ecg – the association of european vehicle logistics news 2011/ecg news 11.pdfecg looks forward to...

ECG - The Association of European Vehicle Logistics, Diamant Building, Bd. Reyers 80, 1030 Brussels, Tel: +32-(0)2-706- 8280, Fax: + 32-(0)2-706-8281, www.eurocartrans.org

CONTENTS AUTOMOTIVE INDUSTRY 2

Toyota, Honda, Nissan, Subaru shut plants after earthquake 2 Opel developing two SUV models 2 Lincoln edges Lexus in survey of vehicle dependability 2 Mahindra confident on Ssangyong’s future 2 BMW fears quake disruptions to supply chain 3 Opel Insignia leads midsize-car reliability list by DEKKRA 3 Porsche sued by U.S. hedge funds over losses 3 Daimler CFO sees 'no reason' to raise Tognum takeover bid 4 Mercedes holds back on Russia production 4 BMW reaches 4 billion euro savings goal ahead of plan 4 Samar releases vehicle output figures for February 5 Porsche SE not certain about merger with VW 5 Toyota extends car plant shutdown 5 Nissan in talks on buying more than 25% of AvtoVAZ 6 Daimler denies talks with Fiat on truck alliance 6

EUROPE 6

Russian market posts strong growth rates in February 6 Nissan record market share in Europe for February 7 Renault mass-produce EVs in September 2011 7 Toyota relocates Spanish parts centre 7

ECG Office 7

French Justice cancels Eurovignette for lack of impartiality 8 Russia's car-scrappage scheme to end in September 8

REST OF THE WORLD 8

Japan's southern ports take the strain 8 Mercedes South Africa sees full-year revenue rise 23% 9 BMW tops Rolex, Apple as China's most-desired brand 9 Green Automotive launch all-electric SUV in US by year-end 9 WWL gets heavy at Galveston .... 9

ECG – The Association of European Vehicle Logistics No. 11/ 14-18 March 2011

With the imminent publication of the European Commission Transport White Paper, which is so important to our industry, ECG President Costantino Baldissara is hosting a Dinner Debate in the European Parliament on Wednesday 23 March 2011 from18.30. Providing a platform for a sector of the logistics industry which relies heavily on co-modality, ECG looks forward to debating the content of the White Paper and its potential impact with key policy- makers and stakeholders alike. We hope to discuss too the developments that will lead towards the fully integrated and efficient transport system Europe needs for 2020 and beyond. The Dinner Debate, which will be hosted by MEP Inés Ayala Sender, Member of the Committee on Transport and Tourism, will include speeches from Jean-Eric Paquet, Acting Director TENT-T & Smart Transport, European Commission; Lars Holmqvist, CLEPA CEO and Mike Sturgeon, ECG Executive Director. If you would like to join us at this event and have not already received an invitation, please contact the Secretariat on +32 2 7068280 for details.


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AUTOMOTIVE INDUSTRY

Toyota, Honda, Nissan, Subaru shut plants after earthquake (Source: Automotive News, 11

th March 2011) Toyota, Honda, Nissan and Subaru

suspended production at plants in Japan and were assessing damage after an 8.9-magnitude earthquake struck off the coast, triggering a tsunami and shaking buildings as far away as Tokyo. The shutdown could affect exports to the U.S. of such cars as the Toyota Yaris sedan, Scion XB and Scion XD, as well as the Honda Fit subcompact, Accord sedan and CR-V crossover. The quake also affected production of the Acura and Infiniti line-ups. Toyota said it evacuated workers from several factories in the quake zone. Toyota has two parts plants in northern Japan and two affiliates, Kanto Auto Works Ltd. and Central Motors Co. that assemble small cars in the region. At least one person died at Honda's facility, and fires erupted at two Nissan plants. Spotty phone coverage in the quake zone made it difficult for companies to get a clear picture of the extent of the damage. Authorities in northern Japan were beginning to sift through the region's wreckage and tally the death toll when darkness fell.

Opel developing two SUV models (Source: Samar, 14

th March 2011) Germany’s Auto Bild has reported that local

automaker Opel is developing two SUV-segment models. One of them is based on the Corsa platform, and is expected to debut in 2012. The other SUV model Opel is reportedly developing will use the Astra underpinnings, and Auto Bild claims it will launch in 2013, with a hybrid-driven version likely to join the range at a later date. This year, Opel will launch its next-generation Zafira people carrier as well as its first-ever extended-range electric vehicle, the Ampera.

