China slashes tariffs on US auto imports!

Hong Kong (CNN Business)

China said Friday it will temporarily reduce tariffs on imports of American-made cars as it tries to negotiate a trade deal with the United States.

Citing the meeting earlier this month between US President Donald Trump and Chinese leader Xi Jinping, the Chinese Finance Ministry said in a statement that it will remove the additional 25% tariffs on car imports from the United States for three months starting January 1. That will bring China’s tariffs on American-made cars to 15%, in line with those for cars made in other countries.
China also said it would suspend its 5% tariff on 67 other auto parts.
China imposed the additional tariffs on US cars in July and on some auto parts in September as part of its retaliation in the trade war between the two countries.
At their meeting in Argentina, Trump and Xi agreed to a temporary truce while they try to negotiate a broad trade deal over the next 90 days.

In its statement Friday, the Finance Ministry described the decision to remove the tariffs as a “concrete action” aimed at helping to bring about a “mutually beneficial new Sino-US trade order.”

Xi pledged in April that China would cut tariffs on imported cars this year. His government delivered on that promise in July, reducing import taxes from 25% to 15%.
But just days later, China imposed new additional tariffs of 25% on American-made passenger vehicles as the trade war with the United States escalated.
The tariffs hurt profits of major automakers that ship cars to China from the United States. Germany’s BMW and Daimler, the owner of Mercedes-Benz, have been hit particularly hard. Shares of BMW (BMWYY) and Daimler (DDAIF) both trimmed early Friday losses on the news.
The stocks had spiked last week after Trump tweeted that China was going to cut auto tariffs.

General Motors (GM) and some other automakers already have a large presence in China through partnerships with local manufacturers. It has become the largest and most important market for the American auto industry. Because their plants are in the country, they weren’t subject to big import taxes.
Yet China’s tariffs have hurt exports from US auto plants. The value of US passenger car exports to China has fallen by $2.4 billion, or 30%, over the course of the first nine months of the year.
Part of that could be because of slowing Chinese auto sales. Yet overall sales of American cars in China -— including those made in China — are down only about 1% so far this year.

Eric Cheung and David Goldman contributed to this report.

CNN Hongkong Business

https://www.cnn.com/2018/12/14/business/china-us-auto-tariffs/index.html

China’s yuan edges up as the US Dollar Weakens

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https://www.bloomberg.com/quote/USDCNY:CUR

Porsche on a collision course with BMW

BERLIN, Jan 18 — The German sportscar company is considering a move into the premium mid-size executive sedan market where the BMW 5-series is currently king.

In fact, it is one of the most competitive market segments in the automotive world. As well as the 5-Series, the Porsche would have to do battle with the Mercedes E Class, Audi A6, a host of Lexus models and the new Maserati Ghibli.

However the company has never been scared of a challenge and has been debating a move into the segment since 2012. As Porsche boss Matthias Muller told Autocar: “Speaking very frankly, I can say this is one of many ideas we have, to build a car below Panamera.”

Porsche is playing its cards close to its chest and makes it clear that as well as a car to match the 5 Series, it is also considering a host of different markets.

However, making a car similar in status to its Panamera sedan but smaller seems the most logical next step for the company. Also adding weight to the rumours is the fact that as part of the Volkswagen group, Porsche is currently helping to develop a new platform that will support rear-wheel drive and all-wheel drive vehicles and that will be used for the next-generation Bentley.

That said, if Porsche does decide to build a BMW beater, the car will have to be incredible. The current 5-Series is pound-for-pound the best car that money can buy. It offers an unequalled mix of performance, practicality, comfort, quality, and high-tech active driver assistance features. — AFP-Relaxnews

Jaguar Land Rover sales rise to record on Asia Pacific, China

NEW DELHI, Jan 12 — Jaguar Land Rover, the luxury- vehicle division of India’s Tata Motors Ltd., reported record global sales last year, driven by growth in the Asia Pacific and China region.

Jaguar Land Rover’s total worldwide sales rose 19 per cent last year to 425,006 vehicles, according to an e-mailed statement. Jaguar brand sales jumped 42per cent to 76,668 vehicles, the most since 2005, while Land Rover increased 15per cent for an annual record of 348,338 vehicles, the company said.

Jaguar Land Rover, which Mumbai-based Tata Motors bought from Ford Motor Co. in 2008 for US$2.5 billion (RM8.1 billion), accounted for 72 per cent of group revenue and 88 per cent of operating profit for the year ended March 31. In the quarter ended in September, Tata Motors posted profit that beat analyst estimates as rising Jaguar Land Rover sales outweighed a loss at the parent company’s Indian business.

