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January 29, 2010

Forster to Become CEO of Tata Motors?

The supervisory board of India’s Tata Motors Ltd. will name former GM Europe President Carl-Peter Forster as CEO, according to Wirtschaftswoche. The German newspaper says Forster, 55, will be in charge of all Tata Motors operations, including its commercial vehicles business.

Forster resigned from his posts at GM Europe and Opel in November after General Motors Co. decided not to sell its Adam Opel GmbH unit to a consortium led by Magna International Inc. Forster had strongly supported the sale.

Ratan Tata, chairman of Tata Group and head of Tata Motors, confirmed in November that his company is conducting a search for his successor as chief of the $70 billion conglomerate.


Ford Reports €1.9 Billion Profit in 2009

In a stunning turnaround, Ford Motor Co. reversed a €10.5 billion loss in 2008 with a net profit of €1.9 billion last year—even though its global revenue fell 14% to €84.5 billion.

The company credits results to market share gains in North America, South America and Europe, more profitable pricing for new models in the U.S. and a €3.7 billion reduction in overall structural costs.

Ford reports its fourth-quarter net profit was a stronger-than-expected €621 million. It says operations in North America, South America, Europe and Asia all generated pre-tax operating profits for the period. The company lost €4.3 billion in the fourth quarter of 2008.

Ford of Europe reported a quarterly pre-tax quarterly operating profit of €218 million, compared with a loss of €242 million in 2008. Fourth-quarter revenue in Europe surged 15% to €6.2 billion, and unit sales jumped 19%.

The company says its Ford Motor Credit unit reversed a pre-tax loss of €266 million in 2008 with a pre-tax profit of €1.4 billion in 2009. Fourth-quarter results swung to a €498 million profit from a €266 million loss in 2008.

Ford notes that last year’s results were heavily influenced by year-end inventory reductions, tax refunds and a surge in production to rebuild inventories as sales improved in the fourth quarter. But it says it expects to generate pre-tax profits this year for its North American, automotive and overall company operations.

Ford predicts this year’s overall European market will be between 13.5 million and 14.5 million units, including medium and heavy trucks. It expects the U.S. market, also including commercial trucks, will total between 11.5 million and 12.5 million vehicles.


Toyota Extends U.S. Accelerator Pedal Recall to Europe, China

Toyota Motor Co. is recalling about 75,000 cars in China and a considerably larger but unspecified number in Europe to repair an accelerator pedal mechanism that can wear and bind, slowing or preventing the pedal from returning to the idle position after being released by the driver.

This month Toyota announced a campaign in the U.S. involving a total of about 2.3 million vehicles afflicted by the same problem. Repairs to those vehicles, which account for about two-thirds of Toyota brand sales in the U.S., await the development and government approval of a replacement system.

Media reports have estimated that Toyota’s recall in Europe could involve about 2 million vehicles. The company temporarily suspended production of affected models in North America until it could develop a new pedal mechanism. It says it does not need to stop output in Europe, where the new pedal system is currently being phased into production on a model-by-model basis.


Chevrolet Aims to Double European Sales in Five Years

General Motors Co. hopes to boost annual sales of its Chevrolet brand in Europe to 1 million within five years, says Wayne Brannon, president of Chevrolet Europe. He tells reporters growth will come from a “product renaissance” of new models over the next 18 months.

Last year Chevy’s sales slumped 16% to 426,000 units after demand plunged 50% to 105,000 units in Russia, the brand’s largest European market.

But Chevy sales in western Europe grew 15% to 171,000 units last year, aided by government-funded scrappage incentives that boosted sales of Chevy’s most popular Aveo and Matiz cars. Brannon says Chevy sales should get another boost this year when the Cruze compact sedan and Spark city car join the product lineup.


Volvo Sale Price: €1.4 Billion?

Ford Motor Co. will sell its Volvo Cars unit to Zhejiang Geely Holding Group Co. for €1.4 billion, says Bloomberg News, which cites unnamed sources. Previous media reports estimated the price would be between €1.1 billion and €1.4 billion.

Bloomberg says Ford is expected to divert between €143 million and €215 million of the proceeds to Volvo’s pension fund.

Ford bought Volvo in 1999 for €4.6 billion. If the deal is completed by summer as expected, Geely will be acquiring a company on the mend. For the fourth quarter of 2009, Volvo reported a pre-tax operating loss of only €23 million compared to a €527 million loss in the same period a year earlier. Revenue grew 17% to €2.8 billion.

Although it was hurt by an unfavorable exchange rate, Volvo managed to cut costs, boost sales and raise its car prices.


VW Golf Named Europe’s Safest Car

The VW Golf VI was the safest of 33 vehicles evaluated by Euro NCAP in crash tests last year. Other top finishers were the Honda Insight Hybrid compact car, the Toyota Prius hybrid and the Hyundai i20 supermini.

The Toyota Avensis large sedan, Volvo XC60 compact crossover and Opel Astra compact car tied for fifth place in the NCAP tests. The top finishers all received five-star ratings, the agency’s highest score.

Last year’s poorest performers included the Suzuki Alto city car and the Toyota Urban Cruiser small MPV, which both received three stars.

