Famous automotive company General Motors Corp.. announced in the press release that has been debut a new record in vehicle sales in the Asia Pacific Year 2008. Sales in this region grew 2.7 percent compared to a year ago to be 1,475,093 units. More than 766,400 vehicles and 599,080 sets of complete knockdown (CKD) has been exported from this region to the world
"GM once again make the market more Asia-Pacific achievement despite a decrease in global economic and credit problems, which will affect most of the market and the large car in the second year in 2008," said Nick Reilly, GM Group Vice President and President of GM Asia Pacific. "We have benefited from the increase in demand of our products in the developing regions."
In China, domestic sales and the GM companies growing 6.1 percent patungannya with record 1,094,561 units. GM has led to increased demand for products from Chevrolet and Wuling, which recorded sales of 15.7 percent to 199,155 units and 17.4 percent to 606,499 units. Wuling Sunshine minivan from SAIC-GM joint venture company owned by GM to become the first vehicles in China through a number of sales 400,000 units a year.
Figures GM sales in India increased by as much as 9.4 percent to 65,702 units in 2008, a new record for the GM. GM once again leads with the Chevrolet Spark mini-car, which was approximately 48 percent of sales. This is also supported with the start of regular production in two factories owned by GM in India, the factory with a capacity of 140,000 units, in September.
GM also increased in some countries members of the ASEAN sub-region. GM noted the increase in Indonesia and the Philippines respectively to be 2610 units and 2400 units. In Vietnam, GM car sales jumped 45.6 percent to 11,037 units, a new record sales for GM in these countries.
In South Korea, GM Daewoo and GM contributed to sales of 117,374 units. GM Daewoo will remain a major source of vehicles all over the world. The company exported 1,788,568 vehicles and CKD in the year 2008 to other countries in the Asia Pacific region and other countries around the world, and re-record a new record for GM Daewoo.
In Australia, GM sold 132,555 vehicles in 2008. Holden Commodore is a passenger Kendaraan terlaris in Australia for 13 consecutive years. GM Holden, the GM in Australia, announced plans in December to create a new small car next to the Commodore at the Elizabeth plant in South Australia.
GM saw sales in Japan grew 32 percent to 10,865 vehicles in the year 2008. Benefit from GM's premium brand strategy is, where is the preferred choice in the products from the Cadillac, Saab and HUMMER. "GM remains optimistic with the future in the Asia Pacific region," said Reilly. "We keep investing in the developing and the market that has been established to ensure the continuation of our development in one of the world's most" ferment "."
In 2008, GM began the program with the launch of the long-term product, with the main menggelintirkan models such as Chevrolet Captiva in India, Holden VE Sportwagon in Australia, Chevrolet Colorado CNG in Thailand, GM Daewoo Lacetti Premiere in Korea and New Buick Regal in China. To keep in line with demand, GM start regular production in Talegaon factory in India. In China, SAIC-GM-Wuling complete factory capacity of Qingdao and the Phase 2 plant in the western part of Liuzhou, in the same factory during the second property of Shanghai GM (Shenyang) Norsom Motors opened.
In addition, the launch of GM engine factory in India and Thailand, a base for the Asia Pacific Headquarters in Shanghai and China, launched a clean energy program in the ASEAN, China and Australia, and start building a new engine factory SAIC-GM-Wuling in Qingdao, China
Showing posts with label Automotive News. Show all posts
Showing posts with label Automotive News. Show all posts
Thursday, March 12, 2009
Thursday, November 13, 2008
End of the road for Yugo
In Serbia's Zastava car factory, workers can barely contain their emotions — the very last Yugos, the pride of the former Yugoslavia, are coming off the assembly lines after almost 30 years.
Often a laughing stock for its design and lack of reliability, the Yugo's demise is the sad end of an era for workers in the central Serbian town of Kragujevac.
After the sprawling factory was bombed in 1999 Nato air-strikes against Serbia during the Kosovo war, successive governments failed to win an agreement with foreign carmakers to keep production alive.
The fate of the Yugo was sealed earlier this year when the Serbian government signed a €700-million investment accord with Italian auto giant Fiat that ends production of three models, including the Yugo.
It is over
The final car is to come down the assembly line later this week, to the sadness of workers like 54-year-old Janko Jankovic who have grown attached to the box-shaped vehicle.
"I was involved in assembling the fifth ever Yugo when I was doing work experience and here I am, 30 years later, preparing to assemble the last one," he said.
Painters have already covered the final car with a large banner saying: "Farewell to the last Yugo, it is over."
The vehicle will be red, a symbol of the company's original name, "Crvena Zastava" (Red Flag), established during the rule of late communist leader Tito after World War II.
"It's very difficult after all these years with this car to know that it has reached the end of the road," said 50-year-old Mirko Ilic while observing the last vehicle of almost 800 000 produced since 1980.
"Assembled at gunpoint"
An offspring of the Fiat 127, the Yugo was born in 1980, in two versions — three and five doors.
In its heyday, it gained enormous popularity at home due to its low price and fuel consumption, quickly becoming accessible to everyone in the six republics of the former communist federation of Yugoslavia.
Old company catalogues boast that the Yugo was exported to 74 countries in the late 1980s — among them Egypt and India — but also to the United States where it was priced at $3990.
But the Yugo was much-maligned there and remains the butt of many jokes.
"The Yugo had the distinct feeling of something assembled at gunpoint," Time magazine said once in a list it complied of the 'Worst Cars of All Time'.
"In a car where 'carpet' was listed as a standard feature, the Yugo had a rear-window defroster — reportedly to keep your hands warm while you pushed it," Time said in a tongue-in-cheek report.
Although the communist authorities described the US agreement as the "deal of the century", the Yugo had only limited success in America, ending up mostly in Hollywood comedies and even in Bruce Willis' action blockbuster 'Die Hard'.
Despite its record as one of the "worst foreign vehicles ever" sold in the United States, Zastava says more than 100 000 were exported there up to 1991.
Writing on the wall
The early 1990s were the beginning of the end of the Yugo fairy tale.
The bloody break-up of the former Yugoslavia and international sanctions imposed on Slobodan Milosevic dealt a fatal blow to Zastava exports.
Most of the Kragujevac plant was severely damaged during the 1999 Nato bombing campaign launched to end Milosevic's crackdown on Kosovo.
Zastava's management is now considering the possibility of moving car production abroad.
"Together with the Serbian government, we are exploring possibilities to continue with production in, for example, Egypt, were our Zastava 128 model has been very successful," said Zastava manager Radomir Petrovic.
"But this is just an idea for the time being," Petrovic said, reassuring Yugo owners throughout the region they should not fear for lack of spare parts.
"All those who still have a Yugo and even a buyer of the last vehicle, have nothing to fear as our partner factories will produce a sufficient amount of spare parts," Petrovic said.
Thousands of these cars still rumble along roads in former Yugoslav republics Bosnia, Croatia, Macedonia and Slovenia more than 16 years after the collapse of the joint federation.
