Tag Archives: Europe

Another GM exec jumps ship

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The Detroit Free Press says Dave Lyon, who had recently been appointed as design chief for GM’s troubled Opel and Vauxhall brands, has left the automaker for parts, and reasons, unknown. The Freep said Lyon’s departure took place last Thursday, less than a week before Lyon was to report for duty at Opel.

Lyon, who had been with GM since 1990, was due to assume his new duties on Wednesday, August 1. He would have relocated from Michigan, where he had been managing interior design for Buick, GMC and GM North America, to Opel headquarters in Russelsheim, Germany.

The 43-year-old Lyon was appointed to replace Mark Adams, who has been named the new global design director for Cadillac and Buick. Adams will assume his new duties as scheduled but will remain the head of Opel design until a replacement for Lyon is found.

The abrupt departure adds to the problems facing GM and its money-losing European brands. So far this year, combined Opel/Vauxhall sales are down 14.9 percent and market share has dropped from 7.5 percent to 6.8 percent, just ahead of Fiat.

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European losses are sinking U.S. profits for Ford, GM

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Ford Motor Company reported second-quarter earnings that were down nearly 57 percent and warned full-year results would be lower than 2011.

Ford’s North American operations delivered positive news: operating profit rose 5.3 percent to a near-record $2.01 billion with operating margin rose from 9.8 percent to 10.2 percent. However, worldwide automotive sector results were weighed down by Ford’s European operations. Consolidated results show revenue down 6.3 percent to $31.4 billion, pre-tax operating profits down 39.3 percent to 1.382 billion and a drop in operating margin from 7.0 percent to 4.9 percent.

Ford’s Q2 U.S. light vehicle market share fell from 17.3 percent in Q2/2011 to 15.6 percent, while its retail share fell from 14.1 percent to 13.0 percent. Rather than an actual decline in results, the share declines are primarily due to resurgent Japanese sales following the recovery from the disaster-distorted results of the second quarter of 2011.

Ford European sales dropped 17.4 percent in June and market share fell from 8.1 percent to 6.8 percent. For the first six months of 2012, Ford Europe results are down 9.9 percent and losses totaled $404 million in the quarter. Ford, and other automakers operating in the EU are facing a number of challenges due not only to the continuing economic crisis but from very strong, and well-funded, competition for sales from Volkswagen.

Higher costs, lower sales and other factors combined to hurt Ford’s results in every market except North America. In addition to the European deficit, Ford lost $66 million in its Asia-Pacific operations and $163 million in what the company calls “Other;” primarily Ford’s investments in financially troubled Mazda.

Ford’s South America operations were in the black, but only by $5 million.

Growth in the BRIC (Brazil, Russia, India and China) has been tempered in recent months with Chinese trends uncertain and growing volatility in South America.

“The Ford team delivered another solid quarter driven by the strength of Ford North America and Ford Credit,” said Alan Mulally, Ford president and chief executive officer. “We remain absolutely committed to continuing to make progress on our One Ford plan, including dealing decisively with near-term challenges, investing for future growth, and developing outstanding products with segment-leading quality, fuel efficiency, safety, smart design and value.”

The company’s outlook for full year North America 2012 profits remains unchanged. Ford expects significantly higher pre-tax operating profit and margin compared with 2011, with significant sales expected for the the new Fusion launching in the second half of this year.

Ford South America is expected to show a profit in 2012, but it will be “substantially” lower than 2011′s results due to increased competition pressures, weakening currencies, and changes in government policies.

Higher incentives and reduced margins added to Ford Europe’s problems. The company is already dealing with a very unfavorable economic environment that has chopped the available market. Ford now believes it will lose more than a billion dollars in Europe this year.

In Asia Pacific and Africa, strong market factors were pulled down by higher costs associated with new products and investments to support higher volumes and future growth, among other reasons. Ford expects things will improve in the second half of 2012 as the investments begin to produce returns and new products, like the new Focus and Ranger are introduced.

Ford is not the only U.S. automaker having trouble in Europe: After a 61 percent hit to corporate profits due to a loss of more than $250 million in the first quarter, General Motors is playing “musical managers” in hopes of finding someone who can make a go of its money-losing Opel/Vauxhall operation. So far this year, Opel sales are down 15 percent and its market share is down to 6.9 percent, just slightly ahead of Fiat.

