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Last week we reported that Toyota and Suzuki are forming an alliance to share technology and small-car platforms between the two companies. The deal, however, looked great for Suzuki but with not much in it for Toyota. Today brings some clarity to the arrangement. India is currently the 4th largest new car market and is expected to leapfrog Japan to number 3 in the near future. Being such a large and growing market has outsiders clamoring to get in, but one company is already there in a big way. Suzuki's local subsidiary Maruti accounts for 46 percent of the sub-contienent's new-vehicle sales. We reported earlier that Suzuki agreed to provide Toyota with two compact vehicles to sell in India and will produce one of its SUVs in a Toyota factory in India. Toyota has taken a rather hands-off approach to the companies it buys a stake in. Subaru, Mazda, Daihatsu all enjoy relative autonomy from the Toyota juggernaut. The same remains to be seen with this tie up with Suzuki. View full article -
Last week we reported that Toyota and Suzuki are forming an alliance to share technology and small-car platforms between the two companies. The deal, however, looked great for Suzuki but with not much in it for Toyota. Today brings some clarity to the arrangement. India is currently the 4th largest new car market and is expected to leapfrog Japan to number 3 in the near future. Being such a large and growing market has outsiders clamoring to get in, but one company is already there in a big way. Suzuki's local subsidiary Maruti accounts for 46 percent of the sub-contienent's new-vehicle sales. We reported earlier that Suzuki agreed to provide Toyota with two compact vehicles to sell in India and will produce one of its SUVs in a Toyota factory in India. Toyota has taken a rather hands-off approach to the companies it buys a stake in. Subaru, Mazda, Daihatsu all enjoy relative autonomy from the Toyota juggernaut. The same remains to be seen with this tie up with Suzuki. -
The recently announced alliance between Ford and Volkswagen will not bring any benefits to North America at the beginning. Both companies said that the partnership will focus on Africa, Europe, and South America beginning with commercial vans and the next-generation Ranger/Amarok pickup. Down the road, both Ford and Volkswagen said there could be a potential product for the U.S. While Ford is keeping quiet on what that product could be, Volkswagen CEO Herbert Diess said that a commercial vehicle being jointly developed by the two could come over. "Some of those, yes, but it's not yet decided which vehicle comes to America," said Diess. Volkswagen's commercial vehicle lineup is extensive with vans ranging in size from the compact Caddy (Transit Connect-sized) to the large Crafter (about Transit-sized). We would guess something like the Caddy and possibly the Transporter coming to the U.S. in the next few years. Of course, there is talk about a pickup truck - something dealers have been asking for some time. While there is a very slim chance of the Amarok coming, the Atlas Tanoak concept shown at New York last year seems to have a better chance. Source: Automotive News (Subscription Required), 2 -
The recently announced alliance between Ford and Volkswagen will not bring any benefits to North America at the beginning. Both companies said that the partnership will focus on Africa, Europe, and South America beginning with commercial vans and the next-generation Ranger/Amarok pickup. Down the road, both Ford and Volkswagen said there could be a potential product for the U.S. While Ford is keeping quiet on what that product could be, Volkswagen CEO Herbert Diess said that a commercial vehicle being jointly developed by the two could come over. "Some of those, yes, but it's not yet decided which vehicle comes to America," said Diess. Volkswagen's commercial vehicle lineup is extensive with vans ranging in size from the compact Caddy (Transit Connect-sized) to the large Crafter (about Transit-sized). We would guess something like the Caddy and possibly the Transporter coming to the U.S. in the next few years. Of course, there is talk about a pickup truck - something dealers have been asking for some time. While there is a very slim chance of the Amarok coming, the Atlas Tanoak concept shown at New York last year seems to have a better chance. Source: Automotive News (Subscription Required), 2 View full article
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It is official. Ford and Volkswagen announced this morning a new global alliance that will focus on developing "commercial vans and medium-sized pickups." Ford will handle the development of next-generation mid-size pickups (Ranger and Amarok), along with developing and building larger vans for the European market. Volkswagen for its part will work on a small city van. “Volkswagen and Ford will harness our collective resources, innovation capabilities and complementary market positions to even better serve millions of customers around the world. At the same time, the alliance will be a cornerstone for our drive to improve competitiveness,” said Volkswagen CEO Herbert Diess. “Over time, this alliance will help both companies create value and meet the needs of our customers and society. It will not only drive significant efficiencies and help both companies improve their fitness, but also gives us the opportunity to collaborate on shaping the next era of mobility,” added Ford CEO Jim Hackett. The two also announced plans to explore "autonomous vehicles, mobility services and electric vehicles," along with adding new vehicle programs. Source: Ford, Volkswagen Volkswagen AG And Ford Motor Company Launch Global Alliance Alliance leverages the two global automakers’ strengths to better compete, innovate and serve customers Alliance does not involve cross-ownership between the two companies Companies to first deliver medium pickup trucks for global customers, aiming to start in 2022, and intend to follow with commercial vans in Europe Van and pickup agreements are targeted to deliver scale and efficiencies for each company starting in 2023 Volkswagen and Ford also are committed to exploring potential collaboration on EVs, autonomous vehicles and mobility services DETROIT, Jan. 15, 2019 – Volkswagen AG and Ford Motor Company today announced the first formal agreements in a broad alliance that positions the companies to boost competitiveness and better serve customers in an era of rapid change in the industry. Volkswagen CEO Dr. Herbert Diess and Ford CEO Jim Hackett confirmed that the companies intend to develop commercial vans and medium-sized pickups for global markets beginning as early as 2022. The alliance will drive significant scale and efficiencies and enable both companies to share investments in vehicle architectures that deliver distinct capabilities and technologies. The companies estimate the commercial van and pickup cooperation will yield improved annual pre-tax operating results, starting in 2023. In addition, Volkswagen and Ford have signed a memorandum of understanding to investigate collaboration on autonomous vehicles, mobility services and electric vehicles and have started to explore opportunities. Both companies also said they were open to considering additional vehicle