Lincoln edges Lexus in survey of vehicle dependability (Source: Automotive News Europe, 17

th March 2011) Lincoln now leads the

industry with the most reliable vehicles, according to a closely watched annual survey, marking the first time Ford’s premium brand has captured the crown. Lincoln unseated Porsche in J.D. Power and Associates' 2011 U.S. Vehicle Dependability Study released today. Lincoln was followed by Lexus, Jaguar, Porsche, Toyota, Acura, Buick, Mercedes-Benz, Cadillac, Hyundai and Honda. Overall vehicle dependability continues to improve, though the gains are slowing as automakers conquer traditional mechanical problems but struggle with newer, electronic-based features. Power's annual study looks at how well vehicles hold up after three years of ownership by measuring how many problems original owners experienced during the past 12 months with 2008 models. The study looks at 202 problem areas and scores are based on problems reported per 100 vehicles. The study found import brands still outperform U.S. automakers in long-term dependability despite closing the gap in recent years in a separate survey that measures initial quality. The industry posted the highest rate of dependability since the study was launched in 1990, with an average of 151 problems reported per 100 vehicles in 2011, down from 155 problems in 2010.

Mahindra confident on Ssangyong’s future (Source: Financial Times, 15

th March 2011) Mahindra is confident it can revive

South Korea’s Ssangyong Motor. The Indian company said it would turn round the brand by introducing Ssangyong vehicles to India and by bringing over its car financing business to South Korea as part of a drive to boost sales by 50% to 121,000 vehicles a year. Mahindra agreed to buy a 70% stake in Ssangyong, South Korea’s smallest carmaker by sales, in November for Won522.5bn. The global economic downturn had forced the company into bankruptcy protection in January 2009 after four years under Shanghai Automotive’s management control. Ssangyong exited court-led bankruptcy protection on Monday. Ssangyong said that under its new owner, $211m would be spent on product development and branding this year. The two brands also hope to reduce costs through joint global

The ECG Survey of Vehicle

Logistics 2010-2011 is available now!

• Unique scientific publication,

created by the sector to represent the reality of the industry in each single country across Europe, including Russia, Turkey and Ukraine.

• It combines global and European data and information on the automotive industry in general, and the finished vehicle logistics sector in particular.

• It contains external data from industry research experts including global forecasting company IHS Automotive, and internal data directly from the best source - our members!

• We added a brand new chapter (Industry Outlook) that includes an economic forecast and we have re-organised and improved the EU Affairs section. The Country-by-Country Analysis section contains also inward and outward flows.

You can order your copy contacting the ECG Secretariat at [email protected] or calling: +32 2 7068280


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Latest version of ECG Operations Quality Manual Now available!

• Written in consultation and collaboration with the Quality Departments of leading car manufacturers

• Harmonised standard for handling cars from the moment they leave the factory till the moment of delivery to the dealership

• Contains chapters on road, rail, sea and barge transport as well as on vehicle handling in inland and port compounds

• Already endorsed by 11 car manufacturers, and others will follow

• Regularly updated by the Quality Standards Working Group composed of OEMs and LSPs

• The manual can be downloaded from the ECG website http://www.eurocartrans.org/papers/publications

• Also available in German, Italian and Polish, soon available in Spanish

For comments or inquiries please contact: [email protected] tel.: 0032 2 706 82 80

purchases and sharing global sales networks. According to Anand Mahindra, the company’s vice-chairman, they will bring financial stability and investment as well as a futuristic focus with their offerings in alternative fuels and electric vehicles. Ssangyong brings the key to global markets with its strong technology base, its complementary product portfolio and its strong global dealer network. However, Mahindra said there were challenges they would face in the integration process. In order to minimise any culture clash, Ssangyong would be run independently by largely Korean management with its Korean brand retained. Lee Yoo-il, former court-appointed manager for Ssangyong, was named as the carmaker’s chief executive. Ssangyong’s labour union said the Chinese managers had a hard time integrating the unit into its operations and that SAIC failed to invest sufficiently on new product developments. The Korean employees also attacked SAIC over technology transfer issues. Like Mahindra, SAIC also tried to introduce Ssangyong’s vehicles to its home market, but it failed to turn round the company as the global economic crisis hit demand for SUVs.

