BMW helps out with SmartSenior project

Soon, BMW cars may be the safest option for senior citizens

The Federal Ministry of Education and Research in Germany has recently launched a research project titled SmartSenior, which is all about developing intelligent services for senior citizens, to make life easier and safer for them. Among the areas the initiative focuses on are intelligent, location-independent emergency recognition and assistance systems which allow senior citizens to feel safe and secure on the road.

BMW is now involved in the SmartSenior initiative through the development of an Emergency Stop Assistant, which enhances road safety in the event of a medical emergency. To this end, the engineers have set out to develop an assistance system which automatically activates an autonomous driving mode when it detects that the driver has a serious medical problem, and carries out a controlled emergency stop.

In simple terms, in the event of a medical emergency, the car automatically switches on its hazard warning lights and manoeuvres carefully – taking into account the traffic around it – to the outer edge of the road, before drawing to a standstill. At the same time, an emergency call is sent out containing the data required to initiate the necessary medical and traffic-related assistance measures. This enables the provision of effective emergency care tailored to the situation at hand. ‘In order to keep a limit on the variety of possible driving situations, which vary infinitely in complexity, we are developing the prototype of our Emergency Stop Assistant initially for use on motorways and sections of roads resembling motorways,’ explains a BMW spokesperson.

BMW’s emergency stop assistance system is based both on sensors designed to monitor vital data and on existing BMW ConnectedDrive assistance systems. The BMW Group has, for example, offered an emergency call function for ten years now. In addition to precise position location and information on the vehicle, since 2007, the emergency call has also included information on the accident the vehicle has been involved in. The rescue services are therefore not only able to pinpoint where the vehicle is located and to identify it by model and colour, they also have information on the number of occupants in the vehicle and the severity of any injuries.

Ford to sign MoU with TN Govt., will invest Rs 2,000 crore

Ford is now all set to sign a memorandum of understanding with the Tamil Nadu state government, which would lead to US$400 million being invested in the state. Ford will set up a new manufacturing facility where it will produce its new small car for India. The plant will have an initial capacity to produce 100,000 cars and up to 250,000 engines per annum.

With this fresh investment, Ford’s total investments in India will go up to more than US$875 million. The company is committed to using its India operations as one of its strategic production hubs for small cars, which would be exported to Ford’s various markets worldwide.

Ford’s small car for India is expected to be positioned against vehicles like the Maruti Wagon R, Hyundai Santro and Chevy Spark and will be priced at below Rs four lakh. Ford does not currently have such a car in its international line-up and the new hatchback will be specifically engineered for India.

No entry tax for Toyota in Karnataka, small car project saves Rs 80 crore

Toyota, which plans to launch its first small car in India by end-2010, just got a gift from the State of Karnataka, which has granted an exemption to the Japanese car manufacturer from paying entry tax on equipment brought into the State over the next three years.

Not having to pay the 2% entry tax and cess will mean a savings of around Rs 80 crore for Toyota. Now, as part of its ongoing expansion activity in India, the company will set up a new assembly line for its small car at an investment of about Rs 3,200 crore. Starting next year, Toyota aims to produce 70,000 units of its compact car in India every year.

Toyota’s compact car is expected to compete against the likes of the Hyundai i20, Fiat Grande Punto, Honda Jazz and Skoda Fabia and will be priced at more than Rs six lakh. According to some reports in the media, the Toyota will start production of its small car with 65% local content, which will be increased over a period of time.

Volvo seeks to stop the noise…

Let's just keep it down to a bellow...

Volvo is currently working on controlling and reducing the noise levels inside its commercial vehicles. This, according to the Swedish company, is not driven by legislation. Instead, Volvo is taking this initiative on its own in order to boost safety and driver comfort.

‘The legal limit for noise in the work place in Sweden is 85dB and we are already down to 70dB inside the cab. It’s a question of comfort and, even more importantly, safety. Low, monotonous sounds are known to reduce brain activity. The driver gets tired and, eventually, risks falling asleep,’ says Kaj Bodlund, a technology specialist working with product development on Volvo Trucks.

The noise made by on-board systems can also be disturbing, especially when drivers are trying to sleep or rest. Excessive noise from heaters, fans, air conditioning systems or refrigerators could prevent the driver from sleeping soundly. Drivers who are prevented from sleeping well are seldom the safest or most efficient on the road.

At Volvo Trucks’ sound lab at in Gothenburg, Sweden, noise level tests are carried out using simulations, where a computer registers and measures the decibel levels. In-cab noise is measured using an artificial head with microphones in its ears. The measurements are extremely accurate and very realistic. Real tests are then performed on prototype trucks at Volvo Trucks’ proving ground outside Gothenburg.

‘We started using simulations and artificial heads in the 1990s. Now we can carry out more tests in less time and obtain more detailed data. In addition to decibels, we can also measure frequencies and several other aspects of the noise,’ Bodlund. Of course, things have moved on quite a bit since Volvo started working on noise reduction in the 1990s. Back in the early 1990s, in-cab noise levels of 74–75dB were not uncommon, but today, they are down to a far more tolerable 70dB.

According to Volvo, a major breakthrough in noise research was made in 1993 with the introduction of the new FH range of Volvo trucks. The new, slim, aerodynamic cab was not only better from the point of view of fuel-efficiency, but also considerably reduced wind noise. The air-tight sealing of the cab also reduced noise from the engine and the road.

