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BYD VP talks on BYD’s sales drop – it’s part of the plan, stupid.

Posted by: Dent Removal  /  Category: Automobiles

Stella Li, BYD’s latest VP gave some insight to The Wall Street Journal as to why BYD’s sales have gone south for the past two years after a sterling 2008 and 9. Stella reveals that this is part of BYD’s master plan to capture the second time car buyer who is readying to swap their first car for something a little better, hence BYD’s introduction of the S6 SUV and the soon to launch G6 sedan. How this plan will play out is anyone’s guess, but it did always appear that BYD’s gasoline engine line up was really just a stop gap measure until the electric car scene took off – but that take off hasn’t yet appeared in China or the USA.

From the WSJ:

Thanks to a nagging slump in car sales, Warren Buffett-backed Chinese battery producer and auto maker BYD appears to be running short of funds to carry out its ambitious plans for electric cars and other “green” technologies. The big question: When will BYD’s sales of gasoline cars rebound?

While most industry observers are doubtful about the prospects for an early recovery, Stella Li, a key BYD executive now based in the U.S., said the company expects sales of gasoline cars to start posting year-on-year growth again by the end of the second quarter next year.

Of course, that is well at least half a year from now, and in the mean time BYD is likely to continue to report dismal business results. Sales of BYD’s gasoline cars have slipped every month since August last year.

Still, Ms. Li expects the turnaround to happen because Chinese consumers are responding positively to new cars BYD launched recently – most notably a new car-SUV crossover called the S6. The company also has high hopes for an upcoming sedan called G6. Both are larger and supposedly more upscale than compact cars BYD has focused on since they entered the car business in 2003 when it took over a small car maker in Xian.

“Our strategy is to focus more on premium-feel cars, and we are also focusing on introducing more green cars,” Mr. Li said in a recent telephone interview from Los Angeles, where BYD’s U.S. operations are headquartered. “Our target is to turn vehicle sales around by Q2 next year,” she said, referring to the second quarter of 2012.

Make sure you read the rest at the WSJ

Guangzhou Auto Profit Drops

Posted by: Dent Removal  /  Category: Automobiles

From Bloomberg:

Guangzhou Automobile Group Co., the Chinese carmaker which assembles vehicles for Toyota Motor Corp. (7203) and Honda Motor Co., said first-half profit fell 26 percent after the March 11 earthquake in Japan hurt component shipments.

Net income dropped to 1.72 billion yuan ($270 million), or 0.28 yuan a share, from 2.31 billion yuan, or 0.59 yuan, a year earlier, Guangzhou Auto said today in a Hong Kong stock exchange filing. Sales fell 4.5 percent to 27.6 billion yuan.

The maker of Toyota Camry sedans and Honda Fit compacts said it will pursue unspecified “effective measures” in the second half to minimize losses brought about by the earthquake. Industry-wide growth in Chinese car sales should also reach 10 percent in the half after slowing to 3.4 percent in the first six months from 32 percent in 2010, the company said today.

“The upturn tendency of the Chinese economy as a whole will remain unchanged and therefore the automobile industry will see an end to the downturn trend and resume a level of steady and rapid growth,” Chairman Zhang Fangyou said in the statement.

Guangzhou Auto declined 0.24 percent to close at HK$8.28 prior to today’s earnings announcement. The stock has plunged almost 23 percent this year, compared with a 12 percent decline in the benchmark Hang Seng Index.

The ventures with Toyota and Honda have suffered severely, Shanghai-based Phillip Securities (HK) Ltd. analyst Zhang Jing said in an Aug. 15 note, adding that discounts on offer as the company struggles to meet sales targets may crimp margins.

Guangzhou Auto sold 314,190 vehicles in the first half, 18 percent fewer than a year earlier, according to figures from the China Association of Automobile Manufacturers.

Dongfeng’s profit drops on quake woes

Posted by: Dent Removal  /  Category: Automobiles

From Bloomber:

Dongfeng Motor Group Co., the Chinese partner of Nissan Motor Co. and Honda Motor Co., posted a 10 percent decline in first-half profit as slowing demand and production disruptions after Japan’s earthquake hurt sales.

Net income in the first six months fell to 5.9 billion yuan ($925 million), or 0.68 yuan per share, from 6.53 billion yuan, or 0.76 yuan, a year earlier, the company said in a filing to the Hong Kong stock exchange today. That beat the 5.5 billion yuan average of four analysts’ estimates compiled by Bloomberg.

The automaker faced output disruptions after Japan’s March 11 earthquake and tsunami caused shortages of electricity and parts at Nissan and Honda. Shipments have also slowed in China this year after the government reinstated a 10 percent sales tax on small cars and phased out trade-in subsidies in rural areas.

First-half sales at the Wuhan, Hubei province-based Dongfeng rose 3 percent to 63.7 billion yuan. The country sold 9.3 million automobiles in the first six months, up 3.4 percent from a year earlier, according to the China Association of Automobile Manufacturers.

