Tag: cars (Page 2 of 3)

Ford Posts Fourth-Quarter Loss, Disappointing 2020 Outlook

February 4, 2020 / WIL BALDWIN

DEARBORN, Mich. (Reuters) – Investors sent Ford Motor Co shares skidding on Tuesday after the company delivered a weaker-than-expected 2020 forecast, warning of higher warranty costs, lower profits at its credit arm and continued investments in future technology such as self-driving cars.

Shares in the No. 2 U.S. automaker plunged 9.4% in after-hours trading, shaving more than $3 billion off the company’s value. In comparison, electric carmaker Tesla closed up nearly 14%, pushing its market cap to $160 billion, more than four times the size of Ford’s $36.4 billion.

“The results were not OK in 2019,” Ford Chief Financial Officer Tim Stone told reporters at the company’s headquarters outside Detroit.

“As I look to 2020 and beyond, I’m very optimistic,” he said, while cautioning that Ford’s lower guidance does not yet account for the potential impact of the coronavirus outbreak in China.

In an after-hours call with financial analysts, Chief Executive Jim Hackett was more blunt about the challenge of balancing Ford’s protracted turnaround efforts with its continuing work on future technology, including electric and self-driving cars.

“I don’t think this company can keep straddling the old and new worlds forever … This company has to change,” Hackett said.

Ford said it expects 2020 operating earnings to be in the range of 94 cents to $1.20 a share. Analysts were expecting $1.26 a share.

Stone said Ford expects to continue its quarterly dividend of 15 cents, which could cost the company $2.4 billion in 2020. Asked about continuing the dividend after lowering its 2020 guidance, Hackett said, “We like to return value to shareholders.”

The disappointing 2020 forecast, coming after Ford previously trimmed its 2019 outlook, is a blow for Hackett, who took the helm in May 2017.

He has been asking investors to be patient with a restructuring that has seen the formation of a wide-ranging alliance on commercial, electric and autonomous vehicles with Volkswagen AG <VOWG_p.DE> and the sale of its money-losing operations in India to a venture controlled by India’s Mahindra & Mahindra.

But by Ford’s own accounting, the restructuring is far from complete. It has booked $3.7 billion of the projected $11 billion in charges it previously said it would take, and expects to book another $900 million to $1.4 billion this year.

For the fourth quarter of 2019, Ford reported a net loss of $1.7 billion, or 42 cents a share, compared with a loss of $100 million, or 3 cents a share, a year earlier.

The quarter included a loss of $2.2 billion due to higher contributions to its employee pension plans, something it disclosed last month.

Revenue in the quarter fell 5% to $39.7 billion, above the $36.5 billion Wall Street had expected.

Ford’s adjusted free cash flow fell 67% in the fourth quarter to $500 million, including the $600 million cost of bonuses related to a new labor deal with the United Auto Workers union. The UAW deal also played a role in driving North American automotive profit margins down to 2.8% in the fourth quarter.

Ford said its operating losses in China last year totaled $771 million, including a loss of $207 million in the fourth quarter. It lost $1.5 billion in 2018. Ford’s market share in China in the fourth quarter fell to 2% from 2.3% last year.

In December, Ford said it would halve its operating loss in 2019 and nearly halve it again in 2020, followed by further improvement in 2021.

However, that forecast was before the appearance of the fast-spreading coronavirus and its crippling effects on China’s economy.

Ford’s China sales fell about 15% in the fourth quarter and 26% for the year as it continued to lose ground in its second-biggest market. Ford has been struggling to revive sales in China since its business began slumping in late 2017.

Detroit rivals General Motors Co and Fiat Chrysler Automobiles are scheduled to report their results on Wednesday and Thursday, respectively.

(Reporting by Ben Klayman and Paul Lienert; Editing by Tom Brown)

Volkswagen to Buy 20% of Chinese battery maker Guoxuan

January 16, 2020 / WIL BALDWIN

Volkswagen logo is seen on a Teramont X SUV displayed at the second media day for the Shanghai auto show in Shanghai

HONG KONG/BEIJING (Reuters) – Volkswagen AG <VWAGY> is set to take a 20% stake in Chinese electric vehicle battery maker Guoxuan High-tech Co Ltd, two sources told Reuters, as the German firm accelerates its electric push into the world’s largest auto market.

The deal would mark Volkswagen’s first direct ownership in a Chinese battery maker and comes as the Wolfsburg-based automaker strives to meet a goal of selling 1.5 million new energy vehicles (NEVs) a year in China by 2025, including plug-in hybrid cars.

