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Volkswagen Extends Mexico Coronavirus Production Halt

An employee leaves the Volkswagen (VW) plant as the company will temporarily close its factories in Mexico amid growing worries over the spread of the coronavirus disease (COVID-19), in Puebla

MEXICO CITY (Reuters) – German automaker Volkswagen said on Wednesday it would extend until April 30 a suspension of activities at two production plants in central Mexico after the government declared a health emergency because of coronavirus.

Volkswagen <VOW.DE> is among manufacturers worldwide who are responding to a fall in demand, as well as supply chain challenges following measures taken to rein in the pandemic.

In a statement the company said the halt was extended from April 12 to comply with government orders for a suspension of all non-essential activities.

Volkswagen said it would continue to pay employees during the suspension. Mexico reported 37 deaths, up from 29 a day earlier, and 1,378 infections, up from 1,215, because of the virus.

(Reporting by Sharay Angulo; Writing by Stefanie Eschenbacher; Editing by Clarence Fernandez)

Austrian Airlines Will Temporarily Suspend Flight Operations

  • Last flight will land on 19 March in Vienna / all further flights are temporarily suspended until 28 March
  • Lufthansa Group: entire short and long-haul schedule significantly reduced again 
  • As of 17 March: ten percent of the originally planned capacity will still be available on long-haul routes and 20 per cent on short-haul routes 
  • Lufthansa Group airlines fly thousands of cruise passengers and holidaymakers home 
  • Arrangements for further evacuation flights 
  • Lufthansa Cargo flight operations carries out all planned flights despite corona crisis 

The Lufthansa Group carrier Austrian Airlines will temporarily suspend scheduled flight operations as of Thursday, 19 March 2020. Austrian Airlines is thus reacting to the entry restrictions imposed by many countries in response to the massive spread of the coronavirus. 

For the time being, the last flight with flight number OS 066 will land in Vienna from Chicago at 8:20 a.m. on 19 March. Until then, flight operations are to be reduced in a controlled and structured manner in order to bring all passengers and crews home if possible. Initially Austrian Airlines will cancel all flights until March 28th 2020, and passengers who have booked a flight with Austrian Airlines during this period will be rebooked on other airlines if possible. 

In addition, Lufthansa Group airlines will further reduce their short- and long-haul schedule. The cancellations, which will be published as early as tomorrow, March 17th, will lead to a sharp decline in long-haul service especially in the Middle East, Africa and Central and South America. Overall, the Lufthansa Group’s seating capacity on long-haul routes will be reduced by up to 90 per cent. A total of 1,300 weekly connections were originally planned for summer 2020.

Within Europe the flight schedule will also be further reduced. Starting tomorrow, around 20 percent of the originally planned seating capacity will still be offered. Originally, some 11,700 weekly short-haul flights were planned for summer 2020 with Lufthansa Group airlines. 

The additional cancellations will be published over the next few days and passengers will be informed accordingly. 

Despite the large-scale cancellations, Lufthansa, Eurowings and Austrian Airlines have scheduled more than 20 special flights with over 6,000 guests on short notice to fly cruise passengers and holidaymakers back home. Wide-body aircraft namely, the Boeing 747 & 777 and Airbus A350 are being used to offer as much capacity as possible on these return flights. Since thousands of German, Austrian, Swiss and Belgian citizens are still waiting to return to their home countries, Lufthansa Group airlines have made arrangements for further evacuation flightsand are in close contact with the governments of their home countries concerning this. Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG, said: “Now it is no longer about economic issues, but about the responsibility that airlines bear as part of the critical infrastructure in their home countries.” Lufthansa will work with airports and air traffic controllers to develop a coordinated concept for maintaining the critical infrastructure.

The new timetable for all Lufthansa Group airlines will initially be valid until 12 April 2020. Lufthansa Group passengers planning a trip in the coming weeks are advised to check the current status of the respective flight on their airline’s website before departure. If rebooking possibilities exist, the passengers concerned will be proactively informed about alternatives, as long as they have provided their contact details online. In addition, currently changed rebooking conditions apply on a goodwill basis. Customers can find more information about this at lufthansa.com. 

We are currently receiving an exceptionally high number of customer calls at our Service Centers and at our stations. We are continuously working on increasing capacity to meet this demand. Nevertheless, there are currently long waiting times. Passengers can use the extensive rebooking and self-service options on the airlines’ websites as an alternative to the Service Centers.

Unlike the passenger airlines, Lufthansa Cargo has so far been able to operate all its planned flights except for cancellations to mainland China. The Lufthansa Group subsidiary will continue to do everything in its power to maintain the flight operations of its own cargo fleet and thus support the global supply chains. Especially during the current crisis, logistics and thus also airfreight are of paramount importance.

