Channel 0102 Automotive | Auto industry

Award for new Bosch motorcycle ABS ADAC, Europe’s biggest automobile association,pays tribute to road-safety potential

2010-02-16T11:58:00.000-08:00

Europe’s biggest automobile association has conferred an award on the new Bosch antilock braking system (ABS) for motorcycles. Presenting its “Gelber Engel” (yellow angel) award, the German ADAC pays tribute to the great potential for more road safety offered by this new Bosch development. The modular design of generation 9 allows various levels of sophistication, from a system with basic functions to a high-performance ABS. The “ABS9 base” variant weighs just 0.7 kilograms, and is half the size and weight of the previous generation. “Our entry-level ABS is by far the most compact system in the market,” says Dr. Werner Struth, president of the Bosch Chassis Systems Control division. “Its cost-optimized design makes an ABS affordable for all classes of motorcycle for the first time.” The new ABS enables a wider proliferation and can make motorcycling considerably safer.

Bosch has been manufacturing brake control systems for motorcycles since 1994. While all the ABS systems on the market were previously based on passenger-car technology, engineers at the Bosch competence center in Japan have now designed a new ABS specifically for motorcycles. A first variant of generation 9 already went into series production in November 2009. Up to now, only every tenth new motorcycle manufactured in Europe is equipped with ABS. Worldwide, the figure is only every one-hundredth bike. By way of comparison, the figure for passenger cars worldwide has now reached 80 percent.

Because of the lack of passive safety, motorcyclists are especially at risk in accidents. In Europe and Brazil, for example, nearly one in six road deaths is a motorcyclist, and the proportion is much higher in India and China. For the same distance traveled, the risk of a fatal accident when riding a motorcycle in Europe is 20 times greater than when driving a car. In this context, experts believe that the antilock braking system provides a huge boost to safety. It allows motorcyclists to brake safely in critical situations without locking the wheels, and without having to fear an inevitable fall. Braking distance is also reduced considerably. A study by the Insurance Institute for Highway Safety (IIHS) in the U.S., for example, shows that if all motorcycles were equipped with ABS, 28 percent of all fatal motorcycle accidents could be prevented. And a study presented by Vägverket, the Swedish highways authority, in 2009 shows that 38 percent of all motorcycle accidents involving personal injury and 48 percent of all serious and fatal accidents could be prevented with the help of ABS.

Honda’s 2009 exports from Thailand exceed 71 billion baht Anticipates 2010 exports could reach 90 billion baht

2010-02-07T03:28:00.001-08:00

Asian Honda Motor Co., Ltd., Honda’s Bangkok-based Asia & Oceania Regional Headquarters, today reported that exports of Honda’s products from Thailand during 2009 reached 71,006 million baht, representing a 32% decline compared to 2008. Exports in Q4 reached 19,477 million baht, down 17% from the same period last year. The increase in exports for the last quarter of 2009 represents a significant improvement as the global economic situation continued to recover.

Mr. Fumihiko Ike, President & CEO, Asian Honda Motor Co., Ltd. said, “In 2010, we believe the auto industry will be more stable. Honda’s 2010 exports are projected to grow by 27% to a total value exceeding 90,000 million baht, mainly contributed by an increasing demand of automobiles in Australia and other countries in Asia. However, we need to consider many factors such as an uncertainty in oil prices or foreign exchange rates. To ensure our competitiveness in the global market, Honda is continuing to develop new products. We launched the new PCX scooter model in Thailand in September 2009 and plan to begin exporting the PCX to Japan, Europe, the United States and other Asian countries in early 2010.”

In 2009, Honda’s exports from Thailand reached 71,006 million baht. Exports were driven by automobile CBU and CKD units which accounted for 43,072 million baht, or 61% of total export value. This was followed by motorcycle CBU and CKD exports at 16,272 million baht, representing 23% of the total value; and power products at 8,009 million baht, or 11% of the total value. Remaining exports included spare parts, accessories and dies & molds worth 3,652 million baht, or 5% of the total export value.
Automobiles:

In 2009, the total value of Honda’s automobile CBU and CKD exports declined 34% to 43,072 million baht. Automobile CBU exports reached 38,055 units, which is a 47% drop in value to 20,736 million baht. Automobile CKD exports were 308,940 units, a decline of 14% in value to 22,336 million baht. Automobile CKD exports experienced less of a decline than automobile CBU exports due to the impact of local economic stimulus plans in many countries among the region.

Honda exports five models – the City, Jazz, Civic, Accord and CR-V – to over 40 countries worldwide with key markets including Australia, ASEAN, the Middle East and New Zealand. The City is the most successful export model, with 13,726 units representing 36% of total volume, followed by the Civic at 9,343 units and the Jazz at 7,099 units. These three models account for 79% of total exports, which clearly indicates the growing trend towards small passenger cars in the world market. Australia accounted for 59% of total export volume, followed by Indonesia and Philippines.
Motorcycles:

The total value of Honda’s motorcycle CBU and CKD exports in 2009 decreased by 31% to 16,272 million baht. Motorcycle CBU exports in 2009 dropped 59% by volume to 10,214 units and 65% by value to 547 million baht. Total 2009 exports of motorcycle CKD decreased 29% by value to 15,726 million baht. Honda exports the Innova and the CBR125 as CBU models to the key markets in Europe. For motorcycle CKD, ASEAN is the key markets. In early 2010, Thailand will further serve as the global manufacturing base for the PCX, which Honda plans to export to Japan, Europe, the United States and other Asian countries.
Power Products:

Thailand is Honda’s primary global production and export base for its power products, which are currently exported to over 80 countries around the world to key markets including Europe and the United States. During 2009, exports of power products decreased 24% by volume to 1,325,287 units and 21% by value to 8,009 million baht. Although demand for power products in the US market remained stagnant, the overall decline was better than expected due to the expansion of Asian markets.
Other exports:

In addition to its three primary export product lines, Honda also exports spare parts, accessories, jigs and molds from Thailand to many global markets. The export of spare parts also declined 33% during 2009 to 3,652 million baht.

Honda is one of the world’s leading producers of advanced technology mobility products. It is the world’s largest manufacturer of clean, fuel-efficient internal combustion engines and the largest producer of motorcycles. Honda started exporting from Thailand in 1987 and the value and volume of product exports from Thailand has constantly grown. By end of 2009, the cumulative value of Honda exports from Thailand has reached 625,836 million baht.

Mitsubishi Motors introduces “White Pearl Collection”

2010-02-07T01:50:00.000-08:00

Mitsubishi Motors Thailand refers to month of love introducing White Pearl Collection to response customer need and boost sales volume. The new collection will be available in Lancer EX, Pajero Sport and Space Wagon models which lunching event will be held at 10 department stores and Mitsubishi showroom nationwide. Customer who buys all modes can join, get special sales campaign and have a chance to win gold bar 10 Baht and other special presents with total value more than 5 million Baht from now to April 6, 2010.

Mr. Nobuyuki Murahashi, President of Mitsubishi Motors (Thailand) Company Limited informs that

“Last year MMTh achieved sales target at 19,626 units while this year the company eyes to reach 30,000 units due to Thai automotive market showed positive signs. I believe that this year total sales volume will be around 600,000units. In order to achieve the target we will focus on unique selling point of each product by arranging activity to establish product awareness at the same time we will improve after sales service quality and dealer network which recently we have just announced to expand dealer network nationwide . In term of product, we introduce “ White Pearl” to be standard color for Lancer EX and boost sales volume by arranging “White Pearl Collection” campaign to provide special offer for customers who buy Mitsubishi car and chance to win lucky draw worth more than 5 million baht. In White Pearl Collection event, there will be many entertainment activities waiting for customers. I believe that this activity will be able to draw attention from local customers and help to boost our sales volume in first quarter of this year.”
Mitsubishi White Pearl Collection models

Mitsubishi White Pearl Collection will be available in Lancer EX, Pajero Sport and Space Wagon which appear with more luxury in special body color “White Pearl” and still keep the complement of each model in design, performance and safety.

Kunka Corporation will launch 2 new motorbikes for the 1st time in Asia at Bangkok Motorbike Festival 2010

2010-01-29T23:43:00.001-08:00

Kunka Corporation will launch 2 new motorbikes for the 1st time in Asia at Bangkok Motorbike Festival 2010 to be held during January 28-31, 2010 at the Central World.

For the 1st time in Asia, Kunka Corporation will launch 2 new motorbikes, i.e. premium KTM from Austria, after being granted a sole distributorship in Thailand, and two new CAN-AM SPYDERs (RS 2010 and the latest RT models) from Canada, at Bangkok Motorbike Festival 2010 to be held during January 28-31, 2010 at the Central World. With an investment budget of 50 million Baht, the move is made in response to the growing big bike market of 10-15% and its annual sale target of 80 million Baht. Besides the event, the company will also open a luxury downtown showroom on New Petchburi Road for test rides and after sales services as part of its plan to strengthen brand loyalty and foster its customer base.

Mr. Pisit Kunanantakula, CEO of Kunka Corporation Co., Ltd., reveals today that after the company has rocked the market by importing sport CAN-AM SPYDER motorbikes for sales in Thailand last year, it will press on to create a new phenomenon in the market in early 2010 by launching premium KTM bikes from Austria and two new CAN-AM SPYDERs to serve the needs of niche customers who fancy European-make sport motorbikes at Bangkok Motorbike Festival 2010 to be held during January 28-31, 2010 at the Central World.

“Last year 1.5 million motorcycles were registered. Out of that figure, big bike market was at 13,138, while sport bike was at 10,498. These implied about the same market share of 1%, while it is expected that the two segments will enjoy a growth of 10-15% in 2010 in tandem with improving economy and stability in the local political scene. In addition, the high growth would be due to the fact that the two segments still have a low base and this will be the first year that Thailand starts to implement its AFTA agreement, which will literally bring down import duty to 0% and make the prices of these two bikes more affordable for those who want to own them. As a result, this will stimulate more first-hand bikes into the market to replace those second-hand ones and make us feel confident to set aggressive sale target at 80 million Baht this year.” said Mr. Pisit.

KTM is among the World’s top motorbikes. With long standing records and history, it ranks top in the World’s most extensive product varieties offering approximately 30-40 models in every section, whether street bike or race bike, while the fact that KTM chooses Kunka Corporation as its sole importer and grant its sole distributorship in Thailand to Kunka Corporation from a long list of bidders is a proof that KTM is confident in Kunka’s solid business foundation and sound business management profile.

“We are proud that we are granted a sole distributorship in Thailand. This is a major milestone towards our goal of being the leader in auto innovation. With this initial launch of KTM at Bangkok Motorbike Festival 2010, we will also market TRAVEL ENDURO, NAKED BIKE and SUPER BIKE, which are 690 cc or more street bikes, for the 1st time in Asia and we want all the Thai fans for premium sport motorbikes with exceptionally powerful performance to be the first to witness.” Mr. Pisit further added.

In this event, Kunka Corporation will also launch two new CAN-AM SPYDERs, i.e. RS 2010 and RT models, which are the latest BRP (Bombardier Recreational Product) models from Canada. Besides Thailand, this would also be the 1st official launch in Asia, with special highlight spotted on the RT sport model, which offers a new innovation in auto technology. With its 100 horse power engine, it is strictly produced to ensure luxury quality. It should be interestingly noted that Kunka Corporation also has the exclusive distributorship for CAN-AM SPYDER in Thailand.

As part of its marketing plan to service the two world class brands, Kunka Corporation has invested a budget of 50 million Baht to build up a downtown showroom on New Petchburi Road in addition to its original showroom on Srinakarin Road. The new showroom, which is expected to complete in 2Q10, will include auto exhibits and hi-tech service section in order to provide the best after-sale services to all customers. All of its technicians will be thoroughly trained and equipped with all kinds of service techniques from the two principles to ensure that it is the best and most complete in Thailand.

Talking about distribution channel and after sale service centers for KTM, besides the two showrooms in Bangkok, Kunka Corporation also has a plan to expand its showrooms to the north and northeast within this year. It will focus its activity on event marketing in order to continuously communicate with its targets. In order to cement brand loyalty, it will offer supplementary services and decorative product items; provide a modern design lounge as a social meeting place as well as set up the Rider Club for KTM fans in the near future. On top of those that have been mentioned, it will also implement Customer Experiential Marketing (CEM) strategy to differentiate itself from the rest of the market through aggressive test rides so that those interested could actually experience the performance and feel the power of its engine.

Mercedes-Benz Reveals 2 CKD Models to Start Off the Year 2010

2010-01-24T07:08:00.000-08:00

Prof. Dr. Alexander Paufler (3rd from left), President & CEO and the management team of Mercedes-Benz (Thailand) Ltd. welcome Mr. Jaturont Komolmis (2nd from left) Senior Vice President, Grand Prix International Co., Ltd., Mr. Anothai Eamlumnow (4th from right), President of Thai Automotive and Motorcycle Journalists Association and Mr. Pattanadesh Asasappakij (3rd from right) Managing Director, Advance Activity Co.,Ltd. to “Meet the Press” event to announce the company’s performance in 2009 and to introduce 2 CKD models: the new generation S-Class (W 221) and E 300 AVANTGARDE (W 212) at JW Marriott Hotel recently.

Tata Motors wins biggest tally of auto awards so far for this year

2010-01-17T05:27:00.001-08:00

After winning the 2010 ICOTY (Indian Car of the Year Award) and the Jury Award at the BS Motoring Car of the Year Award, both for the Nano, the company has won 9 other awards in the ‘CNBC TV18 Overdrive 2010 Awards’, ‘ET-ZigWheels Car and Bike of the Year Awards’, and the ‘Auto India Best Brands Awards’.

In the ‘CNBC TV18 Overdrive 2010 Awards’, the Nano received the Car of the Year Award and the Compact Car of the Year Award.

In the ‘ET-ZigWheels Car and Bike of the Year Awards’, the Nano was once again declared as the Car of the Year. It also won the ZigWheels.com Viewers Choice Car of the Year, Best Design and Best Value for Money Car Awards. The Indigo Manza was declared as the Best Entry-level Sedan of the Year. Tata Motors, as a company, was awarded the 2009 Car Maker of the Year title for its resilience in testing times.

In the Auto India Best Brands Awards 2010, the Tata brand has been declared as the Best Value for Money Brand.

Continental's Emergency Brake Assist on the road to success: another car manufacturer adopts the infrared sensor system

2010-01-02T01:15:00.000-08:00

In 2010, another car manufacturer is to adopt the proximity sensor for the Emergency Brake Assist (EBA) city version, developed by Continental and first installed in the Volvo XC60. At city driving speeds, the system's infrared sensor supplies data for automatic brake application to prevent rear-end collisions.

Frankfurt am Main, Germany, September 15, 2009. The international automotive supplier Continental has convinced another European vehicle manufacturer to adopt its proximity sensor for the Emergency Brake Assist (EBA) city version for the prevention of rear-end collisions. The sensor system monitors the road ahead of the vehicle and is networked with the braking system. It automatically applies the brakes if there is a risk of a nose-to-tail collision and the driver either fails to react or his reactions are too slow. Continental supplies the infrared sensor, which monitors the road ahead and detects hazards, and the electronic braking system, both of which are core components.

Preventive intervention at speeds of up to around 30 km/h The risk of rear-end collisions is particularly great in city traffic with its constant alternation between braking and accelerating. 75 percent of accidents recorded by the police occur at speeds below 30 km/h. It is precisely at these speeds, in slow-moving or in "stop and go" traffic, that this sensor system, developed and produced by Continental based on the Closing Velocity (CV) sensor, reduces the risk of a rear-end collision. Fitted level with the inside mirror in the area cleaned by the windshield wiper, this sensor uses three laser beams to scan the road conditions ahead up to a distance of around eight meters. The sensor picks up vehicles which are stationary or traveling in the same direction. If the gap is less than the distance regarded as critical at the current speed, the system applies the brakes automatically.

If the maximum speed differential between the vehicles was 15 km/h, a rear-end collision would be avoided in most cases. And, at greater relative speeds, the severity of the impact would be considerably mitigated. At the same time, the system optimizes occupant protection by providing additional data to the airbag control unit and triggering the restraint systems as required. Dr. Ralf Cramer, President of the Chassis & Safety Division and member of the Executive Board at Continental: "Tailor-made solutions for all vehicle classes and applications are ideals that we make possible with our scalable modules. The adoption of this system by another manufacturer brings us a significant step closer to our 'safety for everyone' target and will prevent numerous accidents and injuries."

With sales exceeding €24 billion in 2008, the Continental Corporation is one of the top automotive suppliers worldwide. As a supplier of brake systems, systems and components for the powertrain and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers, the corporation contributes towards enhanced driving safety and protection of the global climate.

Continental is also a competent partner in networked automobile communication. The corporation currently employs approximately 134,000 at nearly 190 locations in 37 countries

The Automotive Group is one of the leading global automotive suppliers. With its three Divisions Chassis & Safety (5.1 billion €, 27,000 employees), Powertrain (4 billion €, 25,000 employees) and Interior (5.9 billion €, more than 30,000 employees) it achieved sales of approximately 15 billion € in 2008. The Automotive Group is present in more than 130 locations worldwide. As a partner of the automotive and commercial vehicle industry, it develops and produces innovative products and systems for a modern automotive future, in which a car accommodates individual mobility and driving pleasure to driving safety, environmental responsibility and cost-efficiency.

The Chassis & Safety Division develops and produces electronic and hydraulic brake and chassis control systems, sensors, driver assistance systems, air bag control systems, washer systems as well as electronic air suspension systems. Its core competence is the integration of active and passive driving safety into ContiGuardฎ. The Powertrain Division integrates innovative and efficient system solutions for vehicle powertrains. The comprehensive range of products includes gasoline and diesel injection systems, engine management, transmission control, including sensors and actuators, as well as fuel-supply systems and components and systems for hybrid drives. Information management is at the very heart of the Interior Division. The range of products includes instrument clusters and multifunctional displays, control units, electronic car-entry systems, tire-monitoring systems, radios, multimedia and navigation systems, climate control systems, telematics solutions as well as cock pit modules and systems."

J.D. Power Asia Pacific Reports: Satisfaction with Engine/Transmission Performance and Audio/Entertainment/Navigation Systems

2009-12-16T20:18:00.000-08:00

Honda and Toyota Models Earn Two APEAL Segment Awards Each; Isuzu Receives One Award

Engine and transmission performance for passenger cars and audio/entertainment/navigation system performance for pickup trucks are becoming more important to new-vehicle owners in Thailand, while the importance of fuel economy has declined across the industry, according to the J.D. Power Asia Pacific 2009 Thailand Automotive Performance, Execution and Layout (APEAL) StudySM released today.

Now in its seventh year, the APEAL Study is an owner-reported measure of what gratifies owners in Thailand about their new vehicle’s performance and design during the first two to six months of ownership. The study examines nearly 100 attributes covering 10 vehicle categories: exterior; interior; storage and space; audio/entertainment/navigation; seats; HVAC; driving dynamics; engine/transmission; visibility and driving safety; and fuel economy. APEAL study performance is reported as an index score based on a 1,000-point scale, with a higher score indicating higher satisfaction.

The overall APEAL score in 2009 averages 871, down by five points from 2008. Satisfaction in 2009 has decreased from 2008 in seven categories, with only three categories—fuel economy, seats, and HVAC—improving in 2009.

“It is worth noting that satisfaction has decreased in seven categories in Thailand in 2009 and increased in only three,” said Loic Pean, country manager at J.D. Power Asia Pacific, Bangkok. “In an increasingly competitive market where vehicle quality is showing great improvement, it is critical for automakers to distinguish themselves from their competitors by creating product differentiation through performance and design.”
Model Results by Segment

The Honda Jazz ranks highest in the entry midsize car segment for a second consecutive year with an overall APEAL score of 869. The Nissan Tiida (856) and Toyota Yaris (851) follow in the segment rankings.

In the midsize car segment, the Honda Civic (880) ranks highest. Following the Honda Civic in the segment rankings are the Mazda3 (878) and Toyota Corolla Altis (875).

Among sport utility vehicles, the Isuzu MU-7 (897) ranks highest, and is followed by the Mitsubishi Pajero Sport (884).

In the pickup extended cab segment, the Toyota Hilux Vigo Prerunner Smart Cab (891) ranks highest, followed by the Isuzu D-Max Spacecab/Rodeo (882).

In the pickup double cab segment, the Toyota Hilux Vigo Prerunner (897) ranks highest and is followed in the rankings by the Toyota Hilux Vigo (884).
Additional Industry Findings

The study finds that owners of pickup trucks and utility vehicles in Thailand are more satisfied, on average, than owners of passenger cars.

However, while overall satisfaction among passenger car owners is not as high as that of pickup and utility vehicle owners, overall passenger-car owner satisfaction has increased by three points in 2009 compared with 2008, to an average of 862. Meanwhile, overall satisfaction among pickup owners and utility vehicle owners has declined from 2008 by six points and three points, respectively.

“In 2009, we have observed an increase in consumer interest in passenger-car models, mostly due to significant improvements in fuel economy in these models,” said Pean. “However, satisfaction levels for pickup truck models are still higher than those of passenger car models, on average, indicating that pickups are still very popular among owners in Thailand.”

The study also finds that, among owners with particularly high levels of satisfaction (averaging 900 or higher), 81 percent say they “definitely would” recommend their vehicle model. In contrast, among owners with lower levels of satisfaction, fewer than 59 percent say they “definitely would” recommend their model.

“In order to retain repeat buyers and foster word of mouth advocacy for their brand, manufacturers need to focus on producing vehicles with features and styling that go beyond satisfying owners to truly gratifying them,” said Pean. “This is likely a key reason why the importance of audio and navigation system performance has increased among new-vehicle owners in Thailand.”

The 2009 Thailand APEAL Study is based on evaluations from 3,518 owners who purchased their new vehicle between October 2008 and July 2009. The study includes 58 different passenger car, pickup truck and utility vehicle models covering 11 makes. The study was fielded between April and September 2009.

Campaign "Pleasurable Journey, Lexus’ Pride"

2009-12-16T18:46:00.001-08:00

Lexus Bangkok welcome the greeting season for superior and safety travel during the coming New Year festival with the launch of “Pleasurable Journey, Lexus’ Pride” campaign set to give privileges to Lexus customers. Under the campaign, the customers will enjoy free 24-item check-up for their Lexus vehicles, together with special discounts for brake pads and choke up of up to 20% plus another 10% discount for synthetic lubricant and lubricant filter. All models of Lexus vehicles will be able to receive the free check-up service from today until January 31 next year at Lexus Bangkok Service Center.

Meet MAZDA Sports Cars at the Motor Expo 26th leading by the New Mazda CX-9; a Luxury Zoom-Zoom 7-Seater Crossover

2009-12-07T12:10:00.002-08:00

Lightweight Technology adds spice to the new Mazda2

Mazda Sales Thailand revealed that Mazda Zoom-Zoom concept will be enhanced at the 2009 Motor Expo event. All models will be displayed in "A Soul of Sports Car" family from small sports car new Mazda2, distinguished design Mazda3, sports pick-up truck BT-50, world Guinness record sports roadster MX-5 to the luxury crossover new Mazda CX-9.

At Impact Challenger, Muangthong Thani, Mazda customers will experience a brand new technique of vehicle presentation. Mazda's "Lightweight Technology is displayed at this show after it has been globally recognized by the success of fun-to-drive sports roadster MX-5. Customers will also enjoy special offers vary from low interest rate 1.99% for Mazda3 and minimal monthly installment at 6,666 baht for popular BT-50 Hi-Racer.

John Ray, Managing Director of Mazda Sales Thailand said that "In the current highly competitive market, the launch of the New Mazda2 is a strategic move that helps strengthen Mazda brand and make Mazda emerge as a HIT brand in Thailand. Our recent launch of the New Mazda2 is a remarkable success and will prove to be a key milestone in the 58 year history of the Mazda’s business in Thailand. The quality attributes of the Mazda2 are demonstrated with this car winning 51 awards worldwide including the prestigious 2008 World Car of the Year award. Only two weeks after its introduction, the New Mazda2 has been overwhelmingly received by Thai consumers and has achieved customer orders over 2,800 units".

Today at the 2009 Motor Expo, you will also experience the launch of the new Mazda CX-9, the luxury 7-seater crossover. The New Mazda CX-9 combines the exhilaration of Mazda's sports heritage with premium craftsmanship and luxury appointment a best in class crossover SUV.

The new Mazda CX-9 offers all senses of sports luxury SUV that comes with a piece of mind package of 3 years/100,000 kilometers Scheduled Maintenance package and 24hr. Roadside Assistance service at the retail price of 3,690,000 Baht.

John adds that "There are more to excite at Mazda. The award winning, all-time favorite Mazda3 continues to gain popularity with a market share growth YOY of almost 37%. We also have the world’s best selling sport roadster, the Mazda MX-5 and our powerful sport pickup, BT-50 with intelligent DE-S suspension for superior handling. We are also offering an exciting range of special promotional campaigns for new Mazda customers that are available only at the Motor Expo. Most significantly, we will continue to make every effort to further enhance our sales and after-sales service strategies with customer satisfaction always our top priority."

Mazda Motor Expo deal: The New BT-50 sport pickup FSC VCD, V Hi-Racer and V Hi-Racer+ models, with intelligent DE-S suspension system, offers a low interest rate starting at only 0.99% or FSC V CD get the lowest monthly installment at 6,666 Baht and one-year full coverage insurance. The Mazda3, entry price 777,000 Baht, offers a low interest rate starting at 1.99%, a maintenance package for up to 3 years or 60,000 kilometers and one-year full coverage insurance. New Mazda MX-5 offers 5 years warranty, a maintenance package for up to 3 years or 100,000 kilometers and one-year full coverage insurance. The promotion runs until December 13, 2009.

Furthermore, customers who purchase New Mazda2 and New Mazda CX-9 will get one-year full coverage insurance. First 2,000 customers who reserve and purchase New Mazda2 within this year will get The Twilight SAGA: New Moon imported premium from USA worth 500 Baht, such as wristwatch, T-Shirt and dog tag. Special offering in Motor Expo event at Impact Challenger, the prospects who do test drive will get the limited Zoom-Zoom mug worth 199 Baht and the first 1,000 customers who do booking will get Zoom-Zoom bag worth 999 Baht when purchase by December 31, 2009.

The 26th Thailand International Motor Expo will open for public from December 2 – 13, 2009 at Impact Challenger 1 – 3.

There’s no better way to experience the dynamic and ultimate ‘Zoom-Zoom’ driving excitement than being behind the wheel yourself, so I would urge you to test drive a Mazda vehicle at the Motor Expo. Test drive is also available at Mazda 106 authorized showrooms nationwide.

Mazda has a 58 year-old relationship with Thailand and, through a strong dealer network, will continue playing a major role in the development of the Thai economy. The company aims to be a car company that brings back childhood emotions by providing vehicles that are daring, ingenious and fun through the Zoom-Zoom concept. The company is dedicated to improving and maintaining a high level of user- friendly after-sales services as customer delight is our first priority. Mazda will turn its brand success to benefit its customers by providing a wider dealer network. The company is operated with business ethics and social responsibilities.

PROTON EXORA Touch the spacious experience to carry 7 adult seats

2009-12-07T12:10:00.001-08:00

Phranakorn Auto Sales Co., Ltd. Proton distributor in Thailand, imported the newest model ”Proton Exora” which is the outstanding MPV. Touch the spacious experience to carry 7 adult seats at 26th Thailand International Motor Expo 2009 in December this year.

Proton EXORA marks PROTON’s entry into the highly popular MPV segment. The EXORA is a culmination of several years of meticulous research and development by PROTON. EXORA embodies the efforts by PROTON to incorporate space, style, performance and safety elements into the design philosophy of the vehicle.

Just like the GEN 2 and Neo, the EXORA shares the same tried and tested 1.6 litre CamPro engine, except that the engine for the EXORA is now added with the CPS (Cam Profile Switching) technology. This engine utilizes two ingenious technologies, CPS (Cam Profile Switching) and VIM (Variable Intake Manifold technology), to give a relatively high power output and rapid response, whilst maintaining a fuel-efficient delivery. These two technologies give the EXORA the best of both worlds by combining the characteristics of two different engines in one compact package. As a result, the usual reduction in torque caused by high-lift camshafts is offset by the long intake runner, whilst the short runner works by helping the engine generate more power at higher speeds.

EXORA is designed to make those long trips with the family a breeze. They key to this is the Lotus-tuned ride and handling that gives the driver a sure-footed, yet comfortable drive on the highway and winding countryside roads. In terms of safety, driver and front-seat passenger will appreciate EXORA’s standard safety features which include twin front airbags - standard in both the Medium Line and High Line variants - and pre-tensioner seat-belts. Other standard safety features include the Anti-lock Braking System (ABS) and Electronic Brake-force Distribution (EBD) to help the vehicle come to a quick and safe stop should the need arise. To top it all, the EXORA offers an extremely strong passenger cell and computer-aided designed crash structure which has helped this MPV achieve the equivalent of Euro-Ncap 4-star safety rating requirements. Other cutting-edge technologies present in the EXORA include a hybrid high-strength “front-end module” and hydro-formed steel components. All these technologies help the EXORA shed weight without compromising on its strength and safety.

On the inside, PROTON’s major technological improvement in the EXORA is demonstrated by the improved sound-proofing technology which allows driver and passengers to have conversations without having to raise their voices. The quietness offered by the MPV also means that occupants of the MPV can enjoy their favourite music or DVD movie (for passengers in Supreme variant) through its high-quality sound system. As an added comfort and driving pleasure for long journeys, the EXORA offers 10 bottle holders strategically located to keep drink bottles within easy reach of driver and passengers. For luggage, the EXORA offers ample space, with six different seat-folding configurations adding more storage flexibility when required. The single-lever seat folding mechanism allows the second row seat to be tumbled easily thus providing a wider opening for passengers to hop on to the third row seat. The rear doors which can open at a maximum angle of 80 degrees enhance the loading and offloading of passengers. The EXORA also offers individual air-conditioning vents on every row providing maximum comfort to passengers on hot days. To complete the luxurious feel, the EXORA Medium line comes with an uncluttered and clean grey interior with fabric seats, whereas the High line comes standard with leather and alcantra.

One of the outstanding features of the EXORA is an electronic device called the Body Control Module (BCM). This feature is usually found in more expensive European makes. The EXORA is the first Proton car to be equipped with BCM and it offers a whole new range of options and gadgets to enhance the vehicle’s practicality and safety. BCM offers over 20 different functions, from “follow me home lights”, to programmable door-locking configurations and wiper speeds, to automatic hazard light activation during emergency braking from above 96km/h and many more.

The EXORA comes in four colors, Genetic Silver, Tranquility Black, Solid White and Gaia Blue which can select in both Medium Line and High Line.

Chevrolet AVEO with New 1.6-Litre Engine to be Officially Introduced

2009-12-07T12:09:00.001-08:00

“Camaro” - the ultimate muscle car from the movie “The Transformers” makes its public debut in Thailand.

