The weak economy knows no borders, rampaging across the globe taking its toll in lost jobs and bankruptcies. The car industry in particular is no stranger to this strife, and some might say Great Britain's carmakers most of all, considering their rocky history. In late January UK Business Secretary Lord Mandelson announced the government would offer loans totaling up to £1.3 billion with another £1 billion in guarantees to the struggling industry (£2.3 billion, or $3.25 billion in total), but it had to clear approval with the European Commission's trade practices authorities. Today that approval has come through, and the government is now... The weak economy knows no borders, rampaging across the globe taking its toll in lost jobs and bankruptcies. The car industry in particular is no stranger to this strife, and some might say Great Britain's carmakers most of all, considering their rocky history. In late January UK Business Secretary Lord Mandelson announced the government would offer loans totaling up to £1.3 billion with another £1 billion in guarantees to the struggling industry (£2.3 billion, or $3.25 billion in total), but it had to clear approval with the European Commission's trade practices authorities. Today that approval has come through, and the government is now accepting bids for shares of the funding.
Far from a bailout, and coming up well short of the $17.4 billion already promised to U.S. carmakers, the UK loans package will be directed at helping UK car manufacturing facilities stay afloat, preserving jobs for Britain's industrial sector. A separate grant of $27 million was made to Land Rover for the production of the LRX.
"There is a certain amount of cynicism by some suppliers who want to know exactly how the money will be distributed. In order to be eligible, you have to be a reasonably solid company with a specific project," a source inside the UK's Business, Enterprise and Regulatory Reform (BERR) department told Reuters on condition of anonymity.
Union officials think the UK loan funds are inadequate to stanch the flood of lost jobs, however, reports The Telegraph. "Two billion pounds sounds like a lot of money but at least half of this will be taken up by Vauxhall and Jaguar Land Rover alone, leaving little or nothing for the hundreds of component companies. This is a fraction of the support being given by almost every other government in Europe," said Tony Woodley, joint leader of Unite, the union that represents the UK's autoworkers, among others.
Lord Mandelson agrees that more must be done to preserve the ailing car industry, but sees it as part of an overarching scheme to help the British economy weather the global recession.
Preserving automotive jobs in the near term will be a key element in keeping Britain's economy afloat, however, as the car industry employs about 1 million people in the UK by Lord Mandelson's count.
"We need to counter this to prevent an irreversible loss of capacity, skills and technology," he said. "The health of the automotive industry is vital to the strength of manufacturing in Britain and is at the heart of many of our regional economies."
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Motor Authority - blog Tag: EU
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UK auto aid approved by EU, now accepting bids for share of £2.3 billion
UK auto aid approved by EU, now accepting bids for share of £2.3 billion March 11th, 2009 By
Nelson Ireson, Author, March 11th, 2009
2 Comments
The weak economy knows no borders, rampaging across the globe taking its toll in lost jobs and bankruptcies. The car industry in particular is no stranger to this strife, and some might say Great Britain's carmakers most of all, considering their rocky history. In late January UK Business Secretary Lord Mandelson announced the government would offer loans totaling up to £1.3 billion with another £1 billion in guarantees to the struggling industry (£2.3 billion, or $3.25 billion in total), but it had to clear approval with the European Commission's trade practices authorities. Today that approval has come through, and the government is now... The weak economy knows no borders, rampaging across the globe taking its toll in lost jobs and bankruptcies. The car industry in particular is no stranger to this strife, and some might say Great Britain's carmakers most of all, considering their rocky history. In late January UK Business Secretary Lord Mandelson announced the government would offer loans totaling up to £1.3 billion with another £1 billion in guarantees to the struggling industry (£2.3 billion, or $3.25 billion in total), but it had to clear approval with the European Commission's trade practices authorities. Today that approval has come through, and the government is now accepting bids for shares of the funding.
Far from a bailout, and coming up well short of the $17.4 billion already promised to U.S. carmakers, the UK loans package will be directed at helping UK car manufacturing facilities stay afloat, preserving jobs for Britain's industrial sector. A separate grant of $27 million was made to Land Rover for the production of the LRX.