The top foreign automaker in China plans to acquire the stake in Shenzhen-listed Guoxuan via a discounted private share placement in the coming weeks, the two sources with knowledge of the matter said. Based on Guoxuan’s market capitalization of $2.8 billion, a 20% stake in the company at present is worth about $560 million.

The deal’s details have been mostly finalized and the two firms are waiting for new Chinese regulatory rules on private share placements that will provide a more flexible pricing mechanism and shorter lock-up periods for majority shareholders, said one of the people, speaking on condition of anonymity.

After the stake purchase, Volkswagen will become the battery maker’s second-largest shareholder with a 20% stake, behind Zhuhai Guoxuan Trading Ltd, a firm controlled by Guoxuan’s founder Li Zhen, which currently holds 25%.

Guoxuan is among a swathe of mid-tier Chinese battery makers behind CATL and BYD. It is based in China’s eastern city of Hefei, where Volkswagen is also building electric vehicles with JAC Motor, one of a number of its Chinese joint venture partners.

A third source, who declined to be named due to the sensitivity of the matter, said Volkswagen has long wanted to control a battery maker to better manage its supply chain.

Volkswagen declined to comment. Guoxuan and the China Securities Regulatory Commission did not immediately respond to requests for comment.

To achieve its NEV sales goal in China, Volkswagen has built a new $2.5 billion electric vehicle plant with partner SAIC Motor that will have annual output capacity of 300,000 cars and is also revamping manufacturing facilities in China’s southeastern city of Foshan to build electric cars with partner FAW Group.

Volkswagen has also identified CATL as a strategic supplier and Volkswagen board member Stefan Sommer told Reuters in July last year that it could even build its own battery cell manufacturing plants in China.

“By holding a stake in the top Chinese battery makers, carmakers can gain more bargaining power on battery prices,” said Yale Zhang, managing director of Shanghai-based consultancy AutoForesight. “Foreign carmakers are now catching up with their Chinese counterparts on securing battery supplies in China.”

Volkswagen’s rivals in China include Tesla, which earlier this month began delivering cars from its $2 billion factory in China. The U.S. electric car maker eventually plans to manufacture 250,000 vehicles a year in the plant’s first phase.

China has been a keen supporter of NEV – pure battery electric, hybrid and plug-in hybrids – and has started implementing NEV sales quota requirements for automakers.

However, cuts to subsidies have dealt the market a blow, with NEV sales contracting for the first time last year. Sales this year are likely to be flat or rise only slightly, according to China’s top auto industry association.

(Reporting by Julie Zhu in Hong Kong and Yilei Sun in Beijing; Additional reporting by Zhang Yan and Zhang Xiaochong in Beijing; Editing by Brenda Goh and Richard Pullin)

Toyota to Build Prototype City of the Future in Japan

January 6, 2020 / WIL BALDWIN

Akio Toyoda, president of Toyota Motor Corporation, speaks at a news conference, where he announced Toyota’s plans to build a prototype city of the future on a 175-acre site at the base of Mt. Fuji in Japan, during the 2020 CES in Las Vegas

LAS VEGAS (Reuters) – Toyota Motor Corp <TM> said on Monday it plans to build a prototype “city of the future” at the base of Japan’s Mt. Fuji, powered by hydrogen fuel cells and functioning as a laboratory for autonomous cars, “smart homes,” artificial intelligence and other technologies.

Toyota unveiled the plan at CES, the big technology industry show. The development, to be built at the site of a factory that is planned to be closed, will be called “Woven City” – a reference to Toyota’s start as a loom manufacturing company – and will serve as a home to full-time residents and researchers.

Toyota did not disclose costs for the project.

Executives at many major automakers have talked about how cities of the future could be designed to cut climate-changing emissions from vehicles and buildings, reduce congestion and apply internet technology to everyday life. But Toyota’s plan to build a futuristic community on 175 acres (71 hectares)near Mt. Fuji is a big step beyond what rivals have proposed.

The proposal highlights not only Toyota Chief Executive Akio Toyoda’s ambition, but also the financial and political resources Toyota can bring to bear, especially in its home country.

Toyota expects 2,000 people will live at the city initially, with construction slated to start next year. Toyoda called the project “my personal ‘field of dreams.’

“You know if you build it, they will come.”

Toyota said it has commissioned Danish architect Bjarke Ingels to design the community. Ingels’ firm designed the 2 World Trade Center building in New York and Google’s offices in Silicon Valley and London.

Toyota said it is open to partnerships with other companies that want to use the project as a testing ground for technology.