Dongfeng rose 5.8 percent to HK$12.72 at the 4 p.m. close in Hong Kong trading, before the announcement. The stock has declined 5.1 percent this year compared with a 12 percent drop in the benchmark Hang Seng Index.

China gets UK edition of the MG6

Posted by: Dent Removal  /  Category: Automobiles

A few months ago I spotted a UK version of the MG6 testing in Shanghai’s Jia Ding district, which is not too far from SAIC’s headquarters. Of course only I am sad enough to spot the slightest difference between the UK and Chinese version, the UK model gets a faux plastic air vent on the front wing and of course different alloys, on the inside the plastics have been improved but it is unclear what interior changes have been taken over to the Chinese version yet.

MG6-UK-Ed-in-China
MG6-UK-Ed-in-China1
MG6-UK-Ed-in-China2

The MG6 Saloon has not been a popular car in the Chinese market, when consumers think MG6 they think of the fastback version first and seem to be surprised to find the Roewe 550 in MG drag within MG dealers, I personally have never seen one on the roads in China yet.

As for pricing, both the 1.8 naturally aspirated and 1.8 Turbo units are on sale in China, the naturally aspirated model ranges from 126,800rmb to 149,800 whilst the turbo version reaches from 146,800 to 192,800rmb for 2012.

2012 Kia Rio5 SX Tested: Looks Sporty, Could Feel Sportier

Posted by: Dent Removal  /  Category: Automobiles

2012 Kia Rio5

The little Kia moves up in the world.

Like the U.S., where roughly 70 percent of new cars sold are black, white, or some shade of silver or gray, Korea’s automotive landscape is almost exclusively grayscale. This may have been why the locals gave us funny looks as we drove from downtown Seoul to the country’s east coast in a bright red 2012 Rio5 (U.S.-spec, of course). Or maybe it was the pace at which said red Kia was racing from one well-marked speed camera to the next.

Keep Reading: 2012 Kia Rio5 SX – Short Take Road Test

Public Charging in the EV Future: Why Proposed California Law AB 475 Needs to Be Enacted

Posted by: Dent Removal  /  Category: Automobiles

For years, members of California’s EV community have been whirring about in their golf carts, Th!nks, GEMs, and other electric runabouts (until 2003, that included a bunch of GM EV1s), and parking in a limited number of public spots equipped with charging stations at malls, airports, and the occasional Mickey D’s. But the promise of more plug-in vehicles from several automakers—tens of thousands in the near future, and possibly many more in the long term—has prompted a new wave of policy discussions.

The current hot topic in the Golden State is the short, simply-worded California bill AB 475, which is backed by General Motors and currently sits on Governor Brown’s desk awaiting action. It would allow not only EVs, but also E-REVs and plug-in hybrids, to use public charging stations in designated parking spots. More important, though, it would require the vehicles to actually be plugged in and using the spot for its intended purpose, and not simply because it’s close to storefronts, airport terminals, or the like. Unless an EV is actively being charged, it should be parked in the main lot with the rest of us, the law says. Violators would face a fine or towing.

Someone’s Charging, Lord, Kumbaya

What’s got the EV community in California particularly riled up is that there are currently more EV spots than actual charging stations to serve them, which has resulted in a practice called “plug sharing.” This occurs when the cords of one or more plug-in vehicles can reach a single charging station that’s already in use; the driver of the late-arriving vehicle unplugs the one that was there first—without the knowledge of that vehicle’s driver. The “plug thief” may or may not know if the first car was fully charged yet, and if they are especially low on electricity, likely won’t care.

In a small, tight-knit community, plug sharing can work. But even the most gracious EV driver must concede that plug sharing relies solely on human decency. As a matter of statewide public policy, relying on good samaritan behavior is totally unworkable, especially if the outcome can immobilize another motorist. What happens when someone intending to “share” a charger for 10 minutes forgets to reconnect the car he or she unplugged? Or if that 10-minute trip becomes a two-hour lunch with an old friend? Worse, imagine a Leaf or Tesla driver uses most of their charge en route to the airport, plugs it in before take-off, then, upon landing, finds out that it’s been unplugged since right after they left. And then there’s the matter of allowing a stranger to tamper with one’s vehicle or charging cord at all; we’re probably not alone in balking at this idea.

While AB 475 rules out plug-sharing as a matter of general policy—even if you put your EV in a non-EV spot, borrowing the plug from an EV in a designated spot would leave that car parked illegally—it should be noted that the bill allows local communities to actually supersede state law and establish their own charger-sharing protocols, so cities that currently enjoy effective plug-sharing practices among their citizens may simply write their own policies. But as the number of EV drivers grows, so too will the number of insensitive jerks driving them. AB 475 is not perfect—it doesn’t tell lot owners what to do with the extra, non-charger-equipped EV spots, for example—but it does direct newly built lots at various facilities to install one charging station per designated EV charging spot moving forward, to help develop infrastructure and effectively render plug-sharing and all of its opportunities for abuse less likely.