"There is a certain amount of cynicism by some suppliers who want to know exactly how the money will be distributed. In order to be eligible, you have to be a reasonably solid company with a specific project," a source inside the UK's Business, Enterprise and Regulatory Reform (BERR) department told Reuters on condition of anonymity.
Union officials think the UK loan funds are inadequate to stanch the flood of lost jobs, however, reports The Telegraph. "Two billion pounds sounds like a lot of money but at least half of this will be taken up by Vauxhall and Jaguar Land Rover alone, leaving little or nothing for the hundreds of component companies. This is a fraction of the support being given by almost every other government in Europe," said Tony Woodley, joint leader of Unite, the union that represents the UK's autoworkers, among others.
Lord Mandelson agrees that more must be done to preserve the ailing car industry, but sees it as part of an overarching scheme to help the British economy weather the global recession.
Preserving automotive jobs in the near term will be a key element in keeping Britain's economy afloat, however, as the car industry employs about 1 million people in the UK by Lord Mandelson's count.
"We need to counter this to prevent an irreversible loss of capacity, skills and technology," he said. "The health of the automotive industry is vital to the strength of manufacturing in Britain and is at the heart of many of our regional economies."
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Germany's interior minister suggests insolvency may be best bet for Opel
Germany's interior minister suggests insolvency may be best bet for Opel March 6th, 2009 By
Ralph Hanson, Author, March 6th, 2009
4 Comments
Saturn is expected to go its own way, Pontiac is being pared down, Hummer is up for sale and Saab has already announced it will be seeking independence. General Motors' brand hemorrhage continued last week with the announcement that Opel will be spun off from the brand as well, with a potential cost of thousands of jobs and billions of dollars. The carmaker's European branch says it will run out of money within three months without government support.
Now Germany has expressed frustration with Opel thanks to a 217-page glossy brochure offered to the government in place of a viable business plan. The document was more advertisement than... Saturn is expected to go its own way, Pontiac is being pared down, Hummer is up for sale and Saab has already announced it will be seeking independence. General Motors' brand hemorrhage continued last week with the announcement that Opel will be spun off from the brand as well, with a potential cost of thousands of jobs and billions of dollars. The carmaker's European branch says it will run out of money within three months without government support. Now Germany has expressed frustration with Opel thanks to a 217-page glossy brochure offered to the government in place of a viable business plan. The document was more advertisement than anything, reports the BBC, and the already balky German government is now even less enthusiastic about handing over billions of dollars. In fact, German interior minister Wolfgang Schaeuble is saying insolvency is a better solution for Opel. "The public perception is that insolvency is associated with going bust or bankruptcy," said the minister. "But that is wrong. We must grasp that to survive such a crisis, modern insolvency rules are a better solution than the state taking a stake." To help generate funds and cut losses, GM Europe is looking to offload its interest in Opel to private buyers as well. The decision to open up Opel was made to allow outside investment in the company while still allowing it to get the materials it needs from GM to function properly. The outside investors would take more than 25% stake in the company, according to last week's announcement, and the news today reveals that they are even considering a larger sell-off of GM's interest in Opel. GM-Europe President Carl-Peter Forster told Reuters, "There are still no decisions about plant closures or forced layoffs," but speaking at the Geneva Motor Show, Forster said, "Our balance sheet is weak and we have no reserves. This crisis is too deep to weather on our own." The Russelsheim, Germany-based subsidiary of GM employs about 25,000 workers. The German government and Chancellor Angela Merkel are anxious to see those jobs stay in Germany. To keep the company afloat during the restructuring, however, Opel will need a cash injection of up to $3.3 billion. According to COO Fritz Henderson, if GM Europe doesn't get government support, "we will continue to run. We will try to stay alive, but it is not the best of scenarios." The implication is that short of EU funding, the company - not just Opel - may not survive. The German government also wants to know that the money won't go to waste, and that it would directly support German jobs and plants, and not other Opel or GM operations throughout Europe. Expanding the scope of funds beyond Opel and Germany would require broad-based EU support, but that might not be so difficult to manage considering GM Europe's payroll of 300,000.2009 Opel Insignia Sedan2011 Opel Ampera production version preview Read More
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Ferrari confirms 599 hybrid prototype in testing
Ferrari confirms 599 hybrid prototype in testing March 4th, 2009 By
James Martinez, Author, March 4th, 2009
10 Comments
Governments around the world are bowing to public pressure to reduce greenhouse gases, and more often than not the first sector they look at is the auto industry. The European Council has proposed a ruling that could see carmaker’s forced to limit their fleet average CO2 levels to 130g/km by as early as 2012, something that could have disastrous effects for niche players like Ferrari, though the cars shown at this week's Geneva Motor Show may reveal how the Prancing Horse will tackle the problem.