The next significant development for in-cab noise came in 2002. The Globetrotter cab was further improved by the addition of insulation between the sheet metal and the trim panel. This reduced condensation between the cab wall and the trim panels and improved temperature control inside the cab, as well as making a considerable difference to sound-proofing quality.

Over the years, the noise curve has progressed continuously downwards. At some point, it will begin to even out. ‘We realise that there will come a point at which we can’t reduce the general noise levels any more, but there is plenty more work to do on more specific noise sources that may also impact the overall driving experience. Squeaking, creaking or scratching sounds can be equally unpleasant for the driver,’ explains Christina Keulemans, who works at the Volvo R&D sound lab. ‘Our work is continuous and we still have a great deal left to do. Every time a design parameter is altered or a new product is developed, we have to analyse the way in which the change might affect the noise level,’ she adds.

Noisy Facts: The five factors that affect noise levels

1. Mass: A heavy component is less noisy (but of course heavy trucks consume more fuel).

2. Insulation: The cab, the engine and many vibrating components can be insulated with sound-proofing materials in order to keep noise to a minimum.

3. Materials: Light metals such as aluminium may reinforce noise, while heavy metals or rubber tend to dampen noise.

4. Damping materials: If parts and components made of sheet metal are covered with damping materials, they generate less noise.

5. Aerodynamics: Wind noise is one of the worst noise offenders. An aerodynamically-optimised cab is both less noisy and more fuel efficient.

Fiat produces its 10 millionth vehicle in Brazil

Fiat, which sold 60,628 vehicles in Brazil during May this year, is now the no.1 car manufacturer in that South American country

Fiat has just produced its 10 millionth car in Brazil and is now the no.1 car manufacturer in that country, ahead of Volkswagen and General Motors. Fiat, which has been building cars and LCVs in Brazil since 1976, today produces 15 different models (and dozens of variants thereof) in that country.

With a daily production of 3,000 units per day, Fiat sold 60,628 vehicles in Brazil during May this year, which represents a 25.5% market share in the South American country. Fiat is now said to be working on a very low cost car which it is expected to launch in South America and Asia – including India – sometime in 2011.

GMI launches Spark LPG, aims for 10% market share in 2010

The new Chevy Spark LPG. Prices start at Rs 3.52 lakh...

General Motors India (GMI) has launched an LPG-compatible variant of the Chevrolet Spark hatchback, which comes with a factory-fitted sequential injection-type LPG kit. This kit is supposed to be technologically superior to most aftermarket LPG kits currently available in India. The Spark LPG can run on petrol or LPG and the driver can switch between the two fuels while the car is running. With the base model being priced at Rs 3.52 lakh (ex-showroom Delhi), the car comes with a three-year/100,000km warranty.

According to General Motors, which already has two manufacturing facilities in India (at Halol in Gujarat and Talegaon in Maharashtra), the country is a very important market for the company and GM hopes to achieve a double-digit market share by 2010. This year, GM plans to launch the Cruze luxury sedan and a new hatchback in India and by next year, it also hopes to increase exports activity from its manufacturing facilities here.

GM India logged a 9.5% increase in sales last year, selling a total of 65,702 vehicles in the country. This figure represents a mere 3.5% market share, though GMI is confident that it will be able to achieve a market share of around 10% by end-2010. Apart from the Chevy Spark, which has been reasonably successful in India, GMI’s two other hatchbacks – the SRV and U-VA – haven’t done very well and may even be axed from the company’s line-up by the end of this year. GM’s new hatchback, which is far more contemporary and which is likely to be much more suited to Indian tastes, is expected to be far more successful than the SRV or the U-VA.

GM Reinvention: The Spoof

A spoof of the GM Reinvention ad, this video pokes fun at the 'New GM.' Not to be taken too seriously, of course... ;-)) And you can watch the original GM Reinvention video on YouTube here

Maruti Suzuki plans ELV, BS IV-compliance for full range

Maruti Suzuki is committed to going green...

On occasion of the World Environment Day, Maruti Suzuki has reaffirmed its commitment to further increasing its focus on introducing ‘green technologies’ in its cars and manufacturing processes. ‘In terms of future technology that is still to come to India, newly launched Maruti Suzuki models A-star and Ritz meet the End of Life [ELV] norms that are yet to be adopted in India. Progressively, we will make all Maruti Suzuki models ELV compliant by 2010,’ says Shinzo Nakanishi, Managing Director and CEO, Maruti Suzuki India Ltd.

Compliance with Euro-spec ELV norms means the A-star and Ritz use ecologically harmful substances (such as Chromium, Cadmium, Mercury and Lead) only within the permissible limits as per European standards, thus ensuring recyclability of materials. In fact, with the Ritz launch in May this year, Maruti Suzuki became the first car company in India to launch a car that conforms to BS IV emission norms, which will actually come into effect only in April 2010. The company is now working on making all its cars BS IV compliant, which will happen over the next few months.

Maruti Suzuki’s R&D department is also currently working on a road map for CNG vehicles. ‘Our initiatives for non-conventional clean fuel will take a step further in the coming times with factory fitted CNG options on several models,’ says Nakanishi. Maruti also offers various LPG variants in its line-up, including LPG versions of the 800, Omni and Wagon R.

340bhp Audi TT RS waiting in the wings

The new Audi TT RS should be simply awesome to drive...

Audi is working on a new variant of its two-door coupe/convertible, the TT. Called the Audi TT RS, the car will be powered by a 2.5-litre turbocharged five-cylinder petrol engine that produces 340 horsepower and 450Nm of torque. The TT RS will also get Audi’s Quattro all-wheel-drive and an extremely lightweight body made of aluminium, constructed as per the ‘Audi Space Frame’ principle.