BMW fears quake disruptions to supply chain (Source: Financial Times, 15

th March 2011) BMW voiced concern over possible

disruptions of its supply chain from the earthquake, tsunami and nuclear crisis in Japan, but said it did not face any problems yet. Herbert Diess, the world’s top-selling premium carmaker’s head of purchasing, said the group was assessing how possible delivery stoppages of semiconductors and other electronics parts would affect the group’s production. Many carmakers use electronics parts from Japanese companies for their on-board entertainment and navigation systems and their electric controls. Mr Diess said less than 1 per cent of last year’s €28bn overall purchasing budget had been spent on goods from Japan. The Asian country is one of BMW’s top 10 sales markets and accounted for almost a 10th of the German carmaker’s €3.23bn net profit last year. The group is currently aiming to further diversify its geographic spread and reduce the dependency on Germany, the US and China with a rapid expansion plan for emerging markets. According to Norbert Reithofer, the chief executive, they managed to grow dynamically last year in many smaller markets, such as Brazil, Russia, India, South Korea, and Turkey. He said the group was assessing plans to build a plant in Brazil, which would be its first production site in South America.

Opel Insignia leads midsize-car reliability list by DEKKRA (Source: Automotive News Europe, 16

th March 2011) Last December, Germany's

vehicle certification body DEKRA released its 2011 car reliability study, the research based on more than 15 million vehicle inspections carried out in the country over the last two years. Accordingly, in 18 out of the total 24 categories, German brand cars were rated as the most reliable ahead of their foreign rivals' offerings. Crucially, DEKRA's 2011 figures were adjusted to the cars' mileage rather than their age, in a bid to provide customers with the most accurate vehicle reliability data possible. DEKRA officials say in general midsize-cars are among the least likely vehicle types to cause drivers any trouble, with only one in four models exhibiting faults (24.2%). This performance was bettered only by SUV/off-roaders which had a failure rate of 22.2%.

Porsche sued by U.S. hedge funds over losses (Source: Automotive News Europe, 15

th March 2011) Porsche was sued by

hedge funds Greenlight Capital Inc., Tiger Management LLC and other funds over $1 billion in short-selling losses. The funds accused Porsche of fraud, saying it hid its plan to corner the market in Volkswagen AG shares, according to a complaint filed today in New York State Supreme Court. The funds had shorted, or bet against, Volkswagen stock and suffered losses when Porsche revealed its holdings. Porsche lured the plaintiffs into a trap, making plaintiffs believe VW shares were overvalued while hiding from plaintiffs the risk of a massive short squeeze that would send the price skyrocketing several hundred percent. Porsche was sued in federal court in New York over the same allegations and


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won dismissal of the lawsuits last year. Volkswagen is in the process of acquiring Porsche.

Daimler CFO sees 'no reason' to raise Tognum takeover bid (Source: Automotive News Europe, 13

th March 2011) Daimler AG and Rolls-

Royce Group Plc see no reason to raise their joint takeover offer for Tognum. Daimler and London-based engine maker Rolls-Royce offered March 8 to buy the company in a deal valuing the heavy-duty engine manufacturer at €3.2 billion. The bid is 30% higher than Tognum's March 4 closing price, the last trading day before the companies expressed their interest. The shares have traded above the offer price since Tognum had not agreed with Rolls-Royce and Daimler on a price. Some investors expect the bid to be increased. Juergen Siebrecht, an analyst with HSBC, said in a note today that €29 per share would be a "fair takeover value." Daimler and Rolls-Royce can hold firm with their offer because Daimler's current 28.4% holding allows them to block any effort by other potential suitors for the company. Under German law, shareholders with more than 25% of a company have the power to veto any major strategic moves. Tognum fell as much as 1.6% to €25.10 and was down 0.9% to €25.28 as of 11:29 a.m. in Frankfurt trading, valuing the company at €3.32 billion. Daimler and Rolls-Royce are offering 16.5 times earnings before interest and taxes for Tognum. Acquirers paid a median of 13.25 times Ebit for assets in the auto- and truck-parts industry in the past five years, according to Bloomberg data. Tognum, which makes engines for ships, tanks, and power generators, reported a 39 percent drop in 2010 net income to €63.2 million. Profit was negatively impacted by a €60 million charge for discontinuing fuel-cell operations, which may be transferred to Rolls-Royce in the deal.

