BMW GROUP AND TOYOTA MOTOR CORPORATION DEEPEN COLLABORATION BY SIGNING BINDING AGREEMENTS

BMW Group and Toyota Motor Corporation sign contract

MUNICH : January 24, 2012 - BMW Group and Toyota Motor Corporation (TMC) are pursuing their successful strategic long-term cooperation in the field of sustainable mobility today by signing binding agreements aimed at long-term collaboration between the two companies for the joint development of a fuel cell system, joint development of architecture and components for a sports vehicle, and joint research and development of lightweight technologies. These agreements follow a memorandum of understanding signed in June 2012.

Furthermore, BMW Group and TMC also today signed a binding agreement to commence collaborative research on lithium-air batteries, a post-lithium-battery solution. This agreement marks the second phase of collaborative research into next-generation lithium-ion battery cells that commenced in March 2012.

The main points of the agreements are:

1. Fuel cell system

- The companies are convinced that fuel cell technology is one of the solutions necessary to achieve zero emissions. BMW Group and TMC are to share their technologies and to jointly develop a fundamental fuel-cell vehicle system, including not only a fuel cell stack and system, but also a hydrogen tank, motor and battery, aiming for completion in 2020.
- The companies are to collaborate in jointly developing codes and standards for the hydrogen infrastructure which are necessary for the popularization of fuel cell vehicles.

2. Sports vehicle

- The companies agreed to set-up a feasibility study to define a joint platform concept for a mid-size sports vehicle that is to be completed by the end of 2013. The two companies aim to combine each other’s technology and knowledge at a high level to maximise customer satisfaction. Both companies are to share the vision to further collaborate in the field of sports vehicle development.

3. Lightweight technology

The companies are to jointly develop lightweight technologies for vehicle bodies using cutting-edge materials such as reinforced composites, with an eye to utilize these technologies in cooperation on the joint development of a sports-vehicle platform as well as other BMW and TMC vehicles.

4. Post-lithium-battery technology

The companies are to begin joint research with a goal to develop a lithium-air battery with energy density greatly exceeding that of current lithium-ion batteries.

Norbert Reithofer, Chairman of the Board of Management of BMW AG said: “TMC and the BMW Group share the same strategic vision of future sustainable mobility. In light of the technological changes ahead, the entire automotive industry faces tremendous challenges, which we also regard as an opportunity. This collaboration is an important building block in keeping both companies on a successful course in the future.”

Akio Toyoda, President of TMC said: “It is just over a year since we signed our collaborative MoU, and with each day as our relationship strengthens, we feel acutely that we are making steadfast progress. Now, we are entering the phase that promises the fruit. While placing importance on what we learn from the joint development, we will work hard together in reaching our common goal of making ever-better cars.”

BMW Group and TMC first agreed to form a medium-to-long-term collaborative relationship for developing next-generation environment-friendly vehicles and technologies in December 2011, at which time the two companies also signed a contract under which BMW Group is to supply highly efficient diesel engines to Toyota Motor Europe. BMW Group and TMC ― as long-term strategic partners ― have since continued their joint efforts to realize sustainable mobility for the future.

[Source : BMW]

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VOLKSWAGEN GROUP OPENED NEW ENGINE PLANT IN MEXICO

Volkswagen engine plant in Silao

Volkswagen is further extending its commitment to manufacturing in North America. The engine plant in Silao in the central Mexican state of Guanajuato was opened today and is the Volkswagen Group’s 100th plant worldwide. The inauguration ceremony was attended by the President of Mexico, Enrique Peña, the Governor of the state of Guanajuato, Miguel Marquez, and Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft. The factory will supply Volkswagen’s North American vehicle plants in Puebla (Mexico) and Chattanooga (U.S.) with modern and fuel-efficient TSI engines produced locally in Silao.

Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, commented: “The Silao factory is the Volkswagen Group’s 100th plant and therefore represents one of the largest and most international production networks in the automotive industry. With this new plant we are driving our ambitious major North American offensive forward. Over the next three years the Volkswagen Group will be investing more than $5 billion in North America alone. Silao is thus also a strong symbol of our uninterrupted growth trajectory and the Group’s continuing internationalization.”

