Automotive News Europe Table of Contents

For the Week of June 23, 2008




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Denso Europe sees slowdown

After five years of rapid growth, Denso Europe's sales will stall in 2008. "This year will be very difficult," Denso Europe President Shigehiro Nishimura told Automotive News Europe. That is bad news for parent Denso Corp., which due to strong 2007 results from its European and Asia-Oceania units passed Robert Bosch to become No. 1 in Automotive News Europe's ranking of the top 100 global suppliers. [SUB] June 23 11:05 CET

Ministers to discuss phase in of CO2 limits

Europe's environment ministers will meet July 1 to discuss planned new CO2 emission limits. The ministers will discuss a time frame for a European Commission proposal to cut average CO2 emissions to 120 grams per kilometer from about 160g/km now. [SUB] June 23 11:01 CET

Porsche managers get ready for VW era

With Porsche close to majority control of Volkswagen group, Porsche CEO Wendelin Wiedeking is putting in place the structure that will manage the new automotive powerhouse. Wiedeking is moving 60 to 80 employees to the new Porsche Automobil Holding SE, the company that legally owns Porsche's stake in Volkswagen as well as its 100 percent holding in sports car maker Porsche. [SUB] June 23 11:02 CET

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Solving a space issue

As dealers battle for profitability, Cisco believes a virtual car showroom can help reduce costs and improve the car sales process. The US technology company argues that car dealerships will have to embrace the world of Web 2.0 as they deal with rising real estate costs and explosive growth of new models. [SUB] June 23 10:44 CET

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At GM Europe, Alstrom leaves, McMillen arrives

General Motors veteran Tom McMillen is GM Europe's new head of purchasing. McMillen succeeds Eric Alstrom, who left GM to join German automotive supplier Benteler Automotive. [SUB] June 23 10:20 CET

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CLEPA CEO: Retrofitting can cut emissions

Retrofitting cars that are on the road with new technologies would accelerate efforts to reduce CO2 emissions, the head of Europe's supplier-industry association, CLEPA, said. "I think it's a very good idea to spend a bit more time thinking about retrofitting," Lars Holmqvist said at CLEPA's annual meeting here earlier this month. [SUB] June 23 10:29 CET

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CO2 goals don't scare VW execs

Volkswagen Supervisory Board Chairman Ferdinand Piëch said Europe's largest automaker can easily meet planned limits on fleet CO2 emissions. "Volkswagen doesn't have a problem," Piëch told the Sunday edition of Germany's Frankfurter Allgemeine newspaper, June 8. Noting that the carmaker has to reduce fleetwide CO2 emissions 20 percent by 2012 under planned EU legislation, he said, "I think we can achieve the limits in two years." [SUB] June 23 10:31 CET

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Exeo will join Seat's lineup

Seat's new upper-medium car will be called the Exeo. Seat, Volkswagen group's Spanish brand, will launch sales of the Exeo early next year. It will be a competitor to the Ford Mondeo, Renault Laguna and Peugeot 407. [SUB] June 23 10:23 CET

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Lancia feels China's wrath over Delta ad

A television ad for Lancia's new Delta puts the car in the middle of Tibet's fight for independence from China. That is a place Lancia parent Fiat group does not want to be. Following strong criticism of the commercial in the Chinese media, Fiat last Friday issued an apology. [SUB] June 23 10:27 CET

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VW names new chief for core brand in Russia

Frank Wittemann will be the new head of Volkswagen brand in Russia, effective July 31. Currently, Wittemann, 38, is in charge of VW's retail development and strategic development. Wittemann will replace Denis Petrunin, 41, who headed VW brand in Russia for little more than a year. [SUB] June 23 10:24 CET

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BMW is able to grow in US, sales boss says

Despite economic headwinds, BMW sees growth potential in the US, Ian Robertson, the company's head of sales and marketing, said. In BMW's home market in Germany, luxury vehicles account for 30 percent of all automotive sales. By comparison, the US premium segment is only 14 percent of total sales, Robertson said. [SUB] June 23 09:51 CET

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Low-cost Mini lookalike due to launch in China

The Mini will soon face a similar looking competitor in China: the Lifan 320. Chongqing Lifan Holdings says it plans to start mass production of the car in September. Initially, the car only will be sold in China. Without being more specific, the company said it might export the model at some time in the future. [SUB] June 23 09:50 CET

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PSA to more than double dealers in Russia

PSA/Peugeot-Citroen will expand its dealer network in Russia in the run-up to the 2010 opening of its new 470 million euros joint assembly plant with Mitsubishi. Peugeot plans to have at least 100 Russian dealers by 2010. [SUB] June 23 09:48 CET

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Psst, want to see next 7 series?

