Toyota on way to $12.5bn profits after disasters
Toyota expects to treble its operating profits to more than $12.5bn this year as it recovers lost ground in markets from the USA to China. Operating profits jumped more than fivefold in Q1 to $3bn.
The Guardian, 10th May 2012, p.27.
US: GM net profit off 69% after Europe goodwill write-down
General Motors first quarter net profit has fallen 69% year on year to $1.0bn, or $0.60 a share after special items related to goodwill in Europe caused a $0.6bn hit to the bottom line, but the unadjusted profit was still better than some analysts expected. The Q1 2011 profit of $3.2bn included a $1.5bn boost from the sales of Delphi and finance unit Ally. First quarter 2012 revenue rose $1.6bn to $37.8bn and adjusted earnings before interest and tax rose $0.2bn to $2.2bn. The company has increased its 2012 US light vehicle sales forecast 500,000 units to 14M-14.5M and said results for the second and third quarters of 2012 'are expected to be comparable to the first quarter of 2012 due to the scheduled downtime at factories that produce full-size trucks'.
www.Just-Auto.com. Issue 622, 3 May 2012.
US SALES: More happiness
Reports on April light vehicle sales for individual US automakers. Because there were three fewer selling days this year, a modest 2.3% volume increase became a more respectable 15.1% increase in daily sales rate. Either way, the US market saw its 20th consecutive month of year over year growth. April's 1.181M sales translated into a seasonally adjusted annualised rate of 14.42M units, up 1.25M over April 2011 and about 50,000 over March 2012. Despite concerns about rising petrol prices, sales of small cars declined in April, but mid-size sedans and small utilities were in demand.
www.just-auto.com. Issue 622, 2 May 2012.
GERMANY: BMW, Hyundai propose tie-up for engines - source
Sources say that BMW and Hyundai are discussing an alliance to develop engines and share other technology, although the talks are at an early stage. A separate source said that the companies had discussed a 'comprehensive alliance' which included developing an engine and sharing the development costs but did not know if discussions were still on. Eugene Investment & Securities analyst Park Sang-won told Reuters the proposed collaboration could help BMW achieve economies of scale while giving Hyundai a chance to tap BMW's expertise with advanced petrol engines, especially those used in its large vehicles. He added that collaboration could also reduce the cost of developing more fuel efficient engines as stricter emission rules are introduced.
www.just-auto.com. Issue 622, 4 May 2012.
RUSSIA: Renault-Nissan to take control of AvtoVAZ
Reports that Russian Technologies, the state weapons manufacturer, has agreed to sell its majority holding in AvtoVAZ to the Renault-Nissan Alliance. The Alliance, AvtoVAZ, Russian Technologies and Troika Dialog have signed a non-binding agreement which has ended many months of speculation. According to this memorandum, the Alliance and Russian Technologies will contribute their respective stakes in AvtoVAZ to a joint venture with this new JV in turn controlling AvtoVAZ. Renault-Nissan is due to own 67.13% of the new JV in mid 2014, following an investment of $750M. This JV will then hold 74.5% of AvtoVAZ. The transaction is expected to be complete by 2014.
www.just-auto.com. Issue 622, 3 May 2012.
US/INDIA: General Motors R&D jobs face the axe
Reports that General Motors will cut 190 jobs at research facilities in the US and India. A spokesman said 'We're restructuring our global R&D business to better focus on developing customer-focused innovations in a more efficient way. These changes to R&D will hopefully allow the company to continue innovation but in a faster manner'. He added that most of the positions affected are staff scientists, although they will have the opportunity to apply for other jobs at GM. Around 100 jobs will go at the automaker's technical centre in Warren, Michigan, and 90 in Bangalore, India. (Item contains no further information).
www.just-auto.com. Issue 622, 3 May 2012.
