GM Starts production of Lithium-ion Batteries at its Brownstown Plant

General Motors has started producing lithium-ion batteries in its Brownstown plant upon seeing huge demand for electric cars. Car makers are now turning their attention to the flourishing electric car market which has been growing steadily. Reports also claim that growth of electric vehicles in the auto market will be increased significantly over the next decade.

Naturally, GM also looks to strengthen its presence in electric car market. GM showed its Chevrolet Volt electric car, first from GM, at the North American International Auto Show in 2007. The new 160,000-square-foot plant at Brownstown costs $43-million and will be used for producing lithium-ion batteries for the electric vehicles like Chevrolet Volt and others.

Related article:

theoaklandpress

Can US Auto Industry Bounce Back in 2010?

General Motors and Chrysler almost died in 2009 while Ford could just hang on. Now, 2010 is starting and a new year should bring some freshness in the US auto industry. Well, it will be still a tough year because American companies suffered extensively last year. So, first of all, they have to come out from the bad condition and then they can think of a better time.

Asian automakers suffered too and they will be eager to make up for the losses. I think that this year, the main battleground among the car companies will be Asian countries like India and China. Both of them have huge room for growth. 

Honda to Open up a New Plant in China to Match the Growing Domestic Demand

China is definitely one of the most lucrative automobile markets in the world as it is growing rapidly. So, it is natural that automakers would like to have a strong foothold in China’s auto market. In fact, China is one of the fastest growing auto markets in the world. Keeping this in mind, Japanese auto maker Honda is now planning to open up a new plant in China, having seen demand rising in India.

Honda already has 4 car plants in China and the new plant will help Honda increase its production capacity in China significantly. This fifth plant will churn out 120,000 units per year, and thus, leading Honda’s total China production to 730,000 per year, 20% increase from the current capacity of production.

It is pretty much understandable that Honda does not want to lose its market to any other automaker in this highly potential Chinese market. After the economic recession is over, China’s auto market is gradually becoming stronger and stronger as government has also taken some good initiatives.

Related article:

foxbusiness

Hyundai Motors Marked 48.9% Growth in October Sales in the US

Hyundai Motors experienced a surge in its October sales in the US market. In fact, their 48.9% year-on-year growth in October has been highest among the Asian automakers. The South Korean company has sold 31,005 units in October, a sharp increase from 20,820 vehicles sold during the same month last year. Dave Zuchowski, the vice president of sales in Hyundai, hopes that November and December sales will be very good for the company.

With US economy is recovering strongly following a devastating recession, US auto industry is now in its way to make a turnaround. Reports available in the media indicate a GDP growth of 3.5% in US economy in the third quarter of the year. Kia Motors Corp., the affiliate of Hyundai, has also recorded a 45% growth in October sales. Largest automaker Toyota has seen just 1 percent increase in its sales last month, while Nissan Motors projected a 5.6 percent increase in its monthly sales in October. However, Honda’s October sales decreased 0.4%.

However, overall the market is gradually becoming stronger with demands soaring up ahead of Christmas.

Related article:

bloomberg

Honda CEO Hopeful about Automobile Industry in 2009-10 Fiscal Year

Automobile industry is suffering a lot due to the global economic recession. Leading car makers like Toyota and General Motors are facing operating loses due to huge fall in demand. General Motors even received government stimulus to survive in the market. Still, Takeo Fukui, the CEO of Honda, has expressed his hope to see a rise in demand in the second half of the current fiscal years ending to 2010.

Despite the economic recession, Honda Motor Inc. could successfully remain profitable in the last fiscal because of decreasing warranty costs. Fukui thinks that the current fiscal year would be better than the last year with demand increasing slightly.

Well, American government is trying heart and soul to come out of ongoing economic slowdown as soon as possible by investing in business companies in the form of stimulus and thus it seems that the condition might be improved very soon, but it is also true that there could be some dangers as well in future because the government is trying to solve the economic problem in an artificial way.

