies have so far suspended their production for two days to assess the situation, saying they may source auto parts from China and India instead.

Meanwhile, Anuparp Tadpitakkul, state affairs director of Ford Operations (Thailand) Co, said the company suspended its production for two days to examine its stocks of parts as seven plants were affected.

However, he said he did not think the floods will have an impact on the long-term investment of the company in Thailand.

Some 10 Malaysian companies have been found affected by the severe flooding.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said most of them were involved in the automotive and electrical and electronic sectors.

"Those who are affected operate in the flooded Ban Wa, Rojana and Navanakorn industrial parks," he told reporters after the ministry's monthly assembly in Kuala Lumpur today.

The Thai News Agency reported Deputy Prime Minister Kittirat Na-Ranong as saying that the ongoing flood crisis could reduce the country's GDP growth by at least 0.6-0.9 per cent due to expanding damage to its farm and industrial sectors.

 -Bernama(Photo by AFP)

Floods disrupt auto production in Thailand

BusinessWeek

BANGKOK
Severe flooding has forced a halt to Honda's and Toyota's assembly lines in Thailand that account for about 7 percent of their combined global car production. American automakers Ford and General Motors are faring better.

Typhoon-driven flooding has whipsawed the Southeast Asian country since late July, killing more than 280 people and inflicting billions of dollars in damage. Flood waters from higher ground in northern and central Thailand are now menacing the capital Bangkok.

The disruption to production at Toyota Motor Corp. and Honda Motor Co. comes just as they bounce back from the March 11 earthquake and tsunami in Japan that destroyed autos parts suppliers and upended car production around the world.

Source (click me)

Three Honda models due for 'product update'

Monday, September 05, 2011

Three Honda models due for 'product update'

PETALING JAYA: Honda Malaysia today announced a "product update campaign" on the Civic, City and Jazz.

The vehicles involved in the campaign are Civic 2006 year-model (YM) - 2008YM, City 2006YM-2007YM and Jazz 2005YM-2007YM.

The affected cars are (from bottom to top) Jazz, City and Civic.

Honda Malaysia said all current selling models are not affected.

“Honda Malaysia would like to apologise to all customers for the inconvenience caused," said Honda Malaysia managing director and CEO Yoichiro Ueno.

"The campaign aims to implement a few preventive measures against technical failure. This is an early call for inspection and replacement, of which we believe could sustain the best product performance for customers in spite of the technical irregularities.”

For Civic 2006YM-2008YM, the power steering feed hose may leak oil when the hose deteriorates after running in hot and humid weather. Though the affected units may not cause serious safety issues, the possibility of a technical breakdown might show in the future.

Honda Malaysia will change the rubber material for the power steering feed hose to improve its heat resistance. The campaign is expected to involve 16,537 units of Civic 2006YM-2008YM.

Meanwhile, City 2006YM-2007YM and Jazz 2005YM-2007YM are prone to possible failure of the power window master switch, which under certain conditions, could cause a minor short-circuit resulting in a burnt smell.

Honda Malaysia undertakes to change all the affected units with a counter measure power window switch. The product update campaign will involve 20,949 units of City 2006YM-2007YM and 2,970 units of Jazz 2005YM-2007YM.

The company said necessary replacement would be carried out when the parts are ready and it would bear all costs incurred.

All owners of affected units involved are to send their vehicle to an authorised dealer as soon as they receive notification from the company.

For more information, call Honda’s toll-free number at 1-800-88-2020 or visit any authorised Honda dealer. Customers are advised to call for an appointment to avoid long waiting hours.

SOURCE