(Reporting by Jane Lanhee Lee and David Shepardson; Writing by Joe White; Editing by Dan Grebler)

Watch the 30 second Woven City YouTube video by clicking HERE!

Aston Martin Reveals Airbus ACH130 Aston Martin Edition Helicopter

January 6, 2020 / WIL BALDWIN

Aston Martin (ARGGY) just can’t help but outdo itself. From its entry in Le Mans, to building James Bond cars that actually work, to Aston Martin-themed motorcycles, and even embracing the manual gearbox after everyone else abandoned it—it seems that the British luxury marque is always looking to do the unexpected.

For its next trick, Aston Martin announced a team-up with airplane and helicopter maker Airbus to unveil the ACH130 Aston Martin Edition, a stylish helicopter embellished with four different interior and exterior designs provided by Aston Martin.

Exterior options include Stirling Green, Xenon Grey, Ultramarine Black, and a color simply dubbed Arizona. For the cabin, buyers get to choose between Oxford Tan, Cormorant, Ivory, and Pure Black. Matching leather and Pure Black ultra-suede makes up the rest of the interior. Aston Martin badging is embossed on the leather headrests to further distinguish this special edition for the standard ACH130.

Click the link for the full story and more pics!

Daimler, Volvo Mull Combustion Engine Cooperation

January 5, 2020 / WIL BALDWIN

BERLIN (Reuters) – Luxury German carmaker Daimler <DDAIF> and Volvo Cars, owned by China’s Geely, are considering cooperating to cut the costs of developing combustion engines, a magazine reported on Sunday, citing unnamed company sources.

The Automobilwoche weekly cited a Volvo manager as saying there were initial talks with Daimler, but no concrete plans, while a company spokesman said it was too early to talk about firm projects, although it was not excluding anybody.

A Daimler spokesman said the company’s cooperation with Geely, which owns a 10% stake in the German carmaker, was developing in a positive way, but declined to comment further.

Global tariffs, accelerated by a trade war between China and the United States, as well as higher investment requirements for electric and autonomous vehicles, are forcing carmakers to seek new ways to cut and share costs.

In October, Volvo said it would merge its engine development and manufacturing assets with those of Geely, creating a division to supply in-house brands and also potentially others with next-generation combustion and hybrid engines.

The Automobilwoche said this new division would start operating by the end of March, which could be a possible starting point for cooperation with Daimler, while a further step could be a partnership to develop electric power trains.

Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture and the two companies are also cooperating on a premium ride-hailing service in China.

Geely bought Volvo Cars in 2010 from Ford Motor Co <F.N>, allowing the Swedish brand to operate on an arms-length basis. But in recent years, it has deepened cooperation between the two brands.

Volvo already supplies engines to some Geely-branded vehicles, sharing technology through Geely’s Lynk brand. Both companies share and develop common vehicle platforms.

(Reporting by Emma Thomasson and Georg Merziger; editing by Jason Neely)

Bombardier Joint Venture Wins Contract to Build 160 New Chinese Standard High-Speed Train Cars

January 4, 2020 / WIL BALDWIN

With around 4,500 train cars already delivered, Bombardier’s Chinese joint venture is the only Sino-foreign entity to win a new Chinese standard high-speed train bid
New Chinese standard high-speed train cars to enhance passenger experience and contribute to the expansion of the world’s longest high-speed rail network

Global mobility solution provider Bombardier Transportation announced today that its Chinese joint venture, Bombardier Sifang (Qingdao) Transportation Ltd. (BST), has been awarded a contract from China State Railway Group Co., Ltd. (CHINA RAILWAY) to supply 160 CR400AF cars, a new Chinese standard high-speed train car for China’s evolving high-speed rail network. The 160 cars will be configured into ten 16-car trainsets with an operating speed of 350 km/h. The total contract is valued at approximately 2.97 billion CNY ($427 million US, 380 million euro). Bombardier Transportation owns 50 per cent of the shares in BST, which is consolidated by Bombardier Transportation’s partner CRRC Sifang Rolling Stock Co., Ltd.

Jianwei Zhang, President, Bombardier Transportation China, said, “We are very proud to have been chosen to supply the new generation of CR400AF cars, a high-speed railway car, through our BST joint venture. China’s high-speed rail industry has become one of the nation’s economic pillar industries and the high-speed network has brought greater mobility and prosperity to the public. Bombardier is proud of its contributions to China’s rail industry and looks forward to delivering more of the high-quality products that are helping China meet its ambitious long-term mobility goals.”

