KLAUS Multiparking and Automag to manufacture mechanised parking systems near Pune

In a 50:50 joint venture project, German company KLAUS Multiparking GmbH and the Pune-based Automag Group are setting up a manufacturing facility near Pune, where they will produce mechanised parking systems.

KLAUS Multiparking has significant experience and technical expertise in manufacturing and installing multi-level car parking systems. The company has supplied its parking systems in 65 countries all over the world, which can, together, accommodate up to 500,000 cars. Now, according to Guenther Siederer, MD, KLAUS Multiparking Systems, India also needs mechanised parking systems to deal with the huge growth in the number of cars on our streets in all major cities.

Mechanized car parking systems enable optimum usage of space and ensure safety and security of cars, says Nitin Bhave, MD, KLAUS Multiparking Systems India. He adds that his company’s parking systems are the ideal solution for the huge parking requirements in the country’s shopping malls, airports, railway stations, major commercial complexes and so on.

Over the next few months, apart from Pune, KLAUS car parking systems will be installed at various sites in Bangalore, Mumbai, Delhi, Jaipur and Nagpur.

Read full story

Porsche reports record profits, turnover and sales

Global recession? Time to buy more Porsches then!

Despite the worldwide economic recession, it seems people are buying more Porsches than ever before! Porsche Automobil Holding SE, Stuttgart, reports that the company has set new records in the business year 2007-08, with profits, turnover, sales, and production reaching new all-time highs.

The business year 2007-08 was the most successful year ever in the 60-year history of Porsche, with Group profit before taxes increasing by 46 percent to 8.569 billion Euro. This significant jump in profit was again due to special influences in connection with the holdings in Volkswagen AG, Wolfsburg, Germany.

Porsche’s operative earnings before taxes, corrected for special effects from hedging operations as well as the interest result of Porsche SE, amounted to around one billion Euros. Increased development costs incurred (for the Panamera, for the hybrid drive in the Cayenne, for new, reduced fuel consumption engines and for new vehicle models etc.), proved a burden on this result.

Porsche’s sales growth was fuelled first and foremost by the Cayenne series. Increasing by 34 percent to 45,478 units, sales of the all-wheel drive four-door Cayenne reached a new record level. Sales of the 911 model series, amounting to 31,423 units, were only 16 per cent below the previous year’s very high figure. The Boxster series, which also includes the Cayman, accounted for a total of 21,747 units sold, 16.8 percent less than in the previous business year.

Porsche’s total production in the business year 2007-08 was 105,162 units, an increase of 3.3 percent. The number of Porsche Group employees was also up 5.5 percent to 12,202.

However, Porsche Automobil Holding SE expects a significant drop in sales in the current business year 2008-09. The signs of a severe decrease in demand in the automotive industry are unmistakable the world over, and it is virtually impossible to calculate further developments, particularly in the USA, the largest single market for Porsche. However, a slump in demand for Porsche’s cars in the US, Japan and Europe may at least partially be offset by the significant surge in demand in Asia, including India.

Production at the company is being scaled down to reflect actual demand in the market. Porsche’s Zuffenhausen plant will remain closed on seven days up to the end of January 2009, after production ceased for the first time on 21 November 2008.

Porsche expects the next significant move ahead in the upcoming business year with the launch of the four-door, four-seater Panamera Gran Turismo.

Read full story

Euro NCAP to go with new, more stringent safety tests in 2009

Euro NCAP crash testing is all set to get tougher next year...

According to a report on the Telegraph, four- and five-star Euro NCAP safety ratings may become harder to come by for carmakers from next year onwards, as the testing body is getting ready to introduce more stringent tests for cars.

Currently, for each car it tests, Euro NCAP gives out multiple star ratings under various categories – for example, adult occupant protection, child occupant protection, pedestrian protection and so on. However, from February 2009 on, a new system will come into effect, wherein just one overall star rating will be awarded to each car.

The one overall Euro NCAP rating awarded to each car will be decided on the basis of the average of its scores across the various prescribed categories. Information on how a car scores in each category will still be publicly available, but by giving out only one overall star rating, Euro NCAP hopes to make things simpler for prospective car buyers.

