The workers and the management remain bewildered as to what is going to come next

after the inferno at Maruti’s Manesar plant recently.

The violence erupted after an alleged derogatory remark made on a worker by a supervisor. The General Manager (Human Resources) Awanish Kumar Dev’s charred body was found in the plant and 100 employees were seriously injured in the grisly incident.

An industry expert sees third party involvement as the reason behind aggravating situation. “The situation gets worse when there is third party involved. The best way to solve these kind of problems is when the two parties directly come on the table and talk,” said Partner, Automotive Practices, Pricewaterhouse

Coopers, Abdul Majeed Auto Monitor. He further pointed that; the government needs to revis-it the labour law to avoid such occurrences. Many other man-ufacturers in the neighborhood hold the local politically-affil-iated people’s involvement responsible for the flare up.

The car manufacturer in a statement said, “We are deeply disturbed by the mob violence and arson at our Manesar Plant on Wednesday (18th July) evening. Several executives, managers and supervisors were brutally attacked and injured, and nearly 100 of them had to be hospitalised.”

The company has not yet revealed the amount of dam-age. However, it is clear that the office facilities have been burnt beyond repair, as have the main gate, security office and the fire safety section. According to the company, the situation took a turn for the worse when workers’

union demanded the reinstate-ment of a worker who had been suspended for beating up a supervisor. While negotiations were on with the senior manage-ment, the first act of violence by the mob was to forcibly shut the main gate and prevent managers from leaving the premises after working hours.

President, SIAM, S Sandilya, condemned the totally unpro-voked and barbaric act of violence and called upon the state and central governments to take very strict action against the guilty. “The industry can-not accept such acts of violence no matter what the grievances are… such acts of violence sully the image of India as a manufac-turing base, as an investment destination and destroys years of efforts made by the govern-ment as well as industry to nurture industrial development in the country, which cannot be allowed to happen. SIAM

also appealed to the workers of Maruti not to resort to violence but to resolve issues through mutual discussions.”

CII also condemned the incident. “We deeply regret the incidence that occurred at Maruti and condemn the vio-lence and vandalism. Loss of lives and scores of injuries

caused and sabotage by a group of workers is really unfortunate,” said Chairman, CII (Northern Region), Malvinder Singh. He added that CII strongly recom-mends that State of Haryana should administer this effec-tively and enforce law and order so that such incidence would not be repeated.

Auto Monitorwww.amonline.in23 July 2012Vol. 12 No. 22 50 Pages ` 50

I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S

FADA WANTS AUTO ZONES TO OFFSET RISING COST OF RETAIL SPACE

INTERVIEW

Pg 8Nikunj Sanghi, President, FADAPg 20-25NORTH INDIA

Now Turns

Weekly SPECIAL

Tata Motors is looking to enhance its commer-cial vehicle portfolio to effectively counter

double whammy of heightened competition and impending

slower growth in the CV market. The company is looking to tap newer geographies in the inter-national market to garner higher overall market share in the com-mercial vehicle segment in order to emerge as a global player in the CV segment.

Tata Motors’ predomi-nance in commercial vehicles will be challenged by the entry of international brands like Mercedes-Benz, Volvo and Navistar which have all entered, or are in the process of entering India. A new line of very com-petitive, fuel-efficient vehicles is being developed by Tata Motors to meet the competition head-on. The company will need to address the marketplace more effectively with its existing and future prod-ucts in order to regain the level of market share that it earlier enjoyed, pointed out Chairman, Tata Motors, Ratan Tata in the company’s latest annual report.

The report further points out that the company is in the process of developing or absorbing sever-al technologies in the commercial vehicle business as well as other business segments. The technol-

ogies for the commercial vehicle segment include hydrogen recir-culation blower system on fuel cell battery for the hybrid bus family and battery management system on bus and car hybrids.

Additionally, the company has continued the development of fuel cell bus, next generation of gas injection technology for its LCV, MCV and HCV range. It is also developing engine manage-ment systems for series of hybrid technology for buses. TML has spent around ̀ 1,550 crore on R&D activities across vehicle segments in 2011-12.

The company’s total domestic vehicle sales grew by 10.9 percent to 863,248 vehicles in FY 2011-12, according to the company’s annual report. Commercial vehi-cle sales increased by 15.7 percent to 530,204 units in the last fiscal. The competitive scenario has been intensifying for the compa-ny over the last few years as the existing OEM’s launched new variants to protect market share and new entrants sought to gain a foothold in the market. The com-pany maintained leadership with a market share of 59.4 percent in the commercial vehicle segment.

During the last fiscal, the domestic commercial vehicle market, recorded a growth of 19.2 percent with the highest ever sales

of 892,349 vehicles. The Medium and Heavy Commercial Vehicle (M&HCV) segment grew by 6.5 percent, while the growth of Light Commercial Vehicle (LCV) seg-ment stood at around 29.1 percent.

In the M&HCV segment, the company sold 207,086 units dur-ing FY 2011-12, which resulted in a market share of 59.4 percent. The lower growth of agriculture, manufacturing and construc-tion, mainly contributed to lower growth in the CV segment at 19.2 percent in current year as compared to 27.3 percent in FY 2010-11 over FY 2009-10. Further, M&HCV demand was mainly affected by higher interest rates and restricted availability of financing support, due to tight monetary policy by the RBI.

The positive trend in the last fiscal was steady growth in SAARC and ASEAN countries. In particular, the growth in small commercial vehicle segments in these geographies was robust. The new launches during the last fiscal from the company’s stable includ-ed the Tata Divo, a super-luxury inter-city bus and new variants in the Tata Starbus Ultra range.

TML may enhance CV portfolio to counter competition

Maruti’s Manesar plant operations halted

Our Bureau Mumbai

Nabeel A Khan New Delhi

The competition has intensified

over the years as existing OEMs have

launched new variants and new

entrants have tried to gain foothold

Top 5 2W Makers

Company Jun-11 Jun-12 Change

HML 499,425 521,810 4.48%

HMSI 137,745 216,208 56.96%

Bajaj Auto 208,883 211,510 1.26%

TVS 155,296 147,865 -4.79%

Suzuki 24,835 25,188 1.42%

Top 5 2W Exporters

Company Jun-11 Jun-12 Change

Bajaj Auto 113,944 106,867 -6.21%

TVS 23,337 17,545 -24.82%

HML 12,819 12,281 -4.20%

HMSI 11,166 10,468 -6.25%

IYM 9,332 8,040 -13.84%

* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL

DATA MONITOR

Ratan Tata

The violent protest at Maruti Suzuki facility at Manesar is arguably one of the worst industrial related disasters in recent years that the country is still witnessing. What is distressing (and short of

alarming) about this event is its recurring occurance and the apparent lack of government intervention to contain it.

There have been instances of industrial violence in the past at facilities in Southern India and notably at auto com-ponent supplier, Pricol, where an HR head was killed by protesting workers three years ago. Few instances in the sev-enties and eighties involving the likes OEMs and suppliers alike serve as a grim reminder of the ugly face of industry related disasters taking a turn for the worse. In the late eight-ies, Ind Suzuki faced some violence at its facility leading to its closure for many days.

The key issue that comes to the fore in Maruti’s instance is the labour policy laid down by the state governments and its implication for workers in manufacturing setups. Industry observers point out that though state government’s labour department has been keen on resolving the matter in the interest of all parties concerned, it is also keen to be seen as neutral.

The Industrial Disputes Act law mandates establishment of a Grievance Settlement Authority/Committee in every establishment employing 50 or more workmen. It is alleged

that Maruti too had promised to form such a committee to address its workers’ grievances last year after the initial unrest at the facility, but few concrete steps were taken in this direction. This led to intervention by the state’s labour department. The company on its part maintained that it has always treated workers on fair and equal terms and that any grievances should be settled through negotiations and dia-logue and respecting labour laws.

The latest incident at Maruti’s Manesar plant may be an opportunity to revisit the archaic labour laws in the country that were drafted decades back and may not serve their pur-pose today, given the fluctuations in auto production. A more flexible labour policy may be required to address the produc-tion fluctuations in the auto sector. Such a policy also needs to take cognisance of temporary workforce on shopfloors.

OEMs (and their suppliers) need to ensure a more har-monious existence at locations where they are based. State government too can ill-afford disruptions (and dislocations) and be seen as trouble zones from domestic and foreign investors’ point of views alike.

Comments can be sent to abhishek.parekh@infomedia18.in

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QUOTESS Sandilya, President, SIAM & Chairman, Eicher Motors on violent attacks at Maruti’s Manesar plant

Dieter Zetsche, CEO, Daimler AG

Industry cannot accept such acts of violence no matter what the grievances are. All IR issues have to be sorted out only through mutual discussion

“Our new compacts are among our best weapons in this product offensive. Over the next 10 years the global market for premium compacts will grow by almost four million vehicles”

Auto Monitor

EDITORIAL

Fully automated GNA facility in Jalandhar becomes operational 20GNA Udyog has recently set up a Greenfield precision forging plant in Jalandhar, Punjab with an investment of `50 crore with full production capacity of 30 lakh units a month

Maruti steers towards new exports markets, rural India 22Maruti Suzuki India has stepped up its focus on the rural market and steered its exports business to non-European countries to counter the sluggish market trends

“We have good buying power; we just need cheaper financial options” 24Rattan Kapur instills hope that the highway connecting Gurgaon to Gujarat (NH8) is an industrial potential area and will develop fast, if FDI is allowed

Fiat develops lighter future products 16Fiat has developed gear box with engineered plastic and hollow anti-roll bar, which the company claims will substantially reduce the weight as well as improve the NVH levels

Ford India expands engine plant by 36 percent 26Ford India has expanded its engine production capacity in its Chennai plant to 340,000 units per annum through debottlenecking and additional investments

CONTENTS

THE OTHER SIDE

Nissan carves business partnership with Stanley, Dewalt 30Nissan has signed an exclusive deal with Stanley and Dewalt for 13 Nissan Navara 4x4s for use by their retail, trade and roadshow teams

Federal-Mogul pistons higher outputs 34Federal-Mogul has developed a high-strength aluminium piston to increase the power density and efficiency of boosted, direct injected gasoline engines

Seat launches new Leon 40Seat has recently introduced third generation Leon packed with technology, utilising an upgraded chassis, advanced infotainment systems and driving aids

N Krishnamoorthy, President, Dealership Business, TV Sundram Iyengar & SonsKrishnamoorthy, known ‘NK’ to friends and associates, has 33 years of experience in different divisions of TVS & Sons and credited for establishing TVS Lanka

48

CORPORATE

GLOBAL WATCH

NORTH INDIA SPECIAL

16

26

Auto Monitor

823 JULY 2012

I N T E R V I E W

There have been talks about a uniform vehicle regis-tration law across India. How is the progress in this front?

Progress on this front is not much to talk about. As this relates to the agreement by various states, with political differences between different parties ruling the state, arriv-ing at a consensus is almost like a dream. We already have the example of GST not yet becom-ing a reality.

Availability of automobile retail is a big problem in the country. Any steps planned to tackle the situation?

The cost of infrastructure, specifically prices of real estate is the biggest challenge facing the automobile industry. FADA is approaching both the cen-tral and the state governments to develop specific ‘auto zones’, where land is made available for all kinds of auto dealerships at reasonable prices.

FADA has been demanding industry status. Any progress?

This would be easier said than

done but if we do get the industry status, it would entitle dealers to a number of benefits including lower costs of working capital and lower costs of electricity. It would also result in better terms for term loans.

Will India be able to see multi-brand automobile deal-ers any time soon?

This does not seem to be very far fetched. We can already see

multi-brands coming under different roofs but of the same dealer owner. As competi-tion heats up and finding good dealers becomes difficult, mul-ti-brand showrooms might become a reality in India.

Indian economy is slowing down substantially; the rupee has devaluated to all time low. How would you respond to it?

These are very disturbing indicators. Both the slowing down of economy and devalua-tion of the rupee, do not portent well for the automobile industry. While sluggish economy would result in negative sentiments and thus decrease demand, devalua-tion would mean increase in cost of vehicles.

Vehicle sales have been

almost trailing in the last cou-ple of months. Any revival expected and what would be the conditions for revival?

There seem to be no immedi-ate indications of revival as the fundamentals are weak. Revival if any can only be expected in the likelihood of a very good monsoon or some major posi-tive steps by the government towards policy reforms.

The CV segment, which did quite well in the last financial year is on way to ‘cyclic’ down-turn. How does it augur to the dealer community?

A downturn in the CV market does not augur well for the deal-ers as any downturn has a severe impact on dealer profitability, especially for CV dealers.

In the current situation, which may be termed ‘not so favourable’, what would your suggestion be for the fellow dealers?

My suggestions to the fellow dealers would be to cut down their overheads as far as possi-

ble without compromising on expenditure relating to creation of demand. I would also strong-ly recommend a major focus on service, spare parts business and on CRM to retain existing cus-tomers as it is a time proven fact that retaining existing custom-ers is nearly 70 percent cheaper than acquiring new customers.

The industry lacks skilled manpower. What are your plans on this front?

A u t o m o t i v e S k i l l Development Council (ASDC) under the aegis of the National Skill Development Council (NSDC) primarily addresses the problem of lack of skilled manpower. Most of the course content has almost been finalised and pilot training batches for machinists, techni-cians and drivers have already started. We expect much faster progress after the pilots have been tested.

My suggestions to the fellow dealers

would be to cut down their overheads as far as possible without compromising on

expenditure relating to creation of demand. I would also strongly recommend major focus on service,

spare parts business and on CRM to retain existing

customers

FADA wants auto zones to offset rising cost of retail spaceThere has been lots of action in the auto industry in the last few years. The dealers’ association continues to demand for industry status but no progress has been made so far. If they get an industry status, it would entitle dealers to a number of benefits including lower costs of working capital and lower costs of electricity. Commenting on the increasing costs of infrastructure, FADA President, Nikunj Sanghi, told Nabeel A Khan that the association is approaching both the central and the state governments to develop specific ‘auto zones’ where land is made available for all kinds of auto dealerships at reasonable prices.

Auto Monitor

C O R P O R A T E 1123 JULY 2012

Tyre manufacturers are maintaining a cautious outlook in the coming months due to muted

sales growth in four-wheelers and commercial vehicle seg-ment. Though the replacement market demand may offer sup-port to the tyre manufacturers in the current uncertain times, such demand may be inadequate to counter the expected stagna-tion or downturn in volumes.

“Cheap imports into the aftermarket continue to be the biggest challenge. While the government has been supportive and has imposed anti-dumping duty on these imports, tyres continue to be imported into the country through unfair means. To add to this, is the volatility of production at the automotive manufacturers’ end, which makes it difficult for us to forecast and plan capaci-

ties,” pointed out Chief, India Operations, Apollo Tyres Ltd, Satish Sharma. The company is looking to expand beyond its traditional strongholds of truck and bus segments to spread its operations geographically. It is maintaining a cautious growth outlook for aftermarket for tyres in the domestic market.

The company is seeing good momentum from the truck seg-ment and expect the industry growth rate to be close to dou-ble-digits, according to a recent conference call with analysts. The company further pointed out that the passenger car seg-ment should also see a growth rate in high single digits over the next year or so. It is target-ing around 20 percent growth in the revenues this fiscal. It aims to expand into new geographies and has already set-up an office in the Middle East and is looking at new locations in South East Asia to set-up sales and market-ing offices.