Strengthening its market position in North America is an essential component of the Volkswagen Group’s global growth strategy, based on models such as the Jetta, the Beetle, and the new U.S. Passat. These vehicles have been tailored to the demands of the market and are produced at North American factories with a high degree of localization.With the start of engine production in Silao, Volkswagen is continuing a success story in Mexico that spans almost 60 years. Along with the Volkswagen plant in Puebla, the MAN commercial vehicles factory in Querétaro, and the planned Audi vehicle plant in San José Chiapa that’s scheduled to begin production in 2016, the Group remains a key growth driver for Mexican industry.

Going forward, Silao will supply the North American vehicle plants in Puebla and Chattanooga with the latest generation of fuel-efficient TSI engines. The plant is designed for a medium-term annual capacity of 330,000 units. Investment runs at $550 million. Volkswagen will be creating more than 700 new jobs at the 148-acre plant in Silao in the medium term. Further jobs in the region will also be created at suppliers and in the service sector.

Engine production in Silao meets the high environmental standards of the Volkswagen brand’s “Think Blue. Factory” program. The aim of this program is to make more efficient use of resources and to achieve a sustained reduction in production-related emissions at all Volkswagen plants. As a result, all manufacturing equipment in Silao complies with the latest energy efficiency standards, thus achieving a significant reduction in the environmental impact of each engine that’s produced. Special roof lights in the production halls, for example, combined with energy-efficient lighting throughout the facility ensure optimum natural light levels and simultaneously absorb the heat generated by the lighting system. The improved-performance TSI engines (EA 888) from Silao combine excellent fuel economy and improved emissions with lower weight.

The CEO of Volkswagen de México, Andreas Hinrichs, drew attention to the Mexican automotive industry’s growth path in 2012 and to Volkswagen’s contribution, which consists of more than 600,000 vehicles produced in the country. “For us, Silao is a big step towards the future. Volkswagen is once again generating strong momentum for growth and employment in the Mexican automotive industry.”

Volkswagen de México currently builds four models for world markets at the Puebla plant. These are the Volkswagen Jetta, Golf Estate/Jetta SportWagen, Beetle, and Beetle Convertible. A total of 604,000 vehicles were manufactured in Puebla in 2012. Production of the U.S.-market Passat began in Chattanooga, Tennessee, in 2011 and more than 150,000 vehicles left the assembly line there in 2012.

The Volkswagen Group delivered 165,900 (2011: 153,300)* vehicles to customers in Mexico in 2012. The Volkswagen Passenger Cars, Audi, SEAT, Porsche, Bentley and Volkswagen Commercial Vehicles brands therefore recorded an 8.2 percent* year-on-year rise.

* including deliveries by the Porsche brand from August 1, 2012; excluding MAN and Scania

[Source : VOLKSWAGEN]

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His Majesty King Mohammed VI inaugurates new Renault-Nissan Alliance plant in Tangier, Morocco

Tangier Plant, Morocco - Photo : Yannick BROSSARD

The new Renault-Nissan plant in Tangier represents an investment of €1 billion. 

The new plant’s annual production capacity of 400,000 vehicles will play a part in ensuring the continued success of the Entry range across the world.

The Tangier factory is the world's first zero carbon and zero effluent automotive plant.

It is the southern Mediterranean basin's biggest automotive plant, with an estimated total staff of more than 6,000 by 2015.

TANGIER, Morocco : February 09, 2012 - Renault's presence in Morocco dates back more than 80 years. Today, its geographical location is situated between the Atlantic Ocean and the Mediterranean Sea at the heart of the Tangier Med Port area which benefits not only from an extensive network of competitive suppliers, but also from a pool of highly qualified staff with trained to modern automotive production techniques.

Dacia Lodgy manufacturing, Paint workshop

"Renault and Nissan share the Kingdom of Morocco’s high ambitions for industrial development,” said Carlos Ghosn at the inauguration ceremony. “Thanks to the mobilisation of Renault and its partners, as well as to the unfailing support of the Moroccan government, our plant in Tangier sets a new global standard for the automobile industry."