“It’s more of a Jaguar Land Rover story now for Tata Motors,” Ronak Sarda, Mumbai-based research analyst at Emkay Global Financial Services Ltd., said by phone. “This provides a good time for investors to make use of the JLR story as Tata Motors is not generating anything positive in India.”

Sales in Asia Pacific and the China region jumped 30 per cent during 2013, North America rose 21 per cent, the UK grew 14 per cent, Europe 6 per cent and other overseas markets increased 23 per cent, according to the statement.

Emerging markets

Under Tata, Jaguar and Land Rover have targeted emerging markets such as China and Russia for growth. In 2013, Jaguar Land Rover had record sales in 38 markets, including Russia, Brazil, Korea and Canada.

The sales growth in 2013 was driven by Jaguar’s F-Type convertible and Land Rover’s Range Rover and Range Rover Evoque models, it said. The F-Type began shipping in May.

It was “a great year in which we have seen some incredibly exciting new models launched to customers across the world,” Andy Goss, Jaguar Land Rover Group sales operations director, said in the statement. “The Range Rover Sport, F-Type, new engines and drivetrains, and a number of 14 Model Year enhancements to our existing lineup have seen Jaguar Land Rover continue to build strong sales momentum in every global region.” — Bloomberg

Top Luxury Brands For China’s Millionaires Revealed

BEIJING, Jan 22 — China’s super-rich might have cut back on spending by 15 per cent last year, according to the tenth annual Hurun Report, but the country has not lost its appetite for luxury brands.

According to the Hurun Report Chinese Luxury Consumer Survey and the Hurun Best of the Best Awards 2014, Chinese millionaires prefer to wear Cartier jewellery, Patek Philippe watches and Hermès accessories, while the wardrobes of the wealthy are stocked with Armani outfits for the men and Chanel for the women. Burberry was the children’s clothing brand of choice among the privileged demographic.

When it came to choosing a car, the Rolls Royce Phantom and the Mercedes-Benz S-class are the top choices for executive vehicles, while the Audi Q7 and the Land Rover Range Rover are deemed the best SUVs. Top sports cars are the BMW M3 and the Porsche 911 Carrera, and the most popular ‘roadster’ is the Mercedes SLK.

Around 40 per cent of the nation’s super-rich now own a yacht — a 10 per cent increase since last year. The favourite brand is Ferretti. Meanwhile Gulfstream, the Embraer Legacy 650 and the Dassault Falcon 7x are the most popular business jets.

Chinese millionaires are most likely to drink Royal Salute whisky, Martell or Hennessy Cognac XO, although Macallan is the single malt whisky of choice and Louis XIII is the most popular imported spirit. Moutai is the Chinese spirit of choice amongst luxury consumers. When it comes to champagne they’ll take a glass of Perrier-Jouët over Moët, and smokers will opt for a Chunghwa cigarette or a Davidoff cigar.

The top choice of private members’ club is the Chang’an Club in Beijing and the preferred luxury hotel brand is the Shangri-La. When flying business or first class, the country’s millionaires chose Air China for domestic trips and Singapore Airlines for international travel.

The Hurun report surveyed 393 mainland Chinese millionaires between June and December 2013 with a wealth of RMB10 million or more (approximately RM5.32 million). — AFP/Relaxnews

Mercedes-Benz U.S. Boss Expects GLA to Be Even More Successful than CLA

Mercedes’ front-wheel drive compact range will grow this year with the GLA crossover, which is tipped to become an even bigger success than the CLA sedan.
Mercedes-Benz USA CEO Steve Cannon said dealers should probably count on GLA shortages after the crossover debuts in the U.S. this fall – something that is happening now with the CLA. The compact sedan debuted in September 2013 in the U.S. and sold faster than Mercedes expected, leading to tight inventories. As for the GLA, Cannon said waiting lists could be even longer.

“Dealers feel there is a lot more potential in that car. It could be hotter – the feedback is phenomenal,” Cannon told Automotive News. The executive added that he expects the GLA’s conquest rate to be higher than the GLK’s 60 percent rate when it debuted in 2009.

Mercedes-Benz has not announced U.S. pricing for the GLA, but the crossover is expected to be more expensive than the CLA, but several thousand dollars less than the GLK, which starts at $38,405, including shipping. The CLA is priced from $30,825, including shipping.

The GLA will launch in the U.S. with all-wheel drive and will be offered later on with front-wheel drive as well.

Mercedes’ FWD range of vehicles, which includes the A-Class, B-Class, CLA and GLA, is in high demand, with Daimler AG CEO Dieter Zetsche admitting the company is looking for ways to increase production. The carmaker is likely to add a third shift at its plant in Hungary that builds the CLA.

