TABLE OF CONTENTS
Volkswagen Unveils New U.S.-Made Passat Midsize Sedan
GM Raises $20.1bn in Largest US IPO
SAIL Plans to Produce Auto Grade Steel
South Korean Automakers Posted Record Sales in 2010
Hyundai and Kia Sell 1 million Cars in China
Vinashin Aims to Complete 64 Ships and Regain Prestige
India’s TVS Motor Sales in December Grow by 42pct
Fiat 500 Leads Carmaker’s North American Return
Mubadala Sells Ferrari Stake for €122m
Automaker Iran Khodro Announces Strategic Plans for 2025
Toyota Manufacturing Expansion, Huntsville, Alabama
Piston Automotive Plant Expansion, Redford MI
Martinrea Assembly Addition, Hopkinsville, KY
Aircraft Production Plant Phase II, Mobile, AL
Chromalloy Ceramic Core Expansion, Tampa, FL
Scherdel Sales & Technology Expansion, Muskegon, MI
Mission Motor Company Assembly Facility, San Francisco CA
Bando USA Expansion, Bowling Green KY
Bruss North America Expansion in Russell Springs, KY
Engine Component Builder MAPE USA Expansion in Cambridge MN
After months of anticipation, Volkswagen has taken the wraps off its new midsize sedan for the U.S. market at the Detroit auto show. The new model, which takes the name of VW's existing midsize entry, Passat, is more than just a fresh design. The vehicle brings with it a commitment by the German automaker to resume building cars in the U.S. for the first time in decades.
The Passat, which will begin hitting dealer showrooms later this year, will be made in Chattanooga, Tenn., where VW (VLKAY) has invested $1 billion in a new plant. As with the newly redesigned Jetta compact that was introduced last fall, the new Passat is specific to the U.S. market, as the company seeks to grow U.S. sales in its bid to supplant Toyota Motor as the world's largest automaker by 2018.
Volkswagen has a long way to go, however, to achieve that goal. Toyota sold more than 1.76 million cars last year in the U.S., despite being besieged by numerous recalls that led many consumers to consider other brands. By contrast, VW reported earlier this month that it sold about 257,000 cars in the U.S. in 2010.
When equipped with a 2.5-liter five-cylinder engine, the new Passat will cost around $20,000, about $7,000 less than the current Passat. A diesel engine version, capable of up to 43 mpg, and a V6 model will also be offered.
Despite its ambitions, which include an overall $4 billion investment in the U.S. market, VW has much work to do to woo quality-conscious consumers. Volkswagen finished near the bottom of all carmakers in the latest survey of new-car initial quality, by J.D. Power and Associates, according to an article in DailyFinanace.
General Motors has raised $20.1bn in one of the world’s biggest initial public offering, allowing the US government to slash its stake in the Detroit carmaker a year after its rescue.
The US Treasury crystallized a loss on the bail-out but at $33 a share the sale achieved a higher price than initially expected and paved the way for a possible exit next year.
The IPO will raise $15.8bn in common shares, and $4.35bn in convertible preferred shares. If the overallotment of 72m common shares and 12m preferred shares is exercised, the total offering would be worth $23.1bn.
The Canadian government has reduced its stake from 11 per cent to just under 10 per cent.
GM received a total of $49.5bn from the US government under the 2009 bailout. The Treasury will receive about $12bn from the IPO. The carmaker also repaid $6.7bn in loans earlier in 2010.
Sources close to the deal said that US mutual funds would be the carmaker’s biggest new shareholders. About 10 per cent of the shares have been allocated to foreign investors, which is lower than most IPOs, the sources added. The Canada Pension Plan Investment Board, which administers the country’s public pension plan, is understood to be a sizeable new shareholder.
With the rapidly growing domestic auto industry turning out to be a lucrative market for steelmakers, Steel Authority of India Ltd has come out with elaborate plans to make auto grade steel.
Mr. C.S. Verma, chairman of SAIL, told Business Line that as part of it’s close to INR 70,000 crore modernization program, it is setting up a new cold rolling mill with a 1.2 million tonnes per annum capacity. This mill will be built at its Bokaro plant and would primarily target auto and the white goods industry.