Production capacity geared to continuing the Entry range’s success story

 Production at the plant will begin with two new Entry models: the new family car, Lodgy, and a small van which will also be available in passenger car form. In addition to permitting higher production volumes, the new factory will enable the Entry range to expand, along with the models manufactured at the existing Pitesti (Romania) and SOMACA (Casablanca, Morocco) plants which are currently running to maximum capacity. It will ensure that the Renault Group is in a position to meet its customers’ growing demand for entry level vehicles which are acclaimed for their unprecedented value for money.

A competitive production facility

 Along with the Chennai plant, in India, the new factory in Tangier will make a key contribution to the global growth of both groups. Although controlled by Renault, it will apply the Alliance Production Way (APW) which is a fusion of the best manufacturing practices employed by Renault and Nissan. An ambitious staff training programme has been put into place to ensure the highest possible standards with regard to quality and performance. To provide training for factory staff and suppliers alike, Renault and Morocco jointly founded the IFMIA (Institut de Formation aux Métiers de l’Automobile) which is funded entirely by the Moroccan state. Meanwhile, Renault’s Global Training Center (GTC) in Flins, France, has provided training for 168 people involved with the project (training, management and technical staff).

Impact on the environment reduced to unprecedented levels for a body assembly plant

 Designed from the start to meet the standards of the Renault Group's environmental policy, the facility is the fruit of a unique partnership between the Kingdom of Morocco, Renault and Veolia Environnement. CO₂ emissions have been slashed by 98 percent compared to an equivalent factory with a production capacity of 400,000 vehicles per year, a feat which represents an annual saving of 135,000 tonnes of CO₂. The factory won’t discharge any industrial wastewater into the environment, either while the total amount of water necessary for manufacturing has been reduced by 70 percent. This result was achieved thanks not only to innovative production processes, but also to the employment of renewable energies and optimised water recycling management. This work was recently recognised by the European Union which awarded Renault at its fifth Sustainable Energy Europe Awards in 2011 (‘Production’ category).

Renault in Morocco

Renault has marketed vehicles in Morocco since 1928 and is today the country’s leading carmaker. In 2011, the Renault Group enjoyed a market share of 37 percent with two brands, namely Dacia (market leader) and Renault (number two). The group also owns the biggest automotive sales network in Morocco, with 64 sales outlets, while 97.4 percent of customers report that they are satisfied with the quality of Renault and Dacia’s sales service, and 92.4 percent state they are satisfied with the brands’ after-sales service. Renault also has a factory in Casablanca (SOMACA, an 80 percent Renault-owned subsidiary) which manufactures Kangoo (cars and vans), Logan and Sandero. [Source : RENAULT]

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About the Impact of Flooding in Thailand on Honda Operations

Flood damaged cars while waiting to destroyed at Honda plant in Rojana Industrial Park, Ayutthaya

Photo : AP Photo/Apichart Weerawong

AYUTTHAYA, Thailand : January 31, 2012 – Following is the most current information regarding the situation of Honda Automobile (Thailand) Co., Ltd. (HATC), the Honda automobile production subsidiary in Thailand (headquarter in the Rojana Industrial Park, Ayutthaya), which experienced damage from the flooding, as well as other Honda group companies located in neighboring Asian countries.  

 1.    Situation of automobile production plant (HATC) in Thailand

HATC, which has been suspending production since October 4, 2011, is making progress in restoring plant facilities and manufacturing equipment since completing the drainage of the flood water and cleaning of the plant facilities which began at the end of November 2011. HATC is expecting to resume production by the end of March 2012. 

  

2.    Situation of production operations in neighboring Asian countries

Honda’s production operations in the neighboring Asian counties, which suspended or made production adjustments due to the disruption in parts supply from Thailand, began resuming production. The production is expected to be normalized at all production operations by April.

3.    Flood control measures for the future

Honda is planning to take some additional flood control measures including conducting stationary measurement of water levels and working together with Rojana Industrial Park to build water protection walls around the plant. Honda will also make requests to Thai governments and the industrial park as needed to prevent the risk of flooding in the future. In addition, Honda will address the issues related to its supply chain, which became evident in the face of this disaster, and work together with suppliers to strive to avoid such risks in the future.

For an overview of the impact of the flooding in Thailand on Honda’s financial results, please refer to the press release titled “Consolidated Financial Summary for the Fiscal 3rd Quarter ended December 31, 2011.”  

About Honda Automobile (Thailand) Co., Ltd.

