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US built Toyota goes to Japan
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European n e w car sales hit by G e r m a n slump NEW c a r s a l e s in W e s t e r n E u r o p e d r o p p e d by a n estim a t e d 15.3% in July c o m p a r e d to t h e figures for a year earlier. A m a j o r factor in t h e s l u m p was t h e d r a m a t i c fall in sales in Germany, E u r o p e ' s biggest single market. The a u t o m o t i v e i n d u s t r y estimates that German new c a r sales p l u m m e t e d by 37% in July to 349 000, c o m p a r e d to 553 000 in July 1991. It is e x p e c t e d t h a t car m a k e r s will n o w be forced to revise downw a r d s t h e earlier forecasts of a d e c l i n e of j u s t 1% in West
E u r o p e a n new car sales for t h e whole of 1992. Sales in o t h e r big v o l u m e m a r k e t s are unlikely to b e able to c o m p e n s a t e for t h e fall in G e r m a n sales. In t h e UK sales in July were 8.5% lower t h a n a year ago. D e m a n d in August, w h i c h is t h e n e w registration m o n t h a n d a c c o u n t s for o n e f i f t h of all s a l e s , is l i t t l e c h a n g e d from last year, according to early reports. S p a n i s h new c a r sales in t h e first seven m o n t h s of 1992 were 16.9% h i g h e r t h a n a year ago. B u t t h e r a t e of increase
fell to 8.9% in July a n d car m a k e r s fear t i g h t e n i n g econ o m i c m e a s u r e s will slow recovery further. Overall, Western E u r o p e a n new car sales fell to a r o u n d 1.13 million in July from 1.33 million in 1991. D e m a n d was lower t h a n a y e a r ago in 10 of t h e 17 m a r k e t s in t h e region. In t h e first seven m o n t h s of t h e year West E u r o p e a n new car sales were 3.3% lower t h a n a year ago a t 8.5 million. This was led by a n e s t i m a t e d fall of 14.4% in G e r m a n y to 2.54 million.
GM considers future of parts divisions
US recovery falters
B M W and Meroedes set to collaborate
T H E F U T U R E of two of General Motors' parts divisions are said to be on the line.The firm has called in the consultants which helped streamline its European operations to look into the Delco R e m y and Inland Fisher Guide divisions. The result could be cutbacks and plant shutdowns at both divisions,which employ a total of 48 800 people, admits GM. The study has already begun and will be concluded in early 1993.
New B M W for US plant THE BMW m o d e l t o b e b u i l t in t h e G e r m a n firm's t r a n s p l a n t p l a n t in S o u t h C a r o l i n a will b e a model n o t c u r r e n t l y m a d e anywhere else. It will b e exp o r t e d to E u r o p e a n d Asia as well as sold in t h e USA. The model h a s t h e working n a m e E36 b u t t h e car b u i l d e r declines t o say w h e r e it will fit into t h e p r o d u c t line. BMW will invest a n initial $400 million over t h r e e years in t h e S p a r t a n b u r g plant. By t h e e n d of t h e d e c a d e more t h a n 2 0 0 0 w o r k e r s will b e employed there. Initial production o f 300 car a day will s t a r t in 1995. Sources: Wall Street Journal Europe and Financial Times.
12 MPR September 1992
ALTHOUGH t h e r e s u l t s from Ford a n d Chrysler s h o w some signs of recovery for t h e US car market, sales in July e n d e d t h e m o n t h level w i t h t h o s e in J u n e a n d also in July 1991. New N o r t h A m e r i c a n m a d e cars sold at a seasonally a d j u s t e d a n n u a l sales pace in July of 6.7 million. This is level with June but higher than the 6.3 million pace in May. Analysts say t h a t t h e l a t e s t results are n o t e n c o u r a g i n g for an industry that needs a r o b u s t recovery in d e m a n d to repair weakened balance sheets.
O M 176 goes in production in November PRODUCTION at General Motors ~f190 million engine plant in Ellesmere Port, UK, will begin in November, sa~ the firm. The V6 engines to b e p r o d u c e d a t t h e p l a n t will b e used in GM's E u r o p e a n Opel/Vauxhall executive cars a n d will also be supplied to S a a b Automobile, t h e Swedish car m a k e r in w h i c h GM h o l d s a 50% stake. Work o n t h e plant, w h i c h will be GM's sole E u r o p e a n source for t h e V6 engines, s t a r t e d last year. The facility
GERMAN c a r b u i l d e r BMW h a s confirmed r e p o r t s t h a t it is i n v o l v e d in t a l k s MercedesBenz, a b o u t s h a r e d developm e n t of a u t o m o t i v e components, b u t said t h a t n o t h i n g firm h a d b e e n w o r k e d out. BMW s a y s t h a t i t is a l s o conducting such talks with o t h e r m a j o r a u t o m o b i l e producers. J o i n t d e v e l o p m e n t of car engines h a s been ruled o u t by BMW, as h a v e a n y developments which touch on the individuality of its brand.
will h a v e a w o r k f o r c e of a b o u t 300 initially. This will rise t o 450 a t full production. Initial output will be 85 000 engines a y e a r on three-shift, 24 h o u r s - a - d a y w o r k i n g . T h i s c a p a c i t y is e x p e c t e d t o rise s u b s t a n tially a s d e m a n d grows. The factory will include extensive m a c h i n i n g o p e r a t i o n s fo r blocks, cylinder heads, crankshaRs, camshafts and con-rods. GM claims t h a t it h a s achieved a lighter, more c o m p a c t V6 t h a n m a n y of its rivals w i t h a n a r r o w angle in t h e V.
