Tesla will begin supplying Toyota with components for its electric RAV4 a year earlier than previously planned, reports Bloomberg, a move that will have Toyota paying $100m for the drivetrains rather than the previously-agreed-upon $60m. According to a Tesla SEC filing, the EV specialist firm will supply Toyota with
a validated electric powertrain system, including a battery, charging system, inverter, motor, gearbox and associated software which will be integrated into an electric vehicle version of the Toyota RAV4. Additionally, Tesla will provide TMC with certain services related to the supply of the Tesla Battery and Powertrain.
There’s still no word about how many of these RAV4s is Toyota planning on selling over those two years, or where will they be assembled, but it sounds like Toyota isn’t trying to launch quite the EV offensive that some green car blogs seem to be hoping for. As one analyst puts it to Bloomberg, $100 million “isn’t a huge amount for Toyota, so this allows them, with only modest downside risk, to participate in what Tesla is doing.” That sounds about right…
When I think of the South African car industry, I’m a bit ashamed to admit that I first think of the Citi Golf, the ageless Mk.1 VW Golf that was built there from ’84 to 2009 (or possibly armored cars). Of course that’s a grossly inaccurate representation, and the Financial Times recently clued me into South Africa’s booming auto sector growth . Led by screaming exports of Ford’s Global Ranger pickup and the Mercedes C-Class, South Africa will very nearly have doubled its production numbers between 2009 and 2012. And with the government introducing yet another Motor Industry Development Programme in 2013, the plan is to build South African production capacity to 1.2m vehicles per year by 2020. And though South Africa is not immune to the currency, labor and supply chain problems that plague nearly every production location, Mercedes has already promised to double C-Class production to 95,000 units by 2014. Sounds like a vote of confidence, and another reason to keep a closer eye on South Africa.
Every time Chrysler workers get busted for drinking and smoking pot during their lunch breaks, we tend to get one of two reactions from the B&B: either the lunchtime partying is emblematic of the entitlement of all union workers, or it happens at every plant in the US but Chrysler just got unlucky enough to get caught. But this is the third scandal since last September involving Chrysler workers consuming drugs and alcohol on camera (twice at Jefferson North, now in Trenton), and (as far as I can tell) no other company has suffered similar embarrassment.
So I want the convenient generalizations put aside for a moment: clearly this is not a union problem or an American worker problem or even an auto workers-in-general problem… at this point it’s a Chrysler problem. But why? Does Chrysler have lower morale, worse union locals, insufficient training and accountability, or is the media simply targeting it? Someone’s got to get to the bottom of this before Chrysler becomes a complete laughing stock… so let’s hear your (constructive) thoughts. Oh, and ideas for actually fixing the problem (Chrysler has already announced suspensions) probably wouldn’t hurt either.
Earlier today Bertel noted that the UAW’s goal of organizing “at least one” transplant automaker could be motivated by a desire to earn “brownie points” from the Detroit automakers. But the question that has remained unanswered ever since the union announced its transplant campaign is “which automaker will let the UAW into its plant?” Now that question may have its answer, as Automotive News [sub] reports:
Volkswagen AG and the UAW have intensified discussions about organizing workers at a new plant in Tennessee, German newspaper Handelsblatt reported in a preview of an article that will run Tuesday.
The newspaper, citing Volkswagen officials, said the union and automaker have held meetings and a workshop over the matter in the past few weeks.
VW insists that talks are still preliminary, and that no organizing campaign has yet begun. But, say the UAW, VW’s long tradition of worker unions “more willing to talk to unions about representation.” Ultimately VW says the decision to organize “belongs to our workers alone,” which implies a lot more openness to organization than Honda, for example, has indicated. But Southern workers seem to be largely ambivalent towards the UAW, so just because VW could let organizers into the plant doesn’t mean workers will necessarily vote for union representation. Meanwhile, there’s no word on how a possible UAW organizing campaign could affect a possible new VW/Audi assembly and engine plant that is being considered for the US according to AN [sub]. With Audi execs insisting on the need for more US production capacity, a UAW win in a Volkswagen vote could have serious implications for the firm’s future expansion.
Hyundai and Kia are capitalizing on their strong sales momentum in the US market, as Reuters reports
South Korea’s Hyundai Motor Group said on Thursday it was aiming to raise its U.S. auto sales by 18.2 percent this year to 1.06 million vehicles, up from its previous target of 1.01 million.
The announcement was made during a visit to the United States by Chung Mong-koo, chairman of the world’s fifth-biggest automotive group which includes Hyundai Motor and Kia Motors .