Location:                        Ayutthaya province, Thailand

Representative:             Hiroshi Kobayashi/President

Capital Investment:       5.46 billion baht

Capitalization Ratio:      75.94% Honda Motor Co., Ltd.

                                         13.05% Asian Honda Motor Co., Ltd.

                                         11.01% Others

Business Areas:            Production and sales of automobiles

Established:                    December 2000

Employment:                   Approximately 4,000 associates

Production Capacity:    240,000 units per year  

[Source : HONDA]

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Nissan to build new, $2.0 billion manufacturing complex in Aguascalientes, Mexico, grow capacity in The Americas

Nissan Plant in Aguascalientes, Mexico

• Phase I to enable 175,000 units of small car production capacity in the Americas
• 3,000 direct and up to 9,000 indirect positions will be created in the community

MEXICO CITY : January 25, 2012 - Nissan Motor Co., Ltd. today announced plans to invest up to $2.0 billion USD for an all-new manufacturing complex in Aguascalientes, Mexico, to support the company’s Americas growth strategy. The facility, which will complement Nissan’s two existing Mexican factories, is scheduled to begin operations in late 2013. During the initial phase of its development, the new complex will support production of up to 175,000 units annually of Nissan’s ‘B’ platform products. Further expansion of the site will be considered in phases as product and capacity needs are formalized.

The new complex in Aguascalientes will allow Nissan’s existing and future operations to share critical resources. An all-new supplier park also will be built on the site.

Up to 3,000 direct jobs will be created initially at the new facility, with approximately 9,000 positions to be generated within the supply chain and wider community. With these additional jobs, Nissan’s total headcount in Mexico will expand to nearly 13,500.

"Mexico is a key engine for Nissan’s growth in the Americas," said Carlos Ghosn, chairman and chief executive officer, Nissan Motor Co, Ltd. "Together with our new plant in Brazil, this new manufacturing facility in Aguascalientes is an important pillar in our strategy to ensure that Nissan has the capacity it needs to increase sales volume and market share across the Americas."

Investment in Aguascalientes

Nissan’s $2.0 billion USD investment will support development of the site in Aguascalientes – Nissan’s third in Mexico – and will lay the groundwork for the facility to expand in the future. While other Mexican locations were considered, the State of Aguascalientes was chosen for its proximity to Nissan’s existing manufacturing plant in the same state, which offers direct access to skilled labor and suppliers.

The addition of an incremental production site in Aguascalientes will prepare Nissan to produce more than one million units annually in Mexico in the midterm. Today, Nissan operates two manufacturing facilities in Mexico – one 85 km south of Mexico City in Cuernavaca that produces small cars and light commercial and pickup truck models, and a second in Aguascalientes that produces small cars for the domestic, U.S. and Latin American markets. In 2011, Nissan set a domestic production record with more than 600,000 vehicles manufactured at its Mexican plants.

"In Aguascalientes, we reciprocate the trust that Nissan has deposited in our State for 30 years with work, dedication and effort," said Carlos Lozano de la Torre, Governor of the State of Aguascalientes, Mexico. "During this new stage, we are solidifying our friendship, which will translate into success for this great global company and a more international profile for Mexico and better quality of life for the people of Aguascalientes thanks to new employment and wealth. We would like to extend our gratitude to Carlos Ghosn and the great Nissan family for extending their support, so that Nissan's new manufacturing complex could become a reality here in our home and their home."

The first phase of development for the new Aguascalientes site will include installation of body, trim and chassis and paint manufacturing capability as well as associated parts warehousing and logistics operations. An on-site test track also will be constructed to allow for off-line quality assurance testing of all new-model production.

"No other automaker is investing in Mexico more than Nissan," said Jose Munoz, president and general director, Nissan Mexico. "Nissan’s investment in new manufacturing, engineering and technology resources in Aguascalientes validates what thousands of our employees, suppliers and customers already know. Behind our market leadership is an unparalleled commitment to deliver the best vehicles for Mexico and more than 100 international markets."

Growing capacity to support Americas’ market expansion

Nissan’s expansion in Mexico follows the company’s recent announcement that it will build an all-new manufacturing facility in Resende in the Brazilian state of Rio de Janeiro. That factory will begin production in the first half of 2014 and, together with the newly installed capacity in Mexico, will provide Nissan with the capacity to fuel its growth throughout the Americas region.