Special Sales Offers “Condition to Your Choice” - Customized to suit every style, available for all Chevrolet models.

Chevrolet has officially launched an upgrade to its ‘Compact Car with Big Design’ which comes with increased engine capacity for increased drivability. Accompanying the new AVEO 1.6 is the Thailand debut of the Chevrolet Camaro. Other attractions include a wide range of promotional packages including offers like an affordable down-payments, low interest rates and free first-class insurance.

General Motors (Thailand) Co., Ltd., and Chevrolet Sales (Thailand) Co., Ltd., aim to finish the year on a higher note with the introduction of the upgraded Chevrolet AVEO. The compact sedan is now powered by a 1.6-litre engine offering even better power and torque characteristics for increased drivability.

Besides enhanced performance, the 1.6-liter Chevrolet AVEO also boasts a comprehensive array of safety features including ABS with EBD; air bags; immobilizer; security alarm; fog lights (in selected models); a 2-Din sound system; CD/MP3 stereo and Bluetooth; remote electric mirrors; electric rear-seat flips and folds, and many more.
Here is the AVEO price list;
AVEO 1.6 LSX Bt. 644,000
AVEO 1.6 LT Bt. 674,000
AVEO 1.6 SS Bt. 689,000
AVEO 1.6 LUX Bt. 709,000

Mr. Antonio Zara, Chevrolet Thailand’s Vice President of Sales, Marketing and After-sales Service, said “I’m sure the new 1.6-liter Chevrolet AVEO, with its vigorous and enhanced characteristics, as well as its comprehensive range of features that stress on passenger comfort and optimum safety, will be well-received by the motoring public. Those who know the AVEO already know its exceptional cabin space compared with other compact cars in its range. The AVEO 1.6 has been developed specifically to meet the discerning needs of customers.

Apart from the launch of AVEO 1.6, Chevrolet also showcased its range of cars and trucks, including the ever-popular 1.4-liter AVEO, the Chevrolet Optra CNG – in estate and sedan guise; the Chevrolet Colorado and the class-leading Chevrolet Captiva multipurpose SUV.

However, the star attraction was the special showcase of the Chevrolet Camaro, also known as ‘Bumblebee’ to fans of the Transformers movie. Officially seen in Thailand for the first time, the iconic American muscle-car has managed to marry modern design elements with classic Camaro design cues.

Apart from the displays, customers and visitors to Chevrolet’s booth also had access to professional guidance and consultancy services in owning Chevrolet’s quality used cars at the ‘Chevy OK’ counter. The Chevy Finance Service was also available at the booth to ensure speedy and convenient financial services for customer who are interested in Chevrolet’s products – new or used.

Chevrolet also launched a special campaign known as the ‘Condition to Your Choice’, designed to cater to the varied needs and preferences of customers. Under the campaign, customers can choose the package that best fits their requirements. Packages offered under the campaign include 0% interest for payments of over 36 months with a 25% down payment, or 0.99% interest for 36 monthly installments with a 15% down payment. In both cases, customers will receive free one-year first-class car insurance coverage when purchasing a Chevrolet Colorado, Chevrolet Optra, Chevrolet Optra Estate or Chevrolet AVEO. As a bonus, Chevrolet Optra CNG buyers get up to 10,000 baht of free CNG for the first year.

Themed “Transformers”, Chevrolet’s booth also symbolised the setting-off on a journey with the customers. This marks Chevrolet’s core principal of business, which is to put the customer in the centre of everything it does. Meet Chevrolet’s diversified automotive innovations and enjoy special promotional offers at the Thailand Motor Expo from December 2 to 13, 2009 in Challenger Halls 1 to 3, Muang Thong Thani.

3 Compact Volvos Set to Win Trendsetters’ Heart at Motor Expo 2009

2009-12-07T12:08:00.000-08:00

Three new Volvo models to make official debut at the Motor Expo – S40 sedan and 5-door V50 with the country’s first “powershift” transmission system in benzene-engine compact car segment, and the stylish C30 2.0 R-Design; and showcase XC60 with the world’s first innovative City Safety system.

Sustainability leadership reinforced with the offerings of a wide variety of alternative energy engines, including biodiesel D5 and flexifuel engine that can operate on 100% gasoline, or any blend of gasoline and renewable bioethanol up to 85% (E85), The alternative energy cars include XC60 D5, XC60 D5 and S80 2.5FT Flexifuel

Special accessories in C70 2.4i and XC90- D5 available only in the Motor Expo 2009

Volvo cars today officially launched three of its latest vehicles that not only enhance trendsetters’ lifestyle, but also strengthen Volvo’s commitment to sustainable auto technology and the environment. The three new models are S40, 5-door V50 and C30 2.0 R-Design with “Powershift” transmission system for the first time in benzene-engine compact car segment. Also showcased at the event is a full range of Volvo cars powered by alternative fuel technology that addresses the “Driving … For Sustainability” theme of the Motor Expo 2009.

Chantana Vatanarom, President of Volvo Car (Thailand) Co Ltd, said, “This year, we select all the showcased models that best address the young generation’s demand. The three new compact cars in particular will be able to meet the target audience’ demand in terms of their elegantly simple design, powerful engine with Powershift transmission that offers both responsiveness and fuel efficiency, the compact size of the cars that meet urban trendsetters’ lifestyle, and innovative safety features. All of Volvo vehicles are environmental friendly as they produce low emission and increase fuel efficiency. In short, the Volvo cars are what you are looking for in today environment.”
The right choice of vehicles for the young
The three compact -- S40, V50, C30 R-Design with Powershift

Volvo S40 sedan and Volvo 50 estate are powered by 2.0L benzene engine with four cylinders with Powershift transmission system. Both of them produce impressive 145 Hp at 6,000 rpm and 185 Nm at 4,500 rpm. Average fuel consumption is 12.3 km per litre.

Another compact car highlight is the Volvo C30 2.0 R-Design. The chic coupe for urban people also comes with Powershift transmission system for responsiveness and fuel efficiency. It sets to win the young-at-hearts with its sportier look provided by the special R-Design accessories including body-color coordinated front spoiler, tailgate spoiler with LED brake lights, side skirts, matt silver front grill, side mirror caps in Silk Matt finish, 17-inch aluminum wheels “Serapis”, sport steering wheel with R-Design logo, sport gear shift knob, sport pedals, Deco Inlay in new unique R-Design Aluminum Pattern in the centre stack, gray and beige seat upholstery with R-Design graphic.

True to its “Volvo. For Life” commitment, both Volvo S40 and V50 models are fully equipped with innovative safety technologies. They are equipped with the world’s first and only technology that enables drivers to avoid possible accidents with Volvo’s innovative “Blind Spot Information System (BLIS). BLIS comprises a camera integrated in the side mirror that monitors both sides of the car at the rear and will blink when another vehicle, be it motorcycle, bicycle or car, moves into the blind spot. The system will be activated when the car is driven at 10 kph, enabling the driver to control and drive the vehicle safely during day and night time.

Other safety features include the Intelligent Driver Information (IDIS) that helps drivers concentrate fully on the road; Whiplash Protection System (WHIPS); Side Impact Protection (SIP), Inflatable Curtain that work closely with the front airbags for better head protection in case of side collision; and three-point safety belts with pretensioners.
Powershift transmission system – responsive and saves more than 8% of fuel

All the three models are equipped with the Powershift transmission system. Powershift operates in principle as two parallel manual gearboxes. It has twin wet clutches that work independently of one another. One clutch controls the odd gears (1, 3, 5 and reverse) while the other handles the even ratios (2, 4 and 6). The two clutches operate alternately, with one engaging while the other disengages. This means that at the same time as the engine gets full power and maximum thrust in first gear, second gear is placed in readiness to be engaged. And when second gear has been engaged, third gear is readied, and so on. This promotes a continuous flood of power without any disruption in power delivery or any torque loss, resulting in extremely fast and silky-smooth gearchanges while maintaining acceleration throughout the gearchanging process. It also saves up to 8%of fuel while significantly reducing CO2 emission for sustainable environment.
Meeting different lifestyles across all segments

All the new models fit well for different lifestyles and needs. The Volvo S40 is just right for urban people who look for comfort and safety while the V50 is just perfect for urban families who enjoy short excursion on the weekend. Volvo C30 in the meantime sets to fulfill urban individuals with unique style and good taste for design.
XC60 D5 – impressive power in diesel format

In addition to compact cars, Volvo showcased at the Motor Expo 2009 the XC60 D5 that complements Volvo’s full range of vehicle across all categories. The XC60 D5 is powered by new light-weight aluminum bloc turbo diesel engine that is more powerful and more responsive with 205Hp at 4,000 rpm, compared to its 185Hp predecessor, and 420 Nm torque in the 1,500-3,250 rpm range. The vehicle is more responsive and environmental friendly with complete combustion and efficient filter. The XC60 D5 looks more outstanding with chrome trim sport steering wheel and double exhaust pipes.

The XC60 D5 comes with full safety features, especially the innovative “City Safety”, a world first and unique feature that can help the driver reduce, or even completely avoid the type of low-speed impacts that are common in city traffic and traffic tailbacks. If the car is about to drive into the vehicle in front and the driver does not react, the car brakes itself.

City Safety is active if the car's speed is below 30 km/h (19 mph). In situations where the difference in speed between two vehicles is 15 km/h (9 mph) or less, a collision can be avoided completely. In a potential collision situation in which the difference in speed between the vehicles is between 15-30 km/h (9-19 mph), City Safety alone cannot prevent a collision. However, the consequences of the impending collision can be mitigated considerably because the system will intervene to reduce speed when the collision occurs.

The Volvo XC60 D5 also has the Hill Descent Control (HDC), Volvo's sophisticated technology for assisting slow progress in first gear when driving on steep gradients. Using the car's braking system and engine torque, HDC controls the car's speed and maintains a steady crawling speed. The Dynamic Stability and Traction Control system also helps provide even more stable driving. The XC60 D5 is also packed with many innovative safety features that help drivers avoid accident and provide better protection for the driver and passengers.
“Driving For Sustainability”

Reinforcing its alternative energy leadership and supports for the country’s energy dependency policy and agricultural sector, Volvo showcased a full range of alternative energy vehicles as follows:

Diesel-engine (D5) S80 D5, XC60 D5 and XC90 D5, all can support B5 mix without further engine modification:

Flexifuel cars -- C30 1.8F and S80 2.5 FT that can operate on 100% gasoline, or any blend of gasoline and renewable bioethanol up to 85% (E85),
Special offers for Motor Expo 2009 customers

S80 – Special for customers placing booking order for S80 D5, Volvo is offering special packages where buyers can choose two out of the three offers as follows:

- 25% deposit, 0% interest rate for 60 months, Bt37,488 monthly installment payment. Customers can pay in installment for the deposit through Citibank Paylite program with 0% interest rate for six months

- High quality diamond (1 carat) with certificate from the Institute of Gemology HRD Antwerp

- Visit Volvo’s plant in Sweden in a 5-day trip package and a privilege of flying business class with Scandinavian Airline

Volvo C70 2.4i – get free accessories listed below only at Motor Expo 2009!
- Front spoiler with fog light
- 4 exhaust pipes with diffuser
- Sport lowering diffuser
- Sport lowering springs
- 19-inch wheels and tires

XC90 D5 – get free accessories when placing booking order at Motor Expo 2009.
- Color-coordinated accessories
- Chrome trim
- Two-tone front bumper
- Double exhaust pipes
- Side scuff plate
- Sport logo
Price list of all Volvo car models
- S40 2.0 1,799,000 baht
- S80 2.5FT 3,100,000 baht
- S80 D5 2,999,000 baht
- V50 2.0 1,799,000 baht
- XC60 D5 3,999,000 baht
- XC90 D5 3,949,000 baht
- C30 1.8F 1,899,000 baht
- C30 2.0 2,199,000 baht
- C30 2.0 R-Design I 2,399,000 baht
- C30 2.0 R-Design II (with sunroof & Bi-Xenon) 2,499,000 baht
- C70 2.4i 4,299,000 baht

Enjoy special offers and a full range of interesting vehicles from Volvo at the Motor Expo 2009 at IMPACT, Muang Thong Thani from December 3-13, 2009.
Fast Facts:

- Volvo Car Corporation is a wholly owned subsidiary of Ford Motor Company and is headquartered in Gothenburg Sweden.

- Volvo Cars has been present in Thailand since 1962, firstly through an independent importer/distributor, and then through a wholly owned National Sales Company, Volvo Car (Thailand) Ltd., since 1971. The Company now employs 22 people.

- A local assembly (CKD) factory, Thai Swedish Assemblies (TSA) was established in 1976 and today builds the globally successful Volvo XC90, All-New Volvo S80, Volvo S60, Volvo V70, Volvo V50 and Volvo S40 models in Thailand, employing some 300 people. Volvo Cars also offer the spectacular all-new Volvo C70 retractable hard-top coupe/convertible sports car, the new Volvo C30 three-door sports hatch/coupe and XC60 as fully imported products.

- Volvo is represented in retailing by 8 authorised dealers operating 11 outlets, nationwide. Five in the Bangkok metropolitan area and six in up-country locations as follows, Wearnes (with locations in Hua Mark, Lumpini and Lad Phrao), Gothenburg Automobiles, Srinakarin; Scandinavian Auto, Ramindra; and in other provinces Chiang Mai Sweden Motor, Chiang Mai; Nakornpathom Motor, Nakornpathom; Hat Yai Auto, Songkhla and Phuket; Advance Auto Car, Chon Buri; and Bangkok V.A. Machinery and Parts, Khon Kaen.

- For more information on Volvo Cars' products and services, please refer to www.volvocars.co.th, or contact your nearest authorised dealer.

- Volvo built its first major plant outside Sweden in 1965, just one year after the construction of the present plant in Torslanda (Gothenburg). The first model to be produced in Ghent was the Volvo 120, a.k.a. the Amazon.

- Volvo Cars Ghent currently employs 4,000 employees, building the Volvo C30, S40, V50, S60, and now the new XC60. Production consists of welding, painting and final assembly. The paint shops of the Volvo Cars plants are among the cleanest in the world. Last year Volvo Cars Ghent switched over, like the other Volvo facilities, to 100% green electricity from hydroelectric power.

- For free video content please go to www.media.volvocars.com and click on 'Broadcast Room' to preview and request video. If you haven’t already used this site, please take a moment to register. Once your registration is approved, you can order broadcast-standard video digitally or by tape. Registration and video is free to the media.

Honda launches all-new Freed, a stylish, compact and spacious MUV (multi-utility vehicle)

2009-11-19T05:04:00.001-08:00

Honda Automobile (Thailand) Co., Ltd., Thailand’s second largest manufacturer and exporter of passenger cars, today launched its all-new premium urban Honda Freed multi-utility van (MUV). Its distinctive design, shape and cabin interior cater to urban trendy customers who want a stylish, compact and spacious MUV with the ‘look-and-feel’ of a passenger car.

Mr. Atsushi Fujimoto, President of Honda Automobile (Thailand), said, “Our research into the lifestyles of today’s urban population indicates an emerging need for MUVs. The daily activities of professional people at work and home, and the social interactions with their family members and friends indicate an unmet need for a compact multi-utility vehicle that is easy to drive and offers ample cabin space.”

The all-new Freed fuses a compact body size, a spacious cabin which comfortably seats adults in all three rows, and a stylish design. Since its introduction in May 2008, sales of the Freed in Japan reached nearly 77,000 units sold within its first year of launch. It has also been given the “Best Value” Award in Japan Car of the Year 2008-2009.

“Honda specifically developed the all-new Freed with the aim of creating a stylish MUV that is comfortable and easy to manoeuvre, enabling its owners to freely utilise the vehicle in various activities that meet the modern needs and diverse lifestyles of today’s urban residents,” said Mr. Fujimoto.

“In Thailand, we expect customer bookings for the Freed to reach 5,000 units within the next 12 months. This forecast is based on our research of target demographics in urban cities, and the potential and anticipated demand for compact, spacious, fuel-efficient MUVs that are easy to steer, drive and park,” he said.

The all-new Freed can accommodate 7 people in a 2-2-3 seat configuration, a large cabin room with a ‘free walk-through’ layout that allows its occupants to move from front-to-back easily. It also comes with automatic sliding rear doors on both sides, activated via a remote key or manually from a panel button.

To support the all-new Freed launch, Honda will kick off its marketing campaign that includes print advertising and TV commercials targeting at trend-setting urban families and professional individuals in their late 20s.

The all-new Freed is available in 2 versions – the Freed S and Freed E – equipped with a 1.5-litre i-VTEC engine that delivers 118 horsepower and runs on gasohol E20. All versions feature a 5-speed automatic transmission with emission cleanliness that meets the international EURO-4 standard.

The premium Honda Freed – priced at Bht. 894,500 (S version), Bht. 974,500 (E version), Bht. 1,014,500 (E Sport), and Bht. 1,074,500 (E Navi Sport) – is available in four colours (Silver Alabaster, Metal Polished Grey, Crystal Black, and White Brilliant).

Bookings are now accepted at all Honda dealers nationwide with deliveries to customers scheduled in January 2010. The all-new Honda Freed will be displayed at the upcoming Thailand International Motor Expo 2009 (2 –13 December).
Information released through Bangkok Public Relations Ltd.
on behalf of Honda Automobile (Thailand) Co., Ltd.
For further information please contact Bangkok Public Relations Ltd.

Apsorn Bejrajati, Pairoj Pachanapreeda or Panta Poonsapmanee at telephone 0-2664 9500, ext. 112, 115 or 116, fax 0-2664 9515.

TURNAROUND EXPERT TO HEAD OPEL

2009-11-12T21:56:00.002-08:00

       US auto-maker General Motors has named executive vice president Nick Reilly as interim head of its Opel and Vauxhall operations in Europe and on Tuesday said it had begun to pay back emergency German loans.
       Reilly "will immediately assume responsibility for the operations of Opel/Vauxhall Europe while an external search for a new chief executive officer commences", GM said in Detroit, Michigan.
       Reilly, a specialist in turning around troubled operations, "will support the European leadership team in running the business and will oversee the creation of a strategy to position Opel/Vauxhall for long-term success."
       Former GM Europe chief executive Carl=Peter Forster is stepping down following the parent group's decision to hang onto Opel/Vauxhall and restructure the companies itself.
       Forster had backed the sale of the two brands to Canadian auto-parts manufacturer Magna and its Russian partner, Sberbank.
       Meanwhile, GM said it had paid back 200 million euro (Bt10 billion) of a bridging loan provided by Germany to keep Opel running and would reimburse the balance this month.
       "We now have an outstanding balance of 600 million euro," said GM Europe finance director Enrico Digirolamo.
       German Chancellor Angela Merkel on Tuesday again stressed Berlin wanted its money back after GM chose to keep Opel, a decision Merkel said she "regretted enormously".
       GM is now expected quickly to submit a plan on how it will get Opel back on its feet.
       The German authorities had pushed hard for Opel's sale to Magna and Sberbank, because of assurances from the prospective buyers that no German plants would subsequently be shut down - a guarantee GM has not given.
       GM's ditching of the sale to Magna cuased an uproar in Berlin last week.
       The government had granted a loan of 1.5 billion euro to tide Opel over and was set to make another 3 billion euro available as loan guarantees.
       However, Opel has tapped only about 900 million euro of the initial credit.
       GM chef executive Fritz Henderson said the group would need about 3 billion euro in financing to restructure Opel/Vauxhall but also recentlt suggested GM might have other means to fund the operation.
       Meanwhile, Reilly, a British national who once worked at Vauxhall, will maintain the overall direction of GM's international operations from Shanghai, China, the company said - further evidence his German stay will be temporary.
       Henderson and Reilly toured Opel headquarters in Russelsheim, near Frankfurt, and on Tuesday met with the head of the workers council.
       "As we announced last Tuesday, Opel/Vauxhall will remain a fully intergrated member of the Newk GM family, a decision that is in the best interests of Opel/Vauxhall, its customers, employees, other stakeholders and GM," Henderson was quoted as saying.
       "With his deep experience with the Opel and Vauxhall brands, Nick is well suited to lead this transition and to work towards the earliest possible normalisation of the business."
       Reilly, a Cambridge University graduate, was hired by GM in 1975 and previosuly helped turn around operations at Daewoo in South Korea.

SUBARU LAUNCHES THE LEGACY

2009-11-12T21:56:00.001-08:00

       The Legacy, which comes with a 2-litre engine, is available in two forms: a sedan and a station wagon, costing Bt1.98 million and Bt2.05 million, respectively.
       At the launch event, the company announced that world-class stunt driver Russ Swift would perform at the upcoming Thailand International Motor Expo, which will be held at Impact, Muang Thong Thani.
       Motor Image, the official distributor for Subaru locally, said it expected to sell 30-40 units, most of them the station-wagon version. High sales of the station wagon are expected because of its low pricing and the lack of any competitors here.
       The Legancy 2.0i also comes with a continously variable transmission, which is more fuel-efficient when driven in city conditions.
       "The Legacy is now bigger and roomier on the inside. Due to its attractive design, it appeals to a wider customer base than the previous version did. At the same time, it still comes with the sporty character of the Legacy," said general manager Apichai Thamsiraruk. "The smaller Impreza usually accounts for about 65 per cent of our yearly sales. We're hoping the new design of the Legacy will challenge that percentage as more people start considering the bigger car."
       Apichai said the scheduled "Russ Swift Stunt Driving" show would be an opportunity for Thai audiences to see a world-class stunt driver in action. Swift is mentioned three times in "guinness World Records" for his driving stunts.
       The show will be held from December 5-7 in the P9 parking lot of Muang Thong Thani during the Thailand International Motor Expo. Subaru has spent Bt10 million to bring Swift to Thailand.
       "Subaru customers and all viewers will learn more about the high-performance capabilities and safety features of Sabaru cars. The stunts that Russ Swift will perform will include two-wheel driving,doughnuts and dancing with the car, to name a few," Apichai said.
       Motor Image sol d120 vehicles in the first 10 months and expects to close the year with sales of 160 units, similar to last year. The company expects to sell 20-30 units at the Motor Expo.
       Apichai said that as Subaru products became more appearling, more customers were finding the brand accessible. A clear indication of this buying Subarus.
       Motor Image now has a customer base of 4,000 in Thailand.

General Motors can repay taxpayers, says chairman

2009-11-12T21:54:00.002-08:00

       General Motors Co remains committed to repaying its billions of dollars in government loans, though it's too soon to say when that will happen,the automaker's chairman said on Tuesday.
       "Can GM pay back its loans? You bet," Ed Whitacre said during an address at Texas Lutheran University in Seguin,Texas."I can't tell you when, but it won't be very long."
       But Whitacre added that the company,which has received more than $50 billion in taxpayer bailouts and is majorityowned by the US government,"has a long way to go before it's in fighting shape again."
       Both the government and GM have said they expect the automaker to become publicly traded sometime next year. However, Whitacre said on Tuesday the timing of any initial public offering of GM stock "remains uncertain and depends on when the company returns to profitability."
       Whitacre said a stable economy re-"mains the determining factor for GM."
       He also said higher employment levels and a thaw in the credit markets were necessary for the company's business to improve.
       "Increasing employment is the fastest and surest way to grow," he said.
       Government investigators have challenged the likelihood that taxpayers will recoup their investment in GM and in Detroit rival Chrysler Group LLC. The Government Accountability Office said in a report issued last week that the automakers' value would have to soar to levels they didn't even approach when they were healthier for the taxpayer loans to be repaid.
       However, Whitacre, who became GM's chairman after it exited bankruptcy in July, highlighted restructuring efforts made at the company, including work force and brand cuts.
       He also noted the company's modest lift in October US sales - its first monthover-month sales increase in almost two years.
       Whitacre also defended the company's last-minute decision this month to keep its Opel brand.
       The automaker had been in talks to sell a majority stake in the European brand to a group led by Canadian parts maker Magna International and Russian lender Sberbank. But GM changed its mind because its financial position had improved enough to warrant keeping the brand, Whitacre said.
       "How could you be a global player and not play all over the globe?" he said."Our financial fortunes had improved enough that we rexamined that."
       Whitacre, who is the former chief executive and chairman of telecommunications giant AT&T, said he did not initially want to lead GM when he was approached with the offer."I was retired.Why would I want to do that?" he said,but added that he changed his mind after reflecting on the need for a strong US auto industry.
       Whitacre noted that the government has largely kept its hands out of GM's day-to-day business despite its controlling stake, adding that was a condition for his accepting the chairman position.

Economy vehicle or ecology car?

2009-11-12T21:54:00.001-08:00

       I hope more people will change their perception of a vehicle, seeing it as ameans of transport and not a reflection of the driver's status.
       The long-awaited dream of an eco-car will become a reality next year. The possibility has given hope to many middleincome earners that they may this time be able to afford a low-priced eco-friendly car.
       Some carmakers, however, seem to start from scratch by trying to explain that the word "eco" does not come from "economy" but is short for "ecology".
       What that means is this type of car will have less CO2 emission, stipulated at no more than 120 grammes per kilometre. Moreover, fuel consumption will not exceed 5 litres per 100km.
       To achieve that level of "greenness",the car engine must be smaller than those popular in the Thai market, meaning that it would not exceed 1,300cc for petrol and 1,400cc for diesel.
       Automobile firms have invested at least 5 billion baht in the eco-car project in Thailand. If they are able to manufacture 100,000 units of the above criteria by the fifth year, they will get tax and tariff incentives from the Board of Investment. Six firms have been approved for the project, but currently only Nissan has announced that it will move ahead according to plan, rolling out its first eco-car on to the Thai market in March next year.
       The government wants to see ecocars available at prices starting below 400,000 baht, lower than the current offers on the market, but carmakers insist that the price would not be that low because the cost of high technology and research and development required to produce the cleaner car is very expensive.
       It's true that a little bit of help from everyone to save the environment is essential for the overall public amidst rising concern about global warming.The eco-car should be one way that an individual - a member of the middleclass, to be specific - in Thailand can make their contribution. The problem is that consumers in the current sluggish economy may see only the "eco" as in the economy side of things, not ecology,as their first priority when considering buying a new car. If the price is not attractive enough, consumers may opt for a cheaper vehicle that provides them with mobility despite being much less green. Is it possible for both the government and the private sector to cooperate in adjusting an "economy" price into the upcoming "ecology" car?
       With the launch of the eco-car project,I hope that my dream of seeing many models of small-engine cars available in the market will come true. I always envy people in some European countries or Japan where people can have a variety of choice when it comes to small cars from different brands.
       Here in Thailand, the lowest possible engine that consumers can find is 1,500cc.Smaller cars have faced many episodes of unsuccessful introduction. The 1,300cc Ford Aspire hit the market over a decade ago but its sale lasted only a few years.Toyota launched its Indonesia-made 1,300cc Avanza about five years ago but the small-engine vehicle could not survive in the Thai market so the company had to replace it with the 1,500cc Avanza. An earlier model with the smallest-engine,the 900cc Daihatsu Mira, faced the same fate. I don't know if the disappearance of small-engine cars in Thailand was the result of insincerity on the manufacturers' or dealers' part to maintain continuous sales and service, or a genuine lack of consumer interest in low-engine models. There is an observation in Thailand that many times people are judged by the type of vehicle they drive. Those going about in fancy European brands may get better recognition than those who drive about in general Asian brands.The same person gets a different treatment from others only because that person changes his/her car. A painful reality!
       I hope that the government-backed eco-car project will be a success when the launch time arrives. I hope that more and more people will change their perception towards the image of the vehicle,seeing it as a means of transport and not a reflection of the driver's status, so people driving small cars can rest assured that they will still receive equal treatment in society. Let's drive a small car and help save our planet.

Mahathir rebuffs reports of Proton sale

2009-11-08T04:04:00.001-08:00

       Malaysia's former prime minister Mahathir Mohamad has dismissed news reports that the national carmaker Proton Holdings is on the market, writing in his blog that he had told the company's chairman and chief executive that it was "not for sale".
       Dr Mahathir's influence has soared in the new administration of Prime Minister Najib Razak, and the former PM indicated that he was back as Proton's adviser and "busy on a plan to resuscitate the company".
       Under the previous administration of Abdullah Badawi, Dr Mahathir hinted that he had no role in Proton as "no one asks me for advice".
       His unequivocal statement that Proton is not for sale would dash the hopes of at least three parties that are said to be interested in the company. They are the DRB-Hicom conglomerate, the Naza auto group and the management of Proton itself, whose chairman suggested it two weeks ago.
       Dr Mahathir said Proton was returning to profitability given the number of new cars he has been seeing on the roads lately."I know that a new car is not noticed on the roads until a certain volume of sales is achieved," he wrote at http://chedet.co.cc/chedetblog/.
       "Since Proton acquired a new chairman in the person of Nadzmi Salleh, I find it easier to perform the work of Proton adviser. The Prime Minister has also indicated that Proton's affairs should be referred to me. Accordingly, I have been busy on a plan to resuscitate the company and have been talking to potential technology partners for Proton."
       Then he got to the point."Lately I have been disturbed by media reports that Proton is to be sold to certain parties.This talk has agitated the staff of Proton.Their worry affects their performance. I have told the chairman and the chief executive that Proton is not for sale and there is no plan to sell Proton in the foreseeable future.
       "The need is to restructure the company and reach agreement with the potential partner. After that, work has to be done to ensure Proton fully recovers."
       Dr Mahathir's comments are likely to have been noted seriously by the government, as Proton was his brainchild back in 1984. They would also have been noted with regret by Syed Mokhtar AlBukhary, the controlling shareholder of DRB-Hicom, which reports indicated was the front-runner for the car company.
       The tycoon bid for Proton six years ago but his bid was rejected at the time by then-premier Abdullah. DRB-Hicom was thought to be looking at buying 32% of Proton.
       Proton posted a net loss of 320 million ringgit (3.12 billion baht) for the year to March 31,2009 but is expected to be back in the black in the current financial year. Its sales have climbed steeply and it expects to sell 155,000 units by the time its financial year closes in March 2010.