He said that “We believe the steady growth of the auto sector is a key driver for steel demand going forward, particularly for CR products. SAIL's major flat steel producing plant at Bokaro is expanding its volume while upgradation of technology is also being undertaken. A new cold rolling mill is being set up with coupled pickling and tandem mill, 100% hydrogen annealing, electrolytic cleaning line, tension leveling and automatic packing stations, etc.”
He said that “Also, galvanizing lines are being set up both for hot rolled and CR products. Provision has been made for supplying of HR pickled and oiled material. Necessary upstream projects like facilities for de sulphurisation and upgradation of hot strip mill are also on the anvil.”
Mr Verma said that SAIL's R&D centre has already developed grades required for chassis and under-the-bonnet components. Once the facilities for skin body sheets are available, SAIL is confident of developing materials for that too.
He said that “We expect the new facilities will be able to supply to almost all requirements of auto grade steel that is hot rolled, cold rolled and galvanized, except for the skin components for which IF grade steel is required. However, in the second phase of expansion of the Bokaro Steel Plant, when the older SMS-I will make way for SMS-III, facilities will be added at the steel melting stage so that SAIL is in a position to meet the required steel grades of skin component also.”
He added that “In that phase of expansion, a color coating line is also envisaged. With these facilities in place, SAIL will be able to cater to the requirements of chassis, under-the-bonnet components, and later to outer body sheets as well.”
Yonhap reported that South Korea's five automakers posted record sales in 2010 as strong overseas demand and moderate sales growth in the local market put their combined sales at nearly 7 million units.
The automakers, led by industry leader Hyundai Motor Co and its affiliate Kia Motors Corporation, sold 6,843,122 vehicles in 2010, up by 25.7% YoY.
Data released by the automakers showed that domestic sales rose by 5.2% YoY to 1,457,962 vehicles with overseas sales jumping 32.7% YoY to 5,385,160.
The sales jump was led by Hyundai and Kia, which together make up the world's fifth largest automotive group, Hyundai Motor Group, as their combined sales increased 23.6% YoY to record high 5,739,973 units.
Mr Chung Mong koo chairman of Hyundai Motor Group said that the company will continue to seek growth in both domestic and overseas markets this year to sell over 6.33 million vehicles. He added that "We are working to turn 2011 into a historic year when the group embarks on its challenge to secure a new engine for future growth."
Hyundai, however, saw its overwhelming dominance in the local market edge down in 2010 as its sales here dropped 6.1% YoY to 659,565 units, though its brisk overseas sales kept its overall sales growing at 16.1%.
Hyundai's December 2010 sales again saw a drop in the domestic market, mitigated by a large increase in exports, as domestic sales dropped 20.6% from the same period in 2009 to 60,092 units with overseas sales rising 10.9% YoY to 245,248 units.
Kia Motors, the second largest automaker here, enjoyed a record year both in the domestic and overseas markets with its overall sales reaching over 2 million units for the first time in its history. Kia Motors sold 484,512 vehicles in the local market, up by 17.4% YoY with its exports also jumping 46.8% YoY to 1,647,019 units.
In December 2010, Kia Motors saw a slight drop in its sales in the domestic market as it sold 45,216 vehicles here, down by 2.8% YoY, but its exports again grew at an astonishing 39.6% to 168,967, pulling up its overall monthly sales by 27.8%.
Smaller automakers, such as GM Daewoo Auto & Technology, the South Korean unit of US carmaker General Motors Co and Renault Samsung Motors Co, the local unit of French automaker Renault SA, also enjoyed a record breaking year with all of their domestic and overseas sales marking large growth.
GM Daewoo saw a 29.9% increase in its overall sales in 2010 with its domestic sales rising 9.5% from 2009 to 125,730 units and exports climbing 35% to record high 625,723 units.
GM Daewoo's monthly domestic sales slightly dropped in December to 14,313 units, down 2.2% from the same period in 2009, but its exports again surged 10.6% YoY to 56,835 vehicles.
Renault Samsung saw the largest sales growth in 2010 as its exports more than doubled from 2009 to 115,785 units with its domestic sales also rising 16.5% to 155,696 units, which made it the third most popular brand in South Korea, trailing only Hyundai and Kia.
