Marketing Automotive

Mitsubishi Motors plans to introduce its small all-electric i-MiEV car to China by 2012.

The Japanese company became the world’s first auto maker to launch mass-produced electric cars when it rolled out the i-MiEV in Japan last year. Its push into China, the world’s largest auto market, will be part of a roll-out of the environmentally friendly car to overseas markets that will include some countries in Europe and Asia.

“We wanted to bring it [to China] in 2011. But we don’t have enough capacity to produce the batteries,” Osamu Masuko, Mitsubishi Motors President, said in an interview.

Mitsubishi will export the i-MiEV to China from Japan, Mr. Masuko said on the sidelines of the Auto China 2010 exhibition in Beijing. But he said Mitsubishi may have to consider producing its electric cars in China in the future if the Chinese government says local production is a prerequisite for subsidies for electric cars.

Competition in the zero-emission car market is set to intensify. Nissan Motor Corp. is planning to sell its Leaf all-electric hatchback in Japan, the U.S. and Europe by the end of the year.

Mr. Masuko said Friday that Mitsubishi is targeting to sell 300,000 vehicles a year in China by 2015, up from the 180,000 vehicles it aims to sell in the country this year.

Last year, the Japanese car maker boosted its sales in China by 50% to 125,000 vehicles.

April 2010

2010 Beijing International Automotive Exhibition (also known as Auto China 2010), one of the most important automotive shows worldwide, will be held in New China International Exhibition Center (Tianzhu) and in China International Exhibition Center (Jing’anzhuang) from April 25 to May 2nd, Beijing.

The place could be called « The Great Mall of China ». Indeed the world’s largest and most robust economy is attracting automakers like never before as they line up to unveil new models at Auto China 2010 in Beijing this coming weekend.

The event, which previously couldn’t compete with major shows in Frankfurt, Detroit, Paris or Tokyo, is now attracting a lot of attention because of the sizzling growth of automobile sales in the Chinese market, which is up 45 percent last year, and 63 percent in the first three months of this year.

At the show, GM will debut an all-electric Volt MPV5 concept car and Daimler will unveil an ultra-luxury Mayback sedan. Toyota will unveil the latest version of the Prius hybrid plus an electric concept car. Chinese carmakers also plan to showcase more than 60 new models. Chery, China’s largest domestic brand, will have 29 vehicles available at the show while Geely (which recently agreed to purchase Volvo) will showcase 55 vehicles, including 11 new models. BYD will demonstrate the all-electric e6, which the company hopes to market in North America.

“Auto China has grown to be one of the biggest and most important auto shows of the year, joining Detroit, Tokyo and Paris” said Trevor Hale, a spokesman for Daimler AG.

China has been one of the bright spots for the global auto industry in an otherwise dismal year. Global automakers are looking China as a commercial lifeline amid weak global demand and are more ambitious than ever at this year’s Beijing show.

Fifteen years ago, the country had almost no consumer cars. By 2005, 10 million Chinese families could afford to buy a car. General Motors expects that number to grow to 75 million in 2015. GM saw its sales in China increase 68 percent in March versus the prior year.

Consumer demand is driving the market, so it’s full speed ahead for automakers — as long as they follow the road to China.

April 2010

Italy’s Fiat SpA industrial group is getting out of the car-making business, announcing today its board’s decision to spin off its automotive manufacturing division.

Fiat chairman Luca Cordero di Montezemolo will step down from that role, but remain as the chairman of its luxury unit, Ferrari. Fiat’s luxury Maserati and Ferrari units are run separately from its automotive unit, which includes the Fiat brand, Lancia and Alfa Romeo.

The surprise spin-off news comes a day ahead of Fiat’s two-year strategy plan, to be presented tomorrow to shareholders and the press at its headquarters in Turin.

Europe’s fifth biggest automaker, founded by Giovanni Agnelli in 1899, has been reeling from a $1.1 billion loss in 2009.

It formed an alliance last year with Chrysler to create a global distribution network. Fiat also took a 35% stake in the American carmaker in return for helping Chrysler produce smaller, more fuel-efficient vehicles. Fiat also has a joint venture with PSA Peugeot Citroën.

By getting out of the auto business, Fiat SpA can focus on its interests including publishing, finance and metallurgy. Aside from its main carmaking arm, it also manufactures trucks, trains and agricultural equipment.

April 2010

German auto major Daimler and Franco-Japanese alliance Renault-Nissan today announced a three-way tie up, including equity swaps, for co-operation in development of small cars and light commercial vehicles.

As part of the agreement, Renault-Nissan Alliance will pick up 3.1 per cent stake in Daimler and Daimler 3.1 per cent in Renault and another 3.1 per cent stake in Nissan.

Aimed at providing “additional synergies encompassing selective common purchasing opportunities, exchange of operational benchmarks and best practices to be shared across both groups,” the three-way alliance also envisages cooperation in small vehicles, powertrain and light commercial vehicles development.

According to Dieter Zetsche Daimler AG Chairman the focus will be on working to strengthen competitiveness in the small car segment and reducing carbon emission.

Commenting on the alliance, Carlos Ghosn Renault—Nissan Chairman and CEO said: “This agreement will extend our strategic collaboration and create lasting value for the Renault—Nissan Alliance and Daimler.”

Under the agreement, the alliance will develop a common platform for Daimler and Renault’s small cars, ‘Smart Fortwo’ and ‘Renault Twingo’, including electric versions.

The alliance will include sharing of diesel and petrol engines, with Renault—Nissan alliance supplying 3 and 4 cylinder engines for Daimler’s future premium compact cars. Daimler, in turn will provide 4 and 6 cylinder engines to Nissan’s luxury brand Infiniti.

The three—way tie up comes at time when the global auto industry is slowly recovering from a demand slump last year. The new alliance is estimated to make the partners achieve cost saving of Euro two billion (USD 2.7 billion) and additional sales from the new alliance over the first five years.

This will add to the over a decade long alliance of Renault—Nissan, in which the French firm holds 44 per cent stake in the Japanese partner, while Nissan hold 15 per cent stake in Renault.

April 2010