Tesla Ordered by German Court to Stop Cutting Down Trees for Gigafactory

BERLIN (Reuters) – A German court on Sunday ordered Tesla Inc to stop clearing forest land near the capital Berlin to build its first European car and battery factory, a victory for local environmental activists.

The U.S. electric carmaker announced plans last November to build a Gigafactory in Gruenheide in the eastern state of Brandenburg.

The court ruling, by the higher administrative court of the states of Berlin and Brandenburg, comes after the state environmental office gave a green light to clear 92 hectares of forest for the plant.

Planning permission has not yet been granted to build the Gigafactory, however, meaning U.S. entrepreneur Elon Musk’s company is preparing the ground at its own risk.

In a statement, the court said it had issued the order to stop the tree-felling because it would have only taken three more days to complete the work.

Otherwise the clearance would have been completed before judges made a final decision on the complaint brought by a local environmentalist group called the Gruene Liga Brandenburg (Green League of Brandenburg).

“It should not be assumed that the motion seeking legal protection brought by the Green League lacks any chance of succeeding,” the court statement added.

Lawmakers from the pro-business Christian Democrat and Free Democrat parties have warned that the legal battle waged against the Gigafactory would inflict serious and long-lasting damage on Germany’s image as a place to do business.

Local and national lawmakers have been caught out by the strength of opposition to the Gigafactory, with hundreds of demonstrators protesting over what they say is the threat it poses to local wildlife and water supplies.

Tesla currently has two Gigafactories in the United States and one in Shanghai, China.

Tesla shares have surged 340% since early June as more investors bet on Musk’s vision.

(Reporting by Douglas Busvine; Editing by Lisa Shumaker)

Alstom Signs First Contract for Battery-Electric Regional Trains in Germany

Alstom will manufacture, deliver and maintain until 2032 eleven Coradia Continental battery-electric trains for regional traffic on the Leipzig-Chemnitz route on behalf of VMS (Verkehrsverbund Mittelsachsen) and with the support of ZVNL (Zweckverband für den Nahverkehrsraum Leipzig), the two authorities responsible for this line. The contract is worth approximately €100 million. Following this order, Alstom offers all types of traction systems on the market as well as the full range of emission-free drives, from efficient electric motors to hydrogen fuel cells and advanced battery traction. 

In 2014, Alstom had previously signed a contract with VMS for the delivery of 29 Coradia Continental electric regional trains (EMU). In order to bridge the 80 kilometres of non-electrified line between the cities of Chemnitz and Leipzig, the authority requested a battery-electric version (BEMU). The new trains will enter service in 2023. They will be built at Alstom’s German site of Salzgitter, in Lower Saxony. The battery traction sub-system is designed and supplied by Alstom’s traction centre of excellence in Tarbes.

“We are immensely proud to be providing the responsible authorities with a sustainable and perfectly-suited solution. Today, Alstom stands apart in being able to offer any form of emission-free traction currently on the market built into a proven solution. As a responsible company, Alstom has an intense focus on sustainable mobility, offering the best-fitting solutions that make it not only possible, but also cost-effective and attractive,” says Gian Luca Erbacci, Senior Vice President of Alstom Europe. 

The Coradia Continental BEMU trains will be similar to those already in service on the Dresden, Riesa and Zwickau routes. The main difference: they will also have high-performance batteries on the roof. The train, based on the proven Coradia Continental, builds on Alstom’s long experience in battery traction, gained with the Coradia iLint, Citadis trams and the Prima H3 locomotive. 

The Coradia Continental BEMU has a range of up to 120 kilometres and can be operated under catenary as well as on non-electrified sections. The three-car-trains will be 56 metres long and equipped with 150 seats. They will have a top speed of 160 km/h in battery mode. The capacity of the batteries (high-power lithium-ion) is calculated to ensure catenary-free operation of the line Chemnitz-Leipzig without any sacrifice in performance or comfort. 

Alstom’s Coradia range allows operators and transport authorities to offer their passengers regional trains that meet their needs and expectations, while demonstrating exemplary reliability and cost-effectiveness. Alstom has tailored the Coradia range to operate with all available emission-free power systems, from electric to battery-electric and hydrogen fuel cells. The latter, the Coradia iLint, powered by fuel cells and offering performance comparable to a diesel train while emitting nothing but water, has been in passenger service in Germany for over a year.

Delta, American Suspend All China Flights as U.S. Government Takes Action

WASHINGTON/CHICAGO (Reuters) – Delta Air Lines Inc <DAL> and American Airlines Group Inc <AAL> decided on Friday to temporarily suspend all remaining U.S.-China flights after the U.S. State Department elevated a travel advisory over concerns about the coronavirus.

U.S. officials were due to hold a call with airlines later on Friday to discuss the Chinese flights. Some airline officials worried that if they did not voluntarily halt flights it would prompt the Trump administration to take formal action, potentially complicating any subsequent flight resumption.