Some of the problems are of General Motors’ own devising. It’s still trying to decide in which segments Opel should play: mass market or upscale. In addition, GM has introduced the Chevrolet brand, a move that has been largely successful, but that success has likely come at the cost of Opel sales. Chevrolet sells the Spark, Aveo (our Sonic) Cruze, Camaro, Corvette, Malibu, Captiva, Orlando and Volt in Europe. A number of the Chevy models compete directly with Opel vehicles and some are actually clones. Others are rebadged vehicles from manufacturers like Suzuki.

In addition to too many models, a traditional GM problem, the company has had an overcapacity problem in Europe for several years and has, so far, been unable to arrive at a solution. It was widely expected the General would sell Opel and focus on expanding the Chevrolet and Cadillac franchises, which are already a part of its worldwide strategy. Some analysts still believe GM will ultimately dump the brand it has owned for nearly 90 years.

More bad news for Ford and GM is likely to come from Volkswagen, Europe’s dominant automaker and one of the few to still be making money and reporting growth in European sales. VW, which still has its eyes fixed on becoming the world’s largest automaker, just reported first-half profits of nearly $8 billion on revenues of nearly $117 billion and Volkswagen had a 23.8 percent share of June European sale. VW has its own troubles, most notably Spanish subsidiary SEAT and Swedish truckmaker Scania, but its other brands are churning out profits quite nicely.

With financial troubles even affecting Germany, Europe’s strongest economy, there are currently no signs of improvement for the vehicle market. U.S. sales volumes now exceed those of the entire 27-nation European Union and it looks like American profits will be covering European losses for some time to come.

’33 Alfa Romeo 6C wins at Concorso d’Eleganza

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At the Villa d’Este on Lake Como, the judging is done; the black-tie dinner and the parties have ended; the guests are departing: the 2012 Concorso d’Eleganza has come to an end.

The Concorso d’Eleganza Villa d’Este is among the world’s top classic car events, ranking alongside the Pebble Beach Councours. The venue is hard to beat for the beauty of the Italian landscape around Cernobbio and the elegance of the Grand Hotel Villa d’Este and Villa Erba. The organizers say visitors can experience “authentic aristocracy” as opposed to the “slightly commercial atmosphere” of other shows.

The first Concorso d’Eleganza was held in September 1929. The “Coppa d’Oro Villa d’Este” (“Gold Cup of Villa d’Este”) was organized by the Automobile Club of Como, the Grand Hotel Villa d’Este and the Comitato di Cura di Como. The show ran until the opening of World War. Following the Allied victory, organizers staged a show in 1947 but decided the Concorso should be a biennial event. The 1949 show was the last: the decline of the custom coachbuilding industry that had been the shows backbone as manufacturers recovered from the war forced organizers to suspend, then cancel, the 1951 show and another never materialized.

The Concorso d’Eleganza was revived in 1995 by Italian author Tito Anselmi, but the show lacked the stability needed to regain its former stature. In 1999, BMW became the show’s patron and the Concorso has grown ever since.

In 2002 a new prize, the Auto and Design Trophy, was created to honor concept cars. This unique prize, which sets the Concorso d’Eleganza apart from other councours events, has its roots in the original show as designers and cars companies would frequently present their latest ideas at the show.


2012 CONCEPT CARS & PROTOTYPES
Car Year Type Entered By
Pininfarina Cambiano 2012 Electric Luxury Sedan
Alfa Romeo 4C 2011 Sport Coupé Marco Tencone
Stile Bertone Jaguar B99 2011 4-Door Sedan Marco Filippa
Rinspeed Dock+Go 2012 2-seat Electric City Car Hans Roth
Ford EVOS Concept 2011 4-Door Sedan Martin Smith
Italdesign Giugiaro Brivido 2012 Hybrid Gran Turismo Fabrizio Giugiaro
Lexus LF-LC 2012 2+2 Hybrid Sport Coupé Kevin Hunter
Rimac Automobili Concept One 2011 Electric Coupé Mate Rimac
Aston Martin Lagonda Project AM 310 2012 GT Sports Ulrich Bez


This year, BMW presented its newest concept, the Zagato Coupe, as well as its first concept, the Paul Bracq-designed BMW Turbo of 1972 which later became the template for the BMW M1.

