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VW sees further drop in European sales

Volkswagen AG saw its European market share drop for the 13th consecutive month since the emissions scandal erupted in September 2015, as its competitors took advantage of a loss of confidence in the German carmaker to attract buyers.

Volkswagen, which was losing ground to its rivals even before it admitted to cheating on emissions tests last year, accounted for 22.9 percent of the region's auto sales in September, compared with 23.3 percent in the same month last year.

European car sales have been increasing since 2013, after rebounding from a two-decade low in the aftermath of the financial crisis. Growth has cooled in recent months as concerns grow about the UK's exit from the European Union.

Toyota, Suzuki agree strategic cooperation

Toyota, the world's top automaker, and Suzuki, a Japanese rival that specializes in small vehicles, are set to combine forces.

In a joint statement released recently, both sides announced that they will examine areas of possible collaboration, which could include the environment, safety and information networking.

The companies stressed, however, that the partnership in specific areas would not affect their competition in other respects.

They expressed the hope that other automakers would join the partnership in order to forge an industry-wide standard in areas where cooperation is possible.

Automakers report strong Sept sales

Honda and Nissan reported in September their strongest monthly vehicles sales growth for China. The growth was fueled by a tax cut on vehicles with a small engine capacity.

Nissan Motor Co, the most popular Japanese carmaker in China, said its sales rose 26.3 percent to 123,600 vehicles. Year-to-date sales rose 8.2 percent to 1.3 million.

Toyota Motor Co said its sales rose 11.2 percent to 104,200 vehicles. Sales for the first nine months of the year increased by a similar margin, reaching 890,000.

Ford posted its strongest growth figures since January, while Toyota's sales increased at their fastest rate since March.

General Motors Co announced that its sales in China grew by a record 16 percent to reach 343,773 vehicles in September. The US automaker's sales in China grew 9 percent to reach a record 2.72 million units in the first nine months of this year.

BYD embarks on e-bus venture in Hungary

BYD Auto is building a facility in Hungary to manufacture electric buses. The factory, which is under construction in the northern Hungarian town of Komarom, is the first of its kind in Europe.

The project is slated to cost 20 million euros ($22.4 million), to which the Hungarian government will contribute 925 million forints ($3.4 million).

The facility is expected to come online in the first quarter of 2017 and will begin by manufacturing 200 buses a year, a figure which will eventually rise to 400, according to BYD.

Carmakers announce recall over safety fears

Four carmakers will begin recalling a number of models due to safety threats posed to drivers. Carmakers have promised to replace defective parts free of charge.

A total of 56,121 units of Geely cars were recalled due to faulty Takata airbag sensors.

Dongfeng Yueda Kia is recalling 32,617 Kia KX5s equipped with dual clutch transmission in order to upgrade the transmission control unit program.

The aerodynamic supporting rods in the rear doors of 30,190 imported Mazda 5, CX-5, and 3 models are suspected to be damaged, and could pose a danger to drivers.

Electric system malfunctions are possible in 9,042 imported Volvo XC90 and S90s as a result of water leakage from improperly installed air conditioning draining pipes.

Daimler 'fighting' to cut its R&D spending

Daimler AG will scale back investments in plants, equipment and new technology from a peak this year stemming in part from its creation of the EQ electric-car sub-brand, amid a push to maintain profitability.

The manufacturer "is fighting" to get capital and research-and-development spending down, which has been surging as the industry faces regulatory pressure to reduce vehicle emissions and companies look to develop automated driving technology. Daimler is planning for electric cars to comprise as much as 25 percent of its deliveries in the next decade.

Switching well-established production and research setups from conventional autos to battery-powered models is also raising the need to cut costs to ensure future profitability. Daimler's cars division has a target to keep its return on sales at 10 percent.

Motoring-Agencies

(China Daily 10/17/2016 page19)