Sharma added that though the company has been export-ing tyres to many countries, the focus is on the Middle East, ASEAN and the Oceania region. It is looking to mirror its domes-tic aftermarket strategy in these markets as well. He also pointed out that the replacement mar-ket in these regions will take time in reaching the maturi-ty levels of the aftermarket in India. Though the company has established a favourable posi-tion in the domestic market, the domestic aftermarket cannot be aloof to the overall econom-ic conditions. The aftermarket contributed around 73 percent to the company’s consolidated revenues of FY12.

Bridgestone India Pvt Ltd is expecting muted growth in demand for tyres in the replace-ment market. It is evaluating newer segments within the auto-motive segment for growth and may be looking to have a larger play in the commercial vehicle

segment as the radialisation level grows across the automo-tive sector.

“We are increasingly looking at the scenario of lesser number of tyres being replaced in the aftermarket and efforts by the owners to prolong the life of the tyres. When earlier all four tyres would be replaced by a vehi-cle owner, just a set of tyres are

replaced for cost optimisation purpose and this is restricting the demand for tyres in the after-market especially in a slowdown. However, we feel this phase of postponement of purchase may be temporary and overall demand would continue to be good in the coming months,” said General Manager, PSR Sales & Marketing, Bridgestone India Pvt Ltd, Vaibhav Saraf.

He added that high fuel prices are likely to lead to lesser vehicle run that could in turn imply lesser wear and tear of tyres prompt-ing reduced after sales demand. Both these factors are leading to an average increase in time cycle of replacement demand from around 2.5 to three years cur-rently to around four years or so.

The company currently has around 2,200 touchpoints includ-ing exclusive and non exclusive

outlets. “We promote multi-brand outlets as we do not have solutions for all vehicle segments and it is in the dealers’ and cus-tomers’ interest to have different sizes for various applications,” said Saraf. It has around 320 ‘committed’ dealers who derive around 70 to 80 percent of their volumes from Bridgestone prod-ucts. The company manufactures around 15,000 units per day at its Indore facility and it is setting up a new facility in Pune, which will add up similar capacity over the next three to four years. It has started its operations in 1996. It set-up its manufacturing facil-ity in Kheda, Madhya Pradesh in around 1998. The company is setting-up its Pune facility with an investment of around `2,600 crore with capacity to manufac-ture a range of radial passenger vehicle tyres.

Tyre makers maintain cautious outlook

Bridgestone is setting-up its Pune

facility with an investment of around

`2,600 crore to manufacture radial

PV tyres

Our Bureau Mumbai

Satish Sharma, Chief, India Operations, Apollo Tyres Ltd

Vaibhav Saraf, PSR Sales & Marketing, Bridgestone India

Auto Monitor

A N A LY S I S1223 JULY 2012

-50.59%

-12.16%

4.73%

-24.14%

-24.41%

-8.78%

-16.31%

158.51%

145.44%

5.22%

Passenger Vehicles

Passenger Cars

OEMs 2011-12 2012-13

BMW** 2,377 2,088

Fiat 5,705 2,819

Ford 20,754 19,039

GM 20,611 17,624

HM 866 407

HSCI 7,734 19,993

HMIL 92,907 97,302

M&M 3,807 2,888

MSIL 208,432 216,225

Merc 1,663 1,257

Nissan 4,377 10,743

Renault - 1,798

Skoda 7,379 10,535

Tata 54,346 49,576

Tata JLR - 514

TKM 15,672 20,547

Audi 1,254 1,908

VW 18,568 15,539

Total 466,452 490,802

MPV

OEMs 2011-12 2012-13

Force 82 5

M&M 4073 7452

Maruti 40,749 28,074

Tata 12,750 16,590

Total 57,654 52,121

Commercial Vehicles Two-Wheelers

LCVs (PC+GC)

OEMs 2011-12 2012-13

ALL 106 7,412

Force 5,253 5,717

HM 42 56

M&M 26,983 31,959

MNAL 2,393 2,234

Piaggio 2,929 1,103

Swaraj 1,049 887

Tata 56,435 64,973

VECV - Eicher

2,507 2,819

Total 97,697 117,160

3-Wheelers (PC+GC)

OEMs 2011-12 2012-13

Atul 5,504 6,726

Bajaj 42,276 44,837

Force 4 1

M&M 14,058 13,815

Piaggio 42,535 39,441

Scooters 3,368 3,162

TVS 2,585 3,267

Total 110,330 111,249

M&HCVs (PC+GC)

OEMs 2011-12 2012-13

ALL 16,632 17,170

AMW 2,329 1,679

JCBL - -

Daimler* 17 NA

M&M 0 0

MNAL 559 1,224

Swaraj 2,000 2,330

Tata 45,541 34,943

VECV - Eicher

7,668 8,343

VECV - Volvo

113 152

Volvo Buses

195 214

Total 75,054 66,055

Scooter/Scooterettees

OEMs 2011-12 2012-13

BAL -

HML 97,165 108,971

HMSI 225,754 360,862

M&M 2W

32,257 30,487

Piaggio - 4,917

SMIL 67,785 76,730

TVS 109,279 105,366

Total 532,240 687,333

Mopeds/Electric

OEMs 2011-12 2012-13

TVS 190,672 203,247

Electrotherm* NA

Total 190,672 203,247

Motorcycles/StepThroughs

OEMs 2011-12 2012-13

BAL 623,175 618,489

HDMC 0 279

HML 1,389,220 1,486,654

HMSI 179,404 261,314

IYM 81,035 77,549

M&M 2W

RE 17,668 26,415

SMIL 15,567 15,836

TVS 155,793 142,413

Total 2,461,862 2,628,949

* Data not available since August 2008 onwards** BMW monthly data not available

UV

OEMs 2011-12 2012-13

Force 807 1,054

Ford 634 455

GM 5,889 3,704

HM 472 381

HSCI 67 83

HMIL 254 228

ICML 92 132

M&M 44,407 58,616

MSIL 1,502 18,965

Nissan 40 29

Renault - 86

Skoda 438 325

Tata 9,915 9,621

TKM 13,513 24,032

VW 4 -

Total 78,034 117,711

6892.45%

8.83%

33.33%

-6.64%

-62.34%

15.13%

12.45%

12.15%

13.20%

29.14%

19.92%

59.85%

-5.49%

-3.58%

-0.75%

-4.30%

-8.59%

7.01%

45.66%

-

49.51%

1.73%

6.79%

6.60%

0.00%

3.23%

00.00%

118.96%

16.50%

8.80%

-23.27%

-11.99%

34.51%

9.74%

-10.24%

-27.50%

-25.80%

-2.97%

30.61%

-19.28%

30.12%

-31.11%

-9.60%

82.96%

-37.10%

-28.23%

23.88%

22.20%

26.38%

0.83%

6.06%

-75.00%

-1.73%

-7.27%

-6.12%

-53.00%

-8.26%

-14.49%

3.74%

18.44%

-15.44

The passenger car segment grew by 5.22 percent during the April-June period this fiscal, while the utility vehicles grew by 50.85 percent and the multi-purpose vehicles declined by 9.6 percent in this fiscal.

Honda led the passenger car segment with a growth of around 158.51 percent from 7,734 units to touch 19,993 units this fiscal, as compared to the previous period. Maruti regis-tered the highest growth in the utility vehicle segment with 1162.15 percent growth to touch 18,965 units in April-June 2012-13 period.

The overall commercial vehicles segment registered a growth of 6.06 percent in April-June, 2012-13 as compared to the same period last fiscal to touch 183,215 units. M&HCVs sales declined by 11.99 percent to touch 66,055 units compared to 75,054 units in the same period in the previous year. The LCV segment grew by 20 percent to touch 117,160 units in this fiscal, compared to 97,697 units in the same period last fiscal.

Three-wheeler sales were stagnant at 111,249 units in April-June period compared to 110,330 units in same period last year. Passenger carriers rose by 5.66 percent in April-June while goods carriers fell by 15.09 percent.

ALL registered the highest growth in the LCV segment to touch 7,412 units. TVS Motors registered highest growth in three-wheeler segment to touch 3,267 units.

Domestic two-wheelers sales witnessed a growth of 10.53 percent in this fiscal to touch 3,519,529 units against 3,184,774 units during the same period in the previous fiscal. Mopeds, motorcycles and scooters grew by 6.6 percent, 6.79 percent and 29.14 percent respectively.

The motorcycle sales grew to 2,628,949 units in April-June period as compared to 2,461,862 units in corresponding peri-od in the previous fiscal.

In the Motorcycle segment, Royal Enfield sales were up by 49.51 percent in April-June period this fiscal, while Bajaj Auto’s sales were stagnent at 618,489 units compared to 623,175 units in same period last fiscal.

In the Scooter segment, the sales of HMSI grew by 59.85 percent while TVS Motor sales declined by 3.85 percent in this fiscal.

Hero MotoCorp reported its best sales for June at 521,810 units, registering a jump of 4.48 percent over the same month last year. Bajaj Auto witnessed marginal one percent growth in its June sales at 211,510 units against the same month in the previous fiscal.

TVS Motor Company reported total domestic two-wheeler sales of 147,865 units in June registering a decline of 4.79 per-cent. Honda Motorcycles India registered the highest growth in domestic two-wheelers sales at around 56.96 percent to touch 216,208 units in June this year.

42.77%

31.11%

52.15%

43.48%

1162.65%

77.84%

50.85%

32%

-100.00%

-93.90%

6.60%

-27.91%

Auto Monitor

I N T E R V I E W1423 JULY 2012

Will the A3 be coming to India? And how would it be positioned?

First let’s answer two ques-tions—if the A3 is coming to India and when? And the third question I would add is—which kind of A3 will come? So we have a three-door version, we have a five-door version, both being hatchbacks and we will have a limousine. And out of the three right now, we probably will see the biggest potential for the A3 limousine. As Peter Schwarzenbauer has said, we are intensively looking at a product clinic. We have some kind of gut feeling that we would like to be endorsed by customer inter-views. We see that especially with Q3; we got a very strong feedback and we started booking.

I would say the hatchback would be my priority number two. I would probably first opt for the limousine in India. But as I said, the decision has not been made. And if we go for the limousine, I think you have to look at both, you have to have a Quattro ver-sion, which is 100 percent Audi. But I think you have to also offer a front wheel drive version to allow a certain entry price so that you capture the entire potential of the segment.

If you had to explore the limousine. Where would it be positioned?

I think the strategic price position we have to look at is the `20-30 lakh segment. Now at the upper end, we have the A4 and then the Q3, which is about `25 lakh plus depending on features

and packages going to an early `30 lakh price-point. So definite-ly we have to be in the lower-end of the `20 lakh bracket. But as I said, we haven’t made a final deci-sion on the product, we haven’t done the product clinic yet, we have some indications, and then you also need to carefully look at the packaging. There are lots of questions we have to ask yet because that segment is new and we are competing with a lot of premium players.

How significant will the A3 be in Audi’s plans for India?

I think the A3 will be definitely another very important building block for the strategy. But if you ask me to go all the way, then a lot of people always ask what about A1? And I think we need to look at a combination of A3 and A1—A3 probably a little earlier because you know we love the top-down approach—A8, A7, A6, A4, prob-ably A3 at a certain point of time and I think once we have accom-plished all that, then I think the A1 will definitely be another game changer. But the Q3 has just start-ed, bookings are coming in, we had a couple of booking parties all over the country. We’ve seen phe-nomenal feedback, as you said, I think because of the pricing, especially considering that cur-rently it’s still a CBU (Completely Built Up).

We worked very hard and we had to convince our headquar-ters quite a bit that the pricing is meeting the market expectations and also to give us a certain vol-ume. You don’t want to launch a car and then only have few numbers; you want to make an impact and I think this month we will have substantial deliver-ies already kicking in. So I think

our growth compared to last year should be significant.

And you would need to man-ufacture the A3 here in India?

If you look today, we have the A6, we have the A4 and the Q5. Currently, we are building the assembly hall for the Q7 and based on the market feedback we are getting and the strength of the response to the Q3.Probably that’s the next most likely prod-uct to be produced in India. We will then have five products. We are looking at one or two more to be added to our portfolio, but we haven’t decided that.

Then you need to look at cer-tain components, where either the Audi brand buys certain chunks so that it makes sense to localise, so you have obvious things like bat-teries and tyres and then we look at cross platforms. A3 is the first car with the MQB platform so we have of course synergies between the VW group brands. It makes a lot of sense to purchase components locally, maybe with larger volumes, pooling our demands across the

various brands. But luckily, I’m responsible for sales and market-ing. I give my costing and pricing to my manufacturing guys and based on that they have to come back and say: okay, how much local content do we need to meet that price. And we also have global sourc-ing, I think that’s very important. Certain components today will be globally sourced out of India.

Do you think there is enough interest in our market for products other than just the conventional saloon or SUV?

If you look at our brand values, one is sportiness, which is where you have the Quattro GmbH, the S and the RS. Secondly, there’s progressiveness and that’s very much about the Quattros and the Qs. And the third brand value is sophistication, so that’s definite-ly our limousines. Looking at it, I would say crossovers are some-thing where I think India is still not completely ready. Now in the SUV range, certain crossovers are there. Our competition has launched one on a large scale.

Number wise there is room between Q3 and Q5, which is Q4 or between Q5 and Q7 which is Q6. We don’t talk about these products in India because they need to be launched globally first. I see some potential, but again it’s a matter of what package you get, what pricing you get and where approximately you can position it in consumer’s mindset. Take for example, the A7, which is a beautiful car, still you speak to a niche audience. It’s not a volume seller because of the price point on one hand but it’s not a typical free form car with a classical saloon shape. So I think when you look at crossovers, this is something we need to further study in the market and then act. But I’m very bullish on the S and the RS models because they are pure Audi!

We’re also talking right now about a project, which has been in the press, I can’t confirm it. For example an SQ5—could be an interesting idea, its not con-firmed yet.

Also, I can see that you can play so much more with diesel. I think the technology has so much more pedigree. You know, we were the first to take diesel to the 24 hours of Le Mans and this year we have the halo of our mod-els, which is a Quattro—e-Tron, ultra lightweight, everything in one car. So that’s the pioneer of our technology. I think a die-sel hybrid for example would be interesting: turbo powered, performance oriented, but still efficient. There’s so much to play around with diesel especially in a market like India and Italy, which are strong diesel heritage coun-tries—the diesel performance cars will definitely challenge the petrol performance cars. (Courtesy: Overdrive)

“We need to look at a combination of A3 and A1”MD Audi India, Michael Perschke talks about expansion and getting volumes.

Auto Monitor

C O R P O R A T E1623 JULY 2012

Fiat has recently developed gear box with engineered plastic replacing heavy metal and hollow anti-

roll bar (torsion beam), which the company claims will sub-stantially reduce the weight as well as improve the NVH levels. The development comes when there has been a global trend to develop light weight vehicles to cut down friction and carbon emission by increasing fuel effi-

ciency to comply with the stricter emission norms which are being formulated of late.