The tests themselves will also get tougher, and safety devices fitted to cars will be looked at more closely. Things like seatbelt warning systems, head restraints that provide whiplash protection in the event of a rear-end collision, rear windshield airbags and so on will get more attention than before.

‘It is clear that Euro NCAP's new rating scheme in 2009 will offer a more discriminating view of the overall safety performance of today's best-selling vehicles, and give customers the opportunity to prioritise and maximise the safety options on their vehicles,’ says Michiel Van Ratingen, Secretary General, Euro NCAP.

Read full story

Honda, Chevrolet, Maruti and Toyota cars top the J.D. Power Asia Pacific 2008 India IQS

J.D. Power Asia Pacific2008 India Initial Quality Study (IQS): Chart shows top three vehicles per segment in Initial Quality. Lower score reflects better performance

Honda models improved considerably in initial quality from 2007, garnering three model-level awards and emerging as the most-improved brand, according to the J.D. Power Asia Pacific 2008 India Initial Quality Study (IQS) released today.

The study, which measures problems customers’ experience with their new vehicles during the first two to six months of ownership, examines more than 200 problem symptoms covering eight vehicle components. These components, listed in order of frequency of reported problems, include: engine and transmission; vehicle exterior; driving experience; HVAC; features, controls and displays; vehicle interior; seats and audio, entertainment and navigation.

Overall quality performance is determined by the problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality. Three Honda models rank highest in their respective segments: The Honda CRV (33 PP100) ranks highest in the SUV segment for the second consecutive year. The Honda City (68 PP100) and Civic (78 PP100) also improve considerably from 2007, to rank highest in the midsize and premium midsize segments, respectively, in 2008.

The Chevrolet Spark ranks highest in the compact car segment with a score of 148 PP100, while the Chevrolet UVA ranks highest in the premium compact segment in 2008, with a score of 102 PP100.

In the entry midsize segment, the Maruti Swift DZire ranks highest with 166 PP100. In the MUV/MPV segment, the Toyota Innova (98 PP100) ranks highest for the second consecutive year.

‘Improvement in initial quality is a must if manufacturers are to earn trust and acceptance from customers, which is in turn essential in gaining market share,’ said Mohit Arora, senior director at J.D. Power and Associates, Singapore. ‘Honda has performed consistently well in initial quality in the past, and the brand’s improvements in 2008 reflect its renewed commitment to providing particularly high levels of initial quality.’

Overall initial quality in India averages 187 PP100 in 2008, down 14 points from 2007. Problems related to engines and transmissions are reported most frequently by customers, followed by problems related to vehicle exterior and driving experience. Excessive fuel consumption continues to be the problem most frequently reported by customers.

‘Occurrence of problems, particularly during the initial ownership period, leads not only to increased dissatisfaction, but also to lower levels of customer loyalty and advocacy,’ said Arora. ‘Customers who report an initial quality problem are much less likely to repurchase or recommend the same make, compared with those who do not report experiencing a problem. Loyalty and advocacy intentions decline by 18 and 22 percentage points, respectively, among customers who report experiencing problems during the initial ownership period.’

The 2008 India Initial Quality Study (IQS), now in its 12th year, is based on evaluations from more than 6,000 owners who purchased a new vehicle between November 2007 and July 2008. The study includes 45 vehicle models covering 12 makes. The study was fielded from May to September 2008 in 20 cities across India.

Read full story

GM may sell or shut down Saturn, Saab and Pontiac brands

Saab, along with GM's Saturn and Pontiac brands, may soon be history...

General Motors Corp., in a bid to cut costs and perhaps get US$12 billion in government loans, is now said to be considering the possibility of selling or shutting down three of its brands – Saturn, Saab and Pontiac. Hummer, another of the troubled company’s brands, is already being considered for sale or closure.

Doing away with these brands will reduce product overlap and cut costs for GM, which is currently facing the grim prospects of running out of working capital by the end of this year, and perhaps having to file for bankruptcy.