Related article:

Motor Trend

Car Sales in China Increased Significantly upon Government Stimulus

Domestic car sales in China have been increased significantly in February 2009 as the China Association of Automobile Manufacturers (CAAM) recorded 12.4 percent month-on-month increase and 24.7 percent year-on-year increase. In February, 827,600 units were sold in China. Government’s stimulus policy was instrumental behind the surging car sales in Chinese domestic market. China government declared in January that people would need to pay only half the purchase tax for the passenger cars with less than 1.6 liters engines. Passenger vehicles with engines of less than 1.6 liters contributed 70 percent of the total sales of passenger car market. Domestic car production in China has also increased by about 23 percent last month compared to the previous month of this year and the same period of the last month.

It is really very surprising to see such an increase in sales of Chinese car market, while the global auto market is struggling with slowed economy and the recession across the world now seems to be aggravated day by day. I think, this kind of government help is needed for those auto markets which have been badly hit by the economic slowdown across the world.

Related article:

Xinhua net

Toyota Facing First Operational Loss in 59 Years

Japanese carmaker Toyota Motor Corp. is facing a serious problem as it is losing its share in the US car market, the largest car market in the world. The economic recession is getting aggravated day by day and the global auto market is having its impact at this moment. Toyota recorded 40% drop in the US market as the demand fell in the US car market significantly. Toyota is now going to see its first operational loss in 59 years due to economic slowdown world wide. The situation has been intense for the Japanese automaker due to surging Japanese currency against foreign currencies.

Well, other automakers are also facing the same problem as overall car demand fell in the US car market. Japan’s second largest automaker, Honda, has seen 38 percent fall in its US sales. Nissan Motor’s sales drop by 37 percent, while General Motors experienced 53 percent drop in its sales. GM and Chrysle are surviving on government bailout at this moment.

Well, I think, Japanese government should also provide similar help to Toyota because if the company drops its domestic production, many people in Japan will be unemployed and that would be an added pressure for Japanese government. Moreover, Toyota should also focus on low-cost car models which will have huge demand in this time of economic recession. Toyota should also give more importance on the fast-growing markets like India, China and Russia. Toyota has recently announced that it would set up its second manufacturing plant in India, looking to gain more advantage of India’s cheap labor and low production cost. By reducing operational cost, Toyota can offer more competitive price for its products in the US and European markets.

Related article:

Bloomberg

Global Auto Makers in a Race to Produce Zero-Emission Hybrid Car

There is now a race observed among the auto makers to make zero-emission hybrid cars. It is very natural too because the demand for zero-emission hybrid cars, according to experts, is increasing rapidly. Even the demand for such cars might outpace the supply in the market in the next few years. So, naturally auto makers are going after announcing their plans to get into production of hybrid cars which have zero-emission quality.

At the recently held Paris Motor Show, all the global auto makers showed their electricity-run vehicle to the consumers, an attempt to attract the attention of the consumers from now on so that they can capture a broader chunk of share in the hybrid car market. These cars take electric charges from a socket. You can recharge your car both at home as well as in the loading station.

Related article:

Herald Sun

Bad news for Auto Companies in US market

I don’t need to remind you that USA is the most important car market in the world. It is also the largest car market. So, the main focus of every auto company in the world is to get a good market share in this market. Now, figures are coming out and it seems that July 2008 was a disaster for most Auto companies. Car sales decreased by 13% in July 2008 compared to July 2007.

Los Angeles Times wrote:

Americans bought 1.14 million vehicles last month, 13% fewer than a year earlier. Among the hardest hit companies were those that manufacture a lot of trucks: Chrysler was down 29%, while Ford Motor Co. and Toyota Motor Corp. also declined by double digits, according to Autodata Corp.
But when it came to bad news, it was hard to beat General Motors Corp. GM not only saw sales slide 26% in July, but it also reported its third-worst earnings in history, losing $15.5 billion in the second quarter.

