1. automotive and vehicles
2. vehicle brands
3. porsche

9FEBRUARY2015
The weekly round up of news and features in the automotive industry
Fords adds 1,550 jobs
to support demand for
all-new F150
Nissan
reports 23.6%
rise in
net
income
Retired Lockheed Martin executive elected to GM Board
Jury finds Toyota at fault for crash
Ford invests $2.6 billion in Valencia
Auto industry cautiously optimistic for 2015
Johnson Controls
renews strategic
partnership agreement
with Lectra
International Auto Processing
handles 5 millionth vehicle
Infiniti gears up for premiere of
QX30 Concept in Geneva
www.automotivepurchasing.com
Talking Points
Taking on the big boy
Earlier this week, in what seemed shockingly similar to the plot of a TV show, Toyota was
found guilty of a fault in one of its vehicles causing a crash in the US in 2011 that resulted in
the death of three people, injured two others and led to the conviction of an innocent man,
Koau Fong Lee, who was imprisoned for eight years.
On appeal, a 12-person jury, who took a long time in deliberating the verdict, came to
a unanimous decision that the 1996 Toyota Camry that Lee was driving had a dangerous
defect, causing sudden acceleration of the vehicle and the subsequent accident.
The verdict orders the Japanese carmaker to pay a total of $11.44 million in compensation
to all the plaintiffs.
What I find absolutely outrageous in this case is that apart from having to spend two years
in prison for a crime he did not commit, for 24 agonising months Lee was forced to think that
his actions led to the death of three people, including a six-year-old girl, who after being
rendered quadriplegic succumbed to her injuries 18 months later.
From the beginning Lee maintained that there was something wrong with his Toyota
Camry, but that angle was never really explored. After all, what good is the word of the
common man against the big boys? And big they are. This is the world’s largest automaker
we are talking about.
The real reason that caused the problem with
the accelerator was that Toyota allegedly switched
suppliers to cut down costs, replacing a metal
component with a plastic one. This also raises a
lot of important questions within the auto industry,
especially considering the steadily rising number of
recalls.
Takata and its customers are faced with massive
recalls worldwide. While we have been consistent in
blaming Takata for the six deaths allegedly related to
the airbag defect and millions of recalls around the
globe, have we ever paused to think that carmakers constantly cutting
costs might have played a big part in the reduction of quality from the suppliers’ end?
It is definitely worth a thought. ■
Bringing bargains to our back yard
Low-cost country suppliers need to trans-plant as
well as export.
Not so long ago China and Indonesia were seen as the
great new low-cost country (LCC) hopes, the source of
components and systems so cheap that they could be
shipped around the world and still come in with a very
profitable margin for the OEM or Tier supplier, cheaper
than buying locally. But the landscape has changed.
During the 1990s and early 2000s, European, US, Japanese and Korean suppliers invested
heavily - some of them spending more than 10% of their turnover on R&D. Companies like
ZF, who developed the 6HP26 six-speed auto transmission on just an understanding with
BMW and Jaguar that they would take it if it turned out well, were at the forefront of new
vehicle system design and development. Then, as we know, came the downturn and while
OEMs could not invest in as many new products and had to shut some facilities and lay off a
lot of skilled people, suppliers had a much smaller financial cushion and many suffered very
badly. But now, as vehicle systems become exponentially more complex and sophisticated,
the ‘Western’ supplier community has really stepped up, making bold investments in new
technologies in the connected car and high efficiency powertrain to name just two areas.
And as labour rates have risen in the formerly LCCs, so the tide has turned for these
Western suppliers; they can often meet and beat prices offered by their LCC competitors,
when you factor in logistics costs. However the threat is still there, especially in simpler parts
and systems; but to capitalise on their advantages, LCC suppliers have to move closer to
their Western customers.
Chinese OEMs have established both design and technical centres in Europe and the
US, these companies’ next move must be to establish manufacturing ‘bridgeheads’ in these
regions.
How long before a Chinese, Indian or Malaysian supplier follows its OEM customer to
North America, South America or Europe? With their proven capability of lean manufacturing
of high-value and high quality parts, in more than likely a non-union plant, the LCC supplier
trans-plant is a matter of when not if. ■
Bringing it all back home
Year-end sales figures show a drop of 10.3% with worse expected.
It was not long ago since Russia was forecast to overtake Germany as Europe’s leading
car market. Foreign car makers poured billions into Russia in the hope that burgeoning sales
would offset sluggish performance in other European markets.
Year-end figures show a dramatically different picture. Total sales of new cars and light
commercial vehicles fell to just under 2.5 million units compared with almost 2.8 million in
2013, a drop of 10.3%. Some of the world’s leading automakers such as Ford (-38%), General
Motors (-26%), Volkswagen (-18%) and BMW (-17%) were among the hardest hit.
Russia has been hit by a ‘perfect storm’ with the plunging oil price, devaluation of the
rouble and western sanctions triggered by the Ukraine crisis combining to undermine what
was always a fragile economy, dependent as it is on oil and gas revenues.
Within the last few weeks, GM, Audi and Jaguar Land Rover have suspended deliveries of
new vehicles to dealers as the rouble has collapsed by more than 40% since June last year.
The near-impossibility of fixing retail prices at a profitable level has prompted these actions
with BMW admitting that fourth quarter losses could total £117 million.
Editor-in-Chief: Peter Wooding
Group Editor: Simon Duval Smith
News Editor: Trisha Chowdhury
ASC Editor: Sam Ogle
Advertising: Deryck Morris
Production: Richard Sinfield
2
Editorial:
News features | Editorial request
trisha.chowdhury@automotivepurchasing.com
Advertising:
sales@automotivepurchasing.com
I fear there is worse to come. The World Bank has
forecast that the price of crude oil may not recover to 2013
levels until 2025. More worrying still is the escalation of
the Ukrainian crisis. It is reported that President Obama,
for whom foreign policy has never been a strong suit,
is considering providing weaponry to Ukraine to help
combat the remorseless advance of Russian-backed
separatists.
Opponents of such a move, such as me, worry about
escalating a conflict that would see NATO and Russia actively aiding opposing sides in battle
for the first time since the Cold War. Vladimir Putin finds himself between a rock and a hard
place, and we all know what happens when a rat is cornered.
The Moscow-based Association of European Businesses sees the Russian auto market
plummeting by a further 24% this year. Don’t bet against it. ■
Customer Services:
New subscriptions | Renewals | Updates
customer@automotivepurchasing.com
+44 (0) 208 882 1330
© 2015 Three 6 Zero Limited
www.automotivepurchasing.com
All rights reserved. No part of this magazine may be reproduced
or stored in a retrieval system without the written permission of
the publishers. Whilst every care has been taken in compiling this
publication, the publisher cannot accept responsibility for any
inaccuracies or changes since going to press, or for consequential
loss arising for such changes or inaccuracies, or for any other loss
direct or consequential arising in connection with the information in
this publication. The views expressed by the contributors are not
necessarily also those of the publisher.
E. & O.E.
Bringing together America’s Best
The Automotive Supply Chain Awards recognise excellence
and innovation in the North American Supply Chain industry
with entries coming from companies throughout the United
States in categories such as Third Party Logistics, Shipping,
Road Transport, Rail, Terminal and Ports Operators, Aftermarket
Parts, IT Innovation and Vehicle Processing Centres.
Open exclusively to companies operating within the United
States, each category will have a panel of judges which will
be composed of experienced, senior supply chain industry
experts who will assess entries relevant to their specialist
knowledge.
Nominations are now open, so don’t delay in nominating your company, clients and
colleagues for them to receive the recognition they deserve.
The Categories
Third Party Logistics Company
Logistics Quality
Shipping Company
Most Supportive OEM
Road Transport Company
Purchasing Executive
Rail Company
The Leaders Awards - Gold
Terminals and Ports Operator
The Leaders Awards - Silver
Aftermarket Parts Logistics
Logistician
IT Innovation
Vehicle Processing Centre
Environmental Awareness
Outstanding Achievement
Exclusive Sponsor
JACK COOPER
22 April 2015
The Plaza Hotel | New York
Nominations now open
www.automotivesupplychain.org/northamerica
www.automotivepurchasing.com
3
Camshaft problem results in fresh
Porsche recalls in China
OEM
Nissan reports 23.6% rise in net
Tier Suppliers
income in the first nine months of
FY2014
Supply Chain
9 February 2015 | OEM
Nissan announced improved financial
results for the nine months to December
31, 2014, as solid US sales, cost efficiencies
and favorable currency movements
contributed to a 23.6% rise in net income
to 338.8 billion yen.
Operating profit rose to 417.9 billion yen
for the period, representing a 5.2% margin
on net revenues that climbed 11.1% to 8.09
trillion yen.
“Nissan delivered solid financial results
in the first nine months of the fiscal year,
reflecting rising US sales of our latest
models and a normalizing yen-dollar
exchange rate,” said Carlos Ghosn,
President and Chief Executive Officer.
“We anticipate good full-year results
as our product offensive and positive
momentum in North America and Western
Europe offsets volatility in other markets.
Given these trends, along with the
continuing impact of currency movements
and cost controls, we are today revising
upward our full-year financial forecast.”
Nissan now expects to report net income
for the fiscal year of 420 billion yen on
projected revenues of 11.15 trillion yen.
The revised forecast follows a ninemonth period in which Nissan saw rapidly
rising demand for models such as the Altima
and Rogue in the US, where retail volumes
rose 10.9% to 1.03 million units. Nissan
also reported a 13.4% rise in European unit
sales, reaching 534,000 units as the awardwinning Qashqai and new Pulsar helped lift
customer orders.
The double-digit sales increase in the
US and Europe – outperforming the growth
rate in total industry volumes – offset
declines in Japan. In Nissan’s home market,
a combination of higher sales tax and
weak consumer confidence contributed to
lower unit sales, which fell 10.5% to 417,000
vehicles.
In China, where Nissan is the leading
Japanese car brand, unit sales rose 5.2%
to 879,000 units for the nine-month period.
For the calendar year to December 31,
sales were up 0.5% to 1.22 million units
amid signs of slowing Chinese growth.
Globally, Nissan sold 3,835,000 vehicles
in the first nine months of fiscal 2014, a
4.4% rise year-on-year.
Nissan made continued progress
towards the goals of its Power 88 mid-term
plan during the period: delivering synergy
benefits from its Common Module Family,
the vehicle architecture shared by the
Qashqai, Rogue and X-Trail; unveiling new
models including the Murano crossover
and Titan pick-up truck; and maintaining its
global leadership in electric vehicles with
the best-selling LEAF and the e-NV200 van.
The company also pressed ahead
with the development of autonomous
technologies, forging a research alliance
with NASA, signing a technology licensing
agreement with Hitachi Construction
Machinery Co., Ltd. for commercial vehicles
and winning awards for new systems such
as Direct Adaptive Steering.
Nissan’s Alliance strategy, based around
its partnership with Renault, continued to
deliver synergies and technology-sharing
benefits. Total unit sales for the Alliance
reached 8.5 million vehicles for the 2014
calendar year. 
Telematics/Connected Car
Innovation
People
Environmental
Finance & Markets
Vehicle Launch/Concepts
General
Talking Points
4
9 February 2015 | OEM
A fresh recall campaign in China has been issued by Porsche that affects a number of
Panamera and Cayenne models.
China’s
quality
regulator, General
Administration of Quality Supervision,
Inspection and Quarantine revealed that
German carmaker Porsche will be recalling
close to 14,571 vehicles in the country.
The recall campaign that has been initiated
as a result of defective camshaft adjusters
is expected to affect some Panamera and
Cayenne models, according to a statement
released on the quality watchdog’s website.
The list of cars recalled comprises several
imported Panamera models made from April
2009 to September 2011 and two imported
Cayenne models made from March 2010 to
September 2011.
The defect in the camshaft adjuster may
cause the bolt on it to loosen or break, thus
posing to be a potential safety hazard.
Only last month, the German luxury
carmaker announced a global recall of
close to 13,500 cars. The recall campaign
also affected many Panamera and Cayenne
models and had to be undertaken as a result
of a fault in the seal of the fuel tank, which
could allow fuel to evaporate. 
S&P upgrade
Mitsubishi rating
to BB+
9 February 2015 | OEM
Standard & Poor’s Ratings Services today said that it has raised to ‘BB+’ from ‘BB’ its
long-term corporate credit rating on Japan-based automaker Mitsubishi Motors Corp. The
outlook on the long-term corporate credit rating is stable.
Standard & Poor’s Ratings Services
(S&P) has announced that it has upgraded
Mitsubishi’s long-term corporate credit
rating to ‘BB+’ from ‘BB’ in the following
statement:
“The upgrade reflects our expectation
that Mitsubishi Motors is likely to maintain
very low indebtedness over the next 24
months since it eliminated preferred shares
in March 2014. Our expectation of very low
indebtedness is based on the company’s
good prospects of generating positive free
operating cash flow through satisfactory
profitability
and
prudent
financial
management, indicating that its cash flow is
less exposed to industry volatility than in the
past.
“In our opinion, Mitsubishi Motors will
likely continue to generate satisfactory
profitability because of continued cost
reductions and relatively solid sales
performance. The company has consistently
cut about ¥20 billion or more in purchasing
costs every year over the past few years.
Moreover, the company’s overall sales
www.automotivepurchasing.com
performance remains relatively solid despite
a downturn in Southeast Asia, notably in
Thailand. For fiscal 2014 (ending March 31,
2015), we assume its sales volume would be
largely flat compared with the previous year.
“We believe Mitsubishi Motors’ more
prudent financial management will also
support its improved financial standing.
We expect the company to finance capital
expenditures primarily with operating cash
flow. Following the elimination of preferred
shares,
Mitsubishi
Motors
resumed
dividends in fiscal 2014 for the first time
in 16 years. Still, we expect dividends will
not prevent the company from generating
positive discretionary cash flow.”
“Nevertheless, our assessment of
Mitsubishi Motors’ business risk profile
and negative comparable rating analysis
incorporate
the
company’s
relative
weakness in its market presence, scale,
and diversity compared with similarly rated
peers such as General Motors Co. and
Renault S.A.” 
www.automotivepurchasing.com
5
Study shows Scania supplies
the most efficient alternative fuel
technology
6 February 2015 | OEM
Bioethanol is by far the most efficient
alternative fuel technology in reducing
CO2 emissions from heavy vehicles a major
study carried out in Stockholm has found.
Since 2010, a total of 50 alternativefuel trucks have operated in Stockholm in
what has been one of the largest ever trials
of renewable fuels for trucks. The Clean
Truck project has been managed by the
City of Stockholm in cooperation with fuel
distributors and transport companies.
The 50 trucks were operated on dual fuel
(methane/diesel), hybrid electric-diesel and
the bioethanol fuel ED95.
When results were evaluated recently,
the Scania bioethanol truck had emerged
as the clear winner with a nearly 70% CO2
reduction. Initially, when forestry waste was
used to produce ED95, the reduction was
even higher, 90 percent.
The Scania bioethanol trucks are
operated by the Kyl- och Frysexpressen
transport company in Stockholm, which
carries out deliveries of fresh produce to
food retailers in the area.
“After having operated ED95 trucks for a
few years, we still firmly consider them, by
far, as the best alternative fuel available,”
said Managing Director Robert Barkensjö.
“Of the options that presently exist, there’s
simply no reason to look at other solutions.”
Barkensjö said that in his experience
there is no difference between operating
and driving a bioethanol compared with a
diesel truck. What are the prerequisites for
bioethanol operations? “None at all, besides
the fact that you need a heavy vehicles
licence,” Barkensjö says.
Scania offers the broadest range of heavy
vehicles for renewable fuels, including
biogas, bioethanol and biodiesel.
ED95 is an ethanol-based fuel for
adapted diesel engines. It consists of 95
percent pure ethanol with the addition of
ignition improver, lubricant and corrosion
protection. 
Dacia goes on sale in Israel – the
brand’s 44th market
6 February 2015 | OEM
Dacia continues to develop in the
Mediterranean Basin with the establishment
of operations in Israel.
The first Dacia sales outlet was opened
in Tel Aviv on Wednesday, January 7, in
the presence of François Mariotte, Sales &
Marketing Director of Dacia, and Itzik Weitz,
CEO of Carasso Motors. The event was
attended by around 50 representatives of
the Israeli media.
Carasso Motors, the Renault group’s longtime partner in Israel, will be responsible for
sales and aftersales service. In 2015, Dacia is
expected to open two Dacia-branded sales
outlets, as well as a number of sales corners
in selected Renault dealerships across the
country.
Itzik Weitz, CEO of Carasso Motors,
commented: “Our partnership with the
Renault group has been going strong for
more than 65 years. The Renault brand is
growing in Israel and now has a 4.2% market
share. The launch of Dacia will enable us
to offer a new line of cars which will be
complementary to the current Renault
range.”
“Dacia offers reliable, spacious cars fitted
with modern equipment at very affordable
prices. We will definitely find our place in
the Israeli market,” noted François Mariotte,
Sales & Marketing Director of Dacia. “Our
simple, clear customer promise will help
Dacia to build trust-based relationships in
this new market.”
In the new Dacia showroom, customers
can now place their orders for the new Dacia
Duster, Sandero Stepway, Lodgy and Dokker.
As in every other country, Dacia vehicles are
sold with a three-year/100,000km warranty.
Following on from the UK, Ireland,
Denmark, Norway, Cyprus and Malta in 2013,
Israel will be the Dacia brand’s 44th national
market. 
Key Chinese licensee continues
relationship with MAN
PSA Peugeot Citroën generated a
€4.721 billion trade surplus for France
in 2014
6 February 2015 | OEM
Thanks to its solid manufacturing base
in France, PSA Peugeot Citroën has once
again made a positive contribution to
France’s trade balance, with a surplus of
€4.721 billion and a net export volume of
310,000 vehicles.
Representing a 5.3% increase on 2013,
this performance ranks PSA Peugeot Citroën
6
as the country’s third leading exporter.
With more than 971,000 vehicles
produced in France in 2014, PSA Peugeot
Citroën is on track to meet its commitment
under the New Social Contract with French
trade unions to produce one million vehicles
in France in 2016.
To keep its strong manufacturing base in
France, PSA Peugeot Citroën has undertaken
an ambitious plant modernisation project,
which involves optimising logistics, making
facilities more compact and streamlining
processes, in order to improve overall
production efficiency.
“The PSA Back in the Race plan is
important for the company, its employees
and its shareholders, but it’s also important
for France because PSA is a major player in
the economy,” said Carlos Tavares, Chairman
of the PSA Peugeot Citroën Managing Board.
“This is why we’re dedicated to boosting the
competitiveness of our plants in France,
every single day.” 
6 February 2015 | OEM
At a ceremony in Beijing on 2 February 2015,
MAN Diesel & Turbo renewed its contract
with Chinese two-stroke licensee, China
State Shipbuilding Corporation (CSSC).
The agreement runs for the next 10
years and covers the production of lowspeed engines at CSSC affiliates: CSSC –
MES Diesel Co., Ltd (CMD), Hudong Heavy
Machinery Co., Ltd (HHM) and CSSC Marine
Power Co., Ltd (CMP).
Klaus Engberg, Senior Vice President and
Head of MAN Diesel & Turbo Two- Stroke
Licensing said: “We have enjoyed a long,
close cooperation with our Chinese partner,
CSSC, that stretches all the way back to
1980. Over the years, CSSC has produced
all sizes of MAN Diesel & Turbo engines, and
was notably quick to embrace our ultra-longstroke G-engine.”
www.automotivepurchasing.com
Engberg added: “We view our relationship
with CSSC as pivotal to our success in
giving Chinese customers access to our
technology. Accordingly, we are very happy
and proud today to be able to officially
announce the continuation of our excellent
business relationship for the next decade.”
Notable MAN Diesel & Turbo attendees at
proceedings in the Chinese capital included
Dr. Uwe Lauber – CEO, Thomas Knudsen,
Head of Low Speed, Ole Grøne – Senior Vice
President, Low-Speed Sales and Promotions,
Klaus Engberg – Senior Vice President and
Head of Two-Stroke Licensing, Götz Kassing
– Managing Director, Shanghai, as well as
other representatives from MAN Diesel &
Turbo’s Shanghai office.
CSSC was represented by Wu Qiang, Vice
President, and the respective Presidents
from its engine-building affiliates. 
Suzuki Celerio recalled following brake mishap
6 February 2015 | OEM
Following tests by What Car? and Autocar
magazines where the Celerio’s brakes failed
mid-test, Suzuki has released a statement
stating that the car will be recalled in UK,
Ireland, Australia and New Zealand.
Suzuki released a statement saying:
“Following a condition experienced when
carrying out an emergency braking test
by a journalist from Autocar magazine on
the 30th January, Suzuki carried out an
immediate investigation into the cause of
this condition.
“As a direct result of this investigation and
with immediate effect, Suzuki is recalling its
UK Celerio models that went on official sale
to the public on February 1st. This safety
recall relates to retraction of the brake pedal
and affects Right Hand Drive vehicles for
UK, Ireland, Australia and New Zealand. It
does not affect left hand drive vehicles or
other right hand drive markets.
“Suzuki is directly contacting its customers
via its dealer network and will be providing a
loan vehicle to them until full safety checks
have been completed. As UK sales of the
Celerio model have now been temporarily
suspended, this of course applies to press
vehicles.
“The condition was experienced during
an emergency brake test from very high
speed and was conducted several times on
a private road test facility. This test forms a
part of the full test procedure carried out by
What Car? and Autocar magazines.” 
The truth behind the Chrysler bailout
6 February 2015 | OEM
Gualberto Ranieri, Senior Vice President
Communications
at
Fiat
Chrysler
Automobiles (FCA) cleared the baseless
allegations made against the group’s chief
Sergio Marchionne in his blog post.
Time has come to once and for all put to
bed the urban legend that “Fiat SpA’s Sergio
Marchionne gained control of Chrysler
without spending a single dollar.”
Let’s set the record straight and not
purposely forget such essential facts as: a)
in June 2009, Chrysler’s value was zero, to
say the least; b) at that time, nobody was
lining up in front of Chrysler’s Auburn Hills,
Michigan, headquarters interested in buying
a single stake in the automaker; c) since
2009, Fiat has made massive investments
into Chrysler, including contributing its
intellectual property and welcoming tens
of thousands of dedicated new hires into
the fold. And can we, at long last, refrain
from referencing the all-too-frequent, selfcentered and hilarious interpretations of
Chrysler by – among others – a failed
contestant of the lengthy and highlypublicized three-way succession race for
the coveted high throne at GE.
Fiat S.p.A. paid more than $5.6 billion to
acquire the full ownership of Chrysler Group
LLC, recently renamed FCA US LLC.
In detail, Fiat paid: $1.268 billion for an
incremental equity call option, to acquire
16% of Chrysler; $500 million for the 6%
formerly owned by the U.S. Treasury; $125
million to acquire the 1.5% formerly owned
by the Canadian governments; $75 million
to purchase the rights under an equity
recapture agreement; and $3.65 billion to
purchase the final 41.5% of equity interests
in Chrysler Group that had been held by the
UAW Retiree Medical Benefits Trust, also
known as the VEBA.
Additionally, please note that Ron Bloom,
formerly a special assistant to President
Obama, in an interview with Detroit radio
personality Paul W. Smith, stated: “When
Chrysler, the new company, says: We paid
back every penny we borrowed − that is 100
percent correct.”
This is the truth, plain and simple. All the
rest is fiction, urban myth with the added and
unsavory flavor of intellectual dishonesty. 
Further expansion of global
production network: Mercedes-Benz
breaks ground for new passenger
cars plant
6 February 2015 | OEM
Mercedes-Benz
has
celebrated
the
groundbreaking ceremony for a new
passenger cars plant in Brazil and thereby
continues to further expand its global
production network.
The new Mercedes-Benz plant in
Iracemápolis near São Paulo will start
production of the C-Class in the first quarter
of 2016, and production of the GLA compact
SUV will follow in the middle of the year.
“Local production will even better allow
us to tap the potentials of the emerging
Brazilian market and to respond more
flexibly to the wishes of our customers. In
the first stage, we are aiming for an annual
capacity of 20,000 vehicles. If the market
will develop as hoped for, the plant has the
potential for a further significant expansion
in the future,” said Markus Schäfer, Member
of the Divisional Board Mercedes-Benz
Cars, Manufacturing and Supply Chain
Management, on the occasion of the
groundbreaking ceremony.
The event was attended by numerous
guests of honor from the areas of politics,
administration, and economy as well as
Philipp Schiemer, President of MercedesBenz do Brasil and CEO Latin America, and
Dimitris Psillakis, Head of Passenger Cars
Sales, Mercedes-Benz do Brasil.
Mercedes-Benz is investing a total of BRL
500 million in the Iracemápolis plant with an
annual capacity of 20,000 vehicles. Until the
start of production, about 600 new jobs will
be created at the plant. In addition, some
3,000 jobs are expected to be generated in
the region predominantly with suppliers and
service providers.
“With the new Mercedes-Benz plant in
Iracemápolis, we will be the only company
producing the full vehicle range in Latin
America – from passenger cars and
vans to trucks and buses. The new plant
in Iracemápolis is further proof to our
commitment to Brazil. It also demonstrates
we keep on investing to fulfil the wishes of
our customers in the best possible manner.
We are positive about the potentials of
the Brazilian passenger cars market,” said
Philipp Schiemer.
In terms of selection and recruitment of its
employees, Mercedes-Benz is cooperating
with SENAI, the Brazilian national service
for industrial training, which has more than
800 training centers nationwide. SENAI has
set up a new training center in Iracemápolis
that will start training in the first half of 2015
already. The recruitment process with a
focus on the Iracemápolis region will start in
the second quarter of 2015.
“Together with SENAI, we want to recruit
the best people for our plant. Additionally, we
will send selected employees to our existing
plants in Juiz de Fora, Germany, Hungary,
and India, for targeted trainings. With
this, we are ensuring the high MercedesBenz quality standards,” explained Markus
Schäfer.
The Iracemápolis plant’s level of
automation will be significantly lower than in
traditional Mercedes-Benz plants. “Machines
don’t develop, build, or sell cars –people do.
That’s why our focus is on our employees.
With this approach, Iracemápolis will be
one of the most flexible plants in our global
production network, indicating our future
trend,” said Schäfer. 
Are you one of America’s Best?
www.automotivepurchasing.com
Nominate Now...
7
The new MINI: the new original is now
the new “Value Master” too
Ford invests $2.6
billion in Valencia
operations
6 February 2015 | OEM
Ford announced it is completing the final part of a $2.6 billion investment in its Valencia,
Spain, manufacturing operations, transforming it into one of the world’s most advanced,
flexible and productive auto plants.
6 February 2015 | OEM
Once again, the best investment on four
wheels is a MINI. This was the result
arrived at by automobile magazine “Auto
Bild”, which has published the new “Value
Master” ranking in its latest issue.
With the new MINI Cooper 5 door, the
British premium brand not only provides
the “Value Master 2015” in the small car
category but also the overall winner of all
categories. This means that the five-door
and five-seater body version of the new
original in the premium small car segment
is the model that offers the longest-lasting
value on the German automobile market.
The “Value Master” title is based on a
forecast compiled by experts at the market
research institute Schwacke that looks at the
price that can be obtained in four years’ time
for a car that was newly registered in 2015.
An assessment is drawn up for each model
that includes not just purchase price and
vehicle properties but also numerous other
factors such as running costs, time of market
launch, brand image and the competitor
situation within the segment as well as
current trends in the automobile market
and general economic developments. This
analysis is used to determine which models
offer the most lasting value in 13 vehicle
categories.
The new MINI Cooper 5 door takes over
from the MINI Cooper S Countryman as
the “Value Master 2015” in the small car
segment, the latter having achieved the
top ranking in 2014. In so doing it carries
forward the success of the brand, which has
dominated the small car category ever since
2005 with models such as the predecessor
to the new MINI Cooper 3 door and the MINI
Convertible, as well as regularly coming
first in the overall ranking. The current
forecast gives the new MINI Cooper 5 door
an estimated resale value of 65.6 per cent
of the original price. This is the highest
percentage residual value of all models
analysed this year.
The “Value Master” ranking is an
important decision-making aid to potential
new car buyers. It indicates which models
exhibit less difference between their original
price and resale value and can therefore
be regarded as a sound investment. The
stability forecasts for MINI models are always
especially favourable, showing that the
original in the premium small car segment is
highly popular in the used car market, too.
The success of the new MINI Cooper 5 door
shows that this tendency applies likewise to
the latest model generation.
The new MINI Cooper 5 door (combined
fuel consumption: 4.8 - 4.7 l/100 km,
combined CO2 emissions: 111 – 109 g/km) is
powered by a 100 kW/136 hp 3-cylinder spark
ignition engine of the latest generation with
MINI TwinPower Turbo Technology. It sprints
in 8.2 seconds from zero to 100 km/h and
is also optionally available with a 6-speed
Steptronic transmission. After the market
launch of the new MINI One First 5 door in
March 2015, there are now a total of seven
engine types available for this model, too
- four petrol and three diesel. They provide
hallmark brand driving fun and exemplary
efficiency in the new MINI 5 door, which also
offers increased functionality and comfort
with a wheelbase extended by 72 millimetres
as compared to the new MINI 3 door, two
additional doors and three seats at the rear.
This makes the unmistakable MINI feeling
attractive to additional target groups - and
with particularly long-lasting value, too. 
Find us online...
www.facebook.com/autopurchasing
www.twitter.com/AutoPurchasing
8
The investment by Ford is the largest
in the history of Spanish auto industry and
will allow the Valencia plant to increase
vehicle production by 40% this year to about
400,000 vehicles, and will have the capacity
to potentially build up to 450,000 vehicles
a year.
Valencia also is today one of Spain’s
top automotive exporters, with 80% of its
production being exported worldwide.