GOVERNMENT INCENTIVES LIFT TOYOTA SALES

2009-11-08T04:03:00.002-08:00

       Toyota Motor, the world's largest car-maker, narrowed its full-year net loss forecast for a second time after government stimulus measures revived vehicle demand in the US and Asia.
       The company expects a 200-billion yen(Bt73 billion) loss in the year ending March 31, compared with an earlier forecast for a YEN450-billion loss, it said yesterday.
       The auto-maker posted an unexpected second-quarter profit of YEN21.8 billion.
       Toyoto joined Nissan Motor in predicting a smaller loss as government tax cuts and subsidies spurglobal car demand.
       President Akio Toyoda, who said last month the maker of Corolla compact cars was one step from "irrelevance or death", has ordered the carmaker's first plant closure and an exit from Formula One racing to cut costs. "Toyota's sales are picking up more than initially thought," said Koichi Ogawa, chief protfolio manager at Daiwa SB Investments in Tokyo, which manages YEN3.4 trillion. "Like Honda and Nissan, Toyoto is benefiting from government stimulus programs."
       Toyota City, a Japan-based company raised its full-year revenue forecast to YEN18 trillion from YEN16.8 trillion as it boosted vehicle sales estimates for Asia, Japan and Norht America. The improved earnings outlook follows Honda Motor almost tripling its profit estimate last week.
       Nissan narrowed its loss forecast, citing better-than-expected sales in China. Hyundai Motor, South Korea's biggest auto-maker, posted a record profit in the quarter on surging US and China sales and a weaker won.
       Toyota's second-quarter net income compared with a projected loss of YEN23.2 billion, based on the median of five analyst estimates compiled by Bloomberg. The profit was due to strong performance by the company's finance division,Toyota said.
       Net income in the three months still fell from YEN139.8 billion a year earlier as vehicle sales declined in Asia, Euroipe and the US and a stronger yen cut the value of overseas earnings.
       The yen averaged 13 per cent stronger against the dollar last quarter than a year earlier.
       "The US economy is still in bad shape, with the job situation worsening," said Yuuki Sakurai,chief executive officer of Fukoku Capital Management in Tokyo, which manages about YEN800 billion. "The dollar well likely remain weak."
       For the full year, Toyota raised its global vehicle sales forecsst to 7.03 million from an August forcast of 6.6 million. It sold 7.57 million units last fiscal year.

OFFICIAL E-CLASS SALES AT STARFEST 2009

2009-11-08T04:03:00.001-08:00

       After allowing grey importers to feast on sales of the new E-Class since midyear, Mercedes-Benz will officially start taking orders for the new E-Class models at Starfest 2009, to be held in Central Chidlom from November 14-15.
       As well as the new E-Class, which comes with the CGI Blue Efficiency engine and various driver-assistance systems, the remaining models in Mercedes-Benz's range for the Thai market will also be on display.
       Chatvitai Tantraporn, general manager for marketing and communications at Mercedes-Benz (Thailand), said economic growth in the fourth quarter had boosted the company's confidence that Starfest would attract a lot of attention.
       The event has been held for five consecutive years, and this year Mercedes-Benz will showcase all of its models in every segment.
       "There'll be a launch of the three new E-Class models in both categories: saloon and coupe. We trust the new E-Class will impress our customers as not only the best-looking car in the world, but also the most technologically advanced and most environmentally compatible," Chatvitai said.
       "For customers who have not yet made a decision, this is the best opportunity, because at Starfest 2009 we'll make special financial offers, tailor-made to individual needs, to make it easier to own a Mercedes-Benz."

All-new FOCUS out to topple Golf

2009-11-08T04:02:00.001-08:00

       The all-new Ford Focus will arrive in showrooms in early 2011 with the aim of finally dethroning the Volkswagen Golf as western Europe's best-selling car, according to company sources.
       The new Focus won't just be a key player in Europe, either; it's set to become a global car, also to be sold in North America. The US version will be unveiled at the Detroit show in January, before Europe.
       The new Focus will go on sale after the launch of the recently unveiled C-Max five and sevenseat MPVs, the first models based on what Ford sources call an all-new, global platform.
       The production version of the C-Max, to be built in Spain, is set to be launched at next September's Paris show. The seven-seat version is heading for the US along with the Focus.
       Design sources say Ford is going to make the new Focus much sportier and more coupe'-like than the current model."The hatchback Focus will be relatively lower and sportier than the C-Max you saw at the Frankfurt show," said our insider."The important point is that there will be much more differentiation in terms of the relative stance and the H-point between the hatches and C-Max than on the current models."
       The H-point is designer shorthand for the position of the driver's hip point, which in practice means that the upcoming three and five-door Focus hatchbacks will have lower seating positions and markedly low-roofed styling.
       The Focus's chassis is also likely to be more sportily tuned than that of the C-Max, which is aimed at families and older drivers who appreciate the higher seating position.
       The Focus will also get its own interior design theme, with the dash angled towards the driver to deliver more of a cockpit-like feel.
       The new Focus will be powered by a new range of Ecoboost downsized turbocharged petrol engines.
       "The plan is for all our petrol cars to have smaller-capacity, direct-injection turbocharged engines," said one source."We especially have to meet the average CO
       target figure that has been set in the European Union, but downsized turbocharged engines are already proving popular in North America as well."
       One casualty of the move to greater fuel efficiency will be the five-cylinder Volvo-derived engine that powers today's Focus ST. The next generation of the model is likely to be powered by a turbocharged 2.0-litre four-pot, which can develop as much as 276hp.
       Aside from its range of diesel engines, Ford is working on a new range of super-frugal threecylinder turbo petrol units, with capacities much smaller than 1.6 litres.
       These engines are likely to be sized around 1.0-and 1.2-litres and are expected to become more popular when tough EU emissions rules make diesel engines increasingly expensive.
       A number of makers (including Renault and Nissan) are working on similar powerplants because the upcoming EU5 and EU6 emissions regs will force expensive de-pollution kit to be fitted to diesels.
       This move will make small diesels too expensive to be fitted to superminis and many cheaper Focuses. Ford hopes that the three-pot petrol motors will offer the performance and fuel economy of a typical small diesel.

CREATIVE EFFORT HELPS TATA SALES

2009-11-04T05:20:00.000-08:00

       What does a company do if its drivers are not willing to read the users' manuals of the vehicles they will drive? Tata Motors has come up with an answer: give them a comic book.
       Tata is about the launch a comic-book version of the user's manual for its Xenon CNG pickup. It's part of the Indian automaker's intensified focus on its commercial-vehicle division and comes after little more than a year's experience in selling vehicles in Thailand.
       The Xenon CNG, aimed solely at the commercial-vehicle market, has net quite a few obstacles. Prominent among them is the need for drivers to read the uder's manual to get a better understanding of the CNG-fuelled vehicle, because its operation is technically different from that of a standard diesel pickup, so the company sought a simple solution: produce something the drivers want to read. The result is a comic-strip version that touches on the technical aspects of the Xenon CNG.
       "The Xenon CNG has a fuel valve that needs to be opened and closed manually when refuelling. Failing to open the valve after refuelling leads to the engine shutting off. Because most drivers have not read the users manual, they don't realise the most probable reason the engine won't work is they have forgotten to open the valve. The comic-book version will defitely be more entertaining to read for these drivers," said Tata Motors (Thailand) CEO Ajit Venkataraman.
       The Xenon CNG is now be only dedicated CNG truck in the automotive market. The only vehicle that can be considered a competitor is the Chevrolet Colorado CNG, which uses a dual-fuel system that mixes diesel and CNG to provide extra range.
       The biggest problem with a dedicated CNG vehicle is its range. In Thailand, CNG fuelling stations have not yet spread around the country, so a driver could be stranded somewhere with no fuel at the end of the Xenon CNG's limited 150-200-kilometre range.
       "This is not a problem, as most of our fleet customers have very well-planned routes. The vehicles run the same fixed routes every day and fill up at a certain station every day. If a vehicle does run out of fuel, our dealers will send out a service vehicle with a CNG refuelling tank," Venkataraman said. "We actually discourage privaate users from buying the Xenon CNG, because this [refuelling] can be a hassle at times. For private users who are fuel-cost conscious, our 2.2-litre diesel engine is ideal."
       The Xenon CNG's limited range and the failure of drivers to read the manual are not the only problems Tata has faced. Another is brand acceptance. Being a new pickup manufacturer in the world's second-largest pickup market means they're playing at being a seal in the company of sharks. The long-standing local operations of Japanese auto-makers have built up a loyal customer base unwilling to try an Indian pickup-maker.
       "The Xenon CNG has been a great product for us to penetrate this market. Fleet operators do not want another diesel pickup, as there are enough in the market already. The Xenon CNG cuts fuel costs, and fleet operators can see the benefits of the vehicle. Initially, they always order only one vehicle, but after seeing the benefits they order more," said sales director Abhichet Sitakalin.
       Another advantage of the Xenon CNG is its fuel cannot be stolen. Fleet operators say stolen fuel accounts for a major increase in costs. With CNG, extracting the fuel requires equipment costing Bt30,000, and the low cost of CNG makes stealing it not worthwhile.
       At present, more than 90 per cent of the vehicles Tata sells in Thailand are for commericla use. At next month's motor expo, the company will launch the Xenon Giant, a dedicated CNG pickup with a large bed and an extended fuel range of 300-400 kilometres. The company hopes the Xenon Giant will lead to a significantly increased market share.
       Tata sold a mere 722 units in the first nine months of the year amid claims it was being overly optimistic. It says CNG-fuelled vehicles account for 30 per cent of current sales, and this figure is expected to reach 50 per cent next year with the new Giant entering the market.
       Venkataraman said Tata was also monitoring other opportunities in the Thai market
       "Although Tata is a major player in the bus and truck market in India - the second-largest bus and truck market in the world-it is unlikely we will enter the Thai market, because of its small size," he said.

Suzuki raises profit forecast

2009-11-04T05:01:00.000-08:00

       Suzuki Motor Corp quadrupled its annual operating profit forecast yesterday as sales soared in its main Indian market, setting it apart from other Japanese automakers that have depended heavily on the sinking US market.
       Suzuki, like South Korean rival Hyundai Motor Co, has been a major beneficiary of a global shift in consumer preference towards smaller cars, partly fanned by government incentives on purchases of less polluting vehicles.
       Both firms' huge presence in India,where the economy's resilience and tax incentives have jumpstarted demand for cars, has helped them weather the storm better than most in the industry.
       Suzuki,Japan's fourth-biggest automaker, raised its operating profit outlook to 40 billion yen ($445 million)for the year to March, from an initial forecast of 10 billion yen.
       It now expects a net profit of 15 billion yen instead of five billion yen.
       Consensus forecasts from 16 brokerages put Suzuki's operating profit for the year at 46.6 billion yen, and net profit at 22.8 billion yen.
       Earlier, Daihatsu Motor Co, the minivehicle unit of Toyota Motor Corp,and Fuji Heavy Industries Ltd, the maker of Subaru cars, also lifted their full-year forecasts after better-than-anticipated six-month results.
       But Suzuki joined other automakers in warning of an uncertain outlook at best for global vehicle demand as more state-backed incentives programmes reach their budget limit and threaten to yank back sales.
       "It's doubtful whether these scrappage incentives would switch smoothly into real demand," Suzuki chief executive Osamu Suzuki told a news conference.
       Suzuki said he was not optimistic about a global economic recovery in the October-March second half, although Asian markets such as India and China remained a bright spot.
       He noted that Suzuki's higher profit forecasts were merely a result of the overshoot in the first six months.
       For July-September, Suzuki, known for its Swift and Alto hatchback cars,reported a 7.1% fall in operating profit to 24.98 billion yen from the second quarter last year, as global sales volumes decreased and the yen strengthened against the dollar.
       The result was double an estimate of 12.45 billion yen in a poll of three analysts by Thomson Reuters I/B/E/S.
       Net profit grew 27% to 10.38 billion yen, while revenue dropped 25% to 604.4 billion yen.
       Last week, Suzuki's Indian unit, Maruti Suzuki India, reported a near doubling in its quarterly net profit, also powered by brisk exports to Europe.
       Daihatsu, which dominates Japan's 660cc minivehicle segment with Suzuki,now expects an annual operating profit of 26 billion yen instead of 17 billion yen as sale exceed expectations in Indonesia and Malaysia, where it has a big presence.
       In July-September, Daihatsu's operating profit fell 35% to 6.13 billion yen.Net profit sank 41% to 3.25 billion yen.
       Fuji Heavy Industries Ltd, also owned partly by Toyota, now expects to eke out an annual operating profit of 1 billion yen instead of a 35 billion yen loss previously forecast. Its second-quarter operating profit was 8.24 billion yen, down 31% from a year earlier.

Buyers sought for Fuso plant

2009-10-28T19:14:00.001-07:00

       The Japanese truck maker Mitsubishi Fuso is expected to finalise talks with two or three manufacturers next month for the purchase of its plant in Thailand.
       Once Mitsubishi Fuso Truck and Bus Corporation (MFTBC) completes the talks, Fuso trucks will continue to be built in Thailand, said a senior official source in the Thai unit of MFTBC.
       Daimler AG of Germany announced earlier this year it would shut the Fuso plant in Thailand by the end of this year as part of a revamp of MFTBC. The German carmaker holds an 85% stake in MFTBC and Mitsubishi Corporation the rest.
       If talks fail, the source said Mitsubishi Fuso Truck (Thailand) Co (MFTTC), a subsidiary of MFTBC, could import Fuso trucks from Indonesia or Malaysia, two major production bases of MFTBC, to keep the brand alive.
       The Indonesian Fuso plant builds more than 40,000 units per year and the Malaysian one 10,000.
       The Japanese truck maker pledged to continue doing business in Thailand even if the plant closes.
       A potential investor is Tan Chong International, a listed automobile and property group in Hong Kong.
       A subsidiary, Tan Chong Machinery Ltd, holds a 100% stake in Nissan Diesel Thailand Co, which is authorised by Volvo of Sweden to produce and distribute Nissan UD trucks in the Thai market. Volvo holds 100% interests in Nissan Diesel Motor Co of Japan, which manufactures and distributes Nissan diesel trucks and buses.
       The source said Tan Chong was interested in the Thai Fuso plant because its licence to build and sell Nissan UD trucks would soon expire.
       But another source in Nissan Diesel Thailand denied an earlier report that Tan Chong would leave the Nissan UD business since its performance was still healthy despite the recession.
       Seiji Akiyama, the president of MFTTC, said the company was approached by many prospective buyers to purchase its plant after it announced it would cease production.
       "There are ongoing negotiations with many interested buyers, and there have been talks about production for domestic sales as well as export that would raise the capacity of the plant. But consideration needs to be given to production costs so that it is competitive,"he said.
       In the past, the Fuso plant had a capacity of 6,000 units per year, but now it assembles about 2,000 trucks per year for the domestic market.
       The plant was originally scheduled to close at the end of this year, but if negotiations bear fruit, production could continue, buoying the confidence of dealers and customers.
       The company said Mitsubishi Fuso remained committed to marketing and servicing commercial trucks in Thailand and continued to invest in products and services for the local market. Asean is the largest international sales area for MFTBC.
       MFTTC announced earlier this year changes in its business structure intended to improve competitiveness.
       A principal change is the integration of Thai production into the overall Asean footprint of MFTBC. This move is to increase overall competitiveness in Thailand by generating further economies of scale. As a result, MFTTC plans to phase out production at Lat Krabang, a suburb of Bangkok, by the end of 2009.
       The local production capacity and workforce will be gradually adjusted.About 150 people are currently employed at the Lat Krabang plant, which makes light-, medium- and heavy-duty trucks.
       In the first half of this year, Mitsubishi Fuso sales grew by 2% compared to a 19% decline in the truck market. By the end of the year, Mitsubishi Fuso is expected to hold a 10% market share,about the same level as last year.

YAMAHA SEES ITS MARKET SHARE RISE

2009-10-28T19:13:00.000-07:00

       Motorcycle-maker Yamaha is gearing up to fight back against rivals like Honda and Suzuki, which have launched new models to compete against Yamaha's popular Fino.
       Thai Yamaha Motor vice president Praphan Polthanavisit said from January to September, Thailand's motorcycle market was hit by the slowing economy, and sales fell 14.4 per cent year on year to 1,132,639 units.
       However, Yamaha, supported by strong sales of its Fino model, sold a total of 318,360 units, down only 4.8 per cent year on year. Yamaha's market share moved up by 2.8 per cent, to 28.1 per cent, he said.
       "Yamaha has a large number of models that respond to customers' demands, be they manual or automatic models," he said, adding that the Fino, in particular, was a best-seller because of its unique retro styling.
       Praphan said there were signs of recovery in the global economy in the fourth quarter, while the government had introduced stimulus measures, and consumer confidence was rising.
       "Yamaha is confident the overall motorcycle market will finish the year at 1.5 million units, down 12 per cent from 2008," he said. "Yamaha plans to sell 430,000 motorcycles this year, down 2 per cent from last year for a 28.7-per-cent market share."
       Meanwhile, Yamaha is joinin dealers in offering 600,000 Fino owners around the country free check-ups and engine-oil changes. The promotion lasts until the end of the month.
       "In November, we're planning to offer more special privileges for Fino customers," he said, adding the details would be announced later.

MAZDA2 TO BOOST ASEAN SHARE

2009-10-28T19:12:00.000-07:00

       Mazda Motor Corp hopes to double its regional market share to 2 per cent, as the company plans to sell 20,000 units of the Mazda2 within Asean in the first year of production.
       Mazda currently has a 1-per-cent market share in Asean, but hopes to increase this to 4-5 per cent within the next five years.
       The statement was made yesterday as the first Mazda2 subcompact (B segment) car rolled off the production line at the Auto Alliance Plant in Rayong.
       The Mazda2, whose official Thai launch will be on November 17, will be the company's second passenger car on sale in the Kingdom.
       The Mazda2 will also be launched in Indonesia next month, in the Phillipines in December and in Malaysia next March.
       "The B segment is the fastest-growing segment in Asean. We expect the total B segment to reach 340,000 units in the region. The Mazda2 is aimed at young, energetic customers who are auto enthusiasts, and we have already sold 362,000 units worldwide. We currently have a very small share in the local market and we see plenty of room for growth," said Yuji Nakamine, managing executive officer at Mazda Motor Corp.
       Mazda sells 1.15 million vehicles worldwide, of which the Asean market accounts for less than 2 per cent.
       The Mazda2 will be a major product for the Japanese auto-maker in the Thai market as it moves deeper into the passenger-car segment.
       Nakamine said Mazda was a "challenger brand", in the sense that it is not as large as Toyota and Honda and requires unique products to attract customers.
       "We have already attracted 7,000 registered prospective customers [for the Mazda2] on our website after three weeks. We plan a 10-per-cent market share in the B segment over the lifetime of the car. We're not going to compete on price, but rather on having a special product that customers want to drive due to the zoom-zoom appeal," said John Ray, managing director of Mazda Sales Thailand.
       The Mazda2 will be manufactured on the same production line as the Ford Fiesta, which will be launched next year. The company has a production capacity of 50,000 units for the Mazda2 at the plant.
       Nakamine added that there are plans to export the Mazda2 beyond Asean, especially to Australia, within the next year. The current Mazda2 sold in Australia is imported from Japan.
       "The Thai market seems to be recovering from the crisis and beginning its upward trend. We expect total auto sales for the Thai automotive market to reach 500,000-520,000 units this year," said Ray.

TOYOTA UNVEILS NEW HYBRID-ONLY VEHICLE

2009-10-20T20:35:00.000-07:00

       Toyota has unveiled a new hybrid-only model that is bigger and more expensive than its popular Prius, underlining the Japanese auto-maker's ambitions to make "green technology" more wide spread.
       The Sai sedan is Toyota's second hybrid-ontly model after the Pruis. Toyota offers hybrid versions of other models.
       Sai, which means "talent" and "colour", will be sold only in Japan starting on December 7, targeting monthly sales of 3,000 vehicles. No global sales plans have been decided, the world's biggest auto-maker said yesterday.
       Hybrids get better mileage than regular petrol-engine cars by switching between an electric motor and a petrol engine. Other auto-makers are also beefing up their hybrid line-ups, including hybrid-only models.
       Government incentives, including "Cash for Clunkers" programmes and tax breaks, have Prius orders soaring in Japan. The waiting list for the car has grown to several months.
       Hybrid sales in Japan have been the one bright spot for Toyota, which has been losing money, battered by the global economic downturn.
       The Sai gets 23 kilometres per litre, half the fuel consumption of a comparable petrol-engine model, Toyota said. The Prius gets 38 kilometres per litre under Japanese conditions.
       The Sai comes with a bigger 2.4-litre engine than the 1.8-litre Priusm is roomier and has fancier features, such as an interior made from plastic that uses plant-deruved materials.
       It is also more expensive, starting at 3.38 million yen (Bt1.25 million). The third-generation Prius, which went on sale earlier this year, starts at just over 2 million yen in Japan.
       The Sai looks rather sedate compared with the Prius, with its more circular styling.
       "This model shows our hopes to make hybrids more widespread," said Toyota offical Takuji Nakamoto.
       Like the Prius, the Sai will be sold at all dealer outlets in Japan, totalling about 4,000 around the country. Some Toyota models are sold at only some of the showrooms, because they are designed to appeal to certain kinds of consumers. The Sai will be assembled at Toyota's Kyushu plant in south-western Japan.
       The Prius is the world leader in petrol-electric hybrid sales, selling more than 1.4 million vehicles since its debut a decade ago.

       The Sai comes with a bigger 2.4-litre engine than the 1.8-litre Prius, is roomier and has fancier features, such as an interior mamde from plastic that uses plant-derived materials.

BMW PLANS RANGE OF ECOFRIENDLY CARS

2009-10-14T21:11:00.000-07:00

       German carmaker BMW plans to boost the number of frugal,ecofriendly models in its range.
       Norbert Reithofer, who will soon take over as board chairman, made the announcement in Leipzig, wher BMW unveiled its new X1 compact off-roader.
       The move marks an expansion of BMW's Efficien Dynamics strategy aimed at cutting the fuel consumption of its vehicle line-up by as much as 15 per cent.
       At the recent Frankfurt car show, BMW showed petrol-electric hybrid versions of the full-size X6 sport-utility vehicle and the 7 Series limousine.
       "In the medium term, we want to hybridise the range right down to the 3 Series," Reithofer said.
       Future BMW technology will include full hybrids in which the internal-combustion enginecharges batteries for electric running and plug-in versions that use mains power to charge on-board power packs regularly.
       BMW is concentrating on what it calls "Project 1",a"mega-city vehicle" due to be slotted in below the present upmarket range.
       "By 2015, this family of vehicles will include a battery electric," Reithofer said.
       In the long-term, Reithofer believes internal-combustijon engines that burn hydrogen are the way ahead for BMW.
       "We will remain loyal to this technology," he said.
       The focus is now on designng a better fuel tank to store liquid hydrogen on board. Onece this problem has been solved, a new generation of demonstration vehicles will emerge.
       Although BMW has been successfully experimenting with hydrogen power for more than 20 years, the technology has been hampered by bulky fuel tanks and the lack of a hydrogen-filling-station infrastructure.

       AT THE RECENT Frankfurt car show, BMW highlighted petrol-electric hybrid versions of the full-size X6 sport-utility vehicle and the 7 Series limousine.

CHEAP THRILLS, WITH DARN GOOD LOOKS

2009-10-13T03:53:00.000-07:00

       It's time for thinking like a kid again, because I guess that's what this car demands.
       Imagine, then, a 20-something man sitting and dreaming as his office hours tick away, lost in a trance of his own. He has no motivation to work despite the boss's deadlines. Does he sound familiar?
       It's his first job, and he spends a lot of time dreaming of a big salary, being the boss, flashing a company credit card and, most of all, driving an impressive car. But he's been at work long enough to know nothing comes easily; there's a long way to go, and it seems he's mired in mediocrity. How much would a good car change his attitude?
       The grim reality is his ony choices for a new car that won't make him "save on that Coke" at lunch are a Honda or a Toyota. And if he feels the need to modify it to turn a few heads, that'll cost a little more.
       The solution may be (and here comes the reason for all of this) the Proton Neo CPS.
       The CPS is a slightly higher-performance version of its little sister, the Neo - a car that looks good and feels great to drive but has poor acceleration. When Phranakorn Auto Sales, the Proton distributor in Thailand, realised many buyers of standard Neos Neos modified their cars, it seemed logical they should bring in a hotshot version.
       The Neo CPS comes with every addition to slacken the jaws of boy racers. Possibly the first most obvious modification is the huge spoilder that sticks out at the rear. Then there is an agressive body kit that includes a front bumper, rear diffuser and side skirts. It makes the Neo CPS a far more menacing sight in a rear-view mirror than the standard model.
       What may be a little overdone are the large wheel arches with bolts on them. While the intention was to lend the Neo CPS a sence of power, the small wheels mena it looks more like a scrawny teenager wearing his daddy's suit. However, new 16-inch alloy wheels attempt to improve the look. On the inside, the modifications are more limited. There is red trim on the seats, door handles and gear lever. "Premium" is a word that simply does not apply in this case. Some might even call it tacky.
       However, the modifications that have created the Neo CPS are not all superficial gloss. The front track has been narrowed by 3 millimetres, while the rear has been widened by 13mm - a change made because Proton accepts that the standard Neo suffers from a little too much oversteer. The 1.6-litre engine produces 125 horsepower, compared with 110hp in the standard Neo.
       As I mentioned earlier, the standard Neo is already a good car to drive. Its weakest link is the engine, which is simply underpowered. You'd think the 15hp addition would make things better with the CPS, but dig deeper into the spec sheet, and you'll see a weight increase of 43 kilograms.
       It's when trying to ovetake that you realise how sluggish the Neo CPS sremains. Like a barking dog with no bite, the Neo CPS will growl all the way to 160kph. But unless you've got a good few minutes and long stretch of empty road, don't try it. The Neo CPS is most comfortable at speeds of 80-110kph. Another annoying fact is that at any point above 2,500rpm, the engine is tool loud for comfort, and you become sligthly tone deaf at speeds of 120-140kph.
       At the rear of the Neo CPS, there's a badge that says: "Handling by Lotus." This signifies that the British sports-car company owned by Proton was involved in beefing up the car's handling. The Neo CPS does handle sharper and holds it ground well in corners.
       But while it can still be considered a driver's car, what the Neo CPS lacks are the little details that lead to perfection. Like a 170-centimentre shorty like me. You head is too close to the roof, and not being low enough diminished the dricing experience. Then there are low-quality plastics and a sound system that can turn some buyers away.
       If I've given you negative impressions of the Neo CPS, then let me turn that around with a number: Bt698,000. That makes it the cheapest and best-looking driver;s car available in the Thai market. But there remainsa dilemma. A standard Neo costs Bt564,000, a whole Bt134,000 cheaper. Is it better value to buy a standard version and slap on some modifications later? Considering the car's cost is similar to that of a Yaris or a Jazz, it may become an emotional decision.
       If you're that 20-something man mentioned above, go for the CPS and drive the wheels off of it! You're sure to be satisfied, if not on the road, then certainly emotionally.

Opel rescue is dogged by European divisions

2009-10-11T22:12:00.001-07:00

       Tempers are rising in Europe over Germany's promise of billions of euros in state aid to support the sale of General Motors' loss-making European unit Opel/Vauxhall.
       In a preliminary deal announced in Berlin with great fanfare on September 10, GM is selling a 55-per-cent stake to canadian auto parts-maker Magna and Russian state-onwed lender Sberbank.
       Chancellor Angela Merkel's government, keen to safeguard the jobs of Opel's 25,000 German employees, half the total, agreed to sweeten the deal with Euro4.5 billion (Bt221 billion) worth of public money.
       Merkel, Forbes magazine's most powerful woman on the planet for four years running, was eager to secure a rescue before elections on September 27. She duly won a second term.
       The financing was contingent, however, on other European governments where Opel has plants, such Britain, Spain, Poland and Belgium, stepping up to the plate and providing their own taxpayers' money too.
       But instead, the deal has been met with grumbling, with these countries unwilling to stump up cash for a deal that they see as only guaranteeing German jobs and keeping German plants up and running.
       With Opel losing money fast, dependent on a market wher too many cars are being made for too few customers, Magna is reported to be looking to take around 10,500 workers off the payroll.
       British Prime Minister Gordon Brown's government, which has a far tougher re-election battle than Merkel waiting for it next year, has made clear that it is not amused.
       Peter Mandelson, British business secretary, told the Financial Times in Seoul last Thursday he could not "sign off" on the deal in its current form, citing "shortcomings" identified in an independent auditors' report.
       Britain, where Vauxhall employs 4,700 people, is ready to provide Euro400 million in loan guarantees, but first wants assurances that two plants in Luton and Ellesmere Port remain open, the FT said.
       Spain, where Opel employs 7,000 people in Zaragoza province, has also been up in arms, with Industry Minister Miguel Sebastian boycotting a European meeting on Opel in Berlin on Friday.
       "We have never been favourable ot Magna's offer," a spokesman in Madrid said on Friday, with Sebastian "pretty unhappy" after the last gettogether in the German capital.
       Instead, Sebastian met with Magna boss Siegfried Wolf, appearing aftwards slightly more conciliatory, pledging to improve "communication problems" with the Canadian firm.

Deal near on Hummer sale

2009-10-09T21:46:00.000-07:00

       General Motors Co is poised to sign a deal to sell its Hummer brand to a Chinese heavy equipment manufacturer, according to a person briefed on the deal.
       "Representatives of Sichuan Tengzhong Heavy Industrial Machinery Corp have been in the US for the past nine days working on final details with GM,and both sides hope to sign a definitive sales agreement on Thursday or Friday,"said the person, who asked not to be identified because the deal is not final.
       The purchase price was not known,but GM said in its bankruptcy filing that Hummer might bring $500 million or more.
       Hummer, whose smallest model gets 16 miles per gallon (14.7 litres per 100 kilometres) in combined city and highway driving, sold well until the middle part of this decade when fuel prices began to rise.
       Through September, GM has sold only 8,193 Hummers in the US this year, down 64% from the same period last year. In September, only 426 Hummers were sold nationwide, according to Autodata Corp.
       GM, which spent 40 days in bankruptcy protection during the summer and has received about $50 billion in US government aid, plans to sell its Hummer and Saab brands and scrap Pontiac and Saturn as it tries to streamline its operations. The company wants to focus on four core brands: Chevrolet, Cadillac,Buick and GMC.
       Once the deal is signed, it still must be approved by the US and Chinese governments, and Chinese regulators initially expressed reservations about Tengzhong's ability to operate such an enterprise.
       GM already has seen one similar deal blow up at the last minute. Last week,auto dealership magnate Roger Penske's bid to buy the Saturn brand fell apart just before the deal was finalised when a contract to make vehicles was rejected by the Renault board.
       Hummer spokesman Nick Richards in Detroit would not comment on the timing of the deal.
       In June, Sichuan Tengzhong announced that it had a tentative agreement with GM to buy the brand, which features large off-road vehicles that initially were developed for military use.
       The consumer version of the Hummmer H3 and H3T pickup are assembled at the GM plant in Shreveport, Louisiana,which is slated for closure no later than June 2012. The larger H2 was made under contract with South Bend, Indiana-based AMGeneral LLC, which also makes military versions of the vehicles. The workhorse military vehicles used in Iraq and Afghanistan are not a part of the deal.
       The deal with Sichuan Tengzhong has long been expected. The Michigan Economic Development Authority in September approved a state tax credit worth $20.6 million over 10 years to help Hummer to build a headquarters in the Detroit area.
       The tax credit is contingent on Sichuan Tengzhong closing the deal for Hummer with GM, although a memo to the economic development authority said all definitive documents for the sale have been signed by the companies.
       The headquarters would house global design, engineering, product planning,purchasing, sales, service, marketing and financing, Richards said.