The TT RS Coupé will be able to go from zero to 100km/h in 4.6 seconds and hit a top speed of 250km/h. And if you aren’t happy with that (and if you’re also not worried about being jailed for speeding…), Audi can also officially de-restrict the car for a top speed of 280km/h.

Audi is likely to launch the TT RS in India by mid-2010, so be prepared to trade in your Porsche, Mercedes-Benz or BMW by that time…

Volkswagen Amarok: Powerful and robust as a… Wolf?!

The new VW Amarok will first be launched in South America, in early-2010

The Volkswagen pick-up truck concept, which was first seen in 2008, finally has a name – Amarok – which means ‘Wolf’ in the language of the Inuit, an Eskimo people who live in northern Canada and Greenland. ‘This name fits the characteristics of our pickup perfectly, which will set new standards in its class. We took great care in selecting this name, which can be used globally and is meant to invoke positive associations in all relevant international markets. The Amarok is a powerful and robust vehicle with great stamina – just like the wolf,’ says Stephan Schaller, CEO, Volkswagen Commercial Vehicles.

The VW Amarok will initially be launched as a 4WD double-cab pick-up in 2010, while a single-cab version will be introduced later. The Amarok will be powered by VW’s range of common-rail turbodiesel engines, which are expected to be quite fuel efficient and fully compliant with the latest emissions norms.

The VW Amarok will be produced at Volkswagen’s plant near Buenos Aires in Argentina and will be launched first in South America in early 2010, followed by Central America, Russia, Europe, Africa and Australia. Prices are likely to be announced by January 2010.

Infiniti G37 could come to India in 2010 as a CBU import

The new Infiniti G37 could come to India as a CBU in 2010

Nissan, which will start building cars in India at its upcoming plant near Chennai by mid-2010, is also said to be evaluating the possibility of bringing in some cars from its luxury brand – Infiniti – as CBU imports. Nissan’s CBU imports program for the Infiniti brand could kick off next year and one of the first Infiniti cars to come to India could be the new G37 sports coupe-convertible.

European specs for the new G37 have just been released and on paper at least, the Infiniti seems quite up to the task of taking on similar sports coupe/convertibles from Porsche, Mercedes-Benz and BMW, which are already on sale in India. Like the Mercedes-Benz SL, the Infiniti G37 has a folding metal roof which allows the car to be used as a coupe or convertible – an absolute must, given India’s hot, dusty climes.

The rear-wheel-drive Infiniti G37 is powered by a 3.7-litre petrol V6, which produces 320bhp, which pushes the car from zero to 100km/h in 6.2 seconds and on to an electronically limited top speed of 250km/h. The car benefits from bits like 19-inch alloy wheels, leather seats, active cornering Bi-Xenon headlamps, LED taillamps, dual-zone adaptive climate control with automatic air recirculation, heated and electrically adjustable front seats, high-spec navigation and entertainment system and even self-healing ‘Scratch Shield’ paint!

While the G37’s prices are yet to be announced, we’re reasonably sure the car would cost as much as a three-bedroom apartment in Mumbai suburbs. Still, if Nissan chooses to bring this car to India, there should be no dearth of takers for the Infiniti.

TKM launches Corolla Altis Sport LE

The limited edition Toyota Corolla Altis Sport

Toyota Kirloskar Motor Pvt. Ltd. (TKM) has now introduced a new variant of the Corolla Altis – the limited edition Corolla Altis Sport – which is targeted at young, affluent car enthusiasts. The car remains unchanged mechanically but gets minor cosmetic enhancements like skirts, spoilers, redesigned bumpers and spruced-up interiors. Only 300 units of the Altis Sport will be made, each being priced at Rs 11.35 lakh, ex-showroom Delhi.

Nissan to move ahead with car, LCV plans in India, despite Renault holding back

Apart from cars like the Teana, 370Z and Micra, Nissan may also build its light commercial vehicles - like this NV2500 - for export markets

Japanese carmaker Nissan has reiterated that its partner Renault's decision – to put further investment in India on hold until the situation improves – will not affect Nissan’s plans to start manufacturing cars and LCVs in the country. Renault Nissan Automotive India, a 50:50 JV between Renault and Nissan, still aims to complete work on its plant at Oragadam, near Chennai, by mid-2010. This facility is being set up at an investment of Rs 4,500 crore.

A significant part of the US$3.6 billion that Nissan plans to invest globally this year is expected to come to India. However, in Renault’s absence (at least for the time being), Nissan now aims to manufacture only around 200,000 units per annum in India, instead of the 400,000 units originally planned. Of course, it’s not just India – Nissan has scaled down its global sales targets to 54 million units this year, down from the 68 million units it sold worldwide last year.

In India, Nissan will manufacture vehicles like the Teana, X-Trail, 370Z and an all-new small hatchback which will replace the company’s bestselling March/Micra model. Nissan is also in talks with its commercial vehicles JV partner Ashok Leyland, and the two companies are exploring the possibility of also building LCVs at Nissan’s plant at Oragadam. If these plans are finalised, the two companies will start making light trucks – for the domestic as well as export markets – from mid-2011 onwards.

Nissan’s LCV project in India, with Ashok Leyland, has run into some trouble since ALL wants to scale back on the Rs 2,000 crore investments that had been planned earlier. Renault-Nissan’s partnership with Bajaj Auto, for launching a low-cost car, also seems to be facing some uncertainty and depending on whether or not certain issues pertaining to the car’s design and positioning are resolved, Bajaj Auto may even choose to exit the partnership and build the low-cost car on its own, or in partnership with Austrian company KTM.