Ford now employs about 8,000 people
at the facility, up from just below 5,000 in
early 2013. Supplier operations supporting
Valencia production also have added 1,500
jobs since 2013.
“This world-class facility will help Ford’s
accelerate its growth in Europe and around
the world,” said Mark Fields, Ford President
and Chief Executive Officer. “Valencia
is not only a major hub of production –
building vehicles and engines exported
to 75 countries worldwide – but also a
centre of innovation employing some of
the industry’s most advanced lean, flexible
and environmentally friendly manufacturing
processes.”
In 2015, Valencia will build six Ford
nameplates and even more body styles. The
plant currently builds the all-new Mondeo
wagon, five-door, and four-door including
the Mondeo Hybrid, Kuga SUV, Transit
Connect light commercial vehicle and
Tourneo Connect people-mover. The all-new
S-MAX multi-activity vehicle, Galaxy sevenseat people-mover and the Vignale Mondeo
go into production later this year.
The investment consisted of an initial
$1.25 billion announced in 2011, followed by
a further $1.37 billion since 2013. Valencia
will be the sole European production source
for all six Ford nameplates assembled at the
plant.
Flexible, modern and efficient
The Ford Valencia facility has produced
more than 11 million vehicles and 15 million
engines since production started in 1976.
The plant was officially opened by King
Juan Carlos and Henry Ford II helping Spain
emerge from decades of isolation from the
global economic stage.
Almost 40 years later, the plant is at the
forefront of Ford’s plan to accelerate the
pace of the progress on its One Ford plan,
deliver product excellence and incorporate
innovation into every part of the business.
A new 89,000 m2 bodyshop constructed
over nearly eight months raises the plant’s
vehicle production capability to about 2,000
units per day. For production of Mondeo and
Mondeo Hybrid, the plant was retooled to
deliver an industry-first application of hydroformed high strength steel.
www.automotivepurchasing.com
Ford has constructed an additional
paint shop, installing automated paint
processes that remove the need for paintdrying between application stages, and dirt
detection technology. This improves quality
while delivering energy and productivity
savings.
New assembly line processes make
Valencia among Ford’s most efficient
facilities, essential to managing the
increased complexity of producing more
models and derivatives than any Ford facility
in Europe. For example, in line with the global
Ford Production System, all production
components are now transported alongside
the vehicle in a pre-assembled kit, saving
time and effort.
Since 2011 more than 900 new robots have
been installed in the Valencia bodyshops,
and 34 in the final assembly areas to help
deliver the highest quality standards. Nearly
600 highly skilled engineers are involved
in supporting the high-tech production
processes in Valencia.
“Mondeo, S-MAX and Galaxy will grow the
number of parts we manage from 7,000 to
18,000, requiring some fresh and innovative
solutions,” said Tony Ades, operations
manager, Valencia. “Strong relationships
with unions and local government have been
essential to developing a flexible facility
that can respond quickly and efficiently to
changes in demand for our vehicles, with a
highly trained and motivated workforce able
to operate across our assembly lines.”
Last year, the plant contributed to Ford’s
sustainability goals by recycling 3,850
tonnes of wood, paper and cardboard, and
by improving its efficiency in water and
electricity consumption per car by three per
cent.
Vignale Center
Valencia will in 2015 also complete a
new Vignale Center, a specially-created
department dedicated to ensuring exacting
levels of quality and fulfilling customer
expectations of Ford’s new upscale Vignale
product and ownership experience.
Vignale debuts this year with the Ford
Vignale Mondeo, and each vehicle will pass
through an additional sign-off process where
trained experts will assess criteria including
paint finish and panel alignment assisted by
the latest laser and camera technology.
“Ford is the engine behind automotive
industry growth in Spain,” said Jose Machado,
chairman, Ford of Spain. “The combination
of innovative product, forward-looking
investment, strong local relationships,
and hardworking, flexible employees will
continue to deliver meaningful progress in
improving our overall business in Europe.” 
FCA Mexico inaugurates new Mopar Borgward’s homecoming: The return
Parts Distribution Center in Toluca,
of a legend
Mexico
6 February 2015 | OEM
FCA Mexico has opened a new Mopar Parts
Distribution Center in Toluca, Mexico.
The new facility will store and distribute
more than 65,000 service parts offered to
FCA Mexico’s customers and the Mopar
Dealer Network in Mexico.
The inaugural event was hosted by Bruno
Cattori, President and CEO of FCA Mexico;
Pietro Gorlier, President and CEO of Mopar
Service, Parts and Customer Care for Fiat
Chrysler Automobiles and Eruviel Avila,
Governor of the State of Mexico.
The new Mopar Distribution Center
expands over 484,375 square-feet.
“It is an honor to inaugurate this new
Mopar Parts Distribution Center in Toluca
and continue to invest in the state of Mexico,
where we as FCA Mexico have been
present since 1968 with our Assembly Plant.
This facility is a cornerstone for Fiat Chrysler
Automobiles, and is a prime indicator of the
region’s growth, strong supplier network and
overall improvement of the competitiveness
of Mexico in the automotive industry’s
global scope,” said Bruno Cattori, President
and CEO of FCA Mexico.
The new Mopar Parts Distribution Center
will fulfill shipments throughout Mexico and
has the capacity to distribute 6,500 items.
The Distribution Center will employ two
shifts, creating 97 jobs.
“This new facility is the result of a
$13-million investment in infrastructure
and equipment, and is another clear
demonstration
of
our
company’s
commitment with Mexico,” said Pietro
Gorlier, President and CEO - Mopar Brand
Service, Parts and Customer Care, FCA Global. “This Distribution Center adequately
meets the demanding process and logistics
established by Fiat Chrysler Automobiles.
These global processes will make it possible
for our customers in Mexico to benefit from
a faster and more efficient level of attention
and service,” he said. 
Jaguar Land Rover reports third
quarter results for 2014/15 fiscal year
5 February 2015 | OEM
Jaguar Land Rover has today reported its third quarter results for the 2014/2015 fiscal year.
Retails of 111,525 vehicles in the quarter
generated £5,879 million of revenue, up
£551 million compared to a year ago.
Earnings
Before
Interest,
Taxes,
Depreciation and Amortisation(EBITDA)
were £1,096 million for the quarter, up £79
million from a year ago with an EBITDA
margin of 18.6 per cent, in line with increased
revenue.
Profit Before Tax was £685 million for
the quarter, down £157 million on the prior
year due to the effect of unfavourable
revaluation of foreign currency debt and
hedges, as well as higher depreciation and
amortisation. In the fiscal year-to-date Profit
Before Tax was £2,218 million, £293 million
up on the previous year.
Commenting on the results, Jaguar Land
Rover Chief Executive Officer, Dr. Ralf Speth
said: “This quarter has seen robust financial
performance, further underpinning our ongoing investment in new product creation,
capital expenditure and our international
expansion strategy. With the official
opening of new world-class
facilities in China
and UK and the
start of construction
in Brazil, Jaguar
Land Rover is wellpositioned to deliver
more great vehicles
to our customers
globally.” 
5 February 2015 | OEM
The legendary German car brand Borgward
returns to the international automotive
industry
Borgward, one of the most innovative
brands in car history, returns to the circle of
internationally renowned car manufacturers
after more than 50 years. On 3rd March 2015,
the company will announce its exciting plans
for the future and present its new business
model to global media at the 85th Geneva
International Motorshow.
From 1919 to 1961, the Borgward Group
wrote automotive history. As one of
Germany’s largest and most successful
car manufacturers of its time, Borgward
created some of the most iconic cars of the
early 20th century as well as a large range
of commercial vehicles, trucks, buses, fire
engines, boats, electric cars, sports cars and
even helicopters. Innovation and bold ideas
were always at the heart of the Bremen
based company steered by the visionary
entrepreneur Carl F.W. Borgward who
continuously pioneered technical novelties
that set new standards in the industry.
The 1949 Borgward Hansa 1500 was the
first German sedan with an aerodynamic
pontoon body, the precursor of modern
automotive styling. The Borgward Isabella
TS of 1955 was the first road car combining
the comfort of a family limousine with the
agility and performance of a sports car. The
Borgward P100 of 1959 was the first German
passenger car featuring a revolutionary selfleveling air suspension. From 1950 to 1958
Borgward was also active in international
motorsport. With the Borgward Hansa 1500
the team successfully competed in various
racing series such as the famous 24 Hours
of Le Mans, 1,000km of Nurburgring, Carrera
Panamericana and the race of Montlhéry
were it broke 12 records overall.
Thirty years of innovative design,
a production of more than one million
vehicles retailed worldwide combined with
the success of such automotive icons as
the famous Isabella have driven Christian
Borgward, grandson of Carl F.W. Borgward
and President of Borgward AG, to plan the
revival of the legendary brand. “Relaunching
Borgward is a childhood dream come true
for me”, says Borgward, inspired by the
unique heritage of his grandfather’s legacy.
Together with his partner Karlheinz L. Knöss
and a team of highly skilled experts all over
the world, Borgward has been working over
a decade on the rebirth of the brand and his
vision of turning it into a modern, profitable
and world-class global car company again.
“We began shaping and designing the future
of Borgward nearly ten years ago and are
now ready for the next step. Incorporating
the values and cutting-edge technologies
that Borgward stood for, combined with our
ambition, drive and commitment to succeed,
I believe we are now perfectly placed to open
up this new chapter in Borgward’s history”,
says Knöss. “Geneva is an important step
into our promising future and we cannot wait
to be back there”.
The Salon de l’Automobile de Genève –
one of the most prestigious car shows of
the year – is the place where the Borgward
Hansa 1500 was unveiled in 1949 as the very
first automobile construction after the war. 
Are you one of America’s Best?
www.automotivepurchasing.com
Nominate Now...
9
Komatsu America launches the new
PC360LC-11 hydraulic excavator
5 February 2015 | OEM
Komatsu America has introduced the
PC360LC-11 hydraulic excavator. With a
net horsepower of 257 hp. (192 kW), the
PC360LC-11 is powered by a Komatsu
SAA6D114E-6 engine, which is EPA Tier 4
Final emissions certified.
Komatsu’s Tier 4 Final engines are built
on the solid foundation that started in 1996
with the introduction of Komatsu’s first
Tier 1 engine. The culmination is today’s
Tier 4 Final engine that is productive,
dependable and efficient. This new
excavator leverages Komatsu’s leadership
in technology and innovation by delivering
a more environmentally friendly engine that
provides high levels of performance while
reducing operating costs and improving
fuel efficiency.
With an operating weight between
78,645 lbs. (35,627 kg) and 80,547 lbs.
(36,535 kg), the PC360LC-11 has upgraded
cab features and an enhanced power
mode for greater productivity and lower
cost per ton. The excavator is equipped
with the latest KOMTRAX® technology,
which relays data such as fuel levels, Diesel
Exhaust Fluid (DEF) levels, operating hours,
location, cautions and maintenance alerts.
A new Operator Identification System
reports key operating information for
multiple operators, and the new Auto Idle
Shutdown function helps reduce idle time
as well as operating costs.
Komatsu EPA Tier 4 Final emission
certified engine – productive, dependable,
efficient
Komatsu’s proven Tier 4 Interim
foundation integrates a Selective Catalyst
Reduction (SCR) system using DEF to
meet EPA Tier 4 Final emission regulations
for NOx emissions. The engine uses an
advanced electronic control system to
manage the air-flow rate, fuel injection,
combustion parameters, and after treatment
functions to optimise performance,
reduce emissions, and provide advanced
diagnostic capability. Komatsu continues
to use its Komatsu Variable Geometry
Turbocharger (KVGT) and an Exhaust
Gas Recirculation (EGR) valve for precise
temperature and air management control
as well as longer component life.
For reliability and durability in demanding
conditions, Komatsu developed the entire
10
Porsche and Michelin raise the bar of
performance driving
system, including the control software
that is critical to the effective operation of
the aftertreatment system. Additionally,
the control system is integrated into the
machine’s on-board diagnostics systems
and KOMTRAX, Komatsu’s standard
telematics system.
Highly Efficient Hydraulic System
All major components on the new
PC360LC-11 including the engine, hydraulic
pumps, motors, and valves are exclusively
designed and produced by Komatsu. This
integrated design uses an efficient closed
center load sensing hydraulic system and
features a new enhanced power mode for
improved performance and reduced cycle
times.
Operator Environment
The PC360LC-11 cab provides a
more comfortable and quieter work
environment. The ISO 12117-2 ROPS
certified cab, specifically designed for
hydraulic excavators, gains strength from
a reinforced box structure framework.
The cab is mounted on viscous isolation
dampers that provide low vibration levels. A
standard heated air suspension high back
seat with new fully adjustable armrests
provides improved comfort. In addition to
the standard AM/FM stereo radio, a remote
located auxiliary input for connecting
external devices is provided to play music
through the cab speakers. Additionally
there are two 12-volt power ports
incorporated into the cab, and optional
joysticks are available with proportional
controls for attachment operation.
For global support, the high-resolution
7” LCD color monitor features enhanced
capabilities and displays information in
33 languages. The operator can easily
select up to six working modes to match
machine performance to the application.
The monitor panel provides information on
DEF fluid level, Eco guidance, operational
records, fuel consumption history, and
utilization information. A new display
interface combines vehicle information with
a wide landscape view from the standard
rearview camera so the operator can easily
view the working area directly behind the
machine. 
4 February 2015 | OEM
Porsche Cars North America named
Michelin the official tyre partner of its new
Porsche Experience Centers which are
slated to open this year in Atlanta and then
later in Los Angeles.
The centers will allow one-on-one
instruction on unique Porsche test track
modules and off-road courses that are
purpose built to demonstrate the power,
responsiveness and stability at the core of
Porsche engineering.
Michelin and Porsche have a long history
of success and performance records with
victories at the 24 Hours of Le Mans, 24
Hours of Nurburgring and the Paris to Dakar
Rally. The two historic companies have
also teamed up to shatter the Nurburgring
production car lap record and are currently
technical racing partners in the TUDOR
United Sports Car Championship.
“This is an innovative approach and
we are excited to have Michelin onboard
as our long standing partner,” said Andre
Oosthuizen, Vice President of Marketing for
Porsche Cars North America. “Automotive
enthusiasts can experience Porsche and
Michelin at their best in a controlled dynamic
environment.”
The Porsche Experience Centers will
feature a wide range of driving experiences
as well as a Human Performance Center,
Driving Simulators, a fine dining restaurant
and business meeting facilities. Vehicles
expected to be used on site include the
911, Boxster, Cayman, Cayenne, Macan and
Panamera.
“The Michelin and Porsche relationship
offers an incredible history of innovation
and technological development that goes
back decades,” said Pierre Barrard, director
of marketing, Michelin North America. “The
Porsche Experience Center will provide
consumers an opportunity to see this
partnership first hand as they push the
limits of their abilities and experience these
amazing vehicles.”
In addition to experiencing Porsche
vehicle performance with Michelin tires,
visitors to the Porsche Experience Center
will notice Michelin and its iconic Michelin
Man present throughout the venue. Plans
include a Michelin Man air inflation station,
track signage and on-vehicle logos. 
Aerodynamically optimised, the
McLaren 675LT stays true to the icon
4 February 2015 | OEM
The 675LT, the first McLaren in nearly
two decades to wear the LT – or ‘Longtail’
– name, will stay true to the spirit of its
iconic predecessor with aerodynamically
optimised, dramatically enhanced styling
that results in 40% more downforce than
the 650S which it will sit alongside in the
McLaren Super Series.
A total power output of 675PS (666bhp),
and torque figure of 700 Nm (516 lb ft) plus
a focus on weight saving will ensure an
electrifying, engaging and visceral driving
experience.
These output figures are produced by
a heavily revised 3.8-litre twin turbo V8
featuring lightweight components and
new turbos. A controlled torque delivery
of 600Nm (443 lb ft) ensures optimised
acceleration and traction from a standing
start in first gear, rising to the full 700Nm
available from 5,500-6,500 rpm, through
www.automotivepurchasing.com
each of the other gears. A redesigned
crossover exhaust system, bespoke to the
675LT, is formed from lightweight titanium.
Two circular titanium exhaust pipes exit
centrally through exposed bodywork below
the rear ‘Longtail’ Airbrake. The new system
is designed to optimise performance and
reduce weight – another pillar of the LT
ethos.
Available as a coupé only, the 675LT will
join the core range of McLaren supercars
later this year as a more track focused
alternative to the established 650S Coupé
and Spider. Together, they form the newly
named McLaren Super Series which sits
above the recently announced Sports Series
in the range.
Further details of the McLaren 675LT,
including its startling performance figures,
will be released with the car’s global debut
at the 85th International Geneva Motor
Show, on Tuesday 3 March 2015. 
Ford announces new
research collaborations
driving innovation in
mobility and autonomous
vehicles
5 February 2015 | OEM
Ford
announced
new
research
collaborations driving innovation in mobility
and autonomous vehicles to help solve
future global transportation challenges.
This month, the Ford European Research
& Innovation Centre, Aachen, Germany, and
the Technology and Innovation Management
Institute of RWTH Aachen University launch
the Personal Mobility Experience Innovation
project.
The project aims to identify the features,
technologies, services and solutions that
could enable Ford to meet customers’
changing preferences and expectations
for personal mobility and to help address
societal challenges such as traffic congestion
and environmental issues.
“Without question, we are embarking
on one of the most transformative eras
in the history of the auto industry – and in
the history of Ford,” said Mark Fields, Ford
president and chief executive officer, during
a keynote address to the International CAR
Symposium in Bochum, Germany. “This can
be a threat or an opportunity. We see it as
an opportunity to provide real solutions and
exciting new products for millions – and
ultimately help change the way the world
moves.”
Ford also this year is contributing to the
UK Autodrive initiative that is researching
how driverless and connected cars can be
integrated into everyday life.
Both of these projects are elements of
Ford Smart Mobility announced earlier this
year to foster innovation in the areas of
connectivity, mobility, autonomous vehicles,
the customer experience and big data.
Changing the future of mobility
The Personal Mobility Experience
Innovation project brings experts from
Ford and the University together to study
business models from a range of industries
and the transformations made by other
innovators, to learn how they could be
applied to the automotive industry and help
deliver mobility solutions.
Ford will look at examples such as Apple
and Amazon – who have expanded from
being single product and service providers
to delivering a wide range of hardware
and software platforms and services. The
project will identify how such approaches
could deliver enhanced car-ownership
experiences; new approaches to car-sharing
and personalisation of mobility solutions;
and create innovative features and new
business opportunities.
“This is an exciting time because while we
are confronting real challenges to mobility
as the world becomes more crowded and
urbanised, we are also in the midst of a
technological sea change that will help
us find solutions,” said Pim van der Jagt,
executive technical leader, Ford Research
& Advanced Engineering. “This project is
about tapping into the best thinking from
other industries and sectors to deliver new
mobility solutions.”
Four megatrends are driving the company’s
thinking around innovation in mobility:
■■ Urbanisation – By 2030, at least 41
megacities with populations of more
than 10 million people are anticipated
worldwide compared to 28 today, placing
pressure on existing road infrastructures
and creating a need for smarter cars,
smarter roads and smarter cities
■■ Rapid growth of the global middle class –
Experts suggest the global middle class
will double in size to 4 billion by 2030.
Many in this growing middle class will
aspire to own a car, creating an obligation
for automakers to address potential global
gridlock
■■ Air quality issues – Increasing numbers of
vehicles create the need for automakers
to address air quality issues with more fuel
efficient and alternative powertrains
■■ Changing consumer attitudes – Younger
generations have different mobility habits
– especially in Europe where integrated
urban transit systems provide a credible
alternative to car-ownership – creating a
need for automakers to rethink how they
remain relevant
Autonomous cars
Ford also today announced that during
2015 it will contribute to the UK governmentsponsored UK Autodrive initiative.
Ford
will
work
alongside
other
manufacturers to study how driverless
and connected cars can be integrated into
everyday life, and will provide two prototype
cars with vehicle-to-vehicle communication
capability to help test an innovative public
transport system.
Vehicle-to-vehicle
and
vehicle-toinfrastructure connectivity technologies
such as those tested in real-world urban
environments during the UK Autodrive
initiative, also will contribute to the
development of fully autonomous vehicles.
Ford’s semi-autonomous vehicle features
that are available today include Lane
Keeping Aid, Adaptive Cruise Control, PreCollision Assist with Pedestrian Detection
and Active Park Assist – with Traffic Jam
Assist coming.
A fleet of fully autonomous Ford Fusion
Hybrid research vehicles is undergoing
further development and ongoing road
testing as Ford shifts its autonomous vehicle
efforts from a research program into a
vehicle development program. The vehicles
use the same semi-autonomous technology
available in Ford vehicles today, while adding
four LiDAR sensors to generate a real-time
3D map of the surrounding environment.
The vehicle can sense objects around it
using the LiDAR sensors, and uses advanced
algorithms in concert with high fidelity
maps to help it determine where vehicles
and pedestrians are located and to predict
where they might move.
“At Ford, we view ourselves as both a
mobility and an auto company, as we drive
innovation in every part of our business,”
said Fields. “These new collaborations will
help us better understand and anticipate
customers’ wants and needs, especially
on connectivity, mobility and autonomous
vehicles. We are working to make these new
technologies accessible to everyone, not
just luxury customers.” 
BMW Group records 6.8%
sales rise in the US
4 February 2015 | OEM
Sales of BMW brand vehicles increased 4%
in January for a total of 18,981 compared to
18,253 vehicles sold in January, 2014.
“Coming after a record December and
a record 2014 year-end result, the January
numbers are a solid start for the new year
and I am confident the trend will accelerate
in the months ahead,” said Ludwig Willisch,
President and CEO, BMW of North America.
“I am especially pleased that MINI is again
showing its strength as availability of its new
models improves.”
In January, notable vehicles sales
included the BMW 3 and 4 series which
increased 13.2% to 7,348 vehicles, the BMW
7 series increased 10.8% to 637 vehicles
and the BMW X5 increased 16.7% to 3,214
vehicles.
BMW Group Sales
The BMW Group in the US (BMW and
MINI combined) reported January sales of
22,209 vehicles, an increase of 6.8% from
the 20,796 vehicles sold in the same month
a year ago.
MINI Brand Sales
For January, MINI USA reports 3,228
automobiles sold, an increase of 26.9% from
the 2,543 sold in the same month a year
ago. 
Mitsubishi extends streak
with January sales results
4 February 2015 | OEM
Mitsubishi continues its sales momentum
with January 2015 vehicle sales of 6,493
units, a 33.4% sales increase from January
2014.
MMNA ended 2014 with a nearly 25%
sales increase over the previous year and
January marks the brand’s 11th consecutive
month of year-over-year sales increases.
The Mirage 5-door subcompact scored its
best-ever month of sales since the vehicle
was introduced in 2013 with 1,705 units
sold. Outlander Sport continues to be the
brand’s top-selling model recording 2,267
units sold, up 23.3% year-over-year with its
best ever January. Sales of the Outlander
crossover climbed to 1,003 units, up 6.6%
and represented its best January sales
month since 2007. The Lancer compact
www.automotivepurchasing.com
sports sedan demonstrated excellent
momentum with sales of 1,515 units, a 68.3%
increase from January 2014 and the fourth
consecutive month of year-over-year sales
increases.
“After finishing 2014 with sales up nearly
25% over the previous year, we are off
to a phenomenal start in 2015,” said Don
Swearingen, Executive Vice President
MMNA. “The Mirage had its best-ever sales
month, Lancer sales are up significantly,
Outlander Sport continues to lead the
way and Outlander maintains solid sales
traction.” 
11
Fords adds 1,550 jobs to support
demand for all-new F150
4 February 2015 | OEM
As Ford ramps up production of the allnew F-150, the company announced it will
add 1,550 new jobs across its Kansas City
Assembly, Dearborn Stamping, Dearborn
Diversified and Sterling Axle facilities in the
first quarter of 2015.
The new jobs will support production and
growing customer demand for the recently
launched 2015 Ford F-150.
With these new jobs, Ford has reached
its entry-level allowance outlined in the 2011
UAW-Ford collective bargaining agreement.
As a result, approximately 300 to 500
workers – the first group of “new traditional”
employees – will transition, based on
attrition and growth, from their entry-level
wage of $19.28 an hour to their new wage
of $28.50 an hour. The majority of these
employees work at Kansas City, Chicago
and Louisville assembly facilities.
“Thanks to stronger than expected
customer demand, we’re adding 1,550
new workers to support additional F-150
production,” said Joe Hinrichs, Ford
president, The Americas. “These jobs are
further proof that customers recognize the
all-new F-150 as the toughest, smartest,
most capable F-150 ever. We sell every truck
we can build, and we plan to build more.”
Of the 1,550 new jobs, 900 are allocated
for Kansas City Assembly and 500 will be
added between Dearborn Stamping and
Dearborn Diversified, with the remaining 150
jobs going to Sterling Axle. These jobs are in
addition to the more than 5,000 hourly jobs
Ford added across its U.S. manufacturing
facilities in 2014.
“This is very exciting news and these
additional jobs will have an impact in
communities all across our nation,” said
Jimmy Settles, UAW vice president and
director, National Ford Department. “This
also represents a major milestone for
employees hired under the entry level
agreement, as many will now begin to
convert to ‘new traditional’ wage status, as
negotiated in the 2011 collective bargaining
agreement.”
The entry-level agreement negotiated
as part of UAW-Ford collective bargaining
has helped improve Ford’s competitiveness
and enabled the company to invest more
than $6.2 billion in its U.S. manufacturing
facilities. Ford has hired more than 15,000
hourly UAW members – exceeding its goal
of creating 12,000 hourly jobs in the United
States by 2015.
12
Toughest, smartest, most capable F-150
ever
The all-new F-150 is the toughest,
smartest and most capable F-150 ever –
boasting a military-grade, aluminum-alloy
body and high-strength steel frame, and
shedding up to 700 pounds for a lighter,
more efficient truck than any previous F-150.
These weight savings lead to customer
benefits regardless of model configuration
or engine choice. The innovative new truck
can tow up to 1,100 more pounds and haul up
to 530 more pounds than the 2014 model,
and has the highest EPA-estimated fuel
economy ratings of any full-size gasoline
pickup on the market. When equipped with
an available 2.7-liter EcoBoost® engine,
the new F-150 4x2 has EPA-estimated fuel
economy ratings of 19 mpg city, 26 mpg
highway and 22 mpg combined. Actual
mileage may vary.
Numerous groundbreaking features
debuted in the all-new F-150, including
these class-exclusives:
360-degree camera view uses exterior
cameras to create a bird’s-eye view of the
truck to help drivers park, maneuver in tight
spots, and navigate narrow roads and trails
Integrated loading ramps enable easy
loading of ATVs, motorcycles and mowers
BoxLink™ cargo management system
combines metal brackets and custom cleats
to secure a variety of accessories in the
cargo box – from ramps to storage bins to
bed dividers
Trailer hitch assist adds a new rearview
camera feature that incorporates a dynamic
line based on steering wheel angle in the
display to help customers line up their truck
and trailer with no spotter or need to exit the
vehicle
Remote tailgate allows for tailgate to be
locked, unlocked and released with the key
fob
To manufacture the all-new Ford F-150,
the truck team designed an innovative
process that includes the latest in advanced
materials and in forming and joining
technologies.
The new manufacturing process called
for the overhaul of both Dearborn Truck and
Kansas City Assembly facilities. Dearborn
Truck saw its largest manufacturing
transformation in decades wherein legacy
manufacturing equipment was replaced
with the latest in production technology.
Changeover at the facility was completed
last fall. Kansas City Assembly is currently
undergoing a similar renovation that is
scheduled to be complete in early 2015.
Combined, the two plants will have
capacity to produce more than 700,000
trucks per year for availability in 90 markets
globally.
F-150 is part of Ford F-Series, celebrating
its 38th straight year as America’s bestselling truck and 33rd straight year as
America’s best-selling vehicle. Ford sold
753,851 trucks in 2014.
The all-new F-150 is off to a tremendous
start. In January, Ford F-Series had its
strongest sales month since 2004, which
was the company’s best sales year for the
F-150 ever. 
Renault-Nissan Alliance sales rise for
fifth straight year in 2014 to 8.5 million
vehicles
4 February 2015 | OEM
The Renault-Nissan Alliance sold a record 8,470,610 vehicles in 2014 amid rising sales in
the United States and Western Europe.
Sales rose for the fifth straight year, up
2.5% compared with the previous year.
Together, Renault, Nissan and AVTOVAZ,
Russia’s largest automaker, account for one
in 10 cars sold worldwide.
“Robust demand in the United States, the
recovery in Western Europe and an array
of compelling new models contributed to
another year of rising sales for the Alliance in
2014,” said Carlos Ghosn, Alliance Chairman
and CEO. “We remain well-positioned and
optimistic about the long-term prospects
in the global growth markets, despite the
recent declines in Russia and Brazil.”
Renault SAS, Europe’s third-largest
automaker,
sold
2,712,432
vehicles
worldwide in 2014, up 3.2% from 2013.
In Western Europe, Renault sales totaled
1,464,611, up 12.5%, more than double the
overall market. Renault’s market share in
Europe reached 10%, up 0.6 percentage
points. Dacia was Europe’s fastest-growing
brand, gaining 0.4 percentage points of
market share.
Renault sales outside Western Europe
fell 5.9% to 1,247,821 vehicles due to the
economic slowdown in many of its markets.
Despite the slowdown, Renault posted its
highest market share ever in Brazil and
Russia, its second and third largest markets
after France.
Nissan sold a record 5,310,064 cars and
trucks worldwide, up 4.1%. Nissan continued
to sell more than 1 million vehicles in its
two largest markets, the United States and
China.
AVTOVAZ sold 448,114 vehicles, down
16.3% due to the overall market slowdown
in Russia. The Renault-Nissan Alliance has
a majority stake in AVTOVAZ, which sells
cars under the LADA brand, through a
joint venture with state corporation Rostec.