UK: Toyota's UK manufacturing base 'in revival phase'
At a recent media event Tony Walker, Deputy Managing Director, Toyota Motor Manufacturing UK, said that the company is now recovering from the economic crisis of 2008 that led to a sudden drop of over 50% to Toyota's UK car output. He added that 'We are now very much in revival phase with our Burnaston car plant concentrating on core models for the European market'. At the end of last year, Toyota confirmed that its Burnaston factory in Derbyshire would be the sole European manufacturing centre for new generation C-segment hatchbacks - including hybrid, petrol, and diesel models that will replace the Auris from 2013. The Burnaston factory is currently building the Avensis and Auris models (including Auris Hybrid).
www.just-auto.com. Issue 622, 1 May 2012.
COMMENT: Audi hints at production plans for flywheel tech
Audi's revolutionary R18 e-tron quattro is to compete in round two of the World Endurance Championship at Spa, the first time that a Le Mans sportscar with diesel hybrid drive and two driven axles will compete in a race. The car incorporates a flywheel for storing kinetic energy. A V6 diesel engine sends drive to the rear wheels, while for the front axle, the energy is electrically recuperated and fed into a flywheel. This can then be returned to the front wheels during acceleration.
www.just-auto.com. Issue 622, 4 May 2012.
Global Electric Vehicle Market 2011-2015
Forecasts that the Global Electric Vehicle market will grow at a CAGR 20% over the period 2011-2015. One of the key factors contributing to this market growth is the increasing need for energy independence. The report covers the Americas, and the EMEA and APAC regions as well as the Global EV market 2011-2015 landscape and its growth prospects in the coming years. It also includes a discussion of the key vendors operating in this market, including Toyota Motor Honda Motor, Ford Motor, and General Motors.
Infiniti Research, Apr 2012.
Johnson Controls, Fraunhofer cross-link on materials research
Johnson Controls is to enter into what it plans to be a long-term cooperation agreement with the German Fraunhofer Research Institution for Polymeric Materials and Composites (PYCO), a developer of highly cross-linked polymers (reactive resins/duromers) and fibre-reinforced composites. Both organisations will be cross-linking their know-how to develop polymer systems that are recyclable and repairable while integrating required mechanical properties and achieving weight savings for the automobile industry. In common with most suppliers, Johnson Controls is constantly working toward weight savings to offset weight-increasing aspects of seat design, including associated controls, that are driven by safety requirements and perceived market expectations.
Automotive Engineering Online. 18 Apr. 2012. http://tinyurl.com/7ewwmoj
Lola-Drayson electric race car employs 'green' composites
The Lola-Drayson B12/69EV prototype electric race car employs recycled composites and flax reinforced composites, both products born out of joint development programmes involving Umeco. The car is designed to demonstrate the potential of sustainable 'green' technologies in the motorsport industry. Lola's use of recycled composite materials follows the completion of a collaborative R&D programme involving Umeco, WMG at the University of Warwick, and ELG Carbon Fibre Ltd. The application of flax-reinforced composites is the result of a joint R&D programme involving Umeco, WMG and Composites Evolution Ltd.
Reinforced Plastics Weekly, issue 435, 25 Apr. 2012. http://tinyurl.com/dxh6nqh
Gamesa and Toyota Spain join forces on electric vehicles
Toyota Spain will lend Gamesa a Prius plug-in hybrid electric vehicle for a 6-month period to test and verify the car's technology, identify potential limiting factors and analyse its charging requirements in order to facilitate the mass market roll-out of hybrid electric vehicles in Spain in the near future. Gamesa will test drive the car in an urban environment as well as at a wind farm. It will share the data compiled during the vehicle's test drives with Toyota Spain in order to furnish information for the Movele initiative, coordinated by the Spanish institute for energy diversification and savings, IDAE , of which Toyota is a member.
Reinforced Plastics Weekly, issue 436, 2 May 2012. http://tinyurl.com/bp5rde7
UK: Jaguar downsizes engines
Tata Motors-owned Jaguar is to replace V8 and V6 engines with a supercharged three-litre V6 and a turbocharged two-litre I4. The supercharged three-litre V6 is based on the five-litre V8 and will replace some versions in Jaguar models sold mainly for export. It will be available in 380hp and 340hp versions with the former making its debut in the upcoming F-type sports car in 2013. Both engines will be hooked to eight-speed automatic transmissions (already used on the 2.2-litre I4 turbodiesel XF) and the V6 will have a stop-start system.