Peugeot to return to India in 2010, may set up plant near Hyderabad or Chennai

Peugeot's small cars could possibly be a good bet for the Indian market...

According to reports in the media, French carmaker Peugeot is looking at starting operations in India in the near future and is scouting around for land, where it can set up its manufacturing plant in the country. One of the options being considered by Peugeot is Hyderabad – the Andhra government is said to have offered around 800 acres of land to Peugeot.

Peugeot, which could bring in various cars from the PSA Peugeot Citroen line-up to India, could invest as much as Rs 1,500 crore towards setting up a manufacturing facility in the country, which could be somewhere near Hyderabad or Chennai, though other locations cannot be completely ruled out at this stage.

It’s interesting to note that Peugeot first came to India in 1994, via a tie-up with Premier Automobiles Ltd. The joint-venture company, PAL-Peugeot Ltd., launched the Peugeot 309 sedan in India in 1995. This car did reasonably well initially, despite being an old, outdated product. However, due to labour problems at PAL-Peugeot’s plant in Kalyan (near Mumbai) in 1996, production was stopped for some time. Peugeot suffered heavy losses in all of this and by 1997, the French company already decided to leave the Indian market.

How Peugeot’s second innings in India plays out remains to be seen. The other French car manufacturer, Renault is not too happy with the sales performance of the Logan, which is made and sold in India in collaboration with M&M. In fact, Renault is now going slow on further investments in India. Whether Peugeot can do better than Renault is, at this stage at least, anybody’s guess.

Mitsubishi i-MiEV goes into production in Japan

The Mitsubishi i-MiEV, the first production electric car in Japan!

The Mitsubishi i-MiEV – the first full scale production electric car from a mainstream Japanese car manufacturer – is now being manufactured at Mitsubishi’s facility in Okayama, Japan. Mitsubishi plans to make around 2,000 units of the i-MiEV this year and increase it to 5,000 units in 2010.

Initially, Mitsubishi will only supply the i-MiEV to fleet customers and retail sales will only start later this year. Powered by lithium-ion batteries (produced by a joint venture between Mitsubishi and GS Yuasa), the i-MiEV has a range of about 160km on a full charge and top speed is 130km/h. The car costs the equivalent of Rs 15 lakh in Japan, which seems quite a lot of money for a small, four-seater family hatchback.

A driving impression of the Mitsubishi i-MiEV

Audi Q5 launched in India, prices start at Rs 38 lakh

The Audi Q5 is available with 2.0-litre petrol and 3.0-litre diesel engines

Audi has launched the much-awaited Q5 sports-utility vehicle in India. Engine options available are 2.0-litre TFSI petrol and 3.0-litre TDI diesel, which are priced at Rs 38.29 lakh and Rs 44.19 lakh respectively. Both versions come with Audi’s famous ‘Quattro’ all-wheel-drive and colours available include blue, red, silver, grey, black and white.

The Q5 will now be at Audi dealerships across the country, in Delhi, Gurgaon, Chandigarh, Ludhiana, Mumbai, Pune, Ahmedabad, Bangalore, Hyderabad, Chennai and Kochi. Audi expects to sell about 100 units of the Q5 this year.

The German carmaker, which also sells the A4, A6 and A8 sedans, the Q7 SUV and the TT and R8 sportscars in India, expects to sell a total of around 1,500 units in the country by end-2009, up from the 1,050 units it sold last year. Audi has, in fact, already sold more than 600 cars in India during the first five months of 2009.

A road test video of the Audi Q5

Hyundai launches Verna Transform in Korea, India launch may follow by end-2009

The new Hyundai Verna Transform could come to India by end-2009

Hyundai has launched a revised version of the Verna (sold as the Accent in some markets) in the Korean market. Called the Verna Transform, the new variant is scheduled to go on sale in Korea later this month and it’s widely expected that Hyundai will also launch this facelifted version in various other markets – including India – by the end of this year.

The Verna Transform features a few styling updates to the exterior, which are supposed to make the car look more ‘aggressive.’ We think the new headlamps, front grille and bumper look just about okay, if a bit over-the-top for a mild-mannered family sedan. When the car comes to India later this year, it should be available with the existing range of petrol and common-rail diesel engines and we don’t think HMIL will raise prices by more than 3-5%, if at all.

US car owners getting more tech-savvy, want entertainment, connectivity in their cars

Here's the list of technologies that US buyers want in their cars!

According to the J.D. Power and Associates 2009 US Automotive Emerging Technologies Study released today, consumers who plan to purchase a vehicle in the near future select entertainment- and connectivity-related features as their most desired technologies in their new car. The study is designed to measure consumer familiarity, interest and purchase intent for emerging automotive technologies, both before and after an estimated market price is revealed.

The study finds that among consumers who plan to purchase a new vehicle within the next six months, interest levels are high for select entertainment- and connectivity-related features. For example, premium surround sound garners the highest interest rate among these near-term vehicle intenders (72%), while just 61% of consumers who plan on purchasing a new vehicle in two years or more indicate interest in this feature.

‘Consumers nearing the final phase of the vehicle purchase process are often more well-versed on vehicle options and features than those in the early stages of shopping and likely have recently researched available vehicle specifications,’ said Mike Marshall, director of automotive emerging technologies at J.D. Power and Associates. ‘The increased familiarity of the possible benefits and conveniences of these technologies may lead to an increase in interest.’