The supercar company is working on cutting its vehicles' greenhouse gas emissions by nearly half and has several different strategies... Governments around the world are bowing to public pressure to reduce greenhouse gases, and more often than not the first sector they look at is the auto industry. The European Council has proposed a ruling that could see carmaker’s forced to limit their fleet average CO2 levels to 130g/km by as early as 2012, something that could have disastrous effects for niche players like Ferrari, though the cars shown at this week's Geneva Motor Show may reveal how the Prancing Horse will tackle the problem. The supercar company is working on cutting its vehicles' greenhouse gas emissions by nearly half and has several different strategies including building lighter cars and implementing new hybrid technology. Ferrari president Luca Cordero di Montezemolo has previously told reporters the carmaker is aiming to reduce CO2 emissions by 40% between now and 2012. "We are currently working on the development of a Ferrari that will use alternative energy sources and which will be based on what we are doing at the moment in Formula 1," he revealed, referring to the new Kinetic Energy Recycling System (KERS) that works on the principle of brake-energy-regeneration. The KERS is basically an efficient CVT gearbox joined to a flywheel that rotates when the cars undergo braking. The stored energy can then be used to boost acceleration for overtaking and cornering. The 599XX experimental car on display in Geneva houses the company's "most advanced" technology from Formula 1, and it is purpose-built as a technology showcase and testbed. The latest word from Ferrari CEO Amedeo Felisa indicates that this could be the car used to test production-car applications of the F1 KERS hybrid technology. “We are running a 599 prototype,” said Felisa. “We have to understand how you can benefit from hybrid technology.” The hybrid 599 prototype could by an altogether different car, however. The benefits of a hybrid system, says Felisa, can be in the form of efficiency, performance or both. An all-electric system is out of the question for Ferrari, however, just as diesel won't be making its way among the folks at Maranello either. Montezemolo has said that any future hybrid Ferrari would still be "fundamentally a Ferrari". However, the first models aren't expected to be available for sale until around 2015. In a further effort to reduce emissions, future Ferraris could also come powered by smaller and more fuel-efficient turbocharged V6 engines. A company spokesman revealed last week that Ferrari has ruled out nothing in terms of technology as it works to keep high-performance a priority while accommodating strict emissions rules. For more on the 599XX at the Geneva Motor Show, check out our original coverage here.2009 Ferrari 599XX concept Read More
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Toyota renting ships to store unsold cars
Toyota renting ships to store unsold cars February 27th, 2009 By
Alex Kaufmann, Author, February 27th, 2009
2 Comments
Strange times are on the car industry, perhaps none stranger than what's facing Toyota right now with its European inventory backlog. Short of storage space for cars that are unsold in the EU, Toyota has taken to floating the cars just off the shore of Sweden in a rented container ship.
The seriousness of the situation is outweighed only by its absurdity. Over 12,000 cars are already stored in the port at Malmo. With unsold capacity at least 2,500 cars above that mark, Toyota had to do something, says BusinessWeek.