Head-Engineering & Design of Fiat India, Jayant Kumar Deb speaking to Auto Monitor said “We have developed a gear box made of engineered plastic. Such a gearbox would reduce losses more than it reduces fuel efficien-cy. However five-eight percent reduction in fuel efficiency can be expected. The reduction in weight will not only reduce mass but will also contribute to durability and reduction of NVH levels.”

The change in metal required a complete change of design that would rotate the gear and shaft on different axes. Engineered plastic has been used in plan-etary gears in the transmission and the new design engages more number of gear teeth that will help in reducing noise in the cabin and gearbox. This can set a new trend and a modern applica-tion of engineered plastic.

The hollow anti-roll bar has been replaced with a new mate-rial, which has same stiffness as the solid rod. However, the

car maker is not sure about the adoptability of the new gear box and hollow anti-roll bar because of the factors like cost especial-ly in the mass segment vehicle where the cost plays very impor-tant role.

The carmaker is also explor-ing the use of silicon rubber in tyre to have low rolling resist-ance tyres, which will enhance the fuel efficiency. There are 20-25 types of rubbers used in different locations of tyres, sili-

con rubber will help to improve fuel efficiency. However, the use of excessive silicon rubber can’t still be incorporated in India due to bad condition of roads. As sili-con is more susceptible to cuts and is costlier as well.

Fiat develops lighter auto component;

HM introduces Cedia Select 2012

Hindustan Motors Ltd recently launched new Cedia Select 2012 with a host of new features which include a seven-inch Mapmyindia android-

based carpad via 3G which is equipped with features like making calls, watching TV, surf-ing net, video-chatting with facility of rear-view and checking e-mails while travelling.

The new Cedia Select 2012 is available in three colours namely white speed, black flash and rally red. It is priced at ̀ 8.90 lakh (ex-show-room New Delhi).

The two-litre petrol car, comes with elegant interiors. Its three-spoke black leather wrapped hydraulic power-assisted steering and oyster leather seats for five raise the comfort quotient. The vehicle with 115 PS@5250 RPM power and 175 nm@ 4250 RPM torque offers a new two-tone beige interior and beige floor mats, sparkling 12-spoke alloy wheels, high-intensity clear lens halogen headlamps and two-stage horizontal-slat matte black grille.

The Cedia Select also comes with a four-speaker Kenwood DVD player with 6.1” touchscreen interface which is GPS compatible and has Bluetooth/USB connectivity as well. The rear-view camera, fitted at the back of the vehicle, offers output on the audio unit.

TII to buy 44 percent in Shanthi Gears

Tube Investments of India (TII), part of the $4.4 billion Murugappa Group, plans to acquire 44.1 percent stake in Shanthi Gears. Coimbatore-based

Shanthi Gears has finally agreed to sell their entire holdings to TII in a deal that values the

We have developed a gear box made of engineered

plastic. Such a gearbox would reduce losses more than it reduces

fuel efficiency. However five-eight percent reduction in fuel efficiency can be expected

The Cedia Select comes with a four-speaker Kenwood DVD player with 6.1” touchscreen

interface which is GPS compatible and has Bluetooth/

USB connectivity as well

Punto At The Fiat Caffe In New Delhi

Our Bureau New Delhi

Our Bureau Chennai

Nabeel A Khan New Delhi

Auto Monitor

C O R P O R A T E 1723 JULY 2012

considers silicon rubber for tyres

company at around `464 crore. Shanthi Gears Ltd manufactures a wide range

of products that include gears, gear boxes, geared motors and gear assemblies. It has been design-ing, manufacturing and supplying various kinds of gears and gearboxes to various industries for a variety of applications for the past four decades. The company has manufacturing operations in Coimbatore spread across six units including a foundry division and markets its products in India and abroad. The company recorded a turn-over of `178 crore in the financial year 2012 with a profit after tax of `28 crore. The company is a debt-free company as on 31 March, 2012.

Commenting on the strate-gic fit of this acquisition, Chairman, Tube Investments and Vice Chairman, Murugappa Group, MM Murugappan stated t hat “Shanthi Gears is one of the largest organ-

ised players in India in the gears segment and its product profile is targeted towards more of niche products and greater customer retention. We hope to leverage our understanding of the engineering space and our existing customer relationships to help scale the business further.”

Announcing the acquisition, Managing Director, Tube Investments, L Ramkumar, said, “The addition of Shanthi’s product port-folio substantially enhances our ability to service other industry segments and reduce our reliance on the auto sector, at the same time growing our presence in the value added businesses.”

The promoters, who hold 44.12 percent stake, would net `292 crore from the sellout. Shanthi Gears Chairman & Managing Director, P Subramanian, who holds 34.57 percent of the stake in his individual capacity, would get around `229 crore. The total acquisition cost, including the mandatory open offer for a 26 per-cent stake, is expected to be ̀ 464 crore, assuming full response to the proposed open offer.

The addition of Shanthi’s product portfolio substantially enhances our ability to service other industry segments and reduce our reliance on the auto sector—L Ramkumar

Smaller capacity engines provide good power and torque output is almost as much as bigger capacity engines these days. Are you working on simi-lar lines as well?

Every engine has a threshold value and it produces a cer-tain maximum power or torque rating. Power and torque rat-ings for a naturally aspirated engine can be increased by mating it with a turbocharg-er. While a Fixed Geometry Turbocharger (FGT) gives 13 times higher boost than a natu-rally aspirated engine a Variable Geometry Turbocharger (VGT) produces a Flat Torque Curve characteristic.

MUVs and SUVs do not pull effectively without turbocharg-

ers that provide instant boost at certain RPMs. However, within city conditions, turbos aren’t very effective. Also, there’s a global concern these days to reduce emissions with stricter norms. The reduction in emis-sions also leads to better fuel efficiency. For that a lot of steps are taken like transmission management, engine torque characteristics, reduction of friction, use of alloys etc. A big-ger engine is however used if the vehicle is heavier.

What other practices are

adopted to reduce the overall weight of the vehicle?

Use of sheet metal, plas-tic parts and polyurethane are some common practices while

aluminium and its alloys are also used extensively. Overall, it increases the cost of the vehicle but increase in fuel efficiency and meeting crash regulations come hand in hand.

Another important aspect is reducing friction, within mechanical parts as well as of the tyres. Tyres with less roll-

ing resistance help to increase the fuel consumption consid-erably. Silicon rubber is used in the production of low roll-ing resistance tyres but silicon is not only costly but more sus-ceptible to cuts. Hence Indian road conditions don’t permit extensive use of silicon in tyre preparation. However, less-er percentage of silicon is still used.

When would such innova-tive technology come to India and in global markets?

It might take less than 10-15 years since it is in the research stage only.

Off late, we have seen the

use of hollow rods increasing so as to reduce the overall weight. What is your take on that?

Hol low rod s and bars can be used, but with dif-ferent dimensions a nd d ia meters. Application of such rods can be cheap-er as wel l as lighter decreasing the inertia mass in the process.

Will the hol-low anti-roll bar be durable?

Yes. Not just thick-ness, you also need durability. If the stresses can some-how be reduced, it would serve a greater life. The designing needs to be done accordingly.

Any plans to implement

this technology in near future?We keep working on dif-

ferent things but might not

necessarily introduce them. It is always better to design and develop something that is eas-ily available. However, we can use it as soon as these give us a cost benefit, since customers don’t consider the technology beneath.

Jayant Kumar Deb, who is heading engineering & design team of Fiat India, says that the days are gone when the capacity of a powertrain was decided based on the size. Today, it is measured on the basis of power and torque. He tells Nabeel A Khan that for the light weighting use of sheet metal, plastic parts and polyurethane are some common practices while aluminium and its alloys are also used extensively. Excerpts from the interview.

L Ramkumar, MD, TII

Auto Monitor

V I E W P O I N T1823 JULY 2012

The FMCG sector, India’s fourth largest sector in the economy, cre-ates employment for

more than three million people every year. India has one of the most promising consumer mar-kets and the changes in income levels / lifestyles will accelerate the demand for consumer and automobile goods, which results in consistent investments in manufacturing & innovation to boost sales.

The dealer and distributor segment in the auto / consum-er industry plays an important role for the organisation. All the revenue generating employees are not necessarily on the com-pany’s payroll. In fact, at times outsourced employees are the bread winners.

FMCG Third Party Payroll The entry level representatives

in this sector are on distributor’s payrolls. A distributor repre-sentative sells everything from confectionary to shampoos. They are responsible for sales ie order generation to dispatch, delivery and collections. Additionally, many distributors do not operate on exclusive basis for the parent organisation; they would ideally have a tie up with two or three companies. This dilutes focus on each brand, each client and each product. Companies are expect-ing value added services with a strong focus on its products, which seem to be getting dilut-ed with the general distribution model. Exclusivity with a focus is the key to every company’s success in challenging markets. Additionally, understanding of the product and positioning it against competition is also vital. Hence companies expect even indirect employees to know the competition and their products well.

Selling is all about skills, which develops through train-ing and understanding, which is completely missing in employees in distributor roles. The indirect representative who does the end-to-end task of generating orders to delivering products chokes the bandwidth. Further, ongo-ing manpower shortage and the increasing attrition rate have also impacted the company’s sales revenues. It’s all about Headcount + Productivity management = Sales. Lastly, the companies also need to ensure compliance for its indirect employees.

To address the challenges,

FMCG companies are gradually exploring possibilities of employ-ees on staffing company’s payroll instead of distributor’s payroll. This leads benefits for the com-pany as well:

and product training

headcount to ensure business continuity

performance management

positions on direct payroll

and it’s costs

Challenges In The Automobile Industry

Similar to the distribution model in the FMCG sector, the sales of automobile compa-nies are driven through a retail channel managed by its dealers. And hence, managing the staff on dealer’s payroll is one of the major challenges faced by auto-mobile industry as well. These challenges are resulting into loss of business, low market penetra-tion and low brand image. The retail business focuses prima-rily on head count versus sales. Hence shortage of manpower will result in lack of sales, which would have an adverse impact on the company’s revenues and market share.

No doubt, India is a growing consumer market and has a lot of business potential for auto-mobile companies. The auto retail sector comprises an exten-sive network of 8,500 automobile dealerships and their workshops with a combined investment of `25,000 crore and employing five lakh people directly. They are an important stakeholder in the growth of automotive industry.

The automobile industry also has seen a splurge due to the change in consumer approach. Earlier, buying a vehicle was either a status symbol or a luxury. Today, buying a vehicle could be for luxury, status symbol, neces-sity, comfort, technology or it could be for fun as well. Further, the easy availability of various finance options has made own-ing a car much easier.

Just like the consumer indus-try, the common challenges faced by automobile companies are:

sales volume

recruitment, hiring challeng-es in remote locations

saving approach by dealers

Lack of product and company knowledge

lack of training

the product and create a value image

compliances -

ee’s ROI The HR honchos are work-ing towards addressing these challenges. They are craft-ing policies or incentivising

dealers to ensure an adequate headcount. Companies are also investing on training the deal-er’s employees. They are offering permanent jobs on perform-ance within the organisation by creating a future talent pool. They are also facilitating sup-port towards hiring. However as companies don’t have a control on the productivity or perform-ance management of the dealer’s employees still remains a main concern.

(The author is the General Manager, TeamLease Services )

Exclusivity with a focus is the key to every company’s

success in challenging markets. Additionally, understanding of the

product and positioning it against competition is also

vital. Hence companies expect even indirect

employees to know the competition and their

products well

Companies are also investing on

training the dealer’s employees. They are offering permanent

jobs on performance within the organisation

by creating a future talent pool

Akin to FMCG sector, auto companies are gearing up towards third party payroll Hussain Tinwala

Like a shift in FMCG, auto companies are gearing up towards a radical move of transitioning dealer employ-ees to third party payroll as well. The initial facilitation and transition costs are borne by the auto company. The initial costs includes hiring expenses, payroll processing fees, transition costs, training expenditures and on the job training. The monthly recur-ring salary cost is paid by the company but adjusted with dealer payments.

Advantages

compliances

parameters to ensure qual-itative hiring

-tions, including remote areas

by associating with various institutes

technical training which includes field visits

ensure business continuity -

sus head count plan

performance and people productivity

-er cost

Facilitating The Auto Industry

Auto Monitor

N O R T H I N D I A2023 JULY 2012

Jalandhar-based, drive line component manufactur-er GNA Udyog has recently set up a Greenfield preci-

sion forging plant in Jalandhar, Punjab with an investment of ̀ 50 crore with full production capac-ity of 30 lakh units a month. The automated facility can be run by only 15 people and it com-menced production recently with an initial capacity of 10,000 units a month.

“We are looking to expand in to precision forged components, as we have the desired equipment and know how to design and

manufacture tooling for same,” CEO, GNA Udyog, Maninder Singh Seehra told Auto Monitor.

The plant spread over 38,000 square feet will start production with full capacity utilisation by 2015 and will cater to the demands coming from commercial vehicle and car manufacturers. “Over the next few years, we plan to invest up to `25 crore, mainly to debottleneck the downstream processes and putting additional technology and achieve sales tar-get of `250 crore by 2015. Given the current market scenario, we are readjusting the growth pro-jection to 33 percent. Earlier it was projected to grow by around 40 percent,” Seehra explained. Last year our company closed at `115 crores achieving a growth of 12 percent whereas GNA Group turns over was `698.68 crores.

The component maker, which has envisaged growing at the rate of 40 percent, has moder-ated its growth projection to 33 percent, looking at the current sluggish situation. The company has bagged an order for steer-ing columns from an Italian car maker, which has been delayed by six months. After the go ahead

from the Italian car maker, GNA will export five lakh units.

GNA at its new R&D centre has developed new propeller shaft designs for LCVs and ICVs, which has been approved by a number of commercial vehicle makers. The new propeller shaft is lighter by five percent in comparison to standard shafts available in the market. The reduction in weight was possible by using advanced design techniques and finite element analysis. It has already procured a trial production order from some India OEMs

The R&D facility was estab-lished around two years ago with an investment of close to `seven crore on technology and equip-ment, is enabling the company to face the competition. It foresees competition for propeller shafts heating up in India and also glo-bally. There are some customers who would give only the vehicle specifications and the compo-nent makers are supposed to design and develop the prod-ucts. For such customers, the R&D and design centre will act as a boon. Now it has made a major technology shift because of the changing demand in order to be

globally competitive.The company has already

reaped the benefit of this R&D centre designing and developing its first propeller shaft and even-tually becoming an end-to-end solution provider.

Based in Jalandhar, the com-pany has the advantage of getting easier access to manpow-er and easy availability of land

for expansion. “The major prob-lem we face is that logistically, we are away from customers and hence need to maintain higher inventories. Other challenges like unavailability of power and lower amount of big automotive projects being put up in state, gives geographical advantage of players in the industrial belt.” Sheera added.

Nabeel A Khan New Delhi

Fully automated GNA facility in Jalandhar becomes operational

GNA has bagged an order for steering

columns from an Italian car

maker. After the go ahead from

the Italian car maker, GNA will export five lakh units

Triumph to set up bike assembly plant in Karnataka

UK-based Triumph Motorcycles has signed a memorandum of under-standing (MoU) with the Karnataka government to set up a bike assembly

plant in the state. Initially the bike manufacturer will be assembling its Bonneville, Street Triple, Speed Triple and Daytona 675 models locally. Later, by looking into the response it may con-sider to manufacture their bikes locally here.