The study also finds that consumer interest in a navigation system is at 67% prior to the average market price being revealed, but falls to just 20% after the market price of $1,600 is known. However, among owners of premium vehicles, interest after the price is revealed is 45%.

Among those consumers who expressed interest in a navigation system, just one-third say they are interested in the lower-cost alternative of an off-board navigation system, which enables the driver to provide an address to a live operator and receive text or audible directions without a full-screen map integrated into a display within the vehicle.

‘While the factory-installed options are considerably more expensive than an off-board navigation system, the price difference is not reflected in a proportionate decrease in consumer interest levels,’ said Marshall. ‘Among consumers who express interest in both types of navigation system, seven out of ten indicate they would choose a factory-installed navigation system rather than an off-board version, despite the cost premium.’

The study also finds the following entertainment and connectivity patterns:

1. Among consumers who listen to their portable digital music player in their vehicle, more than one-half use an auxiliary input jack, while approximately 20% use a wireless FM transmitter.

2. Nearly two-thirds of consumers indicate that they would like the ability to listen to a portable digital music player through their vehicle’s speakers, while 27% express a desire to use a smartphone’s music capabilities in conjunction with their vehicle’s audio system.

3. Among consumers currently utilizing their vehicle’s Bluetooth functionality, initial interest for a wireless connectivity system in their vehicle is 68%, compared with just 47% among those who have this feature but do not utilize this technology in their vehicle.

The 2009 U.S. Automotive Emerging Technologies Study, fielded in April 2009, is based on responses from 19,249 US consumers. Visit the J.D. Power and Associates website here

BMW unleashes M3 Coupé Edition

The 2009 BMW M3 Coupe Edition

As most car enthusiasts will agree, the BMW M3 has always been one of the hottest sports coupes in the world. Lightweight, powerful and deeply involving to drive, the M3 has always been a bit special and for 2009, BMW is stepping things up even further with the launch of the new M3 Coupe Edition.

The 2009 BMW M3 Coupe Edition rides 10mm lower than the standard M3 and features a dark chrome shadow-coloured kidney grille, side vents, bonnet vents and twin exhaust tailpipe. Black wing mirrors, 19-inch double-spoke light-alloy wheels in silver alloy (black gloss finish is optional) and high-gloss ‘Shadowline’ exterior trim help distinguish the new model from other BMW M3 variants. The car is available in three new colours – Alpine White, Dakar Yellow and Monte Carlo Blue.

Of course, with BMW M3s, the engine is where the action is and with the M3 Coupé Edition, things are pretty torrid in that department. The car’s 4.0-litre V8 produces 420 horsepower and 400Nm of torque, which is enough to propel the little Beemer from zero to 100km/h in just 4.8 seconds and on to an electronically limited top speed of 250km/h. All that performance doesn’t come cheap – the car costs the equivalent of about Rs 41 lakh. In India, with import duties, this could easily go up to Rs 80 lakh or more. Still interested? Start talking to your friendly neighbourhood BMW dealer now…

Going could get tough for GM India, new cars may be delayed

From left: GMI's new cars, the Cruze luxury sedan and the new hatchback (called Spark in some markets, will be renamed for India...) might be delayed by a few months

While General Motors says its Indian arm is insulated from the effects of the parent company going bankrupt, that might not turn out to be the case after all. General Motors India (GMI) is, in fact, already said to be facing some trouble with funding for its new engine manufacturing plant at Talegaon.

GMI needs to invest about US$200 million in this engine manufacturing facility but the money may be hard to come by. After GM filed for bankruptcy in the US, financial institutions in India are wary of bankrolling GMI’s investments. And since the New GM mandates that its foreign subsidiaries must now fund their own growth, there will be no help forthcoming from GMI’s parent company.

GM India, while moderately profitable, isn’t in a position to invest huge sums of money towards capacity expansion and/or setting up new plants. The company, which sold around 70,000 cars in 2008, has a five-percent market share in India and was looking at soon launching new cars like the Cruze luxury sedan and a new hatchback that would compete against the likes of the Hyundai i20, Honda Jazz, Fiat Grande Punto and Skoda Fabia. Now, however, the launch of these cars might possibly be delayed by a few months.

US Court approves sale of Chrysler LLC operations to new company formed with Fiat

Chrysler LLC has announced that the US Bankruptcy Court, Southern District of New York, has approved its request to sell all of its operations to Chrysler Group LLC, the new company formed in alliance with Fiat SpA. ‘With this approval, the new Chrysler Group is created and can prepare to launch as a vibrant new company formed with Fiat,’ said Robert L Nardelli, Chairman and Chief Executive Officer of Chrysler LLC. Chrysler’s Mexican, Canadian and other international operations will also be acquired by Chrysler Group LLC.

‘While this has been an extremely difficult chapter in Chrysler’s history for all involved, the new company and its customers, employees and suppliers can now begin on a fresh page,’ said Nardelli. According to Chrysler, its alliance with Fiat will provide the Chrysler Group with access to products that complement the company’s current portfolio, technology cooperation and stronger global distribution. Work with Fiat is already underway to develop the next generation of environmentally friendly and fuel-efficient vehicles.

‘We are very grateful to loyal Chrysler customers who have supported us throughout this process and assure them Chrysler Group is well prepared to produce and support quality vehicles under the Jeep, Dodge and Chrysler brands as well as parts under the Mopar brand,’ said Nardelli, who is due to resign from Chrysler shortly and who will return to Cerberus Capital Management LP as an advisor.