www.just-auto.com. 24 Apr. 2012
ITALY: Fiat books EUR207m Q1 loss
Fiat, which controls Chrysler, has posted a wider first-quarter loss in Europe after sales in the region fell but was propped up by the US unit. The loss before interest, taxes and one-time items in Europe nearly doubled to Euros 207M. Without Chrysler, Fiat would have reported a Euros 6M trading loss in the period as the sovereign debt crisis and a lack of new models hit demand. Fiat's deliveries in the region tumbled 20% in the first quarter, outpacing the industrywide 7.3% drop.
www.just-auto.com. 26 Apr. 2012.
UK: Some bright spots in the European car market gloom - JATO
Data from JATO Dynamics shows that the market leading Volkswagen Golf, Nissan's Qashqai and the new Toyota Yaris are the only models in the top ten sellers to have recorded improved sales in March. The market data from JATO confirms figures from LMC and ACEA that show that despite some sales growth in the UK and Germany, the European new car market is down due to particularly poor sales in France and Italy in March. The poor market conditions in Italy were further exacerbated by a car transporter drivers strike which slowed deliveries of new vehicles to dealers. JATO estimates that the European new car market declined by 7.1% in March and 7.5% in the first quarter.
www.just-auto.com. 25 Apr. 2012.
April 2012 management briefing: OEM financial summaries (Ford, GM and Fiat-Chrysler)
Looks at the financial position of Detroit's 'Big 3'. The five-year trend of vehicle sales in the US shows Ford with a 15.5% market share lodged between General Motors with a dominant 18.25% and Toyota at 13.9%. GM is coming back from bankruptcy but still has heavy decisions to make. It is generating alliances with other makers to save on the cost of components and will review the company from top to bottom to find additional efficiencies. However it has to reduce capacity in Europe in recognition of the vicious competition and the lack of potential to generate profit. If Fiat goes on buying Chrysler shares at the present rate it will be firmly in charge of the US company before the end of the year. However, analysts are monitoring events in Brazil where Fiat is deemed to make the money that partly disguises inadequate profit in Europe. Tables give a financial summary for all three companies.
www.just-auto.com. Issue 621, 27 Apr. 2012.
April 2012 management briefing: OEM financial summaries (PSA, Renault, Tata)
Looks at the financial positions of PSA, Renault and Tata Motors (including Jaguar Land Rover). Phillippe Varin, PSA chairman, says that 'we had very disappointing results from our automotive division in 2011'. Renault sold more last year than it did in 2010 but its profit slipped. Revenues were Euros 42bn which was up by nearly 10%, but the operating margin was down to 2.6% compared with 2.8% in 2010. Tata's sales in the 12 months to the end of March 2012 rose a mere 2.2% taking the total to just over two million cars. That sales rate was almost back to the lowly levels of 1.4% growth in 2009. Jaguar Land Rover's turnover for the nine month period since Tata's takeover was up 40%. Range-Rover Evoque and smaller-engined versions of the Jaguar XF have made prices more accessible. Profit after tax rose an extraordinary 57% year on year. Tables give a financial summary for all four companies.
www.just-auto.com. Issue 621, 24 Apr. 2012
Will lithium-air batteries work?
IBM announced some progress with its lithium-air battery research project which aims to create a lightweight car battery that can go 500 miles on a single charge. That probably won't happen until 2020 or 2030 at the earliest, but the company says that it is making progress on the electrolyte materials needed to enable these batteries, which the company has been working on since 2009. As promising as these batteries are, it's very tricky to make them work. One problem is the electrolyte. Early lithium-air battery prototypes used the same organic-liquid electrolytes used for conventional lithium-ion. These batteries appeared to be charging and discharging at first. The battery inhales air during discharge and gives oxygen back during recharging. But these batteries were releasing carbon dioxide produced by the destruction of the electrolyte, not oxygen produced by the desired reactions. IBM says that it has now developed a 'much better electrolyte'.
Materials360(r), 30 Apr. 2012.