programs in the future. The teams will continue working through details in the coming months. “Over time, this alliance will help both companies create value and meet the needs of our customers and society,” Hackett said. “It will not only drive significant efficiencies and help both companies improve their fitness, but also gives us the opportunity to collaborate on shaping the next era of mobility.” Diess added: “Volkswagen and Ford will harness our collective resources, innovation capabilities and complementary market positions to even better serve millions of customers around the world. At the same time, the alliance will be a cornerstone for our drive to improve competitiveness.” The alliance, which does not entail cross-ownership between the two companies, will be governed by a joint committee. This committee will be led by Hackett and Diess and will include senior executives from both companies. Commercial van and pickup collaboration Ford and Volkswagen both have strong commercial van and pickup businesses around the globe, with popular nameplates such as the Ford Transit family and Ranger as well as the Volkswagen Transporter, Caddy and Amarok. The companies’ collective light commercial vehicle volumes from 2018 totaled approximately 1.2 million units globally, which could represent the industry’s highest-volume collaboration as production scales. Demand for both medium pickups and commercial vans is expected to grow globally in the next five years. The alliance will enable the companies to share development costs, leverage their respective manufacturing capacity, boost the capability and competitiveness of their vehicles and deliver cost efficiencies, while maintaining distinct brand characteristics. Through the alliance, Ford will engineer and build medium-sized pickups for both companies which are expected to go to market as early as 2022. For both parties, Ford intends to engineer and build larger commercial vans for European customers, and Volkswagen intends to develop and build a city van.- 4 comments
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It is official. Ford and Volkswagen announced this morning a new global alliance that will focus on developing "commercial vans and medium-sized pickups." Ford will handle the development of next-generation mid-size pickups (Ranger and Amarok), along with developing and building larger vans for the European market. Volkswagen for its part will work on a small city van. “Volkswagen and Ford will harness our collective resources, innovation capabilities and complementary market positions to even better serve millions of customers around the world. At the same time, the alliance will be a cornerstone for our drive to improve competitiveness,” said Volkswagen CEO Herbert Diess. “Over time, this alliance will help both companies create value and meet the needs of our customers and society. It will not only drive significant efficiencies and help both companies improve their fitness, but also gives us the opportunity to collaborate on shaping the next era of mobility,” added Ford CEO Jim Hackett. The two also announced plans to explore "autonomous vehicles, mobility services and electric vehicles," along with adding new vehicle programs. Source: Ford, Volkswagen Volkswagen AG And Ford Motor Company Launch Global Alliance Alliance leverages the two global automakers’ strengths to better compete, innovate and serve customers Alliance does not involve cross-ownership between the two companies Companies to first deliver medium pickup trucks for global customers, aiming to start in 2022, and intend to follow with commercial vans in Europe Van and pickup agreements are targeted to deliver scale and efficiencies for each company starting in 2023 Volkswagen and Ford also are committed to exploring potential collaboration on EVs, autonomous vehicles and mobility services DETROIT, Jan. 15, 2019 – Volkswagen AG and Ford Motor Company today announced the first formal agreements in a broad alliance that positions the companies to boost competitiveness and better serve customers in an era of rapid change in the industry. Volkswagen CEO Dr. Herbert Diess and Ford CEO Jim Hackett confirmed that the companies intend to develop commercial vans and medium-sized pickups for global markets beginning as early as 2022. The alliance will drive significant scale and efficiencies and enable both companies to share investments in vehicle architectures that deliver distinct capabilities and technologies. The companies estimate the commercial van and pickup cooperation will yield improved annual pre-tax operating results, starting in 2023. In addition, Volkswagen and Ford have signed a memorandum of understanding to investigate collaboration on autonomous vehicles, mobility services and electric vehicles and have started to explore opportunities. Both companies also said they were open to considering additional vehicle programs in the future. The teams will continue working through details in the coming months. “Over time, this alliance will help both companies create value and meet the needs of our customers and society,” Hackett said. “It will not only drive significant efficiencies and help both companies improve their fitness, but also gives us the opportunity to collaborate on shaping the next era of mobility.” Diess added: “Volkswagen and Ford will harness our collective resources, innovation capabilities and complementary market positions to even better serve millions of customers around the world. At the same time, the alliance will be a cornerstone for our drive to improve competitiveness.” The alliance, which does not entail cross-ownership between the two companies, will be governed by a joint committee. This committee will be led by Hackett and Diess and will include senior executives from both companies. Commercial van and pickup collaboration Ford and Volkswagen both have strong commercial van and pickup businesses around the globe, with popular nameplates such as the Ford Transit family and Ranger as well as the Volkswagen Transporter, Caddy and Amarok. The companies’ collective light commercial vehicle volumes from 2018 totaled approximately 1.2 million units globally, which could represent the industry’s highest-volume collaboration as production scales. Demand for both medium pickups and commercial vans is expected to grow globally in the next five years. The alliance will enable the companies to share development costs, leverage their respective manufacturing capacity, boost the capability and competitiveness of their vehicles and deliver cost efficiencies, while maintaining distinct brand characteristics. Through the alliance, Ford will engineer and build medium-sized pickups for both companies which are expected to go to market as early as 2022. For both parties, Ford intends to engineer and build larger commercial vans for European customers, and Volkswagen intends to develop and build a city van. View full article