While GM wants to keep its Chevrolet, GMC, Buick and Cadillac brands, it wants to do away with Pontiac, Saab and Saturn. GM’s Pontiac division, established in 1926, is an 82 year old brand and used to do well till the late-1970s. Saturn was established in 1985, while Swedish carmaker Saab was fully taken over by GM in the year 2000.

GM had, back in the year 2000, shut down one of its oldest brands – Oldsmobile – which was 103 years old when it had to be put down.

Read full story

VECV to make India its commercial vehicles production hub for emerging markets

VE Commercial Vehicles (VECV), a joint venture between Eicher Motors and the Sweden-based Volvo, has announced that it plans to make India its global hub for producing commercial vehicles for emerging markets.

‘We are looking at making India the centre for product development and manufacturing commercial vehicles to cater to the requirements of emerging markets,’ said Siddhartha Lal, MD and CEO, VECV. ‘There will be a lot of aggregates such as engines and cabins from Volvo, while Eicher can provide axles and gearboxes,’ he added.

Lal said that the idea is to develop and manufacture commercial vehicles that are robust and economical – two traits that are a must for emerging markets. He added that VECV’s commercial vehicles would cater to domestic requirements, but will also be exported to markets like Southeast Asia and Africa, where Volvo does not offer lower- and mid-end commercial vehicles.

For export markets, VECV’s vehicles will be sold through the worldwide Volvo network.

Read full story

Bosch: Celebrating 25 years of supplying electronic controls for automatic gearboxes

With ever-increasing traffic congestion all over the world, more motorists are now picking the convenience of an automatic gearbox over the standard manual gearbox. While automatics have always been popular in the US, they are now gaining popularity in Europe and Asia, including India.

Automotive components and electronics specialist, Bosch has been at the forefront of supplying electronic control systems for automatic gearboxes, for the last 25 years. The company’s objective has always been to provide controls that can offer a high degree of comfort through fast, gentle gear changes, reduced fuel consumption and low wear-and-tear of components.

Bosch supplies electronic and hydraulic components for controlling automatic transmission units, continuously variable transmissions (CVT), dual-clutch transmission and automated manual transmissions (AMT). In addition, the company supplies control units and actuators for torque distribution transmissions and differential locks for vehicles with four-wheel drive.

The first application of an electrohydraulic transmission control was introduced by Bosch in 1983. Back then, the four-gear automatic transmission on the BMW 745i was controlled by an 8-bit computer. Subsequent developments included the first adaptive transmission control (ATC) introduced in 1992, a system that recognises the driver’s driving technique and adapts the gear shifts to suit, for example from economical early upshifts to changes to fit a more sporty style.

The first 32-bit electronic control unit was launched in 1996, and in 2001 Bosch introduced the first mechatronic control module which integrated electronic and mechanical components. In 2005 Bosch commenced series production of the Transmission Electro Hydraulic Control Module (TEHCM) which created a new benchmark for transmission control providing weight advantages and robustness as well as ensuring maximum reliability.

A current example of Bosch’s transmission control developments is the module for an eight-gear automatic transmission which has been designed to further improve gear-shifting dynamics and to reduce fuel consumption.

Read full story

Car dealers: Learning to deal with the first downturn of the digital age

According to research results presented at a recent automotive conference in the UK, car dealers must make better use of data, technology and processes to underpin interaction with their customers if they are to succeed in the face of the current economic slowdown. While the meet was held in the UK, many findings and suggestions outlined there could, we feel, be quite relevant in the Indian market as well.

Adrian Joseph, Director – Automotive, at Google, revealed new research into online buyer behaviour, commenting that the economic crisis, ‘the first downturn of the digital age,’ would present auto dealers with opportunities as well as challenges. He suggested ways that dealers should modify their approach to online marketing to reflect how consumers were now using the internet to ‘cut through the historically convoluted and time consuming process’ of buying a car.

Chris Kent, Director - Motor Retail, at PricewaterhouseCoopers, forecasted further consolidation amongst manufacturers and retailers in 2009, and urged the motor trade to abandon the drive for volume over profit. Dealers of all sizes, he argued, must adapt their retailing strategies to the needs of better-informed customers.