Hyundai and Kia’s combined US market share hit 10.1 percent as of May this year, up from 7.7 percent last year and 3.3 percent in 2001. And with the group’s sales seemingly limited only by its ability to produce cars fast enough, Reuters notes that the Korean media is rife with speculation that Hyundai could open another US factory. The company denies any such plans exist, but if its sales keep growing, more US-market production is only a matter of time.
Almost two months ago, Saab was able to restart production after Gemini Investment Fund extended a €30m six-month convertible loan to the struggling Swedish automaker. Now, after another shutdown, it seems that Gemini has once again ridden to Saab’s rescue, as the company announces another six-month convertible loan from Gemini.
Swedish Automobile N.V. (SWAN) announces that it entered into a EUR 25 million convertible bridge loan agreement with Gemini Investment Fund Limited (Gemini), thereby securing additional short-term funding.
SWAN entered into a EUR 25 million convertible bridge loan agreement with Gemini with a 6 months maturity. The interest rate of the loan is 10% per annum and the conversion price is EUR 1.38 per share (the volume weighted average price over the past 10 trading days). SWAN may at any time during the loan’s term redeem it without penalty and it intends to do so once the funding from Pang Da and Youngman is received, in which case no dilution as a result of this bridge loan will occur.
Attention Chinese, Swedish and European Investment Bank regulators: you’d better cut through that red tape and approve the Pang Da and Youngman investments post-haste, or Saab will be back in the drink when these short-term loans mature. After all, hasn’t Valdimir Antonov been waiting for approval to buy into Saab since.. oh, 2009?
With a new Viper being readied for a 2012 auto show debut ahead of a 2013 launch, Automotive News [sub]’s Rick Kranz has discovered something of an issue in the development process: suppliers don’t want in.
Ralph Gilles, who heads Chrysler Group’s design organization and SRT, the automaker’s performance group, says many suppliers said “thanks, but no thanks” when the automaker knocked on their doors.
“It has been tough to get low-volume suppliers,” Gilles says. “We have had a few hiccups here and there as we get suppliers. That type of fringe business has really dwindled. A lot of people are looking for big accounts now, but now that is behind us.”
Kranz blames low volume (2,103 units in its best year, 392 units last year) and supplier consolidation for the “hiccups.” But as it so happens, this has been a recurring problem for the Viper since day one…
When asked by thenational.ae if he preferred to drive his McLaren F1 or Mclaren-Mercedes SLR to work everyday, the man who designed both legendary hypercars, Gordon Murray demurs:
I wouldn’t say the SLR is quite an everyday car but I certainly like to drive it to work. But for me, despite all those cars and my single-seater Rocket [a car he privately designed], it’s the [eight year-old Smart Roadster] I’m most taken with. For one, it’s a great-looking car. It has a power roof, heated seats and air con, and it all weighs just 830kg. In fact, it’s got all you’d want from a car. It nips around corners and it’s fun to drive.
So, other than proving that Murray has exquisite taste (I’d kill you all for a Brabus Smart Roadster Coupe), what’s the point? That, having been there and done that in the world of high performance, Murray’s taking on a less obviously sexy but ultimately significant project that first occurred to him in a traffic jam back in 1993: the T.25 and T.27 city cars. We’ve written about Murray’s T.25 before, but the real news today is the release of specs for the T.27, an all-electric version of the tiny three-seater. And yes, it weighs 1,500 lbs on the nose (including batteries), and ekes 100 miles of range out of just 12 kWh. That beats the efficiency of competitors like the Smart EV (by 29%), the Mitsubishi iMiEV (by 36%) and MINI E (by 86%). So, how does it do it?
Saab has reached a deal to sell 50.1% of its real estate holdings to a consortium led by Hemfosa Fastigheter AB, for about $40m, and has also received an order for $18.4m worth of vehicles from an unnamed Chinese firm according to AN [sub], giving the dead-alive Swedish firm the faintest, cruelest glimmer of hope. The real estate deal was for about a third less than the property had previously been valued at, and still needs to be approved by the Swedish Debt Office, the EIB and GM. Meanwhile, the real struggle is ongoing, as a Saab spokesperson tells Reuters that
Today’s news takes us a good way in the right direction, but it is the agreement (with suppliers) that matters and only then will we be able to communicate a date when we can restart production
But suppliers aren’t even the first in line for Saab’s much-needed cash injection: that goes to workers who are promising to take the company into bankruptcy if they aren’t paid soon. These two recent deals should be enough to pay worker salaries through July, but if suppliers aren’t brought back as well to restart production, the bulk sale and an earlier order from PangDa will never be filled. And those suppliers are currently mulling over an offer of ten percent of what they are owed until the Chinese inject more cash later in the year… not the greatest deal ever. Meanwhile, Saab says
There are other initiatives still being pursued. There is not much we can say about that until we have something concrete to communicate
Like what? What could there possibly be to communicate?