By Dan Mihalascu

Early 2015 launch for Mercedes-Benz S500 Plug-In Hybrid, C-Class Plug-in Hybrid to follow

Green-car fans with chauffeurs will be happy to know that the 2015 Mercedes-Benz S500 Plug-In Hybrid is slated to go on sale in the United States next year.

During a roundtable interview at the 2014 Detroit Auto Show, Prof. Dr. Thomas Weber, Daimler’s R&D chief for Mercedes, told Green Car Reports that the S-Class Plug-in Hybrid will hit showrooms in Europe later this year, and will make it to the U.S. in early 2015. That’s around the same time as the Audi A3 Sportback e-tron plug-in hybrid.

Announced last summer, the S500 Plug-in Hybrid features a 328hp 3.0-liter turbocharged gasoline inline-six and and a 80kW electric motor, which combine to get the car from 0 to 60mph in 5.5 seconds. Electricity comes from a lithium-ion battery pack, which provides 19 miles of range on the European cycle. Expect US-cycle efficiency numbers to be a little lower.

The big news, however, is that Mercedes will follow up the S500 Plug-in Hybrid with a C-Class Plug-in Hybrid, with an electric-only range closer to 31 miles. Mercedes will offer a plug-in and a normal hybrid, both of which will be based on the redesigned 2015 C-Class unveiled last week in Detroit.

The C-Class Plug-in Hybrid may use the same powertrain as the bigger S500 Plug-in Hybrid, as Mercedes attempts to modularize components used in its rear-wheel drive sedans.

Meanwhile, Mercedes will launch a C300 BlueTEC diesel-hybrid in Europe later this year.

As for the gasoline hybrid and plug-in, it’s a question of when, not if. Mercedes is reportedly committed to both models, but will decide when to launch them based on demand. Like most German carmakers, Mercedes has traditionally emphasized diesel cars. However, it’s hedging its bet with these plug-in hybrids, as well as the upcoming B-Class Electric Drive electric car.

Buyers most interested in BMW X5

CAR buyers are more interested in the ownership of a BMW X5 than any other car on the market, according to CAP.

Data revealed that new car buyers researched the long-term ownership costs of a total of 256 different models using CAP’s Total Cost of Motoring tool in December 2013.

Out of the 256 models searched for by consumers, BMW’s X5 topped the list for the most investigated cars, making up four per cent of all queries.

Following the luxury 4×4 was the Ford Fiesta, making up three per cent of all Total Cost of Motoring investigations by motorists.

A number of premium models made their way into the top 10 including the Porsche Cayenne, BMW 5 Series and the Lexus IS.

The rest of the top 10 is made up by mainstream models commonly associated with economical running costs, including the Fiesta in second and Volkswagen Golf in third.

CAP’s Philip Nothard said: These figures are surprising because we would not expect imminent buyers of large 4x4s or luxury cars to be as conscious of predicted long-term ownership costs as motorists on a small budget looking into more obviously economical cars.

‘So while the Fiesta’s two appearances in the most popular 10 cars being investigated by people looking closely at their motoring budget is entirely predictable, the appearance of the Porsche Cayenne at number seven is much less expected.’

He added: ‘We know that large 4x4s have been one of the largest growth sectors in recent years – even during the recession – and this data shows that many people have a luxury SUV in mind for their next car.

‘But most interestingly it also shows that the buyers of larger, more prestige cars as just as eager to know how much the vehicle will cost them to own over time as the less well-off consumer who is looking for a small, inexpensive runabout.’

Porsche on collision course with BMW?

German sports-car company Porsche is considering a move into the premium mid-size executive sedan market where the BMW 5 Series is currently king.

In fact, it is one of the most competitive market segments in the automotive world. As well as the 5 Series, Porsche would have to do battle with the Mercedes E Class, Audi A6, a host of Lexus models and the new Maserati Ghibli.

However, the company has never been scared of a challenge and has been debating a move into the segment since 2012. As Porsche boss Matthias Muller told Autocar: “Speaking very frankly, I can say this is one of many ideas we have, to build a car below Panamera.”

Porsche is playing its cards close to its chest and makes it clear that as well as a car to match the 5 Series, it is also considering a host of different markets.

However, making a car similar in status to its Panamera but smaller seems the most logical next step for the company. Also adding weight to the rumours is the fact that as part of the Volkswagen group, Porsche is currently helping to develop a new platform that will support rear-wheel drive and all-wheel drive vehicles and that will be used for the next-generation Bentley.

That said, if Porsche does decide to build a BMW-beater, the car will have to be incredible to usurp the current 5 Series.