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Ford and Volkswagen have spent a fair amount of 2018 talking about a possible alliance. We know that publically, the two have signed a "Memorandum of Understanding" focusing on commercial vehicles. But numerous rumors have been flying about saying this alliance could go further, such as autonomous technologies and electric vehicles. Nothing has been made official, that could be changing next week. Reuters has learned from two sources that Ford and Volkswagen will be making the alliance official next Tuesday during the Detroit Auto Show. It is unclear what the announcement will entail, possibly talking about commercial vehicles or more. The overall goal of the alliance is to reduce costs and streamline operations. Bloomberg is reporting that Volkswagen is expecting to hold a board meeting tomorrow to possibly green-light the alliance. Their sources say the talks between the automakers are progressing. Automotive News adds more fuel to the fire as they note there is a “pending industry announcement” taking place at the main stage at 8:30 a.m. Organizers of the show declined to comment on what the announcement will be or which company requested it. Both Ford and Volkswagen declined to comment. Source: Automotive News (Subscription Required), Bloomberg , Reuters -
Ford and Volkswagen have spent a fair amount of 2018 talking about a possible alliance. We know that publically, the two have signed a "Memorandum of Understanding" focusing on commercial vehicles. But numerous rumors have been flying about saying this alliance could go further, such as autonomous technologies and electric vehicles. Nothing has been made official, that could be changing next week. Reuters has learned from two sources that Ford and Volkswagen will be making the alliance official next Tuesday during the Detroit Auto Show. It is unclear what the announcement will entail, possibly talking about commercial vehicles or more. The overall goal of the alliance is to reduce costs and streamline operations. Bloomberg is reporting that Volkswagen is expecting to hold a board meeting tomorrow to possibly green-light the alliance. Their sources say the talks between the automakers are progressing. Automotive News adds more fuel to the fire as they note there is a “pending industry announcement” taking place at the main stage at 8:30 a.m. Organizers of the show declined to comment on what the announcement will be or which company requested it. Both Ford and Volkswagen declined to comment. Source: Automotive News (Subscription Required), Bloomberg , Reuters View full article
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Mazda and Toyota announced today a new alliance that will strengthen their current partnership and see the two collaborate on a number of projects. The big news is a new, $1.6 billion joint-venture assembly plant for the U.S. The location hasn't been revealed, but it will produce Corollas and Mazda crossovers. The plant is expected to open in 2021 and produce up to 300,000 vehicles per year. The other big news deals with the two forming a shared capital structure. Toyota will acquire 5.05 percent into Mazda, and Mazda will get 0.25 percent of Toyota. The two will also work together on developing electric vehicles and various safety technologies. Additionally, Mazda and Toyota will “explore the possibilities of other complementary products on a global level.” “The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars. It has also sparked Toyota’s competitive spirit, increasing our sense of not wanting to be bested by Mazda. This is a partnership in which those who are passionate about cars will work together to make ever-better cars. It is also the realization of our desire to never let cars become commodities,” said Toyota President Akio Toyoda in a statement. Source: Mazda, Toyota Press Release is on Page 2 Toyota and Mazda Enter Business and Capital Alliance Signed agreement marks start of concrete collaboration aimed at creating new types of value for future mobility and achieving further sustainable growth TOKYO, August 4, 2017 - Toyota Motor Corporation (Toyota) and Mazda Motor Corporation (Mazda) signed an agreement today to enter a business and capital alliance, with the aim of further strengthening their lasting partnership. Today’s agreement is a testament to the positive result of two years of collaborative and deliberate discussions between the two companies, and it is a milestone in the journey to further strengthen and accelerate the partnership in a sustainable way. Specifically, the companies agreed to: 1) establish a joint venture that produces vehicles in the United States, 2) jointly develop technologies for electric vehicles, 3) jointly develop connected-car technology, 4) collaborate on advanced safety technologies and 5) expand complementary products. In addition, together with the aim of advancing and strengthening their long-term collaboration, Toyota and Mazda agreed to a capital alliance arrangement that preserves independence and equality for both companies. In the capital tie-up, the two companies have agreed that Toyota will subscribe for and acquire shares to be newly issued by Mazda through a third-party allotment, and at the same time Mazda will subscribe for and acquire third-party allocation shares of treasury stock disposed of by Toyota in the equivalent amount in value to the Mazda shares. The value of the shares mutually acquired by both companies will be equivalent. Marking the agreement, Toyota President Akio Toyoda said: “The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars. It has also sparked Toyota’s competitive spirit, increasing our sense of not wanting to be bested by Mazda. This is a partnership in which those who are passionate about cars will work together to make ever-better cars. It is also the realization of our desire to never let cars become commodities.” Representing Mazda, President and CEO Masamichi Kogai said: “Nothing would please me more than if, through this alliance, we can help to energize the auto industry and create more car fans by bringing together two competitive spirits to spur each other on, leading to innovations and fostering talent and leaders.” The auto industry increasingly faces great challenges, including stricter environmental and safety regulations for new vehicles and the entrance of competitors from other industries, as well as the diversification of mobility-related businesses. With the future of the industry in mind, in addition to leveraging their individual strengths to further improve technologies and reinforce their business foundations, Toyota and Mazda aim to deepen collaboration and achieve sustainable growth through their partnership, rising to face and overcome these pressing challenges. On May 13, 2015, Toyota and Mazda entered an agreement to build a continuous partnership that would mutually benefit the companies in such forms as leveraging the resources of both companies and complementing each other’s products and technologies toward the goal of making more-appealing cars. Since then, both companies have discussed various areas to explore, based on the principle of building an equal and favorable relationship in the long term. Over the medium- to long-term, the two companies will build a favorable relationship that respects the autonomy and equality of each party and works toward success with the agreed joint projects. With the aim of creating new types of value for future mobility, they will accelerate and enhance bilateral cooperation as long-term partners and contribute to the development of a sustainable society by exceeding customers’ expectations. Details of the