|AUOTMAKERS WORLD-WIDE RE-DESIGNING THEMSELVES TO MAKE LOW COST CARS....for emerging markets in China, India and Africa....|
Posted by Vishva News Reporter on December 17, 2009
“Low-cost cars will become important
within all emerging markets.”
.....HILITES OF TODAY'S WORLD
AUTO INDUSTRY REPORT....
.....Volkswagen AG is kicking its race
to become the world's largest auto
maker into a higher gear,
hooking up in a strategic alliance with Suzuki
in the latest in a series of deals
that are transforming the
global auto industry.....
Volkswagen to attack the low-cost car market and compete with
Tata Motors Ltd. in India,
which has introduced the $2,500 (U.S.) Nano in that country.
Cars costing less than $5,000
will boast the highest growth rates
during the next 10 years...
|PVAF shares with you knowledge in all aspects of life...because life
is a holistic affair...every one thing affects every one other
things....all of Nature's and Human's creations is ordained to
co-exist...harmoniously to survive...or ultimately perish when one lives
at another's cost....
Today's news story is about how automakers world wide have learned
"When the economy was growing all engineers could be self-centered,
selfish and say ours is the best [part]...We don't live in
that world any more.” ....
....and as you read today's very informative auto
report on the next web page... you will realize how the auto industry
worldwide has gotten smarter after the 2008 worldwide financial and
industrial meltdown....please click on the next line to read this
NOW SURPRISE YOURSELF WITH
TODAY'S WORLD WIDE AUTO INDUSTRY REPORT
WHICH INDICATE THAT
FINALLY THE AUTO INDUSTRY
HAS GOT IT.....
......STUPID ITS THE CLIMATE CHANGE CHALLENGE...
VW deal with Suzuki takes aim at India
German car maker to go after Tata's low-cost niche market
Globe and Mail:
Wednesday, December 09, 2009:
Greg Keenan, Auto Industry Reporter:
With files from Bloomberg News )
|Volkswagen AG is kicking its race to become the world's largest auto
maker into a higher gear, hooking up in a strategic alliance with Suzuki
Motor Corp. in the latest in a series of deals that are transforming the
global auto industry.
The two auto makers will exchange shares in each other – Volkswagen
taking a 19.9-per-cent stake in Japan-based Suzuki – in a deal that
links a European powerhouse with the biggest auto maker in India.
Volkswagen is a leader in South America and China but has been weak in
India, one of the world's key growing markets. The companies will also
share technology to meet fast-growing demand for low-cost,
environmentally friendly cars. br />
“The auto industry is going through a fundamental transition,” Martin
Winterkorn, chairman of the management board of Volkswagen, told a news
conference in Tokyo Wednesday. “Alliances and co-operation are at the
top of the agenda and they are indispensable.”
The deal comes as the world's auto makers emerge from a devastating
global sales slump that has shredded balance sheets and profits and
reshaped the business.
Fiat SpA took a 20-per-cent stake in Chrysler as it emerged from Chapter
11 bankruptcy protection in the United States and is now integrating its
own auto business with that of the No. 3 Detroit company.
PSA Peugeot Citroën of France and Mitsubishi Motors Corp. of Japan said
last week they are examining deepening an existing relationship in what
would be the second Franco-Japanese marriage since Renault SA merged
with Nissan Motor Co. Ltd.
Chinese auto makers are negotiating to buy Saab and Volvo Cars of
Sweden, assets being sold by General Motors Co. and Ford Motor Co.
respectively. Volkswagen has already bought 50 per cent of Porsche
Automobil Holding SE.
The $2.5-billion (U.S.) deal with Suzuki means Volkswagen is striking
while some of its key rivals for world domination are preoccupied in
dealing with the fallout from the global crisis.
Toyota Motor Corp., the world's largest auto maker, posted its
first-ever financial loss and is in the midst of determining how to deal
with overcapacity in North America, where it has a brand new plant in
Mississippi that is sitting empty.
GM is struggling to emerge successfully from Chapter 11 bankruptcy
protection and sort out the mess in its European business Adam Opel
“In 2018 we want to become No. 1 in the world,” Mr. Winterkorn declared
at the news conference, noting that co-operation with Suzuki will help
achieve that goal.
BBut the deal is about more than production volume, Osamu Suzuki, the
80-year-old chairman of the company that bears his family name told the
same news conference.
Quality and cost are also crucial, Mr. Suzuki said, noting that sharing
of parts and components reduces cost.
“When the economy was growing all engineers could be self-entred,
selfish and say ours is the best [part],” he said. “We don't live in
that world any more.”
Higher production volume drives costs down, however, and that is a
factor behind many of the auto industry alliances as they try to reduce
the astronomical costs of making internal combustion engines more
efficient, producing hybrid-electric vehicles, electric cars and trucks
and fuel-cell power plants.
The alliance marries a small player with industry-leading car capability
in Suzuki with a larger partner in Volkswagen, whose environmental
technologies are well advanced. Volkswagen is regarded as one of the
leading makers of diesel engines, which are more fuel efficient than
gasoline engines, and is developing hybrid vehicles. It will make that
technology available to Suzuki. Volkswagen's Up! Lite hybrid small car
that also has a diesel engine was unveiled at the Los Angeles Auto Show
last month and travels 49 kilometres on every litre of gas.
Volkswagen is also working on fuel cells, which are seen by many as a
long-term solution to weaning cars off gasoline. The company provided a
fleet of fuel-cell powered cars to Chinese officials during the Beijing
Olympics in the summer of 2008.
Suzuki sells about 2.3 million vehicles a year compared with more than
six million for Volkswagen and its stable of brands that includes Skoda
and Seat in Europe, luxury brands Audi, Bentley and Lamborghini and
truck maker Scania.
It will allow Volkswagen to attack the low-cost car market and compete
with Tata Motors Ltd. in India, which has introduced the $2,500 (U.S.)
Nano in that country.
Cars costing less than $5,000 will boast the highest growth rates during
the next 10 years, said Ferdinand Dudenhoeffer, who heads the Centre for
Automotive Research at the University of Duisburg-Essen in Germany.
“Volkswagen is not just aiming at India,” Prof. Dudenhoeffer said.
“Low-cost cars will become important within all emerging markets.”
Sales in India should grow 58 per cent between now and 2014 to 2.6
million vehicles a year, auto consulting firm J.D. Power and Associates
““Volkswagen is like a department store carrying everything from luxury
brands to truck makers,” Koji Endo, a long-time industry analyst in
Japan said. “What they're missing is any presence in India and Southeast
Asia. The point of partnering with Suzuki is to grab India.”
WORLD ECONOMY KNOWLEDGE
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