Together, the Renault-Nissan Alliance and
AVTOVAZ sell about one in three cars in
Russia.
Renault-Nissan market highlights
The Alliance’s top 10 markets in 2014
were the United States, China, Russia,
Japan, France, Mexico, Brazil, UK, Germany
and Italy.
In China, the world’s largest auto market,
Nissan, through its local partner Dongfeng
Motor, sold 1,221,598 vehicles, up 0.5%.
Nissan is the leading Japanese carmaker
in China with a 5.5% market share. In 2016,
Renault will start producing vehicles in China
with Nissan’s long-term partner Dongfeng
Motor. The new joint venture plant in Wuhan
will have an initial production capacity of
150,000 vehicles a year, with the potential to
double that figure in the future.
In the United States, Nissan sold a record
1,386,895 vehicles, up 11.1%, resulting in a
record market share of 8.4%. Nissan also
set annual sales records for Altima, Rogue,
Versa, Juke, NV200 and the 100 percent
electric Nissan LEAF.
www.automotivepurchasing.com
Despite the economic downturn in
Russia, the Alliance posted a market
share of 30.7%, up 1.1 percentage points.
AVTOVAZ sold 387,307 vehicles in Russia,
down 15%. AVTOVAZ’s market share stood
at 15.5 percent, down 0.9 percentage
points. Renault sold 194,531 vehicles, down
7.4 percent, but its market share grew to a
record 7.9 percent, up 0.3 percentage points,
thanks to the success of the Duster SUV and
the successful launch of three new models:
New Logan, New Sandero and Sandero
Stepway. Nissan sold 182,412 vehicles, up
17.7 percent. Nissan held a market share of
7.3 percent, up 1.8 percentage points.
In Japan, Nissan’s home market, Nissan
sold 670,263 vehicles, down 1.3%. Nissan’s
market share stood at 12 percent.
In France, Renault’s home market, Renault
sold 577,601 vehicles, up 5.5%. Its market
share totaled 26.6%, up 1.3 percentage
points. Clio was the best-selling car in the
market, while Captur was the best-selling
crossover.
In Mexico, Nissan posted record sales
of 293,204 vehicles, up 10.9%, outpacing
the overall industry. Nissan is the number
one brand in Mexico with a market share of
25.8%.
In Brazil, Renault sold 237,187 vehicles,
up 0.3%. Renault’s market share stood at a
record 7.1%.
Zero-emission highlights
The Renault-Nissan Alliance sold 82,602
electric vehicles in 2014, up 24% compared
with previous year, giving it a global market
share of 56%. Nissan LEAF was the world’s
best-selling EV with 61,507 sales, while
Renault led in Europe with 17,813 sales.
The Alliance has sold a cumulative 217,365
electric vehicles worldwide since December
2010, when Nissan LEAF – the first massmarketed Alliance EV - went on sale. The
top markets for Nissan LEAF are the United
States with 72,322 vehicles sold since its
launch, Japan with 48,641 sales and Europe
with 33,481 sales. Meanwhile, Renault has
sold a cumulative 56,499 electric vehicles
worldwide since its first EV, the Kangoo Z.E.,
went on sale in October 2011.
The Alliance sells about one out of two
electric vehicles worldwide, including Twizy,
Renault’s two-seater urban commuter
vehicle and the Nissan e-NV200 van on sale
in Europe and Japan since 2014. 
Kia Motors America announces
record January sales
4 February 2015 | OEM
Kia Motors America’s (KMA) record-setting
momentum carried into 2015 with best-ever
January sales of 38,299 vehicles, up 3.5%
over the same period last year.
Kia’s strong start was led by the US-built
Optima and the iconic Soul urban passenger
vehicle, and coincided with the arrival of the
more capable and refined third generation
of the popular US-built Sorento CUV.
“Yahoo called Kia one of the ‘hottest
brands’ in the industry in early January,
and as economic conditions continue
to improve, our record-setting January
performance proved them right as more
and more customers entered the market
and considered Kia for the first time,” said
Michael Sprague, Executive Vice President,
Sales & Marketing, KMA.
“Kia has one of the youngest and bestlooking lineups in the business, including
the completely redesigned Sedona, which
brings unmatched styling and amenities to
the segment and sold nearly four times as
many units as the outgoing model did in
January 2014.”
To announce the arrival of the all-new
2016 Sorento, KMA aired a 60-second spot
titled “Perfect Getaway” in the third quarter
of Super Bowl XLIX, which replaced the usual
action movie mayhem with the Sorento’s
capability to handle any adventureseeker’s lifestyle. A phased rollout of the
multi-platform marketing campaign will
incorporate TV, cinema, digital and social
media. 
Mercedes-Benz delivers record January
sales volume with 24,619 units, up 8.9%
Start of 2015 pay negotiations at
Volkswagen
4 February 2015 | OEM
The negotiating committees of Volkswagen
AG and the IG Metall trade union met today
in Hanover for the start of pay negotiations.
The leader of the Volkswagen committee,
Martin Rosik, Head of Human Resources
of the Volkswagen Passenger Car brand,
said: “There is growing uncertainty in many
regions of the world. Risks that were already
apparent during the 2013 pay negotiations
have become more pronounced. We also
face new risks in 2015. As a result, it is more
important than ever before to ensure that
our competitiveness is not jeopardised. A
reasonable pay settlement is essential.”
“In many regions, the political and
economic situation is becoming increasingly
unstable. Countries such as Russia, Brazil
or Argentina are in crisis. And severe
exchange rate fluctuations are also making
our business more difficult,” said Rosik. “We
have explained our analysis to IG Metall and
have offered to develop the right answers
to the situation together with the employee
representatives.”
Rosik described the situation in Europe,
Volkswagen’s domestic market, as follows:
“Unemployment continues to depress the
mood of consumers in Southern Europe.
New passenger car registrations in Western
Europe are as low as they were 20 years
ago.” He added that more and more
investment in future-oriented technologies
was required. “And Asian manufacturers
continue to enter the market aggressively
– with cars that they can make in the Far
East or Central and Eastern Europe at much
lower labor expenses than is possible at our
German plants.”
Rosik stated: “Volkswagen will continue
to make cars in Germany in the future. We
can only be successful if we find the right
solutions together. More than ever before,
this means that we need to keep costs
under control.”
The collective agreement of Volkswagen
AG applies to about 115,000 employees
at the Wolfsburg, Brunswick, Hanover,
Salzgitter, Emden and Kassel plants as well
as Volkswagen Financial Services AG.
Negotiations are due to continue on
February 12, 2015. 
Volvo Cars’ global sales up 1.6%,
growth in all key markets
4 February 2015 | OEM
Volvo Cars posted a 19th consecutive month of retail sales growth in January with Europe,
China and the United States all recording sales increases compared to January 2014.
4 February 2015 | OEM
Mercedes-Benz reported a record January sales volume of 24,619, increasing 8.9% from the
22,604 units sold in January 2014.
Adding 1,505 units for Sprinter Vans and
492 units at smart, MBUSA achieved its
highest January to date with a grand total of
26,616 vehicles, up 9% from a year ago.
“On the heels of record sales in 2014, a
best-ever January is the perfect way to kick
off the New Year,” said Stephen Cannon,
President and CEO of MBUSA. “Our product
offensive continues in 2015 with the launch
of the Mercedes-Maybach S600, a fully
redesigned light truck lineup and the hero of
our Super Bowl spot this year, the MercedesAMG GT S. Stay tuned.”
Mercedes-Benz volume leaders in January
included the C-, E- and M-Class model lines.
The new C-Class took the lead at 6,236,
up 8.5% from the 5,748 units sold the same
month last year. The E-Class followed with
sales of 4,336, while the brand’s best-selling
sport utility, the M-Class, rounded out the
top three with an increase of 11.3% to 3,144.
At the high end, sales of the flagship S-Class
increased 22.2% from January 2014 to 1,566.
Mercedes-Benz AMG high-performance
models sold 790 units in January, while the
brand’s BlueTEC diesel lineup finished the
month at 942.
Separately, Mercedes-Benz Certified PreOwned (MBCPO) models recorded their best
January ever with sales of 9,456, up 13.9%
from the 8,305 units sold the same month
last year. 
Sales of Volvo Cars in Europe rose 4.9%
versus the same month last year. Most
European markets did well, with the United
Kingdom being the main growth driver; up
34.4% versus January 2014.
Sweden remains a growing market for
Volvo Cars with retail sales of 3,628 cars,
up 0.2% from the same month last year, and
Volvo Cars retains its 20% market share.
The Volvo XC60 and XC70 crossovers
were the best-selling models.
China also reported growth with January
sales of 5,879 cars, up 0.7% versus January
last year. Volvo Cars’ best-selling models in
China were the XC60 and the S60L.
Sales in the United States were up by
0.1% to 3,795 cars in January. The bestselling models were the Volvo XC60 and
S60.
www.automotivepurchasing.com
“2014 was a good year and we continue
the positive trend into 2015 with our 19th
month of consecutive growth,” says Alain
Visser, Senior Vice President Marketing,
Sales and Customer Service at Volvo
Cars. “The fact that we have received over
15,000 pre-orders for the all new XC90
before its arrival in showrooms shows
promise for Volvo Cars’ future.”
The Volvo XC60 was the best-selling
mode in January with 10,403 sold cars
(2014: 8,947), followed by the Volvo V40
and V40 Cross Country for which deliveries
reached a total of 6,990 cars (2014: 6,575).
The V60 and V60 Cross Country models
were third best selling at 3,989 cars (2014:
4,628). Sales figures by model can be
found in the Sales Volumes section of the
Global Newsroom. 
13
Subaru of America reports record
January sales
4 February 2015 | OEM
Subaru reported 40,812 vehicle sales for
January 2015, a 24% increase over January
2014.
These results continue the company’s
sales momentum from 2014 where Subaru
achieved six consecutive years of record
sales and exceeded 500,000 annual sales
– a first in company history.
January marked the 11th consecutive
month of 40,000+ vehicle sales for the
company. Forester, WRX/STI, Legacy,
Outback, and XV Crosstrek sales were
notably strong as each model line achieved
its best January ever. WRX/STI and Legacy
sales for January 2015 increased 59 and
41% respectively over January 2014. The XV
Crosstrek small CUV also added 6,513 sales
to the month’s total.
All seven 2015 Subaru models recently
earned safety awards from the Insurance
Institute for Highway Safety (IIHS) – two
with Top Safety Pick and five with Top
Safety Pick+ including the Forester, Legacy,
Outback, Impreza, and XV Crosstrek, when
equipped with optional EyeSight Driver
Assist Technology. In January, Subaru also
earned Kelley Blue Book’s prestigious 2015
Best Resale Value Brand Award and three
vehicle segment awards – Compact Car
Category: 2015 Subaru Impreza; Sporty
Compact Car Category: 2015 Subaru WRX;
and Mid-Size Car Category: 2015 Subaru
Legacy.
“We are off to a strong start to 2015
by having the best January sales in our
franchise’s history and we expect strong
demand to continue throughout the year,”
said Thomas J. Doll, President and Chief
Operating Officer, Subaru of America. “We
are excited to see strong sales across our
entire model line, as well as achieve the sale
of our seven millionth vehicle.”
Jeff Walters, Senior Vice President of
Sales said: “Subaru continues to receive
outstanding accolades from the Insurance
Institute for Highway Safety and the
automotive press for our products. These
favorable reviews are increasing the positive
image and awareness of our products
among the American buying public and help
drive the demand we are seeing in our retail
stores.” 
Toyota’s America sales soar in 2014
Mercedes-Benz USA announces
details of new corporate
headquarters in Atlanta
4 February 2015 | OEM
MBUSA to occupy interim office space in
Central Perimeter before opening new,
state-of-the-art facility in 2018.
At a press conference at the Georgia
State Capitol, Mercedes-Benz USA (MBUSA)
announced the permanent and interim
locations for its new corporate headquarters
in Atlanta. Company President and CEO
Stephen Cannon made the announcement
with Georgia Governor Nathan Deal.
MBUSA, which is currently headquartered
in Montvale, New Jersey, will construct a
new, state-of-the-art headquarters facility
on a greenfield site located at the corner
of Abernathy and Barfield roads in Sandy
Springs, expected to be completed in early
2018. Set near the intersection of Georgia
400 and Interstate 285, the approximately
12-acre parcel rests in one of Atlanta’s
largest and most sought-after commercial
districts, offering numerous hotel, retail
and restaurant options with easy access
to public transit and Hartsfield–Jackson
Atlanta International Airport.
“Mercedes-Benz is a marquis brand
which deserves a marquis setting,” Cannon
said. “Our ambition is to be more than just a
great car company – we want to be among
the best companies in the world, and Atlanta
will serve as the perfect foundation to foster
that ambition for the future. We are looking
forward to calling Atlanta home.”
Beginning July 2015, the company
will move into temporary office space at
Sterling Pointe II, a 186,000-square-foot,
Class A office building at the Perimeter
Center complex in the neighboring city of
Dunwoody.
“Mercedes-Benz
USA’s
planned
headquarters location in Sandy Springs is
great for the city, metro Atlanta and for the
entire state of Georgia,” said Governor Deal.
“I want to thank Mercedes-Benz USA and
its leadership team for its decision to call
Georgia home.”
As part of the relocation, the automaker
plans to hire hundreds of new employees
from the Atlanta area. MBUSA will continue
to maintain several operational business
units in both Montvale and Robbinsville,
New Jersey. Additional details on the new
Sandy Springs facility, as well as MBUSA’s
Atlanta recruiting efforts, will be released in
the coming weeks. 
1% growth for Hyundai North America
this January
3 February 2015 | OEM
Toyota USA reported January 2015 sales of
169,194, an increase of 15.6% from January
2014 on a volume basis.
With one additional selling day in January
2015, sales were up 11.2 percent on a daily
selling rate (DSR) basis.
Toyota division posted January 2015
sales of 146,063 units, up 13.5 %.
“The year is off to a strong start as the
sales momentum we saw in 2014 continued
into January,” said Bill Fay, Toyota division
group Vice President and General Manager.
14
“Highlander, RAV4 and Corolla all set
January records.
“Lexus reported January 2015 sales of
23,131 units, a 31.2% increase.
“January was a great way for our dealers
to start the year, with their third straight
record month and an industry leading 31
percent sales increase,” said Jeff Bracken,
Lexus group vice president and general
manager. “We saw good growth throughout
our lineup and received an added boost
from the all-new NX luxury compact utility
vehicles and RC coupes.” 
4 February 2015 | OEM
Hyundai Motor America reported its best
January in company history, selling 44,505
units for the month, up 1% versus the same
period last year.
This is the seventh consecutive year of
increased sales during the month of January.
“With consumer confidence at a seven
year high and gasoline and energy prices on
the decline, more car buyers will be heading
into the dealerships in 2015,” said Bob
www.automotivepurchasing.com
Pradzinski, Vice President, National Sales.
“Consumers are doing their homework
- making sound, educated purchasing
decisions – and looking for vehicles that
equate to ‘more for less’. The search for
value was one of the key drivers of Hyundai’s
record setting January sales success as
high-performing, quality vehicles such as
Genesis, Sonata and Santa Fe continue to
offer consumers unprecedented values.”
The all-new award-winning Genesis
sedan, now available with Hyundai’s HTRAC
AWD system, saw sales gains in the mid-west
and eastern part of the country in January,
as the snow piled up. Genesis sedan sales
were up 76 percent for the month, resulting
in Genesis’ best January. Sonata, our midsize sedan was up 26 percent and Santa Fe,
Hyundai’s CUV, was up 15 percent. 
Porsche reports January sales - up
27% over 2014
Jury finds Toyota at fault for
crash that sent innocent man
to prison; awards $11,440,000
4 February 2015 | OEM
Bob Hilliard, of Hilliard Munoz Gonzales, has won the lawsuit against Toyota in which he
proved its 1996 Camry was defectively dangerous and caused a 2006 deadly accident.
4 February 2015 | OEM
US Porsche dealers sell 3,937 vehicles in
January.
Porsche Cars North America (PCNA),
importer and distributor in the United States
of Porsche 918 Spyder, 911, Boxster and
Cayman sports cars, Macan and Cayenne
SUVs, and the Panamera four-door sports
sedan line-up, announced January 2015
sales of 3,937 vehicles. PCNA kicked off the
year successfully with record January sales,
up 27.2% over January 2014 (3,096).
“It’s greatly encouraging that we are able
to carry the momentum of last year’s record
sales into the start of 2015,” said Detlev von
Platen, President and CEO, Porsche Cars
North America. “The 911 range with the new
GTS models was an especially impressive
performer this month with 1,052 deliveries.”
The 911 model line’s strong demand in
January put its sales up 32.8% over last
January. In January, the Cayenne had 1,116
deliveries, and the sporty Macan recorded
sales of 796 with demand still outpacing
availability. The Panamera sports sedan
had 437 deliveries. The mid-engine Boxster
and Cayman models had a combined 502
deliveries.
Porsche Approved Certified Pre-Owned
vehicle sales in the US were 1,023 for
January 2015, an increase of 26.6% from the
same period last year. 
GM’s US sales up
by 18%
3 February 2015 | OEM
General Motors (GM) in the United States
delivered 202,786 vehicles last month for
the company’s best January sales in seven
years.
Total sales were up 18% compared to a
year ago. Retail sales were up 14% and fleet
deliveries were up 32%.
“Consumers feel very good because
more people are working, the US economy
is expanding and fuel prices are low,” said
Kurt McNeil, US Vice President of Sales
Operations. “Consumer and commercial
demand for trucks and crossovers is really
driving our business, and our move into the
small crossover segment with the Chevrolet
Trax and Buick Encore, and mid-size pickups
with the Chevrolet Colorado and GMC
Canyon, was well-timed.”
Year-over-year
pickup
deliveries
increased 42%, following last month’s 43%
increase. Large pickup sales were up 22%
and more than 8,000 all-new mid-size trucks
were delivered. GM is the only US-based
automaker competing in this segment.
Sales of crossovers and SUVs were up 36
percent year over year, with the Chevrolet
Equinox and Traverse, the GMC Terrain and
the Buick Encore all posting their highest
January sales ever. Chevrolet will unveil a
redesigned Equinox at the Chicago Auto
Show on February 12. 
The verdict, returned after 21 days of
testimony, and 4 days of deliberations,
further vindicates Koau Fong Lee, who was
wrongfully imprisoned for the crash that
caused the deaths of three people, and
serious injuries to two others.
After the grueling 3 week trial in front
of Judge Ann Montgomery in federal court
in Minneapolis, Minnesota a 12-person jury
unanimously agreed with Hilliard and found
the Toyota Camry was defectively dangerous
and a direct cause of the accident. The jury
found 60% responsibility on Toyota.
The jury awarded all plaintiffs a total of:
$11,440,000.
The underlying accident
On June 10, 2006, Lee was driving home
from a church function with his pregnant
wife, young child, brother and elderly father
when his car began to accelerate by itself.
The racing engine overpowered the
braking system’s ability to stop it. Though
Lee tried his best to maneuver his out of
control and accelerating vehicle around cars
that had stopped at the approaching traffic
light, he failed in his attempt and crashed
into an Oldsmobile Ciera, instantly killing
two people and rendering a six-year-old girl
quadriplegic, who died the following year.
Two other passengers in the Oldsmobile
suffered serious injuries. Lee and his family
were not seriously injured.
Hilliard helped free Lee from prison
Even though there were no drugs
or alcohol involved and the accident
happened on a clear Saturday afternoon,
Lee always maintained that something
had gone suddenly wrong with his Toyota.
However, in 2008 a criminal jury convicted
Lee of criminally negligent homicide and
he was sentenced to 8 years in prison.
At the time of the criminal trial there was
little known about sudden acceleration in
Toyota vehicles and Lee’s criminal attorney
presented no evidence on this issue. For 2
and a half years Koua Fong Lee sat in prison,
away from his wife and four kids. Lee had
five more years to serve when Hilliard and
his co-counsel, Minneapolis based attorney
Brent Schafer, put on evidence at a hearing
seeking to overturn Lee’s conviction that
the 1996 Toyota Camry was defective. At
the end of the hearing the same Judge who
sentenced Lee to 8 years in prison ordered
his conviction vacated and granted his
immediate release. The prosecutor declined
to re-charge Lee.
Filing of the lawsuit
After Lee was released from prison,
Hilliard filed a lawsuit against Toyota. Joining
Lee in this lawsuit were his wife, Panghoua,
his daughter Jemee, his brother Nong, and
his father Nhia. Also in the lawsuit were
www.automotivepurchasing.com
the Oldsmobile front seat passenger who
was severely injured, Quincy Adams. The
Oldsmobile back seat passenger, Jasmine
Adams who was also severely injured, and
Bridgette Trice on behalf of the Estate of
Devyn Bolton, the little girl who was in the
middle back seat of the Oldsmobile and was
rendered a quadriplegic from the accident,
dying 18 months later.
Evidence of the defect at trial
Hilliard put on expert testimony to show
that the accelerator on Lee’s 1996 Toyota
Camry suddenly and unexpectedly stuck
in the near wide-open position, causing
the car to accelerate. He also called to
testify three independent witnesses who
had experienced similar events in their
1996 Toyota Camry, a doctor, a Blackhawk
helicopter pilot currently deployed in Kuwait
and a former CFO of an university.
”Shame on Toyota”, says Hilliard
“Finally, through this jury’s verdict, Justice,
though slow, has come to Koua Fong Lee.
Mr. Lee and his family, as well as the other
victims of this accident, have experienced a
journey biblical in its sadness and anguish. I
know there were times when they could not
have ever dared hope this day would find
them.”
For years after the accident, the Lees,
Hmong immigrants, who came to the United
States to start a new life, were overwhelmed
and bullied--first by the criminal justice
system and then by Toyota,” Hilliard said.
“Shame on Toyota for wrongly attempting
to once again lay the guilt of this accident
on Koua. From opening statements through
closing arguments, Toyota, who spent tens
of millions of dollars on this case, tried to
again frame my client. I thank the jury for
its courage, for its careful analysis of the
testimony and evidence but mostly for its
verdict. As I have always known, and now,
as the world knows and as the jury has
confirmed, the lives lost and the horrible
consequences of that tragic day in 2006
are a direct result of this dangerous and
defective 1996 Toyota Camry, and not Koua
Fong Lee,” Hilliard said.
Vindication
“Koua will never be able to regain the
years he languished in prison. The other
innocent victims and their families who were
in the Oldsmobile will never completely
recover from this terrible crash. Still, there
is some peace, some hope that comes from
being reminded of the healing power of our
justice system. These 12 brave individuals
on this jury stared down Toyota, the world’s
largest car company, and delivered the
strong and sweet sound of Justice through
their verdict,” says Hilliard. 
15
Ford previewed Ford Focus
3 February 2015 | OEM
Ford previewed the all-new Ford Focus RS,
a high-performance road car that debuts
the innovative Ford Performance All-WheelDrive, delivering class-leading cornering
speed, thrilling performance and unbridled
driving enjoyment.
The Focus RS – equipped with a special
2.3-litre EcoBoost engine engineered to
produce well in excess of 320PS – is the
latest vehicle to be unveiled as part of a
new era of Ford performance that will bring
more than 12 performance vehicles to global
customers by 2020.
In addition to pleasing enthusiasts, these
vehicles help deliver the company’s One
Ford plan for profitable growth, product
excellence and innovation in every part of
its business.
“The all-new Focus RS is a serious
machine with high-performance technology
and innovative engineering that sets a new
benchmark for driving exhilaration on the
road and track,” said Raj Nair, group vice
president, Global Product Development,
Ford Motor Company. “The RS line has a
proud history of technical breakthroughs
that have migrated to mainstream Fords
to benefit all of our customers, and the
new Focus RS is no exception. It’s a great
example of our passion for innovation
through performance and creating vehicles
that make people’s hearts pound.”
Developed by a small team of Ford
Performance engineers in Europe and US,
the new Focus RS is the third generation of
Focus RS cars, following models launched
in 2002 and 2009. It will be the 30th car
to wear the legendary RS badge, following
such technology trendsetters as the 16-valve
1970 Escort RS1600, the turbocharged
Sierra RS Cosworth of 1985 with its radical
aerodynamics, and the four-wheel-drive
1992 Escort RS Cosworth.
Sporting a dramatic exterior design
that delivers enhanced aerodynamics
and cooling, the new Focus RS offers
technologies new to the RS marque
including Ford SYNC connectivity.
The all-new Focus RS is the first ever RS
model that will be sold around the world and
will be produced for all markets at Ford’s
Saarlouis, Germany, manufacturing plant
beginning late this year.
“The new Focus RS represents Ford at
its passionate best – delivering innovation,
unmatched driving dynamics and stunning
performance that was previously the sole
province of high-priced performance luxury
marques and exotics,” said Jim Farley,
president, Ford of Europe, Middle East
and Africa. “We are acutely aware of the
benchmarks we have set ourselves with
RS performance models through the years,
and rest assured that this new car raises the
game to a new level.
“Just as important is the fact that with
technologies such as EcoBoost, we are
able to demonstrate how an innovation
that powers almost every car in our range
can also be the heartbeat of our finest
performance cars.”
Gymkhana and World Rallycross star Ken
Block was brought on as a consultant on
the all-new Focus RS and joined the Ford
Performance team at the preview event in
Cologne, Germany – the city where the RS
legend was born in 1968 with the Ford 15M
RS. 
FCA reported 31% profit in 2014
3 February 2015 | OEM
FCA US LLC, formerly Chrysler Group LLC,
reported preliminary full-year 2014 net
income of $1.2 billion, including $1.2 billion
of unfavorable infrequent items.
The result compares with net income
of $2.8 billion in 2013, when the Company
realised a net favourable effect from
infrequent items, including a benefit of $962
million related to the release of valuation
allowances on deferred tax assets.
Adjusted net income for 2014 was $2.4
billion, up 31% from $1.8 billion in 2013.
For 2014, adjusted net income excludes a
$504 million loss on extinguishment of debt
related to the prepayment of a note held
by the UAW Retiree Medical Benefits Trust
(VEBA Trust Note) and a $672 million charge
for commitments associated with the January
2014 memorandum of understanding signed
with the UAW.
Net revenues were $83.1 billion for the
year, up 15% from $72.1 billion in 2013. The
year-over-year improvement was driven by
increased shipments of vehicles such as the
Jeep Cherokee and Ram pickups.
Modified operating profit was $3.5 billion
for the year, or 4.2% of net revenues, up 10%
from $3.2 billion in the prior year, or 4.4% of
net revenues. The increase was mainly the
result of higher shipment volumes, improved
net pricing and purchasing efficiencies,
partially offset by higher industrial costs
mainly related to base material costs for
vehicle content enhancements, as well as
higher warranty and recall costs.
Modified EBITDA was $6.4 billion for
the year, or 7.7% of net revenues, up 8%
compared with $5.9 billion a year earlier, or
8.2% of net revenues.
Cash at December 31, 2014, was $14.5
billion, up from $13.6 billion at September 30,
2014, and $13.3 billion at December 31, 2013.
Total available liquidity as of December 31,
2014, was $15.8 billion, including $1.3 billion
available under an undrawn committed
revolving credit facility. The increase in
cash also included the $1.9 billion special
distribution paid to Fiat and the VEBA Trust
last January. Free cash flow for the year was
$3.3 billion.
Financial liabilities at December 31, 2014,
totaled $12.8 billion compared with $12.9
billion at September 30, 2014, and $12.3
billion at Dec. 31, 2013. The increase from a
year ago was primarily due to the refinancing
of the VEBA Trust Note in the first quarter of
2014. Net industrial cash increased to $1.8
billion at the end of 2014 from $680 million
at September 30, 2014, and $1 billion at
December 31, 2013.
Interest expense for the year was $842
million, down from $1 billion in the prior year,
primarily due to the refinancing of the VEBA
Trust Note in January 2014 and debt repricing actions in 2013.
Worldwide shipments were 2.9 million
vehicles for the year, including 49,000
contract manufactured vehicles, an increase
of 12% from a year earlier, when the Company
shipped 2.6 million vehicles, including
60,000 contract manufactured vehicles.
Worldwide sales were 2.8 million vehicles
for the year, up 15% from 2.4 million vehicles
sold in 2013, driven largely by an 18 %
increase in the Company’s U.S. retail sales.
In addition, the Jeep brand reported an
all-time sales record of more than 1 million
vehicles sold during the year. US fleet sales
as a percentage of total US sales were 21%
for the year, down from 22% in 2013.
The Company’s US market share was
12.4% in 2014, up from 11.4 % in 2013; market
share in Canada was 15.4%, up from 14.6% a
year earlier.
US dealers’ days’ supply of inventory at
the end of December 2014 was 72 days,
comparable with the 71 days at the end of
September 2014, and lower than the 79 days
at the end of December 2013.
Full-year 2014 sales outside North
America increased 17% from 2013, to
363,000 vehicles, including 55,000 vehicles
manufactured by FCA US and sold as Fiat
and Lancia branded models outside North
America. 
Kia to reveal new Picanto at 2015 Geneva Show
2 February 2015 | OEM
Kia Motors Europe will unveil the enhanced
Kia Picanto at the 85th Salon International
de l’Automobile in Geneva on 3 March 2015.
Kia’s stylish A-segment city hatchback
features a range of dynamic and
visual improvements to maintain its
competitiveness.
The enhanced Kia Picanto boasts
redesigned front and rear bumpers to
enhance the car’s bold looks, as well as
updates to Kia’s hallmark ‘tiger-nose’ grille.
Buyers can now choose a new 14-inch
alloy wheel design, and the inclusion of an
16
optional sport pack makes the upgraded car
stand out as one of the best-looking vehicles
in the A-segment, in both three- and fivedoor variants.
Inside, the Picanto is now fitted with new
chrome accents surrounding the driver’s
instrument binnacle and dashboard air vents,
and a new cloth upholstery pattern boosts
the car’s youthful appeal. At the centre of
the dashboard, a more modern fascia now
surrounds the Picanto’s audio system.
