Before Christmas, Automotive News reported that three key bidders remained: Tata Motors, Mahindra & Mahindra, and a private US equity firm called One Equity Partners. In early December, all three companies submitted tenders to Ford, with one anonymous source telling Businessweek that the bids ranged from AU$1.7 billion to AU$2.3 billion.
The strong Tata enterprise is rumoured to be Ford’s preferred bidder.
The Tata Group comprises of almost 100 companies covering information systems and communications; engineering; materials; services; energy; chemicals and consumer products, with a vested interest in both commercial and passenger vehicles through its Motor sector.Ford spokesman Mark Truby has publicly stated that no announcement will be made about the ownership of Jaguar and Land Rover until early in the New Year, though the papers claim otherwise.The Birmingham Post – the local rag nearest to Jaguar’s Midlands home – has speculated that Tata will pay as much as £1 billion (AU$2,285,850,000) for the two companies, and that the deal is sealed.This would be quite the cash cow for Ford, which has struggled to recoup its multi-billion dollar losses in recent years, and will not be operating in the black until at least 2010.Unfortunately for Ford, it originally acquired Jaguar and Land Rover for more than AU$2.8 billion each back in 1989 and 2000.In June this year, Ford flogged Aston Martin for £479,000 (AU$1,094,500) in cash and stocks. Only one satellite in the Premier Automotive Group remains – Swedish marque Volvo, which Ford is attempting to reposition in the marketplace as a more premium brand.For now, Ford wants to wash its hands of the Brits, their high production costs and their adverse exchange rates – and is set to gain some much-needed relief from both the sale, and the end of the sale speculation.
If feeling good about the environment is not good enough, owners of Honda hybrid cars will be offered priority parking at various high-traffic centres around the Australia.
Honda’s Hybrid Priority Parking will be available at Melbourne Central Shopping Centre between May 11 and 23, with plans for rollout at other locations in the coming months, including Sydney and Melbourne airports.The parking spots are not free; they are subject to the usual car parking fees and restrictions. However, they are convenient and accessible. For instance the three parking spots at Melbourne Central are opposite the lifts on level one.They are not restricted to Honda hybrids. The deal is that the spaces are for hybrid priority parking, brought to you by Honda.Anyone taking bets that there will probably be more Toyota Prius hybrids parked there than Honda Insights and Civics?Honda was of course the first to introduce hybrid technology to Australia, in 2000, with its interesting yet painfully slow-selling Insight.It currently offers the Civic Hybrid, Australia’s cheapest hybrid, and will soon be offering its appealing second-generation Insight.Honda’s Hybrid Priority Parking will complement its Civic Hybrid display – on show at each location.
If there was ever a concept that seemed destined for production in the Audi factory, it would be the R8 TDI Le Mans concept. Based on the marque’s tried-and-true diesel performance technology, the V12 diesel is a superb donk that might now go to waste, shelved in the wake of the financial crisis.
After teasing us all with reveals at Detroit and Geneva last year, and even allowing the media to drive the prototype with great written results, the R8 TDI program is reportedly on the rocks.When it was first revealed last year, Audi said the R8 Le Mans was only a concept, yet the company’s mission statement of being ‘the first car manufacturer to offer a diesel engine alternative across its entire range’, seemed to encompass a sparkless R8. Though R8 production remains small at about 25 cars a week, one Audi executive told Wheelsmag that the company “…does have the capacity to produce a limited run of a diesel R8.”The 6.0-litre TDI twin turbo V12 develops 373kW and 1000Nm, pushing to 0-100km sprint of 4.2 seconds and a 300km/h-plus top speed with a fuel consumption of just 10.1L/100km.However, an unnamed source at Audi has today told Auto Express that the R&D required to re-engineering the R8 to house the huge twin-turbocharged V12 engine is not financially cost effective in the current market, and sales would never justify the investment.Thankfully the 5.2-litre V10 is already in existence, and the Cabrio version remains a reality…
The two of the five enduro-prepped Scirocco GT24 cars have completed testing at the Nurburgring in preparation for the fabulous 24 Hour race at the end of the month.
