News digest
Complied by Clive Goldthorp
1) Jaguar and Land Rover
Tata signs 'momentous' Jaguar Land Rover deal
Duncan Tift, Birmingham Post 2nd June, 2008
Ford, Tata and Jaguar finally make it official...
THE £1.15bn takeover of Jaguar Land Rover by India’s
Tata Motors has been officially confirmed. The deal marking the handover from
Ford was signed by senior executives today (Monday) at a low key ceremony at
JLR’s corporate headquarters at Gaydon, in Warwickshire.
Tata chairman Ratan Tata was present at the ceremony along with
Don Leclair, Ford’s executive vice president and chief financial officer,
and Lewis Booth, Ford’s executive vice president with responsibility for
Europe. Mr Tata said: "This is a momentous time for all of us at Tata Motors.
Jaguar and Land Rover are two iconic British brands with worldwide growth prospects.
We are looking forward to extending our full support to the Jaguar Land Rover
team to realise their competitive potential."
He confirmed that the two marques would retain their "distinctive
identities" and also reaffirmed his company’s commitment to JLR’s
latest business plan. "We recognise the significant improvement in the
performance of the two brands and look forward to this trend continuing in the
coming years. It is our intention to work closely to support the Jaguar Land
Rover team in building the success and preeminence of the two brands,"
he added.
In a statement, Tata confirmed that David Smith, who has been acting
chief executive of the two companies, would be staying on as the new CEO of
the business. Mr Smith, who has 25 years of experience with both Jaguar Land
Rover and Ford, said he was pleased the deal had been finally concluded. "We
are very pleased with the association with Tata Motors. We look forward to a
sustained bright future for the company and its stakeholders," he said.
The £1.15bn deal has been concluded on a cash free, debt-free
basis. The purchase consideration includes the ownership by Jaguar and Land
Rover or perpetual royalty-free licences of all necessary intellectual property
rights, manufacturing plants, two advanced design centres in the UK, and a worldwide
network of dealers. Ford has also contributed around £300 million to the
JLR pension plans.
Long term agreements have also been agreed for the supply of engines,
stampings and other components to Jaguar Land Rover. Other areas of transition
support from Ford include IT, accounting and access to test facilities. The
two companies will continue to cooperate in areas such as design and development
sharing platforms and jointly developing hybrid technologies and powertrain
engineering. Ford will continue to provide financing for Jaguar and Land Rover
dealers and customers for a transition period.Tata Motors also said talks were
at an advanced stage with leading auto finance providers to support the Jaguar
Land Rover business in the UK, Europe and the US. It is expected to select financial
services partners shortly.
Jaguar sales soar in United States
Birmingham Post 4th June, 2008
Jaguar marked its last month under Ford’s ownership with
a storming rise in sales in the US thanks to its new Birmingham-built XF saloon.
It was the only one of Ford’s brands to improve its market performance
in May as group sales slumped by 16 per cent in a rapidly deteriorating market.
Ironically, the May figures were released just 24 hours after Ford completed
the £1.15 billion sale of Jaguar and its sister West Midland carmaker
Land Rover to Tata Motors of India.
Jaguar had one of its best months for years in the US with sales
of 1757, an increase of 27.4 per cent over the same month last year. XF, 1757
units, accounted for the bulk of those sales. Since the car’s launch in
March, Jaguar has sold 3,457 in the US, a figure that justifies executives’
faith that it is the car to turn the company’s fortunes around after a
long period of declining sales.
Year to date figures show that Jaguar, which for the first two
months of the year was unrepresented in the medium saloon sector of the market
after the runout of the XF predecessor, the S-Type, was just 0.4 per cent adrift
in the US with sales of 7021 units. Jaguar last month also turned the tables
on Land Rover which has seen three years of record sales in the US come to an
end with a fall of 29.7 per cent in May. The Lode Lane company sold 3003 vehicles
in a market that is increasingly turning its back on SUVs amid high fuel prices
and was 23.5 per cent down over the first five months of the year with sales
of 14,292.
Range Rover Sport, the company’s top seller in the US, was
the only model to improve last month, gaining 5.6 per cent with sales of 1416.
Jaguar spokesman Don Hume said last night: “Obviously, we are absolutely
delighted that the XF is performing so well and these sales in the US are reflected
around the world. It is a terrific car and we are pretty proud of it.”
General Motors last night underlined the growing crisis in the
US automotive sector when it announced it was to close four truck and SUV plants
as surging fuel prices hasten a drive by consumers to smaller vehicles. The
future even of GM’s macho Hummer is being reviewed amid a possibility
that the brand could be sold.
Land Rover car sales shift into reverse
John Cranage, Automotive Correspondent Birmingham Post 6th June, 2008
The credit squeeze is putting the skids on Land Rover sales, unsurprisingly...
Land Rover saw its sales go into sharp reverse last month amid
signs that the credit squeeze, falling house prices and growing economic uncertainty
are hitting the luxury car market. The Solihull off-road specialist, now owned
by Tata Motors of India, has enjoyed three years of record sales both in the
UK and overseas thanks to the success of new models such as the Freelander and
Range Rover Sport.
But registrations fell by 33 per cent to 2518 units in May and
by eight per cent to 18,929 for the first five months of the year, according
to official figures. New registrations of 4x4s fell by 18 per cent overall compared
with May 2007, the Society of Motor Manufacturers and Traders, which compiles
the figures, said. Some competitors interpreted the decline as signalling that
high fuel prices and changes to vehicle excise duty (VED) are turning motorists
away from 4x4s. But Land Rover pointed out that most luxury carmakers had a
tough time last month. It also stressed that the SMMT figures omitted sales
of commercial variants of some of its models. Adding those back into the total
cuts the monthly fall to about 26 per cent.
