Platinum today: News/Automotive

Automakers report strong February sales in China and the US

Tue, 09 Mar 2010 00:00:00 GMT

US auto sales rose by 13 per cent on a year-on-year basis during February, despite snowy conditions keeping some consumers away from showrooms.

All the major automakers reported higher sales throughout the country, apart from Toyota, which suffered a nine per cent contraction due to its recent safety recalls.

Ford saw sales rise by 43 per cent and some analysts believe that it is now poised to overtake its Japanese rival as the world's largest automaker in terms of sales.

Meanwhile, General Motors (GM) posted a 12 per cent sales increase, with even troubled Chrysler - the other member of the Detroit 'Big Three' - recording a 0.5 per cent leap.

The other major winners were Honda, Hyundai and Nissan, which managed to achieve improvements of 13 per cent, 11 per cent and 29 per cent respectively.

Key Banc Analyst Brett Hoselton told Reuters: "We believe that sales in both January and February were much better than they could have been given weather-related issues, Toyota recalls, and seasonally weak demand.

"We continue to expect the overall trend in sales to move gradually higher throughout 2010 and into 2011."

In China, which overtook the US last year as the world's largest auto market, auto sales were up by 45 per cent to 881,085 units in February, according to the China Passenger Car Association.

However, this figure compares unfavourably with the group's reported transaction levels in January, when 1.22 million cars were sold, representing a year-on-year increase of 84 per cent.

The China Association of Automobile Manufacturers painted a more positive picture, suggesting that passenger-car sales jumped by 55 per cent to 942,900 units, while total vehicle sales were up by 46 per cent to 1.21 million.

An extension of the economic stimulus package in Beijing and buyers' eagerness to purchase vehicles prior to the Lunar New Year both contributed to this rise, the body noted.

GM enjoyed a particularly strong month in the country, with sales surging by 51 per cent to 174,306 vehicles on the back of economic growth and government stimulus measures.

"The continued strong market demand portends another record year for both the industry and GM in China in 2010," Kevin Wale, Head of GM China, told Bloomberg.

Moving to Europe, the VDIK foreign carmaker association revealed that Germany saw sales shrink by 29.8 per cent in February, representing the third straight month of declines.

The slump in the continent's largest auto market can be explained by the government incentives for new buyers expiring recently, particularly impacting on mini and compact car sales.

However, there was better news in the UK, where new car registrations increased by 26.4 per cent during the month, according to the Society of Motor Manufacturers and Traders (SMMT).

A total of 68,686 vehicles were registered, with private buyers leading the way as they capitalise on the government's scrappage scheme.

"Scrappage has generated eight consecutive months of growth," said SMMT chief executive Paul Everitt.

The positive trend also continued in France, where sales were up by 18 per cent in February, representing the tenth consecutive month of increases for the country.

In Spain, automakers' association Anfac confirmed that new vehicle registrations surged by 47 per cent during the month on the back of government subsidies for buyers.

"Solid demand is due to the continuation of the Plan 2000E by the national and regional governments," said the group in a statement.

Strong results were also witnessed in Italy - where sales leapt by 20.6 per cent to 200,560 units - but analysts have expressed concern about the stability of the market in the longer term.

Italian foreign carmakers' group UNRAE suggested that "terrible conditions" are impending after February orders slumped by almost 35 per cent from the same month in 2009.

Indeed, all European countries where government subsidies have been in place are expected to struggle to attract buyers into showrooms when the incentives come to an end.

Elsewhere, the Japan Automobile Dealers' Association revealed that auto sales in Japan increased by 35.1 per cent to 294,887 units on a year-on-year basis during the month.

The figure, which constitutes the seventh consecutive monthly improvement, can largely be attributed to the country's own tax breaks for anyone purchasing low-emission cars.

Despite Toyota's safety travails, the body confirmed that the company's domestic sales rose by 47.9 per cent as the product recalls have not yet been factored into the total.

"Sales in February mostly reflect solid orders received previously, probably in September or October," a spokesman at the association told the Wall Street Journal.

In Canada, 100,243 vehicles were sold last month, which was a 24.9 per cent rise from February 2009 and the third straight monthly rise, according to DesRosiers Automotive Consultants.

Despite Toyota's safety recall being factored into the Canadian figures, the company still posted a sales rise of 25.2 per cent, while Ford overtook GM and Chrysler as top automaker in the country.

A similarly impressive performance was registered in South Africa, where new vehicle sales for the first two months of 2010 increased by 18 per cent on a year-on-year basis.