Often a laughing stock for its design and lack of reliability, the Yugo's demise is the sad end of an era for workers in the central Serbian town of Kragujevac.
After the sprawling factory was bombed in 1999 Nato air-strikes against Serbia during the Kosovo war, successive governments failed to win an agreement with foreign carmakers to keep production alive.
The fate of the Yugo was sealed earlier this year when the Serbian government signed a €700-million investment accord with Italian auto giant Fiat that ends production of three models, including the Yugo.
It is over
The final car is to come down the assembly line later this week, to the sadness of workers like 54-year-old Janko Jankovic who have grown attached to the box-shaped vehicle.
"I was involved in assembling the fifth ever Yugo when I was doing work experience and here I am, 30 years later, preparing to assemble the last one," he said.
Painters have already covered the final car with a large banner saying: "Farewell to the last Yugo, it is over."
The vehicle will be red, a symbol of the company's original name, "Crvena Zastava" (Red Flag), established during the rule of late communist leader Tito after World War II.
"It's very difficult after all these years with this car to know that it has reached the end of the road," said 50-year-old Mirko Ilic while observing the last vehicle of almost 800 000 produced since 1980.
"Assembled at gunpoint"
An offspring of the Fiat 127, the Yugo was born in 1980, in two versions — three and five doors.
In its heyday, it gained enormous popularity at home due to its low price and fuel consumption, quickly becoming accessible to everyone in the six republics of the former communist federation of Yugoslavia.
Old company catalogues boast that the Yugo was exported to 74 countries in the late 1980s — among them Egypt and India — but also to the United States where it was priced at $3990.
But the Yugo was much-maligned there and remains the butt of many jokes.
"The Yugo had the distinct feeling of something assembled at gunpoint," Time magazine said once in a list it complied of the 'Worst Cars of All Time'.
"In a car where 'carpet' was listed as a standard feature, the Yugo had a rear-window defroster — reportedly to keep your hands warm while you pushed it," Time said in a tongue-in-cheek report.
Although the communist authorities described the US agreement as the "deal of the century", the Yugo had only limited success in America, ending up mostly in Hollywood comedies and even in Bruce Willis' action blockbuster 'Die Hard'.
Despite its record as one of the "worst foreign vehicles ever" sold in the United States, Zastava says more than 100 000 were exported there up to 1991.
Writing on the wall
The early 1990s were the beginning of the end of the Yugo fairy tale.
The bloody break-up of the former Yugoslavia and international sanctions imposed on Slobodan Milosevic dealt a fatal blow to Zastava exports.
Most of the Kragujevac plant was severely damaged during the 1999 Nato bombing campaign launched to end Milosevic's crackdown on Kosovo.
Zastava's management is now considering the possibility of moving car production abroad.
"Together with the Serbian government, we are exploring possibilities to continue with production in, for example, Egypt, were our Zastava 128 model has been very successful," said Zastava manager Radomir Petrovic.
"But this is just an idea for the time being," Petrovic said, reassuring Yugo owners throughout the region they should not fear for lack of spare parts.
"All those who still have a Yugo and even a buyer of the last vehicle, have nothing to fear as our partner factories will produce a sufficient amount of spare parts," Petrovic said.
Thousands of these cars still rumble along roads in former Yugoslav republics Bosnia, Croatia, Macedonia and Slovenia more than 16 years after the collapse of the joint federation.
Honda sees FY exports to Europe of China-made 'Jazz' model at 45,000 units
Honda Motor Co said it expects to export to Europe this year 45,000 units of the Honda Jazz small car, made in China by a joint venture, up from 43,000 units a year earlier.
The automaker said in a statement that its China joint venture Honda Automobile (China) Co Ltd which specializes in supplying vehicles for markets outside China, produced 100,000 vehicles since it officially began production in April 2004.
In the first half, Honda Automobile exported 24000 cars valued at 281 mln usd, accounting for 18 pct of China's auto exports in volume and 29 pct in value.
Honda Motor and its Chinese subsidiary own a combined 65 pct stake in the venture, with the remainder held by its partners Guangzhou Auto and Dongfeng Motor Corp.
The automaker said in a statement that its China joint venture Honda Automobile (China) Co Ltd which specializes in supplying vehicles for markets outside China, produced 100,000 vehicles since it officially began production in April 2004.
In the first half, Honda Automobile exported 24000 cars valued at 281 mln usd, accounting for 18 pct of China's auto exports in volume and 29 pct in value.
Honda Motor and its Chinese subsidiary own a combined 65 pct stake in the venture, with the remainder held by its partners Guangzhou Auto and Dongfeng Motor Corp.
Volkswagen reviews commercial vehicles ad business
Volkswagen is looking for an agency to handle advertising duties for its commercial vehicles business.
The review is being handled by Agency Assessments and is expected to conclude in January next year.
The intermediary is already approaching agencies and will be compiling a long-list over the next week.
In the past, VW has used a number of regional agencies for its commercial vehicles account but is now looking for a single, bigger agency to put together an overarching marketing strategy. It is unclear if its existing "Let's go to work" line will be replaced.
The brief will include above-the-line advertising, direct marketing, local marketing programmes and point-of-sale material. Simon Elliott, the director of Volkswagen Commercial Vehicles, said: "We have achieved outstanding results from our current agencies, including our ‘Let's go to work' campaign."However, with the competitiveness of the current market, we have taken this opportunity to introduce an agency review to ensure we are getting the best value, creativity and fresh thinking for the brand."
The review is being handled by Agency Assessments and is expected to conclude in January next year.
The intermediary is already approaching agencies and will be compiling a long-list over the next week.
In the past, VW has used a number of regional agencies for its commercial vehicles account but is now looking for a single, bigger agency to put together an overarching marketing strategy. It is unclear if its existing "Let's go to work" line will be replaced.
The brief will include above-the-line advertising, direct marketing, local marketing programmes and point-of-sale material. Simon Elliott, the director of Volkswagen Commercial Vehicles, said: "We have achieved outstanding results from our current agencies, including our ‘Let's go to work' campaign."However, with the competitiveness of the current market, we have taken this opportunity to introduce an agency review to ensure we are getting the best value, creativity and fresh thinking for the brand."
The hottest sedans for 2009
The new sedans rolling into showrooms are meant to get attention. They take passengers farther on a tank of fuel, look more stylish than ever, and boast advanced technology to keep drivers informed about traffic and weather.
And the deals available are phenomenal.
As slumping sales pummel nearly every automaker, the effort to create appealing sedans - and get shoppers to drive one home - is at a fever pitch.
Our annual roundup of new and improved sedans includes design trendsetters like the sleek Jaguar XF, Maserati Quattroporte and Volkswagen CC, which bring fresh appeal to the familiar four-doors-with-a-trunk body style.
The latest premium diesels, like the BMW 335d, and hybrids, like the Mercedes-Benz S400 BlueHybrid, add greater fuel efficiency to the upper echelons of the market, where it has been sorely lacking.