Mercedes holds back on Russia production (Source: Automotive News Europe, 16

th March 2011) Mercedes-Benz wants to

see a significant increase in its local sales before it starts car output in Russia, where rivals BMW AG and Volkswagen AG already are producing vehicles. According to Mercedes sales and marketing boss, Joachim Schmidt, they have concluded that such an investment would not pay off given the sales volumes. The executive said that in 2011 Mercedes plans to surpass the 19,724 cars it sold in Russia last year, but added that local production would pay off as of 100,000 units a year. With a volume of 20,584, BMW was Russia's top-selling premium automaker last year followed by Mercedes and Audi (18,510), according to data from the Association of European Businesses. Luxury brands posted solid growth in 2010 despite having to overcome Russia's 25% tariff on vehicles that are not built in the country. BMW has a contract assembly agreement with Kaliningrad-based ZAO Avtotor, which the automaker says assembled 5,544 BMWs, mainly 3 series, 5 series, X5 and X6 models, in 2010. In late 2010, Audi ended production of models at parent VW's factory in Kaluga, where VW brand and Skoda models are built. Russia put a rule in effect this month that requires foreign automakers build at least 300,000 cars a year per production site by 2015, up from just 25,000. In return, car manufacturers will not pay import duties on car components for eight years while the local supply chain improves.

BMW reaches 4 billion euro savings goal ahead of plan (Source: Automotive News Europe, 16

th March 2011) BMW has reached its goal

of reducing spending on components by €4 billion well ahead of its 2012 deadline. According to Diess, the BMW management board member responsible for the cuts, they have completed their materials cost-reduction program more than one year earlier than expected and now they want to concentrate on innovation and quality. This announcement is especially important for the company's suppliers, which complained that BMW was putting too much pressure on cost-cutting. Diess affirms that their strategy is quite simple since they do not differentiate their product from the competition by the cheapest part, but by the best and most innovative. Already today they employ more quality engineers than purchasers. The executive said BMW's purchasing volume will rise thus last year,

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AGENDA ►The ECG Event in the European Parliament on Transport Policy and Logistics will take place on 23

rd March

2011 in Brussels, Belgium ►The ECG East Regional Meeting will take place on 14-15

th April 2011 in Riga, Latvia

►The ECG Quality Group will meet in Brussels, Belgium (exact date tbc) ►The ECG Maritime Commission will meet on 12

th

April 2011, Brussels, Belgium (exact date tbc) ►The ECG High & Heavy Group will meet on 18

th May

2011 in Brussels, Belgium.

their purchasing volume was about €28 billion. BMW also wants to increase their sales to more than 2 million cars by 2020 so the purchasing volume will grow proportionally to their sales. BMW sold 1.46 million BMW, Mini and Roll-Royce brand vehicles in 2010 and aims to sell more than 1.5 million units this year. North America and Asia will benefit from the growing purchasing budget.

Samar releases vehicle output figures for February (Source: Samar, 17

th March 2011) In February 2011, the production of

passenger cars and commercial vehicles in Poland amounted to 81,269 units, an increase of 18.07% (12 440 units) compared to January 2011. Compared to February last year, domestic production increased by 2.72% (32,155 cars). Total production since the beginning of the year amounted to 150.098 vehicles, including more than 132 thousand of passenger cars. Production of passenger cars in February 2011 amounted to 71,635 units, which is 18,45% more than in the previous month and by 1.36% less than the last year. Only 1.17% (1,545 units) of this year's production went to the local market (last year it was 2.13%). Given the volume of production from the beginning of the year, only one company recorded a decrease compared with last year: Fiat – by 23,71%. Opel, Volkswagen and FSO reported an increase, respectively: 38.91%, 42.60% and 38.51%.

Porsche SE not certain about merger with VW (Source: Automotive News Europe, 17

th March 2011) Indebted Porsche

Automobil Holding SE is preparing to draw up a strategy to attract investors as a stand-alone entity now that the merger with Volkswagen AG looks increasingly unlikely. Porche’s Finance Chief, Hans Dieter Poetsch, signalled that there was now a higher likelihood that Volkswagen will simply exercise an option to take control of the shares in lucrative sports car maker Porsche AG it does not already own without combining with Porsche SE first. VW Group has a 49.9% stake in Porsche. Poetsch said Porsche SE wants to be an attractive investment itself and will tempt shareholders subscribing to its €5 billion capital increase with a payout already in June, since the new shares will have full dividend rights to its shortened fiscal year that ended in December. The proposal will be presented to shareholders with the invitation to the June 17 shareholders meeting at the latest. Poetsch also forecast a profitable year, excluding any one-off effects including possible write downs on its put and call options connected to its 50.1% stake in Porsche. Legal and tax uncertainties have reduced the probability of the merger with Volkswagen this year to just about 50%. Despite this, Poetsch believes they can underscore that Porsche SE's executive board assumes that it will be possible to successfully clarify the current uncertainties and that the merger will be able to go ahead, even if this is after 2011. The merger, originally scheduled for completion in the second half of 2011, has been hit because of legal obstacles. An investigation into share-price manipulation allegations will likely push the deal's completion into 2012. U.S.-based short sellers of VW stock have sued Porsche, claiming the carmaker secretly piled up VW shares and later caused the investors to lose more than $1 billion. At the same time, institutional investors in Germany are seeking €2.5 billion in damages over the matter.