agreement on business alliance 1) Establish a joint venture that produces vehicles in the U.S. As part of the new alliance, Toyota and Mazda have agreed to explore establishing a joint venture plant in the U.S. with equal funding contributions. The plant would have an estimated annual production capacity of approximately 300,000 units. Pending approvals and authorization by relevant government agencies, the companies will begin to examine detailed plans with the goal to starting operations of the new plant in 2021. The plant will require a total investment of approximately 1.6 billion U.S. dollars, and will create up to 4,000 jobs. In addition to the collaboration in product and technology areas that the companies have enjoyed thus far, Toyota and Mazda intend to improve competitiveness in manufacturing through this new production collaboration. At the new plant, Mazda expects to produce cross-over models that Mazda will newly introduce to the North American market, and Toyota plans to produce the Corolla for the North American market. By producing vehicles in the U.S., Mazda aims to build a production structure to further grow in North America. These activities will allow the company to more quickly respond to its customers’ needs depending on the region and model. By further increasing its production capacity in the U.S., Toyota is to further pursue management that is closer to the region, as a measure to improve its response to the growing North American market. At Toyota’s new plant in Guanajuato, Mexico, which is currently under construction, Toyota plans to produce the Tacoma, instead of the Corolla. There will be no substantial impact on Toyota’s investment and employment plan there. 2) Jointly develop technologies for electric vehicles With increasing demand and expectations for electric vehicles worldwide, Toyota and Mazda are to explore joint development of technologies for the basic structure of competitive electric vehicles, mobilizing and exchanging expertise freely and actively. These technologies will allow the companies to respond quickly to regulations and market trends in each country. Specific details of the collaboration will be determined as the companies work together going forward. 3&4) Jointly develop connected technology and collaborate on advanced safety technologies Toyota and Mazda will work together to jointly develop technologies for onboard multimedia infotainment systems in preparation for increased use of in-car information technologies and the increasing demand for connected technologies. In addition, Toyota will cooperate with Mazda in Toyota’s vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) technologies with the ultimate goal of creating a mobile society devoid of accidents. 5) Expand complementary products Currently, Mazda is supplying a compact sedan to Toyota in North America. In addition, Toyota is to supply a compact commercial “two-box” van to Mazda in Japan. Beyond this, the companies will further explore the possibilities of other complementary products on a global level. Details of the capital alliance Based on the agreement, the companies will aim to develop sustainable collaboration, maximizing the synergies of the business and capital alliance by mutually acquiring shares as stated below. Toyota will acquire 31,928,500 shares of common stock newly issued by Mazda through a third-party allotment (shareholding ratio of 5.05% on an issued share basis after the capital increase; total value of 50 billion yen). Mazda will, through a disposition of treasury stock through a third-party allotment to be implemented by Toyota, acquire Toyota shares that are equivalent in value to the Mazda shares (shareholding ratio of 0.25% on an issued share basis). The two companies plan to apply proceeds from the capital increase through the third-party allotment and the disposition of treasury stock through the third-party allotment to fund, in part, capital expenditures relating to the establishment of the joint venture to produce vehicles in the U.S. Both companies are to consider strengthening their capital alliance further, in line with the progress of their business alliance. -
Mazda and Toyota announced today a new alliance that will strengthen their current partnership and see the two collaborate on a number of projects. The big news is a new, $1.6 billion joint-venture assembly plant for the U.S. The location hasn't been revealed, but it will produce Corollas and Mazda crossovers. The plant is expected to open in 2021 and produce up to 300,000 vehicles per year. The other big news deals with the two forming a shared capital structure. Toyota will acquire 5.05 percent into Mazda, and Mazda will get 0.25 percent of Toyota. The two will also work together on developing electric vehicles and various safety technologies. Additionally, Mazda and Toyota will “explore the possibilities of other complementary products on a global level.” “The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars. It has also sparked Toyota’s competitive spirit, increasing our sense of not wanting to be bested by Mazda. This is a partnership in which those who are passionate about cars will work together to make ever-better cars. It is also the realization of our desire to never let cars become commodities,” said Toyota President Akio Toyoda in a statement. Source: Mazda, Toyota Press Release is on Page 2 Toyota and Mazda Enter Business and Capital Alliance Signed agreement marks start of concrete collaboration aimed at creating new types of value for future mobility and achieving further sustainable growth TOKYO, August 4, 2017 - Toyota Motor Corporation (Toyota) and Mazda Motor Corporation (Mazda) signed an agreement today to enter a business and capital alliance, with the aim of further strengthening their lasting partnership. Today’s agreement is a testament to the positive result of two years of collaborative and deliberate discussions between the two companies, and it is a milestone in the journey to further strengthen and accelerate the partnership in a sustainable way. Specifically, the companies agreed to: 1) establish a joint venture that produces vehicles in the United States, 2) jointly develop technologies for electric vehicles, 3) jointly develop connected-car technology, 4) collaborate on advanced safety technologies and 5) expand complementary products. In addition, together with the aim of advancing and strengthening their long-term collaboration, Toyota and Mazda agreed to a capital alliance arrangement that preserves independence and equality for both companies. In the capital tie-up, the two companies have agreed that Toyota will subscribe for and acquire shares to be newly issued by Mazda through a third-party allotment, and at the same time Mazda will subscribe for and acquire third-party allocation shares of treasury stock disposed of by Toyota in the equivalent amount in value to the Mazda shares. The value of the shares mutually acquired by both companies will be equivalent. Marking the agreement, Toyota President Akio Toyoda said: “The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars. It has also sparked Toyota’s competitive spirit, increasing our sense of not wanting to be bested by Mazda. This is a partnership in which those who are passionate about cars will work together to make ever-better