Name That Shifter, No. 39: Carbodies FX4 Fairway

Posted by: Dent Removal  /  Category: Automobiles

Click to enlarge

On Monday, we presented this week’s shifter and asked you to identify the make and model of the vehicle from whence it came. While the photo wasn’t of the best quality and this shifter was particularly tough, we still expected one of you internet detectives to figure it out. We were wrong: No one who commented correctly identified the shifter, which belongs to a Carbodies FX4 Fairway, better known as a London taxi.

The FX4 pictured here is from our September 1992 issue. The taxi we drove was powered by a 79-hp, 2.7-liter Nissan diesel engine. One impressive performance statistic that is perhaps more relevant to the FX4’s mission is its turning circle, which measures just 20 feet.

Kia’s RWD Frankfurt Concept May Be Called the Veredus

Posted by: Dent Removal  /  Category: Automobiles

Kia’s yet-unnamed rear-wheel-drive concept, pictured below and set to debut at the 2011 Frankfurt auto show, may be called the Veredus. Earlier this month, the company filed a trademark application for the moniker, and the sports-sedan concept is the only vehicle in the company’s short-term plans in need of a name. Looking forward, there are plenty of other Kia products in the pipeline—the company gave us a product roadmap on a recent trip to Korea—from an EV to a production rear-drive sedan based on Hyundai’s Genesis.

Given the timing of the registration, however, as well as Kia’s history of actually using names for which it files trademark applications, we think that the Veredus name will go on something very soon. The U.S. eventually will get the Hyundai Azera–based Kia Cadenza; it’s possible that Kia will drop Cadenza for the States and go with Veredus instead, but we think it’s more likely that the appellation will be stuck to the concept car. We’ll know for sure in the coming weeks.

What Hatz Told Us: The Secret Details of the New 991 Porsche 911

Posted by: Dent Removal  /  Category: Automobiles

We went this week to witness the unveiling of the 991-generation 2012 911 at the Porsche Museum in Zuffenhausen, Germany. Against a backdrop of Porsche’s most significant racing cars and design studies—Le Mans–winning 917, the 001, a 956 mounted on the ceiling; y’know, the usual—Michael Mauer, the brand’s head designer, and Wolfgang Hatz, executive vice president of research and design, pulled the silk off what is, in person, an exceptionally well-realized if larger new 911.

We got the press materials and the official photos, already posted here, and then we pulled Hatz aside for the stuff they didn’t print in the car’s kit. Here is what he told us:

  • The new seven-speed manual, confirmation of which we broke two months ago, will have a fairly conventional shift pattern: Reverse is up and to the left, gears one through six in a conventional three-up/three-down arrangement, and seventh up and to the right. There’s a lockout on seventh gear unless you’re in fifth or sixth, s no 4-7 shifts are permitted in the manual.
  • The new gearbox is compact—both the PDK and the manual use the same housing and most of their internals save the second clutch and third and seventh gears—and would leave enough room for extra cylinders. “A flat-eight will fit,” he said. (We’ll have an in-depth tech feature on the seven-speed manual gearbox soon.)
  • There’s also been much talk about the hybrid version of this car. Hatz was a bit cagey on this topic—not necessarily on the “ifs” but the “hows.” He merely said the 911 would need a hybrid system that suited the car’s character. When it was suggested to him that the electric front axle from the 918 would fit and would scale to other cars in the lineup, he nodded sagely.
  • There will not be a four-cylinder version of the 911, even though there is precedent and the environmental pressure is on. “I don’t want a turbocharged base model,” Hatz told us. “I love the character of the naturally aspirated engines.”
  • And, when asked the perennial question about how the 911 would make its way in a Porsche landscape inhabited by a new and improved Cayman on the bottom end and the rumored-and-very-likely Panamera coupe on the GT end, Hatz replied: “We have a lot of plans for this 911. It has a bright future. The 911 derivatives will increase.”

2013 Mazda CX-5 First Drive: Fun, Lively, and Oh, So Good

Posted by: Dent Removal  /  Category: Automobiles

2013 Mazda CX-5

Beyond its role as Mazda’s anchor SUV, this new model is also the stalking horse for the brand’s future.

We could all live without another compact SUV; the dozen or more already on the market suit every imaginable purse and purpose. So what’s the Mazda CX-5’s reason for existing? The simple answer is that Mazda’s new bouncing baby bear is a smaller, cheaper model intended to round out the brand’s set of SUVs—well, and that the small-SUV category is a sales mine and no company can afford to sit it out. But proving that nothing is ever as simple as it first seems, the CX-5 embodies two ulterior motives: This is not only our first look at two major Mazda initiatives, it’s also an accurate preview of other models scheduled for near-term introduction.

Keep Reading: 2013 Mazda CX-5 – First Drive Review