The United States told citizens on Thursday not to travel to China due to the epidemic that has infected nearly 10,000 people and been declared a global emergency.

Pilots and flight attendants have been demanding airlines stop flights to the country, with American Airlines’ pilots filing a lawsuit on Thursday seeking an immediate halt.

“The decision to file a lawsuit was made out of concern for the safety of our pilots,” said Dennis Tajer, a spokesman for the Allied Pilots Association which represents American’s pilots.

As of Thursday United Airlines Holdings Inc <UAL> was still planning to operate some flights from San Francisco, even after its pilots union told its members they would be allowed to drop their trip without pay if they were concerned about flying to the country.

Delta and American had both announced lighter schedules to China earlier this week.

On Friday, American said operations to and from China would be halted starting on Friday through March 27. The carrier will continue to fly to Hong Kong.

Delta said its last China-bound flight departing the United States will leave on Monday, Feb. 3, with the last U.S. return flight departing China on Feb. 5.

The Delta suspension is set to last through April 30.

U.S. airline shares have posted heavy losses this week on concerns of the financial impact of the virus.

Other airlines that have stopped their flights to mainland China include Air France KLM SA <AFLYY>, British Airways <ICAGY>, Germany’s Lufthansa <DLAKY> and Virgin Atlantic.

Major Chinese carriers were still operating flights to and from the United States as of Friday.

(Reporting by David Shepardson and Tracy Rucinski; Editing by Nick Zieminski and Tom Brown)

FILE PHOTO: Delta Airlines sit at Reagan National Airport outside Washington.

Alstom at ElekBu 2020

Alstom presents its improved Aptis e-bus at ElekBu

28 January 2020 – Alstom will present its Aptis electric bus at ElekBu 2020, being held in Berlin from 4 to 5 February. After extensive testing in many French and European cities for the past two years, the serial design of Alstom’s innovative 100% electric mobility solution incorporates feedback from passengers and transport operators. Following test drives in major German cities such as Berlin, Hamburg and Munich, the serial 12 meters Aptis e-bus is to be shown at a roadshow in Germany this year.

The serial vehicles are based on an optimized global architecture requiring fewer spare parts references and considerably facilitating maintenance operations. Thanks to a wheel steering angle of more than 40°, its ease of insertion increases significantly. The 15% reduction in the total weight of the vehicle, combined with the use of new, more efficient and state of the art batteries, substantially increases range. Aptis now accommodates more passengers, with a capacity of 100 persons, while still offering them more fluidity thanks to large sliding doors. 

In addition to the technical improvements, Aptis can also boast significant improvements to passenger comfort. A new air-conditioning system that (fully electrical heat-pump) maximises thermal comfort and the panoramic rear lounge has been enhanced to give a feeling of increased space. The new hydraulic suspension allows superior comfort and sound insulation, making Aptis one of the quietest and most innovative buses on the market. The high level of comfort is also reflected in the many very positive passenger surveys.

“Alstom is pleased to present the Aptis at ElekBu, which is so important for the German market. In the last two years, we have gained important experiences in trial operation. This 100% electric mobility solution offers a new experience to passengers and drivers while meeting the new mobility challenges of urban areas,” underlines Guillaume Legoupil, Sales Director Aptis.

Aptis is particularly popular in France, where it is also built. It has already been chosen by Paris in the context of Europe’s largest call for tender for electric buses, as well as by the cities of Strasbourg, Grenoble, La Rochelle and Toulon. From February, the first series buses will be in regular service in Strasbourg.

Volkswagen to Buy 20% of Chinese battery maker Guoxuan

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)

Daimler, Volvo Mull Combustion Engine Cooperation

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)

Ryanair’s O’Leary Prepared for More 737 MAX Delays

FILE PHOTO: Michael O’Leary of Ryanair at the Four Courts in Dublin

BERLIN (Reuters) – Ryanair <RYAAY> is prepared for further delays to the delivery of its Boeing <BA> 737 MAX airliners, its chief executive Michael O’Leary told German magazine Wirtschaftswoche, adding that he would only discuss compensation after the aircraft had been delivered.

The 737 MAX airliner has been grounded since March following two crashes which claimed 346 lives.

One of the world’s largest airlines, Ryanair has ordered 135 of the jets.

“We were meant to have 58 planes by the summer,” O’Leary said in the interview, extracts from which were published on Friday. “That went down to 30, then 20, then 10 and the latest is maybe only five. It’s possible we’ll only get the first jets in October 2020.”

In contrast to other airlines, including Turkish, Southwest Airlines <LUV> and Germany’s TUI <TUIFY>, which have already agreed compensation with Boeing, O’Leary added that he would only discuss compensation after the planes were delivered.

(Reporting by Thomas Escritt; editing by Thomas Seythal)

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