Brand Pretorius, Chief Executive of retail vehicle group McCarthy, told Engineering News that the figure is a sign that the South African economy is emerging from its first recession for 17 years.

Finally, national automakers' association Anfavea announced that auto sales in Brazil hit 221,000 units, representing a 3.6 per cent rise from January and a 10.8 per cent leap from 12 months earlier.

The group also revealed that output in the country increased by 2.8 per cent from the previous month and 23.9 per cent on a year-on-year basis, reaching a total of 253,200 units.

Sources:

Feb. US auto sales plow ahead despite snow, Toyota (02/03/10)

U.S. auto sales weak (02/03/10)

GM China February Sales Jump More-Than-Expected 51% (03/03/10)

German new car sales drop 29.8 pct in Feb-VDIK (02/03/10)

UK car sales see continued recovery (04/03/10)

Japan Feb New Vehicle Sales +35.1% Y/Y, Up 7th Months In Row (01/03/10)

Japan Auto Sales Data Don't Reflect Toyota Recall (01/03/10)

French New Car Sales Jump 18% in February in 10th Straight Gain (01/03/10)

Europe car sales up in Feb., but tough times ahead (01/03/10)

Spanish Feb cars sales rise 47 pct-ANFAC (01/03/10)

Canadian auto sales surge in February, Toyota up (02/03/10)

South Africa: Vehicle sales continue growth path; Toyota holds steady (02/03/10)

Brazil Feb auto output, sales jump vs year ago (04/03/10)

China February Car Sales Rise 55Percent on Stimulus (09/03/10)

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Automotive Roundup March 2009

Mon, 01 Mar 2010 00:00:00 GMT

Volkswagen cuts global market sales forecast: report (23/01/10)

Volkswagen has lowered its sales estimate for the upcoming period to 2018 by 67 million vehicles, according to a new report by Automobilewoche.

In a letter seen by the news provider and quoted by Reuters, the company's former Head of Group Sales Detlef Wittig said: "This means a loss for the global market during this period that is equivalent to an entire calendar year.

"This effect would lead to sustainably lower group deliveries to customers versus the previous plan, and as a result to a lower financial result."

Honda's Global Output Rises to Meet China Demand (25/01/10)

Honda has revealed that its global auto production increased during December on the back of growing demand in China and recovering sales in the US.

The Japanese automaker confirmed that it built 286,826 vehicles over the course of the month, representing a year-on-year rise of 3.4 per cent.

Honda's Global Production Rises to Meet China Demand (23/02/10)

Honda also saw this trend replicated in January, with 290,752 vehicles being built, which was an increase of 28 per cent from the equivalent period 12 months earlier.

The firm revealed that demand from China - where it is set to build a second plant with partner Donfeng and take it into production in 2012 - again played a prominent role in the rise.

Toyota sees 2010 sales up 6 pct; to keep No.1 spot (26/01/10)

Toyota believes that it will witness a six per cent auto sales rise over the course of 2010, thus maintaining its position as the world's largest automaker.

The company predicted that group-wide sales will reach 8.27 million units, which is still some distance short of its record total of 9.37 million, achieved in 2007.

Scrapping boosted Jan car sales in Europe - ACEA (16/02/10)

Auto sales in European Union member states increased by 12.9 per cent to 1,058,868 units in January, according to new figures released by carmakers' association ACEA.

The data showed a large disparity between the western European countries, where scrappage schemes helped to boost sales, and their eastern European counterparts.

However, ACEA also confirmed that the total for new registrations represented a decline of 17.3 per cent from January 2008.

Europe's carmakers say economy far from stable (23/02/10)

Dieter Zetsche, President of ACEA and Chief Executive of Daimler, has suggested that European automakers could struggle to achieve significant sales improvements in 2010.

"If the economy looks better in 2010, it's only when compared with 2009," he said at ACEA's annual reception.

"And that's why it is so critically important not to endanger whatever little stabilisation has been achieved."

Ford Starts Production Of First Small Car In India (05/02/10)

Meanwhile, Ford has confirmed that it is now producing its first-ever small car in India in an attempt to make an impression on the burgeoning sector in the country.

The Detroit-based automaker is building the car, named the Figo, at a plant in Chennai which boasts an annual capacity of 200,000 units.

"This car is set to transform Ford from a niche player in India to [a] vehicle for the masses," said Raj Nair, Vice President of Operations at Ford Asia Pacific and Africa.

Mazda to Boost China Output Capacity to Meet Demand, CFO Says (23/02/10)

Mazda, in which Ford has an 11 per cent stake, has revealed that it hopes to increase production capacity in China as it looks to boost sales in the country by 22 per cent this year.