Premium features and greater
customisation
A range of optional premium features are
being introduced to the Kia Picanto for the
first time, including the latest generation of
Kia’s AVN (audio-video navigation) system
with a large 7.0-inch display screen (available
from Q3). Customers can also specify a
cruise control and speed limiter system to
improve long distance comfort for the driver.
In addition, the enhanced model now
offers a series of three interior colour packs,
allowing owners to customise their Picanto
and stand out from the crowd. The sportylooking Red Pack features black artificial
leather and red cloth seats and high-gloss
red and black door panel inserts. The vibrant,
trendy Yellow Pack features black artificial
leather and cloth seat upholstery with
yellow stitching, as well as a bright yellow
dashboard and steering wheel trim. Finally,
the premium Brown Pack offers classy brown
artificial leather seats, brown door trim and
high-gloss piano black dashboard trim.
Footwell illumination is fitted to the Picanto
when buyers specify one of the three colour
packs.
Improved braking performance and Euro
6-compliant engines
Occupant safety is further improved in
the enhanced Picanto, with larger brakes
reducing the car’s stopping distance. New
larger 252 mm front brakes (increased from
www.automotivepurchasing.com
241 mm) are available as an option, allowing
the car to stop from 100 km/h in just 37
meters - an improvement of 2 meters.
The upgraded Picanto has received a
series of small modifications to its 1.0-litre
MPI (Multi-Point Injection) engine, ensuring
the car meets strict Euro 6 emissions
standards.
Enhanced Picanto on-sale in Q1 2015
The Picanto is manufactured at Kia’s
Seosan manufacturing facility in Korea, and
is among the brand’s best-selling models
in Europe, with 51,102 units sold in 2014.
The enhanced model will go on sale across
Europe in by the end of March 2015, and will
be sold with Kia’s unique 7-Year, 150,000 km
warranty for complete peace of mind. 
Honda kicks off 2015 with record
January sales
Ford records best January since
2004
3 February 2015 | OEM
American Honda reported a new January record on Honda and Acura vehicle sales of
102,184 units, an increase of 11.5% versus January 2014.
Overall AHM light trucks led sales gains
for both brands and set a January record,
increasing 25.2% on sales of 52,169 vehicles.
The Honda brand set a January record, up
11.6% for the month while recording sales of
90,202 vehicles. The Acura brand posted
sales of 11,982 units in January, increasing
10.7% over the same period last year.
Honda
2015 began on a strong note for the
Honda Division with record monthly sales
for the brand, its light trucks and three key
models, CR-V, Fit and Pilot.
■■ CR-V continued to build on its leadership
as 2014’s undisputed best-selling SUV in
America, as the Honda’s top-selling model
in January with record monthly sales of
23,211 units, up 27.3%.
■■ Fit continued to bring record numbers of
new buyers to the Honda brand, setting a
new January record, up an amazing 85.8%
with 5,802 vehicles sold in January.
■■ Pilot nearly doubled January 2014 sales
while setting a new monthly record with
12,315 sold, up 97.9% .
■■ Accord sales of 21,011 vehicles grew by
2.0% in January
■■ Led by record CR-V and Pilot sales, Honda
Division light truck sales surged to a new
record of 44,271 units, up 27.7% .
“The new year is off to a strong start
with three core models selling at record
pace, and this is only the beginning,” said
Jeff Conrad, Honda division Senior Vice
President and General Manager. “With an
all-new HR-V crossover coming in a few
months, an all-new Pilot debuting at the
Chicago Auto Show next week and more big
news on the horizon, this is going to be an
epic year for Honda.”
Acura
The Acura Division posted its best
January sales result since 2007 on the
strength of record sales of the MDX and
RDX and another strong showing from the
all-new TLX performance luxury sedan.
■■ MDX set its second consecutive January
sales record on sales of 4,381 vehicles,
up 3.3%. It was the brand’s best-selling
vehicle in January.
■■ RDX set its third consecutive January
sales record, up 28.8% with sales of 3,517
vehicles for the month.
■■ The all-new TLX sold 2,892 vehicles in its
first January, easily besting the combined
sales of its two predecessors in January
2014 by 27.9%. (Acura TL and TSX
combined to sell 2,261 vehicles in January
2014.)
“With a major mid-cycle refresh for the
ILX gateway model on the way, it’s great to
begin the year with such strong sales,” said
Mike Accavitti, Acura division senior vice
president and general manager. “MDX and
RDX are packing a stronger 1-2 punch than
ever to create new energy and momentum
for the Acura brand that we look forward to
carrying through 2015.” 
Škoda Superb’s design true to its
name
3 February 2015 | OEM
Ford posted a 15% sales increase in the US
in January, with sales of 178,351 vehicles.
Retail sales of 128,666 vehicles marked
a 13% increase, providing the best retail
January results since 2004.
Retail passenger car sales were up 6
percent, utilities saw a 10% increase, and
trucks gained 23%.
“Customer demand is strong for our
newest vehicles, driving retail sales gains
across our lineup in January,” said Erich
Merkle, US sales analyst. “Momentum is
especially strong for our F-Series pickup,
with the all-new F-150 the hottest product
on our dealer lots in January.”
F-Series, America’s best-selling truck for
the 38th straight year, posted sales gains of
17% in January, with 54,370 trucks sold last
month. This was F-Series’ best January sales
volume since 2004 – an all-time annual
record sales year for F-Series.
Part of F-Series’ strength is the all-new
F-150. It is the toughest, smartest, most
capable F-150 ever, with best-in-class
payload, towing and gasoline fuel economy
and recently named 2015 North American
Truck of the Year. It is averaging just 12
days on dealer lots. High-end Platinum and
King Ranch F-150 are turning even faster,
averaging just 9 and 10 days on dealer lots,
respectively.
Transit Connect sales also increased
72% last month, for record January sales
with 3,689 vehicles. Combined, Ford sales
of Transit, E-Series, and Transit Connect
totaled 13,377 vans, marking Ford’s best
January sales results for vans since 2001.
Escape sales of 20,054 vehicles increased
3% last month versus a year ago, for the
utility’s best-ever January. Explorer sales of
14,995 vehicles were up 28%, marking its
best January sales since 2005.
Mustang sales more than doubled last
month with sales of 8,694 vehicles. This
represents a 124% increase versus last year
and marks Mustang’s best January sales
since 2007.
Lincoln sales increased 11% last month
versus January 2014, with 6,619 vehicles
sold, providing Lincoln with its best January
results in five years. MKC continues to build
Lincoln momentum, along with Navigator,
which realized a 144% sales increase for the
month. 
For more information about
advertising opportunities, please
contact:
3 February 2015 | OEM
Škoda is once again demonstrating the
design and emotional power of the brand
with the latest version of its flagship model,
the Superb.
The new Škoda Superb combines
spaciousness, functionality and design in a
truly unique way. Škoda already gave some
hints as to the future of the brand’s design
language last year, when it presented the
Škoda VisionC show car at the Geneva
Motor Show. The new Superb brings these
innovations to series production. Škoda is
now presenting the specific details of the
third-generation Superb with a closer look
at the vehicle’s interior.
The aim of Škoda’s engineers and
designers was to create a superior inner
space, with a more modern, elegant
and sophisticated look. With further
improvements to the interior dimensions,
Škoda has brought the qualities of higherclass vehicles into the automotive mid-class.
With the vehicle’s unrivalled amount of room,
new level of comfort, new technical solutions
and high-quality, precise workmanship, the
new Škoda Superb is truly setting standards
in its segment. 
Deryck Morris
+44 (0) 208 882 1330
or email:
dm@automotivepurchasing.com
www.automotivepurchasing.com
17
Ford supports new degree
apprenticeship programme in
technology
Prestigious design award
for new Kia Sorento
3 February 2015 | OEM
Kia continues to reel in awards for its outstanding design. Now the Kia Sorento, the
brand’s flagship SUV, has received the prestigious ‘iF Design Award’ for the first time.
2 February 2015 | OEM
Ford will be among the first UK employers
to develop and offer a new Governmentbacked degree apprentice programme to
A-level school leavers seeking an alternative
to the traditional university route.
Ford is continuing its long-standing
commitment to providing apprenticeships
through the development of this new degree
programme, which provides theoretical
and practical education in the digital and
software field.
Ford has introduced its own Higher
Apprenticeship programmes over the last
two years, designed to encourage a new
generation of engineers and professionals
into the automotive industry, providing a full
degree-level qualification with high-quality
training in a range of engineering skills. Ford
introduced its own Higher Apprenticeship in
IT in September 2014.
This programme provides a path towards
a Batchelor of Science (BSc Hons.) degree in
IT Management for Business (ITMB), and is
delivered with the University of Greenwich.
The new programme will be developed
by Ford, along with other leading
technology employers and top universities.
The Government will subsidise some tuition
costs and fees, while employers taking part
in the scheme will provide undergraduates
with an opportunity to ‘earn and learn’
through a paid apprentice role with practical
training.
These new IT degree apprenticeships
will be available at a number of universities
across the UK, including Loughborough, one
of the original universities selected by Ford
to participate in the Blue Oval Scholarship
programme.*
In recognition of its commitment to
apprenticeship programmes, Ford has been
listed among the City & Guilds Top 100
Apprentice Employers for 2014 – the fourth
successive year that Ford has made the list.
This follows earlier success in 2014, having
been named as the South East regional
winners of the Macro Employer of the year
in the 2014 National Apprenticeship Awards.
Tessa Hougham, Ford Apprenticeship
Manager, said: “Ford’s Advanced and Higher
apprenticeship programmes have produced
some of the UK’s best engineers and
innovators, and we’re proud to be among the
first to support these new Government-backed
apprenticeships in the digital sector.” 
Are you one of
America’s Best?
The judges of the globally-recognised
design awards programme honoured the
third generation of the Sorento, which
goes on sale across Europe in March 2015,
with an award in the ‘Product’ category. As
well as awarding the car for the overall
quality of its design, the jury rated the
car on criteria such as finish, degree of
innovation, environmental impact and
safety.
The all-new Kia Sorento is the seventh
Kia model to secure an iF Design Award.
In every year since 2010, at least one of
the coveted awards has been scooped by
Kia, with previous winners from the brand
including the Kia Venga, Sportage, Optima,
Picanto, pro_cee’d and Soul.
“I am very proud of this award for the
Kia Sorento because it is recognition of
the great advance in quality we have
succeeded in achieving in this model,”
said Peter Schreyer, President and Chief
Design Officer of Kia Motors Corporation
and Hyundai Motor Company.
“The Kia Sorento unites the classic poise
of an SUV with a premium look and feel
that is particularly tangible in the cabin. It
offers the very highest design quality and
excellent value for money. This is largely
the achievement of our international
design teams – which is also why I am so
delighted with this award.”
The new Kia Sorento was developed by
the Kia design team in Namyang, Korean,
assisted by the Kia Design Centres in
Frankfurt, Germany and Irvine, California.
Great versatility, high-tech features and
new all-wheel-drive system
The new Kia Sorento is a stylish and
practical SUV with exceptional versatility
and practicality. The smoother, sweptback profile and deeply sculpted surfaces
give the Kia Sorento a lithe, elegant
appearance. The spacious interior follows
the horizontal lines of the overall design
concept and delivers a luxurious look and
feel with top-quality materials throughout
the cabin.
Nominate Now...
18
www.automotivepurchasing.com
The new Kia Sorento, which is available
with five or seven seats, has a longer
wheelbase and provides more passenger
room than its predecessor. The luggage
area is larger, and thanks to the sliding,
60:40-split seat row it is even more
versatile, holding up to 1,732 litres.
The Kia Sorento has a powerful
and efficient 200 ps (147 kW) 2.2-litre
turbodiesel engine, while four-wheel drive
versions are fitted with Kia’s new Dynamax
All-Wheel-Drive system with torque
vectoring.
High-tech specifications and a range
of premium features, including the
360-degree Around View Monitor and
smart parking system make it easy to
manoeuvre and park. Buyers can also
choose from the latest safety assistance
systems, from lane departure warning
to rear cross traffic alert and traffic sign
recognition, through to adaptive cruise
control.
The iF product design award
Since it was launched in 1953, the
annual iF Design Award has become
one of the world’s most important prizes
for excellence in design. The award
has its origins in the ‘Formgerechte
Industrieerzeugnisse’ (Good Industrial
Design) product shows initiated by the
Hannover Messe, and is now one of the
world’s largest design competitions.
The iF Design Award is presented
in five disciplines. In 2015, companies
from 53 countries participated in the iF
design awards programme, submitting
4,783 designs. The new Kia Sorento was
honoured in the ‘Automobiles / Vehicles /
Bikes’ category.
The official presentation ceremony for
the 2015 iF Design Awards will take place
on February 27, 2015 in Munich, during
the Munich Creative Business Week. A
selection of the winning products will also
go on display at the iF design exhibition in
Hamburg’s HafenCity. 
Groundbreaking McLaren Super
Series continues to break records
2 February 2015 | OEM
McLaren celebrated the build of the 5,000th
model based on the groundbreaking
carbon fibre MonoCell chassis, which forms
the recently announced McLaren Super
Series, in only the fourth full year of vehicle
production.
Launched initially with the 12C in 2011,
and followed by the 12C Spider and then the
650S and Asia-only 625C, the Super Series
is now the highest volume carbon fibre
supercar range ever. This milestone comes
shortly after McLaren announced a third
consecutive growth in sales, with more than
1,400 Super Series models being delivered
during 2014.
The 5,000th car, a Volcano Yellow 650S
Coupé commissioned for a customer in
Australia rolled from the assembly line in
the McLaren Production Centre on Monday
2nd February. It was joined at the end of the
production line by the first production 12C,
which has now become part of the McLaren
Heritage Collection.
Production of the 12C began at the start
of 2011, with these early models assembled
by approximately 30 employees in a
designated manufacturing facility within the
McLaren Technology Centre. Deliveries
commenced globally from June, before the
state-of-the-art McLaren Production Centre
opened its doors in November, becoming
the birthplace of all McLaren roadcars. The
bespoke facility was designed by Foster +
Partners, and combines outstanding quality
with highly efficient production methods.
It is now a home to over 500 employees
working across the manufacturing and
logistics operations.
In March 2014, the assembly line was
updated to accommodate the production
requirements for the new McLaren 650S in
response to strong customer demand.
“McLaren has come a long way in four
short years. The completion of the 5,000th
vehicle in the Super Series is a fantastic
milestone for the brand. The 12C was, and
still is, a groundbreaking supercar and,
true to the values of McLaren, we have
continued to develop and build on this great
product into the 650S which has delighted
our customers and won countless awards
across the world,” said Mike Flewitt, Chief
Executive Officer at McLaren Automotive.
“We have built a solid foundation for
the business, delivering record numbers
year on year, and I look forward to our next
production milestone with the addition of
the 675LT to the Super Series, and the new
Sports Series later in the year.”
The McLaren Super Series forms the
core range of McLaren supercar offering
and sits above the recently announced
Sports Series in the model hierarchy. The
family of models will be soon expanded
with the recently-announced McLaren
675LT, confirmed for global reveal at the
2015 International Geneva Motor Show
in March. The announcement follows an
internal staff ceremony attended by over
1,400 employees at the McLaren Production
Centre in Woking, Surrey. 
Fresh airbag-related recalls affect 2.12
million cars in the US
2 February 2015 | OEM
US Transportation Secretary Anthony Foxx
announced the recall of more than 2.12
million Acura, Dodge, Jeep, Honda, Pontiac,
and Toyota vehicles for a defect that may
cause airbags to deploy inadvertently.
The recalls will provide vehicle owners
with a new remedy after the manufacturers’
original attempts to fix the defects proved
ineffective in some vehicles.
“Keeping the traveling public safe is our
number one priority, and we expect the
manufacturers to get this remedy right to
prevent injury to drivers and their families,”
Foxx said.
The new recalls cover 2.12 million Acura
MDX, Dodge Viper, Jeep Grand Cherokee
and Liberty, Honda Odyssey, Pontiac Vibe,
Toyota Corolla, Toyota Matrix and Toyota
Avalon models made in the early 2000s.
The vehicles were subject to earlier recalls
to address a problem with an electronic
component manufactured by TRW that
caused some airbags to deploy inadvertently
– that is, in the absence of a crash.
NHTSA
discovered
through
the
monitoring of incoming data from consumers
and automakers that some vehicles
remedied under the previous recalls may
have experienced inadvertent deployments.
NHTSA urged all three automakers to issue
new recalls to implement a more effective
remedy. NHTSA has identified about
40 vehicles in which airbags deployed
unexpectedly after receiving the original
remedy.
Action by consumers is especially
important because about 1 million Toyota
and Honda vehicles involved in these new
recalls are also subject to a recall related to
defective Takata airbags that may deploy
www.automotivepurchasing.com
with enough explosive force to cause injury
or even death to vehicle occupants.
Because of the dangers involved in an
inadvertent deployment, and because some
of the vehicles involved may also have
defective Takata airbags, NHTSA urges
consumers who were covered by the original
recalls to take their vehicles to their local
dealer for the original remedy. That remedy
significantly reduces the chance of an airbag
deployment that presents a safety risk.
“This is unfortunately a complicated issue
for consumers, who may have to return to
their dealer more than once,” said NHTSA
Administrator Mark Rosekind. “But this is
an urgent safety issue, and all consumers
with vehicles covered by the previous
recalls should have that remedy installed.
Even though it’s a temporary solution until
the new remedy is available, they and their
families will be safer if they take the time to
learn if their vehicle is covered and follow
their manufacturers’ instructions. A hassle is
much better than a family tragedy.”
NHTSA will take a series of additional
steps to ensure safety, including:
■■ Seeking additional information from
TRW, which made the electronic part
believed to be involved in the inadvertent
deployments, about the potential defect,
its causes, and whether other makes or
models might be affected.
■■ Seeking information from the automakers
about how quickly they can make the new,
more effective remedy available.
“NHTSA is committed to using every tool
available to make our roads safer, and that
includes using our authority and influence to
make sure companies are doing what they
should do to protect safety,” Rosekind said.

19
Retired Lockheed Martin executive
elected to GM Board
People
Mahindra announces new leadership
Environmental
team
at Mahindra Reva
Maini will have a wider role in the group
and will be responsible for incubating new
technology ventures and he will lead other
technology initiatives of the group.
He will continue to be associated with
Mahindra Reva and Formula-E Racing in an
advisory capacity.
Speaking on the appointment, Dr. Pawan
Goenka, Executive Director, Mahindra
& Mahindra, said: “Chetan Maini has
been synonymous with electric vehicle
technology and his vision and expertise has
been instrumental in pioneering innovations
in this space. Chetan is globally recognised
for this achievement and I wish to place
on record our sincere appreciation for his
immense contribution to electric vehicles
evolution. While welcoming Arvind to the
Mahindra family, I am sure he will take
Mahindra Reva to newer heights with his
diverse international exposure, technical
background and proven ability to drive
innovation and growth”.
A post graduate in Mechanical
Engineering and an MBA from the University
of Michigan, Mathew comes with over two
decades of experience with Ford. He is
credited with playing a major role in the
development of new vehicle and power
train program for Ford India and went on
to become the President and Managing
Director of Ford India in 2005. 
Finance & Markets
Vehicle Launch/Concepts
6 February 2015 | People
Mahindra & Mahindra announced that
Chetan Maini will move to a new role within
Mahindra Group, while Arvind Mathew
takes over as the new CEO of Mahindra
Reva.
Mahindra & Mahindra (M&M), India’s
leading SUV manufacturer, announced that
Chetan Maini, CEO, Mahindra Reva would be
moving to a new and diversified role within
the group.
The company has also announced the
appointment of Arvind Mathew as the
incoming Chief Executive Officer of its
electric vehicle subsidiary, Mahindra Reva.
Both the roles of Chetan Maini as well as
Arvind Mathew would be effective May 1,
2015.
General
Talking Points
6 February 2015 | People
General Motors (GM) announced the election
of Linda Gooden, former Executive Vice
President of Lockheed Martin Corporation,
to its board of directors effective February
5.
Gooden began her 40-year career at the
former Packard Electric Division of GM. She
gained 34 years of experience at Lockheed
Martin and held several senior management
positions. In 2010, she was appointed to
the National Security Telecommunications
Advisory Committee by President Barack
Obama.
“Linda brings proven leadership and
significant experience in information
technology and expertise in operations and
strategic planning,” said GM Chairman Tim
Solso. “Her background in the aerospace
and defense industry provides a diverse
perspective that will greatly benefit our
board.”
Under Gooden’s leadership, Lockheed
expanded its IT capabilities beyond
government customers to international and
commercial markets. During her tenure
as president of Lockheed’s IT division,
Gooden grew the organisation to become
a multibillion-dollar business. She was
responsible for integrated information
technology solutions, cyber solutions and
services to support worldwide missions
for civil, defense, intelligence and other
government customers.
Gooden retired from Lockheed Martin in
2013. She currently serves on several public
company boards including Automatic Data
Processing; WGL Holdings, a public utility
holding company; and Washington Gas Light
Company, a subsidiary of WGL Holdings.
Gooden received a computer technology
degree from Youngstown State University
and a Bachelor of Science degree in
Business Administration and Master of
Business Administration from the University
of Maryland.
The addition of Gooden brings the GM
Board to 13 members. 
Remy International makes changes to
its Board of Directors
Former Jaguar Land Rover executive
now heading FCA India
4 February 2015 | People
Fiat Chrysler Automobiles (FCA) India
announced the appointment of Kevin
Flynn as the new President and Managing
Director for India Operations.
The appointment is effective immediately.
Flynn replaces Nagesh Basavanhalli, who
left the company to pursue other interests.
Flynn is a veteran of the automobile
industry with 30 years of international and
multi-brand experience. He joins FCA from
20
Jaguar Land Rover, where he served as
Managing Director of Jaguar Land Rover
South Africa & Sub Sahara Africa.
Flynn will be responsible for strengthening
the overall sales of the Fiat brand in India
and the new brands that will be introduced
in the country. His role also includes the
management of service, parts and customer
care across more than 132 dealerships in 98
cities across 24 states in India. Fiat will be
introducing the Abarth brand in 2015, which
will have its own brand identity.
Commenting on the appointment, John
Kett, Vice President and General Manager,
APAC Operations, FCA said: “Kevin is a
strong, strategic and dynamic leader with
the ability to shape brand and business
culture. With his breadth of experience
and focus on customer experience, we are
confident that Kevin will drive FCA India into
the next phase of growth.” 
5 February 2015 | People
Remy International announced that its
Board of Directors has named John H.
Weber Chairman of the Board. The Board
also appointed new independent members,
Karl G. Glassman and Charles G. “Chip”
McClure.
Glassman was designated as a Class II
member of the Board, while McClure was
designated as a Class III member. The
Board appointed Glassman and McClure
to serve on the Nominating and Corporate
Governance Committee.
Karl brings valuable manufacturing
experience and a global perspective to the
Remy Board having held senior executive
positions with a diversified manufacturer
like Leggett & Platt and serving on the Board
of Directors of the National Association of
Manufacturers.
Chip brings strong, global knowledge of
the automotive industry having previously
www.automotivepurchasing.com
held board and senior executive positions
with Meritor, Federal-Mogul and Detroit
Diesel, and currently serves on the board
of directors of the Penske Corporation and
DTE Energy.
Remy International’s President and CEO
Jay Pittas stated: “We are delighted to have
John serve as our Board Chairman. His
familiarity with the business and industry
experience will certainly serve Remy well.
We are also very pleased to have two
industry veterans in Karl and Chip join our
Board. The Nominating Committee actively
sought out candidates to complement
the current board composition, looking
for proven expertise in global operations.
Clearly, these appointments fit the desired
profile and bring a wealth of experience to
our company. I look forward to working with
the Board to set and execute our strategy
and maximize shareholder value.” 
Latest issue out now
www.automotivesupplychain.org
Jaguar Land Rover
Exclusive Interview
David Dyke and Gareth Williams
January-March 2015
BMW
Volkswagen
Nissan
Delivering the ultimate
driving machine
Looking to expand in
Chattanooga
Seeking to maximise the
potential of the Alliance
issue13-cover.indd 1
19/12/2014 11:10:57
To receive the latest issue of
Automotive Supply Chain magazine in print
Click here to subscribe
www.automotivepurchasing.com
21
DENSO gets new
President and CEO as well
as a new Chairman
3 February 2015 | People
DENSO announced plans to elect Koji Arima
as new President and CEO after the annual
shareholders meeting in June. Current
President and CEO Nobuaki Katoh will be
promoted to Chairman.
“I am both honored and determined
to lead DENSO to further success as we
continue to focus on developing world-first
technologies, innovations in manufacturing,
and true globalisation,” Arima said. “I am
dedicated to meeting the needs of our
current and future customers, as well
as fostering a sense of community and
collaboration among DENSO’s 140,000
global employees.”
Arima joined DENSO in 1981, after earning
a bachelor’s degree in Engineering from
Kyoto University in Kyoto, Japan. He currently
serves as Senior Executive Director of
DENSO’s Manufacturing Innovation Center.
Before assuming leadership of the
Manufacturing Innovation Center, Arima’s
assignments included serving as president
of DENSO Manufacturing Italia and as
Executive Director of DENSO’s Engine
Electrical Systems Business Unit. Additional
overseas experience included a stint
at DENSO Manufacturing Tennessee in
Maryville, Tennessee.
Katoh has served as DENSO’s President
and CEO since June 2008. Katoh led
DENSO through the economic recession that
followed the Lehman Brothers bankruptcy
and the instability caused by the Great East
Japan Earthquake, focusing on sustainable
growth and increasing localisation.
“It has been my honor and pleasure to
serve as DENSO’s President for the past
seven years,” said Katoh. “Arima has the
qualities DENSO needs to stay competitive
in the rapidly changing global business
environment -- a clear vision for the future,
strong leadership and global experience,
and broad business perspective.” 
Standard Motor Products
announces new President
2 February 2015 | People
Standard Motor Products, an automotive
replacement parts manufacturer and
distributor, announced that its Board
of Directors has appointed Eric Sills as
President of the Company.
Sills, 46, is currently Vice President Global
Operations. Sills will now join the Office of
the Chief Executive, where he will serve
together with Lawrence Sills, Chairman and
CEO; John Gethin, COO; and James Burke,
Vice President Finance and CFO.
William Turner, Standard Motor Products’
Presiding Independent Director, stated:
“We are very pleased to announce this
appointment. Eric joined the Company
in 1991, and has taken on leadership
roles of increasing responsibility. He is
currently responsible for all manufacturing,
distribution, engineering and supply
chain management both in the U.S. and
worldwide. Under Eric’s leadership, the
22
Company has increased manufacturing
capacity, expanded production in low cost
areas, enhanced its global supply chain, and
successfully integrated eight acquisitions in
the past three years. All these have played
a major role in increasing the Company’s
profitability. In addition, during his 24
years with the Company, Eric has acquired
extensive knowledge of the customers and
the industry.
“In his new position, he will continue to
be responsible for his current activities while
becoming increasingly involved in sales,
marketing, and finance. Our Board believes
that Eric’s experience, expertise, and proven
leadership will make him an ideal candidate
to help lead the company into the future.”
Eric Sills earned an MBA from Columbia
University and a BA from Bowdoin College.
He is the son of Lawrence Sills, Standard’s
Chairman and Chief Executive Officer. 
Aston Martin announces
management change
2 February 2015 | People
Aston Martin (UK) announced that
experienced finance professional, Vikram
Bhatia, will assume the responsibilities of
Chief Financial Officer (CFO) with immediate
effect, reporting to Chief Executive Officer,
Dr Andy Palmer.
Bhatia trained with Deloitte and has more
than 30 years’ experience, spanning blue
chip and private equity organisations.
Dr Palmer said: “I’m pleased to confirm
that Vikram will join Aston Martin as CFO
at this important time. Vikram inherits an
experienced and professional financial
team that, together, will contribute to the
transformational management group I’m
building to tackle the most ambitious
investment period in our 102-year history.”
Former CFO, Hanno Kirner, has left the
company to assume a position at a British
plc outside the automotive industry. Palmer
added: “We thank Hanno for his valuable
contribution to Aston Martin and wish him
well in his new challenge.” 
David Kneisler elected Chairman of
Automotive Industry Action Group
2 February 2015 | People
Dana announced that David Kneisler, Vice
President, global quality, has been elected
Chairman of the Automotive Industry Action
Group (AIAG).
AIAG is a not-for-profit, member-supported
organisation that works collaboratively with
automotive and manufacturing companies,
suppliers, and service providers to help them
operate at peak performance. Kneisler, a 20year Dana veteran, joined the AIAG board in
2006 and has served as Vice Chairman for
the past two years.
“Dana’s involvement with AIAG is a winwin scenario, as we work with our customers,
industry peers, and the automotive supply
base as a whole to improve safety, quality,
and efficiency,” said Kneisler. “As a supplier,
‘seamless, efficient, and responsible’
resonates. Anything that we can do as an
industry to positively impact product safety
or quality, or to improve industry efficiency,
benefits the OEMs, the entire supply base,
and the consumer.”
Kneisler has served in multiple roles
www.automotivepurchasing.com
with Dana including program management,
plant management, and in quality roles
before becoming Vice President of Global
Quality in 2007. Kneisler’s responsibilities
include global governance for strategic
and operational quality, co-chair of Dana’s
Product Safety Committee, and leadership
for Dana’s Technical Problem Solving /
Reliability Engineering, Quality Systems, and
Supplier Development groups.
“David’s dedication to our industry and
his commitment to collaborating with our
Dana colleagues and with customers at
all levels has made a significant impact on
AIAG, and on Dana,” said George Constand,
Dana’s Chief Technical and Quality Officer.
“We proudly support AIAG, and I am
pleased David has been recognised for his
contributions.”