In 2018, BST won two contracts to build a total of 288 CR400AF cars and every car was delivered on-time and on quality. This latest contract is BST’s third and reflects the trust that CHINA RAILWAY has in BST’s efficiency, reliability and competitive edge. All 160 cars will be delivered by mid-2020.

Bombardier Transportation in China is the full solution provider across the entire value chain. From vehicles and propulsion to services and design, Bombardier Transportation in China has seven joint ventures, six wholly foreign-owned enterprises, and more than 8,000 employees. Together, the joint ventures have delivered 4,500 railway passenger cars, 580 electric locomotives and over 2,500 metro cars, Monorail, APM, and trams to China’s growing rail transit markets. It is a major signalling supplier to the Chinese high-speed network and through its joint ventures, propulsion equipment and signalling systems are utilized in a total of 30 Chinese cities.

After Tesla’s Record Year in Norway, Rivals Gear Up for 2020

January 3, 2020 / WIL BALDWIN

FILE PHOTO: A 2018 Tesla Model 3 electric vehicle is shown in Cardiff, California

OSLO (Reuters) – The sale of new electric cars in Norway rose by 30.9% last year amid soaring demand for Tesla Inc’s <TSLA> vehicles, but the pioneering U.S. firm faces rising competition from rival auto makers in 2020.

Fully electric cars made up 42.4% of sales in the Nordic nation last year, a global record, rising from a 31.2% market share in 2018 and just 5.5% in 2013, the Norwegian Road Federation said on Friday.

Seeking to become the first country to end the sale of fossil-fueled cars by 2025, Norway exempts battery-powered vehicles from the taxes imposed on petrol and diesel engines.

This year, as many as six in 10 of all new cars sold in the country could be fully electric, said Volkswagen <VWAPY> distributor Harald A. Moeller AS, which is preparing to launch several models in 2020.

“The electrification of the car market is accelerating … we forecast electric vehicles to hold a 100% market share in 2025,” the importer said of the outlook for Norway.

The country’s best-selling car in 2019 was Tesla’s mid-sized Model 3 sedan, which retails from 384,900 Norwegian crowns ($43,721.74), racking up an 11% market share in the California-based firm’s first attempt at addressing the mass market.

(Reporting by Victoria Klesty and Lefteris Karagiannopoulos, writing by Terje Solsvik, editing by Gwladys Fouche)

Alstom Commences Manufacturing of Rolling Stock for Mumbai Metro Line 3 (Aqua Line)

December 10, 2019 / WIL BALDWIN

Total of 31 metro trainsets comprising of 248 cars will be manufactured at the company’s state-of-the-art plant at SriCity

Alstom, leader in sustainable and smart mobility, today commenced the manufacturing of metro trainsets for Mumbai Metro Rail Corporation (MMRC) at its factory in SriCity, Andhra Pradesh. The ceremony was preceded by Mr. Alain Spohr – MD, Alstom India & South Asia. The first metro train after testing will be delivered by November 2020.

Alstom’s overall contract with MMRC for Line 3 is worth €452 million. The order includes manufacturing of 31 lightweight, fully-furnished modern metro trains of 8 cars each. Along with rolling stock, Alstom will also execute the power supply contract and equip Line 3 with Urbalis 400, its latest generation of CBTC signalling technology. The scope of the signalling contract includes unattended train operation (UTO), computer-based interlocking and centralised train supervision; an integrated telecom solution comprising of CCTV, passenger information, passenger annoncement and Giga bit network; platform screen doors, as well as the electrical and mechanical supervisory control and data acquisition system (E&M SCADA).

Speaking on the occasion, Alain Spohr, Managing Director of Alstom India and South Asia said, “This will be the new face of transportation for the commercial capital of India. Mumbai is a global city and it is set to get a world-class metro experience. The trainsets are custom-designed for Mumbai. Themed on Dynamic Fluidism that takes inspiration from the city, the train prioritises high interior density layout to maximise space efficiency. The trainsets will be able to accomodate at least 3000 people on a single trip, easing daily commute for Mumbaikars.”

He further added, “As announced earlier, we are on track to double our manufacturing capacity at SriCity – from 240 to 480 trainsets per annum. The factory is currently executing orders for Chennai Metro, Montreal Metro (Réseau Express Métropolitain) and Mumbai Metro Line 3. Alstom recently won a contract with Sydney’s NRT to supply the rolling stock and signalling system for the next stage of Sydney Metro. 23 six-car fully-automated Metropolis trains for the project will be manufactured at our SriCity facility.”