Honda sales to beat forecast

2009-10-07T21:52:00.001-07:00

       Honda Motor Co, Japan's second-largest carmaker, expects full-year vehicle sales in India and Thailand to exceed forecasts,the company's head of Asia operations said.
       Sales in Thailand this calendar year may reach last year's level, compared with a forecast for a 20% decline, while sales in India will fare better than the estimated 20-30% drop, Fumihiko Ike,president of Asian Honda Motor Co,said in an interview in Tokyo yesterday.
       Compared with Europe and the United States, recovery of these Asian economies has been slightly faster, Mr Ike said.Banks started loosening credit relatively early, which has helped because a high ratio of people buy cars and motorcycles on credit.
       Economic recoveries in India and Thailand are boosting sales of Honda's Jazz and City compact cars. India's economic growth may accelerate to as much as 7.8% this year as the US economy shows signs of bottoming out, the finance ministry said recently.
       Thailand's economy is sure to grow this quarter for the first time in a year as government spending and improving global demand spur expansion, Finance Minister Korn Chatikavanij said this week.
       Honda started selling the Jazz compact in India in June. The company also plans to introduce a small car targeting India and Thailand, which will be smaller than the Jazz, within two to three years, Mr Ike said.
       It may export the car from Thailand to other countries in the region, he added.
       "There is a huge income disparity gap in these countries, and our new product will meet untapped demand,"he said.
       The car, with an engine of less than 1.2 litres, will qualify for Thailand's ecocar project. The car would be sold in India at a price equivalent to the average annual salary, Mr Ike said.

Mazda to raise $1.1bn; narrows loss forecast

2009-10-05T23:10:00.000-07:00

       Mazda Motor Corp will raise as much as 96 billion yen ($1.1 billion)selling new and existing shares, as the company reported yesterday a smallerthan-predicted first-half loss.
       "Mazda will sell as many as 363 million new shares and 96.8 million existing shares held by the Hiroshima-based carmaker," it said in a statement to the Tokyo Stock Exchange."Mazda will use the funds to develop less polluting cars and improve its financial base."
       Mazda follows All Nippon Airways Co, Nomura Holdings Inc and Mizuho Financial Group Inc in raising cash by selling equity. The carmaker forecasts a second straight annual loss after the global recession cut automobile demand and a stronger yen reduced revenue from overseas sales.
       "Mazda needs money to survive,"said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments Ltd."It also needs funds to develop more fuelefficient cars."
       Goldman Sachs Group Inc, Nomura Holdings Inc and Daiwa Securities SMBC Co will manage the share sale, according to a Finance Ministry filing.
       The company posted a preliminary first-half net loss of 26 billion yen, compared with a prediction of 50 billion yen. It also narrowed its full-year loss forecast to 26 billion yen from 50 billion yen, citing government incentives that have stimulated car demand and a weaker yen against the euro.
       The forecast is based on an exchange rate of 132 yen to the euro, compared with 125 yen in the previous forecast,and 92 yen to the dollar, compared with 95 yen previously. The euro traded at 131.34 yen and the dollar at 89.83 yen as of 4.48 p.m. in Tokyo yesterday.
       The automaker raised its estimate for global vehicle sales this fiscal year to 1,155,000 from 1.1 million, after government rebates and tax cuts including the US cash for clunkers plan helped lift demand.
       Mazda's vehicle sales dropped 26%in the US and 23% in Japan through September this year. Sales in Europe fell 21% through August.
       The carmaker,13.8% owned by Ford Motor Co, has said it will improve fuel efficiency by 30% on average by 2015 compared with 2008 by introducing new gasoline and diesel engines.
       The company registered in July to sell as much as 100 billion yen of bonds within two years, according to a Finance Ministry filing.
       All Nippon Air, Asia's second-largest carrier, said in July it would raise as much as 142 billion yen selling new equity to buy planes, its first sale of shares since 2006.

BOW TO ENVIRONMENT DOES NOT DETRACT

2009-10-05T23:07:00.000-07:00

       Even luxury-car manufacturers are concerned with the environment these days.
       Take BMW for example: its new 7 Series flagship model may be a monstrous 5.2-metre limousine fitted with all the amenities you'd want in a car, but like other BMW models such as the 3 series or 5 Series, it also features the German auto-maker's EfficientDynamics philosophy.
       For Asian markets, the 7 Series is offered in a long-wheelbase version, and in Thailand the 740 Li, priced at Bt8.99 million (the price will go up to Bt9.29 million next year), is the top model in BMW's range. The other is the diesel-powered 730 Ld, which is priced at Bt7.59 million.
       Featured today is the 740 Li, with its large body and loads of luxury features raging from adjestable and ventilated rear seats with massage function to rear-seat entertainment systems, not to mention various safety functions. It weighs in at 1.9 tonnes. Despited this, BMW claims that the 740 Li has the average fuel economy of a regular mid-sized sedan. EfficientDynamics technology, which ranges from the use of highly efficient engines to weight reduction and anything else that might lower fuel consumption, like more efficient gearboxes, allows the car to average 10 kilometres per litre, with carbon dioxide emissions claimed to be 235 grams per kilometre.
       The heart of the 740 Li is its award-wining gngine, a 3-litre in-line six with twin turbochargers that pumps out 326 horsepower at 5,800rpm and 45Nm of torque, all the way from 1,500 to 4,500rpm.
       BMW is a company that is known for its loyalty to normally aspirated engines, and over the years the Munich-based manufacturer has come up with a number of arguments against the use of turbockhargers.
       When leaks came out of Munich that BMW was developing a turbocharged engine many years ago, the company dismissed it as "mere speculation."
       However, as environmental concerns became stronger and fuel consumption and emission standards became stricter, it became difficult to achieve the new standards while maintaining the same output with a normally-aspirated engine.
       Then came the 335i, a wonderful 300-horsepower coupe powered by the 3-litre twin turbo engine, and BMW's normally-aspirated-engine tradition was finally broken.
       So instead of the 740 Li coming with the usual 4-litre V8, it now comes with the turbocharged engine. It's as simple as that.
       Performance has been improved over the old model. There is 20 horsepower and 60Nm of torque more than the V8 and 0 to 100kph acceleration has been improved by almost a full second, to 6 seconds. On top of that, average fuel consumption has been lowered by 15 per cent.
       While 7 Series customers won't be worrying about fuel consumption, especially after spending almost Bt10 million on a car, they will be impressed by the other features on board.
       BMW claims that the 740 Li has more headroom and knee room for rear passengers than any other car in its class, and all non-driving features, such as climate control and entertainment systems, can be controlled from the rear seats through thei-Drive controller.
       From the driver's seat, there are more controls to play around with, and those who decide to purchase a 7 Series will need to have their drivers carefully read the entire owner's manual. BMW also offers driver training, which would be helpful.
       Among the car's highlights are a navigation system, head-up display, night vision, four-zone climate control, two hi-resolution 9.2-inch monitors for TV and DVD for rear passengers and a great-sounding surround hi-fi system with 16 speakers and a 80Gb hard drive for storing music. Music sounds better with the surround switched off, so let's keep that function for movies.
       The ride comfort is enhanced by a Dynamic Damping Control system that varies the suspension settings according to the road surface, and there are more driver-assistance systems such as the Integrated Chassis Management system, which orchestrates all active safety systems including Dynamic Stability Control, Dynamic Driving Control and Integral Active Steering (four-wheel steering), which helps improve high-speed stability as well as low-speed manoeuvrability.
       Braking performance is better than ever, with vented discs both front and rear that are governed by all sorts of electronics.
       Right next to the gearshift lever is a selector button that allows the driver to choose between comfort, sport and extreme sport, all of which give the 740 Li different characteristics.
       I had the 740 Li for a few days and it surely is easier to drive than the previous model. There is no problem with engine refinement or wind noise, and handling is easier than expected for a 5.2-metre car. While reverse parking, the screen on the centre console displays views from rear and side cameras, along with a suggested path outlined by graphics.
       The only problem is that I didn't get a chance to sit back and enjoy the other type of motoring comfort-as a rearseat passenger.

GM hopes to end Rayong work stoppage quickly

2009-10-05T23:05:00.000-07:00

       General Motors Thailand says it is determined to end the work stoppage at its Rayong plant as soon as possible to avert possible disruptions in vehicle supply to dealers and customers, said spokeswoman Sasinan Allmand.
       About 200 union workers filed a notice with GM on Saturday of their intention to strike yesterday to demand higher wages, welfare and benefits, but GM management rushed to close the plant before the strike began to ensure the safety and security of all employees and property.
       According to a GM statement, during the temporary closure, the company would continue to pay all wages - and variable bonus payments, welfare and benefits - to most of its employees,including some of the union employees who have registered to remain on duty.
       However, the unionised employees who are on strike would not be paid, it said.
       GM said it would endeavour to conduct further negotiations with the union members to seek an amicable solution to their demands as soon as possible.
       Ms Sasinan said 600 non-striking unionised workers were still on duty.About 1,700 workers are employed at the GM assembly plant, and half are union members.
       "We informed the workers who did not join the strike to stand by for plant reopening," said Ms Sasinan.
       "We are hoping to resume production as soon as the protest ends, hopefully within a couple of days. We have our negotiators meeting with the union members who are not satisfied with the onemonth bonus to be paid this month,"she said.
       The GM plant has a capacity to make 150,000 vehicles per year, but actual production is closer to 50,000.
       The plant's production hit a low of only 30,000 units earlier as a result of the auto industry's slump from the global downturn.
       "We are confident the plant closure will not affect our vehicle supply, but we have a contingency plan if the stoppage continues to ensure supply for dealers and customers," she said.
       She declined to reveal inventory at the plant or daily vehicle production numbers.

STRIKE CLOSES GM THAILAND FACTORY

2009-10-05T23:02:00.000-07:00

       GM Thailand's automotive assembly plant in the Eastern Seaboard province of Rayong was shut down yesterday as a result of a workers' strike.
       In a statement, the Workers Union of General Motors said it had submitted a strike notice to the management.
       A company source said several factors had led to the strike, including demands for more worker benefits.
       The strike led to a temporary closure of the facilities, in order to ensure the safety and security of all employees and property.
       The source said it remained unclear when the plant would reopen.
       A notice of temporary closure was issued last Saturday under the Employee Relations Act of 1975.
       During the temporary closure, GM Thailand said it would continue to pay all wages and benefits to all of its employees.
       In the meantime, GM Thailand will continue to negotiate with the union.

CHARITY MIDNIGHT RUN

2009-10-02T18:50:00.001-07:00

       All athletes, professional and amateur, are advised to prepare themselves for the 12th "Amari Watergate Hotel & BMW Thailand Charity Midnight Run" which will take place on the city streets on Sat,Oct 10.
       The only race in Bangkok to be held annually at midnight offers competitors a choice of two distances -6 and 12 kilometres. And over 5,000 runners, both local and foreign, are expected to participate.
       The city streets will be closed and protected by a police and security contingent and the runners will be supported along the route by residents and shop owners, together with the management and staff of the Amari Watergate Hotel.
       The male and female runners with the best record in the 12km distance will receive the royal trophy of HRH Princess Maha Chakri Sirindhorn,while winners in each age category,including the family team and the fancy team will receive a trophy, accommodation and dining gift vouchers from Amari Hotels & Resorts Group.
       Everyone who makes it to the finish line will also receive a special commemorative medal. After the race,there will be a cocktail party at the hotel's Henry J Beans Bar & Grill which also offers a raffle with lots of prizes. All proceeds from the event will go to charitable causes, including Chalerm Prakiat HRH Princess Sirindhorn School and Baan Gerda which supports HIV-infected orphans children in Lop Buri.
       The entry fee is 300 and 1,000 baht,and includes a complimentary running shirt and a chance to win prizes such as round-trip air tickets and watches.
       For more information, please contact Clark Hatch Fitness Centre of the Amari Watergate Hotel on 02-653-9000 ext 5780/2 or the hotel's PR department ext 5021.

Oil-sniffing dream

2009-10-02T18:48:00.000-07:00

       Looks familiar, is it a concept car that's been redesigned?
       Quite right, the L1 is the sequel to the original one-litre per 100km (or 100kpl)car Volkswagen made in 2002(see sidebar). It's still a tandem two-seat car with an extremely low 0.195 Cd aero efficiency. Made out of carbon-reinforced plastic, the whole car weighs only 381kg.Guestimate dimensions (because no official figures have been released) are around 3,800mm long,1,400mm wide and 1,135mm in height.
       Sounds more like a light plane than a car.What kind of engine does it have?
       A diesel hybrid. It has half a VW Golf's 1.6-litre oil-burning four-pot, meaning it's a twin-cylinder 800cc direct-injection turbo-diesel coupled to a tiny electric motor/generator. The engine can run in either a 7hp Eco mode or 29hp Sport mode. The 14hp electric motor helps it reach a top speed of 160kph and a 0-100kph sprint time of 14.3sec - as good as many conventional petrol B-segment hatchbacks today.
       Ok, I can live with that kind of performance.So what's the kick?
       The kick is that it consumes merely 1.38-litre of Euro 5 diesel per 100km or 72.5kpl which makes it the world's most frugal car. It also has the lowest exhaust emissions of only 36g/km of CO2- less than half that of the current Toyota Prius Hybrid.
       Why just a two-seater? And why in tandem?
       The logic is that most city dwellers commute alone or with one more passenger, so a two-seater suffices for this job description. The seats are arranged in tandem to allow for an efficient aero design with a long, tapered profile. This arrangement also has a safety advantage in that the cabin can have more crumple area on the sides than in conventional cars. Volkswagen claims that the L1's crash safety is similar to that of a GT racecar.
       Seriously, is it going to be made and sold?
       They claimed to be pushing it for production for 2013 citing progressively dropping construction costs (the carbonfibre materials).
       Yeah, yeah, didn't say something like that with the 1L?
       You're right again, Volkswagen did say that back in 2002 for small scale production by 2010, but this plan is stalled.
       So, are they giving us false hope again?
       What we think could happen in the mid-term is that the L1 could be the image maker for the imminent massselling Up! A-segment city/ecocar. It would not compete with a mass-selling hybrid leader like the Prius, but as an alternative to green lifestyle vehicles like the Peugeot RCZ Hybrid - if that ever gets built.
       THE OLD AMBITION
       Back in 2002, Volkswagen debut the world's first one-litre per 100km or the 1L car. It was 0.159 Cd aero efficiency.
       It weighed only 290kg thanks to carbonfibre body bolted over magnesium alloy frame and sporting lightweight components such as carbonfibre wheels,titanium hubs and aluminium brakes.
       It was powered by a tiny 8.4hp 299cc single-cylinder diesel assisted by a small electric motor/generator with auto start-stop electrically-controlled six-speed sequential manual.
       The streamlined body did away with wing mirrors,using video cameras instead for rearward views. It is smaller than today's L1 with dimensions 3,470mm long,1,250mm wide and 1,000mm tall.
       It was tiny but claimed to fully conform to the EUs safety laws.
       The seats are arranged in tandem to allow for an efficient aero design.

Multi-faceted concept

2009-10-02T18:47:00.001-07:00

       You could say, given that the e-tron has pure electric drivetrain to match the American carmaker's zero-emission supercars. But Audi actually doesn't share the same view; it merely wants to showcase what a sports car could be like in the future.
       Although Audi has given any hint of association with the RS badge, the e-tron,star of last month's Frankfurt motor show,shares the same basic concept with Audi's supercar currently on sale: aluminium spaceframe body and mid-engine layout.
       The e-tron concept has an electric motor spinning each of the four wheels,essentially maintaining the all-wheeldrive Quattro feature of Audi cars. The outputs are rated at 313hp and a stupendous 4,500Nm. Despite that eyepopping amount of torque, its 4.8sec 0-100kph time is still slower than any of the R8s on sale.
       So why bother with the e-tron?
       C'mon mate, this is an electric supercar we're talking about. In other words, it's a zero-emission car for high-performance driving enthusiasts. Moreover, the e-tron marks a new milestone for Audi's electric car project that will take off shortly with support from the German government.
       As many of you would know, there are many challenges in getting electric cars to the market, be it on the technical,infrastructural or financial side.
       Like so many other electric and hybrid cars being showcased by other manufacturers, the e-tron uses lithium-ion batteries which have become the accepted norm for the moment. If you'd like to know, the e-tron is claimed to be able to drive for 248km - twice the distance of most production-ready electric cars today - before heading to the electric socket.
       Will Audi make it then?
       Not likely for the moment. Electric drivetrains are still terribly expensive to make. Production costs would come down only when there are enough cars on the road using them.
       One way to fast-track such technology is to introduce hybrids first. Batterybacked electric motors coupled to either diesel or petrol engine may need to be introduced first - as Toyota, MercedesBenz and BMW are doing.
       So before we can really see an electric R8, a hybrid may come out first. Also,don't forget that Audi earlier showed a diesel R8 concept armed with a 500hp/1,000Nm 6.0-litre V12 which is far cheaper to produce than the e-tron, although rumours suggest it won't be made.
       Can the e-tron also be an experimental car in design terms?
       The e-tron is basically R8, although the European media was quick to point out that Audi could be hinting to a smaller R8 brother in the guise of R4, to be pinned with roadster models from Porsche and Volkswagen.
       The logic behind the R4 is to have a two-seater slot beneath the 911-chasing R8. Volkswagen has already given clues to a new mid-engine sports car based on the Concept BlueSport. Other sources also suggest that the e-tron's aggressive chinoir-headlamps could become a new design hallmark for Audi which could first appear in the all-new replacement for the A8 flagship saloon due to be unveiled later this year.
       The e-tron's dashboard looks equally as cool...
       Dashboards angled towards the driver are becoming the norm in Audis. In the e-tron, the effect is more pronounced,achieved by minimising the number of switches on the fascia.
       The centralised MMI function appears to stay, but the novelty is the monitor behind the steering wheel placed between the left and right dial acting as info-display pertaining to route guidance,traffic lights and traffic density to allow the driver to adjust the driving style.
       Don't try imagining it would work in busy cities like Bangkok noted for notorious traffic management handled by the police who have a penchant to manually control traffic from their air-con kiosks - even on some Sunday mornings.
       So like the e-tron's design and drivetrain, this interior could be pointing to new ideas we're likely to see in future Audis - the same way BMW did with its Concept Vision Efficient Dynamics (see Motoring , Sept 4) by introducing a host of new technical and design aspects.

POPULAR ENTERTAINMENT

2009-10-02T18:44:00.000-07:00

       These two d diesel-powered hatchbacks promise a b bit of fun while meeting your everyd day driving needs. But whichis the e real-world here?
ANDREW FRANKE L
       "The Golf is no beauty queen, but at least t it doesn't put you off every time you look at it;nor will your children n hate you for buying one"
       We may not always want to admit this, but the real world can be a tedious, frustrating and repetitive place.You read about fabulous cars driven under cloudless skies on deserted roads in exotic locations, then pick up your car keys and head out into a world of heavy traffic, heavier rain, rising fuel taxation and fractious children.
       This is the reality gap - the distance between the lives we'd like to live and those we actually do. And what you're reading here is a short but concentrated attempt to evaluate two cars seemingly ideally suited to this unfriendly, unsatisfactory and awkward real world.
       Because this is Autocar , the winner of this comparison must be both fun and sporting.
       And because it must also work in the longer term in the real world, so too must it be comfortable, spacious, frugal,practical and well built.
       It's a brief that Volkswagen's new Golf GTD appears born to fulfil. This is a GTI that's been back for seconds of common sense. For the price of little more than a second added to your 0-100kph time, you get a car that will do rather more nearly 20kpl instead of rather less than 15kpl.
       But on paper at least, the GTD seems trumped by the ageing BMW 120d SE. At B1.25m in the UK, it costs B20,000 more than the Golf. But for that, you're buying more power, better performance and even lower fuel consumption and CO
       2emissions.And lest we forget, this is a rear-drive BMW we're talking about. So it's fair to say that most of the money would be on it being more fun to drive than the Golf. So which is the new best hot hatchback for the everyday grind?
       The problems you inherit when you buy a 1-series are the same now as when the car was first launched five years ago: it's cramped and ugly.
       The Golf is no beauty queen, but at least it doesn't put you off every time you look at it; nor will your children hate you for buying one.
       The VW's rear seat package offers enough space in all three dimensions for even small to average-sized adults to sit in comfort.
       In the BMW, inferior head room is an irrelevance,because there's so little leg room that anyone short enough to occupy its rear is scarcely going to be troubled by its low roofline.
       The VW also offers the clearer, neater driving environment, as well as a more modern-looking cabin.
       The 120d's interior is perhaps more characterful and certainly more distinctive and sporting than the Golf's,but ultimately it works less well.
       On the open road, the competition is much tighter.You can tell the BMW's 2.0-litre motor hails from an earlier generation than that of the VW from its louder and more gruff voice. But while its torque is identical to that of the VW-361Nm at 1,750rpm- its 177hp is usefully chunkier than the Golf's 168hp.
       No surprise, then, that the BMW is a significant half a second quicker to 100kph; what's unexpected is that it doesn't feel it. Indeed, if you conduct a side-by-side drag race between the two, you'd swear it was the Golf that was a fraction quicker.
       The anomaly is explained by the BMW's weight and the location of the Golf's driveshafts. Fact is, the 120d is over 100kg heavier than the Golf, and that's more than enough to cancel out the BMW's power advantage.
       The only reason the VW lags behind statistically is that it lacks the off-the-line traction of its rear-drive rival.
       All this means is that you should neither dismiss the Golf for its apparently poorer performance nor allow the BMW to hoodwink you into thinking it's the quicker car;there is little or nothing in it.
       It is simpler to draw distinctions between the ways the two cars cope with a decent road, though ultimately it's no easier to choose between them.
       In shorthand, the Golf is the more capable, the BMW the more fun, and which therefore would suit you better depends on your priorities.
       The Golf feels good whatever you do with it; it's an easy car to place on the road, even at high effort levels.It doesn't resort to scrubby understeer except under unusual provocation and its body control is beyond reproach for what is, after all, a five-door diesel hatchback.
       The BMW seems substantially less engaging at first.Although it is a fractionally smaller car than the Golf, it feels bigger, less wieldy and therefore less enticing on those rare occasions when youre on a decent road and the rest of the world is not.
       But here perseverance pays, for while the Golf's demeanour remains constant pretty much whatever you do to it, so the BMW responds with rather greater enthusiasm.
       When you press on in the 120d, you'll find a car with a more neutral balance, one that's most receptive to mid-corner changes of line and, of course, with a much greater capacity for putting its power on the road.
       The differences aren't huge and you need a rarely chanced-upon environment to experience them, but they are there.
       To some, the simple knowledge that a humble diesel 1-series still displays the traits of more exalted rear-drive BMW's will be enough.
       Back in the more mundane world, it is the BMW that proves least keen on spending your money for you. Thanks only in part to its stop-start system, the 120d is substantially more frugal than the Golf, posting an almost freakishly good 20.8kpl on the combined cycle.
       There is nothing shameful in the Golf's 18.8kpl. But it's worth bearing in mind that for every 38 litres of diesel you put in the BMW, you'll need to drop about 42 into the Golf.
       If this test was simply designed to measure which one of the two was the better driver's car, we'd give a narrow victory to the BMW and have done with it.
       Then again, if those were the terms of reference, we'd never have got these two together in the first place. The truth is that neither is a great car to drive; the 120d feels dated and the Golf GTD is some distance from the dynamic standards set by its GTI stablemate.
       But throw in the requirement that these cars need to be lived with as well as driven and strong cases can be built for both.
       The BMW because it is both the more fun and frugal,the VW because it gives very little to the BMW on the open road while offering a substantially more spacious cabin, lower noise levels and a more modern, cohesive driving environment.
       So what to go for: the more flawed but rewarding BMW, or the still game and more rounded Golf? The heart says the BMW, while the head goes with the VW.But as a test specifically designed to test these cars in the real world, the final nod must fall in favour of the Golf.

Extraordinary sport-ute

2009-10-02T18:42:00.000-07:00

       The Range Rover Sport is probably the most controversial model ever made by Land Rover. It's also the most profitable single vehicle ever made by Land Rover.
       This is the new, thoroughly reengineered 2010 model. Not only does it get a redesigned, better-quality interior and restyled front end, but important changes have also been made to the drivetrain and chassis.
       For many buyers, the most significant upgrade will be the all-new supercharged V8 engine, which now offers 500hp and 646Nm of torque, with a claimed combined fuel economy of 6.7kpl. That's 31% more power,12%more torque and a 6% improvement in economy.
       This engine drives an updated sixspeed automatic gearbox and there's also the option of wheel-mounted paddle shifters.
       The Terrain Response set-up has been upgraded to include a new, sixth setting:Dynamic Program. This uses an adaptive damping system, in conjunction with the air suspension, which can make 500 calculations per second about the road and driving conditions. The rangetopping Sport also gets an updated Brembo braking system.
       The real appeal of this range-topping model is the supercar-standard engine.Under the hard acceleration of a tricky overtaking situation, the new V8 is extremely refined. Only a background hum is emitted from the engine bay, adding to the turbine-like sensations.
       On excellent Scottish Border roads,it doesn't feel like a 2.5-tonne SUV. It's extremely well balanced, tidy, controlled and contained. Dynamic Response and the active anti-roll bars keep this giant in check to a degree that drivers could once not have imagined. Even the ride is good on 20in wheels.
       Overall, there's a great delicacy to the way the chassis's electronic systems work together when it's driven briskly on winding B-roads. The new variableratio steering also has an accuracy that you never thought would be achievable in a car capable of hardcore off-roading.
       What really appeals is the cars extraordinary breadth of ability. It will cross deep rivers and clamber up otherwise unwalkable mud tracks but can then act either like a luxury car or a very rapid road car, depending on the driver's mood.
       I tried a full-bore 0-160-0kph sprint on a closed track and managed it in just under 19 seconds. The new V8 is significantly quicker at both accelerating and stopping than the outgoing model.
       The only fly in the Range Rover Sport's luxury ointment is that this is a car others love to hate. However, it does deliver the most extraordinary driving experience. Most of the time you can just bowl along, elbows perched on the door and centre tunnel, revelling in the V8's huge potential. Occasionally, you can open the taps and really fly.
       And there's no other car, perhaps not even the Range Rover itself, that offers such a sublime, relaxing driving position.
       Look past the Premiership-inspired bling and you'll have to conclude that it is one of the most remarkable - if not politically correct - cars ever to come out of the UK.

NO TOUPEES ALLOWED

2009-10-02T18:41:00.000-07:00

       In Thailand, there are two kinds of drivers who would consider a convertible: one, those in their late 30s and up reminiscing their college years in southern California driving a targa-top Honda CR-X Del Sol.The other are those whose dream cars are either a Ferrari or a Porsche, but realise that they may never be able to afford one or become too old to drive one.
       To the latter, it does not really matter whether their second or third car is a coupe' or a convertible as long as it looks sporty and they can shout "hey, look at me, I'm successful" really loud.
       What we have here this week are two of the "entrylevel" luxury roadsters that may appeal to the two group of buyers. First is the long-time sales champion in this little segment, the Mercedes-Benz SLK200K with 184hp 1.8-litre supercharged four-pot costing B4.5m.
       Its contender is the BMW's new-generation Z4 sDrive23i powered by a 204hp 2.5-litre straight six and comes with a price tag of B4.599m.
       The pair is quite evenly matched in just about every aspect: price, prestige and performance. With foldable metal hard-tops, they both double as two-seat roadsters and coupe's.
       From the outside, the second-generation SLK's design has stood the test of time pretty well considering this is its fifth year and has recently been facelifted. As per Benz's tasteful tradition, it looks well proportioned, sporty without being overtly garish and instantly recognisable as the baby SL.
       The Z4, on the other hand, is an all-new secondgeneration released only this year, and it shows how many fractions of a light year ahead it is in car design,meaning it captures your attention on its futuristic looks which takes a few minutes to take in. Our testers agreed that it was better looking, rather than weird, than the Benz.
       Inside, the SLK sold here has crime-scene red leather as standard to add zest to its otherwise sombre and conventional, yet ergonomic-friendly, dash and trim. The seats many not offer as much power adjustment as in the Bee-em, but it is snug and easy to get into a proper driving position.
       The steering wheel, though, looks unfashionably large,but the oval rim profile and its leather cladding are good to hold. The shift paddles would stand out better if they are in aluminium instead of black.
       The Z4 here comes in a more neutral cream-coloured leather trim and a dash design that may never be called exciting but doable with the aluminium panel right across it.
       The Bee-em's seat design might be modelled after some American cars with the back and headrests looking like a human finger. They offer good band adjustments,but getting into a sweetspot of a driving posture is tricky and the lateral support can be lacking.
       The steering wheel is the right size, but its thick round rim may not suit smaller hands. The aluminium shift paddles atop both horizontal spokes, however, ooze sporty purpose.
       In the Benz, you still turn the electronic key fob at the traditional steering column location to start the engine.And then the soulless supercharged four-pot engine thrum takes away your grin and you start wondering how much more for a V8(some B10m for an SLK55 AMG).
       The Bee-em has a trendier push-start button to fire up the engine. But once you do that and rev the straight-six up, nothing exciting could be found it's just smooth-revving and graciously refined.
       On the move with the SLK, you weave through city traffic enjoying its decently comfy low-speed ride that neutralises most bumps and potholes nearly like a saloon. But the engine needs constant jabbing at the throttle pedal taking away some of the citycruising smoothness. Traffic noise is hardly any worse than in, say, a C-class saloon which means it's quite good.
       The opposite is true in the Z4 as the throttle response is sharper and the heavier steering effort needed may not be appreciated by all. Still, the wheel feels noticeably lighter than in a 3-series saloon.
       If you think a Mini Cooper has a choppy ride in the city, then the Z4 is worse - not only does it thumps but also shudders lightly. In this car, you cannot ignore you're driving a convertible for the traffic noise seeps in.
       Out on the open road where both roadsters are more at home, the two's characters begin to diverge even more. The Benz's aging engine needs a bit of pushing to reach highway cruising speeds and is always hesitative, even in sport mode, to stomping on the gas pedal when passing power is needed.
       With a power-to-weight ratio of 130hp per tonne,there's enough oomph to enjoy for rather brisk but not fast driving. Perhaps you'd need to master paddleshifting rather than leaving the five-speed automatic in "drive" or even toggle the lever from side-to-side for manual shifting.
       In the Z4, it is more effective to flick the gear lever to sport mode then toggle it up and down for manual shifting. Whatever method you use to shift the Beeem's six-speed auto, the shift is positively quicker than in the Benz.
       The Z4's 138hp per tonne may look only marginally better than SLK's. But in real-world driving, the Beeem feels more alert and ready to translate any pedal action into forward movement. On paper, the Beeem has a 0.6sec better 0-100kph sprint time at 7.3sec than the Benz. And on the open highway, you'd be in front of the SLK most of the time.
       The SLK handles quite accurately eating up corners and curves like cutting butter with a hot knife. The steering that first feels kind of vague at slower speed does deliver what it takes to point the wheels where you want them at higher speeds.
       It is quite fun to exploit the chassis with the light rear tending to drift, but not unexpectedly, on hard cornering. Whatever the SLK can do with handling,the Z4 does it better with sharper steering, flatter cornering and apparently more rear-end stability.
       Even the brakes feel more progressive and reassuring in the BMW, whereas the rear discs on the Benz are prone to locking up under hard braking.
       Fuel economy may not be of any consideration to prospective buyers of these roadsters. But for the record, they did neck and neck with 9.5kpl and 9.7kpl,in favour of the SLK, with the tops up. And also for the record, the Benz's roof opens and closes about three seconds faster at 20sec than the BMW's pointing to a more efficient folding system.
       Other than that, it seems like the Benz cannot breach the Bee-em's bullet-proof hull of competence,but not quite. Despite the Z4 employing a threemode adjustable suspension, the normal or softest mode is a notch too stiff for most of Thailand's highways and city streets. The jarring over potholes and washboards is felt through the steering wheel and, more disturbingly, through the seats.
       The annoying wind noise above 110kph in the Z4 may be mediocre for a soft-top cabrio a decade ago,but it falls behind most modern hard-top convertibles we've tested so far.
       Our drive from Bangkok to Phetchaburi province was full of these road surface flaws and we could conclude that the good driving dynamics of the Z4 is outweighed by all the unpleasant shudders. Yes, you can drive the BMW harder and faster. But on typical bumpy Thai roads, you would feel more like being punished rather than rewarded.
       In the end, this means that there is still good reason to go for an aging Benz over a brand new BMW.