Drayton Bird, widely acknowledged as an authority on direct marketing, encouraged delegates to improve the accuracy of their customer databases, and to use them far more proactively. Dealers should analyse how they treat customers, and tailor their marketing activity more effectively. He suggested that in the current economic climate it is particularly important to optimise all elements of the customer experience, as well as increase the regularity of communication with customers and prospects, including those that previously chose to take their business elsewhere.

Other sessions, involving speakers from YouTube and Incentivated.com, outlined how consumers were researching potential vehicle purchases in new ways, and that dealers must consider SMS and online video marketing techniques to remain competitive.

Previewing new research examining how the credit crunch is influencing the needs and wants of potential car buyers, Frank McCaffrey, Managing Director - Exchange & Mart, highlighted the growing requirement for dealers to anticipate a rapid shift in demand towards fuel- and tax-efficient cars. The company’s research indicated that in an effort to beat the downturn 34 percent of dealers are currently looking at new marketing methods, and 46 percent are already retailing greater numbers of more affordable cars.

Martin Hill, Sales and Marketing Director at Codeweavers, explained how car buyers now expect dealer websites to offer an unparalleled level of information and interactivity. In order to convert and retain business, websites must offer significant breadth of detail relating to advertised stock, including interactive finance and insurance offers tailored to the vehicle and the customer.

Referencing recent customer research, Neil Addley, Marketing Director at Motors.co.uk explained that, in order to market vehicles competitively online, dealers must meet customers’ demanding requirements regarding price, images and depth of information.

Read full story

Porsche releases first pics of the 2009 Panamera Gran Turismo

The 2009 Porsche Panamera GT. Not very pretty, is it?

While the Panamera GT will only be launched by mid-2009, the first official photographs of the four-door car have just been released by Porsche. We certainly don’t like the way it looks, but then styling is a matter of individual preference.

According to Porsche, the Panamera GT has been conceived and designed as a four-door grand touring sports car – one that offers sporting driving dynamics, a generous interior, and the driving comfort of a Gran Turismo. After the 911, Boxster, Cayman and Cayenne, the Panamera is Porsche's fifth model series.

Started by the Mercedes-Benz CLS, the trend for sporting four-door coupe-like cars has caught on, and with the Panamera, Porsche hopes to take on the CLS and other similar cars, like the Jaguar XF, Lamborghini Estoque and Aston Martin Rapide. Certainly, with its four seats and luggage carrying capabilities, the Panamera GT would probably be more practical than a 911 GT3, though we’re not too sure about exactly how many people buy a Porsche for its practicality.

When the Panamera GT goes on sale next year, it will be offered with a choice of V6 and V8 engines, producing anywhere between 300 to 500 horsepower. Six-speed manual and seven-speed Porsche-Doppelkupplung (PDK) double clutch gearboxes will be offered, and buyers will also be able to choose between rear-wheel-drive and all-wheel-drive.

The Panamera will be assembled at Porsche's plant in Leipzig, while its engines will be built at the company's main plant in Zuffenhausen. Porsche has an annual sales target of 20,000 units for the Panamera, and we’re sure some of those will end up in India. If you want one, you should probably be talking to your friendly neighbourhood Porsche dealer right now…

Read full story

Honda FCX Clarity now being leased in Japan

The Honda FCX Clarity - the future begins here...

Honda, which started leasing its FCX Clarity fuel cell vehicle in the US in July this year, has now also started leasing the vehicle in Japan. The company delivered the first of these vehicle to the Japanese ministry of environment today.

While other carmakers also have fuel cell powered vehicles in the pipeline, Honda becomes the first manufacturer in the world to actually start producing (albeit in a very limited way) and leasing these vehicles for street use.

For now, Honda will only lease the FCX Clarity to certain government agencies and corporate entities in Japan. In fact, the company will only lease a total of about 200 units of the FCX Clarity in the US and in Japan, over the next three years.

Read full story

Kia unveils Borrego fuel cell vehicle at Los Angeles Auto Show

The Kia Borrego fuel cell vehicle - a glimpse at the world's automotive future?