Ssangyong Motor Co, the smallest carmaker here, saw its overall sales increase nearly 130% to 80,215 units in 2010 with its exports jumping 274.6% to 47,756 units.
Ssangyong's December sales again reached a new monthly high of 9,202 units. It said that "Sales in December 2010 renewed the company's previous sales record set only a month ago, indicating sales of its vehicles are now on the right track."
Yonhap reported that Hyundai Motor Co and its affiliate Kia Motors Corp sold a combined 1.1 million vehicles in China last year becoming the second largest auto seller in Asia biggest car market.
South Korea biggest carmaker Hyundai Motor said its Beijing unit Beijing Hyundai Motor sold 700,000 locally manufactured units in China with Dongfeng Yueda Kia Automotive, the Chinese unit of Kia Motors selling 330,000 units.
Including additional sales of imported Hyundai and Kia cars there, Hyundai Motor Group sold 1.1 million units becoming the second largest car seller with a 9% market share in China trailing only Germany based Volkswagen Group.
An official for the two affiliated carmakers said "Achieving 9% market share and the status of the No 2 car seller in just the nine years since our 2002 entrance into China is just a miracle especially considering that more than 43 carmakers compete for this market."
Thanhnien News reported that Vietnam Shipbuilding Industry Group will complete a total of 64 ships as it strives to regain its prestige and brand.
Vinashin said that the group handed over 22 ships worth USD 241 million in the first 8 months of 2010 and it will complete 42 more ships by the end of 2010. It added that "The group is step by step regaining its brand position among domestic and international customers as well as earning back the trust of the ruling Communist Party and the people."
The Financial Times reported that Vinashin failed to meet an extended deadline to make a USD 60 million loan payment to foreign creditors. According to Moody's Investors Service, Vietnam and its state backed companies will face greater difficulties borrowing money after the reports of the default.
Vietnam News Agency quoted Mr Nguyen Ngoc Su chairman of Vinashin as saying that Vinashin is certain that a company restructuring will allow it to raise capital to pay back the debt in a year.
Mr Ngoc said that the group expects to earn around VND 23 trillion from selling 216 affiliates, while the completion of ships and the sale of shares in several company units will generate further capital.
The government said that Vinashin had debt of about VND 86 trillion as of June 2010.
Driven by domestic sales across all product segments, TVS Motor Company has reported 42% growth in December sales as compared with the same period last year.
The company sold 171,790 units in December 2010 against 120,913 units in the same month of the previous year. Cumulative sales of the company for the period April to December 2010 stood at 1,512,896 units. The total two wheeler sales rose by 41% to 168,359 units in December 2010 from 119,701 units registered in December 2009.
Consequently, the cumulative two wheeler sales for the period April 2010 to December 2010 increased by 34% with sales of 1,485,102 units over 1,109,054 units in April to December 2009.
The domestic sales of the company increased by 46 per cent with sales of 149,357 units in December 2010 against 102,479 units reported in December 2009.
Scooter sales grew by 94% with sales of 41,804 units as against 21,566 units recorded in December 2009. Motorcycle sales recorded a growth of 24 per cent with sales of 61,414 units in December 2010 as against 49,560 units in December 2009.
The company exported 19,002 units of two wheelers in December 2010 as against 17,222 units in December 2009. In December 2010, the company sold 3,431 units of three-wheelers against 1,212 units sold in the comparable month of the previous year.
Cumulative three wheeler sales for the period April to December 2010 stood at 27,794 units against 8,707 units, a growth of 219%.
Fiat recently marked its return to North America after an absence of 27 years with the debut of the small Fiat 500 at the Los Angeles Auto Show.
The model on display will have some differences from the 500 sold in Europe since 2007.
The North American version will offer a six-speed automatic transmission. An armrest has been added for forearms with no work to do changing gears.
In Europe, the 500 has been a success for Fiat not only in terms of sales volumes, but for lifting the brand’s overall image as the most identifiable car in Fiat’s line-up.
Fiat’s return to North America was spurred by its acquisition last year of a 20 per cent stake in Chrysler as part of the latter’s court-supervised restructuring. Fiat has also taken day-to-day control at Chrysler, and will build the 500 at a Chrysler plant in Toluca, Mexico.