“May last year was a very strong month, up 11 per cent on
the same month in 2006, and it also had one more selling day than year,”
a Land Rover spokesman said. “The ‘07 spec Defender was still getting
into its stride and the automatic gearbox diesel Freelander had just become
available. Now, we are seeing premium sector being hit by a lack of consumer
confidence, the credit squeeze and an uncertain economy. We anticipate that
it is going to be tough in the UK and US this year and we are shifting production
to meet growth in emerging countries such as China, Russia and Brazil.”
May was a strong month for Jaguar, Land Rover’s sister company,
thanks to demand for the new XF saloon car. UK sales rocketed by 64 per cent
to 2058 units, driven mainly by the popularity of the XF. Year to date sales
for Jaguar rose by ten per cent to 9537 units. Big increases in road tax for
“gas-guzzling” vehicles such as 4x4s have been the subject of much
debate of late at a time when petrol and diesel prices at the pumps are at record
highs.
The 4x4 dip in sales contributed to an overall drop of 3.5 per
cent in total new vehicle registrations last month. The May 2008 total was 179,272
and represented the first monthly fall since February - the dip following two
months of growth that surprised the motor industry. Demand for private cars
fell by 9.5 per cent last month, while business car sales were down even more
- by 15.4 per cent. Sales of mini-sized cars soared 120 per cent last month,
however.
Although diesel now costs about 130p a litre, sales of diesel-powered
cars still rose by 8.4 per cent last month. SMMT chief executive Paul Everitt
said: “The slow-down in the overall new car market in May comes as no
surprise and reflects concerns across the economy. The figures are in line with
our forecasts for 2008, and we expect a tough year ahead. Vehicle manufacturers
and dealers will have to work hard to attract consumers, who are facing increasing
household and motoring expenses.”
Sales of BMW’s British-built MINI fell by nine per
cent to 3429 units and were just over one per cent off at 18,876 for the year
so far. And Toyota, which has recently been snapping at the heels of General
Motors, saw its UK sales fall in May and over the first five months of the year
by 19 per cent and nine per cent respectively.
MINI's fall is slightly more surprising...
2) SAIC Motor/MG and Roewe
SAIC's own sports car
Shanghai Daily 4th June, 2008
SHANGHAI
Automotive Industry Corp debuted its latest concept sports car at an international
auto parts exhibition in Shanghai, which may likely be the city's first self-designed
luxury sports car.
The model, called Fengyi, meaning Phoenix's glory [We'll not
comment on the irony of that name - Ed], is developed by Yanfeng Visteon
Automotive Trim Systems Co Ltd, an equally owned joint venture invested by SAIC
and Visteon International Holdings Corporation.
The design of the red and blue car embodies a phoenix about to
take flight with the two headlights looking like the "eyes of a phoenix".
The sports car does not have an engine or transmission installed
as the firm wanted to showcase its design capability, said Yan Lixing, one of
the designers, cited by the Oriental Morning Post.
SAIC invested more than 6 million yuan (US$866,301) into designing
and building the sports car.
The model has attracted attention at the three-day Auto Components Shanghai
2008, which ends today at the Shanghai International Exhibition Centre, the
report said.
To boost the competitiveness of China's auto industry, domestic manufacturers
have been working to roll out self-developed models.
SAIC's self-branded Roewe 550 model was its first mass produced mid-class sedan.
Shanghai Auto Heads to Europe in 2009 With Roewe 550
Hu Lei, Correspondent, Edmunds Inside Line 5th June, 2008
SHANGHAI, China — Shanghai Auto's SAIC Motor is preparing
to market the new Roewe 550 sedan in Europe and other global markets beginning
in early 2009. SAIC still has no specific plans for exports to North America,
where the company maintains a purchasing liaison office but lacks a sales and
distribution network.
In Europe, the Chinese auto giant is planning to distribute some
vehicles through existing SsangYong dealers. SAIC owns a controlling interest
in the small Korean automaker. It is also actively seeking other European distribution
partners. SAIC unveiled the Roewe 550 in April at the 2008 Beijing Auto Show.
It is the first vehicle to be released following the company's acquisition of
struggling Nanjing Auto and, along with it, the rights to use the MG brand name.
The Roewe 550, like its larger sibling, the 750, is based heavily
on the old Rover 75 sedan, with all-new sheet metal and updated mechanicals.
A hatchback version is planned for 2009. SAIC reportedly has held talks with
Karmann about the possibility of assembling the Roewe 550 in Europe. It also
now owns and operates the former MG Rover plant in Longbridge, England, where
a revived version of the MG TF roadster is slated to begin production in August.
A companion model to the Roewe 550 sedan, to be called the MG6,
is scheduled to be introduced in 2009. Both models are designed to sell in export
markets, priced at about $18,000. What this means to you: While smaller Chinese
automakers like Geely and Chery are getting most of the media attention outside
China, the auto giant SAIC is quietly laying the groundwork for a major export
push in 2009.
3) Aston Martin
Aston Martin accelerates towards Stock Exchange flotation
AutoWired/Daily Mail 6th June, 2008
Aston Martin is set to be floated on the London Stock Exchange
in what is being viewed as one of the most sought after offerings ever seen.
The listing, which could value the business at around £500
million, will give hundreds of thousands of Aston Martin fans a chance to own
a slice of the iconic car manufacturer at a fraction of the cost of one of its
models.
Aston Martin Chairman David Richards says the company will go public
in three years' time to help fund the next round of its expansion.