The doom and gloom continues and will likely do so for some time – we have just been told today that the UK is officially in recession. As if the 2m-and-rising unemployed, empty high street shops and temporarily shuttered factories hadn’t already made that obvious. Still, the auto business news, if not always encouraging, certainly remains interesting.
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Story of the Week – leaked on Monday ahead of a planned Thursday release – would be Fiat’s announcement of an alliance with Chrysler which, provided it passes due diligence and the feds, looks like a good deal for both parties. Chrysler, which could really use some good small cars and engines (the CO2 outputs of the petrol I4s it currently sells in Europe are way too high), as well as diesels (it currently buys in from VM and VW), gets access to that technology and Fiat gets access to US dealers and production facilities. It’s been about two decades since Fiat pulled out of the States and 15 years or so since Alfa left. Our Rob Golding, of course, has a view.
Then, just yesterday, a report suggested Fiat’s founding family fancied a merger with PSA – it’s complicated enough keeping up with all the alliances already formed.
As global sales tank, the automakers are clearly rethinking their emerging markets expansion plans. Hyundai has iced plans for a full manufacturing plant in Brazil, and postponed the start of construction of its Russian plant, while Nissan is ‘reviewing’ its involvement in a Moroccan JV plant with alliance partner Renault.
And Cadillac has halted its plans to launch in right hand drive Australia, too.
One interesting development, reported by our own Tony Pugliese, was China’s Changan Automobile’s plans to enter right hand drive Malaysia, eventually starting local assembly.
China already exports built-up RHD cars – we in the UK get our Honda Jazz (aka Fit) from there – but I had been wondering if this would be the first export of RHD CKD kits? Our emerging markets specialist Mark ‘Coolbear’ Bursa said no: Hafei Motor already exports CKD kits of its Lobo hatchback to Malaysia, where they are assembled for the local market by Naza and sold as the Naza Sutera.
It looks like Changan will be using Malaysia as a base to supply RHD ASEAN countries and perhaps Sri Lanka and South Africa. So why not RHD Australia and New Zealand, too? This’ll be one to watch.
Meanwhile, China’s BMW partner, Brilliance, announced a new domestic plant and Kia said it was still full steam ahead for its new assembly facility in the US.
And both Kia and parent Hyundai Motor posted profits, albeit down quite a bit, though analysts say the outlook for the pair is brighter than for most.
Finally, you might like to check out ‘Coolbear’s analysis of the Big Three’s prospects after this year’s Detroit show.
Enjoy the weekend.
Graeme Roberts
Deputy Editor
just-auto.com