I am not that much shocked with this news because there is an economic slow-down in USA. So, there is no wonder that it has affected the car market too.

Toyota Raised Wages by 1000 Yen in Japan

Toyota failed to meet the demand of Union wage in Japan. Wage union demanded increase by 1,500 yen in a high inflation situation Japan faced recently. Toyota said that they would be capable of increasing the wages by 1,000 yen per month. The prices of consumers rose by 0.8 percent in January in the country. Prime Minister Yasuo Fukuda also requested the companies to increase their wages so that the labor class people have enough purchasing ability.

Bloomberg reported:

``1,000 yen? That's a black joke. Is that going to buy you a new TV or a new DVD player? I don't think so,'' said Takehiro Sato, chief Japan economist at Morgan Stanley in Tokyo. ``The cost of living is obviously rising higher. That means real income is actually dropping.''

Japan's Prime Minister Fukuda on March 6 asked the Keidanren, Japan's biggest business lobby, to step up efforts to raise wages and stimulate consumer spending.

The current is not going to be a great year for the auto makers in the world as they are facing high price of gasoline and fuel in the international market. So, Toyota seems to go through a tough time this year. Now, let us see if the company can cope up with the situation well.

General Motors and Ford to Suffer Share Drop

The automotive sector of US will go through a rough patch in 2008 as the auto makers are facing high gasoline prices and the tightness in the credit market. Morgan Stanley 2008 U.S. industry forecast shows that GM and Ford will experience loss this year. General Motors is also facing strike of major suppliers. So, it is almost certain that Auto makers would have a tough time this year.

Guardian reported:

"Our industry view is based on expectations of lukewarm retail demand, weak mix, high raw material prices offset by growing strength in international markets and some progress toward attacking structural issues including overcapacity and legacy costs," Morgan Stanley said in a note to clients.

So, the shares of the companies will also be dropped significantly this year. GM would see 7.6 percent drop, while Ford will experience 8.07 percent drop this year. US economy is in recession which is affecting the automotive market of the country. Now, let us see how the companies like GM and Ford cope up with the situation and go on with their business activities.

BMW Expanding South Carolina Plant by Increasing Workforce and Space

BMW is going to increase its production in South Carolina plant. With the expansion of the plant, the number of workforce will also be increased by 500 in the plant. The plant will be enlarged by 1.2 million square feet in terms of production space. BMW board member for global production, Frank-Peter Arndt said that the plant will be used for the production of the X3 and X5 sport utilities and X6 sports coupe.

New York Times reported:

Mr. Arndt said BMW would add a new generation of its X3 sport utility vehicles to the site, making the plant the exclusive source for the X3 and X5 sport utilities, as well as the X6 sports coupe introduced this year at the Detroit auto show.

BMW recently declared that it had plans to reduce its workforce by 5000 in Germany, 600 in other countries, which is 7.5 percent of its total workforce. Now, BMW is increasing its production in South Carolina. BMW might have enough ground to take up such decisions. May be production cost of the units is less in South Carolina than that of Germany or may be BMW is going to manufacture the sport utility car for a particular segment of people in the country. Now, let us see if BMW can capitalize fully on the expansion of the South Carolina plant of BMW.

BMW Comes up with an Exclusive Offer for Motor Cycle Fans of Britain

Will you be excited if you are offered to learn some soccer skills from a star soccer player only for buying a soccer ball of a particular company? Of course, you will be. Well, it may not be possible at this moment as no company has not made this kind of offer ever as far as I know. However, it is possible for you to learn some off road motor-cycling skills from six times Dakar racing champion, Simon Pavey. All you need to do is to buy a motor cycle of a specific model of BMW.

This exclusive offer is limited to some particular models of BMW motor cycles. These are G650, F800GS, R1200GS, and the HP2 Enduro. The price would be a bit high definitely. The prices of these models are ranging from about $450 to $2,200. There would be variety of courses which will be run for different durations. However, this offer is now only available in Britain until now. If BMW gets satisfactory response then they will definitely think about it beyond Britain. Now, let us see if BMW can increase sales in the British territory though this offer. Only time will answer it.