Chinese company Sichuan Tengzhong in talks with GM for buying Hummer brand

STHIM may have saved the Hummer brand for now, but it remains to be seen whether Hummer can stay relevant in an age when smaller, more fuel-efficient vehicles are becoming more popular in the US and elsewhere

Chinese company, Sichuan Tengzhong Heavy Industrial Machinery Co. Ltd. (STHIM) is in talks with the now bankrupt General Motors Corp., for buying the Hummer brand. STHIM, a major industrial machinery group based in China, will acquire the rights to the off-road Hummer brand, along with a senior management and operational team. It will also assume existing dealer agreements relating to Hummer’s dealership network.

It is expected that Tengzhong will, as part of the transaction, enter into a long-term contract assembly and key component and material supply agreement with GM. The final terms of the deal are subject to final negotiations.

Based in the Chinese province of Sichuan, Tengzhong is a privately-owned company and a leading domestic manufacturer of road, construction and energy industry equipment. It will expand into the off-road vehicle segment through what will be a strategic acquisition for Tengzhong and a catalyst for Hummer’s growth in the US and elsewhere in the world.

‘The Hummer brand is synonymous with adventure, freedom and exhilaration, and we plan to continue that heritage by investing in the business, allowing Hummer to innovate and grow in exciting new ways under the leadership and continuity of its current management team," said Yang Yi, CEO of Tengzhong. ‘We will be investing in the Hummer brand and its research and development capabilities, which will allow Hummer to better meet demand for new products such as more fuel-efficient vehicles in the US,’ he added.

Hummer will continue to maintain its headquarters and operations in the US and will continue to be managed by its existing leadership team. The team intends to expand Hummer’s dealer network worldwide, particularly into new and underserved markets such as China.

The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals. Financial terms of the agreement have not been disclosed at this time. Credit Suisse is acting as exclusive financial advisor and Shearman & Stearling is acting as international legal counsel to Tengzhong on this transaction. Citi is acting as financial advisor to GM.

Nissan inaugurates new plant in St. Petersburg, Russia

The Teana is one of the cars that will be produced at Nissan's new facility in Russia

Nissan’s new car manufacturing facility was inaugurated at St. Petersburg, in Russia, yesterday. Nissan President and CEO Carlos Ghosn was present at the occasion, along with Russian prime minister Vladimir Putin. Set up at an investment of about US$200 million, the new plant has an annual capacity of 50,000 units and the Teana sedan and X-Trail SUV are some of the Nissan cars that will be produced here.

‘This is Nissan's breakthrough in Russia. The opening of our plant in St. Petersburg in the current conditions underlines our confidence in the high potential of the Russian economy. With the start of production at our new plant Nissan become an integral part of the local community,’ said Ghosn.

For Nissan, Russia represents one of the key global markets, ranking number one in Europe and as number five globally. It also is an important part of Nissan and Renault-Nissan alliance strategy. Nissan, which always seeks for the opportunity to produce vehicles closer to the market to have more flexibility in adapting to the changing market demands and to use all the benefits of close-to-market production, is also setting up a manufacturing facility in India, which will be operational by 2010.

Employing 180,000 people worldwide, Nissan plans to design, produce and sell over three million passenger cars and commercial vehicles in more than 190 countries in fiscal year 2009.

Bajaj Auto reports 8% decline in sales in May 2009, Kawasaki Ninja 250R is still AWOL

While most other two-wheeler manufacturers reported an increase in sales in May this year, Bajaj Auto logged an 8.13% decline in sales during the month. The Pune-based company’s motorcycle sales during May this year stood at 165,049 units as against 179,649 units sold during May 2008.

Bajaj’s total two-wheeler sales during May this year stood at 165,697 units, as against 180,935 units during May last year. The company’s total sales (including three-wheelers) stood at 185,341 units during May 2009, as compared to 201,511 units during May last year. Exports went down from 60,215 units in May 2008 to 58,682 units during May this year.

Bajaj, which has already launched upgraded versions of its Pulsar 150 and 180 models, is expected to also launch a revamped version of the Pulsar 220 DTS-Fi later this month. However, there is no word on the launch of the Kawasaki Ninja 250R, which was earlier supposed to be launched during May 2009.

Toyota Camry Hybrid gets facelift in Thailand, may come to India by end-2009

The facelifted Toyota Camry Hybrid may come to India by end-2009

Toyota has given the Camry Hybrid a minor facelift and the new variant, which will be built in Thailand, is now ready to go on sale in that country. A few months down the line, Toyota is also expected to launch the Camry Hybrid in other countries in the ASEAN region, including India. Since India and Thailand have a free trade agreement (FTA), the Camry Hybrid may actually be quite reasonably priced if it’s launched in India.

Volvo, Vattenfall to co-develop plug-in hybrids

The first Volvo-Vattenfall to come out in 2012 will be a diesel-electric hybrid

Swedish carmaker Volvo and energy company Vattenfall have entered into an industrial joint venture partnership to develop plug-in hybrids, which they aim to bring to the market by 2012. Back in January 2007, the Volvo Car Corporation and Vattenfall had launched a joint project with the aim of testing and developing plug-in technology and now the two companies are taking their cooperation to the next level.

‘We are investing in an industrial joint venture to series-produce plug-in hybrid cars in Sweden in 2012, cars that can be powered by both electricity and diesel. This is an important business development for us and our partnership with Vattenfall allows us to take a giant step toward offering our customers cars with an even smaller environmental footprint,’ says Stephen Odell, President and CEO of the Volvo Car Corporation.