Luxury Hybrid Sedans
Lexus LS 600h L
Mercedes-Benz S400
BlueHybrid
And the Lincoln MKS ushers in technological innovation that is sure to stand out. The advanced system in its dashboard features a high-resolution touch-screen and software smart enough to tell you where the fueling station with the cheapest gas is.
Go to the accompanying slideshow for a full list of new and improved sedans.
Focus on Fuel Economy
The new Mercedes S-Class won't look much different than the current model, but it will offer a new hybrid system that is likely one of many to come from luxury carmakers. It joins Lexus' LS 600h L and GS 450h in giving buyers an upscale hybrid alternative to the Toyota Prius.
Like Lexus, Mercedes trades some of the fuel efficiency that its hybrid system offers for more power and performance.
The Mercedes S400 BlueHybrid pairs a 15-kilowatt electric motor with a 3.5-liter V6 gasoline engine. The car boasts 299 horsepower with plenty of torque delivered by the electric motor.
It helps conserve fuel the same way existing hybrids do. Its combustion engine powers down at temporary stops, which helps deliver around 30 miles per gallon in mixed city/highway driving. The S400 BlueHybrid is expected to go on sale in the fall of 2009.
BMW is looking to diesel technology as its next step toward higher fuel efficiency, and the company's best-selling model, the 3 Series, will be the first to get it in the United States. The BMW 335d maintains the high level of performance and strong acceleration of gasoline-powered 3 Series models, but with significantly better fuel economy. It will get an estimated 23 mpg in city driving and 33 mpg on the highway.
Advanced emissions systems ensure that the new diesel engine will comply with the most stringent standards set by the state of California.
"The average consumer may be wary of diesels, but we have seen Mercedes-Benz have some success with their diesel E-Class," says Mike Omotoso, manager of automotive powertrain forecasting at J.D. Power & Associates in Westlake Village, Calif. "BMW is hoping that their clientele will have the same appreciation for the genre's performance and technology."
Omotoso estimates that sales of diesels will more than double over the next three years, to 1 million vehicles annually. As a percentage of all new cars and light trucks sold, diesels would increase from 2.6 percent in 2008 to 6.5 percent in 2012.
Volkswagen's' next generation of fuel-efficient cars will kick off halfway through next year with two diesel versions of the Passat, the company's largest sedan sold in the United States.
The Passat BlueTDI will have a 140-hp 2.0-liter four-cylinder diesel engine that gets an estimated 45 mpg in mixed city/highway driving.
The Passat BlueMotion will have a less-powerful 108-hp 2.0-liter diesel engine with a stop/start function to shut it down during temporary stops. It will get an estimated 48 mpg overall.
A third new version of the Passat, already on sale, focuses on aesthetics rather than fuel economy. The Passat CC is what Volkswagen calls a "four-door coupe," which is an oxymoron because coupes have two doors.
For the Sake of Style
German automakers appear to be enamored with the contradictory "four-door coupe" designation. Besides Volkswagen with its new CC, Mercedes uses this designation for its CLS-Class and BMW for its X6 crossover utility vehicle.
"The design objective for the CC was to create an accessible entry-level luxury vehicle with the visual power to make an emotional connection over and above the rational connections our brand tends to generate," says Brett Scott, product planning manager Volkswagen NA. "It makes a compelling and powerful design statement."
Simply put, these vehicles are sleeker than most four-doors. "Designers are imparting greater style into four-door cars, and the 'coupe' look is just the next iteration," says Leo Parente, an auto industry consultant based in New York. "At least we've moved on from the vinyl roof, the opera window and the stand-up Rolls-Royce-wannabe grille."
The Maserati Quattroporte(© Maserati)
Unfortunately, these models' svelte silhouettes present some serious drawbacks. For starters, their low, sweeping rooflines make getting in and out more difficult than in "regular" four-door vehicles, and the extreme slant to their windshields and rear windows can hamper outward visibility.
"Buyers will choose these cars as expressions of elegance in the luxury or near-luxury markets," says Tom Matano, a car designer and executive director of the School of Industrial Design for the Academy of Art University in San Francisco.
But the cramped interiors and narrow trunk openings of these swoopy "coupe" wannabes limit their practical appeal. "Really, these cars are for the owner with occasional full-passenger-capacity needs," Parente says.
Jaguar's all-new XF and Maserati's updated Quattroporte are two other examples of sedans with sexy profiles, but they're not called "four-door coupes" and both do a good job of balancing practicality with aesthetics. The Jag XK has a large trunk, for instance, and the Maserati Quattroporte's interior is ample enough to comfortably accommodate four or five adults.
Sports-car makers are also showing interest in super-sleek sedans. Porsche, for one, plans to unveil a sexy four-door called the Panamera. Aston Martin and Lamborghini are also considering coupe-like four-door cars.
Trendsetter Remade
BMW's new 7 Series is a full-fledged four-door that won't be mistaken for a "coupe." When last redesigned in 2002, its styling caused a stir among industry insiders because it looked different than anything else at the time.
The recast 2009 7 Series takes BMW design in a new direction, with a more subdued look and a fresh front end that will influence what all BMWs will eventually look like.
The new 7 Series maintains its sporting character with a 400-hp V8 engine. A new speed-sensitive, rear-wheel steering system promises nimbler cornering.
BMW continues to refine its iDrive, which has been frustrating drivers and passengers since its debut six years ago. This system uses one knob to control all functions in the car, from air conditioning to radio. By turning and pressing the knob, users select their choices from menus on a dash-mounted screen.
The new 7 Series' updated iDrive has a larger screen, a few new buttons, and improved menus.
The systems that other automakers use vary in their learning curves. But regardless of how they're executed, these complicated systems are changing from novelties to necessities, because of the growing number of high-tech convenience and entertainment features on premium sedans.
2009 Bentley Continental Flying Spur Speed
see more photos >
(© Bentley)
"High-tech by and of itself is risky," says Tom Libby, senior automotive analyst with the marketing information firm J.D. Power. "It needs to be user-friendly as well, and the user component needs to be defined by actual customers, not factory people who think they know what the consumer wants."
Tech Revolution
Intriguing new technology is being offered for the first time on 2009 models.
The new Sirius Travel Link system is optional on the Lincoln MKS sedan as well as several other vehicles under Ford's umbrella. The service provides real-time traffic data, weather information, ski conditions, sports scores, movie-theater schedules, and gas prices with automatic routing to a selected station.
To get Sirius Travel Link on the Lincoln MKS, buyers must add a $2,995 navigation package. The Travel Link service is free for the first six months, but it costs $7.99 a month after that.
Not to be outdone, BMW is incorporating wireless Internet connection to display Google Maps in its 3 Series. The service requires the optional $2,100 navigation system and $750 BMW Assist satellite-based communication system with Bluetooth capability. This allows drivers to search for restaurants, hotels, service stations, banks, supermarkets, cinemas and public facilities by keyword, then initiate route guidance. Drivers also can place hands-free calls to a selected point of interest via a Bluetooth-enabled cell phone.