cars. It is also the realization of our desire to never let cars become commodities.” Representing Mazda, President and CEO Masamichi Kogai said: “Nothing would please me more than if, through this alliance, we can help to energize the auto industry and create more car fans by bringing together two competitive spirits to spur each other on, leading to innovations and fostering talent and leaders.” The auto industry increasingly faces great challenges, including stricter environmental and safety regulations for new vehicles and the entrance of competitors from other industries, as well as the diversification of mobility-related businesses. With the future of the industry in mind, in addition to leveraging their individual strengths to further improve technologies and reinforce their business foundations, Toyota and Mazda aim to deepen collaboration and achieve sustainable growth through their partnership, rising to face and overcome these pressing challenges. On May 13, 2015, Toyota and Mazda entered an agreement to build a continuous partnership that would mutually benefit the companies in such forms as leveraging the resources of both companies and complementing each other’s products and technologies toward the goal of making more-appealing cars. Since then, both companies have discussed various areas to explore, based on the principle of building an equal and favorable relationship in the long term. Over the medium- to long-term, the two companies will build a favorable relationship that respects the autonomy and equality of each party and works toward success with the agreed joint projects. With the aim of creating new types of value for future mobility, they will accelerate and enhance bilateral cooperation as long-term partners and contribute to the development of a sustainable society by exceeding customers’ expectations. Details of the agreement on business alliance 1) Establish a joint venture that produces vehicles in the U.S. As part of the new alliance, Toyota and Mazda have agreed to explore establishing a joint venture plant in the U.S. with equal funding contributions. The plant would have an estimated annual production capacity of approximately 300,000 units. Pending approvals and authorization by relevant government agencies, the companies will begin to examine detailed plans with the goal to starting operations of the new plant in 2021. The plant will require a total investment of approximately 1.6 billion U.S. dollars, and will create up to 4,000 jobs. In addition to the collaboration in product and technology areas that the companies have enjoyed thus far, Toyota and Mazda intend to improve competitiveness in manufacturing through this new production collaboration. At the new plant, Mazda expects to produce cross-over models that Mazda will newly introduce to the North American market, and Toyota plans to produce the Corolla for the North American market. By producing vehicles in the U.S., Mazda aims to build a production structure to further grow in North America. These activities will allow the company to more quickly respond to its customers’ needs depending on the region and model. By further increasing its production capacity in the U.S., Toyota is to further pursue management that is closer to the region, as a measure to improve its response to the growing North American market. At Toyota’s new plant in Guanajuato, Mexico, which is currently under construction, Toyota plans to produce the Tacoma, instead of the Corolla. There will be no substantial impact on Toyota’s investment and employment plan there. 2) Jointly develop technologies for electric vehicles With increasing demand and expectations for electric vehicles worldwide, Toyota and Mazda are to explore joint development of technologies for the basic structure of competitive electric vehicles, mobilizing and exchanging expertise freely and actively. These technologies will allow the companies to respond quickly to regulations and market trends in each country. Specific details of the collaboration will be determined as the companies work together going forward. 3&4) Jointly develop connected technology and collaborate on advanced safety technologies Toyota and Mazda will work together to jointly develop technologies for onboard multimedia infotainment systems in preparation for increased use of in-car information technologies and the increasing demand for connected technologies. In addition, Toyota will cooperate with Mazda in Toyota’s vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) technologies with the ultimate goal of creating a mobile society devoid of accidents. 5) Expand complementary products Currently, Mazda is supplying a compact sedan to Toyota in North America. In addition, Toyota is to supply a compact commercial “two-box” van to Mazda in Japan. Beyond this, the companies will further explore the possibilities of other complementary products on a global level. Details of the capital alliance Based on the agreement, the companies will aim to develop sustainable collaboration, maximizing the synergies of the business and capital alliance by mutually acquiring shares as stated below. Toyota will acquire 31,928,500 shares of common stock newly issued by Mazda through a third-party allotment (shareholding ratio of 5.05% on an issued share basis after the capital increase; total value of 50 billion yen). Mazda will, through a disposition of treasury stock through a third-party allotment to be implemented by Toyota, acquire Toyota shares that are equivalent in value to the Mazda shares (shareholding ratio of 0.25% on an issued share basis). The two companies plan to apply proceeds from the capital increase through the third-party allotment and the disposition of treasury stock through the third-party allotment to fund, in part, capital expenditures relating to the establishment of the joint venture to produce vehicles in the U.S. Both companies are to consider strengthening their capital alliance further, in line with the progress of their business alliance. View full article
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We have been wondering what kind of impact the Mitsubishi and Nissan alliance would bring to the table. According to a report from Automotive News, it looks like delays for a couple of key products for the diamond star brand. Speaking with supplier sources, Mitsubishi has pushed back the redesigns of the Outlander and Outlander Sport crossovers. Originally, Mitsubishi was planning to launch the next Outlander "in the fiscal year ending March 31, 2019", while the Outlander Sport would follow a year later. Now, the Outlander has been pushed back to late 2019 or 2020 and the Sport to after 2020. The delay is due to a review being undertaken by Mitsubishi and Nissan to search for a way to share architecture and parts with the Rogue and Rogue Sport. According to sources, the goal is to "commonize underpinnings and components" to save money while keeping an outer identity distinct to each brand. Mitsubishi confirmed the review but declined to comment on any delays. This delay could be a big blow for Mitsubishi's dealers in the U.S. who have been clamoring for new products. Joe Bizzarro, chairman of Mitsubishi's national dealer advisory board told Automotive News that no such delay was discussed during a meeting with dealers earlier this year - leading us to suspect this delay has come up recently. Dealers have yet to be notified about this delay. Right now, the only new product destined for Mitsubishi's U.S. dealers is the upcoming Eclipse Sport due in early 2018. Source: Automotive News (Subscription Required) View full article