In addition to the public awards, an expert jury selects the winners of several more competitions. This year’s jury was led by Lorenzo Ramaciotti, head of design for Fiat and Chrysler. Jury members included: Charles Lord March, host of the Goodwood Festival of Speed and Goodwood Revival events; Patrick le Quément, former head of design at Renault; Harm Lagaay. former head of design at Ford, BMW and Porsche; Winston Goodfellow, journalist and automotive historian; Hideo Kodama, designer and illustrator; Stefano Pasini, eye specialist, freelance journalist and author of several automotive books; Nick Mason, founding member and drummer of Pink Floyd and passionate racing driver and Ian Cameron, Design Director for Rolls-Royce Motor Cars. Martin Roth, Director of the Victoria & Albert Museum in London, served as an Honorary Judge.


2012 Concorso d’Eleganza Awards
Coppa d’Oro Villa d’Este – Best of Show by Public Vote
1933 Alfa Romeo, 6C 1750 GS, 6th Series Coupé with Figoni body – David Cohen (Canada)
JURY AWARDS
FIVA Trophy – Best Preserved Pre-War Car
1935 Avions Voisin, C 25, Berline Aerodyne -
 René Rey (Switzerland)
ASI Trophy – Best Preserved Post-War Car
1969 Porsche, 917/K, Coupé – Mark Finburgh (UK)
BMW Group Classic Trophy – Most Sensitive Restoration
1968 Ford, GT 40 Mk3, Coupé – Gary W. Bartlett (USA)
Rolls-Royce Trophy – Most Elegant Rolls-Royce
1922 Rolls-Royce, Silver Ghost, Picadilly Roadster with Rolls-Royce Custom Coach Work body – Caesar Peier (Switzerland)
Vranken Pommery Trophy – Best Iconic Car
1956 Mercedes-Benz, 300 SL, Gullwing Coupé – Lionel Scotto le Massese (France)
Foglizzo Trophy – Best Interior Design
1954 Ferrari, 250 Europa, Coupé with Vignale body – Heinrich Kämpfer (Switzerland)
Auto & Design Trophy – Most Exciting Design
1975 Lamborghini, LP 400 Countach Coupé with Bertone body – Paul van Doorne (Netherlands)
Automobile Club of Como Trophy – Car driven from farthest away
1939 Tatra 87, Aerodynamic Sedan, Ringhoffe – Karol Pavlu (Slovakia)

European April sales figures released

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JATO Dynamics has released the light vehicle sales for April and, while the news still isn’t good, it generally isn’t as bad as previous months. In fact, April had the smallest deficit so far in 2012.

Total European sales fell 6.1 percent in April and now lag 2011 by 7.1 percent. Germany and Great Britain, Europe’s leading markets, posted sales increases while the other three major European markets, France, Italy and Spain all came up short. French sales dropped a comparatively minor 1.9 percent while sales in Italy and Spain, which are both embroiled in serious financial problems, were down by double digits. To show how different the situations are in the U.S. and Europe, the April sales totals for the U.S. appear below the European totals.

Volkswagen, which managed to dodge the bullet for the first three months of 2012, finally took a hit. Total brand sales fell 7.7 percent, putting the Wolfsburg automaker in the red for the first four months of the year. Renault and Opel/Vauxhall were the month’s big losers. So far this year, Renault is in the worst shape with sales down 22.9 percent, beating Fiat’s 19.5 percent plunge. Of the top ten brands, only the three German luxury marques, Audi, BMW and Mercedes-Benz are still in the black in year-to-date sales.

When it comes to the top models, VW was covered in red ink. Big drops were reported for the Golf, Polo and Passat. Ford and GM models also failed to match their year-ago numbers, though Ford took some solace in the Fiesta outselling the Polo this April. Of the top ten models, only the Fiat Panda and the new BMW 3 Series beat their April 2011 numbers.