For those seeking the same kind of Web access in their cars as they can get in their homes, Chrysler is offering a dealer-installed "uconnect web" accessory on the 2009 300C and Dodge Charger sedans. This enables laptop computers and other Wi-Fi enabled devices like as Apple's iPhone and Nintendo's DS portable gaming system to connect to the Internet via a wireless network. The Wi-Fi module costs $499 and there is a $29 monthly fee for Internet service.
Though such amenities add to the cost of buying a car, the deals that automakers are offering these days can be a way for gadget lovers to offset the high price of advanced technology.
Let's Make a Deal
With the economy in turmoil, the natural reaction for most people might be to hunker down. "There is a sense of caution among our buyers," says Mark Templin, Lexus' group vice president and general manager. "We have dealers telling us that they've sold cars, only to have customers call back and cancel their orders as they watch the stock market drop."
However, those who can look past the headlines will find dealer lots rife with good deals.
The Jaguar XF(© Jaguar)
For example, Lincoln is financing its MKS sedan for as low as 0.9 percent, according to Consumers' Checkbook, whose CarDeals newsletter tracks vehicle incentives. The money saved from the lower interest rate could help offset the cost of the navigation package with Sirius Travel Link.
And the deals available are phenomenal.
As slumping sales pummel nearly every automaker, the effort to create appealing sedans - and get shoppers to drive one home - is at a fever pitch.
Our annual roundup of new and improved sedans includes design trendsetters like the sleek Jaguar XF, Maserati Quattroporte and Volkswagen CC, which bring fresh appeal to the familiar four-doors-with-a-trunk body style.
The latest premium diesels, like the BMW 335d, and hybrids, like the Mercedes-Benz S400 BlueHybrid, add greater fuel efficiency to the upper echelons of the market, where it has been sorely lacking.
Luxury Hybrid Sedans
Lexus LS 600h L
Mercedes-Benz S400
BlueHybrid
And the Lincoln MKS ushers in technological innovation that is sure to stand out. The advanced system in its dashboard features a high-resolution touch-screen and software smart enough to tell you where the fueling station with the cheapest gas is.
Go to the accompanying slideshow for a full list of new and improved sedans.
Focus on Fuel Economy
The new Mercedes S-Class won't look much different than the current model, but it will offer a new hybrid system that is likely one of many to come from luxury carmakers. It joins Lexus' LS 600h L and GS 450h in giving buyers an upscale hybrid alternative to the Toyota Prius.
Like Lexus, Mercedes trades some of the fuel efficiency that its hybrid system offers for more power and performance.
The Mercedes S400 BlueHybrid pairs a 15-kilowatt electric motor with a 3.5-liter V6 gasoline engine. The car boasts 299 horsepower with plenty of torque delivered by the electric motor.
It helps conserve fuel the same way existing hybrids do. Its combustion engine powers down at temporary stops, which helps deliver around 30 miles per gallon in mixed city/highway driving. The S400 BlueHybrid is expected to go on sale in the fall of 2009.
BMW is looking to diesel technology as its next step toward higher fuel efficiency, and the company's best-selling model, the 3 Series, will be the first to get it in the United States. The BMW 335d maintains the high level of performance and strong acceleration of gasoline-powered 3 Series models, but with significantly better fuel economy. It will get an estimated 23 mpg in city driving and 33 mpg on the highway.
Advanced emissions systems ensure that the new diesel engine will comply with the most stringent standards set by the state of California.
"The average consumer may be wary of diesels, but we have seen Mercedes-Benz have some success with their diesel E-Class," says Mike Omotoso, manager of automotive powertrain forecasting at J.D. Power & Associates in Westlake Village, Calif. "BMW is hoping that their clientele will have the same appreciation for the genre's performance and technology."
Omotoso estimates that sales of diesels will more than double over the next three years, to 1 million vehicles annually. As a percentage of all new cars and light trucks sold, diesels would increase from 2.6 percent in 2008 to 6.5 percent in 2012.
Volkswagen's' next generation of fuel-efficient cars will kick off halfway through next year with two diesel versions of the Passat, the company's largest sedan sold in the United States.
The Passat BlueTDI will have a 140-hp 2.0-liter four-cylinder diesel engine that gets an estimated 45 mpg in mixed city/highway driving.
The Passat BlueMotion will have a less-powerful 108-hp 2.0-liter diesel engine with a stop/start function to shut it down during temporary stops. It will get an estimated 48 mpg overall.
A third new version of the Passat, already on sale, focuses on aesthetics rather than fuel economy. The Passat CC is what Volkswagen calls a "four-door coupe," which is an oxymoron because coupes have two doors.
For the Sake of Style
German automakers appear to be enamored with the contradictory "four-door coupe" designation. Besides Volkswagen with its new CC, Mercedes uses this designation for its CLS-Class and BMW for its X6 crossover utility vehicle.
"The design objective for the CC was to create an accessible entry-level luxury vehicle with the visual power to make an emotional connection over and above the rational connections our brand tends to generate," says Brett Scott, product planning manager Volkswagen NA. "It makes a compelling and powerful design statement."
Simply put, these vehicles are sleeker than most four-doors. "Designers are imparting greater style into four-door cars, and the 'coupe' look is just the next iteration," says Leo Parente, an auto industry consultant based in New York. "At least we've moved on from the vinyl roof, the opera window and the stand-up Rolls-Royce-wannabe grille."
The Maserati Quattroporte(© Maserati)
Unfortunately, these models' svelte silhouettes present some serious drawbacks. For starters, their low, sweeping rooflines make getting in and out more difficult than in "regular" four-door vehicles, and the extreme slant to their windshields and rear windows can hamper outward visibility.
"Buyers will choose these cars as expressions of elegance in the luxury or near-luxury markets," says Tom Matano, a car designer and executive director of the School of Industrial Design for the Academy of Art University in San Francisco.
But the cramped interiors and narrow trunk openings of these swoopy "coupe" wannabes limit their practical appeal. "Really, these cars are for the owner with occasional full-passenger-capacity needs," Parente says.
Jaguar's all-new XF and Maserati's updated Quattroporte are two other examples of sedans with sexy profiles, but they're not called "four-door coupes" and both do a good job of balancing practicality with aesthetics. The Jag XK has a large trunk, for instance, and the Maserati Quattroporte's interior is ample enough to comfortably accommodate four or five adults.
Sports-car makers are also showing interest in super-sleek sedans. Porsche, for one, plans to unveil a sexy four-door called the Panamera. Aston Martin and Lamborghini are also considering coupe-like four-door cars.
Trendsetter Remade
BMW's new 7 Series is a full-fledged four-door that won't be mistaken for a "coupe." When last redesigned in 2002, its styling caused a stir among industry insiders because it looked different than anything else at the time.
The recast 2009 7 Series takes BMW design in a new direction, with a more subdued look and a fresh front end that will influence what all BMWs will eventually look like.