IT'S SHOW TIME

2009-10-02T18:39:00.000-07:00

       The sixth-generation Sonata from Hyundai has been deliberately styled to make Japanese saloons like the Honda Accord, Nissan Teana and Toyota Camry look bland.
       As seen in these pictures taken during the Sonata's launch in Korea late last month, the all-new midsize family saloon possesses sleek and modern design cues all over the car.
       The same has been done to the Sonata's interior with many features like the steering wheel and centre console looking like those found in the Teana.
       Hyundai believes that the new Sonata has lots of showroom appeal to divert buyers from cars offered by its Japanese rivals.
       As the Koreans know that customers in Asia and the US prioritise spacious interiors, the Sonata has new-found dimensions to basically match the classleading Accord.
       The wheelbase length of 2,795mm is only 5mm short of the Accord's and promises loads of legroom comfort for rear passengers.
       The Sonata is 20mm longer than before at 4,820mm,5mm wider at 1,835mm and 5mm shorter in height at 1,470mm. Giving cars a more dynamic appearance has already become the norm today for their makers.
       The new Sonata is said to tip the scales at 1,410kg,which is roughly 30-60kg lighter than the fourthgen model.
       Engine &Transmission
       At the time of launch Hyundai announced just one engine: an improved 2.0-litre petrol inlinefour with 165hp and 12.8kpl fuel economy that Hyundai says is the best in its class.
       That claim can be attributed to a brand new sixspeed automatic transmission developed in-house,which is said to be 12% more fuel efficient than a five-speeder and 12kg lighter in weight.
       The Camry uses four-speed and Accord fivespeed auto 'boxes, while the Teana takes a more sophisticated route with the stepless CVT type.
       The current 2.4-litre in the Sonata, which could be possibly tweaked to nearly 180hp, will appear next year when the Sonata is launched in the United States.
       Late next year when the car hits European showrooms, the Sonata is most likely to highlight a new range of highly efficient diesel engines that Hyundai announced in a statement earlier this year, well before the launch.
       The R Diesel engines feature a third-generation common-rail fuel injection. In 2.0-litre form, it produces 184hp/392Nm;2.2-litre generates 200hp/426Nm. This figures put the engines on par with those of BMW and Mercedes-Benz.
       Market & Pricing
       Apart from having a package and drivetrain technologies matching established players from Japan,the new Sonata will also be equipped with a comprehensive range of kits.
       Six airbags are standard, while a host of active safety tech like brake assist and stability control will be offered. Convenience items include sat-nav and an array of IT compatibility features.
       Although the previous Sonata was assembled in Thailand in 2.0,2.4 and bi-fuel CNG forms, the new model won't come immediately - its arrival here could be held back as late as 2011, long after it has made its debut in major markets around the world.
       Ever since Hyundai made a comeback to the Thai market, it has seriously considered offering the diesel version to make the Sonata stand out in its class in the B1.2-1.7m price bracket. None of the its intended rivals have diesels because they are not sold in Europe in their existing body variations.
       The Sonata seen here is dubbed the Asian and US version, while the Europeans could get a more compact variant possibly in the guise of hatchback or estate.
       Sources at Hyundai told Motoring that the Thai office has shown interest in assembling the new Sonata in the country, but it has yet to get the green light from its parent firm in Korea.

FROM MINOR TO NANO

2009-10-02T18:38:00.001-07:00

       Although there is a new automatic gearbox for the diesel, it's not coming to Thailand
       Honda has given its popular compact sportutility vehicle a mid-life refresh including new grille, bumpers and wheels, along with some mild alteration inside to the centre console.
       The minor-change CR-V - to be launched in November this year shortly before the Motor Expo will also see more sound-deadening materials to reduce road noise inside.
       Since virtually all SUVs in the B1-1.5m range offer a navigation system in top models, Honda will do the same with the CR-V. This will also give Honda the chance to up prices.
       The engines are carried over unchanged:150hp/190Nm 2.0-litre and 170hp/220Nm 2.4-litre four-cylinder petrol heads matched to five-speed auto.For the first time, there will also be FWDonly in 2.4 form, taking the choice of drivetrain to four.
       The 150hp/350Nm 2.2-litre turbo-diesel sold in Europe now comes with a fivespeed automatic. Even though Thai marketers at Honda once requested a diesel engine for the CR-V from its parent firm in Japan to match the Chevrolet Captiva and all the pickupbased SUVs, it is not coming to Thailand in this generation form.
       Since European diesel engines have particulate filter (PF) to comply with Euro 4 emissions standards,the PF must be removed if it comes to Thailand where Euro 3 is still in force.
       Sources at Honda said it was "against the corporate philosophy of the brand" to tamper engines to suit the needs of another market or region. Mitsubishi is also said to uphold such values.
       This means the diesel CR-V will hit Thai shores in 2012 at the earliest when Euro 4 standards come into effect. So far Honda is the only mass-market brand not to offer a diesel variation in the Thai SUV market.

World's first HYBRID SPORTS CAR

2009-10-02T18:36:00.000-07:00

       Uhh... it still looks like the original concept car...
       Yeah, except for some small details like the new rear bumper. That clearly shows the positive reaction Honda has received from the 2007 show car. Actually, the whole idea of the CR-Z is to launch a follow-up of the CR-X hatchback that was popular in the US during the late '80s.
       This is how it usually works with concept cars: come up with an early prototype to gauge public reaction, follow it up with a (very) nearproduction variation to drum up demand and launch it shortly after that.
       That's why the interior of the CR-Z you see here in this first pictures is remarkably the one you will see in showrooms. In fact, this is the biggest development of this so-called 2009 CRZ Concept (ignore the last word, if you need so).
       Wow! So Honda is making it...
       Definitely! That's what the company's top brass announced earlier this year, even though they haven't been specific about the launch date. But Motoring understands that the CR-Z will be launched in Japan next February after this final prototype is shown to the public at this month's Tokyo motor show.
       Honda intends to make the CR-Z its first sports car to get hybrid drivetrain. It follows the Civic Hybrid and Insight Hybrid. And it won't stop here; the Jazz will follow with a petrol/electric combination trailed by more offerings - just like archrival Toyota plans to do so in the next decade.
       Is the CR-Z getting Insight power?
       Technical information on the CR-Z is still being kept secret. Of course, the obvious candidate would be that from the Insight:88hp 1.3-litre petrol engine mated in parallel with electric assistance. But that system could prove a little to meek for the CR-Z's sporty nature. So in all likelihood the internal combustion engine could be sourced from the City/Jazz's:120hp 1.5-litre.Together with the battery-backed electric motors,power could reach 140hp.
       If you note the picture showing its interior,the CR-Z comes with a manual shiftstick to suit the sports car tradition. Hybrids usually come with CVT transmissions, but it is not known whether Honda will offer two-pedal setup for automatic-loving nations like Thailand.
       Since sports cars are driven usually harder than hatchbacks or saloons, Honda could be looking at another form of automatic transmission to suit the driving styles of CR-Z's customers.
       Are there only two seats like in the CR-X?
       Judging from its proportions, the CR-Z should maintain tradition. Since it is based on a truncated front-engine, front-drive platform of the Insight,which itself is already a small-ish B-segment car,it's highly unlikely that the CR-Z will have rear seats. You didn't hear CR-X owners screaming for them, right?
       So it'll be cheaper than the Insight?
       Not likely, mate. This is a sporty car, after all.So it could do with some image and right market positioning. Despite its B-segment size, the CRZ could wear C-segment prices to match specialties like the Volkswagen Scirocco, Volvo C30 and, to a certain extent, Mini.
       This means we are talking about B2-2.3m in Thailand including taxes. The Insight currently sells for B2m in the Thai grey market.
       And in case you might want to know, official imports of the CR-Z are unlikely because Honda Automobiles (Thailand) doesn't want to undertake sales of imported cars, fearing its large nationwide dealer network will have to bear increased spare parts costs and servicing complexities associated with hybrid-powered cars.
       But Toyota is selling the Camry Hybrid...
       True. But the Camry Hybrid is assembled in Thailand and is meant to be sold in large numbers.That's why the investment is more justified than in the case of Honda, which has yet to make a hybrid-equipped car on a scale similar to Toyota.
       Noteworthy, however, is Nissan's strategy to satisfy niche car buyers in Thailand, whereby it has entrusted 10 dealers around the country to handle sales and servicing of the 370Z sports car. In theory, this means these dedicated outlets could be selling more imported Nissans in the future.
       Mini-MPV preview
       Honda aims to make its next-generation MPVs more environment-friendly and versatile by previewing the Skydeck concept vehicle.Due to make its world premiere at this month's Tokyo motor show alongside the C-
       Z and EV-N, the Skydeck embodies the CR-Z's aggressiv-
       looking snout, headlights and aero-friendly bumper.
       Since it has three rows of seats, the Skydeck
       could preview the next-generation Stream-
       a mini-MPV whose sales have stopped in
       Thailand due to low popularity - with
       rear sliding doors for the first time.
       The engine in the Skydeck is unknown but could be a hybrid variation of the CR-Z. Honda has already made it clear that it wants to extend petrol/electric hybrid systems into as many production models as possible - just like Toyota.

General Motors to wind up Saturn brand as buyer drops bid

2009-10-02T18:34:00.000-07:00

       General Motors said on Tuesday it would down its Saturn brand after talks broke off with Penske Automotive GTroup on a bid for the nameplate.
       GM said in a statement that Penske "has decided to terminate discussions" to acquire Saturn "because of the inability to source new products beyond what it had asked GM to build on contract."
       "This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality," the US auto-maker said.
       As a result of the decision, GM said, "we will be winding down the Saturn brand and dealership network, in accordance with the wind-down agreements that Saturn dealers recently signed with GM".
       Penske said in a separate statement it had been unable to secure a deal with a car manufacturer to produce vehicles after the expiration of an agreement with GM to make cars on a contract basis.
       "Penske Automotive Group negotiated the terms and conditions of an agreement with another manufacturer; however, that agreement was rejected by the manufacturer's board of directors," the statement said.
       "Without that agreement, the company has determined that the risks kand uncertainties related to the availability of future products prohibit the company from moving forward with this transaction."
       Penske agreed in June to acquire the Saturn brand in a deal aimed at saving some 350 dealerships and 13,000 jobs at Saturn and its retailers in the US.
       Penske, a big auto-dealership operator headed by former race car driver Roger Penske, made the deal shortly after GM filed for bankruptcy protection in a government-backed reorganisation.
       GM was to continue to produce Saturn cars on a contract basis, including the Saturn Aura sedan, and the Vue and Outlook sport utility vehicles.

HONDA RACES TO ATTRACT A BIG CROWD

2009-10-02T18:33:00.000-07:00

       Japanese auto-maker Honda is expecting a big crowd at the fourth leg of the Honda Racing Fest this weekend at a temporary track built around His Majesty the King's 80th Birthday Anniversary Sports Complex in Nakhon Ratchasima.
       dThe event will be televised live on True Visions True Sport 2 channel from 2-4pm on Sunday.
       Organiser Anothai Eamlumnow said the track, a high-speed 2.4-kilometre circuit, was 90-per-cent ready for the weekend's races.
       "Tt's similar to last year's track, but we've improved many of the dangerous areas seen last year. The track is wider, and we've doubled the amount of safety equipment," he said.
       There will be four races at the event, including Jazz and Civic onemake races, as well as activities for visitors, such as pit tours to allow enthusiasts to get a closer look at the cars and how the pit crews work and gokart driving.
       There will also be a mini concert by Ruj, aka The Star.
       Despite the decline in the local automobile market, Honda has maintained exceptional sales figures from its jazz, City, Civic and Accord passenger cars.
       In the first eight months of the year, the Thai passenger-car market declined 11 per cent to 131,379 units.
       However, Honda sales grew 3.6 per cent to 50,961 vehicles in that period, while in August alone its sales shot up 15.8 per cent to 6,366 units.

MARCH ECO-CAR SET FOR PRODUCTION IN 2010

2009-10-02T18:31:00.000-07:00

       Nissan yesterday called its March eco-car, to be introduced next March, "right car at the right time and the right place".
       "I'm confident the eco-car will be highly successful in the market," said Toru Hasegawa, president of Nissan Motor (Thailand).
       Hasegawa showed journalists a sketch of the new model, the first from the eco-car project promoted by the government.
       The eco-car will play a major role in helping the Japanese brand double its sales volume in the local market within three years and increase its market share to 10 per cent, Hasegawa said.
       Total annual Nissan production in Thailand is expected to reach 200,000 units in 2012.
       The eco-car will have fuel economy of better than 20 kilometres per litre, carbon dioxide emissions of less than 120 grams per kilometre, UNECE 94 and 95 safety standards and room to fit five adults comfortably.
       Earlier in the morning, Hasegawa met with Prime Minister Abhisit Vejjajiva and confirmed the eco-car would be launched next March.
       He told Abhisit that due to the fluctuating market caused by the recession and unknown future events, it would be helpful if the government offered further tax privileges that would help eco-car manufacturers boost domestic volume.
       Nissan plans to make 100,000 eco-cars a year within five years: one-third for the domestic market and two-thirds for export to 13 countries.
       "Making 100,000 units a year is a very visible target, and I have 100-per-cent confidence in achieving this," Hasegawa said.
       Nissan Motor in Japan earlier announced it would model to Thailand, due to increasing production costs at home, and the car fits nicely with the eco-car profile.
       Hasegawa refused to give further details on the eco-car, including the platform.
       "I cannot disclose the pricing, but it will definitely be reasonable for the market," he said.
       Nissan's eco-car is not simply a "cheap" car, but rather a hit-tech small car that comes with outstanding fuel economy, high safety standards, a low emissions level and a large interior.
       Before assuming his present position in February, Hasegawa helped Nissan Motor double sales in the Middle East to 200,000 units a year and Nissan Indonesia increase sales fourfold.
       "I'd like to do the same here," he said.

Nissan pins hopes on eco-car

2009-10-02T18:29:00.000-07:00

       Nissan Motor Thailand is aiming for a double-digit market share in Thailand within four years under a business plan dubbed Revolution 2012.
       The company outlined the strategy yesterday while also introducing images of the new eco-car that it will begin making in Thailand next year, becoming the first carmaker to produce the widely anticipated small vehicles.
       The business plan resembles parent Nissan Motor Corporation's plan in 2008 called GT 2012, which stressed a commitment to quality leadership, zeroemission vehicle leadership and 5% revenue growth on average over five years.
       The five-year strategy was shelved when the global recession hit.
       But Nissan's Thai unit initiated its own strategy with full support from its parent company, said Nissan Motor Thailand president Toru Hasegawa.
       Nissan will launch at least one new vehicle every year until 2012, including the eco-car in March 2010. Nissan expects to be the first of six car companies that pledged to build an eco-cars in Thailand to complete the project.
       The plan also called for Nissan to increase vehicle production from 63,000 units in 2008 to 200,000 in 2012.
       Mr Hasegawa said the plan was based on the successful launch of the eco-car,improvement of management, product and sales/service quality, and implementation of the Nissan Way mindset for employees as a foundation for change in the corporate culture.
       Nissan has invested 5.05 billion baht in tooling, in-house vehicle production and parts imports for the eco-car.
       At least 30,000 units will be built next year, one-third for domestic sales and the reminder for the export market.
       He declined to provide a model name or retail price but insisted the price would be reasonable and affordable.
       The eco-car hatchback will be powered by a 1.3-litre gasoline engine and will be compatible with E20 fuel gasohol.
       The project will make Nissan's Thai operation an export hub, taking advan-tage of cost competitiveness through localisation and economies of scale.
       With its plan to raise its Thai market share to at least 10% in 2012 and with sales proportions set for the domestic and overseas markets, Mr Hasegawa is confident of selling 100,000 units by the fifth year of eco-car production as required by the Board of Investment.
       "The plan has started to show steady progress, with market share growing to 5.7% in fiscal year 2009 to date versus 5% last year. The new Teana introduced in March has led the way," he added.
       Hasegawa: Eco-cars to help market share
       Nissan's eco-car, due for a March launch,will have a 1.3-litre engine and can use E20 gasohol.

LIFE RETURNS TO JAPAN'S AUTO INDUSTRY

2009-09-30T21:16:00.001-07:00

       Toyota has announced its first year-on-year rise in foreign production in 13 months as Japan's auto giants slowly get back on track after the worst recession in decades.
       Toyota's smaller rival, Nissan, also saw the first increase in domestic sales since July 2008, while demand for honda vehicles rose for a second straight month, helped by government incentives for people to buy new cars.
       Toyata,the world's biggest automaker, said its global production fell 8.7 per cent year on year in August, to 508,673 vehicles, but that was better than a 20.1-per-cent drop in July.
       Outside of Japan,its output rose 4.7 per cent from a year earlier ato 309,589 vehicles, while domestic sales went up 9.5 per cent to 92,621.
       Nissan said its global production dropped 13.7 per cent year on year in August,to 217,954 vehicles,after a 15.9-per-cent drop in July. But global sales were just 0.2-per-cent lower than a year earlier at 299,400 vehicles and domestic sales gained 0.8 per cent to 40,925 vehicles.
       Honda's global production was down 16.6 per cent in August from a year earlier, to 246.403 vehicles,after a 24.3 per cent slump in July. But its production in Asia and China set all-time records and domestic sales rose 4.2 per cent to 40,720 vehicles, the company said.
       Vehicle sales in Japan rose in August from a year earlier for the first time in 13 months, an auto mobile dealers' association reported.
       Domestic auto sales fell to a 38 year low in the business year to March 2009 as the global economic downturn weighed on consumer sentiment.
       The popularity of fuel-efficient vehicles,buoyed by government tax breaks,is helping to re-energise ailing world auto markets.
       In the United States, Toyota's Corolla, Camry and Prius were some of the top-selling cars under Washington's "Cash for Clunkers" programme that offered customers.cash for trading-in gas-guzzler. The programme ended last month.
       Major Japanese auto-makers have suffered losses or sharply reduced earnings because of a dramatic slump in sales, prompting thousands of job cuts.
       In another sign of life slowly returning to the troubled industry Toyota said earlier this month that it would hire about 800 temporary workers.

HONDA HOPE NEW HYBRID WILL REPEAT INSIGHT SUCCESS

2009-09-30T21:14:00.000-07:00

       Honda is hoping to repeat the success of its Insight with another hybrid-only model, the CR-Z, and Japanese automarker is once again promising affordable prices.
       Honda stunned the industry with the low pricing of its Insight hy brid car, which went on sale in January at 1.89 yen million (Bt706,000) in Japan, and under US$20,000 (Bt669,000) in the United States.
       A version of the CR-Z that's close to the commercial model that will go on sale in February next year will be shown for the first time at the Tokyo Motor Show, which opens to the media on October 21 and to the public two days later. However,reporters got a preveil at the show,including the CR-Z, which stands for "compact renaissance zero."
       The Insight became a hit, selling more than 65,000 units globally, mostly in Japan, where ecological tax breaks and cash-for-clunkers programmes have boosted hybrid sales.
       The arrival of the Insight also helped pressure rival Toyota to keep the remodelled Prius hybird, which followed a few months later,at a relatively cheap price, starting at 2.05 yen million in Japan and $22,000 in the US.
       The CR-Z has a 1.5-litre engine and is bigger than the Insight, which has a 1.3-litre engine, but smaller than the 1.8-litre Prius.
       Honda appears to be keeping the prius in mind when setting the CR-Z's price.
       "If this costs as much as 2.7 yen million, no one is going to take another look at this car," said CR-Z engineer Takashi Nagura, while declining to give a price.
       The new model targets singles and childless couples, rather than families, with its curvaceous sporty design. It also doesn't have much back-seat room.
       Honda will also be showing a tiny retro-looking electric vehicle called the EV-N at the Tokyo Motor Show.
       Designers usually like to give a cube-like shape to electric vehicles to accentuate tha fact that they don't have a petrol engine and don't need to look like a typical car. But Honda has deliberately given the EV-N a front that looks like it can accommodate an engine, although all that's beneath the hood is luggage space.

       A HYBRID CR-Z is shown in a Tokyo studio on September 18. Honda is hoping to repeat the success of its Insight with this new hybrid-only model.

Honda has high hopes for hybrid

2009-09-30T21:12:00.000-07:00

       Honda Motor Co is hoping to repeat the success of its Insight with another hybrid-only model, the CR-Z.And the Japanese automaker is promising affordable pricing - again.
       Honda stunned the industry with the low pricing of its Insight hybrid car,which went on sale in February at 1.89 million yen ($20,000) in Japan, and under $20,000 in the United States.
       The version of the CR-Z that's close to the commercial model going on sale in February will be shown for the first time at the Tokyo Motor Show. The show will be open to media on Oct 21, ahead of its official opening on Oct 23, and run through Nov 4.
       Reporters got a preview of the models Honda will unveil at the show, including the CR-Z, which stands for "compact renaissance zero."
       The Insight became a hit, selling more than 65,000 units globally since going on sale in January, mostly in Japan, where ecological tax breaks and cash-forclunkers programs have boosted hybrid sales.
       The arrival of the Insight also helped pressure rival Toyota Motor Corp to keep the remodeled Prius hybrid, which followed a fewmonths later, at a relatively cheap price, starting at 2.05 million yen ($22,000) in Japan, and $22,000 in the United States.
       Honda appears to have in mind as a rough reference the Prius in setting the CR-Z price.
       The CR-Z has a 1.5 litre engine and is bigger than the Insight with a 1.3 litre engine, but it's smaller than the 1.8 litre Prius.
       "If this costs as much as 2.7 million yen ($30,000), no one is going to take another look at this car," said Takashi Nagura, an engineer for the CR-Z, while declining to give a price.
       The model targets empty-nesters,singles and childless couples, rather than families, with its curvaceous sporty design. It also doesn't have much backseat room.
       At the Tokyo Motor Show, Honda is also showing a tiny retro-looking electric vehicle called EV-N.
       Designers usually like to give a cubelike shape to an electric vehicle to accentuate it doesn't have a gas engine and doesn't need to look like a typical car.
       But Honda purposely gave EV-N a front that looks like it can fit an engine,although all that's there beneath the hood is a trunk.
       "We wanted to create a lovable and fun design," said Honda official Yoshiro Tanaka.
       Honda is also showing another hybrid at the show - the futuristic-looking sixseater Skydeck, which is still a concept model with no immediate plans for a commercial release.

Toyota hurt but not beaten by mat woes

2009-09-30T21:10:00.000-07:00

       Toyota's biggest ever US recall is an image blight, dealing a blow right when the Japanese automaker had been planning a North American marketing blitz to turn around its money-losing business.
       Yet the news could have been worse for Toyota Motor Corp.
       The problem can be fixed with relative ease by exchanging floor mats, when some recalls involve taking apart cars.
       Analysts said yesterday the flaw was unlikely to exact a great toll on Toyota's already-suffering bottom line.
       "It's making big headlines because of the big numbers, but in terms of the company's profits, it is not likely to have a big impact," said Mamoru Katou, auto analyst with Tokai Tokyo Research.
       As many as 3.8 million Toyota vehicles in the United States may need to replace floor mats that are suspected of causing accelerators to get stuck, leading to crashes.
       The recall would involve popular models such as the Toyota Camry, the top-selling passenger car in America,and the Prius, the best-selling gas-electric hybrid, although it doesn't include the third-generation Prius that went on sale earlier this year.
       Toyota has expanded globally, riding on its reputation for sterling quality,and became the world's biggest automaker in 2008, surpassing General Motors Co.
       But even Toyota officials have acknowledged that recalls have been surging in recent years, and more efforts are needed to ensure quality.
       Toyota spokesman Yuta Kaga in Tokyo said it was still unclear whether the company will issue a formal recall over the floor mats."For now, Toyota is telling owners to take out the mats, and not replace them while the company investigates causes."
       He denied a Kyodo report that said Toyota was scrambling to check if the same problem was affecting vehicles sold in Japan.
       The company did not yet have an assessment for the costs, including legal fees or liability costs.
       Ryoichi Saito, auto analyst for Mizuho Investors Securities in Tokyo, said changing a floor mat was likely not as expensive as dealing with a defective transmission or engine.
       "Recalls are never good for a company's image," he said."But I don't foresee major damage to Toyota's earnings."
       The floor mat problem is just the latest in Toyota's troubles.
       The world's biggest automaker by global vehicle sales, Toyota was seriously battered by the credit crunch and auto slump that struck last year, sinking to its worst ever yearly loss of 437 billion yen ($4.9 billion) for the fiscal year ended March 31.
       Toyota is forecasting a 450 billion yen loss for the fiscal year through March 2010, although hopes surfaced have lately that the worst may be over, with sales recovering enough to allow Toyota to project a narrower loss.
       The automaker has been preparing an aggressive marketing campaign in North America for the coming months,although Kaga declined to confirm a reported $1 billion in spending.
       Toyota announced yesterday it was rehiring 1,600 contract workers at its Japanese plants, whose contracts had not been renewed during the slowdown.Toyota said overseas and domestic sales were recovering, boosted by ecological and tax incentives around the world.
       Earlier this month, the automaker said it was adding 800 such workers, because of booming Prius sales, but said that was now being doubled.
       The National Highway Traffic Safety Administration has said it had received reports of 102 incidents in which the accelerator may have become stuck on the Toyota vehicles involved.
       The inquiry was prompted by a crash in August in California of a Lexus barreling out of control, killing California highway patrol officer Mark Saylor,45, and three family members.
       The recall will affect 2007-2010 model year Toyota Camry,2005-2010 Toyota Avalon, 2004-2009 Toyota Prius,2005-2010 Tacoma,2007-2010 Toyota Tundra,2007-2010 Lexus ES350 and 2006-2010 Lexus IS250 and IS350.

CAN ELECTRIC CARS MAKE INROADS INTO THE MASS MARKET?

2009-09-27T19:34:00.000-07:00

       The new generation of electric cars has been one of the talking points
       at this year's Frankfurt Motor Show By James Moore
       "They're dreadful." Charles Cohen's view of electric cars is unequivocal. He should know, he drives one. The chief executive of mobile phone gaming company Probability is the (less than) proud owner of an Aixam Mega City, which he uses to get into his London office.
       It is, he explains, because the incentives are compelling. Electric cars incur no congestion charge, can be parked for a snip and charged up for free. And there's no road tax.If only the driving was a better experience."They're beyond appalling, really. They won't even get up Hampstead Hill. But effectively you're paid to do it if you work in Westminster. The next generation will be better, though," says Mr Cohen.
       It's that generation that was on display at the Frankfurt Motor Show this month as manufacturers fell over each other to show how clean and green their cars are. The "taxis" ferrying journalists around were plastered with stickers claiming minimal emissions. The new electric models claim zero. Powered by a lithium-ion battery similar to those inside notebook computers - the range (always a problem) claimed for the larger models is more than 160km with the possibility of reaching speeds of 110-130kph.
       The UK government has announced a ฃ10 million (539 million baht) loan to India's Tata Motors in order to make electric cars in
       the UK. Part of a scheme backing low-carbon tec-
       nology in the car industry,
       it will support a ฃ25 million investment by Tata in its West Midlandsbased European Technical
       Centre (TMETC) to develop and manufacture "green" vehicles. Tata has developed a four-seater electric car, with a range of up to 200km and a top speed of 105kph. It will go into production before the end of the year.The Renault-Nissan Alliance has also staked much on being the leader in the field, with a ฃ3.6 billion investment in nextgeneration electric cars. Simon Sproule, head of global communications for the firm, says:"The current generation to the next generation is like VHS to DVD. Electric vehicles have come and gone many times in the past, but they have never really been successful because the products have never been acceptable to the mass market. There has also never been the infrastructure to support it. That's going to change."
       If Renault is right, its Zoe, along with the Tesla, the VW E-up plus the electric Ford Focus and the electric Mini will be replacing petrol-engine cars throughout the UK. In a world where, for the first time, urban residents outnumber country dwellers,"clean" vehicles capable of making short journeys in comfort should come into their own.
       "We have a confluence of factors that make the electric vehicle viable," Mr Sproule argues. This includes a steady roll-out of charging points with other ideas, such as exchange stations to enable people to swap spent batteries for full ones.
       Not everyone is convinced. Tim Urquhart,senior automotive industry analyst at IHS Global Insight, notes that car-makers are now "investing very heavily" in electric. But,he says, there are still obstacles in the way of mass take-up."There is the infrastructure for a start. Renault are trying to overcome this with battery-swap facilities, like petrol stations. But to do this people have to be trained, land has to be bought and stations have to be built. There are massive cost implications. Even then, assuming you can get over that, electric is not going to be the beall and end-all. Even with a 160km range,they are never going to work for your sales reps."
       Mr Urquhart also says that the claim that electric cars provide "emission-free motoring"is untrue, particularly if the electricity that powers them comes from coal-fired power stations. And how would the energy-thirsty UK cope with the demand electric cars could create, given the "supply gap" the country is facing?
       He argues that petrol engines, driven by government demands, are becoming increasingly efficient themselves."The Blue Motion Polo does 70 to 80 miles per gallon [25 to 28km/litre]. That's pretty impressive."
       Ultimately, though, he says that while the car-makers are charging ahead with investment in electric, the technology will probably meet in the middle somewhere for the mass market, probably with an ultra-efficient petrolelectric hybrid.