The Aqua Line trainsets will feature a host of safety elements including CCTV cameras, smoke detectors, emergency intercoms, fire extinguishers with wider detrainment doors to quickly evacuate passengers in case of an emergency. The inclusive design of trainsets will serve to the differently-abled individuals with ease of travel and includes dedicated space for wheelchair in every car. The overall exterior and interiors of the trainset are inspired by the undying energy of Mumbai and its people who are always on the move and hustle all day long.

Alstom will also train maintenance and operations staff for the project. It is also the first time that any metro train in India will have 75% motorization, enabling quick acceleration and deceleration thereby bringing about greater efficiency in operations. The trains will also be equipped with regenerative braking system aiding significant reduction in carbon emissions. In addition to the above features, it is the first UTO (Unattended Train Operation) project in Mumbai.

Alstom Avelia AGV Reaches 100 Million Kilometres Milestone in Italy

December 8, 2019 / WIL BALDWIN

Alstom’s fleet of 25 Avelia AGV very-high-speed trains operating in Italy has travelled a total of more than 100 million kilometres since entering service in April 2012, owned and operated under the service name Italo by Italo-Nuovo Trasporto Viaggiatori, the first private high-speed operator in Europe.

Italo, with its fleet composed of Avelia AGVs and Avelia Pendolinos, covers the entire national area served by high speed line, connecting a total of 25 Italian cities and 30 railway stations with 116 daily services.

“We are immensely proud that our trains have covered such a distance and transported so many passengers since beginning service. Add to that the Avelia Pendolino trains more recently delivered to NTV, and we have proof of the importance of high-speed rail services and Alstom’s unique ability to accompany its customers in the domain,” said Laurent Jarsalé, Vice-President of Alstom’s Mainlines Platform.

The Avelia AGV trains themselves run at speeds of 300km/h with the highest level of safety and comfort, thanks to an articulated architecture designed for very high speeds. The eleven-car configuration results in trains that are over 200 metres in length.

Passenger experience is at the centre of the Avelia AGV design. The train offers 100 mm of additional interior body width compared to conventional non-articulated very-high-speed trains and a bright interior thanks to the largest windows on the very high speed market. Passengers experience quiet and smooth travelling conditions – a result of bogies being placed between the cars.

The train also boasts long-term operational and financial benefits for the operator. This includes 15 to 30% less energy consumption compared to conventional non-articulated very-high-speed trains thanks to its lightweight, aerodynamic design and braking energy recovery. Maintenance costs are also up to 10% lower than non-articulated trains. The Avelia AGV is fully adaptable to operating needs: flexible configurations from 7 to 14 cars, and trainsets designed like a hollow tube that can be effortlessly fitted and refitted according to changing passenger requirements throughout the train’s 30-year lifespan.

Alstom Provides its Series 100 Renewed Cars to Line E of Buenos Aires City Metro

November 26, 2019 / WIL BALDWIN

Alstom will provide new cars for service to the enlarged Line E of Buenos Aires City metro, which represent a notable improvement for the metro cars of this line and an increase in passengers comfort.

The modernized cars of the series 100 produced by Alstom are incorporated into this line in which around more than 100,000 passengers travel per day, from the Plaza de los Virreyes station to Retiro in the centre of Buenos Aires. This modernization is in addition to the installation and validation of the signalling system in the three new stations of the E Line, completed successfully at the beginning of June.

Those metro cars are subject to a general review after 15 years to ensure their safety and efficiency. This “half-life” maintenance includes the disassembly, polishing, cleaning, profiling and painting or absolute replacement of all cars pieces and parts that are sent to Los Hornos workshop, in Las Plata. In that, full repair and maintenance’s are done by fifty professionals and workers, mostly from the same city, who works daily in the renovation of the cars that are part of the Buenos Aires metro network.

“The modernization of these series 100 cars for Line E is another proof of the enormous efforts that Alstom makes daily in its factory of Los Hornos to improve the travel´s quality of the thousands of users of the Buenos Aires city metro. To this we must add the activities that we have carried out recently in the expansion of Line E, with the incorporation of our state-of-the-art signalling system. We are proud of our customer’s trust in our experience, and we continue to bet on transforming the Argentine transport system” says Ernesto Garberoglio, General Director of Alstom Argentina.

Alstom has been present in Argentina since 1993, maintaining its presence over the years, which demonstrates a strong commitment to the country and its inhabitants. Dedicated to the transport sector on rails, it provides products and services to the metro operator of the City of Buenos Aires (Metrovías) and to the owner of the metro infrastructure (SBASE). It also has projects with Argentine Railways Infrastructure (formerly ADIFSE) and with the Railway Operator State’s Society (SOFSE) in the implementation of technological solutions for passenger and commercial transport.

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