BMW is giving selected potential customers a sneak preview of its new 7 series, four months ahead of the upper-premium sedan's planned launch. "We want to create some excitement about this car," BMW spokesman Alexander Bilgeri said. [SUB] June 23 09:54 CET

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Q&A: PATRICK LE QUEMENT

Le Quement promises 'seductive' Renault for India

Renault has put emerging markets at the center of its global strategy. Design chief Patrick Le Quement discussed the challenges of designing for emerging markets. [SUB] June 23 09:25 CET

Skill shortage hits Hyundai Czech plant

Hiring at Hyundai's new 1.1 billion euros Czech plant is making it even harder to find skilled workers. Hyundai is nearly halfway to its goal of hiring 1,509 workers this year for its plant, which opens early next year in Nosovice, about 20km outside Ostrava. [SUB] June 23 09:23 CET

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More gains for Renault in Romania

Renault is rapidly expanding engineering activities in Romania to speed up vehicle development and lower costs. The French carmaker says its technology center here is now playing a central engineering role for all models based on the low-cost Logan platform. [SUB] June 23 09:11 CET

Renault adds Logan suppliers

Renault has added 12 new suppliers to its low-cost Logan project, bringing locally or regionally sourced content at its manufacturing site in Pitesti, Romania, above 90 percent. [SUB] June 23 09:09 CET

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Rolf invests heavily in Russian dealers

The privately held Rolf Group will invest more than $150 million (97 million euros) annually in new dealerships in Russia over the coming years, Rolf Retail CEO Vardan Dashtoyan told Automotive News Europe. "We are going to invest $157 million in 2008 in seven dealerships and have planned similar amounts for the following years," Dashtoyan said. [SUB] June 23 08:52 CET

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DEALER TALK FROM THE TOP

Rolf wins from being first in Russia

Rolf Group, Russia's largest importer of foreign cars, is growing rapidly. It hopes to close negotiations to buy three dealers in the next two weeks and will then operate 24 dealerships in Russia. CEO Nick Hawkins says Rolf also is building seven more dealers and is looking at possibly acquiring "another five or six." [SUB] June 23 08:54 CET

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DEALER TALK FROM THE TOP

Germany's top dealer group looks East

AVAG Holding CEO Volker Borkowski says his company will expand in central and eastern Europe where new-car sales will rise faster than in western Europe. But the dealer group is not looking at Russia because of the immense size of that market. [SUB] June 23 08:27 CET

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DEALER TALK FROM THE TOP

Shift to greener cars hits Swedish giant Bilia

Bilia, Scandinavia's biggest dealer group, had a rough first quarter after many customers switched from buying gasoline-powered cars to diesels or ethanol models. In addition, its important service business in Denmark declined. As a result, Bilia swung to a 15 million krona (1.6 million euros) loss in the first quarter from a year-earlier profit of 31 million kronor. [SUB] June 23 08:19 CET

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DEALER TALK FROM THE TOP

Stern CEO aims to double sales

Stern Groep plans to nearly double its annual new-car sales to 50,000 by 2010 from 26,500 last year and boost its revenue to 1.8 billion euros from 1 billion euros. The Amsterdam-based company aims to grow by increasing its market share in the Netherlands. CEO Henk van der Kwast, 54, talked about the company's next moves. [SUB] June 23 08:23 CET

OPINION

Don't worry about regulation, just get on with it

The regulatory confusion over car retailing and CO2 emissions is threatening the competitiveness of the European auto industry. Automakers and dealers are unsure what will happen to Europe's 6-year-old car-retailing regime after 2010. Though most agree that it would be best to leave things as they are, the European Commission is determined to make some changes. Second, car companies and suppliers know they'll have to cut CO2 emissions. [SUB] June 23 07:46 CET

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LUCA CIFERRI

Going electric: a new debate on an old issue

In a couple of years -- 2010 to be precise, plug-in hybrids and pure electric cars will be on sale everywhere. These zero-emission vehicles will help improve air quality in polluted city centers. But what about the environment as a whole Luca Ciferri is chief correspondent of Automotive News Europe. [SUB] June 23 07:43 CET