Kneisler earned a Bachelor of Science
degree in business administration from
Michigan Technological University in 1983,
followed by a master’s degree in business
administration from the University of
Michigan-Flint in 1987. 
ZAP and Jonway Auto will be OEM by
Dong Feng Motor Corporation
Tier Suppliers
MJ Allen receives £5.75 million
Supply
Chain
funding
package
from HSBC
6 February 2015 | Tier Suppliers
The Kent-based engineering company
specialising in metals design and
manufacturing has expanded its export
markets thanks to a funding package worth
almost £6 million from HSBC.
MJ Allen, which specialises in architectural
metalworks, automotive components and
transmission systems design, and other
metal products was provided £3.7 million
in invoice financing along with a £1.7 million
commercial mortgage and £1.35 million in
equipment finance. The funding package
has been used to support the company’s
expansion into new overseas markets,
including Portugal and Bosnia, and is
expected to boost profits by 60 per cent by
2020.
MJ Allen switched to HSBC in 2014 as
it was looking for a partner to help grow
internationally. The business currently
exports to 42 countries, and is considering
using HSBC’s loan facilities to expand
through acquisition, particularly in Europe,
where 40 per cent of its metal automotive
products are sold.
Tim Allen, Managing Director of MJ Allen,
said: “We switched to HSBC as we were
eyeing exporting into new markets, both in
Europe and the rest of the world. We felt
HSBC would be a good partner to help us as
we grow our global footprint.”
“Fortunately we’re now in 42 markets,
and expect that number to grow to 50 by
2020. Thanks to the equipment finance we
received from HSBC for our casting and
machining division, we can now produce
20 per cent more to satisfy growing order
numbers. We’re particularly optimistic on
Europe, where we are seeing increasing
demand.”
Rhydian Davies, HSBC Regional Director
for UK Corporates in the South & East, said:
“MJ Allen’s success speaks for itself. Last
year, they won HSBC’s Regional Global
Connections competition in the South &
East, as well as the Kent Invicta Chamber
of Commerce Business Commitment to
the Environment Award. They are a great
example of what an ambitious British
business can achieve.”
“Despite the challenging times in Europe,
for example, MJ Allen continues to find
opportunities to export to the region. At
HSBC, we are proud to be able to support
companies such as MJ Allen implement their
expansion plans and export overseas.” 
Telematics/Connected Car
Innovation
People
Environmental
Agility joins forces with Clean Energy
Finance & Markets
Vehicle Launch/Concepts
General
6 February 2015 | Tier Suppliers
Agility Fuel Systems and Clean Energy
announce joint CNG fuel system sales
programme.
Agility Fuel Systems, the leading designer
and producer of natural gas fuel storage
and delivery systems for heavy duty trucks
and buses, and Clean Energy Fuels, the
leading provider of natural gas fuel for the
transportation industry in North America,
announced today a joint CNG fuel system
sales program to reduce the incremental cost
of heavy-duty natural gas trucks. Under the
program, Agility and Clean Energy will work
with trucking customers and offer CNG fuel
systems installed at a substantially reduced
cost when there is a natural gas fueling
agreement.
“Our goal is to give heavy-duty natural
gas truckers a ‘diesel-like’ experience, which
means it is as easy to buy, fuel and use with
the added benefit of using cleaner and less
expensive natural gas,” said Barry Engle,
CEO of Agility. “We are excited to partner with
Clean Energy and will work together to drive
adoption of natural gas as a fuel for heavy duty
vehicles.”
Clean Energy continues to open locations
throughout its nationwide network of natural
gas fueling stations to serve America’s truckers.
This program reduces the incremental cost for
operators and is the latest initiative to remove
barriers to the widespread adoption of natural
gas fueling throughout the trucking industry.
“Reducing the upfront cost of switching to
natural gas is critical for America’s trucking
industry,” said Brett Lindsay, Regional Vice
President of Clean Energy. “Our Fuel System
sales program with Agility addresses this issue
directly and is another compelling product
offering to help fleet operators make the
switch to natural gas.” 
6 February 2015 | Tier Suppliers
ZAP and Jonway Auto’s EV Minivan will
be OEM by Dong Feng Motor Corporation,
one of the four China’s Largest Auto Group
through Shi Kong, Zhejiang.
ZAP, an Electric Vehicle (EV) automotive
company incorporated in California Bay
Area, and Jonway Auto signed an OEM
contract on February 2 for 5000 units of ZAP
Jonway’s EV Minivans that will be sold under
the brand of Dong Feng Motor Corporation,
one of the top Auto enterprise groups in
China through its partner Shi Kong (SKIO
Matrix) Electric Vehicle Company, based in
Hangzhou, Zhejiang Province.
Shi Kong is the integrator and agent
for Jonway’s EV minivan to Dong Feng
Automobile, one of the top four state owned
auto manufacturers in China and also the
second automobile company established by
the Chinese government. Dong Feng is the
joint venture partner of Honda, Nissan and
Citroen/Peugeot.
ZAP Jonway’s EV minivan will be
typed approved as a delivery van with
the enhanced battery capacity specified
by Dong Feng Motor Corporation and
integrated by its partner Shi Kong.
Jonway’s type approved passenger
EV minivan will be the platform for getting
certification for the newly configured
delivery van to be sold into Dong Feng’s
massive nationwide auto dealership
network. Jonway’s EV minivan will be the
first EV minivan to be offered by Dong Feng
for mass market in volume production.
ZAP Jonway’s EV minivan will be
configured as a cargo van with passenger
seats removed to allow room for cargo and
also additional battery capacity to operate
over 300km in range per recharge. The
batteries used will be supplied by Tianjin
Lishan Battery, which is a long time strategic
partner of ZAP and Jonway Auto.
This volume contract of 5000 vehicles is
for the first year after completing certification
of the new configuration. Jonway and Shi
Kong are targeting delivery of these EV
minivans for Dong Feng in June 2015.
Therefore, the sales of Jonway’s EV minivan
with the Dong Feng OEM label will begin
second half of 2015, through its partner Shi
Kong (SKIO Matrix). 
Nomad is wipered-out!
4 February 2015 | Tier Suppliers
Ariel’s stunning new Nomad all-terrain
car made its debut at the Autosport
International show in Birmingham in
January and will offer a completely different
type of all-terrain high performance driving
when it is released for sale in the summer.
The Ariel Nomad is able to reach 60mph
in a blistering 3.4 seconds; with a top speed
of 125mph, the car is powered by a 2.4 litre
Honda engine that has been configured
with Ariel electronics, with an end result of
235bhp at 7200rpm.
With this being such a unique vehicle
aesthetically, and its sister car the Ariel
Atom being an iconic sports car, B Hepworth
and Co Ltd, a Midlands-based manufacturer
of high performance bespoke windscreen
wiper systems was excited to have the
opportunity to work with Ariel to develop the
Nomad’s wiper system. The project began in
2012; dual pendulum wrap-over wipers and
wiper arms with a 50Nm motor were used,
but there were some complex challenges
for their design team to overcome, most
notably packaging the system around the
structure of the vehicle.
Martyn Groves of B Hepworth commented
“Our expertise in developing and building
bespoke, high quality wiper systems, whilst
simultaneously being a UK manufacturer
meant that we were the ideal choice. With
Ariel being a well-known name amongst
petrol head and sports-car enthusiasts
worldwide it was an exciting project to be
involved in and a perfect way to show our
flexibility to design bespoke wiper systems”
Ariel Director Simon Saunders thinks
that the Nomad will be bought mainly for
recreational driving, both on and off-road,
but also feels that the car could compete
“with honour” in the Dakar Rally. The Nomad
has been tested on well known WRC stages,
winch challenge courses and closed forest
roads and so far the Nomad has shown
excellent levels of performance, adding up
to a whole new kind of driving fun. 
Talking Points
www.automotivepurchasing.com
23
Johnson Controls renews strategic
partnership agreement with Lectra
6 February 2015 | Tier Suppliers
Johnson Controls has extended its
partnership with Lectra for three more
years, according to a statement released on
February 5.
Lectra, the world leader in integrated
technology
solutions
dedicated
to
industries using soft materials—fabrics,
leather, technical textiles and composite
materials—is has announced that Johnson
Controls has reaffirmed its confidence in
Lectra by extending their global partnership
agreement for an additional three years. To
preserve and strengthen its position as a
market leader, Johnson Controls will acquire
all of its high ply fabric cutting equipment
and related services exclusively from Lectra.
Johnson Controls is the world’s largest
complete automotive seating supplier,
providing innovative, stylish seating systems
to vehicle manufacturers worldwide. The
company supplies over 50 million cars every
year from 220 production plants worldwide.
During the first 10 years of the agreement,
Lectra supported Johnson Controls in
transforming their automotive trim cutting
rooms worldwide, as they abandoned
traditional die presses in favor of more
flexible automated cutting. The company
now has more than 180 Vector® solutions
installed worldwide. Johnson Controls’
adoption of the Vector solution—ideal for
high-volume cutting of a wide variety of
automotive seat materials—and the resulting
increase in production flexibility, throughput
and material efficiency has provided the
seating supplier with a significant advantage
in the highly competitive automotive
industry.
The renewal of this agreement is
testament to the role of Lectra’s customer
care,
expertise
and
state-of-the-art
technology in enabling a company such as
Johnson Controls to improve its operational
and manufacturing performance. The
continuing collaboration will focus on
optimizing the agility of Johnson Controls’
production processes, a strategic necessity
in the increasingly complex automotive
parts supply business.
“At Johnson Controls, we are continually
investing in technologies and solutions that
will allow us to produce more efficiently,
while still providing our customers with
consistent quality products. Extending this
agreement underscores the value of our
relationship with Lectra to help us achieve
our strategic objectives,” says Willy van-Looy,
Global Director, Advanced Manufacturing
Engineering, Trim Operations, Johnson
Controls.
As part of the new agreement, Johnson
Controls will also migrate to the latest
generation of Lectra services for all of its
Lectra equipment. Working 24 hours a
day, the company cannot afford to lose
production through unexpected stoppages.
Lectra’s expertise and technology, combined
with its predictive maintenance services,
deliver maximum uptime of the cutting
solutions, reduce the cost per cut piece and
ensure Johnson Controls has the ability to
honor their commitment to deliver on time.
“It is an honor for Lectra to have
such a long-standing relationship with
Johnson Controls, one that is based on a
common culture of innovation and bestpractice sharing. With Lectra’s 40 years’
of expertise and experience in developing
and implementing the most advanced
technology solutions, and Johnson Control’s
skillful application of them to manufacture
their seating systems, we are confident
that this will continue to be a rewarding
collaboration between our two companies,”
says Daniel Harari, Lectra CEO. 
Find us
online...
www.facebook.com/autopurchasing
www.twitter.com/AutoPurchasing
24
“Electric cars are good, but connected
electric cars are better,”
says Bosch CEO Denner
4 February 2015 | Tier Suppliers
Powertrain electrification is picking up
pace. The currently low oil price will not
change that fact. This was the message
underlined by Dr. Volkmar Denner,
Chairman of the Board of Management
of Robert Bosch GmbH, at the Car
Symposium in Bochum, Germany.
Bosch expects roughly 15% of all new
cars built worldwide to have at least a
hybrid powertrain by 2025. For the Bosch
CEO, advances in battery technology are
the key to lower vehicle prices. Denner,
whose responsibilities on the board
of management include research and
advance development, believes that by
2020 batteries will deliver twice as much
energy density for half the present cost.
Electrification enhances the
attractiveness of combustion engines
The EU has set strict fleet CO2 targets
for 2021. For this reason alone, Bosch
expects hybrid powertrains to become the
standard for SUVs. This will give diesel
and gasoline engines an extra boost.
“Electrification will take combustion
engines to new heights,” Denner said. With
electric support, the combustion engines
of the future will consume significantly
less fuel and be even cleaner. And the
additional torque from the electric motor
will add to driving enjoyment. Moreover,
falling battery prices will make hybrids
considerably more affordable.
Denner used the example of China to
show how important it is in a mass market
for electric cars to be suitable for everyday
use. There are already more than 120
million electric scooters on China’s roads.
And in China, Bosch sells the electric
wheel hub drive for such e-scooters. With
a top speed of 40 kph, this popular form
of transport is fast enough for the traffic
conditions in megacities.
And their range of roughly 50 kilometers
is sufficient for everyday journeys. “The
reason these two-wheelers are such a
success is that they are a perfect match
for Chinese commuters’ needs,” Denner
said. And because they are designed
to meet these needs, many models
are less expensive than two-wheelers
with combustion engines. According to
Denner, the task now is to make such
tailor-made solutions possible for cars as
well.
www.automotivepurchasing.com
One app to recharge the battery,
nationwide
The main factor helping to make
electromobility
convenient
will
be
connecting vehicles with the internet of
things. “Electric cars are good but connected
electric cars are better,” Denner said. At the
moment, recharging vehicles is complicated.
But this is expected to become much more
convenient. Bosch Software Innovations,
the Bosch Group’s software and systems
unit, has developed an app that makes it
significantly easier to reserve the charge
spots of different providers and pay for
the electricity. Up to now, doing this would
have required a different customer card
for each provider. Now all drivers need is a
smartphone, the app, and a PayPal account
to recharge anywhere in Germany. Bosch
also complements this with a software
platform that links 80 percent of all charge
spots in Germany. As this example shows,
Bosch no longer sees itself solely as a
supplier of automotive components. The
company is now combining its expertise
in all three mobility domains – automation,
electrification, and connectivity – and will
in the future be offering its customers
integrated mobility solutions.
Fun as a reason to buy: e-bikes show the
way
However, rational arguments alone are
not enough to win drivers over to electric
powertrains. In Bosch’s view, emotion
and fun play a decisive role. The example
of e-bike drives illustrates this. Bosch’s
“electric tailwind” makes riding a bike a joy
– for serious athletes as well as recreational
cyclists. Bosch is now the European market
leader in this area, and its e-bike drives
feature in more than 50 bike brands. “The
e-bike is the most successful electric
vehicle in the EU,” Denner said, adding
that customers pay considerably more on
average for e-bikes than they do for classic
ones. “For more than 100 years, riding a bike
was a mechanical process. No one saw any
reason to change it. Then along came the
e-bike, and completely redefined a market
everyone thought would never change,”
Denner said. The same could be true for the
auto industry, he added. The Bosch CEO
stressed that the supplier of technology and
services will be using its comprehensive
systems and connectivity know-how to take
electromobility a decisive step forward. 
www.automotivepurchasing.com
25
China’s tier 1s improve infotainment
products and capabilities says
strategy analytics
5 February 2015 | Tier Suppliers
China’s domination of the global vehicle
manufacturing marketplace, forecast to be
the largest vehicle producing region in 2015
with production of 24.6 million units, is
increasingly reflected in the shift of industry
investment to the East.
In 2017, China will overtake North
America to become the number two OEM
infotainment market.
The fast growth of the automotive
infotainment market in China is creating
huge opportunities as well as significant
challenges for Tier 1 infotainment suppliers.
This rapid market growth means plenty
of business for all. And China’s rapid growth
has meant that many import OEMs have
had to develop systems specifically for the
Chinese market that reflect unique local
market conditions, including human machine
interfaces and vehicle connectivity.
Strategy
Analytics’
Automotive
Multimedia and Communications Systems
(AMCS) service’s report, titled China:
Tier 1 Infotainment Supplier Overview,
provides descriptions and analysis of 21
Tier 1 infotainment suppliers, illustrates
their operations in China, identifies the
major products they are providing to OEM
customers, and discusses industry projects
they’re involved with.
For the major Tier 1s, the report also
provides analysis of their respective business
strategies and competitive positions.
“As non-Chinese OEMs become involved
in the entry-level market, it will make more
sense for them to consider domestic Tier
1 suppliers since the major pressure in the
entry level market will be cost,” said Kevin
Li, Senior Analyst with Strategy Analytics’
Automotive Multimedia and Communications
Systems service.
“Meanwhile, domestic product quality is
improving. Beyond this, domestic OEMs are
penetrating the mid-range market, so the
non-Chinese Tier 1 suppliers can also be
involved in domestic OEMs’ business.”
The fast growth of the infotainment market
in China is creating huge opportunities and
significant challenges for Tier 1 infotainment
suppliers.
The rules of the game are changing
rapidly with domestic suppliers and new
arrivals from outside China competing and
partnering on a wide range of projects.
Further
complicating
the
active
development of the local market is the rapidly
changing nature of in-vehicle infotainment,
which is creating opportunities for new kinds
of Tier 1 suppliers including wireless carriers,
content providers and marketing companies
— further challenging the traditional Tier
1 leaders, such as Continental, Harman,
Panasonic, and Bosch.
“Chinese customers are looking for
infotainment solutions that combine high
quality, reliable technology, and reasonable
cost,” said Richard Robinson, Director for
Strategy Analytics’ Automotive Multimedia
and Communications Systems service.
“Rising complexity and the need to deploy
solutions in shorter timeframes to meet
consumer demands are driving the need
for more flexible solutions. Tier 1 suppliers
need to meet these expectations in order to
provide infotainment solutions that deliver
great in-vehicle experiences.” 
Are you one of
America’s Best?
Nominate Now...
26
BorgWarner begins research and
development at new engineering
center in Brazil
5 February 2015 | Tier Suppliers
BorgWarner strengthens its position as a
leading supplier of advanced turbocharging
and thermal systems technologies with its
new engineering center in Itatiba City
BorgWarner
expands
its
product
leadership in highly engineered engine
and drivetrain components with the start
of research and development at its new
engineering center in Itatiba City, Brazil.
BorgWarner’s
state-of-the-art
21,500-square-foot
(2,000-square-meter)
engineering center provides capabilities for
application engineering and research and
development to create new technologies
for the rapidly growing Brazilian automotive
market.
Totaling over 226,000 square feet
(21,000 square meters), the campus in
Itatiba also includes a production facility
to manufacture several environmentally
friendly technologies for passenger cars and
commercial vehicles such as turbochargers,
viscous fans and fan drives, engine timing
systems and emissions technologies.
“With our new engineering center in
Itatiba City, we are strengthening our
position as a leading supplier of advanced
powertrain
solutions
engineered
to
improve fuel economy, reduce emissions
and increase performance,” said James
R. Verrier, President and Chief Executive
Officer, BorgWarner.
“Driven by Brazil’s INOVAR-AUTO
regulations, BorgWarner supports customers
with fast-to-market solutions and introduces
new technologies precisely tailored to the
needs of the market.”
BorgWarner’s campus in Itatiba City
is strategically located close to major
development regions, only 80 km northwest
of Sao Paulo.
The new engineering center features two
engine test stands to quickly develop and
validate new technologies locally to meet
the unique specifications of the Brazilian
market. For example, BorgWarner’s leading
turbocharging technologies are optimised
for flex fuel engines that use Brazilian fuel
containing either 20-25% ethanol or 100%
ethanol.
With the ability to further expand its
testing capabilities with up to four engine test
benches in the future, the new engineering
center is another important element of
BorgWarner’s efforts to provide fuel-efficient
technologies that reduce emissions and
enhance performance for vehicles around
the globe. 
TI to drive innovation for IoT, industrial and
automotive applications at embedded world
4 February 2015 | Tier Suppliers
At embedded world in Nuremberg, Germany,
Texas Instruments (TI) will demonstrate
how its embedded processing and analog
technologies are driving innovation in
embedded system designs.
On February 24-26, visitors can
experience how TI technology is providing
new capabilities for the Internet of Things
(IoT), new experiences in industrial and home
automation, and innovation in automotive
and ultra-low power applications.
Additionally, attendees can talk with TI
design experts and explore its LaunchPad
evaluation
kits,
BeagleBoards
and
SensorTag ecosystems in the hands-on
workbench area, evaluate several TI Designs
reference designs and get a personal near
field communications (NFC) bio-patch that
can measure skin humidity and temperature.
www.automotivepurchasing.com
Additionally,
the
following
key
demonstrations can be found in TI’s booth:
■■ IoT sensor network: Experince the
industry’s broadest portfolio of “IoT-ready”
products including microcontrollers,
processors, wired and wireless
connectivity technologies, sensors, and
mixed-signal and power management
solutions.
■■ Automotive power steering: See TI’s
all-in-one automotive power steering
technology in a single car demonstrating
various solutions including: ADAS,
infotainment, instrument cluster, Electronic
Power Steering (EPS), Safety and sensors.
■■ Industrial communication: Learn how TI’s
Sitara™ AM335x Industrial Communications
Engine (ICE) enables up to five industrial
protocols. 
Mentor Graphics announces Automotive Ethernet
support for its AUTOSAR design solutions
4 February 2015 | Tier Suppliers
Mentor Graphics Corporation announced
the availability of Automotive Ethernet
support in the Volcano VSA product for
network design of both AUTOSAR-based
and non-AUTOSAR electronic control units
(ECUs).
Increasingly, in areas in which high
bandwidth and reliable performance are
essential Ethernet is being used. These
include advanced driver assistance systems
(ADAS), vehicle network backbones,
audio video bridging (AVB) systems, and
diagnostic communication over Internet
Protocol (DoIP). The Mentor Volcano VSA
tool addresses the network-wide timing
analysis challenges where a mixture of
CAN, FlexRay, and Ethernet-based network
busses co-exist. The AUTOSAR standard
supports timing definition for all elements in
a mixed-topology network. The Volcano VSA
tool addresses the challenge of accounting
for the many different timing paths.
“The rapid growth of software and
electronic systems in today’s vehicles
has meant that existing vehicle network
technologies are not able to handle the
data communication load created,” said
Scot Morrison, General Manager, Embedded
Runtime Solutions, Mentor Graphics.
“The high-bandwidth capabilities of an
Ethernet network, along with competitive
manufacturing costs, have made it a good
choice for many ECU interfaces within a
modern vehicle. Our Volcano VSA design
tools will allow engineers to efficiently
design hybrid networks utilising Ethernet,
CAN, LIN and FlexRay technologies.”
AUTOSAR (AUTomotive Open System
ARchitecture) is an open and standardised
automotive software architecture, jointly
developed by automobile manufacturers,
suppliers and tool developers. Users of
Volcano VSA are now able to develop
and integrate networking functions in an
AUTOSAR environment. 
SunEdison commissions 7.72 MW
solar system for Brakes India
4 February 2015 | Tier Suppliers
SunEdison have installed a solar power
plant for Brake India that will generate 7.72
megawatts of electricity.
SunEdison, the world’s largest renewable
energy company, and Brakes India Limited
(BIL), a leading manufacturer of Automotive
and Non-Automotive Braking Systems and
Ferrous Castings in India, announced that
they have installed a solar power plant that
will generate 7.72 megawatts of electricity at
Brake India’s facilities in Munanjipatti in the
state of Tamil Nadu.
“We are proud to be working with the
leading automotive supplier Brakes India to
lower their carbon emissions and electricity
costs,”
stated
Pashupathy
Gopalan,
President of SunEdison Asia-Pacific. “Solar
is a great way for commercial consumers
in Tamil Nadu to generate reliable, low cost
electricity.” Gopalan added: “This system
also happens to be the largest solar power
plant built to date under the Group Captive
Scheme inIndia.”
“SunEdison was an obvious choice for
Brakes India when we began our search for
procuring solar power,” said S. Kesavan, CEO
of Brakes India. “SunEdison’s size, scale,
technology and track record of delivering
worry-free solar were all very convincing
factors in our decision. This SunEdison system
is built with state-of-the-art trackers which
will allow us to harness more energy from
the sun. This collaboration with SunEdison
strongly supports our commitment to clean
and renewable energy.”
Brakes India approached SunEdison to
develop this project to be in compliance
with the Solar Purchase Requirement set
out by Tamil Nadu Electricity Regulatory
Commission (TNERC) and the Tamil Nadu
Generation and Distribution Corporation
Limited (TANGEDCO), which states that high
tension wire customers must source 6% of
their energy use from solar.
SunEdison will provide financing and
install the solar system, which features
advanced trackers and high efficiency solar
panels to maximize the amount of electricity
generated. The system will generate more
than 14 million kWh of electricity a year,
which will offset more than 6% of Brakes
India’s electricity use. The system is built
in accordance with the Group Capture
Scheme legislation that was introduced by
the Electricity Act of 2003, which allows
customers to purchase electricity directly
from an independent power provider without
involving the local energy distribution
company. 
Faurecia Fraser plant celebrates Ford
Q1 Certification
4 February 2015 | Tier Suppliers
Faurecia, North America’s sixth-largest
automotive supplier, announced that its
interior systems manufacturing facility in
Fraser has been awarded Q1 certification
from Ford.
Faurecia and Ford celebrated the
accomplishment today. The 793 employee
facility, which opened in 2006, manufactures
the door panel, center console and other
interior components for the Ford Focus.
To achieve Q1 certification, Ford suppliers
must meet stringent criteria, including:
International Organisation of Standardisation
(TS 16949 & ISO 14001) certification, proper
implementation
of
quality
operating
and management systems, as well as
environmental management systems and
customer endorsements.
“Receiving Ford Q1 certification does
more than guarantee that the Fraser
plant is in-line with Ford’s rigorous quality
standards,” Manfred Kwade, President
of Faurecia Interior Systems (FIS) North
America, said. “The recognition is proof of
Faurecia’s commitment to our customers and
excellence in automotive manufacturing.”
Joe Lupinski, Fraser’s Plant Manager,
added that earning this achievement
demonstrates the effectiveness of the
Faurecia Excellence System (FES). The
pragmatic operating system ensures
excellence and continuous improvement
in quality, cost and delivery are instilled in
every stage of the manufacturing process.
“FES principles guide us, allowing us to
meet our customers’ requests,” Lupinski said.
“Because FES gives us the tools to empower
our employees and deliver quality products,
we can adapt as the customer needs. We are
able to apply Fraser’s collective experience
and know-how to support continuous
improvement both with Ford and within
Faurecia through the mindset and language
of FES.”
In North America, FIS produces a complete
line of automotive interior products from its
Auburn Hills, Michigan, R&D center and 12
manufacturing facilities. 
Brose UK aims to fill engineering skills
gap with new Training Academy
2 February 2015 | Tier Suppliers
Brose UK, one of the fastest growing
automotive suppliers in the UK’s West
Midlands, has highlighted its commitment
to developing the best manufacturing talent
by investing up to £3m in its new Training
Academy between now and 2018.
The
internationally
operating
mechatronics specialist is looking to address
the skills shortage by providing existing and
new workers with access to continuous
development courses, technical training and
support with soft skills.
This investment, which has been
supported by a £1.49m grant from the
Government’s new Skills Fund, has been
channeled into developing flexible training
to support the business, incorporating new
E-learning stations, employing specialist
trainers and creating modular training cells.
Staff can now gain the skills they are
going to need to work on current and future
platforms.
The Academy will also play a pivotal role
in driving the firm’s approach to graduates,
apprentices and interns, with 25 currently
employed and a further 20 due to start in
2015... the majority sourced from nearby
schools, colleges and Universities.
“We have more than doubled the size
of our operations in Coventry over the last
eighteen months, taking on another 200
people and opening two additional sites in
the City,” explained Ruth Owen, HR Director
at Brose UK.
“This growth comes with its own set of
challenges and we are continually looking
at new ways to develop existing members
of staff and also ensure that the new
people joining us fit seamlessly into the
Brose culture of teamwork and world class
www.automotivepurchasing.com
manufacturing.”
The Training Academy will identify and
develop specific training for each member
of staff, whether that is leadership and
management, technical upskilling or even
learning best practice manufacturing
techniques on the modular cells the
company has set up.
Ruth continued: “The support we’ve
received from Government has been crucial
and certainly helped us to accelerate the
introduction of this initiative by nearly a year.
It also gives us the perfect platform to go
after new car models and platforms knowing
we’ve got the right infrastructure in place to
train and develop our engineers.”
Brose’s ‘Apprentice of the Year’
Brose has always supported apprentices
and the Academy will provide further
structure to the programme, which includes
the company’s Apprentice of the Year Award.
Electrical and Electronic Maintenance
apprentice Sam Egginton is one of the
company’s brightest manufacturing stars
having just received this title.
“I’ve already completed my BTEC part of
the course and am now progressing toward
my Higher National Certificate, which will be
completed next year. Working at Brose has
given me a great platform to develop my
skills in a real hands-on manner. I’ve learned
a lot from shadowing more experienced
members of our team,” explainedEgginton.
“Every day is different and I’m continually
being given greater responsibility. For
example, I’m now the first point of contact for
the majority of building issues and recently
played a major role in project managing the
facilities layout of our third plant. You can’t
buy that sort of experience.” 
27
Jebsen and CleanOil
collaborate to produce highquality recycled lube oil
4 February 2015 | Tier Suppliers
In support of the government’s promotion of clean energy for China, Jebsen Group and
CleanOil Investment are cooperating to produce high-quality recycled base oil and
lubrication oil for industrial and automotive applications.
The two partners are currently building
a state-of-the-art oil refinery in Gaolan Port
Economic Zone, Zhuhai. Taking advantage
of CleanOil’s operational and technical
expertise and patented oil re-refining
technology, the new plant will recycle used
lube oil to produce Group II base oil and
high-quality lube oil for cars, trucks and
industrial machinery. Production is expected
to begin by the second half of 2015, with the
plant eventually producing 20,000 tons of
oil per year.
Jebsen Group will draw on its knowledge
of China’s automotive aftermarket and its
China-wide sales and distribution network of
industrial products in the region to support
the new business and meet growing demand
for recycled lube oil.
“As a technology innovator, CleanOil
is pleased to combine our strengths with
Jebsen Group to support China’s green
growth. Jebsen’s expertise and reach in the
industrial and automotive sectors will help
us grow the market for high-quality recycled
lube oil to benefit the environment and
contribute to China’s continuing economic
growth,” said Antony Louis Marden,
Chairman of CleanOil Investment.