A massive grid of 180 competitors lined up for the dress rehearsal, with the petrol GT24 driven by two-time WRC champ Carlos Sainz (teamed with Franck Mailleux and Vanina Ickx) finishing first in class and 25th outright.The gas-powered Scirocco GT24-CNG (above), which successfully debuted at the track a month ago, was driven by VW Technical Development board member Dr Ulrich Hackenberg and motoring journalists Bernd Ostmann and Peter Wyss won the relatively new Alternative Fuels category and finished eight places behind its petrol teammate in 33rd outright.The 37th Nurburgring 24-Hour Race will take place on May 23-24, with regular Australian competitors Tony Quinn and Mal Rose among the starters. Stay tuned.
Jaguar’s new Indian owner, Ratan Tata was quick to reassure employees, aficionados and customers that the acquisition of marquee British car makers Jaguar and Land Rover would not bring noticeable change.
He said that the ownership would be non interventionist and non integrationist. That Tata Motors is producing the world’s cheapest car, the Nano, should have no impact on Jaguar and Land Rover products.The managing director of factory owned Jaguar Land Rover Australasia, David Blackhall, sees the $2.3 billion buyout, which comes into play on June 1, as “only positive”.“There’s a lot that can be done with these brands now that the uncertainty has gone,” says Blackhall.The public won’t observe anything significant. Existing dealers will still be selling Jaguars and Land Rovers, and the brands will still be distributed by JLRA with a team led by Blackhall.The existing Jaguar product line-up, boosted by the arrival of the modern mid-sized XF, will be no less familiar.It will be business as usual with the big difference being that Jaguar and Land Rover now have assured futures, although there have been some concerns that the Tata Group (the parent of Tata Motors and India’s biggest industrial conglomerate}may have bitten off more than it can chew.Positively, however, Land Rover’s fortunes have improved and it made a profit of about $1.5 billion last year). But Ford tossed about $10 billion into Jaguar during its 18-year-long headache. A reliance on traditional, pin-striped luxury has now been dumped in favour of a more sporting, stylish, younger positioning exemplified by the XF.Interestingly, the Tata purchase of Jaguar and Land Rover hasn’t raised many eyebrows in Britain where the Indian parent company already has significant holdings in non-automotive businesses.“With Tata taking over, it’s almost like the British are getting Jaguar back,” says the Jaguar Land Rover boss, and not only because of the traditional connection between the Mother Country and India. Tata already owns a host of British companies including Tetley tea and major steel operations. It has a big UK presence in research and development with a global IT base there.Tata also has a Ritz-Carton hotel holding in the US.Tata emphasises that Jaguar and Land Rover will continue to be produced out of their British factories. Mr Tata has made it clear that the origins of the brands are important. Don’t expect Indian-made Jaguars or Land Rovers…Nor an army of Indian executives.Mr Tata, a dignified and worldly gentleman of 70 (and a man who might well have been a target market for Jaguar in the past), is already taking steps to retain the essential DNA of the Jaguar and LR brands. And to retain or improve their competitiveness.“I am told there are detailed flow-on technical partnership agreements to guarantee platforms and engines for some time,” says Blackhall, adding that the company also has an excellent R&D facility of its own in the UK.Mr Tata had recently dined with Geoff Polites, who was the boss of Jaguar Land Rover until his death. The new owner asked Polites to stay on and continue to run the company with the existing seasoned management team, and the Australian was keen to remain in the job, health issues permitting.On Polites’ death, the Jaguar Land Rover CFO, David Smith was appointed acting CEO and is tipped to take the job permanently.It’s too early yet to know if Tata has grand product plans for Jaguar. Blackhall says that in the medium term, Jaguar probably has its products locked in. Longer term, though, anything’s possible. He sees Porsche as the company model for any small luxury car-maker like Jaguar, which sold 70,000 units in 2008 (Land Rover is up closer to 240,0000. Profits ahead of volume could be the credo.“If I were running these brands, I wouldn’t rule out anything,” he says.And, speaking of Porsche, he would personally love to see Jaguar produce a “smaller, focussed two-seater sports car that is true to the brand”.He wants Jaguar to recapture the territory it held in the 1950s and ’60s when it was an acknowledged leader in dynamic and stylish sporting luxury cars.The new XF model is chasing younger, more sporting buyers and is the most contemporary Jaguar to emerge in a long time.“[Stylist] Ian Callum has done a great job is consigning retro to the past,” is Blackhall’s verdict on the modern look of the Jaguar rival for the 5 Series, A6, E-Class and GS.“This is a key car for us, a breakthrough car.”Blackhall observes that today’s car business is a complex one. It’s no longer a case of building the right car and the customers will come. “There’s a lot going on with the environment, fuel reserves, regulations, and petrol prices. Carbon will drive many product decisions over the next five years.“Jaguar Land Rover has committed 700 million pounds to researching and developing alternate engine strategies and finding solutions. We have to be on the front foot.Blackhall is upbeat about the future under Tata but also remembers its most recent owner Ford with affection. Ford Motor Company bought Jaguar in 1990 for $2.5 billion. “Ford was terrific; it stepped up every time, despite its own problems.”Blackhall reminds us that in the 1960s-70s-80s, Jaguar could have fallen over permanently and become another casualty like Vanguard, Hillman, Riley, Sunbeam…Just in the last few days has come news that Tata is to take a share in Pininfarina as the iconic design studio sets up a centre for research, design and engineering in India.Tata will support this facility with contracts and participate with a minority interest although Pininfarina, best know for its work designing Ferraris, will be the majority shareholder with management responsibility.Tata has also indicated an interest in purchasing a stake in Ferrari.