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Ford and Chrysler return to profit SIGNS t h a t t h e US c a r m a r k e t is recovering were given in t h e r e t u r n to profit by Ford Motor Co a n d Chrysler Corp. Ford reported second q u a r t e r e a r n i n g s of $502 million c o m p a r e d with a loss o f $324 million a year ago. This is in t h e middle of t h e r a n g e of p r e d i c t i o n s m a d e by investm e n t analysts. Chrysler provided a bigger surprise when it announced a second quarter net income of $178 million.The firm's earnings represent a dramatic rebound from the second quarter of 1991, for which the car maker reported a loss of $212 million. Ford of E u r o p e achieved a n e t profit of $24 million in t h e second quarter, c o m p a r e d w i t h a loss of [ 7 5 million in t h e c o r r e s p o n d i n g period last year. The p a c e of t h e c o m p a n y ' s recovery, h o w e v e r , r e m a i n s slow. In t h e first q u a r t e r it m a d e a n e t p r o f i t o f $84 million c o m p a r e d w i t h a loss of $129 million in t h e s a m e period in 1991.
US built Toyota goes to Japan TOYOTA M o t o r C o r p is t o i m p o r t a US built vehicle into J a p a n for t h e first time. Beginning in late A u g u s t t h e firm will i m p o r t a n d sell t h e Scepter, a new e s t a t e car m a d e by Toyota Motor Manufacturing, USA, Inc. The Scepter is a r i g h t h a n d drive v e r s i o n of t h e C a m r y Wagon w h i c h was l a u n c h e d in t h e USA in April. As p a r t of its efforts to sell foreign-made vehicles in Japan, Toyota h a s m a r k e t e d VW and Audi care since April t h r o u g h its DUO outlets. The S c e p t e r follows as t h e first American made car to be m a r k e t e d along w i t h domestic Toyota vehicles a dealers across J a p a n . The m o n t h l y sales t a r g e t for t h e Scepter is 700 units.
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European n e w car sales hit by G e r m a n slump NEW c a r s a l e s in W e s t e r n E u r o p e d r o p p e d by a n estim a t e d 15.3% in July c o m p a r e d to t h e figures for a year earlier. A m a j o r factor in t h e s l u m p was t h e d r a m a t i c fall in sales in Germany, E u r o p e ' s biggest single market. The a u t o m o t i v e i n d u s t r y estimates that German new c a r sales p l u m m e t e d by 37% in July to 349 000, c o m p a r e d to 553 000 in July 1991. It is e x p e c t e d t h a t car m a k e r s will n o w be forced to revise downw a r d s t h e earlier forecasts of a d e c l i n e of j u s t 1% in West
E u r o p e a n new car sales for t h e whole of 1992. Sales in o t h e r big v o l u m e m a r k e t s are unlikely to b e able to c o m p e n s a t e for t h e fall in G e r m a n sales. In t h e UK sales in July were 8.5% lower t h a n a year ago. D e m a n d in August, w h i c h is t h e n e w registration m o n t h a n d a c c o u n t s for o n e f i f t h of all s a l e s , is l i t t l e c h a n g e d from last year, according to early reports. S p a n i s h new c a r sales in t h e first seven m o n t h s of 1992 were 16.9% h i g h e r t h a n a year ago. B u t t h e r a t e of increase
fell to 8.9% in July a n d car m a k e r s fear t i g h t e n i n g econ o m i c m e a s u r e s will slow recovery further. Overall, Western E u r o p e a n new car sales fell to a r o u n d 1.13 million in July from 1.33 million in 1991. D e m a n d was lower t h a n a y e a r ago in 10 of t h e 17 m a r k e t s in t h e region. In t h e first seven m o n t h s of t h e year West E u r o p e a n new car sales were 3.3% lower t h a n a year ago a t 8.5 million. This was led by a n e s t i m a t e d fall of 14.4% in G e r m a n y to 2.54 million.
GM considers future of parts divisions
US recovery falters
B M W and Meroedes set to collaborate
T H E F U T U R E of two of General Motors' parts divisions are said to be on the line.The firm has called in the consultants which helped streamline its European operations to look into the Delco R e m y and Inland Fisher Guide divisions. The result could be cutbacks and plant shutdowns at both divisions,which employ a total of 48 800 people, admits GM. The study has already begun and will be concluded in early 1993.