Outside the top ten, new models like the Volkswagen Up, Toyota Yaris, Audi A6 and Mercedes B-Class are achieving the largest sales improvements, underlining the need for the beleaguered automakers to do what it takes to roll out new models. An overripe product line has been one of the factors in Fiat’s poor performance in the market.

Commenting on the findings, Gareth Hession, Vice President, Research at JATO Dynamics said: “The April sales results again demonstrate the importance of new models in driving increased sales, in an environment as uncertain and highly competitive as the European new car market.”


EUROPEAN LIGHT VEHICLE SALES BY COUNTRY
Country Apr-12 Apr-11 Change YTD 2012 YTD 2011 Change
Austria (est.) 33,783 33,317 1.4% 122,547 121,182 1.1%
Belgium 48,326 53,300 -9.3% 196,689 223,204 -11.9%
Croatia 2,622 4,169 -37.1% 13,468 14,670 -8.2%
Cyprus 977 1,051 -7.0% 3,865 4,747 -18.6%
Czech Republic 16,589 14,620 13.5% 60,118 56,646 6.1%
Denmark (est.) 14,208 13,423 5.8% 54,852 54,165 1.3%
Estonia 1,765 1,538 14.8% 6,423 5,283 21.6%
Finland 4,061 11,378 -64.3% 51,823 47,027 10.2%
France 166,552 169,757 -1.9% 674,393 817,211 -17.5%
Germany 274,066 266,251 2.9% 1,047,702 1,029,654 1.8%
Great Britain 142,322 137,746 3.3% 705,878 696,082 1.4%
Greece 4,407 10,109 -56.4% 21,526 35,353 -39.1%
Hungary 4,318 3,729 15.8% 18,403 15,228 20.8%
Iceland 726 293 147.8% 1,802 828 117.6%
Ireland 6,770 8,683 -22.0% 52,668 56,642 -7.0%
Italy 130,245 158,741 -18.0% 538,967 676,139 -20.3%
Latvia 884 845 4.6% 3,372 3,215 4.9%
Lithuania 1,061 1,164 -8.8% 3,933 4,031 -2.4%
Luxembourg 5,373 5,221 2.9% 18,884 18,644 1.3%
Norway 11,028 11,530 -4.4% 46,085 45,529 1.2%
Poland 23,841 22,222 7.3% 101,396 89,727 13.0%
Portugal (est.) 10,068 14,426 -30.2% 33,600 60,023 -44.0%
Romania 4,307 4,999 -13.8% 18,272 14,676 24.5%
Serbia 2,224 4,178 -46.8% 7,460 10,800 -30.9%
Slovakia 5,794 5,676 2.1% 22,399 21,399 4.7%
Slovenia 4,362 5,007 -12.9% 18,687 21,660 -13.7%
Spain 56,183 71,732 -21.7% 256,690 280,213 -8.4%
Sweden 23,336 28,940 -19.4% 91,312 98,704 -7.5%
Switzerland 27,871 27,611 0.9% 106,438 100,895 5.5%
The Netherlands 41,174 47,624 -13.5% 207,863 228,018 -8.8%
Total Europe 1,069,243 1,139,280 -6.1% 4,507,515 4,851,595 -7.1%
United States 1,184,567 1,157,923 2.3% 4,651,956 4,218,042 10.3%
TOP 10 BRANDS
Brand Apr-12 Apr-11 Change YTD 2012 YTD 2011 Change
Volkswagen 139,124 150,658 -7.7% 572,485 578,551 -1.0%
Ford 79,632 88,130 -9.6% 365,122 394,032 -7.3%
Renault 70,654 85,025 -16.9% 296,738 384,733 -22.9%
Peugeot 70,557 74,024 -4.7% 288,654 340,471 -15.2%
Opel/Vauxhall 68,798 82,015 -16.1% 296,437 353,486 -16.1%
Citroen 61,782 59,125 4.5% 252,249 284,808 -11.4%
Audi 61,171 58,997 3.7% 241,364 231,627 4.2%
BMW 55,574 53,826 3.2% 212,912 211,701 0.6%
Fiat 55,008 61,845 -11.1% 209,146 259,684 -19.5%
Mercedes-Benz 50,896 48,303 5.4% 203,221 188,736 7.7%
TOP 10 MODELS
Model Apr-12 Apr-11 Change YTD 2012 YTD 2011 Change
Volkswagen Golf 37,151 42,492 -12.6% 159,773 166,083 -3.8%
Ford Fiesta 25,927 28,444 -8.8% 117,108 130,305 -10.1%
Volkswagen Polo 24,193 31,476 -23.1% 111,615 125,529 -11.1%
Renault Clio 20,604 22,336 -7.8% 86,946 111,359 -21.9%
Opel/Vauxhall Corsa 20,338 24,357 -16.5% 93,838 108,713 -13.7%
Opel/Vauxhall Astra 20,019 24,445 -18.1% 84,129 104,356 -19.4%
Ford Focus 19,677 21,008 -6.3% 94,547 92,679 2.0%
Fiat Panda 17,268 16,724 3.3% 65,516 72,280 -9.4%
BMW 3 Series 17,171 14,707 16.8% 53,928 53,001 1.7%
Volkswagen Passat 16,863 22,315 -24.4% 72,379 75,842 -4.6%
European sales figures: JATO Dynamics. U.S. sales figures: Autodata