The new 7 Series maintains its sporting character with a 400-hp V8 engine. A new speed-sensitive, rear-wheel steering system promises nimbler cornering.
BMW continues to refine its iDrive, which has been frustrating drivers and passengers since its debut six years ago. This system uses one knob to control all functions in the car, from air conditioning to radio. By turning and pressing the knob, users select their choices from menus on a dash-mounted screen.
The new 7 Series' updated iDrive has a larger screen, a few new buttons, and improved menus.
The systems that other automakers use vary in their learning curves. But regardless of how they're executed, these complicated systems are changing from novelties to necessities, because of the growing number of high-tech convenience and entertainment features on premium sedans.
2009 Bentley Continental Flying Spur Speed
see more photos >
(© Bentley)
"High-tech by and of itself is risky," says Tom Libby, senior automotive analyst with the marketing information firm J.D. Power. "It needs to be user-friendly as well, and the user component needs to be defined by actual customers, not factory people who think they know what the consumer wants."
Tech Revolution
Intriguing new technology is being offered for the first time on 2009 models.
The new Sirius Travel Link system is optional on the Lincoln MKS sedan as well as several other vehicles under Ford's umbrella. The service provides real-time traffic data, weather information, ski conditions, sports scores, movie-theater schedules, and gas prices with automatic routing to a selected station.
To get Sirius Travel Link on the Lincoln MKS, buyers must add a $2,995 navigation package. The Travel Link service is free for the first six months, but it costs $7.99 a month after that.
Not to be outdone, BMW is incorporating wireless Internet connection to display Google Maps in its 3 Series. The service requires the optional $2,100 navigation system and $750 BMW Assist satellite-based communication system with Bluetooth capability. This allows drivers to search for restaurants, hotels, service stations, banks, supermarkets, cinemas and public facilities by keyword, then initiate route guidance. Drivers also can place hands-free calls to a selected point of interest via a Bluetooth-enabled cell phone.
For those seeking the same kind of Web access in their cars as they can get in their homes, Chrysler is offering a dealer-installed "uconnect web" accessory on the 2009 300C and Dodge Charger sedans. This enables laptop computers and other Wi-Fi enabled devices like as Apple's iPhone and Nintendo's DS portable gaming system to connect to the Internet via a wireless network. The Wi-Fi module costs $499 and there is a $29 monthly fee for Internet service.
Though such amenities add to the cost of buying a car, the deals that automakers are offering these days can be a way for gadget lovers to offset the high price of advanced technology.
Let's Make a Deal
With the economy in turmoil, the natural reaction for most people might be to hunker down. "There is a sense of caution among our buyers," says Mark Templin, Lexus' group vice president and general manager. "We have dealers telling us that they've sold cars, only to have customers call back and cancel their orders as they watch the stock market drop."
However, those who can look past the headlines will find dealer lots rife with good deals.
The Jaguar XF(© Jaguar)
For example, Lincoln is financing its MKS sedan for as low as 0.9 percent, according to Consumers' Checkbook, whose CarDeals newsletter tracks vehicle incentives. The money saved from the lower interest rate could help offset the cost of the navigation package with Sirius Travel Link.
China Automotive Systems Reports 2008 Third Quarter Results
Net Sales Reached US$36.9 Million; Representing 18.4% Year-Over-Year Growth
WUHAN, Hubei, China, Nov. 12 /Xinhua-PRNewswire/ -- China Automotive Systems, Inc. ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced financial results for the third quarter and nine months ended September 30, 2008.
2008 third Quarter Highlights:
-- Net sales increased to US$36.9 million, reflecting 18.4% year-over-year
growth;
-- Net sales from steering components for passenger and light-duty
vehicles increased to US$ 24.6 million, reflecting 22% year-over-year
growth;
-- Net sales from steering components for commercial vehicles increased to
US$8.8 million, reflecting an 8.8% increase year-over-year;
-- Net income was US$2.8 million, reflecting 7.2% year-over-year growth;
and
-- Diluted earnings per share were US$0.09, reflecting a decline of
US$0.02 per diluted share due to a greater number of weighted average
common shares outstanding;
-- Net cash flow provided by operations was US$4.4 million for the nine
month period
China Automotive Systems reported net sales of US$36.9 million for the third quarter ended September 30, 2008, compared with US$31.2 million in the same quarter in 2007, and US$46.5 million for the second quarter of 2008, reflecting an 18.4% year-over-year growth. Net income for the third quarter of 2008 was US$2.8 million, or US$0.09 per fully diluted share, versus US$2.6 million, or US$0.11 per fully diluted share in the same period a year ago, reflecting 7.2% year-over-year growth, and compared with US$4.7 million, or US$0.18 per fully diluted share for the second quarter of 2008.
Third quarter net sales for 2008 from steering products for passenger and light-duty vehicles increased by 22% year-over-year to US$24.6 million as compared with US$20.2 million reported in the same period for 2007. Net sales from steering products for commercial vehicles for the third quarter of 2008 increased to US$8.8 million, an 8.8% year-over-year gain compared with the US$8.1 million reported in the same period for 2007. Net sales from oil pumps and sensors for the 2008 third quarter increased to US$3.4 million as compared with US$2.9 million in the same period for 2007, reflecting 18.1% year-over- year growth.
"Our third quarter results were negatively impacted by the normal seasonality and Beijing Olympics. Many OEMs reduced the production and held off orders for components this summer. However, we continued to manage to generate growth in a slow market, as we continue to win new customers and expand our market share in China," said Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems.
Gross profit for the third quarter of 2008 was US$9.9 million compared with US$11.4 million in the same quarter in 2007, and US$14.5 million for the second quarter of 2008. Gross margin was 26.7% in the third quarter compared with 31.1% in the second quarter of 2008. Operating income for the third quarter of 2008 was US$3.7 million as compared with US$6.6 million reported in the same quarter of 2007 and compared with US$5.5 million for the second quarter of 2008. Lower operating income was partially due to lower gross profit resulting from higher raw material prices as well as higher labor and transportation costs related to rising sales. CAAS also invested more into Research & Development resources as more personnel were added to design new products. Further, greater operating expenses were reflected in higher depreciation and amortization expenses from additions to property, plant and equipment as well as increased supplies for continuing construction to build the Company's production capacity.
Net income was US$2.8 million compared with US$2.6 million in the third quarter of 2007, reflecting a 7.2% year-over-year increase. Earnings per share on a fully diluted basis in the third quarter of 2008 were US$0.09 as compared to US$0.11 in the same period of 2007. Total shares outstanding on a fully diluted basis were 31.4 million shares, as compared to 24 million in the 2007 third quarter. The share-count increase was mainly related to the US$ 35 million convertible note financing and the Henglong acquisition in early 2008. The conversion price of the convertible notes, which was US$8.8527 initially, was reset to a bottom of US$7.0822 on August 15, 2008. There will be no more conversion price reset thereafter.