At present, around 60-70% of China’s
annual lube oil consumption of around 8
million tons is collected for re-processing,
but less than 10 percent of this is re-refined
as lube base oil. This percentage is set to
rise as the practice of burning recycled
lube oil or distilling it into low-grade fuel
is phased out. At the same time, soaring
private car use in China is contributing to a
rise in demand for lube base oil of around 10
percent per year, which also increases the
volume of used oil available for recycling.
Closed loop recycling of lube oil at the
new CleanOil plant will efficiently produce
high-quality base oil of an industry-accepted
standard without causing secondary
pollution. This will satisfy market demand for
lube oil while reducing reliance on imported
base oil. It will also help to prevent used oil
being dumped, avoiding possible pollution
of land and waterways or reused in a manner
that can contribute to poor air quality.
28
Said Hans Michael Jebsen, Chairman
of Jebsen Group: “Since over a century,
Jebsen has served the evolving Chinese
markets and consumers. Jebsen firmly
believes in the continuing growth of China
and is investing in businesses that brings the
Chinese consumers a healthier and more
varied and fulfilling lifestyle. Environmentally
sound recycled lube oil represents a
valuable addition to our portfolio of products
and the business is an excellent fit for our
expertise as a leader in China’s industrial
sector for over 100 years. We are delighted
to partner with CleanOil to offer a highly
efficient and environmentally friendly way to
reclaim and reuse spent oils. By establishing
this new business and by developing the
national market for recycled lube oil, we are
furthering our commitment to a greener and
more sustainable China.”
As a socially responsible company,
Jebsen Group works with partners and
employees to support energy saving,
waste reduction and ensure compliance to
environmental laws.
In 2009 Jebsen established a carbon
emissions objective to reduce carbon
intensity (carbon emissions per unit revenue)
by 20 percent by 2013. Despite operating
a growing company, Jebsen reduced its
carbon intensity by 22 percent by 2013.
It has also invested in carbon-offsetting
projects and purchased carbon credits to
now achieve carbon neutrality for a second
consecutive year.
Products produced by Jebsen Group and
its joint-venture companies also contribute
to environmental conservation. For example,
balancer shafts produced by Mitec-Jebsen,
a Jebsen joint venture founded in 2007,
reduce fuel consumption; oil pumps
produced by Jebsen-TCG, which was set
up in 2011, increase fuel efficiency, reduce
carbon emissions and extend engine life;
and fuel pump housings manufactured by
MSR-Jebsen, which was established in 2012,
enhance fuel efficiency. 
KJR to purchase new plant,
equipment following record demand
4 February 2015 | Tier Suppliers
Coventry-based manufacturer of high
specification car interiors for the automotive
industry, K J Ryan (KJR), has announced that
it is to purchase new plant and equipment
to cater for strong demand from clients
such as Bentley and McLaren following a
£1.1 million funding deal from Santander
Corporate & Commercial.
Established in 2007, KJR has become
a leading supplier of specialist parts both
directly to car manufacturers and also
leading original equipment manufacturers
(OEMs) such as Magna and Lear Corporation.
On top of Bentley and McLaren, the firm also
counts marques such as Jaguar Land Rover
and Toyota as key customers.
KJR has enjoyed strong growth over the
past eight years, successfully weathering the
downturn in the automotive sector in 2008,
and is currently experiencing record sales. To
cater for this demand, the funding package
from Santander Corporate & Commercial will
help KJR to purchase specialist new plant
and tooling equipment – it will also provide
additional working capital to support the
firm’s target of increasing annual turnover
by around 50% over the next three to four
years.
Kevin Ryan, Chairman of K J Ryan Ltd,
said: “With the outlook for the automotive
manufacturing sector stronger than ever,
we are excited to be able to significantly
improve our facilities to support our growth
strategy. The funding from Santander has
been invaluable, providing us also with
greater headroom in the day-to-day working
capital cycle as well as enabling us to
better showcase our capabilities to major
manufacturers.”
Michael Durkin, Relationship Director,
Santander Corporate & Commercial, said:
“KJ Ryan is a great local UK success story,
and we are delighted to be able to support
the firm as it looks to grow further. It works
with some of the leading brands and
suppliers in the UK automotive industry and,
given the high quality nature of its products
and its service, it is unsurprising that it is
experiencing heightened demand.” 
Lear issues statement to Marcato
Capital Management
4 February 2015 | Tier Suppliers
Lear, a leading global supplier of automotive
seating and electrical distribution systems,
today issued the following statement in
response to Marcato Capital Management.
Lear’s Board of Directors and Management
team are committed to delivering superior
shareholder value and have a proven
record of delivering significant value to
shareholders:
■■ Since 2011, Lear has returned more than
$2.1 billion to shareholders in the form of
share repurchases and dividends;
www.automotivepurchasing.com
■■ Since 2010, Lear has achieved a total
shareholder return of 203%, which is
approximately double the return for the
S&P 500 over the same time period; and
■■ In 2014, Lear’s total shareholder return of
22% outperformed the S&P 500’s return
of 14%.
Building
sustainable
shareholder
value is a foremost priority for Lear. Lear’s
shareholders have benefitted from the
Company’s successful execution of its
balanced strategy: investing in the business,
pursuing value enhancing acquisitions,
maintaining a strong and flexible balance
sheet and returning capital to shareholders.
This strategy is delivering consistently
improving financial results and driving
superior returns for shareholders. 2014
was another excellent year for Lear as the
Company achieved its 5th consecutive year
of higher sales and adjusted earnings per
share and strong cash flow.
Lear’s Board and Management team are
open to the views of its shareholders and
will review the suggestions submitted by
Marcato this morning. We will continue to
prioritise delivering significant value to our
shareholders and customers. 
International WorkStar now available
with Cummins ISB6.7 engine
3 February 2015 | Tier Suppliers
International Truck announced today the
availability of the International WorkStar
vocational truck powered by the Cummins
ISB6.7 engine.
The WorkStar is the second International
truck model to feature the ISB6.7 as an
engine option, following the International
DuraStar which has been in market with
Cummins ISB6.7 since December 2013.
“Adding the market-accepted Cummins
ISB6.7 to our vocational line-up is a key
part of our strategy to offer our customers
the most comprehensive options of proven
components in the industry,” said Bill
Kozek, Navistar president, Truck and Parts.
“The addition of the Cummins ISB6.7 to
our WorkStar model provides customers
with a winning combination of uptime,
performance, productivity and durability.”
International WorkStar Features
Built on the same battle-tested truck
platform as the International MaxxPro MRAP
(Mine-Resistant Ambush-Protected) armored
vehicle, the WorkStar has the strength and
sophistication to take on the challenges
of any environment. The WorkStar boasts
multiple-frame rail options, a double-sided
galvanized steel cab protected by an
extensive five-step corrosion protection,
and comes standard with the Diamond
Logic electrical system—the most advanced
multiplexing architecture available in
commercial trucks.
The WorkStar features unique advantages
like a hood and radiator package with
available integral front frame extension and
front engine power take-off (FEPTO) without
requiring modifications to the radiator or
horsepower restrictions. The WorkStar
also features one of the roomiest cabs in
the industry and offers both standard and
high-visibility sloped-hood configurations
for enhanced driver comfort and ease of
operation.
The addition of the Cummins ISB
6.7-liter engine now expands the WorkStar
model’s robust powertrain options, which
include Navistar’s proprietary 9.3-liter and
13-liter offerings. WorkStar is also available
with a suite of traditional manual and
automated-manual transmission offerings
from Eaton and fully-automatic offerings
from Allison. The ISB, which is rated up to
325 horsepower and 750 lb.-ft. of torque,
with higher ratings available for fire and
emergency applications, features flexible
horsepower and torque ratings for mediumduty applications.
“When you put it together, the
International WorkStar is the right truck for
the toughest of jobs,” said David Hillman,
general manager, severe service trucks.
“With the WorkStar, customers don’t have to
compromise. They can have it all—efficiency,
comfort, functionality, productivity, and now
the proven Cummins ISB6.7 engine.” 
BorgWarner receives supplier award
from Mercedes-Benz Brazil
3 February 2015 | Tier Suppliers
BorgWarner announced that its Turbo
Systems has received a supplier award from
Mercedes-Benz.
BorgWarner’s Turbo Systems facility in
Itatiba City, Brazil, was presented with the
2014 Mercedes-Benz Brazil Interaction
Award in the category of Innovation
Technology for the successful launch of
various turbochargers for the new MercedesBenz Euro 5 engines in South America.
“At BorgWarner, we are driven to deliver
innovative powertrain solutions that improve
fuel economy, emissions and performance
for a cleaner, more energy-efficient world,”
said Frederic Lissalde, President and General
Manager, BorgWarner Turbo Systems.
“We have been developing and producing
turbochargers for Mercedes-Benz trucks
and buses in South America over the past
40 years. We are very pleased to receive
this prestigious award from Mercedes-Benz
Brazil.” 
Lightning Hybrids receives US patent
for hydraulic brake regeneration
system
3 February 2015 | Tier Suppliers
Lightning
Hybrids,
designer
and
manufacturer
of
hydraulic
brake
regeneration systems for medium- and
heavy-duty fleet vehicles, announced it has
been awarded a full US utility patent for
the fourth generation of its parallel hybrid
system.
“This patent award illustrates not only
our innovation, but also our efforts to find
new opportunities in an area historically
dominated by large companies,” said Tim
Reeser, Lightning Hybrids president and
co-founder. “It separates us from the crowd
of others who have worked on previous
hybrid technologies and clearly establishes
Lightning Hybrids as the international leader
and innovator in the hydraulic hybrid space.”
The patent, specifically for a “hydraulic
regeneration apparatus,” was awarded
January 21. The regeneration apparatus
or hybrid system, which the patent grants
exclusive rights and inventor status to
Lightning Hybrids, uses hydraulic pumps
and accumulators to capture braking energy
and regenerate it for accelerating a vehicle.
Dan Johnson, Lightning Hybrids cofounder and CTO who co-invented the
new patented system with senior controls
engineer, Jonathan Reynolds, said the
new patent built on previous generations
and focused on making the system more
efficient.
“Eliminating a lot of the parts in the system
was a big goal,” Johnson said. “By doing
that, we were able to dramatically increase
the efficiencies of the system. The higher
the efficiency, the more we can decrease
emissions and increase fuel savings.”
Johnson said a primary goal for the new
patent was making the system lighter by
using more aluminum in its construction and
by having fewer parts. “Fewer parts means a
significant cost savings, and a lighter system
www.automotivepurchasing.com
means higher efficiency overall. It means
fleets are able to have a higher payload,
allowing them to effectually do the work
they’re on the road to do in a cleaner, more
efficient way.”
Reaching the fourth generation of
Lightning Hybrids’ parallel hybrid system
was the result of six years of work. Reynolds
said the project was an engineering venture.
“Designing any system from the ground up is
challenging,” he said. “This hydraulic hybrid
system was particularly perplexing because
we had to create so many of the building
blocks. Several parts in our system did not
exist before – at least not in the form we
needed. Lightning Hybrids has faced many
challenges and met them with successful
engineering solutions.”
Reynolds said new manufacturing
processes were instrumental in achieving
Lightning Hybrids’ patent goal. “Advanced
manufacturing technologies helped us
iterate our designs quickly to get to a
finished product,” he said. “We have utilised
3D printing, 3D scanning, CNC machining,
carbon fiber manufacturing, thermal imaging
and in-house PCB etching – all of which have
helped us make some great breakthroughs,
but real progress primarily comes from being
dedicated to innovate.”
Lightning Hybrids’ system provides 50%
to 90% reduction in harmful emissions as
well as fuel efficiency gains by regenerating
braking energy. The Lightning Hybrids
system does not have batteries. Instead,
it safely and efficiently stores energy
mechanically in composite hydraulic
accumulators, which are a fraction of the
cost and weight of batteries.
The company said it has filed for
international patent protection for the
system and expects it to be awarded yet this
year. 
29
Vehicle Launch/Concepts
Export of all-new
Triton pickup truck
General
begins in Thailand
Talking Points
9 February 2015 | Vehicle Launch/Concepts
Mitsubishi Motors Corporation (MMC)
announced that Mitsubishi Motors Thailand
(MMTh) has commenced the export of the
all-new Triton pickup truck - one of MMC’s
top sellers.
A commemoration ceremony was held at
the Laem Chabang Port near MMTh’s Laem
Chabang Plant with government officials
and other related parties along with Tetsuro
Aikawa, MMC President & COO in attendance.
Worldwide versatility
The all-new Triton has been developed
to be the “Ultimate Sport Utility Truck,”
combining comfortable interior space of
a passenger car with the functionality and
reliability of a pickup. The all-new Triton went
on sale in Thailand in November 2014. MMC
plans to roll out the all-new Triton starting in
the Philippines, then sequentially in ASEAN,
Oceania, the Middle East, Europe, Africa,
and Latin America, eventually exporting to
some 150 countries.
MMTh importance as global production
hub
At the ceremony, Aikawa emphasised
the importance of MMTh: “MMTh started
exporting pickup trucks in 1991 and has
exported over 1.6 million units so far. Thanks
to the Thai government’s consistent policies
on fostering the automobile industry here,
we have achieved growth and expansion
with Thailand positioned as our pickup truck
production and export hub. Moving on we
will grow together with the Thai automobile
industry”
Laem Chabang: MMC’s largest producer
The Laem Chabang Plant holds the largest
production capacity among other MMC
manufacturing plants, totaling a cumulative
production of 3.5 million units and exports
of over 2.5 million units, growing steadily as
a global production hub. 
Infiniti gears up for premiere of QX30
Concept in Geneva
5 February 2015 | Vehicle Launch/Concepts
Infiniti will take the covers off the QX30
Concept at the Geneva International Motor
Show next month.
The QX30 Concept is the Infiniti design
vision which will inspire a new premium
30
compact crossover targeted at a new
generation of premium customers.
Set to be revealed at Infiniti’s press
conference, scheduled for 14:30 on 3 March
in Geneva, the QX30 Concept aims to
reignite the premium compact segment with
a distinctive approach to design that looks
beyond the practicality and conformity
expected of the segment.
The potential customers for such a
concept are searching for a product to suit
their ‘urban week and get-away weekend’
lifestyle and the QX30’s compact footprint
matches that. Combining the sleek
lines of a coupe with the rugged looks
and commanding seating position of a
crossover, the QX30 Concept foreshadows
an urban explorer which is equally at home
in the city as it is on the open road. 
2015 Ford Edge Sport steals the
thunder from all other Edge models
9 February 2015 | Vehicle Launch/Concepts
2015 Ford Edge Sport is the most powerful Edge yet, thanks to a 2.7-liter EcoBoost V6
making 315 horsepower and 350 lb.-ft. of torque.
The 2015 Ford Edge Sport has been
officially SAE-certified as the most powerful
Edge ever, with the highest horsepower
and torque ratings yet.
Powered by Ford’s newest EcoBoost
engine – a 2.7-liter V6 – the 2015 Ford
Edge Sport builds on its reputation as the
modern utility vehicle for people who want
to have fun behind the wheel and look
good doing it.
“The 2015 Edge Sport is exactly what
it says it is – a utility vehicle that not only
looks beautiful, but is a spirited performer,”
said Cristina Aquino, Ford Edge Consumer
Marketing Manager. “Ford customer
research showed there was a strong desire
for more in terms of power and content,
and with the redesign of Ford Edge, we
wanted to give customers a true sport
version, which meant bringing the 2.7-liter
EcoBoost V6 along for the ride.”
New Edge Sport boasts real performance
Edge
Sport’s
2.7-liter
EcoBoost
V6 engine delivers a 10% increase in
horsepower over the previous standard
engine, a 3.7-liter V6, and a 25% increase in
torque – for a total of 315 horsepower and
350 lb.-ft. Peak torque output is available
at 2,750 rpm, far lower in the performance
band than the 2014 model, for a better
performance feel. The previous engine
generated peak torque at 4,000 rpm.
With final ratings approved, the frontwheel-drive Edge Sport returns EPAestimated test cycle fuel economy ratings
of 18 mpg city, 27 mpg highway and 21
mpg combined. EPA-estimated ratings
for the all-wheel-drive model are 17
mpg city, 24 mpg highway and 20 mpg
combined. Actual mileage will vary. Even
with improved performance, fuel economy
estimates are either equal to or better than
the 2014 model Edge Sport.
Using the same compacted graphite
iron as Ford’s 6.7-liter Power Stroke, the
cylinder block of the 2.7-liter EcoBoost has
a stiff and compact design that results in
an impressive amount of power and torque
for its size, while enabling refined noise,
vibration and harshness control. A diecast aluminum engine-block ladder frame
and composite oil pan help save weight
www.automotivepurchasing.com
through the use of advanced materials
where they are needed most.
The Edge Sport suspension has been
upgraded with front and rear antiroll bars
that are 15% stiffer than the base model.
Unique rear monotube dampers are larger
in diameter, while coil springs are 10%
stiffer and offer 20% less body roll than
the previous-generation setup. Enhanced
damping gives Edge Sport improved roadholding capability – providing the driver
with more control, sharper steering and
greater confidence.
Edge Sport rides on 20-inch standard
polished aluminum wheels with magnetic
low-gloss
painted
pockets;
21-inch
premium painted tarnished dark low-gloss
aluminum wheels are available, as well as
a summer-only tire option with the 21-inch
wheels.
The vehicle is equipped with Active
Noise
Cancellation
technology
to
manage and enhance the sound of the
2.7-liter EcoBoost engine. The system
uses microphones strategically placed
throughout the cabin to generate opposing
sound waves. These waves are directed
through the audio system to enhance
overall cabin ambience.
Powerful looks set Edge Sport apart</
subhead
The 2015 Edge Sport includes features
that set it apart on the road and define it as
a performance-inspired utility vehicle with
attitude.
The new Edge has a stronger, more
athletic shape with standard LED taillamps
and LED signature lighting. The 2015 Edge
is also available in new colors Electric
Spice, Bronze Fire Metallic and Magnetic.
The interior features leather-trimmed
sport seats with perforated suede inserts,
aluminum brake and accelerator pedal
covers, ambient lighting and metalplated accents throughout. Other interior
appointments include Ford SYNC with
8-inch LCD touch screen in the center
stack, two configurable LCD screens in
the instrument cluster and a media hub
containing two USB ports, an SD card reader
and an auxiliary input jack. A 12-speaker
Sony audio system is standard. 
Vauxhall to unleash new Corsa VXR
in Geneva
Porsche GT family welcomes
a new member
4 February 2015 | Vehicle Launch/Concepts
Porsche’s GT family is proud to announce the addition of an exciting new member: the
Cayman GT4. This is the first Porsche GT sports car based on the Cayman and features
components of the 911 GT3.
5 February 2015 | Vehicle Launch/Concepts
Vauxhall will take the wraps off the new
Corsa VXR, its ultra-powerful small hothatch, at the 2015 Geneva Motor Show in
March.
Benefiting from the significant revisions
in technology, interior/exterior design and
chassis showcased in the recently launched
New Corsa, the VXR is set to raise the bar
for small, fast hatchbacks when it appears in
UK showrooms in May.
Headline performance figures are
0-60mph in 6.5 seconds and a top speed
of 143mph – quicker than the outgoing car,
but more importantly the VXR produces its
245Nm of torque from lower revs (between
1,900rpm and 5,800rpm, compared with
2,250rpm to 5,500rpm for the outgoing
Nürburgring and ClubSport models). This
makes the VXR a potent performer between
50-75mph, which it can dispatch in just 6.6
seconds in fifth gear.
An overboost facility provides an
additional 35Nm of torque, ideal for swift
and safe overtaking. Maximum power from
its 1.6-litre turbocharged engine is 205PS,
while the Corsa VXR achieves 37.7mpg on
the combined cycle with CO2 emissions of
174g/km.
As before, power is delivered to the front
wheels via a second-generation six-speed
transmission with a short, fluid gearchange.
Vauxhall has worked closely with
damper-supplier, Koni, to develop a new
technology, known as Frequency Selective
Damping (FSD) for the new Corsa VXR. FSD
allows damping forces to adapt to the car’s
movements, ensuring that body control is
maintained when the car is driven fast, but
ride quality is optimised at lower speeds.
In addition, the car’s ride height has been
lowered by 10mm all round.
For the first time, Vauxhall is offering a
two-stage switchable electronic stability
programme (ESP) and traction control (TC)
with the Corsa VXR. In Competition Mode
the traction control is inactive, while the
ESP is relaxed to allow less intervention. For
track use, the ESP can be fully disabled.
Revisions have been made to the new
Corsa VXR’s steering, making it more
direct and precise, with improved feedback
through the wheel. Michelin 215/45 R17 tyres
are standard, as are 308mm front brake
discs.
Standard bi-xenon lighting and a choice
of six exterior colours help the new Corsa
VXR stand out in its class. An aggressive new
front-end design features large air intakes
and an aluminium-framed opening below
the headlights. A small scoop is located
below the bonnet and side-sill extensions
enhance the Corsa VXR’s performance
credentials still further. At the rear, a rear
spoiler provides meaningful downforce over
the back axle, and twin Remus exhaust pipes
further distinguish it from regular Corsas.
Six exterior colours – including Flash
Blue, which is unique to the Corsa VXR –
are available for the Corsa VXR. The car’s
cabin has standard Recaro seats, a leather,
flat-bottomed steering wheel, sports pedals,
as well as a VXR gear-lever and instruments.
A heated front windscreen and Intellilink
connectivity for Apple iOS and Android
smartphones are also standard.
Clocking a lap time of 7 minutes and
40 seconds on the North Loop of the
Nurburgring, the Cayman GT4 earns the
same lap time as the 2011 911 GT3 and
positions itself as the new benchmark
atop its market segment. The Cayman GT4
clearly demonstrates Porsche’s dedication
and passion to continue to promote truly
industry-leading two-door sports cars in
the future – sports cars that are developed
at the Motorsport department in Weissach.
The engine, chassis, brakes, and
aerodynamic design of the Cayman GT4
are configured for maximum driving
dynamics while retaining the versatility
and everyday utility that are typical of the
two-seater Porsche coupe. Powered by a
385 hp 3.8-liter flat-six engine derived from
the 911 Carrera S engine, the Cayman GT4
transmits its power solely through a sixspeed manual transmission with dynamic
gearbox mounts. Zero to 60 mph is
accomplished in 4.2 seconds; its top track
speed is 183 mph. The chassis – which
features a 30 mm lower ride height and a
generously sized brake system – consists
almost entirely of components from the 911
GT3.
Ready for the race track: The first Porsche
Cayman with added downforce at both
axles
The exterior of the Cayman GT4
highlights it as a member of the Porsche
GT family and provides a clear distinction
to related mid-engine coupes. Three
pronounced inlet openings at the front
and a large fixed rear wing are part
of an aerodynamic package which is
systematically designed for downforce.
Upon request, the performance capabilities
of Cayman GT4 can be taken even further.
Available options include the Porsche
Ceramic Composite Brake (PCCB) system,
full bucket seats made of carbon fiber
composite, and a custom Sport Chrono
Package featuring a Track Precision app.
The interior of the Cayman GT4 focuses
on maximizing the experience of unfiltered
driving enjoyment for both driver and
passenger. Standard sport seats, which are
upholstered in a combination of leather
and Alcantara, offer excellent lateral
support. The new Cayman GT4 sport
steering wheel guarantees ideal control
and direct steering feedback due to its
compact dimensions.
Technical aspects of this new GT sports
car are based on the 911 GT3. As a midengine sports car and a prime example
of driving dynamics in its class, it follows
the conceptual tradition of such cars as
the 904 GTS, 911 GT1, Carrera GT and 918
Spyder.
GT sports cars engineered by Porsche
embody the most passionate connection
possible between everyday driving and
Porsche’s competition heritage and
highlight the sporty core of the brand:
Intelligent Performance.
The Porsche Cayman GT4 celebrates
its world premiere in early March at the
Geneva International Motor Show. 
Performance Package
For Corsa VXR customers keen to
enhance their car’s dynamics still further,
Vauxhall is offering an optional Performance
Package, which includes certain features
previously seen in the outgoing Nürburgring
and ClubSport models. Highlights include
a Drexler limited-slip differential, larger
330mm-diameter Brembo front brake discs,
18-inch alloy wheels and more focused FSD
damper settings. 
Hyundai gives a sneak peek of the all-new Tuscan
3 February 2015 | Vehicle Launch/Concepts
Hyundai has unveiled its first hints about
the design of the upcoming All-New Tucson,
compact SUV, which will premiere at the
2015 Geneva Motor Show, on March 3.
Commenting on the All-New Tucson,
Peter Schreyer, President and Chief Design
Officer of Hyundai Motor Group, said: “Our
new compact SUV will be a big step forward
for the Hyundai brand globally. The All-New
Tucson has a bold and athletic presence and
a proud stance. Its design is characterised
by flowing surfaces, bold proportions, sharp
lines and – most important – our brand
signature hexagonal grille.”
The strong, sporty SUV appearance is
enhanced by the upright silhouette and sleek
character line. At the front, Hyundai Motor’s
distinctive chrome-framed hexagonal grille
is connected to the headlamp clusters
creating a powerful impression.
With more than one million SUV sales
in Europe since the introduction of the first
Santa Fe in the early 2000s, Hyundai Motor
has established its credibility in the SUV
segment. 
www.automotivepurchasing.com
31
Ferrari 488 GTB: extreme power
3 February 2015 | Vehicle Launch/Concepts
The new V8 debuts at Geneva: track-level
performance and responsiveness for the
road.
Forty years on from the unveiling of its
first ever mid-rear-engined V8 model, the
308 GTB, the Prancing Horse opens a new
chapter in its 8-cylinder history. The Ferrari
488 GTB provides track-level performance
that can be enjoyed to the full even by
non-professional drivers in everyday use.
Its response times, nimbleness and onthe-limit driving guarantee a unique sense
of exhilaration and unparalleled driving
pleasure.
The new berlinetta brilliantly encapsulates
Ferrari’s experience in both F1 and the
WEC, where the 458 GT holds the World
Championship title and has won its category
in the last two editions of the 24 Hours of
Le Mans. The new model also exploits to
the full the know-how gleaned by Ferrari
technicians over the last decade through
the XX programme which makes extreme
track-only cars available to gentleman
test-drivers. The data yielded has made a
significant contribution to the refinement of
the electronic and vehicle control systems
so that drivers can make the most of the
incredible performance of this new car.
The Ferrari 488 GTB’s new 3902 cc V8
turbo is at the top of its class for power output,
torque and response times, making it the new
benchmark for this kind of architecture. The
engine unleashes 670 cv at 8,000 rpm along
with 760 Nm of maximum torque in seventh
gear and a response time to the accelerator of
just 0.8 seconds at 2,000 rpm. These figures
are sufficient to allow the Ferrari 488 GTB to
accelerate from 0-200 km/h in an astonishing
8.3 seconds and, when combined with the
radical innovations introduced on all aspects
of the car’s performance, lap the Fiorano
track in just 1’23”.
The gearbox features Variable Torque
Management which unleashes the engine’s
massive torque smoothly and powerfully
right across the rev range, while specific
gear ratios deliver incredibly progressive
acceleration when the driver floors the
throttle. As is always the case, Ferrari’s
engineers have dedicated great attention to
perfecting the 488 GTB’s sound, creating a
new soundtrack that is full, clear and totally
distinctive, as expected from any Prancing
Horse engine.
The car’s aerodynamics also made a pivotal
contribution to performance: its 1.67 efficiency
figure is a new record for a production
Ferrari, and is the fruit of 50 per cent more
downforce than the previous model and
reduced drag. The greatest challenge was
achieving these two goals simultaneously.
Several innovative elements were specifically
32
developed to do so, not least a double front
spoiler, base bleed side intakes and, at the
rear, active aerodynamics coupled with a
blown spoiler. The aerodynamic underbody,
which incorporates vortex generators, is
highly sophisticated, too.
The Ferrari 488 GTB’s subsystems
and electronic controls make its power
and performance instantly available and
controllable. It is, in fact, the most responsive
production model there is, with razor-sharp
response times comparable to those of a
track car.
The evolved version of Ferrari’s side slip
angle control system (Side Slip Control 2
- SSC2) is more precise and less invasive,
providing greater longitudinal acceleration
out of corners. Aside from integrating with the
car’s F1-Trac and E-Diff, the SSC2 now also
controls the active dampers which renders
the car’s dynamic behaviour during complex
manoeuvres even flatter and more stable.
Designed by the Ferrari Styling Centre, the
new car features very sculptural flanks which
are the key to its character. Its large signature
air intake scallop is a nod to the original
308 GTB and is divided into two sections
by a splitter. The wide front spoiler features
a double profile to improve the thermal
efficiency of the radiators positioned at the
sides. At the centre two pylons are combined
with a deflector which channels air towards
the flat underbody. The broad, low tail is
also dominated by aerodynamic solutions,
including an innovative blown spoiler which
generates downforce without increasing drag.
This works in conjunction with an aggressive
ramp angle for the diffuser which features
active flaps. The greater height required for
the diffuser was achieved by repositioning
the exhaust tailpipes. The circular LED tail
lights have also been redesigned.
In the cabin, the seamless integration of
the new satellite control clusters, angled air
vents and instrument panel heightens the
sense that the cockpit is completely tailored
around the driver. Usability was the key word
in the design, leading to an extremely sporty
ambience that in no way compromises on
comfort. There are plenty of classic Ferrari
styling elements too, such as the clear
separation between the dashboard and
tunnel, the multifunctional steering wheel,
the control switch bridge and wraparound
seats. The graphics and interface of the
infotainment screen have also been
completely redesigned while the design of
the car’s new key takes its inspiration from
the car’s cylinder banks and allows keyless
starts.
The Ferrari 488 GTB will make its world
debut at the International Geneva Motor
Show in March 
Lexus announces Geneva launches
3 February 2015 | Vehicle Launch/Concepts
The 2015 Geneva Motor Show will host
a European introduction of the recent
addition to the Lexus high-performance
F-brand, the new GS F.