‘We want to reinforce electricity's importance in society and its key role in solving climate issues. Through this cooperation we hope to be able to speed up the introduction of electric cars. Together we are developing the next-generation technology based on plug-in cars and various charging alternatives,’ says Lars G Josefsson, President and CEO of Vattenfall.

The development of the cars is being carried out and financed jointly by the two companies. The Volvo Car Corporation will manufacture the cars and Vattenfall will develop charging systems and supply the cars with electricity. The Volvo-Vattenfall plug-in hybrid cars will be driven by a powerful electric motor fuelled by a lithium-ion battery, which would take about five hours for a full charge. ‘Most car journeys are short trips, for instance to and from work. We will be able to offer a product that fulfils this transportation need. In order to cover longer distances as well, the car will also be equipped with one of Volvo's fuel-efficient diesel engines,’ says Stephen Odell.

GM files for bankruptcy in the US, Indian ops to remain unaffected

"In the US, bankruptcy or Chapter 11 is used to make a brand stronger, to suit the changing business environment. Therefore, it will only make GM stronger," said P Balendran (VP - Corporate Affairs, GM India), speaking to the TOI

The company which reigned as the world’s biggest carmaker for more than seven decades, General Motors today filed for bankruptcy under Chapter 11 in the US, with a reported $82.29 billion in assets and $172.81 billion in debts. The aim now is to create a ‘New GM’ that will be leaner, greener, more efficient, profitable and which would have a product portfolio suited to the demands of an entirely new era.

Pending approvals, the New GM is expected to launch in about 60 to 90 days as a separate and independent company from the current GM, with two advantages: it will be built from only GM's best brands and operations, and it will be supported by a stronger balance sheet due to a significantly lower debt burden and operating cost structure than before.

The New GM will incorporate the terms of GM's recent agreements with the United Auto Workers (UAW) and Canadian Auto Workers (CAW) unions and will be led by GM's current management team. With regard to the company’s Indian operations, GMI officials say that there is no reason to panic and the bankruptcy filing would have no effect on GM’s business in India.

The funniest comment, however, came from P Balendran, VP - Corporate Affairs at GM India. ‘In the US, bankruptcy or Chapter 11 is used to make a brand stronger, to suit the changing business environment. Therefore, it will only make GM stronger,’ said Balendran. Hmm… if bankruptcy makes brands stronger, we suppose Honda and Toyota just might be studying the intricacies of Chapter 11 right now… :-D

M&M FES logs 43% hike in cumulate sales in May 2009

During May 2009, Mahindra & Mahindra’s farm equipment sector (FES) logged total sales (domestic + exports) of 13,500 units, as against 9,470 units sold during May last year – an increase of 43%. Exports during the month were 630 units, as against 645 units during May last year.

The company sold 12,870 tractors during May 2009, as against 8,825 units during May last year – an increase of 46%. M&M is now in the process of implementing new marketing strategy for its tractors, where it will position Swaraj-branded products from Punjab Tractors Ltd. (which M&M merged into itself last year) at the lower end of its portfolio, while M&M’s own tractors will be positioned at the higher end.

M&M and PTL tractors will be sold via separate sales channels and will not share dealer networks, though the company will explore all possible synergies in areas like sourcing of components, R&D and manufacturing.

TVS, Yamaha, Hero Honda, Suzuki register 5%-82% increase in sales during May 2009

TVS Motor Co. Ltd. has reported a 5.15% increase in its two-wheeler sales for May 2009, at 118,574 units, as against 112,770 units sold during May last year. TVS’ domestic motorcycle sales stood at 43,165 units in May this year, as against 41,901 units in May 2008. Exports, however, were down 21%, at 11,135 units during May 2009 as against 14,071 units in the year-ago period.

Yamaha kept the momentum going, with an 82.38% hike in sales during May. The company sold 16,952 units during May this year, as against 9,295 units during May last year.

The country’s no.1 two-wheeler manufacturer, Hero Honda logged an increase of 22.52% in sales during May 2009, at 382,678 units, as against 312,317 units sold during May 2008.

Suzuki also logged an increase in sales during May this year, at 12,734 units, as compared to 10,845 units sold during May 2008 – an increase of 17%.

Honda Jazz, Fiat Grande Punto prepare for battle

Honda Jazz vs Fiat Grande Punto - the battle is coming soon to your city!

The big(ger) hatchbacks segment in India looks all set to heat up in a big way over the coming weeks. The Hyundai i20 and Skoda Fabia, which are already slugging it out in that segment, will soon be joined by the Honda Jazz and Fiat Grande Punto. Honda Siel plans to launch the Jazz next week, while the Fiat Grande Punto will be launched during the third week of this month.

Powered by a 90bhp, 1.2-litre petrol engine, the Honda Jazz is expected to be priced at around Rs 6.50-7.00 lakh and it remains to be seen whether Indian buyers would be prepared to shell out that much for a hatchback. Honda, which has already started producing the car at its plant in Greater Noida, is confident it will be able to sell the Jazz on the basis of the Honda brand name as well as the car’s own considerable merits.

Honda Siel logged a 3.3% increase in sales in May this year, at 4,073 units (as against 3,943 units sold during May 2008), selling 3,638 units of the City, 223 units of the Civic and 212 units of the Accord. The company is confident that the Jazz will be able to further boost its sales by a fair margin and does not want to get into a price war with any other carmaker.