Related article:
CMG Online

BMW Planning to Introduce Ecologically Compatible Car in US Market This Year

BMW is planning to introduce an electric car in the USA market this year. The German based auto maker, BMW, is widely known for their luxury cars. Now, the company seems to give focus on ecology. That is why; BMW is trying to manufacture the cars which will not need fuel or oil to run by. However, the company is not yet confirmed if BMW will take up the project alone or along with any other company.

BMW Chief executive, Norbert Reithofer, said that BMW would be considered a large vehicle manufacturer in the US from 2012. BMW is famous for their luxury cars and motor cycles across the world. However, now the company is trying to focus on environment friendly cars, which I think, will be beneficial for the company in the long run because people are getting habituated to the cars of this kind. However, now let us see if BMW becomes as successful on ecologically compatible cars as they have been on their previous marques.

Related article:
Forbes

Racer Mat Jackson Receives Backing from BMW

Mat Jackson, British Touring Car Championship independent, has received the backing from BMW. So, he will race this year under the banner of BMW. He will have ex-Andy Priaulx BMW 320si to race with this season replacing the 2006 Priaulx which he race with last year. The new car was bought from the RVM team. Jackson said that getting the headline sponsor this year has allowed them to buy the car and they will have an engineer at every race from now on. However, Jackson expressed having no financial backing from BMW, though they are endorsed by the company as BMW Dealer Team UK. He admitted that sponsors helped his team to increase the budget this season.

Autosport reported:

"Having a headline sponsor on board for the first time has given us the resources to buy the car and to have an engineer at every race, which we didn¹t have last season," said Jackson.

"As BMW Dealer Team UK, we're endorsed by BMW, but there's no financial backing there. Our sponsors are responsible for our budget increasing this season."

Jackson finished seventh in the championship of last year winning two races. Now, this year he will have a new car and an engineer in every race. So, it is expected that Mat Jackson will have better performance this year.

General Motors Planning to Sell a Plant to Oklahoma County

General Motors is selling an old plant to Oklahoma County. The 3.8 million-square-foot plant would be used by the Tinker Air Force Base. General Motors stopped its production in the plant due to decreasing sales and rising production cost. The money of the $55 million deal would be generated from bond measure. Ray Vaughn, the commissioner of Oklahoma Country said that Tinker is very important for the state as 27,000 Oklahomans from 48 different counties travel and work on base.

Chron reported:

"Tinker is so important to our entire state, with more than 27,000 Oklahomans from 48 different counties commuting and working on base," County Commissioner Ray Vaughn, who has been working on the project for more than a year, said Tuesday. "The General Motors facility served as the worksite for thousands of Oklahomans over the years and everyone involved is anxious to see Oklahomans back in this facility, helping to grow our economy."

The county would lease the property and facilities to Tinker in a "low-cost, long-term lease agreement," Vaughn said.

General Motors is one of the global auto makers widely known across the world. However, they are currently going though a slump condition in the industry with decreased sales. The plant was not active for about two years in the county. So, it seems to a realistic decision of General Motors to sell the plant.

General Motors Introducing Environment Friendly Technologies Looking for Better Times in the Industry

General Motors is hoping to get over the hard times they are currently going though by the third or fourth quarter of the year. In their pursuit to increase their sales, General Motors is offering different technologies asserted in their vehicles. The company’s North America region president, Troy A. Clarke, expressed his hope regarding the future of GM in the coming quarters of the year focusing on the technologies his company is offering.

The technology GM is offering now includes E85 ethanol. The cars which run on E85 ethanol incorporate 85 percent ethanol and 15 percent gasoline, thus making the vehicles environment friendly.