World Premiered at this year’s Detroit MS,
the GS F is a refined four-door coupe with the
speed and agility of a premium sports car.
Equipped with a normally-aspirated 5.0l V8
engine, the GS F produces maximum power
of 477PS and maximum torque of 530Nm.
The GS F is the first Lexus to include the new
comprehensive Lexus Safety System +.
World Premiered at 2014 Los Angeles
Motor Show, the LF-C2 concept will also
have its European Premiere at this year’s
Geneva MS. The concept is a design study
in the form of a 2+2 roadster that explores
key styling themes involved in the Lexus
brand’s future, bolder styling direction. The
LF-C2 is a luxury Grand Touring concept
inspired by Lexus’ passion for driving. Its
open-air design derives from a pure sports
coupe idea.
Finally, during the Lexus press conference
on March 3, 2015, a new Lexus concept will
have its World Premiere. 
Nissan introduces the NP300 Navara
to the Philippines
3 February 2015 | Vehicle Launch/Concepts
Nissan announced the launch of the all-new
NP300 Navara in the Philippines.
Following the global launch in Thailand
last July, the Philippines is the second
market to add the all-new Navara to its sales
roster.
“With the all-new NP300 Navara, we will
raise the bar in the pickup segment here,” said
Toru Hasegawa, Corporate Vice President of
Nissan and President of Nissan Motor Asia
Pacific at the launch event. “I believe Navara
is matchless in the market, with its smart
solutions for Filipino drivers. Striking and
tough-looking on the outside and offering
premium comfort and convenience on the
inside, the Navara delivers a ride as smooth
as that of a sedan, whether on city streets or
challenging terrains.”
The 12th generation Nissan Navara has
a bold design, tougher body and smarter
features representing 80 years of building
reliable pickups for 180 markets worldwide.
Among the distinctive design features of
the all-new NP300 Navara are first-in-class
www.automotivepurchasing.com
boomerang-shaped LED daytime running
headlamps, the “V-motion” motif that flows
from the grille into the hood for a dynamic
character line, doors defined by convex and
concave surfaces and a high beltline. Inside,
the NP300 Navara offers comfort with a
premium interior and convenience with
numerous innovative features.
Navara’s 7-speed automatic sport
transmission delivers fuel efficiency at
low speeds and smooth acceleration and
shifting. The all-new NP300 Navara also
delivers top level safety technology systems
including Vehicle Dynamic Control, Active
Brake Limited Slip, Hill Start Assist, Hill
Descent Control and Traction Control.
The launch of this much anticipated
pickup follows the successful introductions
of the mid-size Altima sedan, compact
Sylphy sedan and the X-Trail SUV in the
Philippines in 2014.
Bookings for the all-new Nissan NP300
Navara are now available, and delivery starts
at the end of February. 
Nuovo Doblò Cargo:
“the better way to work”
Renault reveals Kadjar - Captur’s big
brother
2 February 2015 | Vehicle Launch/Concepts
Presented today to the international press, the Nuovo Doblò Cargo, fourth generation
of the Fiat Professional model, now more functional, with more performance and more
value.
These are the guidelines that allowed
Fiat Professional to design a vehicle at the
top of its class in terms of performance,
functional characteristics, load capacity,
productivity, fuel economy and low running
costs.
On the heels of the world début at the
2014 Hanover Motor Show, the Nuovo
Doblò Cargo is now available to the wider
public with a completely updated interior
and exterior design reflecting classic carlike specifications. To get an idea, take a
look at the ultra-modern distinctive front
end, the bigger front grille and the many
new components (bumpers, bonnet,
headlights and tail-light clusters).
A comprehensive update also for
the passenger compartment, with new
dashboard, fabrics, steering wheel,
instrument panel graphics and door
panels. Likewise, the functionality-driven
configuration is visible in a series of
specific ergonomic solutions, from the
multifunction front bench seat for driver
and two passengers, the quieter interior,
the new infotainment and navigation
sytems and the gateway device. Also, as in
the previous generation the Nuovo Doblò
Cargo’s load capacity and volume are both
at the top of the category.
The second aim in developing the new
Fiat Professional vehicle was performance,
as evident from the improved torque
response during city driving (up to 40%). In
addition, the Nuovo Doblò Cargo ensures
the best handling and driving comfort in
its class, thanks especially to the Bi-link
independent rear suspension (exclusive
contents for the segment). The range
also extends to include the new “EcoJet”
version - equipped with the 90 hp Multijet II
1.3 or 105 hp Multijet II 1.6 - which combines
reduced running costs and low fuel
consumption (improvement of up to 15%).
The major functional and performance
evolution combined with development
initiatives aimed at reducing the total
cost of ownership (including all costs
from purchase to sale) make the Nuovo
Doblò Cargo reliable, distinctive and more
valuable for Fiat Professional customers.
The entire package is sweetened by the
comprehensive range of services and
accessories created in collaboration
with Mopar, in addition to the affordable
financing solutions developed by FCA
Bank.
Depending on the market the range
is composed of 4 bodies (Cargo, Combi,
WorkUp and Load platform), 2 roof heights
and 2 wheelbases. Power is provided by a
choice of six turbodiesel engines - MultiJet
II 1.3 (75 and 90 hp), Multijet II 1.6 (100 and
105 hp), 90 hp Multijet II 1.6 with robotised
gearbox and 135 hp Multijet 2.0 - plus three
petrol engines: 95 hp 1.4, 120 hp TurboJet
1.4 and 120 hp TurboJet 1.4 bi-fuel (petrol/
natural gas). The offering is the broadest in
the segment, with versions and solutions
from vans to special vehicles and versions
converted for specific applications.
Scion of a winning model (Doblò has
been chosen by more than 1.4 million
customers since 2000), the Nuovo Doblò
Cargo aims to consolidate its leadership in
this market sector, which accounts for 25%
of all light commercial vehicles in Europe.
Sold in more than 80 countries
worldwide, including North America in
the form of the Promaster City in the RAM
range, the Nuovo Doblò Cargo becomes a
“global” vehicle - just like the Nuovo Ducato
- that’s destined to bolster FCA’s growth in
the light commercial vehicles sector.
Like the previous generations, the Nuovo
Doblò Cargo is manufactured in Turkey in
the Tofaş plant in Bursa, one of the best
automotive industrial sites in the world, as
confirmed by the award of a World Class
Manufacturing gold medal. 
2 February 2015 | Vehicle Launch/Concepts
Buoyed by the success of Captur, Renault
is continuing its offensive in the world of
crossovers with the launch of Kadjar, the
brand’s first C-segment crossover.
In a fast-growing and extremely popular
area of the market, Kadjar will boost Renault’s
ambitions on the international stage, as it
is due to go on sale initially in Europe and
in many African and Mediterranean Basin
countries, followed by China.
This sibling to Captur shakes up
established thinking by bringing an
innovative and attractive proposition to
the crossover market. The Renault Kadjar
stands out through its fluid, athletic exterior
styling. Meanwhile, its interior is both sporty
and refined, courtesy of the quality of the
materials employed and the attention that
has gone into its finish.
Available with either four- or two-wheeldrive transmission, the Renault Kadjar
encourages adventure while at the same
time delivering easy manoeuvrability in town
thanks to its compact footprint (4.45 metres
long x 1.84 metres wide).
Furnished with high-quality interior
appointments and modern equipment, the
Renault Kadjar offers advanced connectivity
with the R-Link 2® multimedia system, along
with a relaxed experience behind the wheel,
courtesy of the latest driving aids.
The Renault Kadjar also benefits from a
range of particularly efficient engines which
position it at the forefront of the segment
in terms of low fuel consumption and CO2
emissions.
The Renault Kadjar will be unveiled to
the public at the 85th Geneva Motor Show
which opens to the public on March 5, 2015.
It will go on sale in the summer in both
Europe and a high number of countries in
Africa and the Mediterranean Basin region
and is scheduled to appear in RHD form in
the UK in the Autumn. 
For more information about
advertising opportunities, please
contact:
Deryck Morris
+44 (0) 208 882 1330
or email:
dm@automotivepurchasing.com
www.automotivepurchasing.com
33
Teamsters authorise strike action at
Canadian Pacific
Supply Chain
WWL launches first Post Panamax
Telematics/Connected
Car
Vessel - Thermopylae
Innovation
People
9 February 2015 | Supply Chain
Measuring in at 36.5 m wide and 199.99 m
long, the Thermopylae provides the right
capacity and fulfils WWL’s frontrunner
commitment to the environment.
Wallenius Wilhelmsen Logistics welcomes
into operation the M/V Thermopylae, the
first of its new generation of Post Panamax
HERO (High Efficiency RoRo) PCTC vessels.
The Thermopylae features five liftable car
decks, allowing for more configurations for
cargo of various sizes and hence increased
capacity for cars, trucks, equipment and
breakbulk. The vessels more shallow draft
allows her to call ports with shallower
depths, increasing her scope of service
geographically.
Taking steps towards the Orcelle vision
of zero-emission shipping, the Thermopylae
design includes emission reducing features
such as a streamlined bow, new Promas
rudder and an engine configured to allow
the vessel to operate more efficiently in
a wider range of speeds and drafts. In
addition, the vessel is fitted with an Exhaust
Gas Cleaning System that reduces sulphur
emissions to below 0.1% in compliance with
ECA regulations. This system also removes
70% of particulate matter, significantly
reducing NOx emissions.
According to Fridtjof Naess, Chief
Operating Officer Ocean for WWL: “These
Post Panamax vessels are designed to
meet customer demands for capacity as
well quality and efficiency in both handling
and operation. They also illustrate our quest
to continuously reduce our environmental
impact, and feature optimized hull design
and a number of energy saving solutions to
ensure efficient operation.”
The Thermopylae’s maiden voyage
will be from Asia to Europe, starting in the
port of Hitachinaka, Japan and finishing in
Bremerhaven, Germany. The vessel has
been built at the Hyundai Samho Heavy
Industries shipyard in Mokpo, South Korea.
She is the first of in total eight HERO post
panamax vessels that will commence service
for WWL in the years 2015-2017. 
Environmental
Finance & Markets
Vehicle Launch/Concepts
General
9 February 2015 | Supply Chain
Teamsters Rail members vote 93% in favour
of strike action if necessary to achieve a
negotiated contract.
The Teamsters Canada Rail Conference
(TCRC) members employed as Locomotive
Engineers, Conductors, Trainmen and
Yardmen throughout Canada has provided
their National Bargaining Committee with
a resounding demonstration of support.
The membership have voted 93% in favour
of taking strike action in order to obtain
a negotiated settlement with Canadian
Pacific Railway. The Teamsters Union and
CP are within the 21 day cooling off period
as provided for within the Canada Labour
Code. A strike or lockout is possible as early
as February 15.
TCRC President Douglas Finnson is
particularly proud of the TCRC membership
and the tremendous show of solidarity and
support for the bargaining committee. “The
bargaining committee is strengthened by
the determination of the membership to fight
for their rights to maintain a safe working
environment, and to obtain acceptable
improvements in their working lives.”
“CP has adopted a style of labour relations
based on confrontation and establishing
a culture of fear among the employees,
including management”, explains TCRC
President Finnson. In 2013 CIRB Decision
679 the Canada Industrial Relations Board
(CIRB) found CP guilty of violating the
Canada Labour Code stating the following;
“ By it’s actions, the employer has made it
virtually impossible for the labour-relations
system to work as it should.” In subsequent
months CP has been found guilty by the
CIRB of multiple charges of unfair labour
practices against the Unionised workers at
CP. The most recent finding of guilt against
CP was January 9, 2015.
“CP has provoked confrontation with their
Unionised employees as often as they can,
and their style of labour relations has resulted
in the most massive contract rejection in
the history of the railway industry”, explains
TCRC President Finnson. The Soo Line is
an American subsidiary of CP, where 97 %
of the American based Conductors recently
rejected a contract proposal from CP
negotiators. Unifor who represents the CP
Shop Crafts, and other mechanical workers
voted 97% in favour of strike action last
month, and now the Teamsters members
similarly provide their bargaining committee
with an unprecedented 93% level of support.
The Teamsters Canada Rail Conference
is scheduled to bargain with CP in Montreal
with the Assistance of Mediators from
Federal Mediation and Conciliation Services,
February 10 to 14. 
International Auto Processing handles 5 millionth vehicle
5 February 2015 | Supply Chain
Milestone reached after 28 years of service
at Port of Brunswick.
A silver Hyundai Genesis rolling down
the ramp of the Wallenius Wilhelmsen
vessel Isolde became the 5 millionth vehicle
handled by International Auto Processing at
the Port of Brunswick.
“On behalf of the GPA, I would like to
congratulate IAP, a long-time partner at
the Port of Brunswick,” said Georgia Ports
Authority Executive Director Curtis Foltz.
“This important milestone exemplifies IAP’s
reliability and the trust automakers have in
their service.”
International Auto Processing began its
Colonel’s Island operation in 1986, with its
first shipment of 567 Yugos (all in red).
“Over the years, more and more carmakers
have seen the value in using Colonel’s
Island as a gateway to the Southeastern
U.S. market, helping IAP and the Port of
Brunswick to achieve phenomenal growth
over three decades as a ro/ro facility,”
said Robert Miller, president and CEO of
International Auto Processing.
Having grown to employ 250 full-time
workers and up to 100 in flexible staffing,
IAP now serves Audi, Bentley, General
Motors, Honda, Hyundai, Kia, MercedesBenz, Toyota and Volkswagen. In addition
to receiving and storing new vehicles, IAP
acts as an extension of the factory floor. The
company performs quality checks, installs
over 100 various accessories, and washes
and prepares the vehicles for transportation
to dealers.
“In 2014, we handled more than 450,000
vehicles,” Miller said. “Most of the import
vehicles handled by IAP are delivered to
the six-state Southeast area, although some
customers serve dealerships as far west as
Texas and as far north as the mid-Atlantic
states.”
Talking Points
34
Imports arrive from Europe, Asia and
Mexico. Exports account for about a third of
IAP’s volume.
“These are vehicles manufactured in the
U.S. and then exported to Europe, Asia,
Central and South America,” he said, adding
the vehicle handling process has evolved
from its start three decades ago.
The port now ranks as the busiest in the
nation for the import of new vehicles and the
No. 2 U.S. port in total import-export trade. By
the end of 2014, GPA terminals in Brunswick
and Savannah surpassed 7 million vehicles
moved since 1986.
Other changes at the Port of Brunswick
include additional ship berths, and the new,
higher Sydney Lanier Bridge spanning the
Brunswick River, which cleared the way for
today’s larger roll-on/roll-off vessels.
Since the inception of the Brunswick
autoport, IAP has been joined by three
other auto processors: AMPORTS, Atlantic
www.automotivepurchasing.com
Vehicle Processors, and Mercedes-Benz
USA. In FY2014, four processors served
20 automotive manufacturers, moving
674,327 vehicles over Colonel’s Island - an
8.3 percent (51,625-unit) improvement over
fiscal year 2013. Including Port of Savannah
Ro/Ro, Georgia deepwater ports moved
700,702 units in FY2014. 
Bringing together America’s Best
The Automotive Supply Chain Awards recognise excellence
and innovation in the North American Supply Chain industry
with entries coming from companies throughout the United
States in categories such as Third Party Logistics, Shipping,
Road Transport, Rail, Terminal and Ports Operators, Aftermarket
Parts, IT Innovation and Vehicle Processing Centres.
Open exclusively to companies operating within the United
States, each category will have a panel of judges which will
be composed of experienced, senior supply chain industry
experts who will assess entries relevant to their specialist
knowledge.
Nominations are now open, so don’t delay in nominating your company, clients and
colleagues for them to receive the recognition they deserve.
The Categories
Third Party Logistics Company
Logistics Quality
Shipping Company
Most Supportive OEM
Road Transport Company
Purchasing Executive
Rail Company
The Leaders Awards - Gold
Terminals and Ports Operator
The Leaders Awards - Silver
Aftermarket Parts Logistics
Logistician
IT Innovation
Vehicle Processing Centre
Environmental Awareness
Outstanding Achievement
Exclusive Sponsor
JACK COOPER
22 April 2015
The Plaza Hotel | New York
Nominations now open
www.automotivesupplychain.org/northamerica
www.automotivepurchasing.com
35
Union Pacific BoD elect Lance Fritz
Union Pacific announces 10%
President and Chief Executive Officer dividend increase for first quarter 2015
and a $4.3 billion capital plan for 2015
6 February 2015 | Supply Chain
Union Pacific’s Board of Directors elected
Lance M. Fritz President and Chief Executive
Officer, effective immediately.
He also was elected to the company’s
board of directors. Fritz had been President
and Chief Operating Officer since February
6, 2014.
Fritz, 52, succeeds John J. (Jack)
Koraleski, who was named Executive
Chairman.
“Lance has the right combination of
leadership skills, experience and expertise
required to lead one of America’s largest and
most successful companies,” said Steven
Rogel, Union Pacific’s Lead Independent
Director. “The board regularly reviews and
updates its robust management succession
plan, and we are confident Union Pacific
will continue to deliver industry-leading
customer service and strong shareholder
returns under Lance’s guidance.”
“I am humbled and privileged to have
the opportunity to lead Union Pacific,” Fritz
said. “Our experienced leadership team
is unparalleled and will continue to play a
key role in shaping Union Pacific’s strategy.
They join me in sharing all of our employees’
passion for our mission to serve customers,
shareholders and communities.”
Fritz was executive vice president –
Operations from 2010-2014, and previously
served as Vice President – Labor Relations.
Prior to that, he was Regional Vice President
- Southern Region after serving as Regional
Vice President – Northern Region. He began
his career with Union Pacific in Marketing
and Sales as Vice President and General
Manager - Energy.
Before joining Union Pacific, Fritz worked
for Fiskars, Cooper Industries, and General
Electric. He serves on a number of industry
boards and committees, and is Chairman
of the United Way of the Midlands Board of
Directors.
Koraleski, 64, was appointed President
and CEO in March 2012. An Omaha native,
he was elected to the Board of Directors in
July 2012 and as Chairman of the Board in
March 2014. He joined the railroad in 1972.
“Jack’s
leadership
helped
guide
Union Pacific to unprecedented financial
performance with 12 consecutive quarters of
record earnings results,” Rogel said. “More
importantly, Jack steered Union Pacific
through an unexpected and challenging
leadership transition period. We are
incredibly grateful for his energy, efforts and
dedication.” 
New CEVA Logistics warehouse in
Gdynia, Poland
6 February 2015 | Supply Chain
CEVA Logistics, one of the world’s leading
supply chain management companies, has
opened a new, multi-user warehouse next
to the sea port of Gdynia in northern Poland.
During the last few years, northern Poland
has undergone substantial development of
its sea ports, with significant investments in
port infrastructure. Improvements at Gdynia
have included enhanced road and rail
access to the hinterland and central- and
eastern Europe, and the construction of a
new quay, as elements in a programme to
develop and accommodate LCL, FCL and
breakbulk traffic.
The strategic location of the site, on the
Baltic coast, will enable CEVA to support
the strengthening and streamlining of
customers’ supply chains via Gdynia and
other Baltic ports to destinations worldwide.
CEVA is particularly targeting freight
36
management
and
contract
logistics
customers from the industrial, automotive
and technology sectors. CEVA’s services
at the Gdynia station will include storage,
ocean-, surface- and multimodal freight
management of exports and imports,
customs brokerage, container consolidation
and container de-stuffing.
Says Piotr Zborowski, CEVA’s Executive
Vice President, Central Europe: “Encouraged
by the success of our operations at CEVA’s
multi-customer facility in Bielsko-Biała,
southern Poland, we have invested in this
new facility to bring similar service levels to
customers in the north.
“This is an important step to support our
goal to be the most professional logistics
company in Poland, providing the highest
possible standards for our customers.” 
6 February 2015 | Supply Chain
Union Pacific announced that its Board
of Directors voted today to increase the
quarterly dividend on the company’s
common shares by 10% to 55 cents per
share.
The increased dividend is payable March
30, 2015, to shareholders of record February
27, 2015.
The Board also approved the Company’s
2015 capital program of approximately $4.3
billion, up about $200 million versus 2014,
driven primarily by equipment acquisitions
and infrastructure investments. Spending
on Positive Train Control is also expected
to increase to $450 million, versus $385
million in 2014.
“As we generate strong cash flow,
we are returning more cash to our
shareholders while also making significant
capital investments that add value for our
customers,” said Rob Knight, Union Pacific
Chief Financial Officer. “We invest today for
the opportunity to drive further returns for
our shareholders in the future.”
Shareholders should note that the
payment date of March 30, 2015, at the
end of the first quarter, reflects a change
in the Company’s prior practice of making
dividend payments at the beginning of the
subsequent quarter. This new timing better
aligns the cash payment of the dividend with
the financial results of the quarter for which
it was declared.
Union Pacific has paid dividends on its
common stock for 116 consecutive years. 
Opel wins renowned
‘2015 VDA Logistics Award’
6 February 2015 | Supply Chain
Opel has once again been recognised for
its innovative drive. At the Third Forum
Automotive Logistics in Leipzig, jurychairman Professor Dr. Wolfgang Stölzle
presented Michael Scholl, Director Supply
Chain at Opel with the ‘2015 VDA Logistics
Award.
It is the eighth time that the German
Association of the Automotive Industry (VDA)
has presented the award to a company for its
intelligent logistics system that can serve as
a model for other players in the automotive
industry.
“The system assists us to meet customer
requirements on schedule while staying
flexible. It also allows us to optimise the
value chain and the production program. We
can react quickly and flexibly to changing
conditions while maintaining complete
transparency,” said Michael Scholl, Director
Supply Chain at Opel, at the award ceremony
in Leipzig.
Vehicle orders and material supply are the
two central areas of work for logistics experts
in the automotive industry. Opel succeeded
in creating a close network between
these two areas both organisationally
and procedurally. The most important
feature of the new system is that incoming
vehicle orders for the production plants
are controlled simultaneously in real-time
www.automotivepurchasing.com
under consideration of material availability,
especially the material pipeline of overseas
suppliers. Thus, order scheduling is no
longer sequential but instead integrated.
This also enables Opel to react quicker to
changing conditions.
“This innovative solution is further proof
for our ‘change your mind´ approach at Opel
and our willingness to change the corporate
culture.
We
changed
organizational
structures and, thanks to a cross-divisional
team, introduced a system that allows
outstanding flexibility – for the benefit of our
customers,” said Katherine Worthen, Vice
President, Purchasing and Supply Chain,
Opel Group GmbH.
The new system offers countless
advantages such as transparency, flexibility,
low material stocks and reduction of special
material shipment to name but a few.
Elsewhere, the customer also benefits from
it because vehicle delivery dates can be
maintained with even higher accuracy.
The system was developed by a crossdivisional Opel team, consisting of experts
from logistics, materials management, order
management, and IT in cooperation with IT
service provider Flexis AG from Stuttgart. It
enables a future period preview of 40 weeks
and considers roughly 45,000 part numbers
for 20 Opel models made in seven European
production plants. 
FTA: London Safer Lorry Scheme
needs more work
6 February 2015 | Supply Chain
The Freight Transport Association (FTA) has
responded to the Transport for London (TfL)
announcement today that their Safer Lorry
Scheme, which will require sideguards
and additional mirrors on almost all HGVs
operating in the capital, will go live on 1
September 2015.
In its assessment of the final detail
of the Scheme - FTA has stated that
compliance costs to industry have been
minimised by TfL’s sensible approach to its
implementation, but still considers that this
has not necessarily been the best way of
improving cyclist safety – and that could
possibly be better spent on increased
enforcement against those not complying
with safety requirements.
FTA’s Head of Policy for London Natalie
Chapman commented: “FTA is pleased to
see that the necessary exemptions and
concessions for the vehicles for which this
equipment is either not possible or not legal
have been included within the requirements
of the London Safer Lorry Scheme. However,
in principle we believe that this kind of
blunt regulatory tool is not the best way
to improve cyclist safety. We still think that
the money and effort spent on this scheme
would have been better spent on increased
enforcement against the small proportion
of lorries that don’t comply with existing
regulations.”
The Safer Lorry Scheme will operate 24
hours a day, seven days a week and says
that HGVs without safety equipment stated
within it will be banned from all roads in
Greater London from the beginning of
September. The Scheme will require all
vehicles of more than 3.5 tonnes to be fitted
with sideguards, along with Class V and
Class VI mirrors giving the driver a better
view of cyclists and pedestrians around their
vehicle.
FTA now advises all operators to ensure
that any lorry that may need to access Great
London in future has sideguards and Class
V and VI mirrors fitted before 1 September
unless it is subject to one of the remaining
exemptions or concessions.
The Safer Lorry Scheme will be enforced
by the police, the Driver and Vehicle
Standards Agency and the joint TfL-funded
Industrial HGV Taskforce. The maximum fine
for each breach of the ban will be £1000. The
operator will also be referred for investigation
to the relevant Traffic Commissioner, who is
responsible for the licensing and regulation
of HGV operators. 
Norbert Dentressangle secures multimillion pounds renewal with JCB
5 February 2015 | Supply Chain
Norbert Dentressangle has been reappointed in a three-year, multi-million
pounds contract renewal with JCB to
manage the delivery of aftermarket parts to
a network of more than 100 dealer depots.
JCB is the world’s third largest
manufacturer of construction equipment,
producing over 300 types of machines. The
company employs over 12,000 people on
four continents and sells products in 150
countries.
JCB has dealers throughout the UK that
handle maintenance and servicing, as well as
supplying parts, for the iconic yellow diggers
and its range of heavy plant machinery.
These parts are delivered via Norbert
Dentressangle’s Night Distribution service,
providing a quick turnaround on repairs and
servicing, which is vital to minimise onsite
downtime if machinery is out of operation.
Operating five nights a week, the transport
specialist makes evening collections of
stock parts and VOR (vehicle off-road) orders
from JCB’s World Parts Centre (WPC) in
Uttoxeter, Staffordshire. Using its dedicated
fleet, Norbert Dentressangle then trunks
aftersales product to its depot network
across the UK. Orders are packed into pallet
boxes by JCB and integrated into the shareduser network for through the night delivery
to ensure dealers receive orders before they
open at 7am the next day.
As part of Norbert Dentressangle’s
commitment to deliver further distribution
improvements, the company has invested in
an aerodynamic supercube trailer with Euro
6 vehicle to manage increased outbound
volumes from the WPC on a key transport
route.
Using Norbert Dentressangle’s bespoke
order tracking web-portal, JCB management
has real time access to delivery data and
can easily access all proof of delivery (POD)
information.
Chris Buckler – Operations Director,
JCB Service, said: “With the upswing in the
construction sector, Norbert Dentressangle
has been able to use its flexible solution to
effectively meet the increased demand from
service dealers across the UK.” 
Ryder introduces first heavy duty truck
specification designed for women
drivers
5 February 2015 | Supply Chain
Ryder System, a leader in commercial fleet
management and supply chain solutions,
announced that it will offer customers a
female-friendly vehicle package for lease –
the first of its kind in the industry.
With the help of various OEMs and
Women in Trucking Association (WIT), a
non-profit organization established to
encourage the employment of women in the
trucking industry, Ryder is making available
a custom vehicle design, including 15 unique
specifications, to better meet the needs of
female drivers. These same ergonomic
specifications will also provide a benefit for
many male drivers in the industry.
The ergonomic vehicles include features
such as adjusted height and placement
of cab grab handles, adjustable seatbelt
shoulder straps, improved placement of
dash cluster gauges, and better access to
oil and coolant checks and fill ports. Upon
customer request, and depending upon
the OEM model of vehicle, Ryder can also
include the following options:
■■ ergonomically designed seats and
adjustable armrest
■■ hood lift/closure assistance mechanism
■■ automated transmissions
■■ 5th Wheel configurations with lower pull
pressures to open the locking mechanism
■■ automated 5th wheel locking mechanisms
■■ automatic landing gear operators for
trailers
■■ a cab security system that offers personal
protection while a driver is in his/her
sleeper berth
“Ryder is one of the largest purchasers
of heavy duty trucks in North America and
has a great deal of visibility into the needs
of the professional truck driver,” said Steve
Schmotzer, Region Fleet Manager, PACCAR.
“There really is no one in a more suitable
position to provide feedback on this issue
to manufacturers than Ryder. We are proud
to support this initiative, which is critical to
addressing a pressing industry need.”
Women may be the key to unlocking the
driver shortage, which is currently estimated
to be between 20,000 and 25,000 drivers,
and expected to reach 239,000 by 2022.
Only five percent of professional truck
drivers in the U.S. are women. Ryder is
committed to identifying truck design
gaps and influencing improvements in
future vehicle designs that make driving a
more attractive career option for women.
For example, the Company is currently
encouraging OEMs to make adjustable foot
pedal height a standard feature in future
truck models. This is one item identified by
female truck drivers as an important need
according to a recent survey conducted by
Women In Trucking Association.
“This custom truck package is not only
more ergonomically friendly to women,
but will also benefit other drivers with the
same types of needs,” said Scott Perry,
Vice President of Supply Management and
Global Fuel Products, Ryder. “Our intent
is to not only help attract more women to
the industry, but also to make the vehicles
easier and safer for a broader range of
drivers to operate. As an industry leader,
we feel a responsibility to leverage our
influence and find creative ways to deal with
the professional truck driver shortage.”
“Addressing driver comfort and truck cab
design to accommodate the typically smaller
stature of women is one of the issues where
Women In Trucking Association is prompting
changes,” said Ellen Voie, President and
CEO, Women In Trucking. “We are so pleased
to see Ryder’s efforts in moving these
ergonomic challenges into the forefront of
the manufacturers’ design changes,” Voie
added. 
Find us
online...
www.facebook.com/autopurchasing
www.twitter.com/AutoPurchasing
www.automotivepurchasing.com
37
New Orbis plant in Silao strengthens
presence in Latin America
5 February 2015 | Supply Chain
ORBIS has announced the opening of its
newest manufacturing facility, in Silao,
Guanajuato, Mexico.