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We have been wondering what kind of impact the Mitsubishi and Nissan alliance would bring to the table. According to a report from Automotive News, it looks like delays for a couple of key products for the diamond star brand. Speaking with supplier sources, Mitsubishi has pushed back the redesigns of the Outlander and Outlander Sport crossovers. Originally, Mitsubishi was planning to launch the next Outlander "in the fiscal year ending March 31, 2019", while the Outlander Sport would follow a year later. Now, the Outlander has been pushed back to late 2019 or 2020 and the Sport to after 2020. The delay is due to a review being undertaken by Mitsubishi and Nissan to search for a way to share architecture and parts with the Rogue and Rogue Sport. According to sources, the goal is to "commonize underpinnings and components" to save money while keeping an outer identity distinct to each brand. Mitsubishi confirmed the review but declined to comment on any delays. This delay could be a big blow for Mitsubishi's dealers in the U.S. who have been clamoring for new products. Joe Bizzarro, chairman of Mitsubishi's national dealer advisory board told Automotive News that no such delay was discussed during a meeting with dealers earlier this year - leading us to suspect this delay has come up recently. Dealers have yet to be notified about this delay. Right now, the only new product destined for Mitsubishi's U.S. dealers is the upcoming Eclipse Sport due in early 2018. Source: Automotive News (Subscription Required) -
The past month at Mitsubishi Motors has been tumultuous with the announcement that they had manipulated fuel economy numbers on a number of small city cars sold by them and Nissan. It would come to light that this manipulation had been going since 1991 on a number of models sold in Japan. Shares in the company dropped like a rock and there were concerns that Mitsubishi Motors would have to borrow money from other companies in the Mitsubishi conglomerate. But soon a white knight would appear, Nissan. The company that first discovered and reported it to Mitsubishi would buy a 34 percent share into the automaker, making it the largest shareholder. Thus, an alliance between the two was created. The two automakers are currently still in the beginning stages of their alliance, but certain things have been made clear of what the two hope to accomplish. The biggest one is to improve the reputation of Mitsubishi Motors in Japan. There is also talk about two working together on electric vehicles and possibly sharing a platform for their next-generation pickups. One of the questions still up in the air is what will the alliance bring to the U.S.? That’s probably way down on the priority list for both companies. But it is something that will have to be discussed sooner or later. At the moment, there seem to be two camps of thought. The first is that Mitsubishi should make an exit out of the U.S. Sales are on the rise for the Japanese automaker, but they pale in comparison with other competitors. Also, Mitsubishi doesn’t have the presence as other automakers when it comes to getting the message out. The second is that Mitsubishi should stay, which for the most part is followed by ‘bring back the Lancer Evolution!’. I hate to be the evil person here, but it isn’t coming back. Stop asking for it. Recently I was going back through some old Autocar magazines and came across an editorial talking about Nissan’s change in strategy for the U.K. and how they are currently reaping the benefits. “I remember when Nissan said it was giving up the ‘boring’ car market and dealing only in what were, at the time, niches. Quirky tall things. Things that didn’t sell in large volumes. That funny Qashqai thing: not quite a car, not quite a 4x4 either. We weren’t long out of the 1990s, a decade in which the list of the top 10 best-selling cars in the UK went something like this: Ford's Fiesta, Focus, Mondeo, Vauxhall's Vectra, Astra, Corsa, Peugeot 306, Volkswagen Golf, Rovers 200, 400. Family cars all. Straight family cars. Not always a Nissan among them, although the Micra dabbled inside the top 10, because it was, then, a cute supermini. So Nissan got into what were seen as niches. Ballsy move. And it has stayed there.” It was quite the gamble when Nissan made this call in the 2000’s to drop out of some very popular segments at the time to focus on some odd vehicles. But it has paid off as Nissan has become one of the popular brands in the U.K. and two of their vehicles - the Qashqai and Juke - are in the top ten of the best-selling vehicles. This got me thinking, what if Mitsubishi and Nissan were to apply this same strategy for the U.S.? You might think I’m being somewhat crazy with this idea, but what does Mitsubishi have to lose? What could this strategy possibly look like? I think we need to go back to 2015 and look at comments made by Mitsubishi Motors CEO Osamu Masuko for a possible starting point. "We are strong in SUVs and four-wheel drives. And that is what we would like to focus on as core models in the U.S. market. We have changed direction. We are going to allocate more resources to the areas where we are strong in the U.S.” In 2015, more than 58 percent of Mitsubishi’s U.S. sales were crossovers. That trend is continuing in 2016 as 54 percent of sales through April are crossovers. We know that later this year, Mitsubishi will finally launch the long-delayed Outlander PHEV in the U.S. There is also talk of a small crossover and next-generation Montero/Pajero coming in the next few years. I know crossovers and SUVs aren’t really considered a niche anymore as every automaker has one. But this is an area that Mitsubishi that is quite strong. So what could Nissan bring to the table with crossovers/SUVs? A key item would be electrification. Yes, Mitsubishi does have a fair amount of experience here. But as I mentioned, one of the key things the two automakers are planning to work on together on electric vehicles. They could make some big inroads with building an electric crossover with decent range (200 or more miles). Considering the huge craving for crossovers by consumers, the two could strike something big here. The other item Nissan could bring is new a new platform and/or engines for the next-generation Outlander/Outlander Sport. One complaint about both crossovers are the four-cylinder engines as they don’t have enough power to get either model moving at a decent clip. There’s also the issue of Outlander Sport having a very jarring ride due to the suspension tuning. But this is one part of the Mitsubishi conundrum. The other deals with their other best-selling passenger car, the Mirage. Aside from being the current whipping boy of the automotive press, the Mirage makes up about 38.3 percent of Mitsubishi’s 2016 sales through April. A lot this is due to the low price of the model ($12,995). To capitalize on this success, Mitsubishi will be launching a Mirage sedan later this year. To go back