New B M W for US plant THE BMW m o d e l t o b e b u i l t in t h e G e r m a n firm's t r a n s p l a n t p l a n t in S o u t h C a r o l i n a will b e a model n o t c u r r e n t l y m a d e anywhere else. It will b e exp o r t e d to E u r o p e a n d Asia as well as sold in t h e USA. The model h a s t h e working n a m e E36 b u t t h e car b u i l d e r declines t o say w h e r e it will fit into t h e p r o d u c t line. BMW will invest a n initial $400 million over t h r e e years in t h e S p a r t a n b u r g plant. By t h e e n d of t h e d e c a d e more t h a n 2 0 0 0 w o r k e r s will b e employed there. Initial production o f 300 car a day will s t a r t in 1995. Sources: Wall Street Journal Europe and Financial Times.
12 MPR September 1992
ALTHOUGH t h e r e s u l t s from Ford a n d Chrysler s h o w some signs of recovery for t h e US car market, sales in July e n d e d t h e m o n t h level w i t h t h o s e in J u n e a n d also in July 1991. New N o r t h A m e r i c a n m a d e cars sold at a seasonally a d j u s t e d a n n u a l sales pace in July of 6.7 million. This is level with June but higher than the 6.3 million pace in May. Analysts say t h a t t h e l a t e s t results are n o t e n c o u r a g i n g for an industry that needs a r o b u s t recovery in d e m a n d to repair weakened balance sheets.
O M 176 goes in production in November PRODUCTION at General Motors ~f190 million engine plant in Ellesmere Port, UK, will begin in November, sa~ the firm. The V6 engines to b e p r o d u c e d a t t h e p l a n t will b e used in GM's E u r o p e a n Opel/Vauxhall executive cars a n d will also be supplied to S a a b Automobile, t h e Swedish car m a k e r in w h i c h GM h o l d s a 50% stake. Work o n t h e plant, w h i c h will be GM's sole E u r o p e a n source for t h e V6 engines, s t a r t e d last year. The facility
GERMAN c a r b u i l d e r BMW h a s confirmed r e p o r t s t h a t it is i n v o l v e d in t a l k s MercedesBenz, a b o u t s h a r e d developm e n t of a u t o m o t i v e components, b u t said t h a t n o t h i n g firm h a d b e e n w o r k e d out. BMW s a y s t h a t i t is a l s o conducting such talks with o t h e r m a j o r a u t o m o b i l e producers. J o i n t d e v e l o p m e n t of car engines h a s been ruled o u t by BMW, as h a v e a n y developments which touch on the individuality of its brand.
will h a v e a w o r k f o r c e of a b o u t 300 initially. This will rise t o 450 a t full production. Initial output will be 85 000 engines a y e a r on three-shift, 24 h o u r s - a - d a y w o r k i n g . T h i s c a p a c i t y is e x p e c t e d t o rise s u b s t a n tially a s d e m a n d grows. The factory will include extensive m a c h i n i n g o p e r a t i o n s fo r blocks, cylinder heads, crankshaRs, camshafts and con-rods. GM claims t h a t it h a s achieved a lighter, more c o m p a c t V6 t h a n m a n y of its rivals w i t h a n a r r o w angle in t h e V.
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Ford and Chrysler return to profit SIGNS t h a t t h e US c a r m a r k e t is recovering were given in t h e r e t u r n to profit by Ford Motor Co a n d Chrysler Corp. Ford reported second q u a r t e r e a r n i n g s of $502 million c o m p a r e d with a loss o f $324 million a year ago. This is in t h e middle of t h e r a n g e of p r e d i c t i o n s m a d e by investm e n t analysts. Chrysler provided a bigger surprise when it announced a second quarter net income of $178 million.The firm's earnings represent a dramatic rebound from the second quarter of 1991, for which the car maker reported a loss of $212 million. Ford of E u r o p e achieved a n e t profit of $24 million in t h e second quarter, c o m p a r e d w i t h a loss of [ 7 5 million in t h e c o r r e s p o n d i n g period last year. The p a c e of t h e c o m p a n y ' s recovery, h o w e v e r , r e m a i n s slow. In t h e first q u a r t e r it m a d e a n e t p r o f i t o f $84 million c o m p a r e d w i t h a loss of $129 million in t h e s a m e period in 1991.
US built Toyota goes to Japan TOYOTA M o t o r C o r p is t o i m p o r t a US built vehicle into J a p a n for t h e first time. Beginning in late A u g u s t t h e firm will i m p o r t a n d sell t h e Scepter, a new e s t a t e car m a d e by Toyota Motor Manufacturing, USA, Inc. The Scepter is a r i g h t h a n d drive v e r s i o n of t h e C a m r y Wagon w h i c h was l a u n c h e d in t h e USA in April. As p a r t of its efforts to sell foreign-made vehicles in Japan, Toyota h a s m a r k e t e d VW and Audi care since April t h r o u g h its DUO outlets. The S c e p t e r follows as t h e first American made car to be m a r k e t e d along w i t h domestic Toyota vehicles a dealers across J a p a n . The m o n t h l y sales t a r g e t for t h e Scepter is 700 units.