A Grand Opening took place on February
4, attended by the local government, ORBIS
partners and employees, as well as local
media. Silao is 390 km/250 miles northwest
of Mexico City.
ORBIS is North America’s leader in
reusable packaging and is a subsidiary of
family-owned Menasha Corporation, which
was founded in 1849.
The 265,000 sq. foot plant employs
approximately 140 people and enables
ORBIS to be more responsive with a growing
customer base in Latin America. The new
plant is also the first ORBIS facility to offer
injection and structural foam molding, as
well as dunnage fabrication, all under one
roof.
ORBIS
will
manufacture
plastic
containers, pallets, BulkPak containers
and its ORBIShield dunnage product line
offerings at this plant. In addition, ORBIS
has introduced a brand new line of fabric
dunnage which provides a unique protective
solution for the most challenging packaging
requirements – specifically in the automotive
supply chain.
In anticipation of the opening, ORBIS
partnered with Instituto Estatal de
Capacitación (IECA), a technical training
school in Silao, Guanajuato, Mexico to
create a hands-on training program that
provided new plant employees with general
manufacturing and technical knowledge.
“I am very pleased to make this investment
in the future of ORBIS Corporation in Mexico,”
said Bill Ash, President, ORBIS Corporation.
“The new facility features best-in-class
design for efficient product flow, productivity
and environmental sustainability. With our
dedicated team of employees, ORBIS is
well-positioned to serve our customers with
local manufacturing and design expertise,
resources and capabilities, while improving
our service reach. This strong local presence
will help us best serve our leading customers
in the automotive, food and beverage
sectors throughout Latin America.”
ORBIS has approximately 40 sales,
service and manufacturing locations in
North America, Europe and Asia and 1,900
employees worldwide. In addition to this
plant in Silao, ORBIS operates four service
centers throughout Mexico. 
New Head of Operations at TVS
2 February 2015 | Supply Chain
TVS Supply Chain Solutions continues to
grow and invest in the best people which
has led to the appointment of a new Head
of Operations.
Darren Watson joins TVS with vast
experience in the aftermarket supply chain,
and will oversee all internal stock and
transport processes as well as ensuring all
client service level agreements and KPI’s
are achieved. In addition, Darren will be
responsible for the implementation of a
continuous improvement programme across
all TVS sites to ensure they consistently
maintain the highest levels of service quality.
Darren’s background is predominately
in high volume aftermarket emissions
manufacturing, where he managed product
availability, but his experience also extends
to effective leadership of productivity,
quality, health and safety, MRO spend,
material control, and purchasing across a
number of facilities.
Martin Warington, Business Development
Director at TVS Supply Chain Solutions,
said: “At TVS, it is vitally important that we
constantly look at ways to help drive the
brand forward by offering our customers the
highest levels of industry expertise, thought
leadership and innovation.
“Darren brings with him a wealth of
experience and knowledge and will be a
huge asset in helping to differentiate our
business from the competition. I wish him all
the best in what I’m sure will be a promising
career at TVS Supply Chain Solutions.” 
Hollysys announced a significant
high-speed rail signaling contract win
valued at US$ 95 million
TNT’s Outlook strategy in full
implementation mode
3 February 2015 | Supply Chain
In the course of 2014, TNT appointed a new
management team and launched its new
Outlook strategy with the aim of bringing
the company back to sustainable value
creation.
In September 2014, TNT updated the
market that it will take three to five years
to realise the full benefits of the Outlook
38
investment and restructuring programs. The
Outlook strategy is in full implementation
mode.
In the process of completing the
assessment of its fourth quarter 2014
results, to be published on February 17,
TNT reassessed its tax assets and liabilities.
As a consequence, TNT’s bottom line net
income in the fourth quarter will include nonrecurring tax expense items totaling €77
million, which include a €67 million non-cash
valuation allowance on deferred tax assets.
Furthermore, TNT is changing its accounting
treatment for the PIS/COFINS taxes in Brazil.
This reclassification will result in €17 million
lower reported operating income for the full
year 2014 of which €5 million in Q4 2014,
but with no impact on net income.
TNT will give a full update on its Outlook
strategy on 18 February during the Capital
Markets Day. The company will provide
financial guidance for the next three to five
years when it announces its fourth quarter
results. 
2 February 2015 | Supply Chain
Hollysys, a leading provider of automation
and control technologies and applications
in China, announced that it signed a
significant contract to provide Automatic
Train Protection (ATP) equipment and
system.
The contract is to provide Automatic Train
Protection (ATP) equipment and system
to 40 sets of high-speed trains in 200250km/h and 80 sets of high-speed trains
in 300-350km/h respectively, valued at
approximately RMB 580 million or USD $95
million.
The delivery of the products is expected
to be finished by June 2015. Besides this
contract award, Hollysys’ management
also expects another supplementary ATP
contract to be signed in the near term.
The on-board signaling equipment ATP
(Automatic Train Protection) works together
www.automotivepurchasing.com
with the ground-based signaling equipment
TCC (Train Control Center), as the critical
control elements in the high-speed railway
signaling systems to ensure the safety
and reliability of the high-speed railway
operation.
Hollysys’ management commented: “We
feel excited about the significant high-speed
rail contract win, which demonstrates our
solid technology capability and key market
position. In the future, Hollysys will continue
to work closely with the China Railway
Corporation and national railway authorities,
leveraging its strong R&D capability, effective
management and high-quality products and
service, make more contribution to China’s
railway construction and explore the vast
rail and subway opportunities both in
China and abroad, and create value for our
shareholders.” 
CN says unionised maintenance-ofCN announces plan to buy back
way employees in Canada ratify new shares through a private agreement
four-year labour agreement
2 February 2015 | Supply Chain
CN announced today that members of the
United Steelworkers (USW) union Local
2004 have ratified a four-year labour
agreement covering approximately 3,000
maintenance-of-way
employees
who
inspect, maintain and repair CN’s track,
bridges and structures in Canada.
The new agreement was reached prior to
the expiry of the previous agreement and is
retroactive to Jan. 1, 2015.
Jim Vena, CN executive vice-president
and chief operating officer, said: “We
commend the USW leaders and membership
for reaching and ratifying an amicable and
mutually beneficial collective agreement
with the company before its expiration.
The agreement recognizes the value of
negotiating an early deal, and it delivers
solid wage and benefits improvements
to union members, along with work-rule
changes that will increase the efficiency of
CN and its employees in maintaining and
improving the company’s rail infrastructure
critical to Canada.” 
2 February 2015 | Supply Chain
CN announced that it intends to purchase
for cancellation up to 1.2 million of its
common shares pursuant to a private
agreement between CN and an arm’slength third-party seller.
The purchase will form part of CN’s
repurchase program for up to 28 million
shares announced on Oct. 21, 2014.
Such purchase will be made pursuant
and subject to the terms of an issuer bid
exemption order issued by the Autorité des
marchés financiers (Order) and will take
place before March 31, 2015.
In accordance with the Order, CN’s
purchases under such private agreements
will not exceed, in the aggregate, one-third
of the maximum number of shares that it
may purchase under its share repurchase
program, or 9,333,333 common shares.
The price that CN will pay for any
common shares purchased by it under
such agreements will be negotiated by CN
and the third-party seller and will be at a
discount to the prevailing market price of
CN’s common shares on the Toronto Stock
Exchange at the time of the purchase.
Information regarding each purchase,
including the number of common shares
purchased and aggregate purchase
price, will be available on the System for
Electronic Document Analysis and Retrieval
(SEDAR) following the completion of any
such purchase. 
Norfolk Southern and
Brotherhood of Locomotive
Engineers and Trainmen reach new
five-year collective
bargaining agreement
Bringing together America’s Best
The Automotive Supply Chain Awards recognise excellence
and innovation in the North American Supply Chain industry
with entries coming from companies throughout the United
States in categories such as Third Party Logistics, Shipping,
Road Transport, Rail, Terminal and Ports Operators, Aftermarket
Parts, IT Innovation and Vehicle Processing Centres.
Open exclusively to companies operating within the United
States, each category will have a panel of judges which will
be composed of experienced, senior supply chain industry
experts who will assess entries relevant to their specialist
knowledge.
Nominations are now open, so don’t delay in nominating your company, clients and
colleagues for them to receive the recognition they deserve.
The Categories
2 February 2015 | Supply Chain
Norfolk Southern and the Brotherhood
of Locomotive Engineers and Trainmen
reached a new collective bargaining
agreement that continues to link engineer
compensation to corporate performance
through 2019.
The
agreement,
which
covers
approximately 4,600 locomotive engineers,
provides engineers with an annual
bonus opportunity based on corporate
performance and for the first time includes
individual incentive opportunities based on
personal performance. The agreement also
includes changes to improve engineer work
scheduling, which will help ensure that NS
has a more stable and available workforce
while providing employees with more
predictable schedules.
“The new agreement builds on our long
history of collaborative problem-solving
with the BLET, and it will have a positive
impact on employees, our customers and
the long-term success of the company,”
said Norfolk Southern Labor Relations Vice
President Scott Weaver. “We thank the BLET
for its continued partnership throughout this
process.” 
Third Party Logistics Company
Logistics Quality
Shipping Company
Most Supportive OEM
Road Transport Company
Purchasing Executive
Rail Company
The Leaders Awards - Gold
Terminals and Ports Operator
The Leaders Awards - Silver
Aftermarket Parts Logistics
Logistician
IT Innovation
Vehicle Processing Centre
Environmental Awareness
Outstanding Achievement
Exclusive Sponsor
JACK COOPER
22 April 2015
The Plaza Hotel | New York
Nominations now open
www.automotivesupplychain.org/northamerica
www.automotivepurchasing.com
39
Škoda ups production post 2014
success
General
Proton and PT ACL to collaborate on
the ‘Indonesian
National Car’
Talking Points
9 February 2015 | General
Proton Holdings Berhad announced the
signing of a Memorandum of Understanding
(MoU) with PT. Adiperkasa Citra Lestari
to establish cooperation ties between
Malaysia and Indonesia in relation to
the development and manufacturing of
Indonesia National Car.
Signing on behalf of Proton was Chief
Executive Officer, Dato’ Abdul Harith
Abdullah and witnessed by the Malaysian
Ambassador to the Republic of Indonesia,
H.E. Dato’ Seri Zahrain Mohamed Hashim
whilst signing on behalf of PT ACL was
Chief Executive Officer, Abdullah Mahmud
Hendropriyono and witnessed by Indonesian
Ambassador to Malaysia, H.E. Herman
Prayitno. The historic event was held in the
presence of the Prime Minister of Malaysia,
Yang Amat Berhormat Dato’ Sri Mohd Najib
Tun Abdul Razak; Indonesian President,
His Excellency Joko Widodo; and PROTON
Chairman, Yang Amat Berbahagia Tun Dr
Mahathir Mohamad at the Proton Centre of
Excellence in Subang Jaya, today.
The MoU is aimed at furthering business
opportunities between both companies of the
two neighbouring countries in areas relating
to the development and manufacturing of
the proposed vehicle project.
Under the MoU, a feasibility study will
be conducted to explore specific areas of
cooperation between the two companies,
including the potential development and
manufacturing of the project in the Republic
of Indonesia.
“The collaboration will be good as both
nations specifically work together to develop
products for the larger market. Furthermore,
Proton, which has the facilities, capabilities
and technology know-how in design,
development and manufacturing of cars, is
the only company in the ASEAN region with
a Research & Development (R&D) facility
in-house. No other countries in this region
have their own national car project other
than providing manufacturing and assembly
services. Therefore, we are pleased with
the opportunities this MoU presents as
this collaboration allows both nations and
companies to provide knowledge-transfer
and mutual sharing of expertise in the area of
automotive whilst strengthening the bilateral
ties among the countries,” said Dato’ Harith.
40
“The MoU serves as a positive start to
both nations. As the region’s major player
in the automotive market, Proton welcomes
such cooperation with PT ACL for the
benefit of all. Closer ties between both
companies will surely facilitate international
and regional investments, spurring more
automotive markets activity and economic
development,” he added.
Meanwhile, Abdullah Mahmud said the
MoU was a major development for the
Indonesian automotive industry where
the collaboration will offer a wider job
opportunity to its people.
“We are very happy to be working with
Proton and Malaysia in this project. With
the expertise that Proton has and our
similar culture and environment, we are
confident that PROTON can help to train and
develop a pool of specialist workforce for
our automotive industry. This collaboration
when materialised will not only spur the
Indonesian automotive industry further but
also expand knowledge and capabilities of
our people,” he said.
With the collaboration potential, both
companies will come out with a feasibility
study in the overall areas of the automotive
operations and business, including the
commercial and technical aspects of the
project. Apart from that, the Parties would
also evaluate and work together to develop
plans on localisation activities, purchasing
activities, engineering and design activities,
logistic services, market studies and other
relevant processes relating to the project.
Subject to the completion of a successful
feasibility study, Proton and PT ACL will sign
a definitive joint venture agreement for the
proposed project.
“This is another important and significant
milestone for Proton as we embark on yet
another strategic partnership for a greater
vision. Proton is ever willing to assist
Indonesia and any country that wants to
grow together with the company, with the
blessings of the Malaysian Government. To
this end, we certainly look forward towards
detailing out our plans and the feasibility
study on this collaboration to achieve what
we hope will provide synergy to the future
plans of the Parties,” added Dato’ Harith. 
3 February 2015 | General
Škoda’s new models are doing exceptionally
well. In 2014 the Czech carmaker sold more
than one million vehicles for the first time in
a single year.
Accordingly, Škoda production is now
shifting up a gear: At the main plant in
Mladá Boleslav, Škoda has recently upped
the manufacturing capacities for the new
Škoda Fabia and Fabia Combi (estate), as
well as the Škoda Rapid Spaceback. Up to
1200 of these models now run off the MBII
production line every day in three shifts.
Previously, a maximum of 800 vehicles
could be produced on a daily basis in two
shifts. Škoda has created an additional 800
new jobs to staff the third shift.
“The young Škoda model range is
​
doing exceptionally well on the market,”
says Škoda Michael Oeljeklaus, Škoda
Production Director. “Our production is at
full throttle – especially at our main plant
in Mladá Boleslav. Over the coming years,
Škoda plans to increase sales to at least 1.5
million per year. To this end, we will continue
to invest in our domestic and international
production capacities.”
The current expansion in production
capacities at the MBII line in Mladá Boleslav
were necessary due to the growing success
of the Fabia and Rapid Spaceback. Škoda
had begun expanding and technologically
upgrading key areas of the Fabia production
halls in Mladá Boleslav as early as summer
2014. This was when the new, ultra-modern
facility was finished, enabling the new
assistance systems to be configured. The
paint shop was also extended and partially
redeveloped.
Škoda operates two production lines
in Mladá Boleslav: The Fabia, Fabia
Combi (estate) and Rapid Spaceback are
manufactured on the MBII line; the Octavia,
Octavia Combi (estate) and Rapid saloon run
off the other line. The production capacity
currently stands at 1200 cars per day.
By expanding their production capacities
at the main plant in Mladá Boleslav, the Czech
manufacturer is once again demonstrating
their importance as an employer and major
industrial investor in the Czech Republic.
Since 1991, Škoda has invested more
than 280 billion Czech Crowns into the
manufacturing processes and factories at
the locations of Mladá Boleslav, Kvasiny and
Vrchlabí. In 2014, the respective investments
totalled 362 million euros. Last autumn,
Škoda and the Volkswagen Group invested
45 million euros alone in the newly opened
Škoda Engine Centre – one of the largest
industrial investments of recent years in the
Czech Republic.
The Fabia’s market launch was extremely
successful. The small car is setting standards
in its segment, and has won a number of
international awards; in the Czech Republic,
the new Škoda Fabia was voted ‘Car of the
year 2015’. In the UK, the model received the
renowned title ‘What Car? Car of the Year
2015’. The Škoda Rapid Spaceback has also
taken the consumer market by storm. In 2014
sales of the Rapid Spaceback increased nine
fold over the previous year, with a total of
72,000 sold around the world (2013: 8000).
The brand’s first compact hatchback model
offers fresh-dynamic designs, lots of room,
a host of ‘Simply Clever’ ideas, the highest
safety, low fuel consumption and is great
value for money. 
For more information about advertising opportunities, please
contact: Deryck Morris +44 (0) 208 882 1330
www.automotivepurchasing.com
or email: dm@automotivepurchasing.com
Telematics/Connected Car
Connected car transforming the talent
landscape in the automotive industry
SanDisk offers storage solutions for
nex-gen cars
Innovation
3 February 2015 | Telematics/Connected Car
SanDisk, a global leader in flash storage
solutions, today introduced a new suite
of robust, automotive grade NAND flash
solutions designed for next-generation
‘connected
cars’
and
automotive
infotainment systems.
SanDisk Automotive storage solutions
are optimised to bring reliable, highperformance
storage
to a wide range
of
in-vehicle
applications,
including 3D
mapping and
advanced
OEM
vehicles on the road worldwide will have
some form of wireless network connection
by 2020, amounting to more than 250
million connected vehicles in service”.
“Flash is enabling dramatic innovation
in the auto industry and is expected to
transform the car into one of the most
connected devices we own,” said Drew
Henry, Senior Vice President and General
Manager, Mobile and Connected Solutions,
SanDisk. “Our vertical integration and
deep flash expertise uniquely enables us
to architect our automotive grade storage
solutions to provide the responsiveness
needed to support new and emerging
connected applications, as well as offer
the reliability and trusted performance
that’s absolutely critical for the automotive
market.”
The SanDisk Automotive portfolio of
storage solutions includes an automotive
grade SanDisk SD card and iNAND
embedded flash drive (EFD), which are
available to automotive manufacturers
in capacities up to 64GB2. Leveraging
SanDisk’s innovative proprietary flash
storage architectures, these solutions bring
superior experiences to data-intensive
automotive infotainment and connected car
applications, enabling maps to load fast,
improving touch-screen responsiveness,
and reducing potential interference from
driving on uneven or rough roadways. 
People
Tier Suppliers
Environmental
Supply Chain
augmented
reality in navigation
systems, entertainment
systems, intuitive driver assist
technology, data event recorders, and
more. By providing the responsiveness
and capacity of SanDisk flash storage
technology, SanDisk Automotive solutions
offer the potential for car manufacturers
to continue to push the boundaries of
connected car application experience.
Today’s vehicles are rapidly becoming
more technologically sophisticated, with
many featuring advanced connected
applications that were once only possible
on a smartphone. A recent Gartner Research
report forecasted that “about one in five
Finance & Markets
Telematics/Connected Car
Vehicle Launch/Concepts
Innovation
General
People
Talking Points
Environmental
Toyota wants its
Finance &back
Markets- all of
batteries
them
6 February 2015 | Environmental
With 91% of its hybrid batteries being
successfully collected through its own retail
network, Toyota Motor Europe (TME) is now
extending collection to independent end-oflife vehicle (ELV) treatment operators
Hybrid batteries can generally outlast
the vehicle life. These are therefore usually
only recovered at the end of the vehicle
life or in case of an accident. TME has
built up years of experience running an
internal collection process with Toyota and
Lexus retailers/repairers through a reverse
logistics mechanism. Toyota and Lexus
dealers receive a new hybrid battery in
return for giving back the old one, leading to
an average 91% collection rate.
Now TME is stepping up efforts to
Vehicle Launch/Concepts
General
2 February 2015 | Telematics/Connected Car
Spencer Stuart, the global executive search
consulting firm, has released a new study
examining the impact of the Internet of
Things (IoT) on automotive companies on
their leadership and talent needs.
“Connectivity Leadership – How the auto
industry can secure the right blend of talent
to succeed in the era of the connected
car” reports that one-third of automotive
companies underestimate the extent of
the challenge they are facing and are
unprepared when it comes to answering
three critical questions:
1. What critical capabilities do senior
leaders need to possess in order to
address the connectivity challenge?
2. Where can the talent be found?
3. What are the motivations and
expectations of connectivity experts who
are auto industry outsiders and how can
companies get the best out of them?
Connected car executives belong to a
different demographic from traditional auto
executives; they also have different career
backgrounds and expectations over such
things as working culture and compensation
patterns. There is a finite pool of talent
available and learning how to integrate these
people successfully is critically important for
auto companies.
“At a time of market disruption,
characterised by new entrants and changing
business models, many traditional auto
companies need to radically overhaul
their talent development and succession
planning activities or they will lose
competitive advantage,” says Barnaby
Noble, a consultant in Spencer Stuart’s
Automotive Practice based in Paris. “This
means adapting to the needs of a new type
of automotive executive likely to be more
comfortable in Silicon Valley than in Detroit.
“Connectivity is a real game changer and
talent is scarce,”
Spencer Stuart has examined the career
paths of more than 500 top executives from
the automotive and connectivity sectors
and has identified the six critical areas in
which leaders and their teams must have
strong capabilities. These are: Infrastructure;
data analytics; business model literacy;
innovation management; change & alliance
management; engineering.
“OEMs and suppliers need leaders who
can identify potential business models and
understand how to monetise connectivity
technology,” says Ralf Landmann, a
consultant in Spencer Stuart’s Automotive
Practice based in Frankfurt. “Better and
deeper cooperation is needed between
the automotive, IT, telecommunications and
consumer electronics industries. In particular,
companies in the consumer electronics and
automotive industries must connect their
different cultures and processes better
together to enable such collaboration. 
drastically increase the volumes of
collected used hybrid batteries. It set itself
the challenging target of aiming to collect
100% of the batteries, coming from both its
own network and from any authorised ELV
treatment operators across the whole of
Europe.
That is why the company announces
today the extension, until March 31, 2018, of
the current battery recycling agreements:
Since 1 July 2011 France-based Société
Nouvelle d’Affinage des Métaux (SNAM) has
been taking back and recycling nickel-metal
hydride (NiMh) batteries in Europe (installed
in the Prius, Auris Hybrid, Auris Hybrid
Touring Sports, Yaris Hybrid and all Lexus
hybrids)
Since 20 August 2012 Belgium-based
Umicore N.V. has been taking back and
recycling Lithium-ion (Li-ion) batteries in
Europe (installed in Toyota’s Prius+ and Prius
Plug-in)
Steve Hope, General Manager TME
Environment Affairs, says “When our
customers buy a hybrid, they already
know that they are in for outstanding fuel
efficiency, a stress free driving experience
and a reliable car.” He continues “This is yet
another reason for a hybrid purchase. We
ensure customers that their car excels in
environmental performance during its entire
lifecycle, giving customers another good
reason to fall in love with hybrid.”
“Today used hybrid batteries are still
mainly destined for recycling”, adds Steve
Hope. “However, TME has started to research
the different options for the remanufacturing
of NiMh batteries.” Solutions include giving
those batteries a second life as vehicleto-vehicle or vehicle-to-stationary energy
source.
Since 2000, around 850,000 Toyota
and Lexus full hybrid vehicles have been
sold in Europe. A cornerstone in Toyota’s
environmental approach is the protection
of natural resources, making sustainable
recycling of high voltage batteries a key
priority. 
www.automotivepurchasing.com
41
Tier Suppliers
PSA Peugeot Citroën leads Europe in
reducing CO2 emissions in 2014
Supply Chain
5 February 2015 | Environmental
Since 2008, the Group has gradually
lowered its vehicle emissions by about 30
grams.
PSA Peugeot Citroën recaptured its first
place standing in reducing emissions at end
2014 in Europe, with an average of 110.3
grams of CO2/kilometre, compared with an
average of 123.7 grams for the European
market.
The new record illustrates PSA Peugeot
Citroën’s commitment to finding practical
solutions to environmental problems. More
than 50% of its R&D budget is devoted to
developing technologies aimed at improving
the fuel and environmental performance of
its vehicles.
PSA Peugeot Citroën’s top ranking is
primarily the result of its engine downsizing
strategy and the introduction of new
PureTech 3-cylinder petrol engines, as well
as the introduction of new-generation, fuelefficient BlueHDi diesel engines. In 2014,
nearly 30% of vehicles sold by the Group
emitted less than 100 grams of CO2.
Paired with these highly efficient petrol
and diesel engines, many Group models are
low-carbon leaders in their category. Due
to the fact that they represent a significant
proportion of European sales, they contribute
to an overall reduction in emissions.
The following models are examples of
low-carbon leader vehicles:
Citroën C4 Cactus, 1.6-litre BlueHDi, 100
hp, 82 grams of CO2 per kilometre
Citroën DS 3, 1.6-litre BlueHDi, 100 hp, 79
grams of CO2 per kilometre
Peugeot 308, PureTech 1.2-litre, 130 hp,
107 grams of CO2 per kilometre. This petrol
version also set a new fuel economy record
of 2.85 litres per 100 kilometres, covering
1,810 kilometres on a 51-litre tank of fuel.
The recent Peugeot 308 and Citroën
C4 Picasso models (built on the new
EMP2 platform) and the Citroën C4 Cactus
(launched in 2014) weigh significantly less
than their predecessors, by 140 kilograms
and 200 kilograms, respectively, which is a
key factor in reducing emissions.
“The outstanding reduction in CO2
emissions is the fruit of PSA Peugeot
Citroën’s advanced petrol and diesel
engine technologies but also of its ongoing
research to make lighter, more aerodynamic
cars,” said Gilles Le Borgne, Executive Vice
President, Research and Development, PSA
Peugeot Citroën. “The Group continues to
invest heavily in research and innovation,
particularly in the field of plug-in hybrid
technologies and new-generation electric
vehicles”. 
January rise sees 2015 new UK car
registrations off to strong start
Telematics/Connected Car
Innovation
People
Environmental
Finance & Markets
Auto industry cautiously optimistic for 2015
5 February 2015 | Finance & Markets
According to figures released by the
Society of Motor Manufacturers and Traders
(SMMT), UK has witnessed a positive start to
the year for new car market as registrations
grew 6.7% in January to 164,856 units – the
strongest January since 2007.
The figures released clearly demonstrate
that market growth is on a steady rise, as
January marked the 35th consecutive month
of rises.
Growth in company car registrations was
particularly strong, up 18.1% on January 2014,
while 4,598 alternatively-fuelled vehicles
registered in January, up 60.8% on last
year’s figure of 2,859.
Mike Hawes, SMMT Chief Executive, said:
“These figures mark an encouraging start
to the year after a very strong 2014, with
a strikingly robust company car market as
businesses take advantage of the attractive
finance offers currently available.
“January saw increased uptake of both
petrol and diesel cars, while demand for
alternatively-fuelled vehicles continued its
surge with registrations rising by 60.8%.
Registrations of plug-in vehicles were
particularly strong as consumers responded
to a greater choice of makes and models
delivering lower running costs.
“Last year’s 9.3% rise in the overall market
was fuelled by stronger than expected
economic confidence and, for 2015, we
expect to see some levelling off throughout
the year: demand is back to pre-recession
levels following record-breaking growth.” 
Imported car figures rise steadily in
South Korea
Vehicle Launch/Concepts
ACEA expects growth to continue in 2015,
but at a considerably slower pace, with a
year-on-year forecast in the region of 2%.
In terms of units, this would mean edging
closer to the 13 million units mark.
ACEA also released the provisional 2014
sales figures for all types of Electrically
Chargeable Vehicles (ECVs). Last year 75,331
ECVs were registered in the EU. Although
this is up 37% on the 2013 figure of 55,142, it
still represents just 0.6% of the total market.
ACEA Secretary General Erik Jonnaert
commented: “ACEA’s members will continue
to invest in alternative powertrains, including
electric, hybrid, fuel-cell and natural gaspowered vehicles. This needs to be
supported by the expansion of the charging
infrastructure, as well as a more consistent
EU-wide approach to customer incentives.”
ACEA is also taking the opportunity of
its Annual Reception to re-iterate its three
policy recommendations:
■■ To drive innovation;
■■ To foster growth through international
trade; and
■■ To build a supportive regulatory
framework.
“These are the three keys to building
upon the fresh growth in our automobile
market, and to supporting the political
agenda for jobs, growth and investment,”
stated Mr Ghosn. 
General
Talking Points
5 February 2015 | Finance & Markets
On the occasion of its Annual Reception
in Brussels, the European Automobile
Manufacturers’ Association (ACEA) set out
its forecast for 2015 and released last year’s
registration figures for electric vehicles on
January 4.
Last year, new passenger car registrations
were up 5.7% on the previous year, reaching
12.6 million units. “This is significant because
it was the EU’s first positive annual result
since the financial crisis began in 2007, with
December marking the 16th consecutive
month of growth,” said ACEA President,
Carlos Ghosn. “However, our optimism
about this early sign of recovery must be
tempered with caution, given the economic
uncertainties still facing many countries.”
42
5 February 2015 | Finance & Markets
South Korea’s imported car sales figures
have hit an all-time monthly high in January
as a result of steadily increasing demand
for European and Japanese vehicles in the
country.
According to figures released by the
Korea Automobile Importers and Distributors
Association (KAIDA), approximately 19,930
cars were registered in the country in
January 2015, as opposed to the 14,849 cars
registered at the same period a year earlier.
This marks a 16.4% increase from the
same time last year
In fact, January’s foreign branded vehicle
sales figures have outpaced the July 2014
figures, when a total of 18,112 foreign vehicles
were registered.
www.automotivepurchasing.com
German automobile brands such as
Mercedes-Benz and Audi led the rise in
demand for European vehicles.
KAIDA’s figures went on to demonstrate
the rising popularity of European auto
brands in South Korea, with European cars
accounted for 81.7% of the sales, slightly
down from the previous year’s 82.7%.
Closely following European brands are
their Japanese counterparts with a market
share of 11.1%, up from the previous year’s
9.8%.
German carmakers dominated the topselling charts with Mercedes-Benz ranking
first by selling 4,367 vehicles in January,
followed by Audi with 3,550 units, while
BMW slipped to number three by selling
3,008 units in January 2015. 