to the comments made by Masuko, “We are strong in SUVs and four-wheel drives. And that is what we would like to focus on as core models in the U.S. Market.” But the Mirage is proving to be a strong model and one that should be considered a core model. It would be mad for Mitsubishi to drop it. One thing that the Mirage does need is a new engine. The 1.2L three-cylinder does deliver excellent fuel economy figures (37 City/43 Highway), but it is slow. Snails could outrun this vehicle. This is where Nissan could come in by giving the Mirage an engine transplant. The 1.6L four-cylinder from the Versa/Versa Note with 109 horsepower would provide a needed boost in power and wouldn’t affect fuel economy numbers much. Now that I have outlined some key issues and comments, let’s dive into what a smaller lineup for Mitsubishi could possibly look like with some help from Nissan. Mirage/Mirage G4: New engine from Nissan and possibly an improved interior. Lancer: Rebadged version of Sentra and Pulsar Hatchback, or Nissan helps with speeding up development of the next-gen model. Outlander Sport: Electric model possibly joins range. Outlander: Plug-in hybrid model sticks around. Pajero/Montero: All Mitsubishi here. Gas and plug-in hybrid powertrains on offer. Five and seven-seat configurations on offer. Triton/L200: Next-Generation model using Nissan Navara platform. Mitsubishi works on everything else from engines and four-wheel drive system. This is way out as both companies have introduced their latest trucks. Would Nissan be willing to help Mitsubishi with this? That is tough to say at this time since we’re still in the honeymoon period between the two automakers and there are more pressing things to address. There is also the consideration of why Nissan would help a competitor in the market. But Mitsubishi is a small bit player in the U.S. Last year, Mitsubishi only sold 95,342 vehicles. This pales in comparison with the 1,484,918 vehicles sold by Nissan last year. This could help Mitsubishi out with making a case for this idea. The U.S. is way down on the priority list between Mitsubishi and Nissan. But I’m sure the U.S. offices are thinking about what will happen. There are two real choices that are on the table, either leave the U.S. market or take a gamble and change up your lineup somewhat drastically. If I was Mitsubishi, I would push for the latter option by using the niche plan. -
The past month at Mitsubishi Motors has been tumultuous with the announcement that they had manipulated fuel economy numbers on a number of small city cars sold by them and Nissan. It would come to light that this manipulation had been going since 1991 on a number of models sold in Japan. Shares in the company dropped like a rock and there were concerns that Mitsubishi Motors would have to borrow money from other companies in the Mitsubishi conglomerate. But soon a white knight would appear, Nissan. The company that first discovered and reported it to Mitsubishi would buy a 34 percent share into the automaker, making it the largest shareholder. Thus, an alliance between the two was created. The two automakers are currently still in the beginning stages of their alliance, but certain things have been made clear of what the two hope to accomplish. The biggest one is to improve the reputation of Mitsubishi Motors in Japan. There is also talk about two working together on electric vehicles and possibly sharing a platform for their next-generation pickups. One of the questions still up in the air is what will the alliance bring to the U.S.? That’s probably way down on the priority list for both companies. But it is something that will have to be discussed sooner or later. At the moment, there seem to be two camps of thought. The first is that Mitsubishi should make an exit out of the U.S. Sales are on the rise for the Japanese automaker, but they pale in comparison with other competitors. Also, Mitsubishi doesn’t have the presence as other automakers when it comes to getting the message out. The second is that Mitsubishi should stay, which for the most part is followed by ‘bring back the Lancer Evolution!’. I hate to be the evil person here, but it isn’t coming back. Stop asking for it. Recently I was going back through some old Autocar magazines and came across an editorial talking about Nissan’s change in strategy for the U.K. and how they are currently reaping the benefits. “I remember when Nissan said it was giving up the ‘boring’ car market and dealing only in what were, at the time, niches. Quirky tall things. Things that didn’t sell in large volumes. That funny Qashqai thing: not quite a car, not quite a 4x4 either. We weren’t long out of the 1990s, a decade in which the list of the top 10 best-selling cars in the UK went something like this: Ford's Fiesta, Focus, Mondeo, Vauxhall's Vectra, Astra, Corsa, Peugeot 306, Volkswagen Golf, Rovers 200, 400. Family cars all. Straight family cars. Not always a Nissan among them, although the Micra dabbled inside the top 10, because it was, then, a cute supermini. So Nissan got into what were seen as niches. Ballsy move. And it has stayed there.” It was quite the gamble when Nissan made this call in the 2000’s to drop out of some very popular segments at the time to focus on some odd vehicles. But it has paid off as Nissan has become one of the popular brands in the U.K. and two of their vehicles - the Qashqai and Juke - are in the top ten of the best-selling vehicles. This got me thinking, what if Mitsubishi and Nissan were to apply this same strategy for the U.S.? You might think I’m being somewhat crazy with this idea, but what does Mitsubishi have to lose? What could this strategy possibly look like? I think we need to go back to 2015 and look at comments made by Mitsubishi Motors CEO Osamu Masuko for a possible starting point. "We are strong in SUVs and four-wheel drives. And that is what we would like to focus on as core models in the U.S. market. We have changed direction. We are going to allocate more resources to the areas where we are strong in the U.S.” In 2015, more than 58 percent of Mitsubishi’s U.S. sales were crossovers. That trend is continuing in 2016 as 54 percent of sales through April are crossovers. We know that later this year, Mitsubishi will finally launch the long-delayed Outlander PHEV in the U.S. There is also talk of a small crossover and next-generation Montero/Pajero coming in the next few years. I know crossovers and SUVs aren’t really considered a niche anymore as every automaker has one. But this is an area that Mitsubishi that is quite strong. So what could Nissan bring to the table with crossovers/SUVs? A key item would be electrification. Yes, Mitsubishi does have a fair amount of experience here. But as I mentioned, one of the key things the two automakers are planning to work on together on electric vehicles. They could make some big inroads with building an electric crossover with decent range (200 or more miles). Considering the huge craving for crossovers by consumers, the two could strike something big here. The other item Nissan could bring is new a new platform and/or engines for the next-generation Outlander/Outlander Sport. One complaint about both crossovers are the four-cylinder engines as they don’t have enough power to get either model moving at a decent clip. There’s also