LETTER TO THE EDITOR

More praise for ex-VW boss

In reference to Jason Stein's column on former VW group CEO Bernd Pischetsrieder's effect on Volkswagen's financial picture (ANE, May 12), I would like to say thanks for the balanced and fair work. [SUB] June 23 07:41 CET

LETTER TO THE EDITOR

Reader defends future of diesels

Douglas A. Bolduc's column "An Uneasy Transition" (ANE, June 9) is off the mark. [SUB] June 23 07:40 CET

LETTER TO THE EDITOR

Writer: Multifranchising works

In a recent story, Automotive News Europe wrote that "multifranchise locations have been confined to low-volume franchises in low-volume markets." I think not. I could take you to multifranchise locations here in the UK where Skodas are sold alongside Mazdas and Fords alongside Fiats. [SUB] June 23 07:38 CET

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CONFIDENTIAL

Black is the new silver

Black is the top color choice for Europe's car buyers, automotive paint supplier DuPont reports. About a quarter of all cars now sold in Europe are black. Previously silver was the No. 1 color choice. [SUB] June 23 07:13 CET

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CONFIDENTIAL

Endless summer

When 82-year-old Hugh Martin-Leake wrote to the UK Daihatsu distributor to ask if he and his 95-year-old friend, Rosemary Blakiston, were the oldest customers for the Copen convertible, the company recognized a great chance to promote the ageless appeal of the car. [SUB] June 23 07:15 CET

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QUESTIONNAIRE

Fiat's Miniero likes Italian rockers, Greek thinkers

Fiat group CEO Sergio Marchionne gave Franco Miniero a daunting challenge eight months ago: Lift Fiat Professional's sales to 500,000 units by 2010. When Miniero was appointed CEO of Fiat's light-commercial-vehicle division in December 2006, the unit finished the year with 369,000 sales. In 2007, Miniero increased sales 17.3 percent, to about 433,000 units. Now he plans to reach the 2010 target a year early. [SUB] June 23 07:20 CET

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CONFIDENTIAL

Hybrid assault vehicle

UK-based auto technology specialist Ricardo is using its expertise in making cars safer to help protect soldiers from roadside bombs and mines. Working for an unnamed branch of the military, Ricardo is using automotive design software to simulate the effects of blasts to vehicles used by soldiers. The aim is to develop dedicated vehicle structures capable of withstanding explosions. [SUB] June 23 07:16 CET

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CONFIDENTIAL

Superstars in supercars

A person's ability to rise up from obscurity often can be traced through car ownership. [SUB] June 23 07:18 CET

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Q&A: MIKE ARCAMONE

GM Europe's Arcamone talks about advanced propulsion

The word powertrain is becoming outdated. General Motors Powertrain Europe Vice President Mike Arcamone says engineers like him are working on advanced propulsion technology. The challenge for him and the auto industry is meeting tougher emission standards worldwide. [SUB] June 23 06:51 CET

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Nissan seeks tech-savvy suppliers

Nissan will integrate suppliers in plans to introduce 15 new technologies a year starting in 2009. "There will be some key technological areas where we will want to pilot development up to the manufacturing process, then we will hand it over to suppliers," Mitsuhiko Yamashita, Nissan's executive vice president in charge of r&d, said during a press briefing. [SUB] June 23 06:53 CET

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SPOTLIGHT ON TECHNOLOGY

Catching carbon before it burns

With many countries planning legislation to slash CO2 emissions from cars and trucks, developing low-CO2 cars has become the No. 1 priority for auto industry engineers. Scientists are looking at ways to capture a vehicle's CO2 before it escapes out of the exhaust and into the atmosphere. [SUB] June 23 06:32 CET

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SPOTLIGHT ON TECHNOLOGY

Lotus supports move to methanol

Experts at Lotus believe that methanol could hold the key to carbon-neutral vehicles. [SUB] June 23 06:30 CET

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At Toyota, more hybrids to come

Toyota Motor last week promised two new hybrid vehicles. The two hybrids --- one badged a Toyota and the other a Lexus --- will debut in January at the Detroit auto show and come in addition to the third-generation Prius, also due in 2009. Masatami Takimoto, executive vice president in charge of r&d, did not say when the two new vehicles are due in showrooms. [SUB] June 23 06:10 CET