In 2011, Nissan’s sales outpaced the Americas automotive industry, rising 17.2 percent to 1,561,230 units. This gain moved Nissan into the No. 2 ranking among Asian brands in the Americas with an overall market share of 7.5 percent, up from 7.0 percent one year earlier and 6.6 percent in 2009.

In the U.S., Nissan has gained market share for six consecutive years, ending 2011 with 8.2 percent of the U.S. market, up from 6 percent just a few years ago. In Mexico, Nissan has been the market leader for three consecutive years and ended 2011 with a record market share of 24.8 percent. In Brazil, Nissan’s business has been rapidly expanding with sales that nearly doubled in 2011. Nissan was Brazil’s fastest-growing automotive brand in 2011 and is now the 7th best-selling car brand in the country. In Latin America, Nissan finished 2011 with 10 percent market share, up 0.4 points from the year prior.

Nissan in Mexico

For more than 50 years Nissan has built an increasing presence in Mexico. Today, six of the ten most popular vehicles sold in Mexico are Nissan models. In 2011, the company sold 224,509 units in Mexico, an increase of 18.5 percent over the previous year, and Nissan Mexicana’s 2011 market share of 24.8 percent has never been surpassed by any automotive brand in more than two decades.

The company, headquartered in Mexico City, operates corporate, marketing, sales, manufacturing, distribution and design facilities throughout the country including in the cities of Aguascalientes, Distrito Federal, Cuernavaca and Toluca.

Nissan’s Mexican production includes the March, Sentra, Versa, Tiida, the historically popular Tsuru, as well as the NP300 light trucks. Seventy percent of production is exported to 100 international markets. Approximately, 80 percent of vehicle content is made in Mexico. The company currently sells 22 vehicle nameplates in Mexico from its global vehicle portfolio.

[Source : NISSAN]

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Chevrolet achieves best-ever global sales in 2011

DETROIT : January 20, 2012 – Chevrolet sold 4.76 million vehicles around the world in 2011, setting a global sales record and driving General Motors Co. (NYSE: GM) global sales to more than 9 million vehicles, a 7.6 percent gain compared with 2010.

GM gained four-tenths of a point of market share to 11.9 percent of the global vehicle industry. Sales were up in all four reporting regions – North America, South America, Europe and International Operations – as GM sold a total of 9,025,942 vehicles compared with 8,385,484 in 2010. The United States led the way for Chevrolet with total vehicle sales of 1,775,812, up more than 13 percent from 2010.

China posted record sales of 595,068, up 9.5 percent from the previous year. Other markets that posted significant year-over-year increases include Vietnam (79 percent), Russia (49 percent), Turkey (30 percent) and Germany (21 percent).

 “ Chevrolet’s impressive growth in both established and developing markets is the result of a strong new product lineup that meets the diverse needs of consumers around the world,” said GM Chairman and CEO Dan Akerson. “In addition to Chevrolet’s record-setting sales, the entire lineup of GM vehicles is meeting customer needs for fuel-efficient cars and work vehicles as well as unmatched luxury.

” Chevrolet is building its global presence by delivering cars like the Cruze, Sonic (Aveo) and Spark, the all-new midsize global Malibu, and crossovers and trucks like the Orlando and Colorado that are designed for the varied driving conditions and customer preferences around the world.

 The Chevrolet Cruze compact sedan led the brand with global sales of more than 670,000 in 2011, making it the best-selling Chevrolet nameplate around the world with more than 1.13 million sold since its launch in 2009. In the United States, Chevrolet was the best selling passenger car brand in 2011, thanks in large part to the success of the Cruze. More than 15 markets experienced record Chevrolet sales in 2011 with the largest year-over-year increases in Peru (81 percent), Vietnam (79 percent), Thailand (57 percent), South Africa (50 percent) and Israel (46 percent).

[Source : GM]

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Lexus to lose top spot in U.S. luxury car market

2011 Lexus RX 450h

CHICAGO, July 8, 2011 - Toyota Motor Corp's brand Lexus will end its streak of 11 years as the top luxury brand in the U.S. market due to lost sales in the aftermath of the Japan earthquake and tsunami, said Mark Templin, Lexus Division general manager.