AJC.com reported:

E85 is a fuel that blends 85 percent ethanol and 15 percent gasoline. It has been praised for cutting oil consumption and burning cleaner than gasoline.

It also has been criticized for driving up food prices, because much of it in this country is made from corn, demand for which has risen as more E85 production comes online.

E85 has also been criticized for its lack of availability in most of the country. Clarke says GM wants to address that problem but needs help.

Yes, these are the problems of E85 ethanol technology which, Mr. Clarke said, GM wanted to get over but they needed the help from government. Moreover, GM has some more technologies in their list including gas-electric hybrids car. Even the fuel-run vehicles of General Motors have improved gas mileage. Clarke expressed that GM wanted to sell what people wanted, not what they wanted.

GM is now facing some problems created by auto parts suppliers’ strike. However, GM Chief Executive Richard Wagoner did not admit that it was being affected heavily on the global sales of the company as the company dealers had enough vehicles in their lots. However, the reality is that due the striker many plants of the company have been shutdown. So, though General Motors will not understand the affect of it now, it will have an impact in the long run. I think, General Motors bosses should come to a compromise with the suppliers in order ensure a flawless production in the industry.

General Motors Conducting “CHEVROLET GOLDEN VOICE OF MYSORE”

You know that Chevrolet is the widely known brand of General Motors. Now, Chevrolet along with Hoomale Creations is conducting a talent hunt competition in Mysore in order to find out the talented singers. The competition is being held in two age based categories. In the senior category, the participants must be in between 15 and 30 years of age and junior category includes those who are10-15 years old.

Starofmysore reported:

About 2,600 contestants are already participating in the competition and the entries are still open. The finals of the event will be held at Kalamandira on Apr. 20.

Vinod Kumar, Sales Manager of Chevrolet said, “General Motors, World's No. 1 carmaker, is into a lot of social activities in India and around the world. In Mysore, Chevrolet is kicking off with this programme and in future, there will be plenty."

The local officials of Chevrolet are organizing the competition. So far, they have received enough responses as about 2,600 participants have already signed for the competition. The final of the competition will take place on 20 April. Hoomale Creations is a group of talented youngsters and they have already released an album. Now, they are planning to make their second album in which the winners of the competition will feature in the album.

BMW Planning to Launch Mini Car of Rs 20 Lakh in India

BMW is now planning to launch a mini car in Indian market. The car is expected to have price tag of around Rs 20 lakh. The market analyses for the car has been completed and they are just yet to finalize the launch with company headquarter. BMW president Peter Kronchnabi said that the company would bring BMW S6 on the road by 2009. Everything seems to be right except the car price.

Indian market is a price sensitive market. Price, in most cases, is a deciding factor in India. It is true that BMW may have targeted a particular segment of buyers who would be interested to get a mini car of BMW brand Rs 20 lakh. Indian based car maker Tata Motors has launched their promised car worth of Rs. 1 lakh. The car is titled Tata Nano, which would be seen in Indian road from September this season. The car has already created huge attention among the people in the country.

Now, let us see if BMW could bring out success with the mini car in India’s competitive and price sensitive market. Only time will say everything.

Related article:
Greater Kashmir

Autoliv Received Toyota Award

Toyota has awarded Autoliv for the third successive year for its technological contribution. This year, Autoliv received the award because of its contribution to the development of inflatable side-impact curtain for Toyota Motor Corp.’s new Sequoia. The same company was awarded with the Toyota Value Improvement Award and the Technology award in 2006 and 2007 respectively.

The award has given at Toyota’s Annual Global Supplier Convention on 11 March in Nagoya, Japan. Autoliv introduced the inflatable curtain airbags for the first time in the world in 1998. The company produced 22 million inflatable curtain airbags for the cars of different models in 2007. From fall 2013, all the new cars must have side curtain airbags in 2013. This shows that Autoliv will receive a huge boost from that year. It is really praiseworthy that the company is contributing largely to the car industry and has already made an impact on it.

Related article:
tradingmarkets