"We need to expand current capacity when we look into next year and the year after," Chief Financial Officer Kiyoshi Ozaki told Bloomberg.

Mexico Jan auto output leaps 102.4 pct vs year ago (08/02/10)

In Mexico, auto production increased by 102.4 per cent to 165,058 vehicles in January on a year-on-year basis.

The Mexican Automotive Industry Association also confirmed that the country's exports hit 114,193 during the month, representing a significant rise of 123.6 per cent.

Fiat shuts down six Italian car plants for two weeks (22/02/10)

Fiat has temporarily closed down six of its factories in Italy after reporting a "collapse in orders" following the conclusion of a number of scrappage schemes across Europe.

The two-week shutdown, which will run until the end of the first week in March, is affecting roughly half of the automaker's Italian plant workers (about 30,000 people), who have held protests against the move.

Car industry just out of 'intensive care' (26/02/10)

Automaker executives will convene at the Geneva Motor Show this week knowing that the industry has managed to survive its toughest period for decades, the Financial Times reports.

However, the sector will also be wary that it has yet to fully cure its "chronic problems", while the negative impact of scrappage schemes reaching their conclusions could be notable.

"If you look globally, the industry is very much out of intensive care but it still requires a lot of monitoring going forwards," Calum MacRae, Lead Auto Analyst at PricewaterhouseCoopers, told the news provider.

Mercedes-Benz F800 pairs hydrogen fuel cell and plug-in hybrid (20/02/10)

Mercedes will unveil a new concept vehicle which combines fuel cells with plug-in hybrid technology at the Geneva Motor Show.

The F800 Style is capable of attaining zero-emission status by travelling for 18 miles on electric power after being charged, before calling on hydrogen fuel for another 375 miles.

"We are dedicated to reconciling our responsibility for the environment with practical customer utility in a fascinating automobile," said Thomas Weber, the Daimler Board of Management member responsible for research and development.

Clearing the Air at American Ports (25/02/10)

Finally, short-haul trucking companies in the US should be responsible for buying new rigs in order to clear the air at the country's ports, it has been suggested.

The Teamsters union and environmental activists have formed a partnership to push the idea that the emphasis for change should be shifted away from the truck drivers.

"We think if you have the big trucking companies own the equipment and maintain it, the trucks will be cleaner," David Pettit, Director of the Natural Resource Defense Council's Southern California Clean Air Program, told the New York Times.

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Diesel engine interest could affect platinum demand

Mon, 22 Feb 2010 00:00:00 GMT

Increasing interest in diesel engines in the US could impact on the demand for platinum.

According to executives from automobile components supplier Robert Bosch, US consumers are becoming much more interested in diesel-powered vehicles, which use predominantly platinum catalysts.

In an interview with Ward's, Lars Ullrich, director of marketing diesel systems at Bosch, said diesel cars are no longer associated with a lack of speed, too much noise and an unattractive smell.

Instead, consumers in the US are now focusing on the impressive fuel consumption of diesel vehicles.

As an illustration of this, Mr Ullrich said Maryland Congressman Steny Hoyer had been surprised to hear that the Volkswagen Golf TDI could travel 700 miles on one tank of fuel at last month's Washington Auto Show.

Other people at the show, Mr Ullrich told the news provider, were also "amazed" by how clean the cars are, how quiet they are and how far they go on a single tank.

However, Johannes-Joerg Rueger, head of North American diesel operations at Bosch, believes the current way of boosting demand for diesel vehicles in the US - through the use of tax breaks - is unsustainable.

"You can do some stimulation with tax incentives for a few thousand (units), but you can't do that for a million, for the whole market," he told the same publication.

That said, Mr Rueger is not looking for diesel solutions to be given an unfair advantage over consumers.

"From our perspective the technology that is most efficient and is best for the individual consumer will be chosen by the individual consumer," he confirmed.

Indeed, he noted that in some respects diesel technology is not being given the same support as other substitutes for petrol.

Specifically, diesel power was largely ignored by the $25 billion loan programme included in the 2007 Energy Independence and Security Act, which looked to boost the viability of alternative fuels.

A study conducted by CNW Research recently showed that consideration for diesel engines among new car buyers in the US had risen from 10.6 per cent in October 2005 to 21.5 per cent in December 2009, with a peak of 23.7 per cent enjoyed in August 2008 on the back of record petrol prices.

Source:

Diesels Turning Heads in Showrooms, Halls of Congress, Bosch Says (18/02/10)

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