Mazda achieves 2008 sales record in Europe

Mazda is “guardedly optimistic” about its prospects in 2009 after achieving record European sales in 2008.The Japanese carmaker increased its 2008 unit sales by 9.8 percent to 342,800 in Europe, including Russia and Turkey.

The company achieved year on year increases in 20 markets, including Russia where sales rose 47 percent to 73,700 units to make the country Mazda’s biggest European market.

Mazda sales dipped in Germany and the UK, the company’s second and third biggest markets. German sales fell 14.3 percent to 56,277 while in the UK they declined by 2 percent to 50,402 units.

Philip Waring, Mazda Europe’s chief operating officer, said he was satisfied with the performance, particularly because 2008 was a difficult trading year.

He said: “These last two months were a challenge, and the current economic downturn makes predictions difficult. But following our success in 2008 we can move into 2009 with a guarded degree of optimism.”

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Turkish car unit sales down 14.4% in 2008

Unit sales of passenger cars in Turkey fell 14.4 percent in 2008, the Turkish Automotive Distributors association (ODD) said on Wednesday.

Waning consumer demand in Turkey due to the global financial crisis has already forced carmakers to suspend production for limited periods.

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Istanbul traffic: Turkey is one of the biggest car producers in Europe with more than 1 million cars and light commercial vehicles built in 2007.

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Ford values Volvo at $6bn

Ford Motor Company is seeking to sell Volvo for as much as $6 billion, and is using JP Morgan Chase & Co as an adviser, according to reports in the United States.

It is believed that Ford is counting on the strength of the brand to draw bidders. A spokesman for Ford could not be reached for an immediate comment.

On Monday (December 1), Ford said it was reviewing options for Volvo and could sell the luxury Swedish car brand as it looked to shore up cash amid a deep industry downturn. Ford said the review of Volvo was part of its efforts to ’strengthen its balance sheet’ at a time when auto sales are plunging worldwide.

Volvo is the last remaining brand from Ford’s former premium auto group that had included the now-divested Aston Martin, Jaguar and Land Rover brands.

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Car parts supplier Bosch will temporarily close down select production areas or shops at its Nashik plant from November 28-29.

The company would also temporarily halt the manufacture of starters and generators at its Bangalore-based Naganathapura plant between November 26-29.

The shutdowns would avoid unnecessary inventory build-up and adjust production to meet demand for products.

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Reducing car use could have unforeseen consequences

Car use reduction polices could have unforeseen economic and social consequences according to Elizabeth Dainton, Research Development Manager for the Royal Automobile Club Foundation, speaking today at the 7th International Mo.Ve Mobility Forum in Venice* (25th November).

In response to the panel debate titled ‘Car Dependency of individuals: lazy and wasteful drivers or lack of viable and acceptable alternatives?’ Ms Dainton will explain that the vast majority of UK car users are not wasteful or lazy drivers, they simply lack viable and acceptable alternatives to the private car. If badly designed policies are implemented to reduce car usage for climate change, carbon emission, congestion, road safety or human health reasons unforeseen economic and social consequences are likely to result. Ms Dainton will argue that the trade-offs required need to be better understood before policy is developed and implemented.

Drawing on the RAC Foundation’s previous** and forthcoming research*** Ms Dainton will explain that the reason people use cars is complex, motivated by individual needs and wider society planning. The term ‘car dependence’ has so far helped and hindered the debate, by confusing the issue, suggesting that all administrations addressing car usage require a fresh way of looking at future challenges.

Ms Dainton will describe car use as an activity that has now spread across the UK population, especially to those groups who have not traditionally had access, such as women, older people and lower income groups. Car ownership continues to be aspirational, particularly for young people.

The growing pressures on car usage are such that non-voluntary car restriction policies are likely to increase. Ms Dainton will argue that these policies should not proceed without full understanding of the social and economic consequences of reducing people’s travel horizons in this way.