Fiat has yet to disclose the price of the 500.
The North American version of the 500 will be produced at a Chrysler plant in Toluca, Mexico. It will also be sold elsewhere in Latin America, where the model’s sales are expected to get an extra lift in fast-growing markets like Brazil.
In Latin America, European-built 500s are already available, but expensive for their size because of import duties. The region’s free-trade agreements will bring the Mexican-made model’s price down into reach of more customers, the Italian company says.
Fiat hopes to sustain Americans’ interest in the 500 by introducing several variations over the next two years, including a convertible, a high-performance model and an electric car.
Mubadala, one of Abu Dhabi’s sovereign wealth investment vehicles, has sold its stake in Ferrari, the luxury carmaker, back to Fiat for €122m, according to reports.
Mubadala bought the stake in 2005 and Fiat has always retained the right to buy back the shares. The disposal came to light in the release of Fiat’s release of its third-quarter results and means that the Italian manufacturer now owns 90 per cent of Ferrari.
News of the disposal came as Abu Dhabi, capital of the United Arab Emirates, hosted the last race of the Formula 1 season at its Yas Island track. The site is also now home to a Ferrari World, a theme park.
As the Middle East's giant auto maker and Iran's industry leading company, IKCO compiles and runs its grand strategic plans on the basis of the country's 20 year vision and presence in the global markets.
Producing more than one million cars in 2014 and running up this amount to over 1.5 million by 2025 and exporting 16% and 30% of the said amount respectively make up IKCO's production and global sales strategic plan in 2025 perspective. IKCO aims to produce 850,000 to 900,000 cars in 2011.
At least five new products including M59 van, Runna, NX7, NX8 and Samand pickup would be designed and developed on improved platforms by 2014. Design and development of two brand new platforms and 10 new products with global most modern technologies have been targeted in 2025 strategic plan.
In order to upgrade standard emission compatibility to Euro IV and V and reducing fuel consumption of products to an average of 7l/100km, IKCO focuses on improving the current technology in EF7, TU5 and IKCO's 1400CC engines in powertrain strategic plan.
Design and development of national diesel engines for existing and future products as well as compatibility with Euro IV, V and VI have been closely focused on in this plan.
Micro hybrid technology that brings about a minimum of 10 per cent reduction in fuel consumption would be utilized in IKCO's upcoming products. With at least 20 per cent fuel use reduction, mild hybrid technology has been targeted for IKCO's new platforms and engines in 2025 strategic plan.
Having the benefits of Global Sourcing (global supply chain), domestic suppliers' capability of design and production has been improved and they have been planned to get the power of producing parts for 1.5 million cars by 2025.
Estimated Value: $1~5 million
Details: Plans call for the expansion of a plant that makes eight- and six-cylinder engines for Toyota trucks and SUVs. After the expansion, it will produce four-cylinder engines as well. The expansion will add 250 jobs. This project is a further expansion of CW project #85305. As of December 2010, the project has been announced, and the company is beginning the hiring process.
Contact Information: Toyota Motor Engineering & Manufacturing North America
Mark Brazeal, General Manager of Administration
7354 Pulaski Pike Northwest, North Huntsville Industrial Park, Huntsville, AL 35810
PH: 256-746-5000 http://www.toyota.com
SIC Code: Motor Vehicle Supplies and New Parts
Estimated Value: $15 million
Details: Plans call for the expansion of a plant for Piston Automotive, an automotive supplier of primarily chassis and interior parts. As of 12/14/10, the Michigan Economic Development Corporation recently announced tax credits to help this project move forward.
Contact Information: Piston Automotive Group, 12723 Telegraph Road, Redford, MI 48239
PH: 313-541-8674, Fax: 313-541-8698, http://www.pistongroup.com
SIC Code: Motor Vehicle Parts and Accessories
Estimated Value: $13.7 million
Details: Plans call for a 25,000-square-foot addition to accomodate a new bay assembly area at Martinrea's Hopkinsville facility. In December 2010, the company announced plans for this project.