The Fiat Grande Punto, which will be launched in India a week after the Jazz, will come with 1.2-litre (and/or 1.6-litre) petrol and 1.3-litre common-rail diesel engine options. The car, which will be made at Fiat’s plant in Ranjangaon, near Pune, is likely to be priced nearer to the Rs 5.5-6.00 lakh mark, which might possibly make it a better value-for-money proposition than the Honda Jazz.

Who finally comes out on top in the premium hatchback segment remains to be seen, but we’re quite sure the Jazz vs Fabia vs i20 vs Grande Punto battle will be an incredibly interesting one!

Tata Motors registers 11% decline in domestic sales during May 2009

Despite newer cars being launched by other manufacturers, the Tata Indica Vista continues to hold its own in the Indian market

Tata Motors’ domestic sales for the month of May 2009 stood at 38,392 units, an 11% decline over 42,916 units sold in May last year. However, the company’s sales in May were 6% higher than the 36,257 units sold during April 2009.

Tata Motors’ total sales (including exports) stood at 40,196 units, a decline of 13% over the 46,339 units sold in May last year. Cumulative sales (including exports) for the company, at 77,714 units, declined by 8%, compared to 84,488 units sold last year.

Commercial Vehicles

The company’s sales of commercial vehicles in May 2009, in the domestic market, were 23,004 units – a 3% decline compared to the 23,682 vehicles sold in May last year. LCV sales were 14,380 units, a growth of 20% over May 2008, while M&HCV sales stood at 8,624 units, a decline of 27% over May 2008.

Cumulative sales of commercial vehicles in the domestic market for the fiscal were 45,851 units, a growth of 3% over last year. Cumulative M&HCV sales stood at 16,677 units, a decline of 27% over last year, while LCV sales for the fiscal were 29,174 units, a growth of 34% over last year.

Passenger Vehicles

Tata Motors’ passenger vehicle business reported a total sale and distribution offtake of 16,563 units (15,388 Tata + 1,175 Fiat) in the domestic market in May 2009, compared to 19,685 units (19,234 Tata + 451 Fiat) in May 2008, and 14,615 units (13,410 Tata + 1,205 Fiat) in April 2009.

The Indica range reported sales of 10,006 units, a growth of 3% over May 2008. The Indigo family recorded sales of 2,832 units, a 37.6% decline over May 2008. The UV range accounted for sales of 2,550 units, a decline of 49% compared to May 2008.

Cumulative sales and offtake distribution of passenger vehicles in the domestic market for the fiscal were 31,178 units (28,798 Tata + 2,380 Fiat), against 34,928 units (34,077 Tata + 851 Fiat) in the same period last year. Cumulative sales of the Indica range at 18,639 units, reported a growth of 9%. Cumulative sales of the Indigo family were 5,401 units, a 35% decline over the same period last year. Cumulative sales of the UV range were 4,758 units, a decline of 45%.

Exports

The company's sales from exports at 1,804 vehicles in May 2009 declined by 47% compared to 3,423 vehicles in May 2008. The cumulative sales from exports for the fiscal at 3,065 units declined by 46% over 5,728 units in the same period last year.

HMIL logs 8.36% hike in cumulative sales in May 2009

The Hyundai i10, with the 1.2-litre Kappa engine, continues to do well in India

Hyundai Motor India Ltd. (HMIL) saw a decline of 4.11% in domestic sales during May 2009, at 23,503 units, as against 24,510 units sold during May 2008. However, the company’s cumulative sales (including exports) during the month were up by 8.36%, at 43,628 units, as against 40,261 units in the year-ago period. HMIL exported 20,125 units during May this year, as against 15,751 units May last year – an increase of 27.77%.

HMIL sold 39,864 units of the Santro, Getz Prime and i10, 3,735 units of the Accent and Verna, 27 units of the Sonata Transform and two units of the Tucson during May this year.

Maruti Suzuki registers 15.75% sales growth in May 2009

The newly launched Maruti Suzuki Ritz has been very well received in the market and is selling well, though some say it will take sales away from Maruti's own Swift...

Maruti Suzuki sold a total of 79,872 vehicles during May 2009, as compared to 69,001 units during May last year – an increase of 15.75%. May was also the fifth consecutive month when the company logged sales of more than 70,000 cars. Maruti’s exports were up by a very significant 87% – the company exported 9,087 units during May this year, as compared to 4,858 units during May 2008. The increase in exports was primarily due to Maruti Suzuki’s new car, the A-Star, which is being sold in Europe as the new Alto.

Maruti’s cars in the A2 segment (Alto, Wagon R, Zen Estilo, Swift and A-Star) saw sales go up to 53,760 units during May 2009, as compared to 44,539 units in May 2008 – an increase of 20.70%. The company’s cars in the A3 segment (SX4 and DZire) saw a 14.06% hike in sales, at 6,782 units during May this year as against 5,946 units in the year-ago period. However, the Maruti 800’s sales came down from 6,830 units during May last year to 2,336 units during May 2009 – a decline of 65.8%.

M&M’s total sales declines 18.34% in May 2009

Mahindra & Mahindra has announced that its domestic sales for May 2009 stood at 16,581 units as against 19,296 units in May last year – a drop of 14%. During May this year, M&M sold 12,620 utility vehicles, 2,703 three-wheelers, 427 units of the Logan and 831 LCVs.

M&M’s total sales (including exports) stood at 16,866 vehicles in May 2009, as against 20,653 vehicles in May 2008 – a decline of 18.34%.