Tag Archives: vw

Business/Economics, International, Technology

Global Economic War: Russians have the money. Mazda, Renault, Nissan, VW, GM and Fiat make their move

“Russia is Mazda’s second largest market in Europe and sales are rapidly increasing. Mazda sold approximately 28,000 units during the period from January through September 2011, a year on year increase of approximately 77%!”-Mazda Motors statement

Mazda announced they’ve made an U.S.$80 million joint venture deal with Russian car maker Sollers.  By next autumn they will begin production of Mazda cars in the far eastern city of Vladivostok.

Mazda is not the only foreign car maker to make moves on the Russian car market: Renault-Nissan, General Motors, Izuzu, SsangYong, Fiat and Volkswagen have all started production in Russian factories.

 

Business/Economics, International, Technology

Global Economic War: Suzuki wants out of deal, VW could seek hostile takeover

There’s been a lot of news about a possible break up of the merger between  German VolksWagen and Japanese Suzuki.  Last week Suzuki demanded an end to the deal, but VW officials say there’s no way they’re gonna sell their stake in Suzuki.

Now, Der Spiegel says not only is VW not gonna sell it’s Suzuki stocks, but it’s looking like they’re going for a hostile takeover!

Currently VW holds 19.9% stake in Suzuki, and under current contract could acquire a majority holding.  But, under the current contact the same could be true for Suzuki taking over VW.

Such takeovers would require the consent of whoever is being taken over.  Right now Suzuki wants out.  Also, in the recent past VW officials say it’s become obvious that something was lost in translation concerning the partnership.

Originally VW officials thought Suzuki wanted German hybrid technology.  VW thought it was a good opportunity to get into the booming Indian car market, because Suzuki already had a strong presence in India.  Apparently that’s not what Suzuki had in mind.

 

 

Business/Economics, International

Global Economic War: VW says Suzuki broke contract, issues warning

September 11, VolksWagen claims Suzuki violated its contract by agreeing to purchase diesel engines from another car maker.

The two companies joined-up in December 2009, but their alliance stalled in July 2011 when Suzuki said VW does not see their partnership as equal.

VW says it will give Suzuki several weeks to return to buying diesel engines from Germany.

Business/Economics, International, U.S.

Global Economic War: After raising prices in U.S., GM lowers prices in China, losing out to VW

“The next 12 months look tough.  Incentives brought forward buying in a very dramatic fashion in 2009, 2010, and now we are seeing a lack of pent-up demand.”-Ashvin Chotai, Intelligence Automotive Asia

General Motors can’t stand the heat of the competition in China, so they’re sacrificing profit margin by dropping their prices, on minivans.

“GM does not rely on the minibus for profit, they only contribute volume.”– Jenny Gu, JD Power & Associates.

GM might not rely on minivan sales for profits in China, but they’re sure taking the competition serious.  GM’s sales of minivans, in China, dropped 3% this year, so far.  That’s important when you realize that China, not the United States, is now GM’s largest auto market.

The minivans that GM sells in China, are made in China, not the U.S.  One in eight vehicle sales in China are minivans.

It looks like VolksWagen is taking up the slack in GM’s lagging Chinese made minivan sales.  GM sold 1.27 million vehicles in China in the first half of this year, compared with VW’s 1.1 million.  This means VW could soon overtake GM’s number one foreign car maker position in China.

 

 

 

 

Business/Economics, International, U.S.

What Economic Recovery? German Auto Makers making big profits, but economists say the party is over

The Germany auto industry has seen skyrocketing sales this year, mainly in China and India.  But a Center Automotive Research at the University of Duisburg-Essen, Germany, study predicts dire sales in the near future.

CAR boss Ferdinand Dudenhöffer, says the growing debt problems of Europe, United States, and even Japan, will eventually drag down the world economy.  He predicts a “significant fall in growth” for the German auto industry.

Germany has the strongest performing car makers in the world.  According to the Center of Automotive Management, VW holds 1st place, Daimler 2nd, and BMW holds 4th place (Korea’s Hyundai holds 3rd).

However, Center of Automotive Management predicts German car sales in China will soon drop off.  So far Germany has seen 20% to 30% sales gains year after year.  CAM analysts believe that in the near future German car makers will be lucky to see 5% sales growth in China and India.

5% sales growth will not be enough to make up for predicted loses in other markets (like the U.S.): “The gains that will be made in China and India won’t be able to compensate for the slight losses in other markets.”-Ferdinand Dudenhöffer, Center Automotive Research

 

 

Business/Economics, Fukushima

VW was looking to buy Isuzu, rethink after March 11 disasters

Volkswagen has been considering taking over Japan’s Isuzu, in a joint venture with Germany’s truck maker MAN.  They’re a little hesitant after the 11 March 2011 disasters.

VW is also working on a partnership with Suzuki.  The German car maker has cited cultural differences as problems getting into the Japanese market, but now has to consider the damaged ‘just in time’ production practices in Japan, which is causing the current severe parts shortages.