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Kia launched a brand new emblem and tagline this week |
Blissful New Yr! Snow on the bottom at DepEd Towers, although melting quick, and 2021 must be higher than The Yr Whose Quantity Ought to Not Be Repeated. Huh? So, with heavy coronary heart, I notice the most-read story on just-auto this week is just not excellent news about beleaguered Japanese automaker Nissan which is to make extra cuts in Europe. Studies recommend the struggling Japanese automaker will minimize its distribution operations in 30 nations worldwide, most of that are in japanese Europe, and can outsource these operations, in addition to some manufacturing operations, to its international alliance associate Renault. The corporate’s Avila plant in Spain may also stop manufacturing and as a substitute be transformed it right into a warehouse. These measures are seen as a continuation of the administration’s technique of returning the automaker to profitability and reversing the fast enlargement overseen by former chairman Carlos Ghosn. This consists of plans to chop international capability and fashions by 20% and slash annual working prices by JPY300m over the subsequent three years. Disgrace, I’ve at all times preferred the model, which I’ve recognized proper again to early Nineteen Sixties Datsun days (when Nissan was a separate model for a former Prince mannequin known as Gloria) and have even owned a Eighties mannequin, which was completely passable. Let’s hope all of the restructuring works. And we hold our UK plant now a tariff-free commerce take care of the EU has been struck.
Our in-depth interviews with key business innovators at all times go down a deal with with you lot and one this week was no exception. Innoviz Applied sciences develops and manufactures solid-state LiDAR (Mild Detection and Ranging) sensors and notion software program that allow the mass manufacturing of autonomous autos (AVs). The Israeli startup goes public in a US$1.4bn reverse merger with Collective Development. We caught up with Omer Keilaf, co-founder and CEO of Innoviz to study extra about its sensor applied sciences, funding plans and the way {the marketplace} for LiDAR is evolving.
A reminder, in 2021, we nonetheless goal to convey you the newest information and intelligence on the pace, nature and form of the automotive sector’s restoration from the COVID-19 pandemic. This commonly up to date article follows on from our COVID-19 each day replace article that lined quickly unfolding disaster developments and their speedy impression on autos (first printed 12 March 2020).
Following on from the EU free commerce deal, the UK is, and has been, busily sorting many others with nations outdoors the EU. Ford, unsurprisingly, has welcomed the inking of a free commerce deal between the UK and Turkey – a buying and selling relationship which is especially essential to its European gentle industrial autos (LCVs) enterprise as a result of Transits – the UK’s prime promoting gentle industrial car fashions – are made there. The UK and Turkey now have locked in tariff-free buying and selling preparations, which is able to help a buying and selling relationship price GBP18.6bn in 2019. The UK authorities says the settlement lays the groundwork for a extra bold UK Turkey commerce relationship sooner or later. The deal will safe current preferential tariffs for the 7,600 UK companies that exported items to Turkey in 2019, making certain the continued tariff free move of products and defending very important UK-Turkey provide chains within the automotive and manufacturing sectors.
India’s Mahindra & Mahindra Ltd was in talks with a possible investor to promote a controlling stake in its bankrupt South Korea SUV producer SsangYong Motor, based on media experiences this week. SsangYongMotor filed for court docket receivership on 21 December after it failed to satisfy its appreciable debt reimbursement obligations. The corporate’s international gross sales fell by 19% to 96,763 models within the first 11 months of final yr, primarily because of weak abroad gross sales. Mahindra &Mahrindra has said for a while that it doesn’t intend to speculate additional within the South Korean automaker and has been on the lookout for a brand new strategic investor for over a yr.
Being so reliant on European markets – particularly Spain, Germany and the UK – Seat has been onerous hit by COVID-19. Manufacturing on the firm’s Martorell base fell by virtually a 3rd final yr and for varied causes the file of half one million automobiles produced in 2019 is unlikely to be damaged in 2021. Nonetheless, the model’s line-up is contemporary, Cupra as a high-margin spin-off is working and the long run autos cabinet is the very reverse of naked.