While Honda started leasing its FCX Clarity fuel cell vehicle in Japan today, other manufacturers are also trying hard to keep up. Kia Motors, for example, recently unveiled its Borrego Fuel Cell Electric Vehicle (FCEV) at the Los Angeles International Auto Show.

The Borrego FCEV’s hydrogen fuel cell powerplant produces the equivalent of 154 horsepower, and its 450v supercapacitor gives it extended driving range, and cold weather starting capability so the vehicle can operate even in extremely cold weather.

With a top speed of 160km/h and 200-litre hydrogen storage tank, which gives it a driving range of close to 700km, the Kia Borrego FCEV clearly demonstrates that we are finally inching towards the fuel cell automotive future.

‘Entering this new phase of our program is really exciting. Now we will be able to build fuel cell electric vehicles in higher volumes and lower cost for fleet testing, and the latest Borrego FCEV drives us closer to making fuel cell vehicles available for consumers,’ said Dr Hyun Soon Lee, president of research and development for the Hyundai-Kia Automotive Group.

Read full story

Suzuki Hayabusa, Intruder M1800R launched in India at Rs 12.5 lakh

The legendary Suzuki Hayabusa is now available in India, but at a massive Rs 12.5 lakh

Suzuki has launched two bikes from its international lineup in India – the Hayabusa sportsbike and the Intruder M1800R cruiser – both of which carry a price tag of Rs 12.5 lakh, ex-showroom Delhi.

One of the world’s fastest production motorcycles, the Hayabusa is fitted with a 1,340cc four-cylinder engine that produces around 180bhp, and propels the bike to a top speed of around 300km/h. The Intruder M1800R is a more relaxed machine and is fitted with a 1,783cc v-twin engine. Both bikes will be available at Suzuki dealerships in Delhi, Bangalore, Hyderabad, Chennai, Pune, Mumbai and Ahmedabad.

Apart from the new bikes being launched, which is part of Suzuki’s strategy to increase its presence in the big bikes segment in India over the next few months, the Japanese company is also said to be considering the possibility of buying out the stake of its Indian partner.

Suzuki Motor Corp. (SMC) currently holds 74% of its two-wheeler venture in India, Suzuki Motorcycle India Pvt. Ltd. (SMIPL), with the remaining being held by Satya Sheel and his family. Sheel is the managing director of SMIPL, and according to some reports in the media, his stake in SMIPL may either be drastically reduced or bought out entirely by SMC.

Read full story

Indian automotive industry unhappy with import restrictions on components

The Indian automobile industry, which seems to be facing some rough weather these days, has expressed its unhappiness with the government's recent decision to impose restrictions on the import of some critical components. ‘Policies like this clog the growth of the industry. It is like returning to the days of licence-raj,’ said one spokesperson from General Motors India.

The Indian government recently imposed import restrictions on certain steel items and automobile components that are deemed ‘critical’ by the automotive industry. Automobile transmission shafts, hot-rolled coils and some other iron components have been put under the 'restricted' list.

‘We are completely taken by surprise. We don't know the exact reason behind such a move. We are not sure if there has been a surge in import of such critical auto components,’ says Dilip Chenoy, Director General, SIAM, who adds that the automobile industry was not consulted on the matter at all.

According to Chenoy, the government’s decision will have a negative impact, will increase manufacturing costs and finally, make the end product more expensive for consumers.

Read full story

IndusInd Bank to provide finance to TVS dealers

IndusInd Bank has tied up with TVS Motor Company for providing finance to the latter’s dealers. ‘While this tie-up will help the bank to escalate its realm of trade, it will enable TVS Motor Company to beef up its backward integration programme,’ says a press release from the two companies. ‘Our dealers will have access to ready finance from IndusInd Bank, to meet their working capital requirements,’ said H S Goindi, President – Marketing, TVS Motor Co.

The tie-up will also include other avenues of cooperation, including the provision of consumer finance for TVS two-wheelers. ‘There is an increased need for financing in this sector, and now is the time to demonstrate our support. The dealer financing model fits well with financing of the manufacturer and the consumer segment,’ says Ramesh Ganesan, Head - Transaction Banking, IndusInd Bank.