WEALTHY PEOPLE PREFER FAMILY OVER FANCY CARS

2009-09-27T19:33:00.001-07:00

       Wealthy professionals and business owners aim to quadruple their assets over the next decade and are more likely to spend their riches on family than sports cars and safaris, according to a study released at the weekend.
       About 41 per cent of the 1,414 people surveyed, currently worth an average of US$2 million (Bt68 million), made money through the financial crisis and 78 per cent expect to increase their wealth in 2010, according to the study by London-based wealth management adviser-Scorpio Partnership and Standard Chartered.
       Such investors, including doctors, lawyers, architects and entrepreneurs, comprise a "global tribe" of sveral million that is often misunderstood by wealth managers, said Sebastian Dovey, Scorpio's managing partner.
       Upwardly mobile professionals are preoccupied with schooling, holidays and family life, rather than the helicopter flighrs and "once-in-a-lifetime safaris" marketed by pricate banks, he said.
       "It's one of those myths that if you're rich, you're going to be brash," Dovey said. "Of course there are inidivuduals who liek to buy the flash red Lamborghini, but the vast majority are looking for the quality Volvo."
       Wealth managers should appeal to this growing source of potential clients as they seek to increase assets under management after the global recession, Dovey said.
       Scorpio's survey was conducted between May and June with the assistance of branding firms Morar Consulting and Goosebumps.
       Global wealth decreased 11.7 per cent to $92.4 trillion last year, according to a survey by Boston Consulting Group, the first drop since the study began in 2001.
       "It's not the secret service world of finance, this is part of the high street," Dovey said. "The wealth industry has been built on the assumption that the rich will come to them, but they don't have to. They could choose to buy property."
       Wealth managers need to better understand the outlook of their clients and potential customers, Peter Flavel, global head of Standard Chartered Private Bank, said.
       "We also need to understand the emotional link between life and wealth," Flavel said.
       "What are the goals, motivations and ambitions of those who have every expectation of increasing their wealth in the future?"
       UBS Barclays are two of the first wealth managers to recognises the need to understand and a wider audience, Dovey said.
       Barclays Wealth asks clients to complete psychological tests to assess their risk appetite and reaction to large gains or losses to help guide investment advice.
       A report published in June by the Barclays unit found that rich investors were paralysed because of concern markets may decline further. More than two-thirds of 2,100 people surveyed worldwide said the risks of price fluctuations were too high.
       "While the economic crisis has given the future wealthy pause for thought about how to achieve their financial targets, most remain highly ambitious that they can quadruple their current levels of wealth, typically within a 10-year time period," Scorpio said.

       Upwardly mobile professionals are preoccupied with schooling, holidays and family life, rather than helicopter flights and once-in-lifetime safaris trips.

JLR to close one of two British plants

2009-09-27T19:31:00.000-07:00

       Jaguar Land Rover said on Thursday that it planned to close one factory in England and would introduce a new model of the Range Rover sport utility in a bid to reverse recent losses.
       The firm, owned by Tata Motors of India, said it would decide next year whether to shut its factory at Castle Bromwich, which makes Jaguars, or its Solihull plant, which makes Range Rovers.
       No compulsory redundancies would be involved in the closure, the company said, but unions reacted angrily to the company's announcement that it will close its defined-benefit pension plan to newmembers, and make other changes for existing members.
       "While Unite welcomes moves to green the JLR product range, we are deeply concerned that an agreement struck with the union barely six months ago will not now be upheld and that the company is seeking to close the final salary pension scheme," said Dave Osborne, national officer of Unite.
       "In April our members agreed to changes to terms and conditions of their employment in order to give the company financial security, but like Oliver Twist they are coming back for more. It appears that the company is making our members pay for their failure to secure government funding."
       The GMB union "will be opposing everything we have heard so far," said Bert Hill, GMB's regional officer.
       Last month, talks collapsed with the British government about guaranteeing a ฃ340 million ($554.7 million) loan from the European Investment Bank to fund research to develop more environmentally friendly cars .
       Tata Motors said at the time it was securing guarantees from commercial banks instead.
       Jaguar Land Rover has cut about 2,500 jobs in the past year, frozen pay and canceled bonuses.
       The company has about 5,000 workers in Solihull, 2,000 in Castle Bromwich and 1,800 at Halewood near Liverpool,where it says it plans to add 800 jobs in the restructuring.
       The company also confirmed it would move into production with the compact LRX Range Rover, which was introduced as a concept model at the Detroit auto show last year. The British government has offered a grant up to ฃ27 million ($43.7 million) to support the new model.
       "This is a plan that recognises the impact the economic collapse has had on our business, and at the same time the opportunities that lie ahead for these two great brands," said Jaguar Land Rover CEO David Smith."We are confident that a new more efficient and competitive structure combined with future investment will unlock the true potential of this business."
       A 52% drop in sales at Jaguar Land Rover dragged Tata Motors to lose 3.3 billion rupees ($67.2 million) in the AprilJune quarter. Tata acquired the British carmaker from Ford last year.AP

       Rajiv Dube, left, president of passenger cars, and Rohit Suri, head of the premier car division of Tata Motors, pose with the Freelander 2 during its India launch in Mumbai on Tuesday. Tata,which recently acquired Jaguar Land Rover from Ford Motor, will sell the Freelander 2 in India with a starting price of 3,379,000 rupees (approximately $70,000).

Ford plans to rev up Chinese production

2009-09-27T19:30:00.001-07:00

       Ford Motor Co said yesterday it planned to spend $490 million on building a third assembly plant in China, ramping up production to meet surging demand in this fast-growing market as the US automaker expands in Asia.
       The factory, to be built in the central Chinese city of Chongqing, will make the next-generation Focus compact car,which Ford plans to sell globally.
       The announcement from Chongqing came the day after the Dearborn,Michigan-based automaker unveiled a made-in-India compact car 'Figo'- part of a plan to boost sales in Asia, a region the US automaker has hardly dented but is counting on to drive growth.
       The four-door Figo, which is Italian slang for 'cool', will go on sale in India during the first quarter of next year.
       "Today's announcement reinforces our commitment to the further expansion of our China operations to meet the continued rise in demand from Chinese consumers for world-class Ford products and services," Ford chief executive Alan Mulally said in a statement.
       In India earlier this week, Mulally said he expected a third of global car sales to come from Asia in 20 years, a third from the Americas and a third from Europe and Russia.
       China is proving a lifesaver for all the big automakers, helping offset miseries elsewhere.
       Total sales in January-August surpassed those in the US for all but two months, rising to 8.33 million units, up nearly 30% from a year earlier, according to the China Association of Automobile Manufacturers.
       Sales should soar to 12.6 million units this year, up 35% from 2008, boosted by subsidies that the industry is lobbying Beijing to extend, Xu Changming, a senior economist with the Cabinet's State Information Centre, said at a seminar in Beijing yesterday.
       "The government is due to decide by mid-December," Xu said,"if it will continue the subsidies, which are aimed at promoting energy-efficient vehicles."
       "If the policy is extended to next year,rapid growth of auto sales will be sustained," Xu said."Otherwise, it will fluctuate, and it's hard to predict the degree."
       The Chongqing plant, part of Ford's joint venture Changan Ford Mazda Automobile Co, is the third for Ford in China and its second in Chongqing, an industrial hub of 30 million people sprawled along the upper reaches of the Yangtze River.
       Slated for full completion by 2012,Ford said the plant would be equipped to make other small cars on the company's global C-car platform in addition to the Focus.
       The Focus, scheduled to debut in January at the North American International Auto Show, represents a shift toward C-segment vehicles that Ford says it expects to account for nearly 28% of global sales by 2013.
       Ford lags behind other automakers in Asia, capturing only 2% of auto sales there, compared with nearly 15% in North America and 10% in Europe.
       Ford currently produces 450,000 vehicles in China annually."The new Chongqing facility will initially be able to manufacture 150,000 cars per year,with the capacity to produce 600,000 by 2012 when the plant is at full capacity,"the company said.
       Ford's current plant in Chongqing makes the Ford Focus, Ford Mondeo and Ford S-MAX. Its plant in Nanjing, in eastern China, makes the Ford Fiesta.
       Changan Ford Mazda Engine Co also has an engine manufacturing plant in Nanjing with an annual capacity of 350,000 units - one of the largest in China.
       Ford's other partner in China, Jiangling Motors Corp, makes commercial vehicles, including the popular Ford Transit van.
       Ford also says it plans to introduce four new vehicles in the Chinese market in the next three years.

Corporations hit brakes on F1 spending

2009-09-27T19:28:00.000-07:00

       Corporate invitations to this weekend's Formula One race in Singapore have slowed with recession.
       Last year, tickets for hospitality suites and grandstand seats were distributed freely by many corporate sponsors. Fuelling the generosity was the hype surrounding the city's inaugural Grand Prix as well as the novelty of a night race.
       This year, financial turmoil seems to evaporated that generosity. The motorrelated companies and banks that had F1 programmes in 2008 have scaled back or completely halted such activities.
       Daimler, for example, is one of those scaling back its participation this year.
       The German manufacturer, which makes Mercedes-Benz cars and also supplies engines to the McLaren, Brawn and Force India teams, invited 70 guests to the Paddock Club in 2008. This year,the number is nearer 30 and only business associates are on the list, while last year VIP customers were also invited.
       The Paddock Club is situated in the Pit Building and is the most expensive hospitality suite available. Entry costs S$8,000 per person this year.
       Daimler is also handing out fewer grandstand tickets, from about 500 in 2008 to only 120 in 2009. And while a third of last year's guests came from overseas, none have come this year.
       It is the same story at Shell. The petroleum giant is the fuels partner of the Ferrari team and while Paddock Club invitations were sent out for the first Singapore Grand Prix, only tickets to Pit Straight Sky Suites are available this year.
       The number of people invited is also understood to have plunged and the guests are restricted to a few Shell customers and business partners.
       Among financial institutions, OCBC had booked a Paddock Club suite for about a hundred people last year but is not taking part in F1 this year.
       Royal Bank of Scotland (RBS) is also much quieter. RBS is a big sponsor of the Williams F1 team and last year brought its global ambassador and former F1 champ Jackie Stewart for interviews.
       But since the onset of financial crisis and after billions of pounds in losses,the bank has announced it will not be renewing the F1 sponsorship deal when it expires at the end of the 2010 season.
       Some banks still entertaining corporate guests are restricting invites to their most important clients.
       Just one bank seems to have bucked the trend. DBS, which wasn't involved in F1 last year, will be this year.
       Race promoter Singapore GP (SGP)said almost 20 financial institutions would entertain clients at the race, about the same number as last year.
       "Some banks did decrease their orders while a number significantly increased the numbers booked in 2008," said an SGP spokesman. He added that current corporate hospitality sales "are meeting our expectations for Year 2".
       But it appears that those invited have generally accepted the "downgrade".
       "The economic environment has not been good, so everyone is looking at cost control," said an executive of one large company."But we still want to maintain relationships so we are still doing something and although it is not at the same level as before, our partners understand the situation."
       Overall, SGP called the figures both for general ticketing and corporate hospitality "extremely good compared with other circuits, for this season".
       The spokesman said:"Within the context of the current economic situation,SGP's achievement is nothing short of sterling."BUSINESS TIMES
       The Marina Bay Circuit is seen from a room of Swissotel The Stamford in Singapore at dusk.The Formula One Singapore Grand Prix is scheduled to run on the street course tomorrow night.

ELECTRIC CARS HOLD KEY TO CLIMATE-CHANGE BATTLE

2009-09-27T19:26:00.000-07:00

       THE KEY TO climate change control lies in improved technology. We need to find new ways to produce and use energy, meet our food needs, transport ourselves, as well as heat and cool our homes that will allow us to cut back on oil, gas, coal, nitrogen-based fertiliser and other sources of the climate-changing greenhouse gases.
       There are enough good options available to suggest that the world can accomplish the goal of controlling climate change at a reasonable cost (perhaps 1 per cent of global income per year) while enabling the world economy to continue to grow and raise living standards. One of the most exciting developments on the horizon is the new generation of electric automobiles.
       In the earliest days of the sutomobile in the late 19th century, many kinds of cars competed with each other - stean, battery and internal combustion engine (ICE). The gasoline and diesel-powered internal combustion engines won with the success of the Model T, which first rolled off of the assembly line in 1908. One hundred years later, competition is again stirring.
       The age of electric vehicles is upon us. The Toyota Prius, a hybrid-electric vehicle first introduced in Japan in 1997, marked an initial breakthrough. By connecting a small generator and rechargeable battery to the braking system of a standard car, the hybrid augments the normal engine with a battery-powered motor. Petrol mileage is sufficiently enhanced to make the hybrid commercially viable and fuel seving vehicles will become even more commercially viable when consumers are taxed for the carbon dioxide they emit from their vehicles.
       Much more innovation is on the way, led by General Motors' plug-in hybrid, the Chevy Volt, at the end of 2010. While the Prius is a normal ICE automobile with a small motor, the Volt will be an electric vehicle with an engine alongside.
       The Volt's battery will be a cutting-edge, high-performance lithium-ion battery, which promises a range of 65 kilometres per charge and a six-hour recharge time drawing from a normal wall socket. Based on typical driving patterns, the Volt will get so many kilometre on the battery that it will achieve around 370 kilometres per gallon of petrol!
       Larry Burns, the visionary head of GM's research and development until his retirement recently, sees the electric vehicle as much more than an opportunity to save petrol, important as that is. According to Burns, the electric-vehicle age will reshape the energy grid, redefine driving patterns and generally improve the quality of life in urban areas, where most of the world's population will live and drive.
       First, there will be many types of electric vehicles, including the plug-in hybrid, the all-battery vehicle, and vehicles powered by the hydrogen fuel cell, essentially a battery fed by an external source of hydrogen. These different vehicles will be able to tap into countless energy sources.
       Solar, wind or nuclear power - all free of CO2 emissions - can feed the power grid that will recharge the batteries. Similarly, these renewable energy sources can be used to split water into hydrogen and hydroxylion, and then use the hydrogen to power the hydrogen fuel cell.
       Second, the storage capacity of the vehicle fleet will play an important role in stabilising the power grid. Not only will battery-powered vehicles draw power from the electricity grid during recharging, but when parked, they can also feed additional power back into the grid during periods of peak demand, the automobile fleet will become part of the overall power grid, and will be managed efficiently (and remotely) to optimise the timing of recharging from and returning power to the grid.
       Third, electric-powered vehicles will open up a new world of "smart" vehicles, in which sensor systems and vehicle-to-vehicle communications will enable collision protection, traffic routing and remote management of the vehicle. The integration of information technology and the vehicle's propulsion system will thereby introduce new standards of safety, convenience and maintenance.
       These are visionary ideas, yet they are within technological reach. But implementing these concepts will require new forms of public-private partnership.
       Automakers, utility companies, broadband providers and government road builders will each have to contribute to an integrated system. All of these sectors will require new ways of competing and cooperating with the others. The public sector will have to put forward funding to enable the new generation of vehicles to reach commercialisation through R&D outlays, consumer subsidies and support for complementary infrastructure (for example, outlets for recharging in public places).
       The new age of the electric vehicle exemplifies the powerful opportunities that we can grasp as we make our way from the unsustainnable fossil-fuel age to a new age of sustainable technologies. Our climate negotiators today bicker with each other because they view the climate challenge only in negative terms: who will pay to reduce fossil-fuel use?
       Yet Burns's vision for the automobile reminds us that the transition to sustainaility can bring real breakthroughs in the quality of life. This is true not only in automobiles, but also in the choice of energy systems, building designes, urban planning and food systems (remambering that food production and transport account for around one-sixth of total greenhouse gas emissions).
       We need to rethink the climate challenge as an opportunity for global brain storming and cooperation on a series of technological breakthroughs to achieve sustainable develpment. By harnessing cutting-edge engineering and new kinds of public-private partnerships, we can hasten worldwide transition to sustainable technologies, with benefits for rich and poor countries alike - and thereby find the basis for global agreements on climate change that have so far proven elusive.

       JEFFREY D SACHS is professor fo economics and director of the Earth Institute at Columbia University. He is also a special adviser to United Nations' secretary-general for the Millenium Development Goals.

LAGGING BEHIND GM,FORD EXPANDS NEW PLANT IN CHINA

2009-09-27T19:25:00.000-07:00

       Ford and its Chinese partner announced yesterday they will build a third plant in China as the US automaker struggles to impreivove its weak performance in teh world's strongest market.
       Ford will run the new US$490 million (Bt16 billion) plant is south western Chongqing through Changan Ford Mazda, its joint Venture with Chongqing Changan Automobile and Japan's Mazda Motor, the company said.
       The plant, due to open in 2012, will produce Ford's Focus copact car with an intiial capacity for 150,000 vehicles a year, the US auto giant said.
       The New facility will boost Ford's and Mazda's combined annual production capacity to 600,000 vehicles from 447,000 in China - where it is lagging behind US rival and local market leader General Motors, Ford said.
       GM's partnerships and joint ventures give it a total capacity of 1.29 milion vehicles a year, including low-cost micro vans.
       Ford ranks number 12 in terms of sales in China, according to analysts JD Power and Associates, lagging far behind GM, Volkswagen, Hyundai Motor Company and Toyota Motor Company - China's top four automakers by sales.
       Ford sold 197,212 vehicles in the first half of the year, up 14 per cent from a year earlier but hte growht was dwarfed by GM, whic hshipped 814,442 units in the same period, up 38 per cent year on year.
       China's total vehicle sales, helped by Beijing's efforts to stimulate domestic consumption, outstripped those of the United States for teh first time in Junuary - making the Asian giant the world's largest car market.
       Total vehicle sales in China for the first half of the year were 6.09 million units, up 17.7 per cent year-on year, according to the China Association of Automoblie Munafacturers.
       The palnt, due to open in 2012, will produce Ford's Focus compact car with an initial capacity for 150,000 vehicles a year.

THE EXCLUSIVE LAMBORGHINI REVENTON

2009-09-24T20:39:00.001-07:00

       Styled like a fighter jet, the opentop version of the Lamborghini Reventon will be limited to a strict production run of only 20 vehicles, with a price tag of 1.1 million euro (Bt54.4 million) excluding tax, it was announced prior to the Frankfurt Motor Show in Germany.
       After making its debut at the 2007 Frankfurt show, the Lamborghini Reventon roadster version is one of the stars at this year's show.
       The power package is expected to be the same as in the coupe, with the Murcielago LP 670-4 SupaerVeloce delivering 653Nm of torque with 650 horsepower and acceleration from zero to 100kph in 3.4 seconds.
       A pointed snout with two massive cooling vents on either side and along the flanks give the super sports car a distinctively aggressive look. The controued leather seats are separated by a huge central tunnel. Leather, Alcantara and carbon give the interior an additional exclusive touch. Two liquid-crystal displays provide all the information a driver needs.

PACIFIC MOTOR SHOW READY TO ROLL

2009-09-24T20:37:00.000-07:00

       The Pacific Motor Show will be staged in Chon Buri's Sri Racha district again next month, with the 12th annual event expected to attract 400,000 visitors to look over the products and displays of 15 auto manufacturers.
       Organisers expect the show, to be held at Pacific Park Sri Racha from October 3-11, to lead to purchases worth Bt450 million.
       Thirteen exhibitors will be carmakers and two motorcycle manufacturers. They are BMW, Volvo, Toyota, Honda, Mazda, Nissan, Isuzu, Chevrolet, Mitsubishi, Ford, Suzuki, Tata, Chery. AP Honda and Yamaha.
       At last year's show, 433 cars and 155 motorcycles were sold.
       "The show will be held under the concept 'Energy and Automobiles', aiming to exhibit various alternative vehicles, such as hybrid cars and E85-capable vehicles," said Pacific Park Group managing director Somboon Vorapanyasakul.
       "During the first half of 2009, the economic slowdown and political turmoil affected consumer confidence. However, thanks to the government's stimulus measures and positive signs in the global and local economies, consumers are now regaining confidence. Moreover, the automobile industry is also picking up, as seen from the upward employment trend. Many of the employees who were laid off have returned to their jobs back."
       The Pacific Motor Show has been hailed as one of the most successful shows along the Eastern Seaboard, because of its location.
       Somboon expects auto companies to have strong marketing campaigns at the show, to help boost sales.
       "New products from auto companies will also be a main driving force. We'll be accepting orders for the Mazda2 subcompact car even though it has not yet been officially launched in Thailand," Somboon said.
       "Other highlights will include the BMW 520d, the Volvo V50, the Toyota Camry Hybrid, Toyota Vigo 2.5VN Turbo and the new Mitsubishi Lander EX."

Ford set to unveil plans for third China plant: reports

2009-09-24T20:36:00.001-07:00

       Ford and its local partner will announce plans this week to build a third plant in China, where the US-based auto-maker is triving to catch up with its rivals, state media reported this week.
       The new factory, in the southwestern city of Chongqing, is expected to have an initial capacity of 100,000 units a year, and this may eventually be increased to 300,000 units, the official Xinhua News Agency said without citing a source.
       Ford now producess sedans, including the Focus and the Fiesta, in China through Changan Ford Mazda, a joint venture with Chongqing Changan Automobile and Japan's Mazda Motor.
       Officials at Ford and Chongqing Changan declined to comment on the reports.
       The new plant's construction will begin tomorrow, with operations likely to start by the end of next year, Chongqing Changan Automobile general manager Zhang Baolin was quoted as saying by Chinese Web portal Sina.com.
       The new plant, which would add to the US gian'ts existing two in Chongqing and eastern China's Nanjing city will focus on production of high-end sedans and sport-utility vehicles, the Xinhau report said.
       The two existing plants have a combined annual capacity of 447,000 units, previous reports said.
       Despite the strong Chinese market, Ford's growth here has been slower than its rivals, such as General Motors (GM). Analysts say Ford does not rank among the top 10 car manufacturers in China.
       It sold 197,212 vehicles in the first half of the year, up 14 per cent year on year, but the growth was dwarfed by GM, which sold 814,442 units in the same period, up 38 per cent, China's vehicle sales in January outstripped those of the United States for the first time, making the Asian giant the world's largest car market, helped by Beijing's efforts to stimulate domestic consumption.
       China's first-half vehicle sales totalled 6.09 million units, up 17.7 per cent year on year, said the China Association of Automobile Manufacturers.

INDIA LURES GERMAN AUTO GROUPS

2009-09-24T20:34:00.000-07:00

       India, home of the world's cheapest car, this week urged German carmakers and auto-parts companies to pitch their world-class wares to one of the toughest and potentially biggest markerts on earth.
       Managers of such brands as Audi, BMW and Bosch were warned, however, that the fast-growing class of young Indian consumers and partners were tough and wanted the best at a fair price.
       Auto-makers around the world are focused on emerging markets like those in Brazil, China, India and Russia, because sales in Europe, Japan and the United States are forecast to drop again next year as government subsidies taper off.
       With an average age of around 25, Indian consumers are more educated, wealtheir, tech savvy, have more choices and "are not loyal", said Indo-German Chamber of Commerce vice-president Wilfried Aulbur.
       "It's a pretty difficult animal to handle," he concluded during a seminar on the country's auto sector at the Frankfurt Motor Show.
       Aulbur, who is also managing director and CEo of Mercedes-Benz India, told German business leaders to expect "very interesting discussions" on price and value.
       India produces the world's cheapest car, the US@2,055 (Bt68,900) Tata Nano, and the country is now the 11th-largest auto producer worldwide, said India's ambassador to Germany, Sudhir Vyas.
       All major auto-makers have a presence in the country of nearly 1.2 billion people, where car sales rose in July for the sixth consecutive month.
       Suzuki of Japan plans to build a new Indian plant in 2011, and Volkswagen opened one in March, while estimating the market at more than 2 million vehicles by 2014.
       There are now between seven and eight cars for every 1,000 people in India, compared with around one for every two people in Germany.
       German and Indian cooperation has grown steadily since Mercedes and Tata first teamed up around 40 years ago, and the Nano is laden with parts from 12 German suppliers, said seminar moderator Bernhard Steinrueke.
       The Nano "is a car of Indian vision and German technology," he said.
       Meanwhile, Indian manufacturer Reva showed an electric car at the Frankfurt show that it plans to launch in 12 European countries next year.
       The four-seater NXR has a range of 160 kilometres and solar panels in the roof and can be recharged from a domestic power supply in eight hours. It is expected to cost 12,200 euro to 14,000 euro (Bt603,000 and Bt692,000).
       Eight Indian auto-parts makers also showed equipment in Frankfurt, and Ambuj Sharma, a secretary from India's Heavy Industry Department, said the country had become the auto-component centre of Asia, a region with two of the world's fastest-growing auto markets.
       Sharma invited small and medium-sized enterprises, "the strength of the German automotive industry, to be a part of this growth story."
       German suppliers were hammered by a global plunge in auto sales after the onset of the financial crisis a year ago.
       Ambassador Vyas, meanwhile, underscored the importance of "capacity building and vocational training for the auto industry" from foreign investors as India built the sector into what it hoped would become a world leader.
       Aulbur laid out the challenges for German manufacturers and stressed that "no 'one size fits all' for your customers and your business partners" on a subcontinent equal in size to the 27-member European Union.
       He said that "India has the makings of a blockbuster", with sales expects to grow 10 per cent next year as the economy expands about 5.6 per cent.
       Auto-sector investment should grow by 11 billion euro over the same period, said Pawan Goenka, head of the Society of India Automobile Manufacturers.

New perks sought for van makers

2009-09-24T20:33:00.001-07:00

       Additional measures will be put into the national automotive industry plan to facilitate its recovery from the global economic crisis, according to Vallop Tiasiri, director of the Thailand Automotive Institute.
       As the country's automotive production and exports have faced serious trouble, Mr Vallop said industry operators had sought more supportive measures and incentives for the local production of vans from the Board of Investment and the Office of Industrial Promotion.
       "The global economic slump has led to almost 50% excess production capacity, which affects our national automotive industry plan for 2007-11," he said."So the plan has to be altered, with new products added to absorb this excess capacity since we've heard that Japanese manufacturers are looking to invest in van production here."
       Local production of pickup trucks and passenger cars, once the country's flagship exports, has shrunk by almost 50%from 1.8 million units produced last year to a projected 900,000 this year, Mr Vallop said.
       He added that the excess capacity had affected vehicle producers, as well as auto-parts suppliers.
       To reduce the excess capacity, he said,high-roof van production could be introduced to make use of the existing idle production lines of passenger-car and truck makers.
       "The stronger yen against major currencies should also promote Japanese investment overseas. By choosing Thailand as their production base, the Japanese could also access other Asean markets," Mr Vallop said.
       "Additional incentives are being studied to keep local trucks assembling plants running.
       "Truck assemblers are also facing a shrinking demand. They plan to close their plants in either Thailand or Indonesia due to excess production capacity.What we are doing now is to propose more incentives to persuade them to keep their operations here and close plants elsewhere instead."
       If the plants in Indonesia are closed,local truck assemblers should also gain market opportunities in Indonesia as well.
       The additional incentives to support the incumbent plan, expected to be finalised in a few months, will take into consideration the advantages and disadvantages of the Asean free trade agreement.
       The industry's 2012-16 strategic plan,to be ready by 2011, will focus on supporting the local production of fuelefficient vehicles.

Auto firms see improvement in market next year

2009-09-24T20:31:00.000-07:00

       Companies in the automotive industry expect the market to improve next year, with production capacity set to rise in the latter half of this year, according to a survey by the Office of Industrial Economics.

       "The 'hamburger' crisis has affected the economy and the automotive industry in every country, which highlights the necessity of precautionary measures. However, the effects should not linger for a long time, as most have plans to cushion the impacts," said Arthit Wuthikaro, director-general of the office.
       He urged companies to increase the efficiency and quality of their factories and products and improve the knowledge and skills of employees to prepare for an economic recovery.
       For the 2010 fiscal year starting on October 1, the office has allocated a Bt40-million budget to finance a programme of the Thailand Automotive Institute, the Federation of Thai Industries and the association of parts-makers.
       The programme aims to put the Eco Car project into action, as the products would create new opportunities for manufacturers.
       Covering 52 auto companies, including parts-makers, the survey showed that small firms had been the most affected by the global economic crisis, which led to a plunge in automotive demand. They have suffered from lower orders and the rising cost of raw materials.
       The survey found that 75 per cent of the 52 companies had reduced their production earlier this year, while some witnessed credit defaults and financial institutions tightened lending criteria, which led to a liquidity shortage.
       Most of them, 71.2 per cent, commented that the government's measures had failed to respond to their needs, while 28.8 per cent considered the measures worked fairly.
       Some 44.2 per cent of the respondents said they were severely affected by the crisis. Meanwhile, 96.4 per cent implemented emergency plans, which mostly involved a reduction in overtime payments, a cut in product prices, the extension of credit lines to customers, lay-offs and greater emphasis on the domestic market.
       "The manufacturers maintain the view that they need to focus on exports and penetrate new markets," Arthit said.
       The office also conducted a consumer survey in Bangkok and peripheral provinces. Covering 400 respondents, 19.7 per cent of them cited a plan to buy a car in the latter half of 2010, while only 1.3 per cent plan to buy one within the next three months.
       The survey found 46.3 per cent of the respondents had no plan to buy a car at this time, while 26.5 per cent said their decision depended largely on economic conditions.
       Factors affecting their decision are financial readiness, at 22.6 per cent, and the necessity of having a car as well as price, 21.2 per cent.

Goldman investment boosts Chinese firm's global hopes

2009-09-24T20:30:00.000-07:00

       Goldman Sachs'$334 million investment in Geely Automobile Holdings will boost the Chinese automaker's global ambitions, including a potential bid by its parent for Ford's Volvo brand.
       Hong Kong-listed Geely also said yesterday it would issue convertible bonds and warrants to an affiliate of Goldman and will use proceeds for capital expenditure, working capital and potential acquisitions.
       The addition of Goldman as a major investor could help China's 10th-largest automaker achieve its aspirations to secure global brands and technology from struggling Western rivals, said Yi Junfeng,an analyst with Changjiang Securities.
       "It's a wise move for Geely as it can use the money to build up capacity and free up capital for its parent, which has publicly announced its interest in Volvo,"said Yi.
       Earlier this month, Geely said that its parent, Geely Group Holdings Co,planned to bid for Sweden's Volvo which reports have valued at close to $2 billion.
       Geely Group has also approached Magna International about a potential production partnership on General Motors' European brand Opel, a source familiar with the matter told Reuters last week.
       For Goldman, which could end up with 15.1% of Geely if it fully converts the bonds and warrants, the investment will give it exposure to China's fast growing auto market - the world's largest.
       "We hope Goldman can help us to improve our operating efficiency, and that Goldman's network will help in our long-term development," said Geely executive director Lawrence Ang at a company shareholders' meeting for an unrelated matter.
       Geely will raise a total of HK$2.59 billion (US$334 million) by issuing convertible bonds and warrants to GS Capital Partners VI Fund LP, an affiliate of Goldman Sachs.
       Ang said money raised from the bond sale could be used to buy car-making plants from its privately held parent,which typically builds such plants and sells them to the listed company.
       Geely, which competes against Chery Automobile and other local brands, has said it plans to nearly double its carmaking capacity to 685,000 units a year in the next few years.
       Hangzhou-based Geely posted 35%sales growth in the first eight months of the year to 185,000 units. China has been one bright spot in an otherwise struggling auto industry and is on track to post record auto sales this year.
       Several Chinese automakers have moved to expand their global presence through deals with cash-strapped US and European firms.
       State-run Beijing Automotive Industry Holdings took a minority stake in Koenigsegg as part of the Swedish luxury carmaker's purchase of General Motors'Saab unit, while Sichuan Tengzhong Heavy Industrial Machinery, a littleknown Chinese firm, plans to take over GM's Hummer brand.
       The growing clout of Chinese automobile manufacturers has attracted other investors, with US billionaire Warren Buffett's Berkshire Hathaway Inc last year agreeing to invest $230 million for about 10% of the battery and electric car maker BYD Co Ltd.
       The investment has realised a $1.8 billion paper profit for Buffett.