Toyota extends car plant shutdown (Source: Financial Times, 16

th March 2011) Toyota has extended the

suspension of its Japanese vehicle production until at least March 22, but said that it would resume producing spare parts for its cars beginning on Thursday. Rival Nissan said on Tuesday that its two plants on the southern island of Kyushu would resume production as Japan’s carmakers continued to regroup and take stock of their supply chain after last week’s earthquake and tsunami. Toyota had already suspended vehicle production in Japan from March 14 to March 16. On Tuesday it extended the shutdown until March 22 and said it could not yet say when it would resume making cars. The carmaker said it was also cancelling overtime and weekend production at its factories in North


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Upcoming events • CLEPA Annual reception on

22nd

March 2011 in Brussels, Belgium

• ECG Event in the European

Parliament on the future of transport and logistics on 23

rd

March 2011 • CLEPA General Assembly,

26/27th March, Istanbul

• Transport,

Telecommunications and Energy Council, 31

st March,

Brussels

• Conference on Future Transport Fuels, European Commission, Brussels, 13

th

April 2011 • IRU - Road Safety and

Professional Training Seminar Istanbul, 11

th-12

th May 2011

• Transport,

Telecommunications & Energy Council on 27

th May,

Brussels • 6th IRU Euro-Asian Road

Transport Conference & Ministerial Meeting Tbilisi, 16

th-17

th June 2011

America because of the difficulty in shipping parts from damaged Japanese ports. However, it added that it would resume production of spare parts for its cars on March 17. The company will begin making parts for its overseas production – including “knock-down” car kits destined for assembly in emerging markets – on March 21. Nissan, Japan’s third-largest carmaker by sales, said that operations at its Oppama, Tochigi and Nissan Shatai plants would remain suspended until March 20. The carmaker’s plant in Yokohama, south of Tokyo, resumed some operations on March 13.

Nissan in talks on buying more than 25% of AvtoVAZ (Source: Automotive News Europe, 18

th March 2011) Nissan is in talks with

Russian shareholders of AvtoVAZ about buying a more than 25 percent stake, said Serguei Skvortsov, managing director of Troika Dialog, Russia's largest private investment bank. The stake would allow the Renault-Nissan alliance to gain control of Russia's biggest automaker, which builds Lada cars. Nissan is talking with both Troika and Russian Technologies Corp. about acquiring the stake in AvtoVAZ over several years, Skvortsov said on Friday. Renault SA will continue to hold its blocking stake in AvtoVAZ. Renault spokeswoman Oxana Nazarov said negotiations to raise the alliance's stake are continuing and a final decision hasn't been made. Nissan spokeswoman Tatjana Natarova declined to comment. Carlos Ghosn's Renault-Nissan alliance is moving to take a majority stake in Togliatti-based AvtoVAZ, after Renault's $1 billion purchase of a 25% stake in 2008. Ghosn, who is chief executive officer of both Renault and Nissan, said in November that the alliance will seek control of the Russian company. Renault is upgrading AvtoVAZ's sprawling plant in Togliatti to assemble models for all three carmakers. Renault also owns 43% of Nissan. The parties haven't agreed on the value of the AvtoVAZ stake or the time period in which Nissan may gain the stake, Skvortsov said. Troika and Russian Technologies each own 25% of AvtoVAZ. Russian Technologies' CEO Sergei Chemezov affirms that Nissan is in talks to buy a 10% stake in AvtoVAZ. Troika may eventually sell all of its holding, while Russian Technologies plans to buy new stock in AvtoVAZ to keep its stake at 25%.