Templin said Lexus U.S. sales will fall about 17 percent to around 190,000 vehicles in 2011.

The United States is the biggest market for Lexus.

All Lexus models, except the RX 350 crossover sport utility vehicle, are made in Japan.

Templin said the Cambridge, Ontario plant that makes the RX 350 will be back at full capacity in September.

Most Japanese plants assembling Lexus models have already returned to full strength.

However, the RX 450h hybrid SUV will not be at full production until October. The hybrid is typically 15 percent to 20 percent of RX sales in the U.S. market.

Lexus U.S. sales fell 38 percent in June as dealers ran out of key products. At the end of the month, dealers had about half their normal stock.

"June was the bottom of the trough, and we've turned the corner. We see the rest of the year being much better for us," Templin said, speaking to reporters at a Lexus media event in Chicago.

Lexus sales tumbled 18 percent in the first half of 2011 to 88,010, and German rivals BMW and Daimler AG's (DAIGn.DE) Mercedes-Benz sprinted by.

BMW's sales rose 13 percent to 113,705, and Mercedes-Benz climbed 7 percent to 110,926. If 2011 full year results end as expected, it would be the first time that BMW has outsold Lexus in the U.S. since 1997.

Templin shrugged off the significance of losing the luxury sales crown, and when asked if Lexus could reclaim the top spot in 2012, he said.

"Whether we're No. 1 or not, I don't care. We've never focused on that. We won't change our plan midyear because someone else is selling more cars than us."

BUICK SYNDROME?

Industry analyst Aaron Bragman of IHS Automotive Insight said on Friday the slump at Lexus goes deeper than a shortage of vehicles. He suggested that Lexus could suffer from the same stigma as did General Motors Co's Buick brand for the past several decades: old people's car.

Bragman said it would be "quite a challenge" for Lexus to reclaim No. 1 in luxury sales in 2012 even with full production because its lineup is not as alluring as it once was and it relies heavily on two models, the RX 350 and ES 350 sedan, a spinoff of the Toyota Camry.

The RX so far this year accounts for 45 percent of Lexus U.S. sales and the ES sedan 19 percent.

"Like Toyota, they've lost their momentum. They have an aging buyer base, and a lot of their dealers are afraid they will become the next Buick. Their new products haven't resonated with younger buyers."

The median buyer age for Lexus is in the mid-50s, and Templin said he is comfortable with that because it is a result of high loyalty.

Sportier models such as the IS sedan and CT hybrid sedan are attracting younger owners, said Templin.

[Source : RUETERS]

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Chrysler prepares to build small car that may increase Fiat stake

DETROIT : June 24, 2011 - Chrysler Group LLC said it plans to begin test production in the second half of this year of the small car that will trigger U.S. government requirements to increase Fiat SpA (F)’s ownership stake.


Tooling for the small Dodge brand car goes into Chrysler’s Belvidere, Illinois, assembly plant in August, Fred Goedtel, head of Chrysler’s assembly operations, said in an interview this week in Sterling Heights, Michigan.

“We’ll start pilots in the fall” and official production begins “sometime” in the first quarter, he said.

Design work on the car, which is the vehicle Chrysler expects will trigger the final government ownership milestone, is done, Ralph Gilles, head of Chrysler design, said in an interview in Chelsea, Michigan, yesterday. “The company is really focused on it,” he said of the vehicle.

Turin, Italy-based Fiat is consolidating control over Chrysler. Fiat is buying the U.S. Treasury Department’s final stake in the U.S. automaker, acquired as part of Chrysler’s 2009 bankruptcy reorganization. That purchase will raise Fiat’s stake to 52 percent on a fully diluted basis. Chrysler must test and commit to building a vehicle in the U.S. that achieves 40 mpg to gain another 5 percent stake.

Its deal with the U.S. and Canada allowed Fiat to gain as much as 35 percent in Chrysler without paying cash in exchange for giving management experience and technology to Chrysler and achieving various performance milestones. The 40 mpg vehicle is the final such milestone.