According to a company official, the govern-ment has allotted 40 acres land at Narsapura in Kolar district, which is 52 km away from the capi-tal city, Bangalore. The location has been aptly shortlisted for the proximity of the port for both importing completely knocked-down (CKD) kits from its Britain plant and later exporting of bikes.

The company will be initially investing `215 crore towards its new facility and expected to commence its production in another couple of years. The company is all set to launch its motorcycles in the Indian market in the next few months and expected to price four of its models very competitively, despite them being brought into India as CBU initially. These mod-els would later be assembled by Triumph once the assembly unit is up and running.

Triumph had showcased its India range of products at the Delhi Auto Expo in January this year. The product line displayed at the motor show included the parallel-twin, Bonneville, the iconic naked roadsters Speed Triple and Street Triple, the off-roader Tiger 800XC, class-leading super sport bike Daytona 675 and the cruisers Storm and Rocket III, which will be rolled out as CBU models. Triumph Motorcycles has always set the pace for category winning machines that offer a blend of design, character, desirability and performance combined to create truly dis-tinctive motorcycles. The cheapest motorcycle from the motorcycle manufacturer, Bonneville comes with a price tag of `five lakh.

Bhargav TS Chennai

Maninder Singh Seehra, CEO, GNA Udyog

Auto Monitor

N O R T H I N D I A2223 JULY 2012

Maruti Suzuki India Limited (MSIL) has stepped up its focus on the rural

market and steered its exports business to non-European countries to counter the slug-gish market trends. The car maker has recently increased its exports focus on South East Asian Countries, South Africa and Latin America.

MSIL’s rural sales segment claims to have been growing continuously and faster than the industry overall. A few years ago, the carmakers’ rural sales con-tributed about six percent of its total sales, which has now gone up to 25 percent.

“The growth in rural sales is due to our aggressive strategy of greater penetration in the rural markets and our very good mar-keting initiatives. The share of

rural markets in the overall mar-ket has been increasing because of the increase in rural incomes and also because our rural econ-omy is largely isolated from some of the global downturn phe-nomena.” Executive Director, MSIL, Shashank Srivastava told

As far as urban markets are

concerned, the dynamics are

quite different and the portfo-lio of sales is also quite different and requires a different strategy. MSIL is trying to increase market share in the urban areas also. The success of the new Swift and the new Dzire as well as the Ertiga augurs well for the company.

The Indian currency has been depreciating against almost all major currencies recently. This has taught the company a bit-ter lesson, and thus increased exports came as a natural hedge against these fluctuations.

In the recent past, it has reduced dependence on the European markets from 75 per-cent of exports by volumes to about 20 percent. This was possible because it developed new markets in the non Europe area. The company will look at introducing new products for exports. For example, it recently launched the Dzire in Algeria and also launched Ertiga in Indonesia.

Nabeel A Khan New Delhi

Maruti steers towards new exports markets and rural India

The growth in rural sales is due to our aggressive strategy of greater

penetration in the rural markets and

our very good marketing initiatives— Shashank Srivastava,

Exe Director, MSIL

Shashank Srivastava, Executive Director, MSIL

Maintaining Market GroundsLast year, MSIL experienced a slump in

the market share to below 40 percent mainly because of the labour issues and a shortfall in supply of diesel vehicles. Other reason was the increasing share of new players in the mass seg-ment like Toyota, VW and GM. Going forward, the country’s largest car maker will be looking at a market share between 40 to 44 percent. MSIL has been maintaining a market share of around 44 to 45 percent for almost a decade despite the entry of many OEMs and a huge number of com-peting brands.

As the MUV segment has grown dramati-cally this quarter, which was in the first quarter smaller than the Sedan segment. Ertiga, in this segment has got good response and compa-ny has got almost 50,000 bookings so far. The demand is largely in diesel variants where MSIL now has a long waiting period.

In The PipelineThe OEMs are trying to create excitement

with new launches and variants, responding to this trend, Srivastava pointed out, “We have been introducing new products regularly and have also been upgrading the older brands. In fact in 2007, we introduced the Swift diesel and the SX4 , in 2008 the Dzire and the Astar, in 2009 we had the Ritz, in 2010 the Eeco, Alto K10, the CNG models, New WagonR, the new Estilo, in 2011 we had the New Swift and very recently the New Dzire and the Ertiga. This is testimony of our commitment to bring the latest and the new models to the Indian consumers. We will continue to have a similar philosophy in the future also.”

In order to reduce the waiting period, pri-marily because of the high demand of diesel vehicles, the company has increased the sup-ply of diesel vehicles from 245,000 last year to a planned 400,000 this year. At the same time, MSIL is also educating the customers that diesel may not be the right choice espe-cially if the distances driven by the consumer are not large.

Increasing CapacityThe company doesn’t plan to make any

change in the investment plans. “What we see today is actually a temporary blip and the long term growth story is largely intact. In fact, in the last few years, the Indian domestic car market has grown at a CAGR of about 12 percent and we see it growing at a similar rate in the near future also. Thus, we should see the Indian car market touch the four million mark by 2015-16,” added Srivastava.

To reduce the waiting period, MSIL is increasing assembly capacities, diesel engine supplies by way of increasing productivity at the suppliers’ side and also increasing diesel engine supply by new contractual terms.

Auto Monitor

N O R T H I N D I A2423 JULY 2012

Why do we continue to wit-ness labour unrest?

There is an improvement in the labour relationship. But it just means that one year has gone past peacefully and it doesn’t point towards a shift in the attitude of labour towards management. There is still a tus-sle going on and until and unless both sides change their perspec-tive and make it for the growth and development of the coun-try, I don’t think the issue can be resolved. At the end, either government or somebody has to take a firm step and look into the matter.

This problem has been there for quite a long time now. Why is the gov-ernment not looking into the issue?

The govern-ment can give a bet-ter

answer as to why they are not inclined towards open discus-sions. It should lay down the guidelines for both parties, not just for manufacturers. There should be guidelines for labour as well.

Delhi-NCR has been a kind of automotive hub in north-ern region but there is an acute shortage of land here now. What is the future of industrial expansion?

We can’t have industries in

urban areas and they have to move out. In a way it is good since here we fall short of amenities

like big

roads. But upcoming areas have to be well connected, not only by roads but also by rail. A fast link-ing metro or something would enable people to stay anywhere and work and will save time and fuel as well. The govern-ment’s policies are good, but they aren’t complete.

What are the major chal-lenges faced by component manufacturers in North India?

Firstly, the land is far too expensive. Second, water, third, electricity and fourth is trans-portation. Just look at the whole setup, everything seems to be on paper, nothing is concrete. In other countries, industry imbibes R&D, training institutes, hostels, hospitals so you don’t need to move out. That brings everything closer and reduces the talent cost as well. Model townships here are just on papers and don’t get world-class features. If you want to promote the industry, promote it fully.

So what steps are being taken to address these issues?

We’ve been requesting gov-ernment to provide gas since it is a cheaper source of power. It has come to places like Tapukara and nearby areas. Gas is far cheaper than electricity and we can gen-

erate our own power. That will be much cheaper than diesel

as well. Highway connecting Gurgaon to Gujarat (NH8)

is all industrial potential area. Foreign countries are investing in a very big way in what is called the

industrial corridor. All along the highway industrial belt is being made.

I think in the next five years, they’ll surely come up if the FDI is allowed. Since other markets are going towards saturation, this is the place to invest in infrastruc-ture. Foreign investment can do complete infrastructure plan-ning. They’ll put up the industry and will have highways going across and will be well connect-ed by rail.

What potential does Gujarat offer to industry?

Gujarat has surplus power. They have a single window clear-ance for everything and land is cheaper. The only problem is manpower. But that can be resolved if you give amenities to the ones who work there.

How are manufacturers off-setting European slowdown?

Maybe on the OEM side, the volumes are falling down a little bit, but replacement and after-market is booming. There is surge in demand of replacement products as people are extend-ing the life of their vehicles. That is where we will sustain. India is however better than Europe. India has good buying power. We just need cheaper financial options.

But falling ‘Rupee’ does have an impact.

The government provides benefits for R&D. Overall, its okay for India and we should grab as much R&D technology from

European countries and make ourselves strong and independ-ent. This is the right time to do that.

Earlier, we were talking about marriage between Tier II and Tier III. How has that progressed?

That is still the priority of all the companies and mine too, being the chairman of ACMA. We are doing initial develop-ments, employee involvements, problem-solving and qual-ity circle competitions. We not only involve Tier I companies, but also Tier II and some Tier IIIs. We don’t see any difference between Tier I and Tier II compa-nies. Thankfully, manufacturers like Maruti Suzuki and Honda are also on same lines by going directly to the Tier II compa-nies and imparting training and knowledge to them. So, the move-ment has started. Tier II quality has started to improve and the chain is becoming stronger.

What are the logistic chal-lenges faced by companies?

There are not many prob-lems for companies based near the mother unit, or even within a 15-20 km radius. Most of the OEMs prefer this only, so this new expressway (Kundli bypass, Haryana) will cater the traf-fic from north moving towards industrial area. Infrastructure will be ready soon but it is still important to be placed closer to the parent unit. Till that doesn’t happen, warehousing is an option to meet time slots.

Nabeel A Khan & Jagdev Kalsi

“India is better than Europe. We have good buying power; we just need cheaper financial options”Land crisis and power shortage remains a major cause of concern for the automotive manufacturers in the northern regions. However, Chairman, ACMA (Northern Region), Rattan Kapur, instills hope as he says that the highway connecting Gurgaon to Gujarat (NH8) is an industrial potential area and he thinks that in the next five years, it will surely come up if the FDI is allowed.

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Auto Monitor

N O R T H I N D I A 2523 JULY 2012

Automotive lighting and signaling equipments manufacturer, Fiem Industries is in the

process of finalising two joint ventures with Japanese and Korean companies for product diversification. The manufac-turer is planning to diversify into new components like wipers, batteries and control cables. The company has also recently added dedicated plant in Rajasthan for manufacturing painted plastic parts.

The company declined from divulging the details of JV part-ners at this stage because of the non-disclosure agreement.

However, it expects to conclude the deal in a couple of months.

“We are planning for sub-stantial increase in our product range, diversification into new products, enhancing the share of export business. We are expect-ing that the market situation will definitely improve and there is great potential for business in the coming days,” said Director, Fiem Industries, Rahul Jain to Auto Monitor.

The Sonepat-based com-ponent maker has diversified product range and manufactures LED lamps, LED home light-ing, LED panels, solar lantern, multi-function flash lights, LED information display panels for railways, metro, state transport buses, and taxies etc. Fiem is also

looking at cutting a high chunk of revenue from the exports mar-ket and it is setting up a new plant in Thailand.

Fiem claims to have no impact of the sluggish market because its major business comes from the two-wheeler industry, which has growing quite well. It has all eight manufacturing units under full capacity utilisation.

“We have been having about 25 percent CAGR and in the FY12 we had a turnover of about `585 crore. We anticipate a growth projection to the tune of 25-30 percent in coming years.” point-ed out a senior official from the company. Fiem is OEM suppli-ers both in India and abroad and currently get around three to five percent of revenue from exports.

Exide Industries is look-ing to renew its focus on the replacement mar-ket to achieve higher

realisation and achievement scale. It has earmarked capital expenditure plans for the cur-rent financial year at around `270 crore. The company pointed out that the prevalent depressed conditions in the automotive OE segment have eroded the beneficial impact of the high-er sales volume achieved in replacement market.

“Being a significant player in the automotive OE business, any negative swing in auto sector is a matter of concern for us. Still we have been able to modestly improve its overall margin lev-els,” said Managing Director and Chief Executive Officer, Exide Industries, TV Ramanathan in a statement.

The company’s penetration strategy into the replacement market for commercial vehicles and tractor segment is paying off and sales grew by 14 per-cent. Among other segments, motorcycle battery sales showed significant growth, improving 27 percent in volume terms.

“To cater to the increased demand for our motorcycle cus-tomers, we are going to start production at our new motorcy-cle battery manufacturing plant at Ahmednagar in Maharastra,” he said. The company’s volume growth in the four-wheeler bat-tery division was 10 percent, and the volume growth of industrial batteries was 19 percent for the

quarter. The company’s motor-cycle battery business continued with its improved performance showing 28 percent volume growth. Price of lead continued to remain under check in the international markets during the period under review. However, the depreciation of rupee vis-a-vis dollar negated most of the advantages.

The company’s turnover during the last quarter rose by 25 percent to `1,551 crore. The profit from operations during the same period at `205 crore rose 10 percent sequentially and three percent as compared to the corresponding period of the pre-vious fiscal.

“The Indian market for bat-teries across segments is fast maturing and customers are becoming more quality rather than price conscious. This posi-tive trend will continue and gain momentum in future to help technology focussed companies like Exide Industries,” he added.

During the current financial year, the company’s automotive battery SBU showed a growth of 28 percent and the industrial battery SBU showed a growth of 26 per cent in value terms. The growth in value terms far out-strips the growth in unit terms in all the segments.

The Exide board also approved in the acquisition of the share-holding in Leadage Alloys India, a lead smelting unit, where it pres-ently holds 51 percent stake. With such an acquisition, it would have two wholly owned smelting units for captive consumption to cater to its requirements of lead and lead alloys.

As a North India-based company, what are the chal-lenges and advantages that you you face?

Even though our headquar-ters are situated in Northern Part of India but actually we

have four manufacturing facilities in Northern India and four manufacturing units in Southern India, located in Haryana, Rajasthan, Himachal Pradesh, Tamil Nadu and Karnataka. This only gives advantage to our customers as we have our units situated close to their facilities, which will enable us to offer them just-in-time delivery.

What kind of trend do

you see coming in the lighting industry?

Going forward, in place of incandescent lamps, we see LED-based lamps being pre-ferred for both interior and exterior application. Besides, HID-based lamps for head lamp applications are also in use. It is expected that the usage of such components in the Indian

car industry will boost the growth because of perform-ance efficiency, reduced power consumption, high reliability, longer life, ecofriendly etc.

Input material costs are ris-

ing. What are the steps you are taking to be cost competitive?

The increased costs of raw materials and continuous-ly increasing exchange rates have put us in a dangerous sit-uation. We are making efforts to control our costs through value engineering, developing indigenous sources for supply of components, improvised manufacturing process con-trol, automation etc. However, the situation is precarious and quite alarming for which, we will look upon our esteemed customers for their help to cover the increased costs.

Fiem signs two new JVs Exide to renew focus on aftermarket Nabeel A Khan

New Delhi Our Bureau

Mumbai

S Narayanan, Head (Commercial & International Operations), Fiem

Auto Monitor

C O R P O R A T E2623 JULY 2012

Ford India has expanded its engine production capacity in its Chennai plant to 340,000 units

per annum. Ford India, wholly-owned subsidiary of Ford Motor Company, was earlier producing 250,000 engines at its Maraimalai Nagar plant near Chennai. With this expansion, the company can manufacture additional 80,000 diesel engines and taking the total diesel engine capacity to 160,000 units annually. The demand for diesel engine

vehicles has been growing in the last few months and the increased capacity is sure to help meet that demand. Ford India’s President and Managing Director, Michael Boneham said, “In the first quarter of this year, we had some constraints in meeting the surging demand and the waiting period stood up to 90 days. With the help of this capac-ity expansion of our engine plant, we will reduce the waiting period to two-three weeks.”

