It may have been in financial ruin just a year ago, but the new General Motors is bouncing back from the mire in style.

The company announced second quarter 2010 results with revenue of $33.2billion and net income attributable to common stockholders of $1.3billion. This means that earning per share reached $2.55 and second quarter earnings before interest and tax were $2.0billion.

Business on its home turf of North America was particularly prosperous with second quarter figures of $1.6billion up from $1.2billion in quarter one. GM Europe meanwhile suffered a loss before interest and tax of $0.2billion, although this was a slight improvement on its loss of $0.3billion in quarter one.

Its cash flow reached $3.9billion from operating activities with free cash flow at $2.8billion.

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The world’s largest automotive market appears to be losing its faith in vehicles with smaller engine displacements if recent results are anything to go by.

During July, the market share of new vehicles sold in the country with engine displacements of 1.6litres or less dropped below last year’s average for the fifth month in succession.

In fact, there were 1.24million vehicles sold during the month, a 14.4 per cent increase compared to the previous year according to the China Association of Auto Manufacturers. However, the figures were down 11.9 per cent from June and sales growth from January to July slowed to 42.65 per cent from 47.67 per cent.

Sales of small cars accounted for 65.38 per cent of the overall vehicle passenger sales, totalling 946,200 units over the month. However, this represented a decline of 1.42 per cent and dropped below last year’s average of 69.5 per cent. Similarly, the market for China developed cars, most of which fit into the small car category, also saw a decrease. Indeed 377,700 self developed passenger vehicles were sold during the month, falling 4.5 per cent compared to June.

According to the China Association of Auto Manufacturers’ executive vice chairman and secretary general Dong Yang, the impact of the green car subsidy programme hasn’t so far had an effect. It provides 3,000yuan per unit to 71 fuel efficient models with engines of 1.6litres or less – more incentives are planned.

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It may be leading the electric car push, but Nissan has not turned its back on larger vehicles including sport utility vehicles (SUVs).

According to a report in the Nikkei, the Nissan Motor Company will add a third shift to its UK production line for SUVs in a bid to raise output by around 30 per cent to nearly 24,000 units a month.

The Qashqai SUV is made at the Sunderland plant and a third shift to extend production through the night will be added.

The move reflects Nissan’s remarkable sales success in Europe. Even though sales on the continent fell for the first time in 11 months in April, Nissan’s sales in Europe went up by 41.8 per cent on the year to 31,000 vehicles and now the company wants to strike while the iron is hot with its most popular models.

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Having enjoyed environmental benefits and relief from the number of heavy traffic jams, Beijing will now extend its vehicle restriction rule.

The rule was initially implemented by the Beijing Traffic Management Bureau one year ago and bans private cars in Beijing’s urban areas one work day a week. Now the new rule will mirror the current one and be implemented on April 11, immediately following the existing rule’s expiration.

According to a recent Horizon research survey, 90 per cent of residents, which included 1,549 car owners and 1,013 who didn’t own a car, supported the restriction. It is also reported by the Beijing Transportation Research Centre that the average driving speed during rush hours in the city has increased by 15 per cent.

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The Green Piece Column. Tuesday 23 February 2010

Steeped in tradition, having been established in 1905 and now set for its 80^th edition, the Geneva International Motor Show has always been one of the highlights of the automotive calendar.

Regarded as a level playing field for the world’s car manufacturers as Switzerland lacks an automotive industry of its own, exotic supercars usually steal the spotlight at the event but this year, after turbulent times for the industry, the focus is on green cars and the future of the business. With that in mind here we look at the top 10 most exciting green cars expected to be unveiled at the show.

1. BMW Concept ActiveE

Making its European debut in Geneva, the BMW Concept ActiveE is a fully electric drive vehicle based on the BMW 1 Series (see article). It features a specially developed motor that delivers 125kW/170hp with a maximum torque of 250Nm.

It is capable of accelerating from 0-60mph in 8.5 seconds and has a range of 100 miles on a single charge.

2. New 2011 Ford Focus

Already unveiled to North American audiences in Detroit in January, the 2011 Ford Focus will make its European debut in Geneva with fuel consumption savings of 10-20 per cent compared to outgoing models (see article).

The new Focus is expected to include the next generation Focus ECOnetic technologies including automatic stop-start, smart regenerative charging and low tension front end accessory drive to bring emissions down to a targeted 99g/km with fuel economy at 74.2mpg.

3. Citroen DS High Rider

A brand new hybrid concept, the Citroen DS High Rider hopes to capitalise on the higher efficiency of a diesel combined with an electric motor and is capable of operating by diesel or electric power separately dependent on the conditions (see article).