With greater than 99% of votes in favour, PSA and FCA shareholders have lastly accepted the long-awaited merger of the 2 corporations. The brand new automaker group shall be known as Stellantis and can convey acquainted manufacturers equivalent to Peugeot, Citroen, Fiat, Dodge, Jeep, Opel, Alfa Romeo and Maserati underneath the identical management. The merger will scale back prices for each teams due to platform and part sharing, and joint R&D expenditure. The deal comes at a time when stress on auto teams is excessive due to the continued impression of COVID-19 and creating megatrends together with electrification, connectivity and autonomous autos vying for consideration. Whereas these challenges have an effect on all auto gamers, Stellantis’ management shall be hoping the newly merged group can sort out a number of the particular weaknesses that affected FCA and PSA previous to the settlement.
It isn’t simply Nissan retrenching: Honda Motor plans to withdraw from the Russian automobile market as a part of a world effectivity drive, based on experiences in Japan. The automaker’s gross sales in Russia are estimated to have fallen to much less 1,500 autos final yr, whereas complete car gross sales on this market fell by simply over 10% to 1,346,351 models within the first 11 months of 2020. The experiences recommend the corporate will stop supplying new automobiles to official sellers in Russia in 2022, however it’ll proceed to provide bikes and energy tools, and can proceed to help the present aftersales and spare components networks. The corporate doesn’t have a car meeting plant in Russia and provides this market from its international operations. Late final month Honda additionally introduced plans to consolidate its car and associated part manufacturing operations in India at its Tapukara plant in Rajasthan, with speedy impact. This plant has an put in annual manufacturing capability of 180,000 models.
Kia this week revealed its new company emblem and international model slogan which, it mentioned, “signify the automaker’s daring transformation and all new model goal”. “The introduction of the brand new emblem represents Kia’s ambitions to ascertain a management place sooner or later mobility business by revamping almost all sides of its enterprise.” The brand new emblem is meant to resemble a handwritten signature: “The rhythmical, unbroken line of the brand conveys Kia’s dedication to bringing moments of inspiration, whereas its symmetry demonstrates confidence. The rising gestures of the brand embody Kia’s rising ambitions for the model, and, extra importantly, what it affords prospects.” Ho Sung Tune, president and CEO, mentioned: “The automotive business is experiencing a interval of fast transformation, and Kia is proactively shaping and adapting to those adjustments. Our new emblem represents our need to encourage prospects as their mobility wants evolve, and for our workers to rise to the challenges we face in a quick altering business.”
Daimler plans to launch manufacturing of a small battery-powered SUV in China underneath its Good model from 2022, based on native experiences citing a senior govt on the firm. Good, higher recognized for its two-seater micro-cars, plans to enter the Chinese language market with a “spacious but compact, absolutely electrical SUV”, based on Daniel Lescow – vice-president of world gross sales, advertising and aftersales of Good Car.
Tesla will proceed shopping for batteries from longtime provider Panasonic till not less than 2022 regardless of the EV maker’s plans to provide its personal cheaper different, a media report mentioned. In accordance with Nikkei Asia, Tesla revealed it had signed a brand new pricing settlement with Panasonic for lithium-ion batteries. Nevertheless, it didn’t specify whether or not this includes the 4680 battery cell, a extra value environment friendly unit that Tesla unveiled in September final yr, which the corporate mentioned would considerably scale back the price of electrical autos.
South Korea’s LG Vitality Resolution, the world’s largest electrical car (EV) battery producer, has signed an settlement with the Indonesian authorities to put money into a world manufacturing hub for lithium ion batteries, based on media experiences. The memorandum of understanding was mentioned to have been signed in Seoul on 18 December following greater than a yr of negotiations between the 2 events. LG is trying to faucet into Indonesia’s huge nickel reserves and has agreed to put money into an built-in EV battery manufacturing operation to provide international markets.
Have a pleasant weekend (and a greater yr in 2021)
Graeme Roberts, Deputy Editor, just-auto.com