Daimler denies talks with Fiat on truck alliance (Source: Automotive News Europe, 18

th March 2011) Daimler rejected a report

that it may still create a truck alliance with Fiat. According to a spokesman from the automaker, Heinz Gottwick, there are no talks between Fiat and Daimler. Manager Magazin reported that the Agnelli family is prepared to link the entire company or just the Iveco heavy trucks unit with a partner, including Daimler, citing people close to John Elkann, the head of the Agnelli family. Fiat's controlling family is prepared to reduce its 30% stake in Fiat in connection with a deal. A Fiat spokesman declined to comment. Daimler CFO Bodo Uebber said in an interview that the automaker, which makes Mercedes-Benz, Freightliner, and Fuso vehicles, walked away from talks with Fiat last year, because the company takes a disciplined approach to acquisitions.

EUROPE

Russian market posts strong growth rates in February (Source: Samar, 14

th March 2011) The first two months of 2011 saw sales of new

cars and light commercial vehicles in Russia increase by 77% compared with 2010, or by 127,563 more sold units, according to the AEB Automobile Manufacturers Committee (AEB AMC). Growth for February 2011 amounted to 80% or 73,588 units, as compared with the same period in 2010. Among the top-ten bestselling models of passenger cars so far, nine are produced in Russia. According to David Thomas, Chairman of the AEB Automobile Manufacturers Committee, the very encouraging start to 2011 continues with 80% growth for the


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month following January's 72% increase. Their consensus view on 2011 remains at 2.24m passenger cars and LCVs but in the light of the strong start to the year they will review this following the March and first quarter results. On the other hand, Mark Ovenden, Vice-Chairman of the AEB AMC, is pleased to see that the Russian industry continued its growth. With high oil prices driving the economic recovery and the continuation of the state loan program, the foundation is there for a very good year provided these fundamentals stay in place.

Nissan record market share in Europe for February (Source: Samar, 15

th March 2011) Nissan has said that in February 2011 the

company achieved record market share in Europe, rising to 3.9% across the region. The company’s monthly sales result, coming in at 53,781 units with Infiniti brand sales included, represents a 53% jump against the February 2010 supply. As a result, the year-to-date tally for Europe topped 100,000 units, which is almost 25,000 units more than in the corresponding year-ago period.

Renault mass-produce EVs in September 2011 (Source: Hybrid & Electric Vehivle News, 16

th March 2011) OYAK Renault, the

French automaker’s Turkish manufacturing unit, has announced plans to begin mass-production of the Fluence electric vehicle (EV) by September 2011. The vehicle will be produced at the automaker’s plant in Bursa. The newspaper quoted OYAK Renault General Manager Tarık Tunalıoğlu saying that preparations for the mass production will finish by this summer-end. Tunalıoğlu added that the company will begin production of all the four electric models this year, two of which will be built in France, one in Spain and the other in Turkey. Renault operates about 38 manufacturing plants across the world. The company manufactures six models, in addition to Fluence Z.E., at the Bursa plant. Apart from Fluence, the automaker plans to produce Twizy Z.E. compact, Zoe four-seat super mini and Kangoo electric van. Twizy will be produced in Spain this year while the other two models will be manufactured in France. Renault plans to begin export of the model soon after production starts. With rival automakers already producing or about to produce electric models, Renault apparently will make no further delay to the production plans. Meanwhile, the automaker has plans to launch the Fluence in the Turkish market where it will cost €26,300 after a tax incentive applicable to EVs with engines with power not more than 85kW. In France, the vehicle will be available at a price of €21,300 after an incentive of €5,000.

Toyota relocates Spanish parts centre (Source: Automotive Logistics News, 16

th-22

nd March 2011) Toyota Europe has

begun construction of a new 13,000m² parts centre in Illescas, Spain where it will relocate its existing centre from San Agustín de Guadalix, north of Madrid. The company is investing €26.7m in moving Toyota Parts Centre España (TPCES) to the larger facility, which is expected to be finished by the second quarter of 2012. Toyota said the new Illescas warehouse will enhance the delivery of vehicle parts and accessories across Spain in line with expected sales growth. The relocation is expected to result in a 53% increase in the number of orders met daily, as well as in an expanded service range reaching a total of 224 retail outlets in Spain (up from 127). According to the President of Toyota Europe, Didier Leroy, this new centre is the cornerstone to allow Toyota to provide a better service to their customers, improve the leadership of their logistics operations in Spain, and ultimately increase their competitive position, as well as their commitment to the Spanish market. The facility is one of 14 TME parts centres across Europe. In Spain, Toyota sold 49,000 vehicles in 2010 and has a 5.4% market share. The company held a ceremony last week to celebrate the move.