For expanding its engine plant, the company has invested around

`396 crore. In this, most of the investment has gone in creat-ing infrastructure like a flexible crankshaft production unit, flexi-ble cold and hot test benches, and a dynamometer test facility. “We are at an interesting phase of growth with the markets demanding swift responses from manufac-turers, and I am proud to say that with this plant’s amazingly flexible production lines of both petrol and diesel engines, we are well-poised to move quickly,” Boneham said.

Single Flexible ProductionThe Chennai plant is the first

Ford facility to feature single flexible production line man-ufacturing of both petrol and diesel engines. It is also the first Ford plant to run a flexible crank shaft production line producing crank shafts for petrol and die-sel engines. With this capacity extension of the engine plant, the car maker will strategically position Chennai as a regional hub for small engines.

Commenting on the advan-tages of the flexible production, Boneham said that the flex-ible single crank line that can produce both diesel and petrol

engines. Later if the custom-er rolls back to petrol, we can respond to them immediate-ly. But it will be difficult for the manufactures to respond imme-diately, if there is a huge gap in the government policies.”

Currently, the plant manufac-tures 17 variants of petrol and diesel engines (12 Duratec petrol engine variants and five Duratorq diesel engine variants), 40 percent of which, are being exported. The 1.6 TiVCT, 1.4 HC and Duratorq engines will be exported to markets such as South Africa, Thailand and Taiwan.

Our Bureau Chennai

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Ford India expands engine plant by 36 percent

Flexible TestingThe facility is equipped with a fully flexi-

ble Cold test, Hot test and Dynamometer test facility for petrol and diesel engines. The Cold test helps in enabling early detection of defects using signature analysis and carbon fuels are not used. In the Hot test, engine is fuelled and tested and leaks are also tested with the help of UV lights. The IDS (Integrated Diagnosis System) are also used to diagnose the faulty engines.

Ford India commenced producing engines from its Chennai plant from 2008 with an ini-tial capacity of 60,000 units. Later in January 2010, Ford India expanded its engine capacity to 250,000 units for producing both petrol and diesel engines. Recently the company’s Power Train facility rolled out its 400,000th engine within just four years of its existence.

Future PlansThe EcoSport SUV displayed at the Auto

Expo in January this year will come in both petrol and diesel variants. The company is contemplating on introducing EcoSport in both diesel and petrol variants in India.

According to Ford, EcoSport will be a ‘growthpad’ for the company in compact SUV segment in India and it will also be exported. The new product is expected to be rolled out in first quarter of 2013. Boneham said, “We are not present in certain growth segments in India, the compact SUV will be our growthpad in India and we would like to see at least 80 per-cent of localisation for the new SUV.

The plant is the first Ford facility with a single flexible production line manufacturing petrol & diesel engines, and

first to run a crank shaft production line

producing crank shafts for petrol &

diesel engines

(L) Flexible Manufacturing Engine Line (R) Michael Boneham, President & MD With The 400,000th Engine

(Above) Engine Machining Line (Below) Assembly Line

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Auto Monitor

G L O B A L W A T C H2823 JULY 2012

Ford puts the brake on 10K Escapes

Ford Motor Co is recalling more than 10,000 rede-signed 2013 Escape SUVs because mispositioned

carpet padding may lead to inter-ference with braking.

The recall covers 8,266 Escapes in the US and 2,193 in Canada. The Escapes being recalled were built at the Louisville Assembly Plant from March 8 through June 7. The redesigned Escape went on sale in June and is a key vehicle for the Dearborn automaker. Ford plans to add a third shift in Kentucky by September to meet additional demand for the vehicle.

Ford said in early June, an employee noted the space between the brake pedal and the centre console left-side trim panel, which may result in the driver contacting the edge of the brake pedal while transferring the foot from the accelerator to the brake pedal.

Ford said the issue could increase braking distance but says it has no reports of the prob-lem happening with customers. Owners were notifies recent-ly. Ford dealers will remove the carpet padding and replace the left-side console trim panel with

a new panel that has a new sur-face contour.

Ford spokeswoman Marcey Evans Zweibel said recently that the recall also covers “a few hun-dred” Escape vehicles in Mexico. No vehicles outside North America are affected. She said no reports or complaints from cus-tomers have been received.

In June, Ford had its best ever month for Escape as it offered incentives to clear out 2012 Escape SUVs. Sales were up 28 percent to 28,500 in June. “The new 2013 Escape is off to a very

strong start, with vehicles sell-ing on dealer lots in less than five days,” said Ford Vice President for US Sales, Service and Marketing, Ken Czubay in a statement earlier this month.

Ford sent the National Highway Tra f f ic Sa fet y Administration notice on July 2 in a letter that it was recalling the vehicles. But the notice didn’t show up on a government website for more than 10 days.

Separately, Ford said it is recalling 783 2012 F-650 and F-750 medium-duty trucks built

at an Escobedo Assembly plant in Mexico. The clear and black primer may be missing on wind-shields that may result in an insufficient bond between the glass and cab—and could result in the windshield separating from the vehicle. Ford dealers will inspect and replace or rein-stall the windshields.

Ford said last year it is mov-ing production of the Ford F-650 and F-750 from Mexico to its Ohio Assembly Plant in Avon Lake. Ford has built the medium-duty trucks at its decade-old Blue Diamond Truck LLC joint venture between Ford and Navistar International, which builds the Ford F-650 and F-750 trucks in Mexico.

NHTSA probes Escape, Mazda for throttle issue

The National Highway Traffic Safety Administration (NHTSA) opened an investigation recently into 730,000 Ford Escape and Mazda Tribute SUVs

for possible unintended acceleration, after an Arizona crash in which, a 17-year-old girl died in January.

In December 2004, Ford recalled 2002-04 470,000 Escapes, describing an accelerator cable assembly defect that could cause the throttle to stick. That same month, Mazda, which sold a nearly identical vehicle, recalled 121,000 2002-04 Tribute SUVs.

Ford formerly owned 33.4 percent of Mazda before it started in 2008 to reduce its involve-ment. It now has an ownership stake of 3.5 percent. Ford sent dealers an updated repair procedure in October 2005, with updated illus-trations and a warning to help prevent damage to the speed control cable while replacing the accelerator cable. Mazda did not issue a simi-lar notice.

However, by that time, nearly 320,000 Escapes from the 2002-04 model years already were fixed, and their owners never were informed of the updated procedure. The 2002 Ford Escape that crashed in Payson, Ariz., kill-ing Saige Bloom, was fixed in January 2005, before the repair update.

NHTSA has been investigating the crash since early this year. It obtained the police report and has sought additional information from the teen’s family. “The defective acceler-ator cable caused high idles, but the damaged cruise control cable caused far worse open-throttle accelerations by breaking the cruise cable protective guide, which allowed the connector end of the cable to jam against the engine cover,” said Executive of the Centre for Automotive Safety, Clarence Ditlow recently to Ford CEO, Alan Mulally.

Mazda North America said it is “cooperat-ing with NHTSA and will work with them to evaluate this situation.” NHTSA has 99 reports alleging incidents of stuck throttles in 2001-04 Ford Escapes and Mazda Tributes with V6 engines.Of the total, 68 reports are from Escape owners; 31 are from owners of model year 2001 through 2004 Tributes. Thirteen crashes and nine injuries were reported. Escapes from the 2002 model year have been the subject of eight previous NHTSA investi-gations, according to the agency’s database. Sudden unintended acceleration made head-lines in 2009 and 2010 when Toyota Motor Corp. recalled more than 10 million cars worldwide for sticking accelerator pedals and pedals trapped in f loor mats.

VW CVs achieves 3.7% growth

Vo l k s w a g e n C o m m e r c i a l Veh icles ha s delivered 270,000

units worldwide by the end of June. Compared to the cor-responding period last year (January-June 2011: 260,300 vehicles), this represents an increase of 3.7 percent.

Global customer deliver-ies of the Amarok went up by 24.8 percent to 36,400 vehi-cles, while Crafter deliveries rose by 38.7 percent to 23,900 vehicles. Deliveries of the T5 series increased by 1.3 percent to 81,500 units and Caddy went down by 2.5 percent to 78,100 vehicles. In Western Europe, deliveries of the brand from January to June 2012 went up by 1.9 percent to 144,800 vehi-cles, and in Eastern Europe rose by 29.2 percent to 21,000 vehicles. Vehicle deliveries in Europe as a whole increased by 4.7 percent to 165,800 units and in South America, the brand delivered 1.8 percent fewer vehicles to customers, handing over 67,700 vehicles .

Ford dealers will remove the carpet padding and replace the left-side console

trim panel with a new panel that has a new surface contour

Auto Monitor

G L O B A L W A T C H3023 JULY 2012

Fire risks, rear seat issues smokes Porsche, Nissan to order recalls

Porsche AG and Nissan Motor Co are issuing new recalls to address concerns of fire risks and

faulty rear seats. The German lux-ury automaker said it is recalling 270 vehicles in the United States to address fire concerns after 37 incidents have been report-ed worldwide. Porsche said the turbine wheel of a turbocharger may fracture because of a cast-ing defect, which will lead to a decrease in performance.

If the driver doesn’t stop, the damage may intensify and the turbine shaft may fracture. If the fractured shaft moves out

of a bearing, oil may be drawn into the exhaust system, which could result in smoke and pos-sible fire. The recall covers some 2012 Panamera Turbo S, 2011-12 Panamera with optional Turbo Kit and 2012 Cayenne with optional Turbo Kit models.

Porsche said the first report of a fire was in Syria in October. During its investigation, it learned that a second incident had occurred in August on a race-

track. After an investigation, the first defects using computerised “X-rays” of turbine wheels were discovered in June.

As a result, Porsche halted pro-duction and delivery of the three models last month. The titanium-aluminium alloy turbine wheels in the turbochargers were dis-continued, and a new wheel with a different alloy material is being used. To date, there have been 37 failures reported worldwide, including three in the US The first US fire was reported on June 26.

Porsche dealers will replace the turbine wheels in the turbocharg-ers with new ones. Nissan said it is recalling 11,076 2012 Juke crosso-vers built between February and May because of an incomplete weld. The rear seat back striker may separate in a crash.

Nissan said it discovered the problem during testing and immediately corrected it in May. But it continued to investigate to discover whether a recall was necessary. The automaker will replace the seatback strikers with new ones.

Nissan said it discovered the problem

during testing and immediately corrected it in May. The automaker

will replace the seatback strikers

with new ones

Nissan Motor GB has signed an exclu-sive three-year deal with hand tools

expert Stanley and leading power tools brand Dewalt for 13 Nissan Navara 4x4s for use by their retail, trade and road-show teams.

The black 2.5dCi diesel Navara pick-ups have been specially adapted for the tool brands and feature fitted inter-nal racking, secure shelving and product storage space as well as space for branding, demonstra-tion tents and merchandising materials.

Stronger PresenceStanley and Dewalt will be

using the branded Navaras for a variety of experiential activities to promote a stronger presence at trade counters, dealer days and national trade shows. The initiative forms part of Stanley and Dewalt’s strategic aim to engage with trade professionals and highlight the benefits their products offer.

The brands will appear at many key Screwfix stores

across the UK, as well as product demonstrations at B&Q and Homebase stores for trade professionals and enthusiastic DIYers.

Corporate Sales Director at Nissan Motor GB, James Douglas said, “The partnership with Stanley and Dewalt ena-bles us to work with two of the best brand names in the DIY sector. It will help further build Nissan’s strong reputation for serving the business commu-nity with its extensive range of vans and pick-ups.”

General Manager at Stanley Black & Decker UK & ROI, John Cowley commented, “We are very excited about getting the newly Stanley and Dewalt branded Nissan Navaras on the road. Not only are these vehicles ideal for our sales and roadshow teams in terms of providing ample storage, the branding on the vehicles is eye-catching, which will help us to create a stronger brand impression at demonstration days. The three brands form a great partnership.”

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Nissan carves business partnership with Stanley, Dewalt

Auto Monitor

T E C H N O L O G Y3223 JULY 2012

It is not very fun to ride a bicycle on a street plas-tered with cobblestones. At least the bike has a

saddle seat filled with sili-cone. That lessens the shocks and bumps, and counteracts some of the annoying vibra-tions. In a professional‘s eyes, the material in the saddle is an “elastomer”— a material that is yielding and malleable, like a rubber band. Engineers at the Fraunhofer Institute for Structural Durability and System Reliability LBF in Darmstadt are now working on the next generation: They are designing components made of elastomers that actively respond to unwanted vibrations, and dampen them more effectively than ever before.

Elastomers have been used in engineering for dec-ades, such as shock absorbers in mechanical engineering or in the bearings for vehicle engines. Until now, they have had a purely passive effect on vibrations or impact collisions. It would be more effective if the elastomers were to respond proactively and counteract vibrations. In the same way, a tennis player slows down the ball on a drop shot by pulling back on her racket, an active elastomer draws out the energy from the vibration in a targeted manner by swinging in precise push-pull mode. Theoretically, this would make the vibration dissipate completely.

Elastomers Vibrate Under Alternating Current

There are already materials that are good for this purpose. “They are called ‘electroac-tive elastomers’,” explained LBF Scientist, William Kaal. “They are elastic substances that change their form when exposed to an electrical field.” The trick: apply an alternating current, and the material starts to vibrate. If there are smart electronics controlling the elastomers, making them vibrate precisely in push-pull mode, then unwanted vibra-tions in equipment or an engine will dissipate for the most part. To demonstrate that the princi-ple works, the Darmstadt-based researchers created a model. Smaller than a pack of cigarettes, it comprises 40 thin elastomer electrode layers. The experts call it a “stack actuator”.

“The challenge was the design of the electrodes with which, we apply the electric field to the elastomer layers,” as Kaal‘s col-league Jan Hansmann clarified. Usually, electrodes are made out of metal. However, met-als are relatively rigid, which impedes the deformation of the elastomer. Fraunhofer experts deliver an elegant solution to the problem: “We put microscopic-sized holes in the electrodes,” said Hansmann. “If an electric voltage deforms the elastomer, then the elastomer can disperse into these holes.” The result is an actuator that can rise or fall a few tenths of a centimeter upon com-

mand—several times a second, in fact. To demonstrate these capabilities, William Kaal attach-es a small mechanical oscillator to the device. When he turns it on, the oscillator begins shak-ing powerfully—the actuator has hit its resonance frequency perfectly. On the other hand, the instrument can actively absorb vibrations: If the oscillator is tapped by hand, it quickly settles down when the actuator vibrates in push-pull mode.

The LBF engineers believe one potential application for their stack actuator can be found in vehicle construction. “An engine‘s vibrations can be really disruptive,” said William Kaal. “The vibrations are channeled through the chassis into the

car‘s interior, where the passen-gers start to feel them.” Of course, engines are installed meticulous-ly, and yet: “Active elastomers may help further reduce vibra-tions in the car,” Kaal asserted.