Flying car prototype makes first flight
The Transition, a street-legal car/airplane hybrid, designed and developed by Terrafugia completed its first flight on March 23rd. The same vehicle has also successfully completed initial drive and conversion testing. The two-seater can be parked in a single-car garage, and flies on ordinary unleaded automotive fuel. The aircraft reached an altitude of 1,400 ft and flew for eight minutes. The flight demonstrated the plane's controllability and safe operational characteristics.
High Performance Composites, May 2012. p.34.
Automotive CFRP: repair or replace?
With carbon fibre-intensive volume production automobiles likely to be taking to the road in increasing numbers there is increased likelihood of them being involved in a greater number of accidents. There are thus two questions for OEMs, dealerships and body shops: how to determine the extent of damage to carbon fibre structures; and how to decide whether to repair or replace those structures? On high end autos damaged structures will generally be removed and replaced. However for structural components in high-volume applications, those involved are looking for ways to repair/rebuild structures economically. Details the experience of auto spots motor manufacturers. Also reports on methods for repairing bonded substructures.
High Performance Composites, May 2012. pp.46-53.
No items this week
We have balanced defence books, says Hammond
Philip Hammond has announced a £160bn plan to buy missiles, jets and other kit for the Armed Forces over the next decade as he claimed to have balanced the defence budget for the first time in a generation. The announcement that the £38bn black hole had been closed was met with scepticism, but Mr Hammond said that the MoD was putting in place 'behaviour-changing incentives and structures that will keep it in balance'. The Forces will now have a £4bn contingency reserve for unexpected costs, rather than going back to the Treasury. Mr Hammond will ask the National Audit Office to produce its own report to confirm that the books are balanced. Under the new regime, only programmes that are fully funded for 10 years including acquisition cost and maintenance, will be approved. The green light has been given to 14 Chinook helicopters, an extension plan for the Apache and £7bn for missiles and torpedoes. The Army will get £1bn to upgrade the Warrior tracked vehicle.
The Times, 15th May 2012, p.3.
Forecast evaluates market for military armor applications
Vector Strategy has published 'US Military Ground Vehicle and Armor Procurement Forecast 2020' which presents three scenarios based on different potential budget outcomes in the United States. The first scenario reflects the FY13 budget as requested by the US Department of Defense. The second scenario adds procurement to support production lines in FY13 through FY16. A final scenario projects vehicle procurement if additional DOD funding cuts are made, beyond those already incorporated in the FY13 budget request, to further address the national debt crisis. Highlights from the report include: the DOD has cut its vehicle procurement outlook for FY14 to FY20 by an average of $2.2bn annually compared with what it was outlining last year to what it indicates in its FY13 budget request and in its current programme modernisation plan; and US military ground vehicle procurement in FY13 contracts 39% from FY12 levels.
CompositesWorld.com Weekly, 8 May 2012. http://tinyurl.com/ccg8ovv
Balfour Beatty named preferred bidder for Midland Metro extension
Centro, the Midland region's transport authority, has appointed Balfour Beatty to develop a 'best and final offer' for the project bidder to build an extension of the Midland Metro through Birmingham city centre. Over the next few months Balfour Beatty will be working with Centro's project team and key stakeholders to finalise the design and construction proposals. The extension will provide a 'fast link between Birmingham's two major rail stations and deliver more than 3.5M passengers a year' into the heart of the city's shopping district. It is one element of a wider £127M project that will see a fleet of 20 new trams for the Midland Metro system, which runs between Birmingham and Wolverhampton.
www.rail.co. 3 May 2012. http://tinyurl.com/bwqtw5v
South West Trains & Network Rail form alliance
South West Trains and Network Rail are to launch a new alliance with 'the aim of delivering better rail services in the south and south-west of England'. A single senior joint management team now has responsibility for both trains and track on the route operating out of London Waterloo in a first for the UK rail industry. Its objective is to 'cut delays for passengers, provide better customer service, deliver more effective management of disruption, and improve the efficiency of the railway through more collaborative working and better decision-making'. The alliance is planned to run until 4 February 2017, the expiry date of the South West Trains franchise agreement.
www.rail.co. 30 Apr. 2012. http://tinyurl.com/72x3zsc