The eldest son of Formula One boss Max Mosley has died after a suspected drug overdose in London.
Police and emergency crews were called to the Notting Hill home of 39-year-old economy expert Alexander Mosley on Tuesday afternoon, but were unable to revive him. A post-mortem will be performed today, but the death is not being treated as suspicious by the authorities.“Max and Alexander particularly were very close,” said former F1 team boss Eddie Jordan.“It’s totally tragic, he was such a bright boy. I’m devastated for them.”Last year, Max Mosley, 69, won a massive AUS$2.9million privacy action against the News of the World over the reporting of a now-infamous filmed encounter with five whip-wielding prostitutes. Neither his wife Joan, nor his sons Alexander and Patrick, 37, had been aware of these sexual practices. Mosley admitted in court that both the story and the following lawsuit had greatly affected the family.Alexander had also reportedly struggled with drug addiction in the past.
The world’s coolest tractor indeed…
Ferruccio Lamborghini began his company back on the farmland, building tractors. The progression to sportscars was soon to follow, with only one pseudo-off roader limited edition model, the LM002 Rambo Lambo, leaving any trace of its dirt-tractor lineage.
But Canadian designer Jason Battersby has melded past and present in this astonishing concept, dubbed the Toro.You’d have to sell a lot of potatoes to harvest with this monstrosity…
The Hyundai 130cw
The car sales slide continues, with vehicle sales in the month of April down on last year by 70,579 units, or 20.3 percent.
April was also 11,685 down on last months results.There were some good figures for some manufacturers:The Mazda 3 bettered the Corolla by 118 units to take second place behind the Holden Commodore, which is still hovering in the top spot despite an 11.2 percent fall in 2009 YTD sales compared to this time last year.“Now more than ever before Australians are spending their hard earned money wisely,” said Mazda managing director Doug Dickson .“New car buyers want top-notch features and state-of-the-art safety equipment in the best looking and best-priced package.“With a great new look and standard features like Dynamic Stability Control and Satellite Navigation our New Generation Mazda3 delivers just that.“For as long as we are launching cars with the same impressive value story, Australian new cars buyers will continue to place Mazda at the top of their shopping list.”The light car segment continues to boom with the Mazda2, Holden Barina, Suzuki Swift and Kia Rio all featuring in the top 20. And Hyundai hit the top five with the i30 and new 130cw, and has posted a sales increase every month this year.“April’s results send a strong signal that the Hyundai brand is breaking old prejudices and winning new customers with a world class multi-award winning range of product that offers consumers outstanding value, low cost of ownership, as well as high levels of safety technology,” commented Kevin McCann, Director of Sales and Marketing at Hyundai.And Chrysler Australia finally had some positives to spin, with the Dodge brand up 25 percent YTD, the Jeep Cherokee up 44 percent YTD, and the Chrysler Grand Voyager leading its segment with a 19 percent rise YTD.The Ford Falcon has increased by 3.2 percent this year, up a further 238 units in April and came in just behind the omniscient Toyota Corolla. As a result, Ford gained 0.7 percent market share for the month while Toyota fell 1.6 percent.APRIL VFACTS, sales and previous rank
1. Holden Commodore 3177 (1) 2. Mazda 3 2503 (3) 3. Toyota Corolla 2385 (2) 4. Ford Falcon 2228 (4) 5. Hyundai i30 1491 (8) 6. Toyota Yaris 1395 (5) 7. Hyundai Getz 1307 (6) 8. Subaru Forester 1239 (11) 9. Toyota Camry 1092 (7) 10. Mitsubishi Lancer 1017 (10) 11. Subaru Impreza 1008 (15) 12. Toyota Kluger 901 (16) 13. Toyota Aurion 895 (13) 14. Toyota RAV4 885 (17) 15. Kia Rio 879 (25) 16. Mazda 2 850 (18) 17. Suzuki Swift 833 (21) 18. Holden Astra 820 (20) 19. Holden Barina 792 (22) 20. Toyota Prado 777 (14)SALES BY MARQUE, Market share, and YTD