ECG Office

Mike Sturgeon, Executive Director Tel: 0032 2 706 82 82 [email protected] Lola Uña Cárdenas EU Affairs Manager Tel: 0032 2 706 82 83 [email protected] Marta Mottini Research and Projects Manager Tel: 0032 2 706 82 84 [email protected] Tatiana Wilfart Office Manager & Events Coordinator Tel: 0032 2 706 82 80 [email protected]

Elena Garcia Trainee Tel: 0032 2 706 82 80 [email protected]


8

French Justice cancels Eurovignette for lack of impartiality (Source: El Vigia, 14

March 2011) An administrative court considers that the winning consortium, led by

Autostrade, does not comply with the principles of transparency and intangibility. The French government is inclined to appeal rather than repeating the whole process, although no decision has yet been taken. The implementation of the Eurovignette in France has been delayed after an administrative court in Cergy-Pontoise has declared void the contest launched by the Ministry of Ecology, Energy, Sustainable Development, Transportation and Housing, which won the consortium Ecomouv, led by Italy's Autostrade. According to judicial sources collected by various French media, the court considered that the development of the consortium is against the principles of transparency and inviolability of applications. Furthermore, the court has estimated that there are serious doubts about the impartiality of the consultant who advised the French government about technical issues of the contest, since it co-operated with Autostrade in another similar project in Austria. According to Thierry Mariani, Secretary of State for Transport, this decision is a blow because it nullifies the competition, which prevents the State from signing the contract. He also affirmed that they are facing the dilemma of re-launching the contest, though the final decision will be made shortly. The contract for establishment and operation of the Eurovignette includes a concession for 13 years with an estimated income of 1,200 million per year for the French state and €2,000 million for the contractor. Ecomouv consortium is led by the Italian operator Autostrade (70%) and has the participation of four other groups in France (Thales, SNCF, SFR and Steria). It was described in mid-January of this year as the "highest bidder" in the competition presented in May 2009 by the Ministry of Ecology, Energy, Sustainable Development, Transportation and Housing.

Russia's car-scrappage scheme to end in September (Source: Automotive News, 15

th March 2011) Russia has no plans to extend the car-scrappage scheme

beyond September. The scheme, which helped put the country back on course to match pre-crisis sales levels in 2012, awards 50,000 roubles ($1,751) to drivers willing to trade in models more than 10 years old. It has done much to revive sales of locally produced cars, mainly AvtoVAZ's Ladas, following its introduction in March 2010. Alexei Rakhmanov, head of the Trade Ministry's car industry department, said the scheme was likely to continue until September when he expects all the 500,000 certificates to have been used for car purchases. He said some 487,000 certificates had been issued as of March 14 but part of them had yet to be used. Russia was on target to overtake Germany as Europe's biggest car market before the crisis, but sales halved in 2009 as consumer confidence collapsed and access to credit dried up. The Association of European Businesses (AEB) expects Russian annual car sales to return to pre-crisis levels of 2.9 million units during 2012 thanks to the scrappage scheme and pent-up demand, it said last month.

REST OF THE WORLD

Japan's southern ports take the strain (Source: IFW, 14

th March 2011) Operations at most of Japan’s ports south of Tokyo have returned to

business as usual, following the devastating 8.9-magnitude earthquake that triggered a tsunami on Friday. Japan’s Prime Minister, Naota Kan, said that the country was facing its worst crisis since the Second World War. The north-east coastal ports of Hachinohe, Sendai, Ishinomaki and Onahama are said to have suffered so much damage that they are not expected to return to operation for months, possibly years. The ports of Kashima and Hitachinaka were only partially damaged and could be back on line in a few weeks. However, Tokyo and all ports south of the capital are operating normally, but due to a backlog of vessels, delays in cargo handling are expected. According to container carrier OOCL all bookings to Sendai had been suspended, thus all Sendai imports will be discharged at Tokyo. Maersk Line confirmed that it has resumed operations to Japan. A spokesman said that there are virtually no delays at this point. APM Terminals runs the terminals in Kobe and Yokohama and they are functioning. He said Maersk services to the ports of Yokohama, Nagoya, Osaka, Kobe and Tokyo were operating as normal. Hanjin Shipping affirmed that most of the terminals in Japan, including Tokyo, Yokohama and Osaka, resumed normal operations quickly after the reopening of the ports. The carrier advised its customers to contact local offices for the detailed status of particular shipments. Mitsui Osk Lines (MOL) said it was still gathering information concerning its vessels that may have been in the Tohoku area, near the epicentre of the Pacific earthquake. Wings 24, a subsidiary company of Chapman Freeborn, has advised that humanitarian-related flights were being given priority by the authorities at airports including Tokyo Narita, Tokyo Haneda and Nagoya.


