Wednesday, February 03, 2010

Max Auto Updates - 03/02/2010

Cops: Kids' driver was drunk

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The driver of a minibus taxi which overturned while taking children to primary school on Tuesday was allegedly drunk, Johannesburg metro police said.

"A breathalyser test was administered and she was found to be over the limit," said Inspector Mveli Nhlapo.

The driver, who Nhlapo said was the parent of one of the children, was arrested and would soon appear in the Kempton Park Magistrate's Court to face charges of driving under the influence and reckless driving.

Netcare 911 spokesperson Chris Botha said the driver lost control of the taxi and it overturned on CR Swart road at 07:30.

"The pupils are believed to be from Tembisa and were going to Edleen Primary School in Kempton Park," said Botha.

The driver claimed she lost control while in the right-hand lane after another taxi cut in front of her, said Nhlapo.

He said 20 children were injured.

One of them suffered a serious head injury and had to be airlifted to Charlotte Maxeke Johannesburg Academic Hospital. The others were taken by ambulance to various other hospitals.

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Car sales rev up industry hopes

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A big swing of 41.28% in new vehicle sales between December 2009 and January 2010 has caught experts by surprise as data exceeded market expectations. However, analysts claim December carry-over sales and a delay in the registration of leases could be contributing to the buying surge.

On Tuesday, National Association of Automobile Manufacturers of South Africa (Naamsa) figures showed new vehicle sales of 38 075 units in January 2010 - substantially higher than the December 2009 total of 26 950.

ETM economist George Glynos said the fact that consumers are now able to lease new cars influenced data. "A lease between the customer and a finance company is still registered as a new vehicle sale by Naamsa."

Marcel de Klerk, managing executive of Absa Vehicle and Asset Finance, concurred. He added there was usually a 15% to 16% carry-over from December to January new vehicle sales.

"People buy new vehicles in December, and sometimes they only register them in the new year," said De Klerk.

He said a more accurate reflection would be to compare the sum of December 2009 and January 2010 sales with that of December 2008 and January 2009 figures.

"Combining sales of December 2009 and January 2010 and comparing that to the same period of the previous year shows a 6.3% increase year-on-year," he said.

"It's more realistic, and it's still good news showing us that we have seen the bottom and the market is positive."

Naamsa figures showed new vehicle sales rose 15.5% to 38 075 units in January 2010 from January 2009. However, Naamsa said the data came off a low base and were expected to show an improvement even if the market was still depressed.

Sluggish improvement off a low base


"To illustrate the extent of the base effect, the January market last year represented the worst new car market in over eight years. Nevertheless, total industry sales had improved by 5 112 units, or 15.5%, to 38 075 units from 32 963 in January last year," it said.

For the remainder of 2010, Naamsa said the direction of new vehicle sales would be determined by underlying economic fundamentals.

"The cumulative 5% decline in interest rates between end-2008 and August 2009 should contribute to an improvement in the financial position of households and businesses, and stimulate demand for new vehicles."

Other factors which would influence vehicle sales positively during 2010 include expected economic growth of 2% plus and the 2010 Fifa World Cup.

The soccer tournament would boost demand from the car rental industry, promote tourism and spending, improve vehicle supply and enhance new vehicle affordability on the back of relatively stable new vehicle pricing, it said.

"The general outlook for domestic sales for 2010 was for a slow improvement in demand as the economy emerged from recession. Aggregate domestic sales could increase by between 7% and 10%; however, the improvement would be off a very low base."

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Renault Wind Coupe Convertible Breaks Cover



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Renault will introduce a new coupe-convertible at the Geneva Motor Show, and we don't mean the Megane CC. The two-seat Renault Wind, roughly the same size as the outgoing Peugeot 206CC, will join the four-seat Megane drop-top when they are introduced side-by-side next month.

Sales of the Wind could begin before the summer starts. Autocar is reporting that the Wind will be launched with the 74 kW 1.2-liter engine from the Twingo GT, and the 1.6-liter 98 kW engine from the Renaultsport Twingo. Front-end styling will be similar to the Twingo, but different. The car has a new bumper, and a recessed hood.

At 3830mm the Wind is 5mm shorter than the Peugeot 206CC, scheduled to be discontinued this year, and 207mm shorter than the 207CC. The Megane CC will likely come in around 4350mm.

It has a roof that folds to an open position in 12 seconds. The luggage compartment will remain the same size, at 270 liters, and will not be disturbed by the top. This is quite a bit larger than the Twingo hatchback.

Renault says the car will be readily available, and will be "affordable for everyone." More will be revealed about the Renault Wind and the Renaul Megane CC on March 2 in Geneva.

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Spyker Clarifies Saab Financing and Strategy



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Spyker has released new details about their purchase of Saab, ahead of the company's general meeting of shareholders on February 12th.