Contact Information: Kurt Spencer, Manager
260 Gaige Street, Jonesville, MI 49250
PH: 517-849-2195, Fax: 517-849-7080, http://www.martinrea.com
SIC Code: Aircraft
Estimated Value: $25~100 million
Details: Plans call for the construction of Airbus administrative offices and a final assembly line for the A330 aircraft. As of 12/8/10, EADS, the parent company of Airbus, is competing with Boeing for a contract to build 179 new tankers for the Air Force. A decision is expected early in 2011. Construction on this and other related projects is contingent on winning the Air Force contract. The project will be broken into at least two phases.
Contact Information: European Aeronautic Defence & Space (EADS) North America
815 Connecticut Avenue Northwest, Suite 700, Washington, DC 20006
PH: 202-776-0988, Fax: 202-776-9080, http://www.eads.net
SIC Code: Airports, Flying Fields, and Airport Terminal Services
Estimated Value: $5 million
Details: Plans call for construction of a 40,000-square-foot production facility for Chromalloy to manufacture ceramic cores used to cast superalloy turbine engine vanes and blades. As of 12/9/10, pre-engineering is complete.
Contact Information: Sequa Corporation, Carl Peterson, Manufacturing Executive
7030 Anderson Road, Tampa, FL 33634
PH: 813-885-4781, Fax: 813-885-7660, http://www.sequa.com
SIC Code: Industrial Supplies
Estimated Value: $1~5 million
Details: Plans call for a 22,500-square-foot addition to an existing automotive spring plant. As of 12/7/10, Hughes Builders Inc. has been confirmed as the general contractor for this project. They have an in-house architect working on the design plans. The planning commission has approved the project.
Contact Information
Owner: Scherdel Sales & Technology, Holger Dressel, Operations Executive
3440 East Laketon Avenue, west of Mill Iron Road, Muskegon, MI 49442
PH: 231-777-7774, Fax: 231-777-7775
Architect, General Contractor: Hughes Builders Inc.
3279 East Laketon Avenue, Muskegon, MI 49442
PH: 231-773-0077, Fax: 231-773-0909, http://www.hughesbuildersinc.net
SIC Code: Motor Vehicle Dealers (New and Used)
Estimated Value: $1.1 million
Details: Plans call for an assembly facility for Mission Motor Company, a company that manufacturers electric vehicle components. As of mid-Novemeber 2010, the California Energy Commission has approved a $505,381 grant for the project.
Contact Information: Mission Motor Company
25030 Mission Boulevard, Hayward, CA 94544
PH: 510-582-2600, http://www.ridemission.com
SIC Code: Rubber and Plastics Hose and Belting
Estimated Value: $7 million
Details: Plans call for the construction of a 7,200-square-foot addition to the existing 103,000-square-foot Bando USA plant. Bando USA is a manufacturer of power transmission products for the automotive and industrial markets. On 11/23/10, a representative from Bando USA confirmed Scott Murphy & Daniel as the general contractor.
Contact Information
Bando USA, Rod Anthony, Purchasing Executive
2720 Pioneer Drive, Bowling Breen, KY 42101
PH: 270-842-4110. http://www.bandousa.com
General Contractor: Scott Murphy & Daniel
2335 Barren River Road, Bowling Green, KY 42101
PH: 270-781-9944, Fax: 270-782-2506, http://www.scottandmurphy.com
SIC Code: Automobiles and Other Motor Vehicles
Estimated Value: $10 million
Details: Plans call for adding 71,400 square feet of manufacturing space and 54,000 square feet of warehousing space to the Bruss North America corporate headquarters facility.
Contact Information: Bruss North America
600 Progress Drive, Russell Springs, KY 42642
PH: 270-858-2600, http://www.bruss.de
SIC Code: Motor Vehicle Parts and Accessories
Estimated Value: $5~25 million
Details: Plans call for a 60,000-square-foot addition to an existing building for MAPE, USA, which specializes in building engine components such as connecting rods, crank shafts, balance shafts, liners, and pistons to fully-assembled engineered systems. On 11/17/10, the city of Cambridge and MAPE USA, Inc. signed the official paperwork that allows MAPE to purchase a vacant building in the industrial park. The company will build the addition within the next three years.
Contact Information: MAPE, USA
315 Garfield Street South, Cambridge Opportunity Industrial Park, Cambridge, MN 55008
PH: 763-237-1500