Volkswagen take shares in Suzuki: Volkswagen has taken a 19,9 per cent shareholding in Suzuki, of Japan, as part of its strategy to strengthen the multi-brand VW Group as it targets overtaking Toyota as the world’s No. 1 motor company by 2018. Suzuki, in turn is trying to obtain some of the tightly held VW stock.
VW paid $2,5bn for the Suzuki shares, which it sees as an investment in benefitting from Suzuki’s huge presence in the growing Indian market.
However, the CEO of Suzuki, Osamu Suzuki, says he does not want the company founded by his wife’s grandfather to become the 12th brand in the VW Group and says the company will resist any attempt by VW to increase its share above the present amount.
Meanwhile VW chairman Ferdinand Piech says he would like to see ‘Europe’s biggest vehicle maker grow to include 12 brands, up from the 10 it will have when it absorbs the Porsche sports car marque.
Asian car makers dethrone Detroit: Asian companies dethroned the Detroit Big 3 for the first time in the United States in 2009. Total industry sales fell 21,2 per cent to 10,43-million vehicles which is the lowest level since the recession in 1983.
The Detroit Big 3 – General Motors, Ford and Chrysler – saw its share shrink to 44,2 per cent, while Asian brands captured a 47,4 per cent. The Big 3 held a 60 per cent share as recently as 2004. European makers saw their share grow from 7,8 per cent in 2008 to 8,4 per cent last year.
Toyota was the best selling brand in the US and Lexus retained its position as the leading luxury vehicle brand in this market.
The Koreans performed strongly, with Hyundai’s share up to 4,2 per cent from 3 per cent in 2008 as sales grew 8,3 per cent to 435 064 units, while Kia’s share improved by 0,8 per cent to 2,9 per cent as its sales grew 9,8 per cent to 300 063 vehicles.
Benteler comes to SA: Multinational vehicle component manufacturer, Benteler, Automotive, will invest R178-million in the Nelson Mandela Bay Logistics Park to supply components for VW SA. The investment will create 250 jobs and increase investment by the nine companies currently in the park and the 25 investors in the Coega industrial development zone to R40-billion.
Founded in 1876 and based in Germany, the family-owned Benteler Group employs almost 25 000 people in 150 locations in 35 countries. It will produce and supply dashboard carrier panels and body parts, front and rear bumpers and chassis parts to the production plant located adjacent to the park.
Facilities created by interior plastics component manufacturer, Faurecia Interior Systems, side mirror and cable manufacturer Flextech, bumper manufacturer Rehau Polymer and headliner and door panel maker Group Antoine, were already operational in the park.
Other park investors are the plastic fuel tank maker, Inergy, and logistics companies Mediterranean Shipping Company and Schnellecke.
Malaysia aims for foreign investors: Malaysia has unveiled plans to allow 100 per cent foreign ownership in its motor sector, while offering a 10-year tax break for the production of green vehicles as it tries to catch up with Thailand as a regional automotive hub.
It has also ended a three year freeze on manufacturing licences for luxury cars with an engine capacity of 1.8-litres and above and priced as more than R336 600 as well as on hybrid, electric and commercial vehicles. The aim is to try and attract European vehicle manufacturers to set up facilities in Malaysia.
The new regulations came into force in January. Malaysia is Asia’s largest passenger car market, with sales of about half a million cars a year. It previous policies were aimed at protecting local vehicle makers Proton and Perodua. The government says talks are ongoing to find a global player to tie up with state-controlled Proton. VW ended alliance talks in 2007, but has reopened discussions.
Mahindra expands in SA: Mahindra SA, a wholly owned subsidiary of Mahindra & Mahindra Ltd. of India, is expanding its operations in SA, with several new dealerships being opened last year and more planned for this year. The latest additions are McCarthy Mahindra in Pretoria North and Polokwane and Mahindra Silverton, which is part of Hydro Holdings.
Mahindra entered the local market five years ago and its current range of products consists of the Bolero bakkie range, two XYLO minivans and the Scorpio SUV and Pik-Up models.
Nissan SA targets exports to Europe: Nissan South Africa plans to expand its fully-built up vehicle exports to Europe to ensure an increase in production at its Rosslyn facility, north of Pretoria, to 50 000 units a year, which is the threshold for the government’s new Automotive Production and Development Programme (APDP).
Previously Nissan SA focussed on growing its exports into Africa, but this is no longer seen as sustainable for the future.
The global financial crisis had resulted in Nissan, of Japan, decreasing the number of global regions and grouping Nissan SA with Africa, Middle East and Europe has opened the door to exports to Europe. No specific products have yet been announced for this new export initiative.
AAD to expand SA range: Amalgamated Automobile Distributors (AAD), the joint venture between McCarthy Holdings and the imperial Group, is set to expand its range of Chinese imports this year. AAD is the company that imports and markets Chery and Foton products, which was previously undertaken by McCarthy on its own.
According to AAD MD, Brett Soso, both the Chery and Foton parent companies are interested in securing a shareholding in AAD in the future, with McCarthy and Imperial keen to retain the majority share. Foton has also expressed an interest in manufacturing its vehicles locally in the future.
Soso added that another three Chine automotive brands are expected to enter the SA market this year.