Beijing Auto's supplier arm to double annual sales by 2010

Beijing Hainachuan Automotive Parts, the supplier subsidiary of Beijing Automotive Industry Holding, aims to double its annual sales to 10 billion yuan (about 940.8 million euros) by 2010. Sales of the subsidiary are estimated to be 4.6 billion yuan in 2008, says Liu Yinan, general manager of Hainachuan. [SUB] June 23 06:08 CET

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LATEST LAUNCHES

Koleos is not too late, exec says

Renault is a late entrant in the medium SUV segment with its new Koleos. But that will not be a problem, a company executive says. Florent Troubat, Renault's senior project manager for the SUV, said the Koleos has a less aggressive design than most SUVs, which will helps its sales. [SUB] June 23 06:01 CET

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LATEST LAUNCHES

Porsche 911 gets greener

The new Porsche 911 premium coupe will be the sports car maker's first model to offer a dual-clutch transmission. It also is the first 911 to have direct-injection engines instead of naturally aspirated powertrains. The technologies help the sixth-generation 911 to cut CO2 emissions by 15 percent compared with the current model. [SUB] June 23 06:01 CET

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ON THE LINE WITH THE BOSS

Meet the meticulous Mr. Schmitt

When Erich Schmitt arrived at Seat in October 2006, he had one request: Wash the flags outside the building. "Seat was full of color and possibilities, so everything needed to have that kind of flavor," Schmitt said. "We needed to show our quality right at the front door." Now the flags are washed every two weeks. [SUB] June 23 06:01 CET

Germany will have CO2-based vehicle tax

Germany's fractious coalition government has agreed on a plan to tax new vehicles on the basis of their carbon emissions instead of by engine size in an attempt to encourage the purchase of cars that pollute less. Under an accord announced June 12 between Chancellor Angela Merkel's Christian Democrats and the Social Democrats, the new tax will take effect on January 1, 2010. [SUB] June 23 06:01 CET

Pininfarina relies more on business from China

China has become a key market for Pininfarina. Of all the contracts the Italian design and engineering company signed in 2007, 30 percent came from Chinese clients, the company says. [SUB] June 23 06:01 CET

Porsche Cayenne will get a diesel

Porsche's Cayenne will come with an optional 240-hp V-6 diesel beginning next March. The engine will be sourced from Volkswagen group subsidiary Audi. [SUB] June 23 06:01 CET

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ZF promises more efficient transmissions

Performance will take a back seat to fuel economy in future generations of ZF Friedrichshafen's automatic transmissions. So says Harald Naunheimer, director of automatic transmission product development for the German driveline and chassis supplier. [SUB] June 23 06:01 CET

TOP GLOBAL SUPPLIERS

Denso rides Toyota, passes Bosch to become top supplier

Riding high on the success of Toyota Motor, Denso of Japan has claimed the crown as the world's largest supplier of parts to automakers. Robert Bosch of Germany finished second after three consecutive years in the top spot. Continental of Germany made the biggest gain. [SUB] June 23 06:01 CET

Spartanburg plant gives buyers an extra day to tweak orders

If you build premium vehicles for picky customers, you want to give them as much choice as possible. BMW lets customers make changes to their orders until just before production begins. Since January, BMW's factory here has shaved a full day from its so-called frozen period. [SUB] June 23 06:01 CET

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Tougher goals set by BMW for its factories

BMW's production chief has set a new goal for the automaker's factories worldwide. From now on, Frank-Peter Arndt expects plants to show efficiency gains of 7 percent to 8 percent each year. That is up from the 5 percent that BMW demanded from its factories in the past, Arndt told Automotive News Europe. [SUB] June 23 06:01 CET

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Audi's US chief: Brand can handle gas hike

Audi is well positioned to cope with the recent rise in fuel prices in the US, said its top executive there. But the German luxury brand is still pondering whether US manufacturing is the answer to its currency exchange rate problems, Johan de Nysschen, head of Audi of America, said. [SUB] June 23 06:01 CET

Changan to assemble cars in Iran

Chongqing Changan Automobile will start assembling small cars in Iran in the first half of 2009. Changan and private Iranian automaker Pars Industrial Development Foundation will build a plant in Soveh, which is about 100km from Teheran, to assemble Changan's Benni small cars. [SUB] June 23 06:01 CET