Elizabeth Dainton, Research Development Manager at the Royal Automobile Club Foundation says:

‘Car use has become the norm. It is an important feature of modern life, which has provided an unparalleled level of mobility and access to people going about their everyday activities. Car ownership and use has formed the basis of people’s decisions on where to live, work and educate their families. These decisions are hard to reverse’.

‘Nationally and Internationally we face the same significant challenges of climate change, carbon emissions, congestion, road safety and human health problems. Transport generally and car use in particular has an important role to play in addressing these concerns and it is likely that non-voluntary car reduction policies will be increasingly developed. These policies should not be implemented without a full understanding of the social and economic consequences of limiting travel horizons by reducing car use. Policy in this area must not race ahead of understanding’.

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European car sales hit the skids

Car sales in Western Europe fell by 15.5% year-on-year in October and sales will remain weak, J.D. Power Automotive, a leading forecaster, said.

The fall in demand has been blamed on difficult economic conditions, expensive financing and reduced consumer confidence.

Sales will fall 10-11% in 2009, with the situation “at least as bad as during the recession in the 1990s”.

Sales in Germany, France and UK have accelerated their decline lately.

“A sharp economic slowdown appears inevitable and the most important question which remains to be answered is how deep and long this event will be,” J.D. Power said.

After a 23% fall in October, the UK market is seen as particularly vulnerable, with J.D Power predicting a “significant double-digit decline in 2009″.

In Spain and Italy, where new car registrations have already fallen dramatically, “sales appear to be closing in on a more stable, but much reduced level”.

J.D Power also warns that plans to introduce government-sponsored incentive schemes aimed at boosting sales will only have a “limited impact” in the current economic climate.

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MazdaA6 named Scotland’s ‘best family car’

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The Association of Scottish Motoring Writers (ASMW) has named the Mazda6 ‘Best Family Car’ in its Scottish Car of the Year Awards 2008, commenting that, ‘Rarely has a car ticked all the right boxes when it comes to quality, refinement, and reliability. Mazda has more than met the ambitions of many motorists’.Now in its 11th year, the Scottish Car of the Year is judged by members of the ASMW and more than 50 new models, launched during the past 12 months, were in contention for a 2008 accolade, awarded across eight categories.

“The family car sector has come on leaps and bounds in recent years,” commented Bill Caven, President of the Association of Scottish Motoring Writers. “The quality of the vehicles available has risen dramatically as the manufacturers strive to offer something special. All of which is good news for those families seeking a solid all‑round transporter.

“Mazda has more than met the ambitions of many motorists following the introduction of its all-new Mazda6.”

Mazda6 impressed the ASMW judges, with the panel selecting it above family car rivals Honda Accord, Mitsubishi Lancer, Citroën C5, Kia pro’ceed, Ford Focus, Dodge Avenger and Peugeot 308. Bill Caven added: “Not only does the Mazda6 look rather spectacular, but it also performs to the same high standard of cars costing considerably more.”

Mazda UK managing director Jeremy Thomson added: “We are truly delighted that the Mazda6 has been named Scottish Car of the Year’s ‘Best Family Car’. This 2008 award is further confirmation that the all-new Mazda6 continues to attract family buyers thanks to its people and luggage carrying abilities and very competitive CO2 emissions levels, ideal for family motoring needs.

“The new Mazda6 has built upon the original model’s sportiness and design flair while the new bodyshells, which are significantly stiffer as well as lighter, mean that both the hatchback and the estate models deliver even more responsive handling.”

With a comprehensive range of 25 derivatives, including 10 diesels and nine estates, five equipment levels, four engine choices and a broad £7,020 price span, it’s not surprising that the Mazda6 is one of the company’s best-selling models. The Mazda6 is priced from £15,110 (OTR) for the Mazda6 1.8 5dr S model up to £22,130 (OTR) for the 2.0 Estate Sports Luxury model.

Until 31 December 2008, Mazda is offering the new Mazda Service Plan (valid for the first three annual services), free of charge to customers who purchase a Mazda6. Customers can also take advantage of two typical 6.9% APR* finance offers on all models - Hire Purchase with a 20% minimum deposit over three years, or a Mazda MultiOption (PCP) plan also over three years.