Ford News: Stop-Start now optional on Fusion, Texting in Europe

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Ford is now offering the same automatic engine start-stop feature found on the Fusion Hybrid as a $295 option on conventional Fusions equipped with the 1.6-liter EcoBoost engine. Priced at $295, Ford says the the system will improve fuel efficiency by about 3.5 percent. Drivers who spend a lot of time in slow-moving trafffic with frequent stops and starts could see savings as high as 10 percent.

“We expect the average Fusion driver with the 1.6-liter EcoBoost engine and Auto Start-Stop will save about $1,100 more than other midsize sedan owners during five years of driving,” said Samantha Hoyt, Fusion marketing manager. “That’s cash in their pocket and time saved with fewer trips to the pump.”

Ford cites a Treasury Department study that indicated that congestion consumed an estimated additional 1.9 billion gallons of fuel in 2011. That’s about five percent of all the gasoline used.

“Idling vehicles are consuming energy without doing any work,” said Birgit Sorgenfrei, Ford’s Auto Start-Stop program manager. “They’re also producing exhaust gases in a concentrated space that can contribute to air quality problems like smog.”

Ford says its system is fast and seamless: when the car comes to a stop, the engine can automatically switch off. As soon as the brake pedal is released, the engine re-starts itself and is ready to go by the time the driver presses the accelerator pedal.

“Our team has put a lot of effort into calibrating the Auto Start-Stop on the Fusion to make it as transparent as possible to the driver and passengers,” says Sorgenfrei.

A new study commissioned by Ford’s European operation shows that, despite stiff penalties that can even include jail time, nearly half of European drivers admit they have read texts while driving.

Ford undertook the study in preparation for the European rollout of its SYNC in-car connectivity system in the new B-MAX MPV. Ford’s SYNC and MyFordTouch have been criticized by federal authorities due to its potential for driver distraction. Ford wants to promote the use of SYNC’s text-to-speech feature and its ability to send a text reply by voice commands selected from a preset list of responses.

The study covered 5,547 drivers from Germany, Spain, France, Great Britain, Italy and Russia and found an average of 48 percent of those responding said they did check texts while driving. Results ranged from a high of 61 percent for Italian drivers to a low of 33 percent in the United Kingdom.

Showing that cognitive dissonance is not limited to the United States, 95 percent of those responding that texting while driving is dangerous. This is similar to findings from studies conducted by the National Highway Traffic Safety Administration that also showed people who admitted to texting while driving would be concerned if they were a passenger in a car in which the driver was texting.

“Smartphones have quickly become an essential part of many people’s day,” said Christof Kellerwessel, chief engineer, Electronic and Electrical Systems Engineering, Ford of Europe. “However, text messages can be a distraction for drivers, so the benefit of a system that can read messages aloud from compatible smartphones is obvious.”


PERCENTAGE OF EUROPEAN DRIVERS
Who admit to texting while driving Who also say texting is dangerous
Germany 49% Germany 95%
Spain 40% Spain 97%
France 49% France 96%
United Kingdom 33% United Kingdom 95%
Italy 61% Italy 93%
Russia 55% Russia 96%
Average 48% Average 95%