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Mercedes South Africa sees full-year revenue rise 23% (Source: Automotive News Europe, 15

th March 2011) Mercedes-Benz South Africa, a unit of Daimler, said

full-year revenue rose 23% to 34.7 billion rand ($5 billion). According to Hansgeorg Niefer, CEO of the Pretoria-based company, while it's clear they can't expect an 'overnight' return to our 2006/2007 peak, they could possibly be right up there again in two years' time.

BMW tops Rolex, Apple as China's most-desired brand (Source: Automotive News, 16

th March 2011) BMW ranks first among 100 desired brands in China, above

Rolex and Apple as well as Mercedes-Benz and Audi, according to Clear Asia, a Hong Kong-based brand consultancy. The results came from Clear Asia's survey of 2,500 consumers in China. According to Oliver Cartwright, Clear Asia's regional managing director, BMW has a very strong and attractive brand personality in China, plus it's seen as sexy and confident, exciting and sophisticated. Mercedes and Audi rank eighth and 12th respectively, according to the survey results. Scott Davies, director at Clear Asia believes both brands are admired, but neither has the emblematic brand personality of BMW and having a very distinctive personality is key to being a truly desirable brand. The China survey was part of a worldwide study conducted by Clear, Clear Asia's parent company. Globally, BMW was No. 3 behind Apple and Google.

Green Automotive launch all-electric SUV in US by year-end (Source: Hybrid & Electric Vehicles News, 16

th March 2011) Green Automotive, an importer and distributor of

electric vehicles (EVs) in the US has selected Roush Industries to assist in the testing process of its sports utility vehicle (SUV). Roush will provide structural and vehicle engineering support to Green Automotive so that the vehicle complies with the Federal Motor Vehicle Safety Standards. Roush will begin testing an electric version of the Chinese-made which Zotye SUV Green Automotive intends to launch in the US by the end of this year, according to electric cars report. Roush provides automotive engineering and systems integration solutions. According to Green Automotive, the initial phase of work underway is currently divided into four steps starting with review of vehicle construction and evaluation of safety features including airbags and seat belts and other safety standards required to be installed in the car. Step two involves checking the vehicle data against the required safety standards in the Roush’s database. Next step involves vehicle testing, vehicle tear down and comparing data obtained with the Federal Motor Vehicle Safety Standards. Finally, Roush will present a report indicating the test findings and recommendations for any vehicle improvements, a compulsory process undertaken for vehicles to be sold in the US.

WWL gets heavy at Galveston (Source: Automotive Logistics News, 16

th–22

nd March 2011) WWL has opened a heavy equipment

processing facility at the US port of Galveston in Texas, bringing the number of high and heavy processing facilities it operates to 11. The centres support the construction, agricultural and mining equipment sectors and the latest facility at Galveston provides storage for 7,000 units. WWL will also provide a range of support services including inventory management, inspections, repairs, cleaning and dealer distribution, procuring and managing transport on behalf of the customer. The company is also carrying out what is termed ‘preventative maintenance’ during storage, namely exercising the machines every 30-45 days depending on model type and manufacturer to prevent issues related to such things as hydraulics, engines and hoses affecting them while idle. The company reports that the Galveston facility offers the advantage of being located in a Foreign-Trade Zone, providing duty exemption on re-exports for units that are temporarily stored at the site, as well as deferral of customs duty. Galveston County also has a Foreign-Trade Zones at the port of Texas City. Both are secured specialised areas, which are considered outside the Customs Territory of the United States. Foreign and domestic merchandise may be admitted without formal Customs entry for the payment of government excise tax. The latest development builds on the transhipment services WWL has offered high & heavy manufacturers from Galveston for a number of years now. Amongst its customers are John Deere and at the beginning of March the company received recognition as a partner-level supplier for 2010 in the John Deere Achieving Excellence Program.

ecg – the association of european vehicle logistics news 2011/ecg news 11.pdfecg looks forward to...

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