When Vibrations Turn Into Power

The function of the stack actu-ator can also be reversed: rather than produce vibrations, the device can also absorb vibrations from its surroundings to produce energy. The principle works, and researchers have proven it. As they placed an electromagnetic oscillator on their stack actuator, it converted the vibrations into power. “That would be of inter-

est, for example, if you wanted to monitor inaccessible sites where there are vibrations but no power connections,” Jan Hansmann believed—the temperature and vibration sensors that monitor bridges for their condition.

The stack actuator tech-nology has been largely perfected: “The manufacturing process can be readily automat-ed. That is important for industrial mass production,” thinks Kaal. Nevertheless, endurance tests still have to show what the long-term viability of the intelligent actua-tors is like. Ultimately, they must be able to withstand harsh envi-ronments of the kind found in the engine compartment of a car.

Artificial muscle as shock absorber

Elastomers are elastic substances

that change their form. When spiked with an alternating current,

the material starts to vibrate. The smart

electronics controlling the elastomers can make them vibrate precisely in push-pull mode, and the

unwanted vibrations in the equipment will dissipate

Engineers are working on intelligent materials that can diminish vibrations and extract power from the environment. These electro-active elastomers could dampen annoying vibrations in a car, for example, or supply wireless power to sensors in otherwise inaccessible places.

Artificial Muscle As Shock Absorber

Auto Monitor

G L O B A L W A T C H3423 JULY 2012

Federal-Mogul Corporation has devel-oped a lightweight, high-strength alumin-

ium piston that enables engine manufacturers to increase the power density and efficiency of boosted, direct injected gaso-line engines. The new piston to equip next generation gasoline and natural gas engines and the design helps to achieve higher power, improved emissions and fuel economy. The company will commence its series production later this year in a new European passenger car, where it contrib-utes to significant gains in fuel economy and reductions in CO emissions.

“Federal-Mogul’s innovative Advanced Elastoval II piston is lighter and better equipped to help deliver the higher power outputs our customers need to improve the CO emissions and fuel economy of gasoline pow-ertrains,” said Vice President,

Technology and Innovation, Federal-Mogul Powertrain Energy, Gian Maria Olivetti. “The application of our expertise to key tech-nologies that enable the development of the next generation of downsized pow-ertrains, aligns with Federal-Mogul’s strategy for sustain-able global profitable growth.”

The new Advanced Elastoval II pis-ton is lighter, delivers increased power outputs and can withstand the higher pressures that occur late in the combustion cycle of highly charged downsized engines. In the coming years, spe-cific power outputs will increase from current levels of around 95 kW/L to 130 kW/L. Peak combus-tion pressures will rise from 110 Bar to 130 Bar and even 160 Bar in engines using alternative fuels like E100, Compressed Natural Gas (CNG) or others.

The Advanced Elastoval II piston architecture is up to 20 percent lighter than previous generation pistons. Whereas previous wall sections meas-ured four mm, the latest piston achieves wall sections as thin as 2.5mm.”Any reduction in wall thickness requires the entire pis-ton structure to be redesigned,” said Chief Engineer Product Engineering, Federal-Mogul Powertrain Energy, Arnd Baberg. “Advances in piston design, analysis tools and testing at Federal-Mogul’s global develop-ment centres have led to a series of new features that achieve a bet-ter stress distribution, enabling a weight optimised design.”

The complex curved side

panel forms of the Advanced Elastoval II piston are inclined in two planes and are closer together at the top to support the piston crown, using mul-tiple weight-reducing pockets and crown reinforcing ribs. The piston pin bosses are curved towards the side panels and boss distance is reduced to the minimum possible. The pis-ton’s design uses asymmetric geometries to enable maximum weight reduction.

All Federal-Mogul Elastoval pistons use different skirt widths for the thrust and non-thrust sides of the piston, to achieve the best compromise of light weight, superior NVH and scuffing per-formance. Advanced Elastoval II reduces skirt width to 50 per-cent of bore diameter on the thrust face and just 45 percent of the bore on the non-thrust face without compromising NVH or increasing scuffing risk. Several vehicle manufacturers are vali-dating the Advanced Elastoval II piston, with the first sched-uled for series production later this year.

Federal-Mogul recently signed an agreement to purchase the Beru spark plug busi-

ness from BorgWarner Inc. The purchase includes spark plug manufacturing sites at Chazelles sur Lyon, France and Neuhaus, Germany. The acquired units will add approx-imately $80 million annualized sales and increase Federal-Mogul’s annual spark plug production capacity to more than 350 million per year. The two locations employ approxi-mately 500 people.

The newly acquired sites cur-rently manufacture the product line of Beru branded spark plugs sold to European original equipment manufacturers and the automotive aftermarket. Federal-Mogul will integrate the acquired facilities along with related technical and commercial resources into its global ignition business, which includes Champion ignition product line.

The Champion brand port-folio includes spark plugs for combustion engines includ-ing small garden equipment, motorsports, automotive, com-mercial vehicles and industrial machinery. The company oper-ates six manufacturing sites and three technical centres within its ignition product line at facilities in the US, China, India and Mexico. It sells spark plugs and other ignition prod-ucts to several leading global automotive manufacturers and to aftermarket distributors and retail outlets in more than 90 countries.

Federal-Mogul’s ignition business has continued to grow in original equipment, indus-trial and aftermarket segments, especially in the last five years, as the company has introduced new spark plug designs fea-turing platinum and iridium electrodes, high-energy insu-lators and smaller diameter plug bodies.

For commercial and indus-trial engines, the company has introduced a line of specially designed spark plugs capable of burning a wide variety of alternative fuels. The company has also introduced an innova-tive Advanced Corona Ignition System (ACIS) that is expected to help automakers improve fuel economy and reduce emis-sions by enabling combustion of previously unattainable lev-els of lean and highly-diluted fuel mixtures. ACIS is a future specialised ignition technology for highly-loaded engines and will be positioned along with conventional and premium spark plugs as part of Federal-Mogul’s core portfolio of engine technologies serving the global powertrain market.

Federal-Mogul Corporation is a supplier of powertrain and safety technology and inno-vation and serves the world’s foremost OEMs of automotive, light, medium-, heavy-duty, aerospace, marine, rail and off-road vehicles; and industrial, agricultural and power-genera-tion equipment. The company is headquartered in Southfield, Michigan, United States and employs 45,000 people in 34 countries.

Federal-Mogul pistons higher outputs Federal Mogul sparks business with Borgwarner

Federal-Mogul’s innovative Advanced

Elastoval II piston is lighter and better equipped to help

deliver the higher power outputs our customers

need to improve the CO emissions and fuel economy of gasoline powertrains—Gian Maria Olivetti, Vice

President, Technology and Innovation, Federal-

Mogul Powertrain Energy

Auto Monitor

G L O B A L W A T C H3623 JULY 2012

Škoda reported a n increase in worldwide deliveries to customers by 8.4 percent to more

than 493,000 units from January through June (1st half of 2011: 454,700). At the same time, the brand posted its best ever deliv-eries figure for June at 87,400 cars (June 2011: 81,300) and its second-best monthly figure ever. The brand outpaced the mar-ket in June 2012 and in the first half of 2012 in almost all sales regions.

Growth Course“Škoda has continued on its

growth course in the first half of the year despite an increasingly

difficult business climate,” said Škoda CEO, Winfried Vahland. “We outperformed the mar-ket in almost all sales regions, thus improving our favourable position. The second half of the year, however, will not be easy. We are closely watching the markets, and we think there will be a significantly stronger headwind.”

Vahland added, “Our model offensive has started at just the right time. The Škoda Rapid, our new compact saloon which will be launched in Europe in autumn of 2012, will play an important role in this connection.”

Škoda made a strong show-ing in the markets in Western Europe, some of them marked by significant decline. As early fore-casts showed the overall market shrank by almost five percent in June, Škoda slightly increased sales by 1.2 percent to 35,600 units (June 2011: 35,100).

The largest increases in June were in the markets of Switzerland (up 31.7 percent), Austria (15.5 percent), Germany (10.5 percent) and Great Britain (9.8 percent).

Europe In Switzerland, sales

grew to almost 1,900 units, setting a new monthly sales record, while market share grew to around 5.6 percent in six months. In Germany, Europe’s largest market, Škoda sold over 14,600 cars in June 2012. At 11,600 and 10,700 units sold respec t ively, t he Škoda Octavia and the Škoda Fabia were the most popular mod-els in Western Europe. For the first half of 2012, Škoda ‘s sales in Western Europe, at around 195,400 units, were down only slightly, retreat-ing by 0.7 year on year. However, as preliminary forecasts said the overall market in Western Europe was down by 7.5 percent in the same period, Škoda’s mar-ket share increased to more than three percent. At 21.2 percent, Škoda posted strong double-dig-it growth in Eastern Europe in June 2012. The brand sold almost

12,600 cars as against around 10,400 in June of last year. Russia retained its rank as the region’s strongest market, with Škoda deliveries there rising 36 per-cent to a new monthly high of almost 9,600. Škoda’s growth was almost triple that of the overall market, which grew an estimat-ed 13.7 percent. Around half of the brand’s sales involved the Octavia, which posted 19.3 per-

cent growth at more than 4,500 units. Deliveries of the Škoda Yeti in Russia increased by more than 180 percent, topping 1,900. The Superb also benefited from rising popularity with customers in Russia, deliveries shooting up 173.3 percent. In the first half of 2012 Škoda grew by 31.1 percent in Eastern Europe as deliveries topped 65,200 as against 49,700 Škoda sold in the first half of 2011.

Škoda Auto deliveries up by over eight percent

Škoda has continued on its growth course in the first half of the year despite an increasingly difficult business climate–Winfried Vahland,

Škoda CEO

Market ShareŠkoda’s deliveries were also up in Eastern

Central Europe in June, rising 2.7 percent to almost 11,700 (June 2011: 11,400). This means that almost one car in five sold in Eastern Central Europe in June 2012 was a Škoda. The brand’s Eastern Central European deliveries in the first half of 2012 were up 4.6 year on year to more than 66,600 units (January through June 2011: 63,700). Deliveries to customers in the Czech Republic, the brand’s home mar-ket, were up 7.6 percent to over 5,800 units (June 2011: 5,400). This means Škoda strongly bucked the trend as the overall market shrank by five percent. Škoda’s share of the market in the Czech Republic reached 37.9 percent in June 2012. The brand also grew in Slovenia (up 16.6 percent) and Croatia (up 6.2 percent). At more than 4,900 units delivered, the brand’s most popular model in Eastern Central Europe in June was the Škoda Octavia, followed by the Škoda Fabia at 3,300 and the Škoda Roomster at almost 1,100 units.

Škoda also continued on its growth course in China with deliveries growing by 5.5 percent to 20,100 (June 2011: 19,100) in June 2012. Total sales in the first half of 2012 were more than 120,700, up 7.6 percent year on year (January through June 2012: 112,200). Škoda’s by far most popular model in China in June was the Škoda Octavia, as it had been, advancing by 20.3 percent to almost 12,400 units delivered (June 2011: 10,300).

IndiaSales advanced briskly in India, with Škoda

posting a 39.3 percent increase to just under 3,200, strongly outperforming the market which is estimated to have grown by 15.4 per-cent. The brand also outperformed the market across the entire first half of the year as sales rose 40.1 percent year on year, reaching a total of around 20,500 (January-June 2011: 14,600). The Rapid, the brand’s new compact saloon, which has been selling well in the local market as an Indian variant since late 2011, accounted for almost two thirds of Škoda’s sales in India. Overall, almost 2,000 customers took delivery of an Indian Rapid in June. Deliveries of the model totalled over 11,800 in the first half of 2012.

In the United Kingdom, it’s a record start for June YTD. Overall sales are up 3716 on 2012. Order Take is up 5721 over 2011 and Market share is up 0.24 percent. ŠKODA is also out-performing the market by 8.8 percent for retail, 19.2 percent for fleet and 13.9 percent market.

Škoda also posted gains in other markets in June 2012 as sales rose 73.7 percent to almost 1,300 units in Israel. Deliveries in Turkey were up 29.3 percent, topping 800 units. In Australia, the brand advanced by 87 percent to far more than 400 units sold.

Auto Monitor

G L O B A L W A T C H3823 JULY 2012

Vehicle checks are fun-damental to road safety. More than five people die on Europe’s

roads everyday in accidents linked to technical failure. Thus, the European Commission has adopted new rules to toughen up the testing regime and widen its scope recently.

Technical defects contribute heavily to accidents. They are responsible for six percent of all car accidents, translating into 2,000 fatalities and many more injuries yearly. Eight percent of all motorcycle accidents are linked to

technical defects.The main problem is that there

are simply too many vehicles with technical defects on the road. Recent studies from the UK and Germany indicate that up to 10 percent of cars at any point in time have a defect that would cause them to fail the tests. Moreover, many technical defects with seri-ous implications for safety (such as ABS and Electronic Stability Control) are not even checked under current rules.

Existing EU rules setting mini-mum standards for vehicle checks date back to 1977, with only minor updates. Cars, driver behaviour and technology have developed a lot since then.

New ProposalsThe new proposals aim to save

more than 1,200 lives a year and to avoid more than 36,000 accidents linked to technical failure.

Vice President, Siim Kallas responsible for Transport said, “If you’re driving a car which is not fit to be on the road, you’re a danger to yourself and to everyone else in your car—your family, your friends, your business colleagues.

What’s more, you’re a danger to all the other road users around you. It’s not complicated; we don’t want these potentially lethal cars on our roads.”

Key Elements

for scooters and motorbikes. Motorbike and scooter riders, particularly young riders, are the highest risk group of road users

periodic roadworthiness tests for old vehicles. Between five and six years, the number of serious accidents related to technical failure increases dramatically (see graph in MEMO/12/555 attached)

tests for cars and vans with exceptionally high mileage. This will bring their tests in line with other high mileage vehicles such as taxis, ambu-lances etc

vehicle tests by setting com-mon minimum standards

and inspectors

-ponents subject to mandatory testing

fraud, with registered mileage readings

common EU wide minimum standards for vehicle checks, with Member States free to go further if appropriate

HistoryExisting EU rules on vehicle

checks date from 1977, they set minimum standards for vehicle checks and have only been mar-ginally updated since. There are three main pieces of legislation:

Directive 2009/40/EC fixes minimum standards for the periodic roadworthiness tests of motor vehicles—these are the

by law. The Directive applies to passenger cars, buses and coach-es and heavy goods vehicles and their trailers, but not to scooters and motorbikes.

Directive 2009/40/EC is com-plemented by Directive 2000/30/

-ment to control the technical

state of commercial vehicles in between periodic inspections (with technical roadside inspec-tions). These are additional on-the-spot roadside checks for commercial vehicles.

Directive 1999/37/EC on registration documents for vehi-

for the issuing of registration certificates, their mutual rec-ognition and the harmonised minimum content of vehicle registration certificates.