For India, Ford thinks small

2009-09-24T20:28:00.000-07:00

       Ford Motor Co will start production of a small car in India early next year, and its chief executive said the US market had was showing signs of recovery and he expected industry sales to rise in the next two years.
       The No.2 US automaker is focusing on small cars, which it feels will increasingly drive sales, and CEO Alan Mulally said the fast-growing Asia-Pacific market would play a bigger role in Ford's global sales.
       "We expect the small car segment will double in the next 10 years," he said at the launch of the Figo, Ford's new small car, in the Indian capital of New Delhi."When you look at vehicle size,about 60% of the vehicles worldwide would be smaller vehicles like the new vehicle here."
       The company did not disclose the Figo's price, but Mulally said Ford was not looking to directly compete with Tata Motor's Nano, the world's cheapest car at around $2,000 which hit Indian roads earlier this year.
       "Right now we are going to focus on the larger portion of the (small car) market, which is the B size. So, we don't have plans to compete in the A size, or sub-B right now."
       Ford will make the Figo at a plant in the southern Indian city of Chennai,which it plans to make a global production hub. The company is investing $500 million in the plant, which will have annual capacity of 200,000.
       India's domestic auto market is relatively small, especially considering a population of more than 1.1 billion, with about 1.5 million passenger vehicles sold last year. It is however a fast-growing market, even in a global auto downturn.For the first four months of the 2009/10 fiscal year (April/March), domestic car sales rose nearly 10% from a year earlier.
       Small cars account of nearly two-thirds of annual sales.
       US auto sales fell to monthly rates not seen since the early 1980s earlier this year amid the recession, though some rebound was seen in July and August as the government's "cash for clunkers" programme lifted demand.
       Mulally said there were signs of recovery and a sales pickup was expected in coming years. Ford expects total US industry sales of about 11 million in 2009, rising to 12.5 million in 2010 and to about 14.5 million in 2011.
       "The fundamentals of economy coming back is the absolute key," Mulally said."It's a slower recovery and we think it's going to go with the economy."
       Ford posted net losses totalling about $30 billion from 2006 through 2008. The only large US automaker not to reorganise in 2009 through a government-supported bankruptcy, Ford has said it expects to return to at least break-even in 2011.
       Ford has put its loss-making Swedish car brand Volvo up for sale. Mulally said it was still in talks with potential buyers,but did not answer a question whether they would be able to wrap up a deal this year.
       Last year, Ford sold its Jaguar and Land Rover brands to Tata Motors.

GM recalls staff as it prepares to lift output

2009-09-24T20:27:00.001-07:00

       General Motors Co said on Tuesday that it planned to restore about 3,000 jobs at US assembly plants and related facilities and was getting set to raise North American production by up to 45% next year.
       GM said it would add shifts at three assembly plants as the automaker consolidates production from plants that are closing or retooling, a process that would not add immediately to its production schedule for 2009.
       But GM expects to increase North American production to about 2.8 million vehicles in 2010, up about 40 to 45%from 2009.
       GM had sharply curtailed North American production around its government-guided reorganisation.
       GM said it would add shifts at three US assembly plants next year, restoring 2,400 jobs, and expected to restore 600 jobs at related facilities across the United States that produce engines, transmissions, stampings and castings.
       The addition of shifts at plants in Kansas, Indiana and Michigan comes at a time when US auto industry sales are thought to have hit bottom and manufacturers are raising production to restore depleted vehicle inventories.
       US dealer inventories were trimmed sharply after the federal government's "cash for clunkers" programme lifted sales in July and August with incentives of up to $4,500 to turn in gas-guzzling vehicles and buy new more fuel-efficient models.
       GM has been addressing severely low inventories resulting from a combination of the "clunkers" programme that ran from late July through the first three weeks of August and production cutbacks around its government-funded reorganisation.
       Mark LaNeve, GM's vice president of US sales, said US auto sales for GM and the industry have been slow, a situation expected with the end of the "clunkers"programme.
       "Our year-over-year comps will be difficult on both the fleet and retail side,but both accounts will get better beginning in October right through the fourth quarter," LaNeve said.
       GM said it would add a shift at its assembly plant in Fairfax, Kansas, in January. Fairfax will become the sole builder of the Chevrolet Malibu sedan when GM ends production in Orion,Michigan, to retool that plant for a new small car.
       In April, GM plans to add a shift of heavy-duty pickup production in Fort Wayne, Indiana. The company is closing its Pontiac, Michigan, plant at the end of September.
       GM also plans to add production of the Chevrolet Traverse SUV at its Lansing Delta Township, Michigan, plant in April.Production of the Traverse at GM's plant in Spring Hill, Tennessee, will end in November, and that plant will be put on standby status.
       "GM will draw from its pool of laid off workers first to fill the positions and expects virtually all of the spots to be filled by workers now on lay-off or who would be subject to lay-off once other plants are idled," executives said.
       Earlier in September, GM said it expected to build 535,000 vehicles in North America in the third quarter and 655,000 in the fourth quarter, down about 20%from a year ago.
       GM expects US auto industry sales of about 10.5 million vehicles in 2009, down from about 13.2 million last year. It expects US auto industry sales of 11.5 million to 12 million in 2010.

Thailand Green Move...Green Energy Green Car Showcase in Hat Yai

2009-09-24T20:25:00.000-07:00

       From the premiere seminar in Khon Kaen, Chonburi, Chiang Mai, Bangkok to the closing stage in Hat Yai, Songkhla on September 18, 2009, "Thailand Green Move...Green Energy" is the road show seminar in five regions of the country by Krungthep Turakij newspaper and Toyota Motor Thailand Co., Ltd. to campaign for environmental awareness from all sectors of the society through the use of clean energy.
       This final seminar was honorably opened by H.E. Thavorn Sennium, Deputy Minister of Interior, who delivered addressing speech on "Strategic Development of Southern Community". The Deputy Interior Minister pointed out the need to achieve multiple aspects of sustainability in comnuity development which the government has been continuously carrying out through a number of projects.
       The seminar forum of "Hybrid Vehicle...Tomorrow's Technology Today" was joined by five panelists included Mr.Prapavuth Narkvichetr, General Manager, Product Planning and Development Department Toyota Motor Thailand Co., Ltd., Assoc. Prof. Surachate Chutima, lecturer from the Faculty of Enginerring, King Mongkut's University of Technology, Mr.Kriengkrai Kanjanapokin, Co-Chief executive Officer, Index Creative Village PLC., Mr. Worapol Singkeawpong, Director of Thaidriver Magazine and Website, and Ms. Niramol Mateesuwakul, TV Producer of environmental-based program with Witt Sittivaekin (PhD.) as the moderator.
       All five panelists agreed that by living in harmony with nature and using natural resources cleverly and carefully we can help reducing the amount of carbon dioxide released onto the environment; and that the hybrid engine is the technology for today. The technology is economical without motorists having to change their lifestyle or have their vehicle altered to suit a different type of fuel.
       While 1.7 million Hybrid cars are being used worldwide; Camry Hybrid, which has been launched in Thailand for only a little longer than a month ago, has received a warm welcome from consumers.
       Starting at B1.6 million, Toyota's Carmy hybrid technology effectively saves fuel and emits less carbon dioxide while attaining higher driving efficiency. It does worth the money and you can help saving the environment at the same time.

SETTLING FIRE-TRUCKS DISPUTE COULD PROVE EXPENSIVE FOR BMA

2009-09-24T20:23:00.000-07:00

       Bangkok Metropolitan Administration (BMA) may have to shell out up to Bt1 billion to settle its dispute over fire vehicles at the International Arbitration Court in Paris.
       "This is in addition to fees for lawyers and air tickets during the court's hearings," an informed source revealed yesterday.
       At present, the BMA wants to annul the contract for the Bt6.69-billion purchase of fire vehicles from Austrian supplier Steyr-Daimler-Puch because the deal was mired with corruption.
       The supplier has already received many instalments of the payment. Many of the fire vehicles have also been delivered to Thailand.
       The purchase contract says that any dispute from the deal would have to be settled at the International Court of Arbitration.
       "The BMA is consulting the National Anti-Corruption Commission (NACC) as to whether it should bring the case to the International Court of Arbitration," the same source said.
       The BMA hoped to be able to petition the Court before the end of this year.
       "A committee is already established to study similar cases and to consider hiring good lawyers for this case," the source said.
       As the dispute has dragged on, fire vehicles sent in from the Austrian supplier were left to gather dust at Thailand's Laem Chabang Port.
       The Customs Department is now threatening to seize these vehicles and auction them off in line with applicable rules.
       BMA is now talking to the Finance Ministry to request that the fire vehicles be exempted from such rules.

Auto giants make U-turn

2009-09-24T20:22:00.000-07:00

       The "Big Three" US automakers - Ford,General Motors and Chrysler - have committed to investing an additional 31 billion baht in Thailand in anticipation of a local economic recovery,Thai policymakers say.
       "Ford, General Motors Corp and Chrysler Group have expressed interest to expand their current investments by more than 10 billion baht each in Thailand," said Kiat Sittheeamorn, head of the Thailand Trade Representative office via a video conference from the United States."And US soft-drink giant CocaCola Co has also pledged to increase its local investment by an additional one billion baht."
       Cargill, a major US producer of food,agricultural and industrial products, and services, wants to form ventures with Thai partners to set up a regional food distribution centre and warehouses for agricultural products. The firm would not disclose its proposed investment budget.
       Mr Kiat and Prime Minister Abhisit Vejjajiva have been meeting with leading US companies and institutional investors over the past two days to promote the Thai economy.
       Mr Abhisit is attending the G20 summit in Pittsburgh. Yesterday he attended a forum in New York hosted by the Thai Board of Investment.
       The premier said yesterday that apart from the US automakers, Coca Cola and Cargill, several other US companies planned to increase their investments in Thailand. Some have expressed interest in infrastructure investment under the "Thailand: Investing from Strength to Strength" scheme. The government will invest about US$45 billion over the next three years to strengthen the Thai economy and to improve the country's competitiveness.
       The programme will focus on agriculture, education, health care and mass-transit projects and will create at least 1.5 million jobs, according to the government.
       "I am confident that the Thai economy will return to growth in the fourth quarter, with the whole year's gross domestic product contracting by 3% to 3.5% this year," said Mr Abhisit.
       He said the Thai economy would undergo a V-shaped recovery.
       "The Thai economy is definitely moving up, and there is yet no clear sign whether it will move in the 'W' shape,"said Mr Abhisit.
       In a related development, Mr Abhisit said it was still not clear when stalled talks on a free trade agreement with the US would resume.
       "The US has yet to send a signal about resuming the talks, but we prefer the talks should rather be developed on the multilateral level under the World Trade Organisation," he said.

HYUNDAI SET TO LAUNCH MINI-CAR

2009-09-23T21:44:00.000-07:00

       Hyundai seems to have the right path this year in concentrating on its premium models, with the H1 van reaping sales of more than 100 units per month.
       However, the South Korean auto-maker will adopt another approach next year when it introduces the i10 mini-car.
       Saritporn Sakolrak, marketing-communications and product manager at Hyundai Motor (Thailand), said as well as highly satisfactory sales of the H1, the Sonata CNG mid-sized passenger car was also selling well, because rising fuel prices were forcing customers back to vehicles capable of running an alternative fuels.
       Hyundai plans to sell 1,500 vehicles in Thailand this year, a target it announced at the start of the year.
       "We're expecting to achieve good results at the Thailand International Motor Expo at the end of the year. That event enables auto companies to boost sales during the final auto-buying season," he said.
       Apart from its production models, Hyundai will also display a sport--utility-vehicle concept at the show.
       He also said the i10 would be introduced in next year's second quarter. The mini-car is made in India and will be exported to Thailand under the Thailand-India Free Trade Agreement.
       The car is available with petrol, diesel and diesel-hybrid power plants, but Hyundai has yet to decide which type it will offer in Thailand.
       The auto-maker is also planning to penetrate the nichecar maeket and will introduce the Genesis Coupe in Thailand in 2011.
       Hyundai presently has 20 dealerships in Thailand and plans to appoint seven more in the near future, Saritporn said.

TOYOTA MOTOR SEES SIGNS OF RECOVERY

2009-09-23T21:43:00.001-07:00

       Toyota, Thailand's largest auto company, says the automobile market is showing signs of revovery, thanks to the government's stimulus measures.
       The company recently teamed up with its dealers around the country to stage roadshows to stimulate sales, said Toyota Motor Thailand senior vice president Vudhigorn Suriyachantananont.
       "Compared with what we experienced in the first quarter, when the economy was hit by the global recession, the situation has improved, although not too dramatically," he said.
       Vudhigorn said most of the improvement was in the passenger-car segment, while the pickup market continued to be in a state of decline, with no positive factors to spark a recovery.
       He said consumer confidence had risen over the past three months, with the government's stimulus measures showing positive results across the general economy.
       There were also a alarge number of new-model launches that benefited the auto market. However, the pickup market still faces negative factors such as strict approval procedures by finance companies and rising fuel prices.
       "This ha caused the pickup market to fall 30 per cent in the first eight months of the year," he said. Passenger-car sales fell only 11 per cent in the same period.
       Nevertheless, Toyota is presently staging marketing events in six provinces each week, which is more frequent than in the past. The activities include entertainment, palnt visits, rallies and caravans, as well as local festivities.
       Vudhigorn said Toyota would raise the level of its promotions in the remaining months of the year.
       Recently the company launched what it calls its "Sabay D" promotion, which includes lower installment rates starting at Bt4,953 a month over an 84-month period, lower interest rates, special offers and privileges and low 15-per-cent down payments.

BKK diversifies into property

2009-09-23T21:41:00.000-07:00

       BKK Group, one of the country's leading automobile retail business operators,announced a rebranding yesterday that introduces a new corporate logo and consolidates all businesses under the group.
       The group, an authorised dealer for Mercedes-Benz, Nissan and Jeep/Chrysler, is also to invest billions of baht in real-estate development projects to cash in on its many potential land banks in Bangkok, said senior executives.
       Timed to coincide with BKK's 17th anniversary, the 30-million-baht initiative is updating Mercedes-Benz showrooms and service centres to conform with the luxury car brand's standards. The rebranding is also introducing "For Today's Better Living" as a marketing slogan and covers investment in software and personnel development.
       The rebranding is aimed at improving the group's long-term business results and will focus on total quality management (TQM) strategies, to provide a service defined by quality rather than quan-tity, said president Rienchai Likitplug.
       Despite the worldwide downturn and the automotive industry slump, the group's revenue grew 5% in the first seven months this year. It expects to achieve 3 billion baht in consolidated revenue by the year-end, compared with 2.7 billion last year.
       "This could largely be attributed to the high purchasing power of high-end customers and the Rienchai: Purchasing continuous devel-power still strong opment of the products and services offered to the customers in the past 17 years," said Mr Rienchai.
       Under its business consolidation, BKK Group has become the holding company of several subsidiaries, including Benz BKK Co and Benz Vipavadee Co, authorised dealers of Mercedes-Benz; Siam Nissan BKK Co, the authorised dealer of Nissan; BKK Auto Mall and Leasing Co,the car financing arm; BKK Chrysler Co,the authorised dealer of Chrysler; and BKK Grand Estate Co, the developer of real estate projects.
       The group no longer sells Jeep/Chrysler products but continues to provide repair and maintenance services.
       BKK Group plans to develop a highrise condominium on nine rai of land opposite Bitec on Bang Na-Trat Highway.Construction will begin at the end of this year and be completed by mid-2012, said Anupong Likitpurkpaisan, the group's executive director.
       "Property development is not new for the group as it earlier invested between 10 million and 100 million baht to develop a few townhouse and singlehouse projects upcountry." said Mr Anupong.
       The group expects to sell 400 Mercedes-Benz and 300 Nissan vehicles this year."Since Mercedes-Benz and Nissan are due to launch many models at the end of this year, the group believes the launch could help stimulate the automobile market's growth," he said.

FANS BRAVE CROCS TO ATTEND KHAO YAI FEST

2009-09-23T21:40:00.001-07:00

       More than 50,000 visitors turned up in Khao Yai last weekend for the Honda Fund United Festival, one of the Campaigns to draw tourists back to the national park after crocodile sightings scared some away.
       "Hotel operators hope they will attract more visitors thanks to the festivals," Songkran Techanarong, manager of the Bonanza Khao Yai hotel, which was the concert venue, said yesterday.
       The concert was one of the events slated for Khao Yai by the Tourism Authority of Thailand(TAT) in cooperation with hotels and other companies to woo tourists back.
       The concert was organised by the TAT and AP Honda.
       Songkran said the hotels in Khao Yai were fully occupied during the event.
       Auttaphol Wannakij, director of the TAT's Nakhon Ratchasima office, said Khao Yai was usually a popular place during the rainy and cool seasons, but that some tourists had postponed their plans since crocodiles were discovered.
       However, for all of this year, visitors to Khao Yai will grow 10 per cent from 1.95 million last year.
       "Many tourists now want to see the crocs for the experience," he said. "Concerts hosted near the park will also help promote domestic tourism."
       Jutamart Inpringkanant, manager of sales promotion for AP Honda, said the event was part of the TAT's "Isaan Tourism Year" campaign.

BKK GROUP TO SPREAD ITS WINGS

2009-09-23T21:38:00.000-07:00

       The BKK Group, parent company of the Benz BKK Group, will branch out into high-rise real-estate development by constructing a Bt1-billion apartment complex at the Bang Na intersection in Bangkok.
       "We see very positive growth in the Thai market in the years to come. We'll launch our real-estate project by the end of this year. It will be our first high-rise building, and the company will be called BKK Grand Estate," said Anupon Likitpurkpaisan, BKK's executive director.
       The company has previously been involved in real estate but has only constructed low-rise buildings outside of Bangkok. The new building will be 34 storeys high and most likely be accessible from the upcoming Bang Na Skytrain Station.
       The company has rebranded itself using the slogan "For Today's Better Living". The rebranding was undertaken to bring the real-estate and automotive sectors under one corporate umbrella.
       "With more than 17 years of experience in the luxury-car retail business, we've consistently developed products and services to ensure customer satisfaction. We'll ensure everything we do is focused on total quality-management strategies," said Anupon.
       The automotive division of the company saw growth of 5 per cent in the first seven months of the year. The company expects to achieve revenues of Bt3 billion this year, up 7.14 per cent from last year's Bt2.8 billion.
       More than 80 per cent of revenue is generated through sales of Mercedes-Benz and Nissan vehicles, while the rest is created through services.
       The company's rebranding activities have seen investment of Bt30 |million, which included changes to hardware, showroom design and software.
       The BKK Group previously focused mainly in the automotive sector by being the authorised dealer for Mercedes-Benz and Nissan. The company has two Mercedes-Benz showrooms: one in Bang Na district and the other on Vibhavadi-Rangsit Road, along with one Nissan dealership in Bang Na. The company also has one ID1 centre, an authorised Mercedes-Benz used-car dealership.
       In the past, the company sold the Chrysler and Jeep brands, which it now services.
       Anupon added that the company would most likely expand with a new Bt100-million Mercedes-Benz showroom.

ELEGANT DIESEL BEATS PETROL SIBLINGS

2009-09-23T21:36:00.000-07:00

       The popularity of diesel-powered luxury cars has been rising in Thailand over the past several years.
       German auto-maker Mercedes-Benz is one of the major brands that has been enjoying brisk sales of diesel models (the other is BMW), and its latest offering is the C 220 CDI.
       The C220 CDI is priced at Bt2.85 million, which is in the same range as its direct rival, the BMW 320d SE, priced at Bt2.89 million (there's also an entry-level 320d with lower options prices at Bt2.69 million).
       The highlight of the C220 CDI is the power plant, which is a fourcylinder, 16-valve turbocharged common-rail diesel engine that offers loads of torque and excellent fuel economy.
       Maximum power is claimed to be 170 horsepower at 3,800rpm, while a massive 400Nm of torque is available at 2,000rpm.
       The torque gives the C220 CDI exceptional acceleration. It takes 8.4 seconds to accelerate from zero to 100kph, beating the C 200 K by 0.4 second, while the top speed is claimed to be 227kph (230kph for the C200 K).
       The C220 CDI's engine idles more smoothly and quietly than those in previous diesel models, and the fivespeed automatic transmission, with manual shift mode, also performs nicely.
       The car accelerates effortlessly to cruising speed, where you can really enjoy the excellent fuel economy. Average fuel consumption is said to be 15 kilometres per litre (against 12.6 for the petrol-powered C 200 Kompressor).
       Although the suspension of the C 220 CDI does not offer a die-hard sporty character - as does the suspension of the 320d - occupants will be pleased with the nice balance between grip and comfort.
       The front three-link and rear multilink suspension features stabilisers both front and rear along with a selective damping system that adapts to various road conditions. There is also a standard Electronic Stability Programme that intervenes whenever control of the vehicle is lost.
       The braking system, featuring discs all-round, is also adaptive, and comes with ABS, Brake Assist, a brake-drying function and hill-start assist.
       Safety levels are high thanks to the Pre-Safe system, which prepares the vehicle for an impact when a crash risk is detected. There are eight air bags - dual adaptive in the front, two side air bags for the front occupants and another two for the rear occupants, plus two window air bags that extend from the A-pillar to the C-pillar.
       Compared with the Avantgarde petrol model, the C 220 CDI may appear a little on the discreet side, with 16-inch alloy wheels instead of 17-inch rims and piano-lacquer interior wood trim instead of the sporty aluminium trim.
       Nevertheless, there's a multifunctional steering wheel, chromerimmed dials (I wonder why the revcounter displays up to 6,000rpm) and a 4.5-inch display on the console that comes with a semi-sliding cover. The Comand interface makes things easier when you need to adjust settings for various systems.
       Both front seats are powered, and the steering wheel position is also electrically adjustable for reach and rake.
       The climate-control system, headlights and windshield wipers are fully automatic, adding to the comfort and convenience.
       Since the costly imported version was launched at the end of last year, followed by the more reasonably priced locally assembled version, the C-Class has only been available with petrol engines. With diesel being offered, there's now a more attractive choice.
       The C220 CDI is capable of beating its petrol-engine siblings comfortably in terms of acceleration and fuel economy. There is no question about this.
       However, the problem seems to be the availability of only one trim level: it costs considerably more than the stripped-down C 200 Kompressor (Bt2.46 million), is slightly more expensive than the C 200 K with Elegance trim (Bt2.69 million) and costs Bt40,000 less than the avantgarde model.
       Perhaps a choice of three trim levels for C-Class diesels (just like the petrol models) would make it easier for customers to choose the car that suits them best.
       Mercedes-Benz C220 CDI
       Engine: Four-cylinder 16-valve common-rail diesel
       Displacement: 2,148cc
       Bore and stroke: 88 x 88.3mm
       Compression ratio: 17.5:1
       Max power: 170hp at 3,800rpm
       Max torque: 400Nm at 2,000rpm
       Transmission: Five-speed automatic
       Ratios: 3.95/2.42/1.49/0.83
       Final drive ratio: 2.65:1

       Fuel economy (kms/litre)
       City: 10.9
       Highway: 19.6
       Average: 15.1
       CO2 emissions: 173g/km

       Performance
       0 to 100kph: 8.4 seconds
       Top speed: 227kph
       Suspension (f/r): Threelink, coil springs, stabiliser/multilink, coil springs stabiliser
       Steering: Powered rack and pinion
       Turning circle: 10.8 metres
       Brakes (f/r): vented discs/discs with ABS, EBD, BA

       Dimensions (mm)
       Length: 4,581
       Width: 1,770
       height: 1,444
       Wheelbase: 2,760
       Track (f/r): 1m541/1,544

       Wheels: 16-inch alloy
       Tyres: 225/50R16
       Weight: 1,605kg
       Fuel-tank capacity: 66 litres
       Price: Bt2,859 million
       Distributor: Mercedes-Benz (Thailand)

Nissan focuses on after-sales service

2009-09-21T23:03:00.002-07:00

       Nissan Motors Thailand revamped its after-sales service by offering genuine spare parts as the first step to prepare for major changes in the near future.
       The strategy aligns with Nissan's worldwide five-year plan dubbed Nissan GT 2012(G for growth and T for trust)announced last year. The plan was temporarily shelved after the automotive industry plunged into crisis as a result of global financial turmoil, said a senior executive source.
       Nissan foresees competition becoming tougher toward the end of the year as local companies start introducing new models.
       Nissan expects its market share to grow by double digits next year from its current 5.6% after its highly anticipated eco-friendly car goes on sale.
       Nissan will be the first company to introduce an eco-car in Thailand, while five other companies are still working out the kinks in their plans.
       Nissan senior executives led by president Toru Hasegawa will brief Prime Minister Abhisit Vejjajiva on Oct 1 about the Japanese company's eco-car production in Thailand. The date is also meaningful because the 17% excise tax on eco-cars becomes effective.
       In addition, the source said Nissan would launch other new vehicle models before 2012.
       A focus on small cars is expected under its policy to shift small car production to Thailand.
       The source said Nissan hoped to improve after-sales service for all models and to underline the reliability of Nissan before the eco-car debuts.
       Its express service programme offers processing within 30 minutes. The service includes changing the motor oil and filter and checking the battery and other systems.

AUTOMAKERS REHIRE AS DEMAND PICKS UP

2009-09-21T23:03:00.001-07:00

       As demand for passenger cars in both the domestic and export markets start to recover, many auto producers in Thailand are rehiring workers who have been laid-off since last year.Toyota Motor Thailand, the biggest auto-maker in the country, has also taken back a large number of workers as demand for Toyota passenger cars started to grow in May.
       Starting late last year, the company axed 2,900 subcontracted workers through a voluntary retirement programme, but due to increased demand for passenger cars since May this year thanks to popularity of subcompact cars such as the Vios as well as the introduction of the Camry Hybrid midsized car, have rehired 1,000 of them.
       Many of Toyota's subcontract workers who were terminated last year have not come back, prompting the company to hire 800 new workers.
       "Many of the workers have been employed elsewhere while others used the compensation money to start up their own vending businesses," said an industry source.
       Toyota employs about 8,000 workers at its three plants.
       Isuzu, the commercial vehicle giant, also said that it has this month reintroduced a second shift at its plant after it was halted in January this year, while subcontracted workers are also being taken back.
       Shigeru Wakabayashi, vice president of Tripetch Isuzu Sales Co, said there are signs of slight recovery for the pickup market, which plunged by almost 30 per cent in the first eight months.
       AutoAlliance Thailand (AAT), the producer of Ford and Mazda vehicles, has also been hiring additional workers. After terminating 300 subcontract workers in late 2008 from its 3,500-man workforce, AAT started hiring additional workers. From January 2009, it has already hired 800 new workers, according to a company source. Mitsubishi Motors Thailand, after terminating 1,100 of its 4,800 workers in November and December last year, will reintroduce a second shift at its two car assembly plants and one engine plant starting at the end of this month. In January this year it eliminated the second shift due to a plunge in demand and piling stocks.
       Company president Nobuyuki Murahashi said Mitsubishi is recruiting 1,300 workers who will start working in November.
       "The decision comes as stock levels have been adjusted to its normal level, should the market give a recovery signal," he said in a statement.
       Mitsubishi plans to introduce its new Lancer EX compact car in mid-October.
       Kim Eng Securities (Thailand) said in its research that the automobile parts industry next year could recover in line with global economy. It is based on the optimistic view on the Federation of Thai Industries' automobile club's forecast that vehicle production in Thailand this year will be 940,000 units, though half-year production was only 389,000 units due to the shrinking demand in domestic and overseas markets.

Panellists say hybrid cars will prove themselves in the marketplace

2009-09-19T20:28:00.000-07:00

       Demand for hybrid cars in Thailand will grow rapidly as economies of scale and the two-system energy-saving technology takes hold.
       Panellists shared this idea in the seminar called "Thailand: Green Move...Green Energy" in Hat Yai yesterday. The event was hosted by Krungthep Turakij newspaper in cooperation with Toyota Motor Thailand.
       Participants in the seminar included Prapavute Narkvichet, general manager for product planning and development of Toyota Motor Thailand; Surachet Chutima, a lecturer at King Mongkut Institute of Technology Thon Buri; Kriengkrai Kanchanapokin, co-chief executive of Index Creation Village; Niramol Meteesuwakul from the "Tung Seang Tawan" TV programme and special guest speaker Deputy Interior Minister Thaworn Senneam.
       Thaworn said community development should come from cooperation between government and local people. He said the government had set up five subcommittees and committees to solve problems in the South including farming, land encroachment, land banks, degraded forests and title deeds.
       He added that the government also allocates budget from "Thai Khemkhaeng" or "Invest for Strength" to develop transportation in the area, such as the |expansion of Narathiwat airport to allow bigger aircraft. Successful will encourage the province to become a transportation hub in the South.
       Prapavute of Toyota said that the introduction of the hybrid car reflects Toyota's vision that technology has to be in harmony with the environment.
       Besides the production of environmental friendly vehicles, Toyota has also promoted many environment-protection programmes, such as the use of solar cells in its buildings, the use of natural gas in its production process and its reduction of carbon dioxide gas emission by 10,000 tonnes a year.
       In addition, Toyota has also actively promoted awareness of environmental protection among people.
       Kriengkrai of Index said that Thai people were paying more attention to environmental protection and global warming, according to a survey by AC Neilsen.
       Kriengkrai believes that green awareness will be adopted by many organisations, not only in the auto industry but also in other areas such as architecture.
       Index office is designed on the energy-saving concept, which has become the selling point in attracting the customers to use the company's service.
       He added that along with multinational firms major Thai companies have given importance to promoting green awareness.
       He said auto-makers that have focused on producing energy-saving vehicles will have a competitive edge when their products are widely recognised by consumers.
       If the cars can really help the consumers save money, they will sell. Digital consumers do not believe in advertising but in the views of people around them and information on the Internet. If the cars can save energy, people will promote them by word of mouth and that will lead to their success.
       He added that this was the right time to introduce the hybrids into the market as consumers are seeking ways to save energy in a time of high oil prices.