Buyers who order a new Mazda6 Sport or SL model can specify a ‘Smart Nav’ (worth £700 as a Mazda accessory) free of charge. These offers are available for retail sales only, until 31 December 2008.

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Suzuki Launches Splash Compact Car in Japan

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Suzuki Motor Corp. said it has launched its Hungarian-made Splash compact car in Japan.

The new car was made by improving the platform and engine of the Swift compact car Suzuki launched in 2004.

The Splash, the company’s first model manufactured overseas for sale in Japan, is equipped with continuously variable transmission that helps improve fuel efficiency. The car is priced at 1,239,000 yen.

Suzuki expects the Splash to sell well in Japan at a time of higher gasoline prices, hoping to sell 500 units per month.

The car is already on sale in Europe. Cumulative sales of the Splash in 24 European countries totaled 15,000 units in March-August.

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Nissan becomes latest carmaker to cut jobs

Nissan is asking for voluntary redundancies at its Sunderland plant - the UK’s largest carmaking site and one of Europe’s most efficient.

The moves follows Jaguar Land Rover’s decision to make 198 people redundant at its plants in Birmingham, Solihull and Merseyside, while other manufacturers, including Ford, Honda, Toyota and General Motors have introduced short-time working and cut shifts.

Nissan says that if too few employees volunteer to take redundancy then it will instead reduce its 5,100 headcount by shedding temporary workers. It could also extend the Christmas break to cut production - an approach being taken by Honda.

While Nissan’s announcement is being linked to a reduction in new car sales due to the economic slowdown, Jaguar Land Rover said its job cuts were the result of an ‘ongoing drive to improve efficiency’. Jaguar Land Rover had previously announced measures to limit overproduction, including four-day weeks and temporary closures of some plants.

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Motorists consider converting to LPG

Autogas, the leading automotive liquefied petroleum gas (LPG) supplier, has found that almost 50 per cent of motorists have considered converting their car to run on LPG because of the rising cost of fuel.

LPG currently retails at around half of the price of petrol and diesel, and in the recently published study, 47 per cent of people questioned said they have already considered converting their car to save money.

Autogas business development manager, Chris Taylor, said switching to LPG can save up to 40 per cent on fuel bills. “The cost to convert a vehicle to run on LPG is around £1,800 and based on current fuel prices and an annual mileage of 20,000 miles it would only take around 22 months to recoup this initial cost.”

“LPG is by far the most widely available alternative fuel available in the UK, although it is surprising that so few manufacturers are currently producing LPG powered vehicles. However, most petrol powered cars, and even light commercial vehicles, can be easily converted to run on LPG.”

The survey, conducted by Zussi Reseach, found that 90 per cent of motorists have changed their driving habits as a result of current fuel prices. Almost two thirds of motorists have cut down on the number of car journeys they make, and 41 per cent have made an effort to change the way they drive to save fuel, for instance, by driving at a lower speed.

When asked about choosing a new car, sixty per cent of people cited reduced running costs and 40 per cent considered reduced carbon emissions as being ‘Very Important’ when making a purchase.

As well as dramatically reducing fuel bills, LPG’s environmental credentials weigh up too. All LPG vehicles are entitled to up to 100 per cent exemption from the London Congestion Charge and as Chris explains, LPG motorists can rest assured they are doing their bit for the environment too: “Vehicles running on LPG produce far fewer harmful emissions that contribute to environmental and health problems than traditional road fuels.

“LPG vehicles produce 17 per cent less carbon dioxide than petrol and 2 per cent less than diesel, 120% less NOx than petrol and a staggering 2,000 per cent less than diesel and up to 120 times less small particle (PM10) emissions than diesel vehicles.”

Chris advises people who want to convert their car to always use a LPGA Approved Installer, who will have undergone extensive training and examinations and can advise on the most suitable system for your vehicle. There are around 200 outlets currently registered in the UK and a full list can be found at www.autogas.ltd.uk

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