More stringent vehicle testing drives on the cards

Iraq orders 250 Mercedes-Benz Actros

IIndustry (SCAI) recently purchased 250 Mercedes-Banz trucks to assist in recon-struction efforts in the country. The last

of the ordered vehicles were delivered to SCAI recently. “We’re very pleased to help with

Mercedes-Benz Actros trucks to SCAI,” stat-ed Head of Mercedes-Benz Trucks, Hubertus Troska. “Our vehicles are perfect for use in rough terrain, where they clearly demonstrate

This was the first time that Mercedes-Benz Trucks has supplied vehicles to SCAI. The con-tract between Daimler and SCAI, which covers

represented a clear commitment to the coun-try’s reconstruction efforts when it was signed in Baghdad in February 2010. The delivery of the 250 Actros trucks marks a further impor-tant step toward this goal.

The 250 Actros were manufactured at the Mercedes-Benz plant in Wörth and delivered

construction applications. The order can be broken down as follows: 100 Actros 3331K dump truck chassis and 150 Actros 3340S tractors for carrying water and fuel tanks or similar semi-

powerful Euro II V6 engines and a heavy-duty 16-speed transmission.

If you’re driving a car which is not

fit to be on the road, you’re a danger

to yourself and to everyone else

in your car—your family, your friends, your

business colleagues—Siim Kallas, VP

The 250 Actros were manufactured at the Mercedes-

Benz plant in Wörth and delivered to Iraq as complete vehicles. SCAI is equipping the trucks

onsite with equipment for various construction applications

Mercedes-Benz Actros

Auto Monitor

G L O B A L W A T C H4023 JULY 2012

Seat has recently intro-duced Leon, which has been redesigned from the ground up; the third

generation Leon is packed full of high-end technology, utilising an upgraded chassis, advanced infotainment systems and driv-ing aids.

The availability of full-LED headlamps for the new, third generation Leon is the first in the family hatchback class. “The new Leon condenses all the strengths of the Seat brand more than ever before. It brings quality and tech-nologies from the full-size class

into the compact segment. The Leon is a step in Seat’s brand and growth strategy. It will be launched towards the end of this year as a five-door and will subsequently grow with further variants into a fully-fledged fam-ily,” said President of Seat SA, James Muir.

“With the all-new Leon, we have designed and developed a car which perfectly captures the meaning of ‘Enjoyneering’. This mix of design, technology, ath-letic performance and premium quality is certain to seduce exist-ing customers, as well as bringing a new generation of car-buyers to the brand,” he added.

Leon combines a more compact exterior with a more spacious interior. The premium materials and the level of crafts-manship place the Leon squarely at the forefront of the competitive field. Also, it has an average fuel consumption of just 74.3 mpg and a CO2 figure of just 99 g/km.

“The new Leon is an all-new car and opens a new chapter for Seat. It combines Seat’s dynamic new design language with the lat-est technology. Fine details and

precise design, especially in the interior, reflect the high stand-ard of craftsmanship of the new Leon,” explained Vice-President of Research and Development for Seat SA, Dr Matthias Rabe.

Dr Rabe added, “Built on the Volkswagen Group’s MQB shared architecture which benefits from systematic lightweight design, the new Leon offers an impres-sive performance, with low CO2 emissions and fuel consump-tion. In summary, the new Leon provides emotional driving fun, excellent efficiency, a stun-ning design and a high degree of utility.”

DesignAt 4.26 metres long, Leon is

around five centimetre short-er than its predecessor, yet the wheelbase is up by almost six centimetre. This clever pack-aging enables short overhangs and enhances the strong vis-ual presence of the wheels, while giving practical bene-fits such as improved interior space, particularly for rear Seat passengers, as well as in the luggage compartment.

The angular line of the head-lamps is a typical feature of the new Seat design language, while also being integrated into the Leon’s sculptural form. Full-LED lights are available for the first time in the compact class. The new headlamps give an unmistakable look to the front end of the Leon.

From the side, Leon looks like a precisely executed sculpture on wheels. The characteristic, unbroken ‘Línea Dinámica’ runs rearwards over the wheel arches.

It is reminiscent of the tension of a well-trained muscle. The trapezoi-dal C-pillars are characteristic to the Leon, as are the short, upwards-pointing third windows.

Also, its rear end has been intensively modelled; the large logo serves as an opener for the rear hatch. The slightly wedge-shaped rear light clusters highlight the car’s width and are also available in LED technology.

Contd. on page 42

Seat launches new Leon

Bentley enhances presence in Italy

After a strong year in 2011 and a suc-cessful first half of 2012 in Europe, Bentley Motors now seeks to strengthen its presence in Italy. The

new 250 square metre showroom has capac-ity to display up to six cars, and will offer both sales and aftersales services. A specially designed window between the showroom and workshop facilities allows customers to watch any work being undertaken on their car from the comfort of the dealership’s lounge.

Performance & EfficiencyDuring the official dealership opening cer-

emony recently, Bentley also presents the new Continental GT and GTC V8 models in Italy for the first time. Powered by advanced four-litre twin-turbo V8 engines, the new models com-bine effortless performance with class-leading efficiency.

Regional Director Europe Bentley Motors, Guillaume Chabin commented, “Milan has always been synonymous with luxury goods and iconic design, so it is an ideal location for a new Bentley showroom.

Brand Loyalty“The timeless design and exceptional crafts-

manship of Bentley models have attracted many customers to our brand over the years, and with further representation in Italy we see significant potential to increase our sales in the market.”

General Manager Bentley Milan, Luca Marzio Garavaglia added, “Bentley Milan’s location means it is convenient for our clientele based in the city centre while also offering easy access to major road networks for customer test drives. We have made significant investments in both our new facilities and our team of product specialists, so I look forward to welcoming cus-tomers to the showroom and giving them a truly first class Bentley experience.”

The new Leon condenses all the

strengths of the SEAT brand more than ever

before. It brings quality and technologies from the full-size class into

the compact segment—James Muir, President,

Seat SA

Auto Monitor

G L O B A L W A T C H4223 JULY 2012

Interiors The exterior design of the

new Leon continues into the interior, which has a clear, light and uncluttered look. The dash-board is unconventional, with a two-tone design. Moreover, the luggage compartment has a vol-ume of 380 litres, around 40 litres more than the preceding model.

Describing the interiors, Head of Seat Design, Alejandro Mesonero-Romanos said, “We set ourselves the objective of devel-oping an interior which would give an expressive, elegant and welcoming ambience. The qual-ity of the material, the fit and finish and the attention to details is at least as good as you can find in the segment above.”

“The design of the dash-board respects our new interior philosophy, with a strong driv-er orientation. This enhances the ergonomics while giving the design an attractive, sporty feel-ing. The whole has been designed so the new Leon and its driver feel as one.”

Body ShellThe Seat Leon uses a new vehi-

cle architecture that enabled development engineers to posi-tion the front axle 40 millimetre further forward. The results are a longer wheelbase and a balanced distribution of axle load—factors that significantly benefit comfort and sporty handling.

Due to advanced construc-tion techniques and the use of lightweight materials in the body’s manufacture, the over-all weight has been reduced by 90 kilogram compared with the previous version.

DriveLeon will be powered by a series

of powerful and fuel-efficient TDI and TSI engines, ranging from 1.2-two litre. All engines feature direct injection and turbocharging, and have been engineered for low internal friction and fast warm-up. Compared with their respective predecessors, their fuel consump-tion is down by up to 22 percent.

The 1.6 TDI generates 105 PS (104 BHP) and 250 nm (184 lb.ft) of torque. In the Ecomotive version with start/stop system and brake energy recuperation, it returns an astonishing 74.3 mpg on average,

equating to just 99 g/km CO2. The extensively re-engineered two TDI returns a hugely impressive 70.6 mpg in the Ecomotive version, yet develops 150 PS (148 BHP) and 320 nm (236 lb.ft) of torque.

Seat will rapidly expand the engine line-up. Early 2013 will see the arrival of the 1.2 TSI in two versions with 86 PS (85 BHP) and 105 PS (104 BHP); a 1.4 TSI with 122 PS (120 BHP); and at the top of the petrol range, a 1.8 TSI with 180 PS (178 BHP) and a com-bination of direct and manifold injection. The diesel line-up will be augmented by the 1.6 TDI with 90 PS (89 BHP) and a powerful, range-topping 2.0 TDI with 184 PS (181 BHP). It delivers a maximum torque swell of 380 nm (280 lb.ft).

Depending on the engine, transmission options range from five- and six-speed man-ual gearboxes or the renowned six- and seven-speed DSG dual-clutch gearboxes.

ChassisThe chassis’ front suspension

features a MacPherson front axle with sub-frame, while the rear uses torsion beam suspension for engines up to 150 PS (148 BHP). More powerful variants use a multi-link construction that han-dles longitudinal and transverse

loads discretely.The new Seat Drive Profile for

the Leon FR allows the driver to vary the characteristics of the power steering, throttle control and engine sound (FR versions only) via a sound actuator using three modes: eco, comfort and sport. There is also a facility to tailor the settings according to the driver’s preference. The interior ambient LED lighting changes according to the selected setting: white in eco and comfort modes, and red in sport.

InfotainmentIn the new Leon, Seat offers

a full range of up-to-date info-tainment solutions. The basis is formed by the Easy Connect operating system, which controls the sound system entertainment and communication functions, as well as a wide array of vehicle functions, via a touch-sensitive screen in the cockpit.

The entry level is the Media System Touch in the Reference line, which includes a CD radio with an SD card slot, four speak-ers and a five-inch touch screen. Style and FR come with the Media System Colour featuring more in-screen colours and higher quality, with a CD drive and six speakers as standard (eight speakers in the

FR). It connects external devices via Bluetooth, USB or aux-in. Its five-inch colour touch screen also controls vehicle functions.

The Media System Plus systems has a 5.8-inch touchscreen with three-dimensional graphics in high definition, iPod connectivity, an optional DAB tuner, and voice recognition. The system comes with eight speakers. This system incorporates the navigation sys-tem, which also shows navigation information in the colour display between the speedometer and rev counter and can be control-led by voice recognition. The Seat Sound System has a clear, crisp sound reproduction thanks to its 10-speaker and sub-woofer set-up.

Driver Assistance SystemsLeon’s drowsiness detec-

tion feature recognises when the driver is losing concentra-tion and suggests taking a break. Additionally, an advanced cam-era mounted behind the rear-view mirror manages both the Full Beam Assistant, which switches automatically between full and dipped beam, and the ‘Heading Control’ lane-keeping assistant, which makes slight corrections to the electro-mechanical power steering to prevent the driver from crossing over lane markings.

Contd. from page 40

Seat launches...........

BMW unveils Olympic Park Pavilion

The final countdown to London 2012 has begun and BMW Group recently unveiled their Olympic Park Pavilion, expected to draw thousands of visitors

each day of the Games.Conceived by an award-winning British

architecture firm, the BMW Group Pavilion represents a significant architectural addition to the Olympic Park, showing an exciting range of the company’s latest vehicles against the backdrop of the Olympic Stadium and Aquatics Centre. The structure also underlines the com-pany’s longstanding commitment to design and sustainability with an array of individual rooftop pavilions exhibiting current models as well as concept cars of the future.

The Pavilion is light and open, appearing to ‘float’ on the river as water flows down the sides of the structure to create a constantly chang-ing façade, whilst simultaneously accentuating its position on an elevated platform on the Waterworks River.

Also on display are prototype models includ-ing the BMW E-Scooter and the BMW i Pedelec concept—a recently announced concept elec-trically-assisted bicycle, and a new-look Mini Rocketman Concept, a revised version of the original Rocketman concept, first seen at the 2011 Geneva Motor Show. The top deck, com-prising nine individual rooftop pavilions, displays current and future BMW Group vehi-cles including the BMW i3 Concept, the BMW i8 Concept and the new generation BMW 3 Series Touring.

Managing Director, BMW Group UK, Tim Abbott commented, “The role of the Pavilion is two-fold: to explain the support we’re providing as the Official Automotive Partner to the London 2012 Olympic and Paralympic Games, but also to provide a powerful visual symbol of our com-mitment to the highest standards of innovation in design and sustainability. We look forward to welcoming visitors and guests to the BMW Group Pavilion throughout the Games.”

Auto Monitor

G L O B A L W A T C H4423 JULY 2012

Audi is preparing automot ive reta i l for the future and complementing its

dealer network with a new for-mat—Audi City. The first location opens today in London close to Piccadilly Circus. The brand’s entire model line-up is presented fully digitally in a compact space. The efficient use of space facili-tated by this approach allows the four rings to be present in the heart of major international cit-ies. Over the next few years, Audi will secure more of these attrac-tive locations, opening more

than 20 stores worldwide by 2015. In future, Audi City will also play a crucial role in the marketing of new mobility services and elec-tric-drive Audi models.

“Audi City combines the best of two worlds–digital product pres-entation and personal contact with the dealer,” said Member of the Board of Management for Marketing and Sales at Audi AG, Peter Schwarzenbauer. “This new retail format brings us even closer to our customers— geo-graphically, of course, but first and foremost in terms of the quality of our relationship. Audi City offers new freedom for tai-lor-made services and an even more individual contact with the customer.”

Due to the media technology, the vehicle manufacturer now has the ability not only to present its growing model line-up—including all colours, equipment options and functions—in its entirety, but also to offer custom-ers the chance to experience the sheer breadth of the range in full. Visitors can digitally select their vehicle from several hundred million possible configurations and experience it in realistic 1:1

scale on screens that almost fill the entire space.

Moreover, technical details such as the drivetrain, bodyshell or LED light technology can be presented individually in order to make innovations understanda-ble on an intuitive level.

With Audi City, the premi-um manufacturer is responding to customers’ changing needs. “People are placing greater emphasis than ever before on a direct and personal bond of trust with their vehicle brand—espe-cially in respect of the increasing variety of products and avail-able information,” explained Schwarzenbauer. “Thus, with Audi City, we are creating a one-stop-shop for experiencing our brand. It is right in the midst of our customers’ lives, yet seam-lessly connected to the online range offered by the four rings.”

One-Stop ExperienceThis is particularly assured by

the customer relationship man-ager, who will be deployed in future at Audi City locations. This individual will be the customer’s central and consistent point of contact for all needs—from the

first consultation to after-sales and ongoing services. Plus, every Audi City is also connected to an Audi dealership that provides the entire spectrum of Audi AG services as a single-point centre of competence.

With this personalised cus-tomer dialogue and the provision of individual services, Audi City represents a substantial expan-sion of the retail experience. In support of this, Audi AG offers employee training targeted spe-cifically at these urban stores and also supports the dealer in their selection and further train-

ing. Furthermore, employees increasingly have a more broad-based educational background —as IT experts, for instance, who are qualified to explain the dig-ital world of Audi City.

Audi City will also evolve into a meeting place for fans of the brand. The stores will also be used as a dialogue forum for issues outside of core automotive business. For example, following close of daily business, they will play host to round-table discus-sions and exhibitions on issues such as urban development and mobility or on matters etc.

Audi to develop auto retail network in UK—Audi City

Ford partners with Van Excellence

Van Excellence continues to go from strength to strength, as Ford is the latest to become a partner of the scheme. They join other opera-

tors including Mercedes, V W, Nissan, Fiat and Isuzu who are all part of the accredita-tion scheme that encourages high standards of van operation and driving, and combined now takes the ‘market share’ of new van reg-istration to over 50 percent.