Every June cars.com trolls the protectionist elements of the car guy world by trotting out its “American Made Index,” which has been topped by the Toyota Camry for the third year running. So what’s cars.com’s criteria for the American Made Index? According to a presser
Cars.com’s annual American-Made Index ranks the most-American vehicles based on percentage of their parts that are made domestically, where they are assembled and how many are sold to U.S. buyers.
That last bit goes a long way towards explaining the Camry/Accord dominance: this is not just a measure of assembly and “domestic parts content” (which NHTSA strangely counts as parts made in the US or Canada), but popularity with Americans as well. If, on the other hand, you just look at the raw 2011 “domestic” parts content percentages… well, it tells a slightly different story.
Clear your mind, look deep into the results of the 2011 JD Power Initial Quality Survey, and what will you find? Based on my limited understanding of the human mind, I’d guess “something that helps prop up your established perspective on the world of cars.” But hey, feel free to prove me wrong. Meanwhile, lest we take any of this too seriously, let’s remember the wise words of Michael Karesh, who noted on last year’s results that
J.D. Power continues to assert that a low number of problems during the first 90 days of ownership should allay any concerns a car buyer might have about a car’s quality. But of course car buyers are most concerned about how a car will hold up in the long run.
Initial quality sometimes correlates with long-term durability, but there’s only a partial connection between the two. Initial quality can result from solid engineering, which will also benefit long-term durability. But strong initial quality can also follow from thorough inspections at the plant or dealer. Such inspections can catch and fix problems that happen to occur before delivery, but aren’t likely to reduce problems down the road.
[UPDATE: Automotive News [sub] reports that Linc workers voted “overwhelmingly” to authorize a strike, noting
With the strike authorization, the local can send notice to LINC that workers could strike after five business days if progress isn’t made toward a contract.
Ninety-eight percent of the 88 workers who voted yesterday agreed to authorize a strike, a representative at the union hall said this morning.
We’ve been watching the drama at GM’s Lake Orion plant unfold for some time now, as an “innovative labor practices” agreement between the UAW, GM and the government has already drawn UAW protests and NLRB complaints, as well as increased backlash against the union’s two-tier wage structure. Thus far GM had been able to prevent Tier One workers from being forced into the second tier, by shuffling them off to the Flint HD pickup plant. But with GM’s truck inventory soaring to “Old GM” levels, Flint is being idled, and those “Tier One Gypsies” are once again facing the choice between moving to some other plant or accepting a 50% paycut to return to Orion. And now, another labor issue is raising its ugly head, as Crainsdetroit reports that
About 125 workers for a critical supplier [Linc Logistics] inside the General Motors Co. Orion Assembly Plant are taking a strike authorization vote today as a means of accelerating contract talks.
No good can possibly come from a story that starts with “Chrysler has been bumping along on a couple of flat tires in recent years.” And it doesn’t. After recommending only one Chrysler model, the RAM 1500 pickup, over the last three years, Consumer Reports tested eight Chrysler models to see how they have improved. Read More >
Mazda has confirmed [to Reuters via Automotive News [sub]] what has been rumored for a while (especially in the Mexican media): open a new plant in Guanajuato, Mexico, near VW and GM’s Silao facilities. Production starts this fall and the line starts rolling in 2013, according to “people familiar with the matter.” In the meantime, Mazda6 production at the Flat Rock, MI joint venture plant continues until mid-2012, at which point Mazda will make a decision that it’s still “studying,” but it won’t be building the Mazda6. Interestingly, Mazda’s new Mexican plant is only being built for “at least” 50k units of
compact cars, initially for sale in Mexico and South America, and eventually export to North America.
Could the next-generation of Mazda midsizers be hecho en Mexico as well? It’s possible, but we won’t know until Mazda announces more details about the new factory. Meanwhile, nobody’s expecting Mazda to hang around Flat Rock… least of all Ford.
“We’ve now been able to secure production capacity to safely say that we will surpass 600,000 units,” Mike O’Brien, Hyundai’s vice president for U.S. corporate and product planning, told reporters here Tuesday.
The South Korea-based company said in January it didn’t have enough production capacity to meet that level of U.S. sales.
Since then, Hyundai has raised output at its Montgomery, Ala., plant that makes Sonatas and Elantras, and it will also have a larger supply of the new Accent subcompact from South Korea than initially planned
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