Total cash and cash equivalents as of September 30, 2008 were US$27.2 million as compared with US$19.5 million as of December 31, 2007. Also, there was a US$9.2 million of pledged cash deposits, part of which is expected to turn into free cash in the fourth quarter. Total account and notes receivables were US$100.9 million reflecting higher sales. Notes receivables, which are guaranteed bank payments from customers, were US$40.5 million as of September 30, 2008. Stockholder's equity increased to US$80.8 million as of September 30, 2008 from US$67.2 million as of December 31, 2007. Working capital reached US$75 million. Property, plant equipment increased to approximately US$50 million. The long-term convertible notes payable was valued at US$32.8 million.
Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "In response to the higher raw material costs during the summer, we have increased our selling prices to our customers, especially the commercial vehicle OEMs. With falling steel prices and our adjusted ASP, we are expecting a much improved gross margin in the fourth quarter. On the sales front, we expect the gradual recovery of domestic auto sales growth following the new emission standard introduction. We remain hopeful that the Chinese government's road and port infrastructure build-out plan along with US$ 586 billion stimulus package can benefit the domestic auto industry."
Mr. Jie Li, Chief Financial Officer, stated, "As the global capital market continues to experience turbulence and the Chinese auto industry undergoes a transition year, we are carefully planning our growth strategy based on our financial strength, and focusing on strengthening our balance sheet. We have improved our cash position by managing account receivables and reducing capital expenditures. We want to continue to generate positive cash-flow, mitigate financial risks and enhance our long term shareholder's value."
Recent Developments
On October 23rd, founder and Chairman, Mr. Hanlin Chen, Chief Executive Officer, Mr. Qizhou Wu, Chief Financial Officer, Mr. Jie Li and other officers announced plans to invest US$500,000 to purchase the common shares of CAAS in the open market.
On October 14th, China Automotive Systems announced that its subsidiary, Jingzhou Henglong Automotive Parts Co. ("Henglong"), received orders from Dongfeng Peugeot Citroen Automobile Company Ltd. ("DPCA") for power steering gears for the Dongfeng Elysee. Henglong started development of three new power steering gears for DPCA in 2005. These three models are Peugeot 206, Elysee R23 and Picasso N68. Subsequently, all models have passed the French UTAC safety test, road tests and inspections. In July 2008, Henglong won the supply contract for the Peugeot 206 and has begun commercial production.
On September 2nd, the Company announced that its subsidiary, Jingzhou Henglong Automotive Parts Co. ("Henglong"), signed a supply agreement with ChangAn Auto Co. Ltd. ("ChangAn Auto"). Henglong successfully developed 4 different models of hydraulic power steering systems and one model of Electronic Power Steering for ChangAn Auto. Henglong is now a power steering system supplier to ChangAn Auto's CV6 model. Total shipments to ChangAn Auto for 2008 will be approximately 30,000 total units. According to the China Association of Automobile Manufacturers, ChangAn Auto Co. Ltd. produced and sold around 50,000 sedans and 250,000 SUVs in 2007. ChangAn Group has been consistently ranked as a top 5 automaker in China for many years.
WUHAN, Hubei, China, Nov. 12 /Xinhua-PRNewswire/ -- China Automotive Systems, Inc. ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced financial results for the third quarter and nine months ended September 30, 2008.
2008 third Quarter Highlights:
-- Net sales increased to US$36.9 million, reflecting 18.4% year-over-year
growth;
-- Net sales from steering components for passenger and light-duty
vehicles increased to US$ 24.6 million, reflecting 22% year-over-year
growth;
-- Net sales from steering components for commercial vehicles increased to
US$8.8 million, reflecting an 8.8% increase year-over-year;
-- Net income was US$2.8 million, reflecting 7.2% year-over-year growth;
and
-- Diluted earnings per share were US$0.09, reflecting a decline of
US$0.02 per diluted share due to a greater number of weighted average
common shares outstanding;
-- Net cash flow provided by operations was US$4.4 million for the nine
month period
China Automotive Systems reported net sales of US$36.9 million for the third quarter ended September 30, 2008, compared with US$31.2 million in the same quarter in 2007, and US$46.5 million for the second quarter of 2008, reflecting an 18.4% year-over-year growth. Net income for the third quarter of 2008 was US$2.8 million, or US$0.09 per fully diluted share, versus US$2.6 million, or US$0.11 per fully diluted share in the same period a year ago, reflecting 7.2% year-over-year growth, and compared with US$4.7 million, or US$0.18 per fully diluted share for the second quarter of 2008.
Third quarter net sales for 2008 from steering products for passenger and light-duty vehicles increased by 22% year-over-year to US$24.6 million as compared with US$20.2 million reported in the same period for 2007. Net sales from steering products for commercial vehicles for the third quarter of 2008 increased to US$8.8 million, an 8.8% year-over-year gain compared with the US$8.1 million reported in the same period for 2007. Net sales from oil pumps and sensors for the 2008 third quarter increased to US$3.4 million as compared with US$2.9 million in the same period for 2007, reflecting 18.1% year-over- year growth.
"Our third quarter results were negatively impacted by the normal seasonality and Beijing Olympics. Many OEMs reduced the production and held off orders for components this summer. However, we continued to manage to generate growth in a slow market, as we continue to win new customers and expand our market share in China," said Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems.
Gross profit for the third quarter of 2008 was US$9.9 million compared with US$11.4 million in the same quarter in 2007, and US$14.5 million for the second quarter of 2008. Gross margin was 26.7% in the third quarter compared with 31.1% in the second quarter of 2008. Operating income for the third quarter of 2008 was US$3.7 million as compared with US$6.6 million reported in the same quarter of 2007 and compared with US$5.5 million for the second quarter of 2008. Lower operating income was partially due to lower gross profit resulting from higher raw material prices as well as higher labor and transportation costs related to rising sales. CAAS also invested more into Research & Development resources as more personnel were added to design new products. Further, greater operating expenses were reflected in higher depreciation and amortization expenses from additions to property, plant and equipment as well as increased supplies for continuing construction to build the Company's production capacity.
Net income was US$2.8 million compared with US$2.6 million in the third quarter of 2007, reflecting a 7.2% year-over-year increase. Earnings per share on a fully diluted basis in the third quarter of 2008 were US$0.09 as compared to US$0.11 in the same period of 2007. Total shares outstanding on a fully diluted basis were 31.4 million shares, as compared to 24 million in the 2007 third quarter. The share-count increase was mainly related to the US$ 35 million convertible note financing and the Henglong acquisition in early 2008. The conversion price of the convertible notes, which was US$8.8527 initially, was reset to a bottom of US$7.0822 on August 15, 2008. There will be no more conversion price reset thereafter.