1. Toyota 13,033 20.4 20.7 2. Holden 7829 12.2 12.6 3. Ford 6836 10.7 10.0 4. Mazda 5121 8.0 8.7 5. Hyundai 4136 6.5 6.1 6. Nissan 3724 5.8 5.9 7. Mitsubishi 3145 4.9 5.9 8. Honda 3000 4.7 5.3 9. Subaru 2999 4.7 4.4 10. Volkswagen 2160 3.4 3.3
With its razor-sharp looks, Honda’s CR-Z concept coupe demonstrates that hybrid drivetrain tech can be stylishly clothed. Better still, company sources familiar with the now completed design of the 2010 production version, swear little has been changed for the assembly line. The only major change will be the car’s transparent tail panels, which apparently proved too large and curvy for current plastic mass-production tech.
And the CR-Z could have performance to match its looks. The Formula One engine-tech experts left with nothing to do after Honda’s February decision to withdrawn from Grand Prix racing weren’t idle for long. Honda Europe sources say they were immediately reassigned to work on the company’s ambitious hybrid development program.The F1 engineers will have reasonable raw material to work with. Our sources say the petrol-electric CR-Z will have a 1.5-litre engine, rather than the 1.3-litre four of the new Insight or not-so-new Civic Hybrid.The CR-Z engine will apparently be a hybrid-specific version of the Jazz’s 1.5-litre (Insight’s is based on the Jazz 1.3-litre, but has a completely different cylinder head).To cement the car’s sporty credentials, a six-speed manual transmission will be offered, although our sources aren’t saying whether it’s to be the only option or there’s to be an auto, too.But Honda knows that its relatively inexpensive IMA (for integrated motor assist) hybrid tech can’t keep delivering efficiency improvements forever.According to Insight’s chief drivetrain engineer, Hiroshi Yoneguchi, the company is studying the alternatives closely. His personal opinion is that a series-hybrid system, like GM’s for the Volt, offers the greatest potential…Honda’s hybrid plans 2009 Insight = affordable 2010 CR-Z = sporty 2011 Jazz Hybrid = mainstream
Chrysler is allegedly losing between 30 to 40 dealerships each month in the USA, with fewer than 3,200 remaining in business.
The Detroit News reports that dealership incentives will be halved by June. And without the incentive plans, the dealerships are dropping like flies.The most recent round of cash bailouts – a further US$4.5 billion in federal U.S. and Canadian loans approved at Monday’s bankruptcy hearing – will probably never be repaid, despite the beleaguered company asking for the government to forget about the US$4 billion loan from January. This comes on top of further salary cuts with workers asked to take a fortnight-long unpaid holiday to save US$21 million on wages, and news that New Treasury Department regulations will apparently set a cap of $500,000 a year for the new CEO and top 25 execs for any company receiving the industry bailout funds.Chrysler will return to court this week to discuss payments of US$6.9 billion owed to its major (first lien) creditors. While both Chrysler and the Obama administration want a quick settlement to keep Chrysler afloat and operating, the proceedings in New York have been slowed by some of these first lien creditors.Reuters reports that a group of creditors, who want the maximum amount of their money back and fear a quick bankruptcy solution would reduce their return, are stalling the bankruptcy hearings. Apparently fearing the loss of their legal rights and even death threats if their identities are revealed. However, the Manhattan court has given the group if objecting creditors until this morning to reveal their identities, or agree to allow the proceedings to continue at warp speed.