NEW D-MAX TO HELP ISUZU MEET TARGET AS SECOND SHIFT RESUMES AT PLANT

2009-09-19T20:27:00.000-07:00

       Commercial-vehicle specialist Isuzu says the new version of its D-Max pickup will help it achieve this year's sales target of 100,000 units.
       The company sold 119,500 pickups last year, down from 133,000 in 2007.
       Isuzu resumed the second shift at its production plant earlier this month after a slump in the pickup market forced it to reduce production to a single shift in January. A number of temporary workers have also been re-employed.
       Several auto companies, including Toyota and Mitsubishi, are rehiring workers, thanks to the recovery in the auto sector.
       Tri Petch Isuzu Sales vice president Shigeru Wakabayashi said signs of recovery in the pickup market were evident albeit of small magnitude.
       Wakabayashi said the global recession had hurt Isuzu's exports from Thailand, due to falling orders from European and Middle East markets.
       "However, markets in Asean have not been as affected as ones in Europe, and we're receiving a good number of orders from Australia, where Isuzu UTE Australia was set up to handle sales of Isuzu pickups," he said.
       Isuzu pickups exported to Australia were previously sold under the Holden brand.
       Wakabayashi said the Thai pickup market had been heavily affected by the recession, because farmers, who are major buyers of pickups, were unable to receive auto loans.
       "The US financial crisis has affected the auto market, especially pickups, because finance companies raised their loan requirements, which prevented farmers, who do not have salaried incomes, from getting loans to purchase the trucks," he said.
       "However, in the last three months consumer confidence has improved, while the harvesting season is approaching, so finance companies may ease loan-approval measures for farmers, and this could help the pickup market recover gradually."
       Isuzu's new Super Platinum D-Max and Mu-7 are priced Bt5,000 to Bt7,000 higher than previous models and available with the Genius Exploring Network Interactive Intelligence navigation system, featuring a Thai-language menu and touch-screen display.

NEW DATA SHOW RECOVERY CONTINUING

2009-09-19T20:26:00.000-07:00

       Signalling that manufacturers are leading the economy into a recovery, output from the nation's factories, mines and utilities posted widespread gains in August.
       In a further dose of good news,inflation remained essentially nonexistent as prices scarcely rose last month.
       The August gains in industrial production marked the second straight increase after the global recession dried up the appetites of customers worldwide. Output rose o.8 per cent, the Federa Reserve said on Wednesday,beating analysts' estimates.
       In part, the improvement reflected auto sales that were boosted by the government's now-ended "Cash for Clunders" programme. But analysts were impressed that output rose broadly across industries.
       "Vehicles are not the whole story,"Nigel Gault, chief US economist at IHS Global Insight, said in a note to clients. Gault noted that production rose in five out of 10 categories of durable goods, including machinery and electrical equipment.
       The pace of growth is expected to slow later this year. That's partly because the stimulative effect of the clunkers programme, which issued rebates for people who traded in older gas-guzzlers for new,fuel-efficient models, will fade.
       But industrial stockpiles are so low that production should keep rising even as consumer spending remains weak, economists said. companies had cut their stockpiles by a record $159.2 billion (Bt5.4 trillion) in the second quarter. Low inventories tend to signal higher out put ahead, because companies even tually must produce more to refill their depleted stockpiles.
       "Manufacturers are in a catch-up mode right now," Gault said. "They're adjusting for the fact that the level of demand didn't meet their worst fears."
       Factory output, the single-biggest slice of overall industrial activity, also rose for the second straight month.
       Auto production led the way, rising 5.5 per cent in August. That followed a whopping 20.1 per cent gain in July, when General Motors and Chrysler reopened many plants that had been closed as the companies restructured and emerged from bankruptcy.
       Yet even with autos and parts stripped out, manufacturing activity gained 0.4 per cent last month.
       Production of steel, aluminium and other metals rose 0.9 per cent, while electrical equipment and appliances output also increased.
       Despite the recent gains, industrial companies are still operating well below capacity. The production rate in August was 69.96 per cent, under the 80 per cent consistent with a helthy econlmy.
       Manufacturing output will likely grow more slowly later this year as the clunkers' impact wears off said Daniel Meckstroth, chief economist for the Manufactureers Alliance/MAPI, a business research group.
       "We only expect a modest pace of recovery because of the headwinds that debt-laden consumers face," he said, meaning sluggish spending is likely for months.
       Consumer spending, which accounts for about 70 per cent of the economy, is forecast by many economists to show weak growth next year. Shoppers are holding back in the face of job losses, stagnant incomes and tight credit. That contrasts with the early stages of othe r recent recoveries.
       Inflation, meanwhile, remains nowhere in sight. The Consumer Price Index rose just 0.4 per cent in August, after a flat reading in July, the government said
       Prices fell 1.5 per cent in the past year,as petrol prices dropped sharply from record levels last summer.
       The "core" CPI, which excludes volatile food and energy prices, ticked up a scant 0.1 per cent, mathing expectations. Over the 12 months ending in August, the core rate rose 1.4 per cent, the smallest such increase in more than five years.
       That means the fed faces no pressure to raise its benchmark interest rate, a step it would take to ward off high inflation. The Fed has reduced the rate it charges banks for overnight loans to a record low of nearly zero to try to revive the economy.
       AT A GLANCE
       The August gains in industrial production marked the second straight increase after the global recession dried up the appetites of customers worldwide. Output rose 0.8 per cent, the Federal Reserve said on Wednesday, beating analysts' estimates.
       "Manufacturers are in a catch-up mode right now," Gault said. "They're adjusting for the fact that the level of demand didn't meet their worst fears."
       Auto production led the way, rising 5.5 per cent in August. That followed a whopping 20.1 per cent gain in July, when General Motors and Chrysler reopened many plants that had been closed as the companies restructured and emerged from bankruptcy.

       A CONTAINER SHIP loads up at the Port of Long Beach, California. US industrial production rose for the second straight month in August, with output beating analysts' forecasts.

ELECTRIC CARS GRAB SPOTLIGHT AT FRANKFURT SHOW

2009-09-16T07:07:00.000-07:00

       Sales have plunged, general Motors has emerged from bankruptcy, and Chrysler has been taken over by Italy's Fiat.
       The past year's turbulence will be reflected this week in a smaller US presence at the Frankfurt Auto Show, along with the new electric vehicles (EVs) many hope will secure the auto industry's post-recession comeback.
       The show, traditionally the "start" of the auto show season, is one of the most important auto-industry exhibitions in Europe.
       GM's Cadillac brand did not have apresence in the sprawling Frankfurt Messe exhibition Centre when the show opened to the news media yesterday, and Chrysler's Dodge and Jeep had moved to the Fiat stand.
       GM's European brands - Opel and Saab - will serve only to remind customers that GM is selling them. Other notable absences include Mitsubishi, Honda and Nissan's Infiniti, which are focusing instead on the upcoming Tokyo Motor Show.
       Industry Observers and the public will focus on advances in EVs and hybrids - and for improvements that may bring the vehicles into the mainstream.
       They will also be looking for clues about forthcoming small-car offerings from US carmakers aimed at improving their line-ups of fuel-efficient vehicles.
       Top new product offerings include four new EVs from Renault, with one headed for consumers by 2011 and another with no internal-combustion engine at all; a hybrid Mercedes B-Class called the F-Cell, which sports a fuel cell and an electric motor", and the first plug-in version of Toyota's Prius hybrid, meaning its batteries can be charged from a household outlet.
       GM will tout its Chevrolet Volt, a plug-in EV that uses an internalcombusion engine to extend its range beyond the standard commuting distances its batteries are designed to handle.
       All of these cars are headed for consumers soon, but BMW gives a look further down the road with its low-slung super-coupe, the Vision Efficient-Dynamics. It is a high-performance, plug-in diesel-electric hybrid powered by a three-cylinder 1.5-litre turbo engine and not one, but two electric motors: one for the rear wheels and one for the front.
       The BMW coupe is a concept car intended to show designs and technology that may or may not be reflected in production models in coming years.
       Those looking for an idea of small-car offers from US auto-makers can look at Ford's C-Max, aimed at replacing the Focus with a US debut sometime next year, while Opel has a new version of its Astra, its mainstay in European markets.
       The Astra will also give a preview of GM's plans for small cars in the United States. While GM has announced plans to sell 55 per cent of its European subsidiary to parts supplier Magna International, it will keep a minority stake, so it can keep on developing small and medium-sized cars with Opel. The Astra uses an architecture Opel developed for GM to use in small cars worldwide, including the Volt.
       "There will be an electric car at almost every stand [at this year's Frankfurt show]," said Ferdinand Dudenhoeffer, an auto-industry expert from the University of Duisburg-Essen, adding, however, that it would be some time before they were on the production line and in dealer showrooms.
       "Like in hybrids, the Japanese are ahead of the Germans in electric cars," he said. "One of the reasons is the battery technolgoy, which in Japan is systematically further developed. Another reason is the German auto-makers' strength in diesel. Large parts companies like Robert Bosch, for example, are behind the curve in batteries and electric cars (compared with the Japanese]".
       He said Toyota built its 2-millionth hybrid car this year-an important link in the EV chain - while fewer than 200 of Daimler's Mercedes S400, the only German hybrid in the market so far, have been built to date.
       Last month, Japan's Nissan unveiled the Leaf, an EV scheduled to go into mass production for global markets in 2012. And in the US, President Barack Obama has committed US$2.4 billion (Bt81.63 billion) in federal grants for the development of next-generation EVs and batteries.
       Also last month, Germany's government said it would spend about Euro500 million (Bt24.84 billion) over the next three years on a plan to put 1 million EVs on the road by 2020, including Euro170 million on battery research.
       The heavy batteries that take the place of internal-combustion engines and countries like South Korea and Japan are far ahead in terms of research and development
       Improving these batteries has become vital.

63rd Frankfurt motor show promises 82 world premiers

2009-09-14T19:37:00.000-07:00

       The Frankfurt motor show, known as the IAA and which takes place from September 17-27, aims to make consumers forget the auto sector crisis with a wave of new models, in particular electric ones.
       "The IAA 2009 is being held in the right place at the right time," said Matthias Wissmann, president of the VDA auto federation that organises the show.
       He added that the worst of the crisis had passed and the fair would celebrate with a "fireworks show of innovations."
       The 63rd edition of the IAA, which takes place every two years, alternating with a show in Paris, is a slimmed-down version of the preceding one however,with the number of exhibitors down by 30% to 750 and several Asian brands deciding not to come.
       Nissan, Honda, Mitsubishi and Daihatsu are staying home, while recovering US group General Motors will not display its Chevrolet brand but be present with the German unit Opel.
       GM has just agreed again to sell a majority stake in Opel to the Canadian auto parts group Magna and its Russian partner Sberbank, having apparently come to terms after an initial deal announced in May hit bumps.
       The total surface of this year's show has been reduced by 15% and the number of visitors expected by 20% to 750,000.
       "This IAA is taking place under a sign of crisis," said Frank Schwope, auto analyst at NordLB bank.
       LBBW counterpart Stefan Sigrist added:"I expect more modesty and fewer pompous events."
       Auto sales slumped in many markets a year ago and only avoided a collapse in western Europe thanks to government subsidies in Britain, France, Germany,Italy and Spain.
       Despite occasionally hefty rebates,European auto sales fell by 11% in the first six months of 2009 according to the European Automobile Manufacturer's Association.
       Frankfurt still sees itself as the "world's largest showcase for the automotive industry," since the upcoming Tokyo Motor Show has cut the number of stands in half and London's 2010 salon was cancelled.
       This year's fair in Frankfurt claims 82 world premiers, slightly below the level in 2007. German brands are set to present half of them.
       "Among those there may be some ridiculous ones," Schwope warned however."It is often exaggerated and a question of marketing.
       "The revolutionary car will not come to Frankfurt," he forecast even though the show could display progress made with respect to electric or hybrid cars.
       "The IAA might manage to show a few symbols for the sector's future,"said Stefan Bratzel, a professor at the auto institute in Bergisch Gladbach.
       All manufacturers have basically the same themes, sustainable development and electromobility.
       "It will be a green IAA, you can already see it in the logo that shows two hands coming together in front of a lawn and Frankfurt's office towers," Sigrist said.
       Peugeot, Hyundai, Mini, Renault,Smart and Volkswagen are among the brands set to display all electric cars.Some might also give an indication as to when full-scale distribution could begin.
       "Whoever can get themselves positioned well is going to profit from the IAA," IHS Global Insight analyst Christoph Stuermer noted.
       Metzler Bank analyst Juergen Pieper added however that while electric cars were the big buzz this time around,"the game is not over, there is still a possibility there will be technological advances further on."
       Bratzel concluded that "we should not believe that electric cars will be on sale after the IAA ends. But the auto show is there to make you want one."

TSL going after premium-car crown

2009-09-13T19:27:00.001-07:00

       TSL Auto Corporation's glamorous showroom and service centre in the heart of Soi Thong Lor made its debut last week, signifying an expansion drive intended to ensure it remains the country's largest independent premium vehicle importer.
       The company is acting quickly to fill the void created by the collapse of former market leader SEC Auto Sales and Service Plc (SECC), which halted sales in the wake of a massive fraud and embezzlement scandal.
       The latest facility, the third after Chaeng Watthana and Narathiwat Ratchanakarin, cost TSL more than 100 million baht to reconstruct buildings formerly used by SECC.
       The investment underlined TSL's confidence in the premium car market going forward despite the poor outlook for the automotive industry.
       Chairman Surasit Udompolvanich said TSL's five years of growth and support from loyal customers had enabled it to become the leading independent dealer.
       He said TSL also was committed to maintaining service quality at international standards with an advanced technology and well-trained technicians.TSL is also the first dealer to service hybrid electric vehicles.
       Next year, Mr Surasit said TSL planned to open new showrooms and service centres in Bangkok to ensure all areas are covered.
       Sureeporn Udompolvanich, the com-pany's vice-chairwoman, said TSL would open more stand-alone service centres next year in Bangkok to provide convenience to its more than 10,000 customers.
       The centres service owners who bought vehicles from other dealers, but they are required to pay an entry fee of 50,000 or 100,000 baht and do not receive the discounts on parts and labour that TSL gives to its own customers.
       TSL's three service centres with a combined 18 bays are capable of handling 80 cars per day.
       Early next year the company will introduce a delivery service in which technicians will visit customers' homes for check-ups, repairs and scheduled maintenance.
       Miss Sureeporn said the imported car market continued to grow but competition remained tough because of an increasing number of new importers.
       The luxury car market has fared better than the auto industry as a whole because import customers are not as badly affected by the economic and political conditions.
       She said TSL's car sales in 2008 doubled year-on-year to 352 units and are projected to grow 30% this year to 450 units, with 70% of the sales Japanese car brands.
       Major models in its portfolio include the Toyota Estima, Vellfire, Commuter and Bb; Nissan Fairlady, Cube and GTR; Mazda Rx 8 and MX 5; Mini Cooper,and Mercedes Benz E-Class, S-Class and SLK Class.
       In addition, customers can order the models of their choice.
       However, she acknowledged that political and economic factors including rising oil prices would have an impact on car buying decisions.
       In response, TSL will continue with its policy to market more hybrid vehicles,which will account for 30% of its car sales this year. The most popular hybrids are the Toyota Prius and Estima.

Merkel elated as GM sells stakes to Canadians and Russian suitors

2009-09-12T16:38:00.000-07:00

       General Motors will sell European unit Opel to Canadian auto-parts maker Magna International and Russia's Sberbank in a deal that preserves GM's ability to develop new cars with its longtime subsidiary.
       The announcement on Thursday was a politically charged win for German Chancellor Angela Merkel, who saw the deal as the best change to save jobs at a major employer less than three weeks before national elections on September 27.
       GM will see a 55-per-cent stake in Adam Opel transferred to the Canadian-Russian team but will keep 35 per cent for itself, with 10 per cent held by the workers.
       Opel had been placed in a trust with Germany holding 65 per cent and GM 35 per cent to keep it from being drawn into GM's restructuring under bankruptcy protection in the US
       The deal still depends on conditions that could take weeks or months to work out, such as final agreement for government financing and union support for what could be painful cuts, with chief GM negotiator John Smith indicating the Opel plant in Antwerp, Belgium, could be wound down.
       The announcement offers some clarity to workers fearful about their jobs as the talds dragged out for months.
       "My son has been asking me every day for the last nine months for how much longer I will still have a job," said Werner Karnitz, 52, a worker at the Opel plant in Cochum, Germany.
       GM once favoured a rival bid by investment firm RHJ International, in part for fear that Magna and Sberbank could create competition for Chevrolet in Russia, a key market. More recently, GMs new, postbankruptcy board has ordered management to consider more options, including keeping Opel, in part over worries that the company could lose control of shared GM-Opel technology and patents to competitors.
       But German government support appeared decisive in the end.
       Merkel and the German government backed the bid by Magna and the Russian state-backed lender, giving 1.5 billion euros (Bt74 billion) in bridge financing to keep Opel afloat and offering Euro4.5 billion more in credit to complete the deal.
       With the German Government rejecting the RHJ bid and money scarce to keep opel going, GM had little choice, said Tim Urquhart, an analyst at IHS Global Insight in London.
       "I think basically their hands were forced," he said. "In the final analysis, the only other option was to shut the thing down."
       "We see in the Magna and Sberbank proposal a couple of additional levers that we don't think we ourselves can bring to the party," said GM's Smith. "I think the board conceded that new Opel, as it seeks to restructure, could very well use a different management style."
       Magna chairman Frank Stronach said the company would put up "appropriate firewalls" to ensure its auto parts business and Opel would remain segregated "so that the confidential and proprietary information of its customers is fully protected."
       Smith said Magna and Sberbank are investing Euro500 million for the million for the stake - Euro450 million in equity and a Euro50 million convertible loan.
       Merkel said talks would be held with other countries where Opel has locations - Britain, Poland, Spain, Belgium and Portugal-in the coming weeks to ensure the burdens of restructuring could be shared fairly.
       "This is what the government wished," Merkel said. "Opel still has a difficult way ahead of it, but I trust the workers will take on the task."
       Smith warned that while the Opel plants in Germany were safe, there would be changes elsewhere.
       In Magna's proposal, work at a facility in Antwerp, Belgium that employs, 2,231 workers would "wind down," Smith said. He added that some of the production in Zaragosa, Spain, would shift to Eisenach in east Germany.
       In all plans, Antwerp is the plant that is idle," he said.
       Smith said both plants in Britain, Ellesmere Port and Luton, were viable.
       Labour, though, was poised to help, a sign that Magna's promise to keep four Opel plants with 25,000 workers open in Germany was well received.
       Klaus Franz, the chairman of the European Employee Forum of General Motors said GM's decision was embraced by workers and they were willing to contribute to restructuring while seeking to avoid layoffs. "Alternatives are at hand. We have developed viable alternatives and we will put them on the negotiation table," Franz said.
       Although it's unlikely in the short term for political reasons, Opel's new owners will eventually have to shut factories and cut employees in Europe in order to make the Opel-Vauxhall operation financially viable, said auto analyst Urquhart.
       "No matter who would have been in control - GM, RHJ or Magna - I think many of the same things would have been done. Obviously they have too much capacity and things will have to be cut," he said.
       Opel has been losing money for years. Its European operations, which include Opel, Vauxhall and Saab, posted an operating loss of aobut US$2 billion (Bt68 billion) in the first quarter of thisyear and a total of nearly $3.7 billion for the years 2006-2008. Analysts say most of the losses can be attributed to Opel and Vauxhall.

       "My son has been asking me every day for the last nine months for how much longer I will still have a job?"

JAPANESE FIRMS TO CONTINUE THAI STAKE

2009-09-11T05:47:00.000-07:00

       The Industry Ministry wants Japanese manufacturers to make energy-saving autos apart from eco-cars and companies like Panasonic to produce batteries for electric-vehicle (EV) production in Thailand.
       Minister Charnchai Chairungrueng said following a road show here staged by the Board of Investment (BoI) and the Thailand Automotive Institute, four auto-makers - Nissan, Honda, Mitsubishi and Suzuki - expressed their intention to continue their investment in Thailand. That will be in the form of eco-cars and other types of energy-saving and ecological vehicles, including hybrid and electric vehicles.
       "We asked them to draw up their proposals in detail and submit them as soon as possible. Their investment plans will have our full support as long as they benefit our country," he said.
       Charnchai also met with Panasonic executives yesterday and said the company would also expand its investment in the Kingdom. It is interested in producing hi-tech screens and building a plant to make batteries for EVs.
       Amid strong concerns about global warming and fossil-fuel depletion, auto-makers have shifted their focus in recent years to developing models that are more environmentally friendly and energy-efficient.
       Thailand began to be aware of these changing trends in the automotive industry in 2007 and last year announced it would promote eco-car investment and approve tax incentives for six auto-makers: Honda, Nissan, Toyota, Mitsubishi, Suzuki and Tata.
       However, under pressure from the global financial meltdown, most of them postponed their eco-car production plans until demand recovered.
       Only Nissan insisted it would move forward and launch eco-cars in next year's first quarter.
       Although it, too, was hit by the economic crisis, Nissan accelerated development of hybrid and electric cars, in order to boost sales aggressively.
       Mitsubishi is scheduled to start commercial production of EVs by next year, while Toyota has received a good response for hybrid cars from the Japanese market, with an eight-month backlog of orders.
       "The outlook for the automotive industry is becoming brighter, with demand picking up in some segments, such as passenger cars and energy-saving vehicles.
       Although other segments remain murky, we are at least seeing a clearer direction for the automotive industry," said Vice Minister Sorayut Phettakul.
       He said to enhance Thailand's competitiveness in making EVs, the Kingdom needed a strong supply chain, particularly regarding battery technology.
       "That's why we're trying to persuade Panasonic, the leader in EV batteries, to expand its investment in Thailand," he said.
       Santi Leelawong, director of the BoI's Osaka office, said energy-saving vehicles had been well received by the Japanese, due partly to a government subsidy of 15-20 per cent of the selling price.
       So far, Mitsubishi is the only company to produce EVs for the market. The battery in its cars is good for 160 kilometres, but development continues in a bid to extend the range.

INDIA'S CAR EXPORTS OVERTAKE CHINA'S

2009-09-09T23:02:00.001-07:00

       The Indian auto industry, whose market is only 19 per cent as big as that in China, has an edge in exports.
       Suzuki, Hyundai and Nissan are making India a hub for overseas sales of minicars, as incentives lift demand for smaller, fuel-efficient autos. Helped by cheaper labour and a surging local market, India this year over-ttok China in auto exports and is challenging Thailand and South Korea as an alternative production centre in Asia.
       "There is a worldwide shift toward fuel-efficient, compact cars," said Jayesh Shroff, who helps to manage assets worth about US$7 billion (Bt239 billion), including carmakers' shares, at SBI Asset Management in Mumbai.
       "This offers a huge potential for India and it can emerge as a leader in the small-car segment."
       Maruti Suzuki India's exports have more than doubled to 79,860 this year. It aims to ship 130,000 vehicles in the year to March 2010, 86-per-cent more than last year, said chairman RC Bhargava.
       Maruti Suzuki sold a monthly record of 14,847 vehicles overseas in August. India's exports of minicars and hatchbacks gained 44 per cent between January and July to 201,138, according to the Society of Indian Automobile Manufacturers. Total exports, including vans, sport-utility vechicles and trucks, rose 18 per cent to 229,809. Cars are exported to more than 100 countries, not including the US or Japan.
       In contrast, China's exports slumped 60 per cent to 164,800 vehicles between January and July, according to government data. Vehicles produced in Thailand for export declined 43 per cent to 263,768, according to the Federation of Thai Industries' Automotive Club.
       South Korean exports dropped 31 per cent to 1.12 million units, according to the Korea Automobile Manufacturers' Association. Japan, the world's largest automobile producer and exporter, shipped 1.77 million cars, trucks and buses. Of those, 135 were minicars and 439,849 were compacts.
       Besides the attraction of serving a market where three of four cars bought are compact, auto-makers will favour India to set up an export base because China requires companies to form local joint ventures and India does not, said London- based managing director of Intelligence Automotive Asia, Ashvin Chotai.
       "It makes companies more comfortable to have an export strategy when they have full control," he said. "They don't have to give up some part of the profits to their partner."

India enjoys big increase in car sales

2009-09-08T19:22:00.000-07:00

       Car sales in India raced an annual 26% in August, rising for a seventh month, and demand is seen picking up in October when annual bonuses are paid in much of the country.
       The government is also set to give out 180 billion rupees ($3.7 billion) in backpay to workers next month, the second instalment of a wage pact agreed last year.
       Industry body the Society of Indian Automobile Manufacturers (Siam) said yesterday companies sold 120,669 cars in August against 96,082 in the same month last year.
       Sales in the first five months of the fiscal year that began in April have risen 13%, with the pace of growth in July the fastest at an annual 31%, after rising just 1.3% in the year to March 2009.
       "Some further growth is anticipated.Definitely some build up is happening for the festive season. The last instalment of the sixth pay commission is also expected to boost demand," Sugato Sen,a senior director at Siam said.
       He said Siam, which had projected in April full-year sales growth at 5% in 2009/10, would revise upwards its forecast after September sales are known.
       Car sales are a leading gauge of consumer sentiment in India, in the absence of other indices and the country is one of the few markets in the world where demand has been picking up though volumes are much lower than in China.
       China's passenger cars sales in August rose 90% from a year earlier to 858,300,the China Association of Automobile Manufacturers said yesterday. Overall vehicle sales, including trucks and busses,rose 82% to 1.14 million. Commercialvehicle sales climbed 60% to 280,200 units.
       In the first eight months, China's vehicle sales rose 29% to 8.33 million, with passenger-car sales growing 37% to 6.22 million. Commercial-vehicle sales rose 11% to 2.1 million.
       In India, Maruti Suzuki, a unit of Japan's Suzuki Motor Corp, led the growth posting an annual 42% jump in August sales at 84,808 units.
       The company, which produces every second car sold in India, is building a new factory to upgrade its production facilities to meet demand.
       Sales of trucks and buses, a barometer of economic activity, rose 18.5% from a year earlier to 40,624 units, their second straight rise after falling continuously since July last year.
       Sen said a rise in the sales of medium and heavy commercial vehicles was a healthy sign and indicated economic activities were picking up.
       Motorcycle sales rose 26% to 611,173 units from a year ago.

Asian domination of American market expected to intensify

2009-09-07T18:58:00.000-07:00

       The Asian domination of US auto sales is set to intensify despite dramatic improvements and painful restructuring at the Detroit Three.
       Asian automakers captured 52.3% of US sales in August - the first time they controlled more than half the market and the culmination of decades of steady growth at the expense of General Motors,Ford and Chrysler.
       The five-point jump from a year earlier was attributed largely to a governmentfunded "Cash for Clunkers" programme.
       "Longer-term, with certain brands being divested it's going to hurt the market share of the American brands so that would give another advantage to Asian automakers," said Efraim Levy,an analyst with Standard & Poor's Equity Research.
       "While it won't be as easy for Japan's Toyota and Honda to expand at the same pace because they have now entered most segments, they are still well positioned to grow," Levy said.
       Korean automakers Hyundai and Kia are also making major inroads as they expand their offerings and take advantage of their price advantage and some savvy marketing.
       "The recession has been quite the opportunity for the Korean automakers,"said Jessica Caldwell, a senior analyst at Edmunds.com.
       Toyota and Honda first began making inroads during the oil crises and reces-sions of the 1970's when consumers switched from Detroit's muscle cars to their affordable, fuel efficient models.
       The Detroit Three shot themselves in the foot in the 1980's with poorly designed vehicles and a reputation for shoddy quality which became entrenched in the minds of US consumers.
       However the introduction of minivans and sport utility vehicles kept Detroit afloat until the late 1990's, when fuel prices started to rise and they failed to respond to Toyota and Honda's smaller and easier to handle SUVs.
       After slowly drifting from 76.9% market share in 1980 to 69.6% in 1998, the Detroit Three saw their share plunge to 58.2 by 2005, when the latest round of plant closures and restructuring began.
       They ended 2008 at 47.5%- a nearly ten point drop in three years - and are currently at 43.9% for the year to date.
       Asian brands stand at 48.0% for the year to date, while European brands account for 8.1%, according to Autodata.
       "Yet there is an opportunity for the Detroit Three to turn their fortunes around," said analyst Rebecca Lindland of IHS Global Insight.
       "With the new, more cost efficient structures that the Big Three have they should be able to start - especially at GM - to focus their engineering and marketing budgets on fewer, better brands," she said."All is not lost, but it is based on getting product in that excites consumers."
       "The problem is that it takes years to develop new vehicles and major brands are being dropped in the coming months," said Standard and Poor's Levy.
       "They're not going to keep all those customers," he said in a telephone interview."While those potential benefits are there, it's not guaranteed and that investment will take time to be reaped."
       "Ford has some very promising product plans and GM also has some good offerings in the mix," Caldwell said.
       "I don't see anything new or interesting at Chrysler," she added.
       While GM continues to hold onto first place in sales in the United States after losing the title to Toyota globally last year, the upcoming elimination of brands like Pontiac and Saturn is certain to undermine its market share, which is at 19.4% so far this year.
       Ford - the only one of the Detroit Three to escape bankruptcy - has a strong product portfolio which helped it post gains in July and August for the first time since November 2007 and boost its share to 15.2% for the year to date.
       But it has been unable to regain second place from Toyota, which is at 16.6% for the year to date.
       Chrysler - which has slid to 9.2% so far this year - is currently competing with Nissan (7.4%) for sixth place after being surpassed by Honda (11.4%) for fifth.
       Meanwhile, Korea's Hyundai is breaking records as it climbs to a 4.4% share and Kia is up 0.9 points at 3.1% for the year to date.

SUZUKI MOVES TO BUILD NEW INDIA PLANT

2009-09-06T02:36:00.000-07:00

       Japan's Suzuki Motor plans to build a new plant in India in 2011 in a bid to meet growing demand for cars in the country, a newspaper reported yesterday.
       The manufacturer of small cars and motorcycles plans to invest about 30 billion yen (Bt1 billion) in construction of a plant with annual production capacity of 300,000 vehicles, the Nikkei business daily said. The firm will build the plant near its production base in manesar near New Delhi, where Suzuki has already been producing some 300,000 units a year with its Indian partner, according to the daily's evening edition.
       Vehicle manufacturers see huge potential in countries such as India and China, with their billion-plus populations. In July, Indian car sales jumped for a sixth straight month, climbing an annual 31 per cent. India is one of thw world's least penetrated car markets with just seven autos per 1,000 people compared with 850 cars per 1,000 people in the United States.
       Immediate confirmation of the report was not available.
       Meanwhile Italian car company Fiat is planning to source components worth US$1 billion (Bt34 billion) from India by 2010 for its global operations, a news report said.
       "Our target is to make India an important sourcing hub," Fiat Group purchasing vice-president, Franco Cavallotti, was quoted by the PTI news agency as saying.