Details of fuel economy and emissions of this exciting prototype are remaining under wraps until the Geneva Motor Show opens its doors.

4. Peugeot SR1

A new concept car by Peugeot, the SR1 uses the Hybrid 4 technology that is expected to be launched in the Peugeot 3008 in 2011. A 1.6litre THP petrol engine is combined with a rear electric motor that develops 70kW and with the two powertrains operating simultaneously the SR1 can deliver power as high as 230kW.

Its combined fuel cycle performance is 58mpg, with CO2 emissions at 119g/km.

5. New 2011 Audi A1

A new super-mini from the German carmaker, the Audi A1 boasts CO2 emission figures as low as 102g/km according to preliminary figures (see article).

 

Though Audi is shrinking in size to meet green car market demand, the A1 retains its signature sleek, streamlined look and can develop 160Nm of peak torque that enables it to race from 0-62mph in 12.1 seconds with a top speed of 111mph and fuel efficiency in the region of 55.4mpg.

6. New 2011 Bentley Continental SuperSports Convertible

As part of Bentley’s ongoing commitment to biofuels, the manufacturer will debut its flex-fuel capable Continental SuperSports Convertible at the event (see article).

With flex-fuel in full use, CO2 emissions fall by as much as 70 per cent and yet the vehicle still produces remarkable sports car figures, racing from 0-60mph in 3.9seconds and with a top speed of 202mph.

7. New 2010 Volkswagen Polo BlueMotion

Simply one of the greenest cars to date, the new Volkswagen Polo BlueMotion will be the second cleanest conventionally fuelled diesel on the market (behind the Smart ForTwo) with emissions at just 91g/km and fuel efficiency as high as 80.7mpg (see article).

This remarkable small car has certainly stood the test of time but with a new advanced 1.2litre TDI engine, automatic stop-start technology and regenerative braking, it takes the carmaker to an all-time high in fuel efficiency.

8. Vauxhall/Opel Flextreme

The Vauxhall/Opel Flextreme is a diesel plug-in hybrid car that can travel 34miles on its lithium-ion batteries before a small diesel engine starts to charge the batteries (see article). This range-extended concept is a rebadged version of the Saturn Flextreme first introduced in 2008 and is expected to emit 40g/km of CO2 or less based on European test procedures for range extended vehicles.

Its total range is expected to be more than 300miles with average fuel consumption at 174mpg.

9. “5 by Peugeot”

Another Peugeot debutant at the event will be the “5 by Peugeot”, a new concept car that expresses the carmaker’s desire to establish itself in the luxury sector (see article).

With Hybrid 4 technology it has an overall maximum power of 200bhp with super low fuel consumption at 74.3mpg. Its CO2 emissions, although not yet confirmed, are expected to be a meagre 99g/km placing this car right at the top of its sector.

10. New 2011 Lotus Elise

With all the hallmarks of a super car, the new Lotus Elise certainly isn’t the average green car, but thanks to a number of technological advances it manages to combine performance with efficiency (see article).

Thanks to a new 1.6litre engine that is 200cc smaller than the previous Elise model but still produces similar power at 160Nm at 4,400rpm, it has the lowest CO2 output of a petrol sports car in the world with emissions at less than 155g/km of CO2 and fuel economy at 38mpg. Nevertheless it still manages to race from 0-60mph in 6.0seconds with a top speed of 124mph.

The Geneva Motor Show opens to the Press on March 2 and to the public on March 4. We’ll bring you all the latest information from the event in our news section.

Faye Sunderland

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China has been the ‘one to watch’ in the automotive industry for some time, having already established itself as the largest car market in the world ahead of the USA. However, now the central government plans to implement a new policy to encourage consolidation and to push Chinese-brand passenger vehicles into the mainstream.

According to an official from the Ministry of Industry and Information technology, it is hoped that Chinese-brand passenger vehicles will comprise “at least” half of vehicles sales by 2015 and that saloon cars made by domestic automakers will comprise around 40 per cent of the nation’s car market.

Data from the China Association of Automobile Manufacturers shows that 4.58million Chinese brand passenger vehicles were sold last year – around 44.3 per cent of the total – and sales of domestic saloon cars hit 2.22million units, around 30 per cent of the segment.

The policy aims to accelerate consolidation between car manufacturers in the country and could lead to reshuffling according to industry insiders. There are currently more than 130 car manufacturers across the country, most of which are just small enterprises with sales below 10,000 units a year. Indeed only five had sales exceeding one million units in 2009 with the country’s top 10 manufacturers making 11.89million vehicle sales and accounting for 87 per cent of overall sales.

The leading car manufacturers in China include SAIC Motor Corporation, FAW Group, Chang’an Motor and Dongfeng Motor. Meanwhile the second tier is made up of the likes of Guangzhou Automobile, Sinotruk, Chery, Geely and Beijing Automobile.

