Steering specialist Nexteer Automotive’s comments, as it announced first half 2019 results, reflected what may other automakers and suppliers have been saying about 2019 so far – it faced “challenges”, including “slowing OEM light vehicle production in all regions and unfavourable foreign currency”.
Without providing comparisons, the steering specialist said it booked revenue of US$1.832bn and net profit of US$131m for the period. Grrr. But we had a remedy for that reticence. According to an article in just-auto‘s archive from a year ago, the comparable figures for first half 2018 were $2.047bn and $200m, respectively. Nexteer said its backlog of booked business increased 1.6%% to US$25.6bn when compared with year end 2018. The 13.5% decline in China OEM light vehicle production and a North America customer vehicle platform transition impacting revenue derived from the company’s steering column product line were the most significant factors driving lower revenue in the first half of 2019 compared with the same period a year ago, Nexteer said. CEO Guibin Zhao said: “We remain focused on executing our strategy for profitable growth and the results of our efforts are being recognised by our customers as evidenced by a growing backlog in an extremely competitive environment.”
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Indeed.
Next most popular read on just-auto this week was another in our ongoing series of BMW future models, Mini and Rolls-Royce. As we noted: “Having expanded the Mini range earlier this decade, BMW says its aim is now to fully focus on profitability. Deliveries dipped by 3.9% in the first half of 2019 to 174,344 units. Considering the steep fall of the Chinese market that’s a good result. As for Rolls-Royce, a record 2018 may even be beaten in 2019, the total for H1 being 2,534 cars, a year on year surge of 42.3”.
Of Rolls-Royce, we said: “The first deliveries of the Cullinan, which takes its name from the world’s largest discovered diamond, took place only 10 months ago. This 5,341mm long SUV is powered by a BMW 6,749cc biturbo V12 with outputs of 420kW (563bhp) and 850Nm (627lb ft). Rolls-Royce is expected to add an electric version in the 2020s. There should then be a facelift in 2023 which will last until the arrival of a second generation in 2028. Rolls-Royce hopes that the Cullinan will help it to sell in excess of 5,000 vehicles a year, which might even be attained in 2019. In 2017, the total was 3,362 cars, a 16% decline compared to 4,011 in 2016. However, in 2018, the division bounced back in dramatic style, selling a record 4,107 vehicles.”
Well worth a read as there’s lots more.
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By GlobalDataNew SUVS, they just keep on a-comin’. Latest this hour is from Kia Motors which reportedly has begun production of the new Seltos compact in India, initially for local sale, a month after the model reached showrooms in South Korea. The South Korean automaker began production of its latest SUV model at its newly-built Anantapur plant in the Indian state of Andhra Pradesh which has capacity for 300,000 vehicles per year. Industry reports suggested the factory was initially making entry level versions of the Seltos, fitted with 1.6-litre petrol engines.
Looking forward to trying one some day.
These days any mention of China is usually followed by a shudder. Sales of new passenger vehicles there fell by 5.3% to 1.5m units in July 2019, based on dealer retail data released by the China Passenger Car Association (CPCA). The data showed passenger vehicle sales fell by almost 9% to 11.63m units in the first seven months of the year, reflecting moderately slower economic growth in the country and falling domestic sentiment as trade relations with the US continued to deteriorate. The market this year has also been disrupted by new emissions regulations introduced in July and the long term switch to new energy vehicles through minimum sales quotas. Sales of new energy passenger vehicles, comprising mainly electric and hybrid models, rose by 53.7% to 645,000 units in the first seven months of the year.
The total vehicle market sales results weren’t much better. New vehicle sales dropped 4.3% to 1.808m units in July from 1.89m units a year earlier, according to wholesale data released by the China Association of Automobile Manufacturers (CAAM). This data included all vehicle types, including passenger vehicles and commercial vehicles.
China, for so long an engine of growth, now remains ‘challenging’, then.
More BMW future models as the penultimate feature in the series looked at i. At the moment, only the I01 i3, I12 i8 Coupe and I15 i8 Roadster exist but that will soon change, as more fully electric and plug-in hybrid models are added. At least one hydrogen fuel cell model is said to be in the planning stages too. Back in 2017, BMW Group’s then CEO Harald Krueger told the media at an event in Munich the company would offer 25 electrified vehicles by 2025. That would be across its brands and of the 25, a dozen would be EVs. Three months later, at another presentation in Munich, the CEO announced that the firm had secured naming rights for i1 to i9 and iX1 to iX9. Then earlier in 2019, the company stated that the 25 models would be available by 2023. Many of those electric or PHEV BMWs already exist or will soon: i3, i8, 225xe Active Tourer, 330e, 530e, X1 xDrive25e, X1 xDrive25Le, X3 xDrive30e, X5 xDrive45e, 745e, 745Le and 745Le xDrive. BMW’s first series production EV was the i3, project I01. This small car has been in production since mid-2013 and sales have risen steadily. Continuous tweaks have taken place, most of them adding range. The option of a 25kW two-cylinder petrol engine which acted as a back up was dropped in September 2018. This happened in conjunction with an upgrade for the battery pack, which now gives a WLTP maximum range of 193 miles.
Haven’t driven one in years but the REX I drove for a week – with the motorcycle engine behind me as backup generator – was great fun and beautifully made. The plant is fascinating, too.
There’s always one – now Tata Motors’ Jaguar is spearheading a campaign for the Oxford English Dictionary (OED) and Oxford Dictionaries (OxfordDictionaries.com) to change their official online definitions of the word ‘car’. The automaker said its all-electric I-Pace, strictly speaking, isn’t defined as a car. The OED, the principal historical dictionary of the English language, defines a ‘car’ in its online dictionary as: ‘a road vehicle powered by a motor (usually an internal combustion engine) designed to carry a driver and a small number of passengers, and usually having two front and two rear wheels, esp. for private, commercial, or leisure use.’ Whereas the current definition of a ‘car’ on Oxford Dictionaries.com, a collection of dictionary websites produced by Oxford University Press (OUP), the publishing house of the University of Oxford, is: ‘A road vehicle, typically with four wheels, powered by an internal combustion engine and able to carry a small number of people.’ To remedy the situation, Jaguar has submitted a formal application to the OED and OxfordDictionaries.com to have the definitions updated to include additional powertrains, including electric vehicles (EV). David Browne, head of Jaguar Land Rover’s naming committee, said “A lot of time and thought is put into the name of any new vehicle or technology to ensure it is consumer friendly, so it’s surprising to see that the definition of the car is a little outdated. We are therefore inviting the Oxford English Dictionary and the Oxford Dictionaries to update its online classification to reflect the shift from traditional internal combustion engines towards more sustainable powertrains.”
Must be slow news season. Or, as we old-timers used to call it, ‘silly season’.
Have a nice weekend.
Graeme Roberts, Deputy Editor, just-auto.com