Partners As SupportPartners promote the Code of Van

Excellence amongst their customers and encourage its standards to be adopted and followed throughout the light commercial vehicle sector.

“We’re delighted to welcome Ford as a Van Excellence Partner” said FTA Head of Vans and LCVs, Mark Cartwright. “Together with exist-ing partners Volkswagen, Mercedes-Benz, Nissan, Fiat and Isuzu, our manufactur-er partners now represent over half of the UK’s annual registrations. Their support is invaluable particularly as we develop a Van Excellence accreditation scheme for dealers.”

Good PracticesThe FTA scheme was launched in 2010

to promote high standards of van opera-tion and driving by accrediting operators against an industry code of good practice. Accredited members are those who have successfully demonstrated that their f leet management and compliance systems can meet the demanding standards of the Code of Van Excellence, the voluntary code of practice for van f leet operators.

Van Excellence continues to be recog-nised within the industry and continues to grow, as new members who have also recent-ly joined include Carillion Construction, South Devon Healthcare Trust, Daniel Contractors and Corporation of London. Van Excellence was awarded the Best New Service Award at the 2012 Fleet News Awards.

Audi City combines the best

of two worlds–digital product presentation and personal contact with the dealer—Peter

Schwarzenbauer, Member of the Board of Management for Marketing & Sales,

Audi AG

A Perspective Of Audi City

Ford joins other operators including Mercedes, VW,

Nissan, Fiat and Isuzu who are all part of the accreditation scheme that encourages high

standards of van operation and driving

Auto Monitor

G L O B A L W A T C H 4523 JULY 2012

The first half of 2012 has spelled a positive note for the Volkswagen Group. The company has been

reported to have increased vehicle deliveries—a total of 4.45 (January-June 2011: 4.09; +8.9 percent)* million vehicles were handed over to customers worldwide in the period from January to June.

June was equally posi-tive, with deliveries running

at 798,500 (June 2011: 719,400; +11.0 percent)* units. “Deliveries by the Volkswagen Group devel-oped very well in the first half of the year. But that is by no means cause for euphoria. The economic situation, particularly in Western Europe, remains tense and diffi-cult”, Group Board Member for Sales, Christian Klingler said in Wolfsburg recently, and added, “We remain on track and are entering the second half year, which will be altogether more challenging, with confidence.”

The Group brands delivered a total of 1.93 (1.90; +1.8 percent) million vehicles to customers on the overall European market in the first half year. In Western Europe (excluding Germany), 1.01 (1.07; -5.7 percent) million customers took possession of a new vehicle. The Group brands once again reported vigor-ous growth in the Central and Eastern Europe region, handing over 322,900 (253,700; +27.3 per-cent) vehicles to customers there. In its home market of Germany, deliveries by the Volkswagen Group rose 4.4 percent to 606,100 (580,600) units.

Developments on the

American continent were posi-tive—unit sales in North America were up 22.1 percent in the peri-od to June to 389,800 (319,100), of which, 275,200 (211,000; +30.4 percent) were delivered in the US. The Volkswagen Group handed over 469,500 (455,200; +3.1 per-cent) vehicles to customers in the South America region during the same period. Group figures for the Asia-Pacific region were also very encouraging. 1.48 (1.26; +17.6 percent) million vehicles were handed over to customers there in the first six months, of

which, 1.30 (1.11; +17.5 percent) million units were delivered in China, the region’s largest single market. In India, 60,900 (55,100; +10.4 percent) customers took delivery of a new vehicle from the Group.

Outline Of Developments The Volkswagen Passenger

Cars brand delivered 2.79 (2.53; +10.2 percent) million vehicles to customers worldwide from January to June. The brand developed well in the US, where 208,700 (154,100; +35.4 per-cent) vehicles were handed over. Volkswagen Passenger Cars delivered 134,000 (92,300; +45.2 percent) vehicles in the Central and Eastern Europe region over the same period.

Audi also reported an increase in Europe, where deliveries rose by 2.8 percent compared with the same period in 2011 to 393,300 (382,800).

Škoda delivered 493,000 (454,700; +8.4 percent) vehicles worldwide from January to June. The company developed par-ticularly well in the Central and Eastern Europe region, where customers took delivery of 131,800

(113,500; +16.2 percent) new vehi-cles. ŠKODA grew deliveries in the Asia-Pacific region to 144,900 (128,900; +12.4 percent) units.

On the other hand, Seat deliv-ered 163,300 (186,400; -12.4 percent) vehicles worldwide in the period to June. The compa-ny handed over 139,100 (167,900; -17.2 percent) models to cus-tomers on the overall European market where the situation remained difficult. There were encouraging trends in Germany, where 28,400 (26,300; +8.0 per-cent) units were delivered, the UK, where 19,800 (18,500; +6.8 percent) customers chose a Seat model, and Mexico, where deliv-eries totaled 10,200 (8,500; +20.5 percent) vehicles.

Volkswagen Commercial Vehicles grew deliveries 3.7 per-cent to 270,000 (260,300) units in the first half year. 63,000 (59,700; +5.5 percent) vehicles were hand-ed over to customers in the home market of Germany. Volkswagen Commercial Vehicles also devel-oped very well across Europe, with 165,900 (158,400; +4.7 per-cent) units delivered on the overall European market.

* Excluding MAN and Scania

Volkswagen increases global deliveries

Renault appoints new Vice President

Renault has appointed Béatrice Foucher as Vice President of the Electric Vehicle Programme, effective from 1 September, 2012. She will report to

Philippe Klein, Executive Committee Member and Executive Vice President, Corporate Planning, Product Planning and Programmes.

She joined Renault in 1989 working in the Quality Department. She moved into the Customer Research Department in 1993 and then in 1996 to the Product Department, where she successively held the positions of Deputy Product Manager for Laguna II, Product Manager for Espace IV and head of future projects, before being named Director of the M2S range in 2005 and Product Director in April 2007. Béatrice Foucher, 48, earned an Agro Paris Tech engineering diploma in 1988 and also holds a Masters in Quality Management from Centrale Paris / ESCP.

Citroën appoints new Head of CVs & Business Centre Programme

With immediate effect, Citroën’s Scott Michael has been pro-moted to the position of Head of Commercial Vehicles & Business

Centre Programme. Scott takes up his new role, which will be based at Citroën UK’s new Coventry head office,after 18 months as Commercial Vehicle Operations Manager.

Scott (32) is a Business Studies and Spanish graduate of Hull University and has been with Citroën since 2003, when he started as Fleet Analyst. Subsequently, his Citroën career has seen him serve as an Area Fleet Sales Manager and as Commercial Vehicle Sales Manager.

Reporting to Scott in his new role are Gillian Blair, Denis Golden, Andrew Hibbs and Jeff Rodger, Citroën’s field-based team of Regional Business Centre Managers, and Chris Jones, who is responsible for the company’s LCV con-version business.

Scott commented, “I am delighted to take up this new role with all the opportunities and challenges it will bring. Since its inception, Citroën’s Business Centre programme has been a major success and our LCV sales performance has remained very strong. Both these factors have played key roles in enabling Citroën to expand its business, especially in the SME sec-tor, and I am looking forward to working on maintaining this growth.”

Deliveries by the Volkswagen Group

developed very well in the first half of the year. But that

is by no means cause for euphoria.

The economic situation, particularly in Western Europe,

remains tense and difficult—

Christian Klingler, Board Member

for Sales, VW Group

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Auto Monitor

G L O B A L W A T C H4623 JULY 2012

Alfa Romeo’s super-mini, the Alfa MiTo, is now available with the 85 HP TwinAir

engine—an 875 cc twin-cyl-

inder turbo powerplant with electro-hydraulic valve control technology that delivers fuel economy with sub-100g/km CO2 emissions.

The introduction of the two-cylinder TwinAir engine into the Alfa MiTo range rein-forces the MiTo’s image as a high-tech, sporty, compact car offering maximum driving pleasure whilst exceeding driv-er expectations.

With a CO2 output of just 98g/km and official Combined Cycle fuel economy of 67.3mpg, the

Alfa MiTo TwinAir is the clean-est and most economical model in its class. Business and retail customers can enjoy impressive financial benefits including zero road tax, the lowest 10 percent BIK rate, London congestion charge exemption and Group 9 insurance rating.

The 85 HP TwinAir Turbo is the first of a series of two-cyl-inder engines developed by Fiat Powertrain. Complementing the introduction of the new power-plant, the MiTo TwinAir range is available in a new metallic body

colour—Ametista black with a purple hue.

Head of Brand, Alfa Romeo UK, Damien Dally said, “The Alfa MiTo TwinAir is an intelli-gent response to modern driving requirements—premium styling, a sporty and engaging driving experience, combined with out-standing ecological and financial benefits. It’s the last word in auto-motive engineering in terms of technology, performance and environmental consideration.”

Mito TwinairKey to the Alfa MiTo’s inno-

vative success is the marriage between two award winning technologies; the two-cylinder TwinAir engine, and MultiAir—winner of Best New Engine of the Year 2010. The TwinAir engine dominated the 2011 International Engine of the Year Awards, win-ning Engine of the Year, Best New Engine, Green Engine of the Year and Best Sub one-litre Engine. This is only the second time that a sub one-litre engine has taken the top award, with the judging panel praising the powerplant’s impressive innovation.

Environment & EconomyThe TwinAir has an optimised

petrol engine performance with the consumption and running costs of a frugal diesel. The MiTo TwinAir is one of the cleanest and most economical model in its class, (three-dr, B-segment, petrol), with Combined Cycle fuel economy of 67.3mpg; CO2 emissions of just 98g/km, a zero road tax rating and just 10 per-cent BIK—the lowest possible banding meaning company car drivers can pay as little as £23.49 a month and save the three percent premium they would pay for an equivalent sub 100g/km diesel.

Due to the 100 percent capi-tal allowance on cars with CO2 emissions lower than 110g/km, companies are able to write off the whole cost in the first year, as opposed to 20 percent per year, bringing down the amount subject to corporation tax and significantly reducing a compa-ny’s liability.

The low CO2 emissions mean London drivers also benefit from congestion charge exemption, potentially saving around £2,500 a year.

Alfa MiTo loaded with TwinAir engine technology

Performance & DynamicsAlfa MiTo takes everything Alfa Romeo

knows about sports car dynamics and distils it into the supermini. The MiTo TwinAir’s power-plant uses MultiAir technology combined with specific fluid dynamics optimised for maxi-mum fuel efficiency.

The 875cc TwinAir Turbo engine, mated to a close ratio six-speed gearbox, delivers a maxi-mum of 85 HP at 5,500 RPM and a torque of 145 nm at 2,000 RPM. Maximum torque is availa-ble from 2,000 RPM and is constant up to 3,500 RPM—between 10 percent and 25 percent more torque when compared to the 105 and 78 HP petrol engines in the current range.

The MiTo TwinAir combines performance with efficient drivetrains on the road today. Due to the Start&Stop device and ‘intelligent’ alternator, the MiTo with TwinAir engine has the lowest petrol CO2 emissions in its segment at just 98 g/km—up to 30 percent less than an engine with equal performance—combined with a dramatic reduction in fuel consumption.

The TwinAir Turbo engine also features a series of modifications intended to further improve both the level of comfort and the qual-ity of driving. Technical refinements include a state-of-the-art flywheel and optimisation of the elements supporting the power unit, ensur-ing great acoustic comfort and freedom from vibration in all driving conditions.

Pricing & Trim LevelsThe new Alfa MiTo TwinAir is available

in two trim levels—Sprint and Distinctive—priced at £14,150 and £15,350 respectively.

A generous standard specification on the Sprint trim level includes 16-inch sports alloy wheels, cruise control, front fog lights, manual climate control, Alfa DNA (driving mode selec-tor) and Alfa’s Blue&Me system with Bluetooth hands-free connectivity and USB media system.

The Distinctive trim level also benefits from standard premium features including 17-inch sports alloy wheels, red painted Brembo brake calipers, rear parking sensors and chrome/alu-minium detailing.

In addition to the model’s impressive new drivetrain, the MiTo TwinAir is available in a new metallic Ametista Black body colour with a new design for the light alloy rims and a com-pletely revamped interior.

Alfa ServicesAll new UK Alfa Romeo cars sourced from

Alfa Romeo UK come with three-years’ AA Contact, which includes Roadside Assistance, Home Start, Relay, Relay Plus, European Cover and Accident Management. This insured serv-ice is provided free of charge and is available 24 hours a day, throughout the year and also includes access to travel information, legal advice and technical information.

The MiTo TwinAir combines performance with efficient drivetrains

on the road. Due to the Start&Stop device

and ‘intelligent’ alternator, the MiTo with TwinAir engine

has the lowest petrol CO2 emissions

in its segment at just 98 g/km—up to 30 percent less than

an engine with equal performance—

combined with a dramatic

reduction in fuel consumption

Auto Monitor

C L A S S I F I E D S 4723 JULY 2012

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Auto Monitor

T H E O T H E R S I D E4823 JULY 2012

Illus

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Sac

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Getting Personalwith N Krishnamoorthy, President, Dealership Business, TV Sundram Iyengar & Sons Ltd

In Person

If not in auto industry where would you be?An easy question for stardom, but a tough question for one who has spent 38 years in the auto industry. Let me think, I probably would have joined the pharmaceutical field, which was my first interview. This came up to me just after graduation even before joining TVS

What car do you drive? What do you dream of driving?I drive a Honda City. The constraints of the town where I live do not allow me to dream of very big cars, at the most a superior SUV

Your most recent indulgence…Last festival season, I spent three days in Kodai Hills, a real indulgence since the usu-ally crowded Kodai was empty because everyone wanted to be at home for the festival

What are you currently reading?‘Seven Secrets Of Shiva’ by Devdutt Patnaik

What is N Krishnamoorthy doing when not talking auto?I am with my daughters. The first is married and lives in Munich. I talk to her and my son-in-law about their future plans. The second one has just graduated and is pursuing her MBA in Retail Management in Noida. She considers me as her role model and I spend time trying to influence her thoughts

Outdoor activity you would miss office for…An hour at the badminton court or walking for fresh air

Where did you go for your last holiday?Already revealed—it was the Kodai hills

You get angry when?When trust fails or openness is misunderstood for weakness

What is the one thing you would like to change about you?I am aware that I am more impulsive, but trying hard to become data driven

Best thing to have happened to you…My harmonious family

N Krishnamoorthy, President, Dealership Business, TV Sundaram Iyengar and Sons, ‘NK’ to friends and associates, has 33 years of expe-rience in different divisions of TVS & Sons. He is responsible for estab-lishing TVS Lanka (Private) Limited in Sri Lanka in 1997. He has also taken over as the Chairman of Confederation of Indian Industry, Madurai Zone, for 2012-13.

An experience I won’t forget…My first overseas assignment in Sri Lanka—a lovable country with ethnic problems at the peak, but it gave me the opportunity to learn so much

Regn. No. MH/MR/WEST/20/2012-2014. RNI No. MAHENG/2000/11414Licenced to post at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001.Date Of Mailing:16th & 17th Fortnightly Issue. Date Of Publication: 13th of Every Month

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