In a lengthy press release (see below), Spyker spelled out their rationale for purchasing Saab by saying, "Spyker believes that through the purchase of Saab it has a rare opportunity to acquire and rebuild a global car brand which will be repositioned towards an independent performance-oriented niche car company with an industry-leading environmental strategy." The company also added Spyker will benefit from Saab's dealership network and technological knowhow.

Spyker stated they fully support Saab's business plan to become "a stand-alone niche manufacturer with three to four model lines: 9-3 (sedan, hatchback, sports estate, X and convertible) and 9-5 (sedan, sports estate and X) and the 9-4X for both the US and European markets." Furthermore, the company will investigate the potential of adding a fourth smaller car line (9-1), but no decision has been made as of yet.

To become profitable, Saab will launch the 9-5 this summer, the 9-4X in early 2011, and the redesigned 9-3 in 2012. They will be marketed as rivals to Audi and BMW, with the support of a "re-energized" sales and distribution approach.

To carry out the business plan successfully, Spyker estimates Saab will need approximately $1 billion dollars in funding. GM will provide $326 million through Redeemable Preference Shares (detailed information about the RPS can be seen in the press release) while the rest - aside from cash on hand - will be provided by a 400 million euro loan from the European Investment Bank. After this funding is secured, Spkyer does not foresee "any future funding being required, neither from Spyker or elsewhere, for Saab to return to profitability."

Besides the nitty-gritty details, Spyker also announced plans to rename the company Saab Spyker Automobiles NV, build 100,000 to 125,000 Saabs annually, and reduce Saab's dependency on GM.

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Mansory Tuning Program for Porsche 997 Turbo



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Engineers working with Swiss luxury auto tuners Mansory have completed work on a new upgrade package for the Porsche 997 Carrera Turbo. Once installed, the kit will cause more than a few heads to turn, with some enjoying the new look, and purists disregarding the new look as somewhat sacreligious.

The car has a new front skirt, and carbon fiber lip and splitter. Sidesills are not mentioned by the firm, but appear to be congruent with the modified design. They lead back to a completely redone back end that combines a new exhaust and added air outlets. A remodeled rear spoiler rests on the decklid, and is made from carbon fiber.

Mansory commissioned a handcrafted interior with upgrades to the stock materials used by Porsche. Like the carbon fiber exterior, the leather interior can be customized.

Upgrades to the engine include a new exhaust manifold along with two silencers. The car rides on one-piece 20-inch silver rims, measuring 8.5- and 12-inches. These rims can also be used on the 987 Cayman and Boxster.

Pricing was not announced for the package.

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Toyota recall to spill into SA?



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Toyota’s ignominious North American recall has been internationalised, with South African cars possibly involved in the expanded recall.

Last night it was announced the recall would officially be expanded to other geographies, including South Africa.

The Japanese manufacturer is reeling in the American market after damming recalls for both sticking accelerator pedals and defective floor mats.

Toyota’s sales slumped to a decade low in January as the company’s most severe ever recall forced it to retract its most popular models from the market.

Which models?

The American market recall for faulty accelerator pedals are 2009-2010 RAV4, 2010 Highlander and 2008-2010 Sequoia sport-utility vehicles; 2009-2010 Corolla and 2005-2010 Avalon sedans; some 2007-2010 Camry sedans; 2009-2010 Matrix hatchbacks; and 2007-2010 Tundra pickups.

For local buyers the potential concern is with RAV4 and Corolla models, which are the only vehicles affected by the American recall which have a presence on the local market.

Even the company’s advanced Prius hybrid has not been spared.

A spokeswoman in Tokyo has admitted Toyota is investigating issues pertaining to complaints about insufficient brake actuation performance when operated on corrugated or frozen roads. Whether the extraordinarily low-resistance tyres fitted to Prius are actually more to blame is still open to conjecture…

The political dimension

Although Toyota’s proposed solution to the recall malaise has not been challenged by the National Highway Traffic Safety Administration (NHTSA), the political damage has been done. Toyota is due to appear before a Congressional inquiry scheduled to begin next Wednesday.

U.S Transportation Secretary Ray LaHood has ensured the Japanese manufacturing giant will enter the inquiry with its head well and truly bowed, calling it "a little safety deaf."

LaHood was incensed he had to fly a delegation of NHTSA officials out to Japan "to remind Toyota management about its legal obligations."

"While Toyota is taking responsible action now, it unfortunately took an enormous effort to get to this point."

Cars and Congress

There is one rather peculiar fact concerning LaHood’s statements.

Despite Toyota behaving abhorrently at first, after an official NHTSA visit in December, the company has seemingly made a full disclosure of issues and initiated an engineered solution in double-time - showing good faith.

Why would LaHood feel the need to raise points concerning Toyota’s initial obstinacy again? Could it be the Obama administration is tiring of automobile related issues during its first year of tenure? We'll probably find out next week.

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