Total cash and cash equivalents as of September 30, 2008 were US$27.2 million as compared with US$19.5 million as of December 31, 2007. Also, there was a US$9.2 million of pledged cash deposits, part of which is expected to turn into free cash in the fourth quarter. Total account and notes receivables were US$100.9 million reflecting higher sales. Notes receivables, which are guaranteed bank payments from customers, were US$40.5 million as of September 30, 2008. Stockholder's equity increased to US$80.8 million as of September 30, 2008 from US$67.2 million as of December 31, 2007. Working capital reached US$75 million. Property, plant equipment increased to approximately US$50 million. The long-term convertible notes payable was valued at US$32.8 million.
Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "In response to the higher raw material costs during the summer, we have increased our selling prices to our customers, especially the commercial vehicle OEMs. With falling steel prices and our adjusted ASP, we are expecting a much improved gross margin in the fourth quarter. On the sales front, we expect the gradual recovery of domestic auto sales growth following the new emission standard introduction. We remain hopeful that the Chinese government's road and port infrastructure build-out plan along with US$ 586 billion stimulus package can benefit the domestic auto industry."
Mr. Jie Li, Chief Financial Officer, stated, "As the global capital market continues to experience turbulence and the Chinese auto industry undergoes a transition year, we are carefully planning our growth strategy based on our financial strength, and focusing on strengthening our balance sheet. We have improved our cash position by managing account receivables and reducing capital expenditures. We want to continue to generate positive cash-flow, mitigate financial risks and enhance our long term shareholder's value."
Recent Developments
On October 23rd, founder and Chairman, Mr. Hanlin Chen, Chief Executive Officer, Mr. Qizhou Wu, Chief Financial Officer, Mr. Jie Li and other officers announced plans to invest US$500,000 to purchase the common shares of CAAS in the open market.
On October 14th, China Automotive Systems announced that its subsidiary, Jingzhou Henglong Automotive Parts Co. ("Henglong"), received orders from Dongfeng Peugeot Citroen Automobile Company Ltd. ("DPCA") for power steering gears for the Dongfeng Elysee. Henglong started development of three new power steering gears for DPCA in 2005. These three models are Peugeot 206, Elysee R23 and Picasso N68. Subsequently, all models have passed the French UTAC safety test, road tests and inspections. In July 2008, Henglong won the supply contract for the Peugeot 206 and has begun commercial production.
On September 2nd, the Company announced that its subsidiary, Jingzhou Henglong Automotive Parts Co. ("Henglong"), signed a supply agreement with ChangAn Auto Co. Ltd. ("ChangAn Auto"). Henglong successfully developed 4 different models of hydraulic power steering systems and one model of Electronic Power Steering for ChangAn Auto. Henglong is now a power steering system supplier to ChangAn Auto's CV6 model. Total shipments to ChangAn Auto for 2008 will be approximately 30,000 total units. According to the China Association of Automobile Manufacturers, ChangAn Auto Co. Ltd. produced and sold around 50,000 sedans and 250,000 SUVs in 2007. ChangAn Group has been consistently ranked as a top 5 automaker in China for many years.
Four Door Media Enters Licensee Agreements with Top Car Manufacturers for Road Mice(TM) LaunchRoad Mice lets users cruise the Web in style
Four Door Media, designer, manufacturer, and distributor of specialized computer based products and accessories, today announced that General Motors, Dodge, Chrysler and Ford are the first to grant licensee approvals for Road Mice(TM), a new car shaped wireless optical computer mouse. The agreement gives Four Door Media rights to develop and market replicas of great American vehicles, including the Corvette Z06, Chevy Camaro Concept, Dodge Charger and Ford Mustang GT, which are available now at www.roadmice.com.
"We continue to be approached by top automotive manufacturers and their licensing agents to produce Road Mice with their likeness and image for both promotional and consumer products," says Dan Cwieka, chief executive officer of Four Door Media. "We are thrilled that manufacturers understand and support the exciting new Road Mice consumer concept, and look forward to establishing long-standing relationships with these companies by supplying both business to business and consumer product offerings."
Four Door Media will regularly expand its Road Mice lineup by adding new makes and models. Upcoming Road Mice holiday introductions include: the Ford GT, Chrysler HEMI(R) 300C and PT Cruiser, the Dodge Challenger SRT8, and Viper SRT10. Incorporating eye-catching colors, sleek body styles and high speed performance, potential licensors can be confident that each new Road Mice model will feature the finest details of the car being replicated in order to put their brand message in the palm of consumers' hands.
"Car and technology enthusiasts alike are already responding very positively to the introduction of Road Mice, and we are confident that this innovative computer mouse will continue to be an affordable and creative vehicle for brand endorsement," adds Cwieka.
Road Mice are available for $44.95 on www.roadmice.com and are PC and Mac compatible, suitable for both desktops and laptops. Resellers and potential licensors should visit www.fourdoormedia.com or call 1-408-Car-Mice (408.227.6423) with questions or requests.
About Four Door Media
Four Door Media is a specialized electronic products and entertainment company that creates, manufactures, markets and distributes, nationally and internationally, computer based products and accessories that entertain, promote and educate. The company was founded with a focus on marketing products that relate to the automotive industry and appeal to consumers across a wide range of market segments. Other products include USB flash drives and custom mouse pads. For information please visit www.fourdoormedia.com.
"We continue to be approached by top automotive manufacturers and their licensing agents to produce Road Mice with their likeness and image for both promotional and consumer products," says Dan Cwieka, chief executive officer of Four Door Media. "We are thrilled that manufacturers understand and support the exciting new Road Mice consumer concept, and look forward to establishing long-standing relationships with these companies by supplying both business to business and consumer product offerings."
Four Door Media will regularly expand its Road Mice lineup by adding new makes and models. Upcoming Road Mice holiday introductions include: the Ford GT, Chrysler HEMI(R) 300C and PT Cruiser, the Dodge Challenger SRT8, and Viper SRT10. Incorporating eye-catching colors, sleek body styles and high speed performance, potential licensors can be confident that each new Road Mice model will feature the finest details of the car being replicated in order to put their brand message in the palm of consumers' hands.
"Car and technology enthusiasts alike are already responding very positively to the introduction of Road Mice, and we are confident that this innovative computer mouse will continue to be an affordable and creative vehicle for brand endorsement," adds Cwieka.
Road Mice are available for $44.95 on www.roadmice.com and are PC and Mac compatible, suitable for both desktops and laptops. Resellers and potential licensors should visit www.fourdoormedia.com or call 1-408-Car-Mice (408.227.6423) with questions or requests.
About Four Door Media
Four Door Media is a specialized electronic products and entertainment company that creates, manufactures, markets and distributes, nationally and internationally, computer based products and accessories that entertain, promote and educate. The company was founded with a focus on marketing products that relate to the automotive industry and appeal to consumers across a wide range of market segments. Other products include USB flash drives and custom mouse pads. For information please visit www.fourdoormedia.com.
Monday, November 3, 2008
Is HDD set for a hard ride in automotive entertainment systems?
Analysis of findings from the Semicast study “Automotive Entertainment Systems” suggest that growth in shipments of automotive hard disc drives (HDDs) could slow in the late stages of the next decade as shipments of systems featuring high density flash memory begin to rise.