the issue of Outlander Sport having a very jarring ride due to the suspension tuning. But this is one part of the Mitsubishi conundrum. The other deals with their other best-selling passenger car, the Mirage. Aside from being the current whipping boy of the automotive press, the Mirage makes up about 38.3 percent of Mitsubishi’s 2016 sales through April. A lot this is due to the low price of the model ($12,995). To capitalize on this success, Mitsubishi will be launching a Mirage sedan later this year. To go back to the comments made by Masuko, “We are strong in SUVs and four-wheel drives. And that is what we would like to focus on as core models in the U.S. Market.” But the Mirage is proving to be a strong model and one that should be considered a core model. It would be mad for Mitsubishi to drop it. One thing that the Mirage does need is a new engine. The 1.2L three-cylinder does deliver excellent fuel economy figures (37 City/43 Highway), but it is slow. Snails could outrun this vehicle. This is where Nissan could come in by giving the Mirage an engine transplant. The 1.6L four-cylinder from the Versa/Versa Note with 109 horsepower would provide a needed boost in power and wouldn’t affect fuel economy numbers much. Now that I have outlined some key issues and comments, let’s dive into what a smaller lineup for Mitsubishi could possibly look like with some help from Nissan. Mirage/Mirage G4: New engine from Nissan and possibly an improved interior. Lancer: Rebadged version of Sentra and Pulsar Hatchback, or Nissan helps with speeding up development of the next-gen model. Outlander Sport: Electric model possibly joins range. Outlander: Plug-in hybrid model sticks around. Pajero/Montero: All Mitsubishi here. Gas and plug-in hybrid powertrains on offer. Five and seven-seat configurations on offer. Triton/L200: Next-Generation model using Nissan Navara platform. Mitsubishi works on everything else from engines and four-wheel drive system. This is way out as both companies have introduced their latest trucks. Would Nissan be willing to help Mitsubishi with this? That is tough to say at this time since we’re still in the honeymoon period between the two automakers and there are more pressing things to address. There is also the consideration of why Nissan would help a competitor in the market. But Mitsubishi is a small bit player in the U.S. Last year, Mitsubishi only sold 95,342 vehicles. This pales in comparison with the 1,484,918 vehicles sold by Nissan last year. This could help Mitsubishi out with making a case for this idea. The U.S. is way down on the priority list between Mitsubishi and Nissan. But I’m sure the U.S. offices are thinking about what will happen. There are two real choices that are on the table, either leave the U.S. market or take a gamble and change up your lineup somewhat drastically. If I was Mitsubishi, I would push for the latter option by using the niche plan. View full article
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William Maley Staff Writer - CheersandGears.com October 23, 2013 The alliance between General Motors and PSA Peugeot Citroen was supposed to help out the two companies with number of new vehicles and powertrains, and lower costs. But since the alliance was announced last year, it has been fraught with disappointment. Now it appears the alliance is scaling back a bit. According to Automotive News, the two companies are slimming down the alliance as the two companies pursue other ways to reverse losses. Part of this slim down is due to the planned joint platform for subcompact cars was nixed. This platform was the heart of the alliance. "Further analysis showed that the business model just wasn't there," said a PSA spokesperson. But there a couple other items at play. For one, sources say PSA Peugeot Citroen is in talks with Chinese automaker Dongfeng about a new partnership. The automaker plans to increase capital by about 3 billion euros, with Dongfeng and the French state possibly each taking stakes of about 20 percent. Now GM could pull out of the alliance since Dongfeng is a competitor to SAIC, GM's partner in China. The other item is that GM has been taking its own path for recovery in Europe. GM's new Europe chief, Karl-Thomas Neumann has been making a number of changes. He has moved some of the production of the Opel Mokka from Korea to Spain and recently got GM's Russian operations under his control. GM is also stepping up their efforts of using their platforms globally. "It certainly seems GM has no focus on the alliance with Peugeot any more. They don't want to be partnered with a struggling company, and they have alternative methods to turn things around," said Kristina Church, analyst with Barclays. But the alliance isn't coming to a close. The two still have two vehicle projects which happen to be compact minivans and crossovers and a joint purchasing program. "We are moving forward with the implementation" of the projects which have already been agreed upon, said GM spokesman Ulrich Weber. Source: Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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General Motors and PSA Peugeot Citroen Slim Down Their Alliance
William Maley posted an article in General Motors
William Maley Staff Writer - CheersandGears.com October 23, 2013 The alliance between General Motors and PSA Peugeot Citroen was supposed to help out the two companies with number of new vehicles and powertrains, and lower costs. But since the alliance was announced last year, it has been fraught with disappointment. Now it appears the alliance is scaling back a bit. According to Automotive News, the two companies are slimming down the alliance as the two companies pursue other ways to reverse losses. Part of this slim down is due to the planned joint platform for subcompact cars was nixed. This platform was the heart of the alliance. "Further analysis showed that the business model just wasn't there," said a PSA spokesperson. But there a couple other items at play. For one, sources say PSA Peugeot Citroen is in talks with Chinese automaker Dongfeng about a new partnership. The automaker plans to increase capital by about 3 billion euros, with Dongfeng and the French state possibly each taking stakes of about 20 percent. Now GM could pull out of the alliance since Dongfeng is a competitor to SAIC, GM's partner in China. The other item is that GM has been taking its own path for recovery in Europe. GM's new Europe chief, Karl-Thomas Neumann has been making a number of changes. He has moved some of the production of the Opel Mokka from Korea to Spain and recently got GM's Russian operations under his control. GM is also stepping up their efforts of using their platforms globally. "It certainly seems GM has no focus on the alliance with Peugeot any more. They don't want to be partnered with a struggling company, and they have alternative methods to turn things around," said Kristina Church, analyst with Barclays. But the alliance isn't coming to a close. The two still have two vehicle projects which happen to be compact minivans and crossovers and a joint purchasing program. "We are moving forward with the implementation" of the projects which have already been agreed upon, said GM spokesman Ulrich Weber. Source: Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.