Fiat also exercised an option to purchase 16 percent of the Auburn Hills, Michigan-based company after Chrysler repaid the U.S. and Canadian government loans in May.
Sergio Marchionne, chief executive officer of both automakers, has said he expects Fiat will get its final 5 percent tied to the 40 mpg car by year’s end. The small Dodge car is being based on Fiat’s Alfa Romeo Giulietta technology, Marchionne has said.

Gilles said the new Dodge model’s name was decided earlier this week. He declined to provide the name.

[Source : BLOOMBERG]

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Mazda to jointly establish vehicle production facility in Mexico and Sales company in Brazil with Sumitomo

2011 Mazda 3 Facelifted with SkyActiv Engine

HIROSHIMA, Japan : June 17, 2011 — Mazda Motor Corporation today announced that it has signed formal agreements and begun preparations to establish a Mazda vehicle production facility in Mexico and a sales company in Brazil, in alliance with Sumitomo Corporation. Through the new joint ventures, Mazda and Sumitomo intend to combine their individual strengths in order to enhance both companies' business in the rapidly growing Central and South American markets.


The Mexico production facility will be established as a compact vehicle manufacturing hub mainly for Central and South America, and will include both vehicle and engine assembly plants. It will be constructed in Salamanca city, Guanajuato state, 250 kilometers northwest of Mexico City. Mazda and Sumitomo plan to commence operations in the fiscal year 2013 (April 2013 to March 2014) with an annual production capacity of 140,000 units. The facility will produce Mazda2 (Mazda Demio in Japan) and Mazda3 (Mazda Axela in Japan) models.

The Brazilian sales company will begin operations in the fiscal year 2012 (April 2012 to March 2013), before the production plant in Mexico is completed, and will initially sell vehicles imported from Japan. When the Mexico facility becomes operational, it will also sell vehicles shipped from Mexico.

Between 2005 and 2010, new car demand in Brazil doubled to approximately 3.5 million units. Currently, Brazil is the world's fourth largest automobile market following China, the United States and Japan.

Takashi Yamanouchi, Mazda's Representative Director, Chairman of the Board, President and CEO, said, "Since Mazda entered the Mexican market in October 2005, our sales results have steadily improved, and in 2010 we set a new record for both sales volume and market share. Building on this success, and by leveraging Sumitomo Corporation's extensive experience and knowledge of emerging markets, we will continue to strengthen our business in Mexico and throughout Central and South America, including the rapidly growing Brazilian market. These initiatives are part of Mazda's plans to achieve its mid- to long-term goals for emerging markets."

In accordance with the agreements, Sumitomo and Mazda plan to establish the local joint venture companies as follows:

Production company outline

• Company name : Mazda Motor Manufacturing de Mexico S.A. de C.V.
• Head office : Salamanca city, Guanajuato state, Mexico
• Investment : 500 million dollars
• Investment ratio : 70% Mazda, 30% Sumitomo
• Business outline : Manufacture and sale of Mazda vehicles and parts
• No. of employees (at full capacity) : approx. 3,000

Sales company outline

• Company name : Mazda Motor do Brasil Limitada
• Head office : Sao Paulo, Brazil
• Investment ratio : 70% Mazda, 30% Sumitomo
• Business outline : Import and sale of Mazda vehicles and parts

[Source : MAZDA]

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Nissan and Mitsubishi Motors sign contract for establishment of joint venture for minicar business

YOKOHAMA/TOKYO : May 20, 2011 - Nissan Motor Co., Ltd. and Mitsubishi Motors Corporation today announced that the two companies signed a contract for the establishment of a joint venture related to their minicar business in the Japanese market. The establishment of the joint venture was part of an agreement signed in December 2010 to expand the scope of cooperation between the two companies. The two companies will strengthen their competitiveness in the minicar business through this joint venture.


[Outline of New Joint Venture]

• Date contract agreement : May 19, 2011
• Date of establishment : June 1, 2011 (Planned date)
• Capital : 10 million yen

Capital structure:

• Nissan Motor Co., Ltd. : 50%
• Mitsubishi Motors Corporation : 50%
• Business description : Product planning and engineering of minicars for the Japanese market

Main board members:

• CEO (Chief Executive Officer): Junichi Endo
• COO (Chief Operating Officer): Shinichi Kurihara

[Source : NISSAN, MITSUBISHI]

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