AFP-Relaxnews

BMW Targets Record 2014 Sales as German Rivals Take Aim

Bayerische Motoren Werke AG (BMW), Audi and Mercedes-Benz are targeting at least a fourth consecutive year of record sales in 2014 as new compacts tighten the race among the German rivals for the luxury-car industry’s lead.

BMW, the No. 1 seller of premium cars, delivered just 79,600 vehicles more than Volkswagen AG (VOW)’s Audi last year, versus 85,000 in 2012, while the gap with Daimler AG (DAI)’s Mercedes narrowed to 193,500 from 220,000.

A sedan version of Audi’s A3 hatchback and the addition of the CLA coupe to Mercedes’s A- and B-Class compact line-up are part of those companies’ plans to beat sales at BMW by the end of the decade. The Munich-based manufacturer will seek to keep its edge in the stiffening competition by adding the 2-Series coupe. The three manufacturers are battling for new customers in the growing Chinese and U.S. markets as economic woes in Europe hamper demand in their home region.

VIDEO: BMW Unveils 2-Series Coupe, New M Cars at Auto Show
“The luxury-car makers will continue to grow over-proportionally in 2014,” said Sascha Gommel, a Commerzbank AG analyst in Frankfurt. “The U.S. is helped by cheap financing options, and in China the regional expansion of dealerships and the general economic growth supports demand.”

BMW has been the top luxury-vehicle seller worldwide since dethroning Stuttgart-based Mercedes in 2005. Last year was the third in a row of all-time high deliveries at both carmakers, while Ingolstadt-based Audi has reported annual vehicle-sales records since 2010.

Maserati Growth

VW’s Porsche sports-car unit, which sold a record 162,145 vehicles in 2013, is also targeting further growth this year as the new Macan compact SUV wins first-time customers, Bernhard Maier, the brand’s sales chief, said yesterday at the North American International Auto Show in Detroit.

VIDEO: Audi’s Keogh Sees Record Sales for Brand in 2014
Maserati, owned by Fiat SpA (F), expects record demand in 2014 pushed by a “significant” increase in the U.S., Chief Executive Officer Harald Wester said in an interview yesterday.

The Italian luxury-car maker, which started deliveries of $65,600 Ghibli sedan in the U.S. at the end of 2013, will add 20 dealers in the country this year, he said.

Maserati is “on pace” to boost sales eightfold to 50,000 in 2015 on deliveries of new models, including its first ever SUV to be introduced next year, Wester said.

Demand for BMW’s mid-sized 3-series sedan, the premium segment’s best-selling model, and the X1 compact SUV propelled the German company’s delivery gains last year. Ian Robertson, BMW sales chief, said in Detroit yesterday that Chinese sales may rise at a “double-digit” percentage rate this year, while the U.S. is returning to pre-recession growth trends.

Mercedes Challenge

BMW is displaying the 2-Series compact in Detroit. Starting in the first quarter, the car will replace the company’s 1-Series model in the U.S., where the company lost its first-place sales rank to Mercedes last year.

Other Mercedes challengers to BMW models in 2014 will include a new version of the C-Class sedan, which will take on the 3-Series, and the GLA compact SUV, intended to counter the X1. Both vehicles will enter German showrooms in March.

“We finished 2013 with a lot of momentum and expect this to continue this year with our new models,” Daimler CEO Dieter Zetsche said yesterday at a Detroit press conference. The full year of the revamped flagship S-Class sedan’s availability and the compact-car lineup will probably drive demand in 2014, while sales of the C-Class will “experience some effects from the model changeover.”

Audi Gains

Audi is introducing the A3 sedan in the U.S. this year following a rollout in Europe in 2013, and also plans to begin selling a revamped version of the TT coupe. Over the next five years, Audi has budgeted 22 billion euros ($30 billion) in investments to expand its lineup to 60 models from 49 and add production capacity in China, Brazil and Mexico.

Audi predicts “consistent” gains in 2014, CEO Rupert Stadler said yesterday at the show.

VW’s Bentley Motors brand plans to build this year on last year’s record sales of 10,120 vehicles, CEO Wolfgang Schreiber said yesterday in an interview. Bentley sold 2,005 of the new Flying Spur in the last four months of 2013 after it became available in all markets, the Crewe, England-based automaker said last week.

Lamborghini SpA plans to start deliveries of the new Huracan sports car in the second half of this year, Stephan Winkelmann, head of VW’s Italian marque, said in Detroit. Supercar market conditions in 2014 involve “light and shadow,” with North American demand probably growing and European sales stable or showing a “slight decline,” he said.

To contact the reporters on this story: Christoph Rauwald in Detroit at crauwald@bloomberg.net; Dorothee Tschampa in Frankfurt at dtschampa@bloomberg.net