Euro NCAP evaluates vehicles with a 64-kph frontal crash, a 50-kph side-crash and an 18-kph side impact with a pole. The agency also evaluates pedestrian injuries caused by a collision at 40 kph.


Nissan U.K. Plant Boosts Qashqai Production

Nissan Motor Co. will a third shift in May to boost output of the Qashqai compact crossover model at its Sunderland, U.K., assembly plant. The company says the shift will continue for six months to support the introduction of the next-generation model that goes on sale in March.

Nissan expects to sell 200,000 Qashqai vehicles in the fiscal year ending 31 March, making the model its most popular in Europe. Last year, the Qashqai accounted for 60% of Sunderland’s output of 338,000 vehicles.

In autumn the Sunderland plant also will begin production of the Juke, a new and smaller crossover. Nissan will publicly unveil that vehicle on 10 February.


Autoliv Buys Delphi’s Safety Unit in Korea, China

Safety equipment supplier Autoliv Inc. is buying the seatbelt and airbag operations of Delphi Holding LLP in China and South Korea for an undisclosed sum. The units generate annual sales of about €179 million and supply such companies as Chery, Kia, Hyundai and Tata.

Autoliv says it expects to complete the deal by 31 March. Late last year Autoliv acquired Delphi’s steering wheel unit in Mexico and its safety systems businesses in Europe and North America. Those operations are expected to account for €107 million in sales this year.

Delphi has been selling off non-core businesses and eliminating thousands of jobs since it emerged from bankruptcy in October.

Autoliv, the world’s top producer of safety harnesses and airbags, is starting to enjoy a sales rebound after a difficult year. The company estimates its consolidated sales dropped 20% to €3.5 billion last year, although fourth-quarter sales were about 10% above year-ago levels because of strong demand in China and Europe.


U.K. Facility Adds Ability to Test Sun Exposure

The U.K.’s Millbrook vehicle test and development center has expanded its ability to duplicate the effect of the sun on vehicles and components through an entire day cycle, notes The Engineer Online.

Millbrook says its Variable Temperature Emissions Chamber can operate over a range of -40°C to +50°C. It new six-panel solar array can generate irradiance of more than 1,400 watts per square meter.

Tesla Plans “Low-Cost” EV by 2015

Tesla Motors Ltd. plans to debut a relatively inexpensive €21,400 electric car in six years that will be about the size of a BMW 3 Series sedan and sell in volumes of more than 150,000 per year, reports Autocar.

Tesla introduced its first EV, the Lotus-based Roadster, two years ago at a price of €71,600. It has sold 1,000 of the cars so far. Its next vehicle, the Model S sedan, debuts next year at €38,500. Coupe and crossover variants are expected to follow and help annual sales of the S to reach 30,000-50,000.

The third model, which has not yet been named, also will include other body styles in addition to a sedan. Tesla intends to build those cars and the Model S at a plant in California.

Think to Test Quick-Charge System for EV Batteries

Think Global AS says it is partnering with California-based AeroVironment Inc. to demonstrate an EV recharging system that can bring a fully depleted Th!nk City EV battery back to 80% capacity in 15 minutes.

The project was announced this week at the Washington auto show. Think said earlier in January it will open a U.S. manufacturing plant in Indiana next year that can build as many as 20,000 Th!nk City cars annually.

AeroVironment has previously developed quick-charge system for the U.S. military. The company also was chosen earlier this month by Nissan North America to supply home recharging systems and installation services to support the carmaker’s Leaf EV, which goes on sale in the U.S. later this year. AeroVironment’s recharging system for Nissan is expected to take about 26 minutes to achieve 80% power.

Study to Assess Impact of Climate Change on Traffic

The EU has begun a three-year research project to determine the impact on traffic systems of severe weather caused by climate change. The €2 million study will be coordinated by the VTT Technical Research Center of Finland.

VTT says the project was prompted by concern about the increase in cases of extreme weather caused by global warming. It will assess the cost of resulting disruptions in terms of damage, disrupted supply chains and human casualties.

The research center says the primary goal is to help Europe adapt to the likelihood of increasingly disruptive weather by assessing infrastructure, enhancing cooperation among authorities responsible for preparedness and “pre-engineering” risk management techniques. VTT notes that its findings may be useful to insurance, financial and business planners.

Researchers May Test Space-Based Solar Power Delivery System

Engineers at Astrium, the Paris-based space systems subsidiary of EADS, say the time is right to develop a system that gathers solar energy in space and delivers it back to Earth through a laser beam. They hope to launch a demonstration system within five years that can collect and beam as much as 20kilowatts to the ground.

The researchers say the surge in interest in electric vehicles makes the scheme especially appealing now. They point out that solar collectors in orbit around the Earth would be exposed to stronger solar radiation and for longer periods than is possible with solar panels on the ground.

The idea of collecting solar power in space and beaming it to Earth isn’t new. But Astrium says the technology to do so is now viable. They envision a system that collects solar energy and uses it to power a laser aimed at a mirrored collection point on the ground. They concede the higher cost of a space-based system and the relative inefficiency of converting the energy to a laser beam. But they contend that those factors would be offset by the system’s ability to operate for a much higher proportion of a 24-hour day—including delivering power at night.