"It's an emergency measure that we had to take due to storage space issues," said Toyota spokesperson Anne Gaublomme."We hope... Strange times are on the car industry, perhaps none stranger than what's facing Toyota right now with its European inventory backlog. Short of storage space for cars that are unsold in the EU, Toyota has taken to floating the cars just off the shore of Sweden in a rented container ship. The seriousness of the situation is outweighed only by its absurdity. Over 12,000 cars are already stored in the port at Malmo. With unsold capacity at least 2,500 cars above that mark, Toyota had to do something, says BusinessWeek. "It's an emergency measure that we had to take due to storage space issues," said Toyota spokesperson Anne Gaublomme."We hope to keep the time of this measure as short as possible, as we are continuously adapting our production level." How long it might take to even out the nearly 15,000-car oversupply wasn't revealed, however. In the mean time, the cars will continue to float around the harbor. Now that the overflow is so great that ship rental has become necessary, Toyota can be expected to refrain from sending even more vehicles to the area. The backlog is the result of a drop in exports of 60% in January, and the previously strong yen's effect on prices hasn't helped. Read More
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European trademark filing reveals Nissan 370Z Roadster sketches
European trademark filing reveals Nissan 370Z Roadster sketches January 16th, 2009 By
Nelson Ireson, Author, January 16th, 2009
0 Comments
Europe's Office for Harmonization of the Internal Market (OHIM) maintains a trademark database that helps to ensure a minimum of conflict and easy filing for claims. That same database also lets slip basic sketches of car designs before their official unveiling on a regular basis, and this time the Nissan 370Z Roadster gets its unofficial debut.
Though the simple line drawings reveal nothing in terms of materials, the key details of profile, function and outline are all present. The last-generation 350Z Roadster was often criticized for its top-up looks, with a soft top that looked like a complete after-thought, ruining the good lines and... Europe's Office for Harmonization of the Internal Market (OHIM) maintains a trademark database that helps to ensure a minimum of conflict and easy filing for claims. That same database also lets slip basic sketches of car designs before their official unveiling on a regular basis, and this time the Nissan 370Z Roadster gets its unofficial debut. Though the simple line drawings reveal nothing in terms of materials, the key details of profile, function and outline are all present. The last-generation 350Z Roadster was often criticized for its top-up looks, with a soft top that looked like a complete after-thought, ruining the good lines and meaty proportions of the car. This time around, the Roadster appears to have been designed as such, and though none of the examples give the car's profile in top-down mode, it looks remarkably more svelte and thought out than its predecessor. The odd rear decklid proportions appear to be gone, replaced instead by a much curvier, more coupe-like roof line with the top up. The illustrations also seem to indicate the car will have ground clearance in the neighborhood of 8in, however, so take the illustrations with a grain of salt. Nevertheless, they are officially sourced images and can be expected to at least foreshadow what will come when the Roadster is officially unveiled. For details on the expected performance and pricing of the new Z Roadster, check out our own preview story and image here.2009 Nissan 370Z Coupe2010 Nissan 370Z Roadster previewNissan 370Z Roadster OHMI Sketches Read More
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Volvo launches research project to map driver behavior
Volvo launches research project to map driver behavior December 19th, 2008 By
Alex Kaufmann, Author, December 19th, 2008
0 Comments
As advanced as cars are becoming in terms of safety aids, nothing can make up for a skillful, attentive driver behind the wheel - yet, at least. Volvo has launched a research program to study how normal drivers react to tough traffic situations in the hopes of improving their cars' safety.
The data Volvo is mapping records the driver's view of the road, a view looking out the back of the car and the driver's head and eye movements. A data logger details the car's status and movement. Once all of this data is gathered over the course of a three-year, 1.8 million mile (3 million kilometer) field test, Volvo will have a model of human behavior... As advanced as cars are becoming in terms of safety aids, nothing can make up for a skillful, attentive driver behind the wheel - yet, at least. Volvo has launched a research program to study how normal drivers react to tough traffic situations in the hopes of improving their cars' safety. The data Volvo is mapping records the driver's view of the road, a view looking out the back of the car and the driver's head and eye movements. A data logger details the car's status and movement. Once all of this data is gathered over the course of a three-year, 1.8 million mile (3 million kilometer) field test, Volvo will have a model of human behavior in a wide variety of on-road conditions and situations. "In order to move towards a crash-free future, we need to learn more about what kind of mistakes and situations that might lead to accidents," says John-Fredrik Grönvall, senior Research engineer and leader of the Field Operational Tests (FOT) at Volvo Cars. The project is being conducted in concert with the Chalmers University of Technology, industry group SAFER and several other companies as part of an EU-sponsored project called EuroFOT. A fleet of 100 Volvo cars will be outfitted with the data-collection equipment, with field-testing already underway.Volvo driver behavior research projectVolvo's driver behavior advanced research project Read More
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