Billionaire Peugeot dynasty takes hit from scandal-ridden Orpea

                PARIS: The billionaire Peugeot family’s investment arm suffered a one-two punch last year from the collapse of scandal-ridden elderly-care operator Orpea SA and a deep slump in its auto holdings.

Peugeot Invest, the listed firm controlled by the multigenerational French clan and headed by Robert Peugeot, saw the gross value of its assets tumble 16% to €5.9 billion (RM28bil) in 2022, according to results published last week.

Return on investments dropped 10%.

The company is 80% owned by Etablissements Peugeot Freres, the family holding overseeing a fortune centered around the eponymous car manufacturer that two years ago merged with Fiat Chrysler.

The clan emerged with a 7% stake in the combined group, Stellantis NV, one of the industry’s largest and most profitable automakers with a market value of €50 billion.

Italy’s billionaire Agnelli heirs own 14% of it.
 Peugeot.
The value of Peugeot Invest’s auto holdings, which also include a stake in supplier Forvia, fell by 23% to €2.3 billion. The sector struggled last year with higher energy and transport costs as well as shortages in semiconductors.

Peugeot Invest also has a 5% stake in Orpea, the beleaguered nursing-home operator embroiled in one of France’s biggest corporate-governance scandals.

Its market value crumpled last year following the publication of a book claiming it put profits before patient welfare and pointing to financial misconduct.

Among the recent changes in its portfolio, the family became part of a trio of the nation’s wealthiest dynasties investing in Rothschild & Co. to help take the French bank private. Peugeot Invest could acquire as much as 5.1% and take a seat on the supervisory board.

"We see this opportunity as a longterm partnership between different European families and the Rothschild families,” Peugeot Invest Chief Executive Officer Bertrand Finet said on a call with analysts Thursday.

"Our view is to be a long-term shareholder in a family-controlled company. It’s at the heart of our investment strategy.”

Peugeot Invest has holdings in more than 60 listed and unlisted companies as well as a portfolio of private equity and real estate funds. It made more disposals than acquisitions last year, including offloading a stake in asset-management firm Tikehau Capital Advisors. Finet downplayed the possibility that some of its unlisted holdings could drop in value.

"We aren’t that worried, but the market is pretty unstable at the moment,” he said.

"So far, we haven’t seen any alarming signals.”

The Peugeots trace their industrial roots to 1810, when an ancestor converted a windmill into a steel workshop.

Its first auto dates back to 1889. Family members are still actively involved in the business and make up about half of the Peugeot Invest board.


CEO of startup  QuantumScape awarded ‘staggering’ Elon Musk-like pay package

                DETROIT: Shareholders of QuantumScape Corp., the solid-state battery startup that went public through a blank-check deal last year, approved a multibillion-dollar pay package for its top executive that one proxy adviser called “staggering” in size.

Under the agreement, chief executive officer Jagdeep Singh could receive stock options potentially valued at as much as US$2.3 billion (RM9.7bil), if the company meets various milestones, according to estimates by proxy advisory firm Glass Lewis.

On a webcast of QuantumScape’s annual shareholder meeting last Wednesday, the package passed in a preliminary vote, and the company said a final tally would be available later.

“The disclosed dollar value cost of the grant is staggering,” Glass Lewis, which had urged stockholders to reject the package, wrote in a recent report.

Institutional Shareholder Services, another advisory firm, also opposed it.

Large pay packages are becoming increasingly common among fast-growing startups, particularly after the success of Tesla Inc. unleashed a wave of cash in the electric vehicle market.

Such pacts echo the compensation agreement that helped make Tesla CEO Elon Musk the world’s richest person, said Dayna Harris, a partner at executive compensation firm Farient Advisors.

At least 15 corporate leaders received awards valued at US$100 million or more last year, a threefold increase from when Musk received his in 2018.

“We strongly believe in setting challenging, hard-to-achieve goals, and then focusing efforts to make them happen,” QuantumScape had said in a letter to shareholders defending the package.

“This is why we based this new award on stretch goals and why we gave our key executives the ability to share in the upside in a way that is commensurate with the difficulty of achieving them.”