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After a series of safety-related recalls, the US House Committee on Oversight and Government Reform has issued a subpoena for documents relating to Toyota’s handling of its alleged defects and safety recalls.

The Committee wants the documents in the possession of Dimitrious Biller, who served as the National Managing Counsel for Toyota’s American operation from 2003-2007, after Biller made accusations that Toyota had attempted to “hide evidence of safety defects from consumers and regulators”.

As part of an ABC News report, Biller said that “Toyota in Japan does not have any respect for our legal system” and claimed his accusations are verifiable based on documents in his possession.

Toyota had filed an injunction preventing Biller from disclosing the documents but the Oversight Committee’s subpoena supersedes the injunction with committee chairman Ed Towns stating that the only way to ensure the safety needs of American drivers is to examine “exactly who knew what and when”.

It’s another blow for Toyota which has since learned that 4,286 Isuzu trucks are to be recalled in Japan due to a natural gas fuel leak that could result in fires in the cabin.

Toyota Motor Corporation chairman Akio Toyoda has been asked to testify at a hearing on February 24 with Chairman Towns noting there “is widespread public concern regarding reports of sudden unintended acceleration in Toyota motor vehicles” and “there appears to be growing public confusion regarding which vehicles may be affected and how people should respond”.

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You may think that with a drive to reduce fuel emissions and to save money on fuel consumption, more motorists would be opting for vehicles with smaller engines. However, new figures from the Office of National Statistics suggest that engines are only getting larger.

According to its figures for 2008, the number of licensed vehicles in the UK with an engine capacity in excess of 2,000cc increased from 2.3million in 1999 to 4.0million two years ago. Indeed the number of licensed cars with an engine capacity below 1,000cc has declined by 19 per cent.

Despite the figures, AA President Edmund King was keen to emphasise that bigger is not always worse. He said the increase in cars with an engine capacity of more than 2,000cc is not necessarily a reflection that more people have bought “gas guzzlers” because carbon dioxide (CO2) emissions in this category have fallen by around 20 per cent over the same period.

He also said that the figures reflect a migration to diesel executive cars – from just 10 per cent to around 75 per cent; and that diesel cars tend to have a much larger cubic capacity but are usually more fuel efficient.

The figures were released as part of a social trends publication from the Office of National Statistics that also show that transport and travel costs account for 16 per cent of all household expenditure in the UK, which is actually little different from a decade ago.

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The European automotive industry is… getting smaller.

That’s the verdict after figures were released by the European Automobile Manufacturers’ Association (ACEA) showing that the market share of smaller cars in Europe had risen from about 38.8 per cent in 2008 to 44.9 per cent between January and November, 2009. Both average engine size and power decreased too, with the average displacement dropping to 1,626cm3 from 1,706cm3 and average power falling to 82kW from 86kW.

During the entire 12 month period, passenger car demand in Europe was 1.6 per cent lower than in 2008 and 9.5 per cent lower than before the crisis began in 2007. However, new car registrations did pick up in the second half of the year reflecting a cautious upturn in the market’s momentum.

A total of 14.5million new cars were registered in 2009 with only Austria (up 8.8 per cent), France (up 10.7 per cent) and Germany (up 23.2 per cent) showing any growth compared to 2008, primarily due to scrapping incentives. Italy (down 0.2 per cent), the UK (down 6.4 per cent) and Spain (down 17.9 per cent) enjoyed better than expected results, also due to their respective scrappage schemes.

Meanwhile, automotive production in Europe decreased by more than a quarter from January-September 2009 compared to the same periods in 2008 and 2007, with commercial vehicle production dropping even further.

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Clearly China is the ‘one to watch’ in the automotive industry as its car sales surged by 46 per cent in 2009 making it the largest automotive market for the first time ever – and now, Chinese automakers are expected to increase their capacity to keep up with demand.

According to reports in the Nikkei, the combined capacity of the 10 largest Chinese car manufacturers will jump from around 12million units in 2009 to 21million or so in 2012.

Among those outlining their plans are SAIC, which plans a 30 per cent increase over 2009 capacity by 2012; and China FAW, which plans to nearly double its output capacity over the same period. Chana Auto Company is also hoping to build a new plant that will be jointly operated with Ford.

Predictions for the Chinese market suggest it will expand more than 10 per cent to around 15million units this year. However, market researcher JD Power and Associates has urged caution that the average capacity utilisation rate at major Chinese automakers will probably fall to 70 per cent in 2012, down from around 80 per cent in 2009. The Chinese government has also warned that the industry could eventually face excess capacity.

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