Read full story

Porsche Cayenne to get diesel power by February 2009

The Porsche Cayenne Diesel will be launched in February next year, but only in Europe

A few years ago, when the Cayenne was launched, Porsche purists had a hard time accepting the fact that ‘their’ company would actually build a big, heavy SUV. And now, those purists will have to contend with Porsche actually building a diesel-powered vehicle.

Yes indeed, Porsche has announced that it will be launching the diesel-powered Cayenne in February 2009. Likely incentives of Porsche, for building the diesel Cayenne, would be the significant tax benefits being offered for diesels in Europe, and Porsche’s stake in Volkswagen, which already possesses cutting-edge diesel engine know-how.

The first ever Porsche oil-burner will be powered by a 3.0-litre, 240bhp turbodiesel V6, which would be sourced from Audi (which, of course, is owned by the VW Group). With its mileage of around 11km/l, relatively low emissions and high torque characteristics, this diesel engine has been deemed a suitable fit for the Porsche Cayenne.

To start with, the Cayenne Diesel will only be launched in Europe, so Indian buyers hoping to get their hands on a diesel-powered Porsche will have to wait some more…

Read full story

DCAAI meeting next month, Indian auto components industry could soon get some help

Let us, for a minute, consider the numbers. Last month, commercial vehicle sales in India were down by 35 percent, to 28,027 units. Sales of passenger cars were down nine percent, to 126,000 units. Two-wheeler sales were down 14 percent, to 678,000 units and three-wheeler-sales declined seven percent, to 33,034 units. For auto components, domestic sales were down 15 percent and exports declined by a massive 40 percent.

So, clearly, the automotive industry in the country seems to be in a bit of a mess. ACMA had, recently, requested a temporary bridge policy to tide over difficult times and at long last, the government could now be considering proving some sops to the floundering auto industry.

These ‘sops’ could, among others, include a cut in excise and customs duties and soft loans for small- and medium-scale components manufacturers. These issues will be discussed at length at the Development Council for Automobile and Allied Industries (DCAAI) meeting, which is scheduled to take place next month. The meeting will be attended by senior officials from the heavy industries ministry, finance ministry, planning commission, heads of auto companies and representatives from industry associations like SIAM and ACMA.

Stay tuned for more updates on this front.

Read full story

Caparo-Hyundai luxury bus project put on hold

The Caparo Group, which had signed an agreement with Hyundai last year to manufacture luxury buses in India, is said to have put the project on the backburner for now. The project, which was to entail a total investment of Rs 500 crore, with Rs 140 crore being put up in the first phase, may now either be scaled down or postponed for an indefinite period of time.

Production of the Caparo-Hyundai luxury buses was supposed to start by early-2009, and the plan was to produce high-tech, high-speed buses with fuel-efficient, emissions compliant engines and a host of passenger safety features, with technology being supplied by Hyundai. However, until the Indian economy picks up pace once more, these buses are likely to remain on the drawing board…

Read full story

Anand Automotive beats recession in style, will invest Rs 600 crore towards new plants

Automotive components manufacturer, Anand Automotive Systems is steaming ahead with its growth plans, regardless of the current economic scenario. When others are talking about cutbacks and layoffs, Anand Automotive has announced its plans to invest Rs 600 crore, which will go towards setting up 13 new plants across the country by the year 2010.

The Anand Group currently comprises of 18 companies, which have a total of 44 manufacturing facilities across India. Exports account for around 20% of the Anand Automotive’s annual revenues and the company is now looking at exploring new markets in Southeast Asia and South America, to further boost revenues.

With adequate internal resources, the company is confident it can grow even in the current scenario. Most expansion activities will be funded via internal accruals, and the company’s senior management believes that the current setbacks facing the Indian automotive industry are only temporary, and will pass with time.

Apart from its overseas customers, the Anand Group’s clients include the likes of Maruti Suzuki, Yamaha, Honda, M&M, Tata Motors, TVS and Bajaj Auto.

Read full story