In comparison to other consumer goods, such as personal video recorders, portable media players and laptop computers, the storage capacity of automotive entertainment systems, especially embedded navigation systems, has risen only slowly in recent years. For example, many factory-fitted navigation systems offered in 2008 have a storage capacity of around 20GB, which is the same as the aftermarket HDD navigation systems originally introduced by suppliers such as Alpine and Pioneer to the Japanese market in 2001.
The phenomenal increase in the storage capacity of many consumer goods has typically been driven by the desire to store video. Thus the slow increase in the storage capacity of navigation systems can perhaps be best explained by the need to store only the navigation database and compressed audio files (MP3/WMA), where 20GB is usually more than sufficient. With legislation in most regions of the world banning the viewing of video in the front seats, it is questionable therefore if mainstream navigation systems will need to substantially increase storage capacity above current levels even in the long term. At present even the highest capacity aftermarket navigation system offers storage of 40GB, representing only double the capacity of the original systems introduced seven years ago.
Colin Barnden, study author and Semicast principal analyst commented "With the storage capacity of automotive entertainment systems set to increase only gradually, it is judged most likely that these systems will fall into the territory of flash memory storage, causing shipments of HDDs in cars to stall".
While the existing cost per gigabyte of flash memory prevents its use for mass storage in mainstream automotive entertainment systems, continued rapid price erosion from chip suppliers such as SanDisk, coupled with only slowly increasing storage requirements, are steadily bringing the crossover point into view. Thus, as the cost per gigabyte of flash memory drops, so in the long term suppliers of automotive entertainment systems will almost certainly begin to design-out HDD in favor of a high density flash memory solution. Flash memory offers substantial benefits over HDD that are vital in the automotive environment, such as no moving parts, less susceptibility to vibration and shock, improved mean time between failure (MTBF) and operation over a wider temperature range.
Accordingly, Semicast believes that HDD may prove to be only an interim solution in automotive entertainment, with its long term use possibly limited only to very high capacity systems such as some aftermarket navigation systems and high-end rear seat entertainment systems which compress and store movies or record TV. This scenario would mirror that seen already in consumer portable media players, where lower capacity products intended primarily for storing audio already use flash memory (typically up to 32GB), while video-based products such as the iPod classic and Archos 705 provide storage up to 160GB using HDD.
In comparison to other consumer goods, such as personal video recorders, portable media players and laptop computers, the storage capacity of automotive entertainment systems, especially embedded navigation systems, has risen only slowly in recent years. For example, many factory-fitted navigation systems offered in 2008 have a storage capacity of around 20GB, which is the same as the aftermarket HDD navigation systems originally introduced by suppliers such as Alpine and Pioneer to the Japanese market in 2001.
The phenomenal increase in the storage capacity of many consumer goods has typically been driven by the desire to store video. Thus the slow increase in the storage capacity of navigation systems can perhaps be best explained by the need to store only the navigation database and compressed audio files (MP3/WMA), where 20GB is usually more than sufficient. With legislation in most regions of the world banning the viewing of video in the front seats, it is questionable therefore if mainstream navigation systems will need to substantially increase storage capacity above current levels even in the long term. At present even the highest capacity aftermarket navigation system offers storage of 40GB, representing only double the capacity of the original systems introduced seven years ago.
Colin Barnden, study author and Semicast principal analyst commented "With the storage capacity of automotive entertainment systems set to increase only gradually, it is judged most likely that these systems will fall into the territory of flash memory storage, causing shipments of HDDs in cars to stall".
While the existing cost per gigabyte of flash memory prevents its use for mass storage in mainstream automotive entertainment systems, continued rapid price erosion from chip suppliers such as SanDisk, coupled with only slowly increasing storage requirements, are steadily bringing the crossover point into view. Thus, as the cost per gigabyte of flash memory drops, so in the long term suppliers of automotive entertainment systems will almost certainly begin to design-out HDD in favor of a high density flash memory solution. Flash memory offers substantial benefits over HDD that are vital in the automotive environment, such as no moving parts, less susceptibility to vibration and shock, improved mean time between failure (MTBF) and operation over a wider temperature range.
Accordingly, Semicast believes that HDD may prove to be only an interim solution in automotive entertainment, with its long term use possibly limited only to very high capacity systems such as some aftermarket navigation systems and high-end rear seat entertainment systems which compress and store movies or record TV. This scenario would mirror that seen already in consumer portable media players, where lower capacity products intended primarily for storing audio already use flash memory (typically up to 32GB), while video-based products such as the iPod classic and Archos 705 provide storage up to 160GB using HDD.
Auto firms rev up for US, Europe
Domestic automobile companies are equipping new car models with the next-generation, Euro-V engines, which will facilitate them to explore newer export markets in Europe and the US. The auto majors have introduced a range of petrol engines for their compact cars, which comply with the Euro-V norms and are meant for the export markets.
The auto majors' move also enables them to prepare for the stringent emission norms to be introduced in the country in coming years.
A recent Standard & Poor's report on the US auto industry reveals that electric vehicles and compact cars will be the next growth drivers in the passenger vehicle segment.
Maruti [Get Quote] Suzuki, the largest car manufacturer in the country, recently commissioned its engine plant in Gurgaon, which will manufacture the K series engines. The K series engines will first be strapped onto its A Star model, due to be launched in November, and then fitted to other models, starting from the Maruti 800 to other superior models for the domestic market.
Maruti hopes to export about 1 lakh units of the A Star to Europe. "In terms of styling, carbon dioxide emission and fuel efficiency, the A Star has gained acceptance in European markets," said Shinzo Nakanishi, CEO and managing director, Maruti Suzuki.
In the face of a domestic slowdown, Nakanishi is counting on exports to boost production and sales volumes for 2009.
Hyundai, the largest car exporter from the country by sales volumes, is also eyeing Europe with its newly-launched Kappa engine (R&D budget of $421 million) strapped to its best-selling small car, the i10. Till date, the Korean car major has exported over 65,000 i10s from India out of its target of about 1.5 lakh cars, which include the Santro models too.
According to Maruti, its K series engines are the most advanced among petrol engines. Speaking to Business Standard earlier, Shinzo Nakanishi had said: "The A Star emits about 109 grams of CO2 per kilometre, which can be lowered further."
While Hyundai's Kappa engine emits 119 grams of CO2 per kilometre, engines used by General Motors (8v SOHC engine) for its compact cars like Spark and UVA Aveo and Tata Motors' [Get Quote] latest Indica Vista, incorporating Fiat's CVCP Safire MPFi petrol engine, emit a similar amount of CO2, making them ready for the export markets. While General Motors exports Spark to Nepal, Tata Motors' joint venture with Fiat will help it export both cars and petrol engines.
While the latest compact cars manufactured in India are Euro-V compliant, the latest petrol car engines are also highly fuel efficient. "The lesser the CO2 emissions, the greater the fuel efficiency," says Anomita Chowdhury, associate director, Centre for Science and Environment.
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