QuantumScape, backed by Volkswagen AG and Bill Gates’s venture fund, rocketed to a valuation of almost US$50 billion late last year on the promise of its next-generation technology, which could dramatically speed EV adoption by providing automakers with a safer, cheaper alternative to lithium-ion batteries.


Yabba, dabba, doo! Johor Sultan gifted 'Flintstones' car

                PETALING JAYA: Johor's Sultan Ibrahim Ibni Almarhum Sultan Iskandar proved that one is never too old for toys that relive childhood memories after he was gifted a replica of a car straight out of the classic animated series The Flintsones on Monday (Jan 15).

Inspired by Hanna-Barbera's popular 1960s cartoon, the iconic “foot mobile” driven by the series' main character Fred Flintstone, was a gift from Pahang Crown Prince Tengku Abdullah Sultan Ahmad Shah to the Johor ruler.

Sultan Ibrahim posted photos of the open-top car on his Facebook page.

The car comes complete with a wood-like finish on the body and even “stone” wheel coverings.

However, unlike in the cartoon, this version of Fred Flintstone's family car comes with an engine so the driver and passengers will not have to rely on their feet to propel the “prehistoric” vehicle forward.

The Flintstones is Sultan Ibrahim's favourite cartoon, and Fred Flintstone is his favourite character, according to the palace.

It was presented to His Royal Highness by the Pahang Crown Prince's official representative, Datuk Manjit Abdullah, at Istana Pasir Pelangi in Johor Baru.


Early buyers of Tesla's Model 3 get two choices: colour and wheel size

                SAN FRANCISCO: Buyers of Tesla Inc's upcoming Model 3 car will only get two choices in configuration, a policy that will let the company quickly ramp up production of its mass-market vehicle, chief executive Elon Musk told investors on Tuesday.

"You just need to decide what colour you want and what size wheels, at least for the initial production," Musk told shareholders at an annual meeting in Silicon Valley.

Hundreds of thousands of potential buyers put down refundable deposits on the Model 3. Buyers will be able to configure vehicles next month, Musk said. More choice will become available, but he did not say when.

By comparison, the Model S sedan has choices of battery size, an optional sunroof, various interiors and several upgrades including sound systems and limited self-driving.

Speculation has been rampant over what specifications owners would be able to choose for the upcoming Model 3, which will be priced at about US$35,000 (RM149,000).

Musk said the Model 3 will first be offered only with two-wheel drive. All-wheel drive likely will come early next year.


Ford puts off compact car plans for emerging markets

                NEW DELHI/DETROIT: Ford has shelved plans to produce a new compact car family designed mainly for emerging markets like India and China, industry sources said, reflecting disappointing sales of mainstream models in the world's fastest growing car markets.

India and China were expected to be the main manufacturing hubs for the new B500 range, slated to begin production in 2018 and to include a premium sedan, hatchback and sport utility vehicle (SUV), said two sources with direct knowledge of Ford's plans.

The automaker had also planned to build its new models in Brazil, Russia and Thailand, one of the sources said.

Ford's decision, communicated to its suppliers in July, follows a similar move by General Motors to postpone the launch in India of a new US$5 billion family of compact vehicles.

Ford is now planning to redesign the EcoSport, Figo and Figo Aspire in India in 2020-2021, according to two separate USsources familiar with Ford's plans.

Its more ambitious B500 programme, though, is on ice because of muted demand for some small and mid-sized hatchbacks and sedans in India and China, where SUVs and "crossovers" combining the hatchback and SUV have proved increasingly popular.

The cost of upgrading plants to produce the new cars would also be prohibitively high, the first sources said.

All of the sources declined to be named as they have not been cleared to discuss the plans publicly. Ford declined to comment on the development.

"We are constantly evaluating opportunities to better meet the needs of consumers and do not comment on speculation about future product programmes," a Ford spokesman said in a statement.

That said, Ford has invested over US$2 billion in India and plans to spend more to set up a global engineering centre in the southern city of Chennai that will help tweak products for the local market and more swiftly adapt to changing consumer trends.

The carmaker is also ramping up exports, including to Europe, to maximise usage of its two plants in India.

"India is a key market for us in Asia Pacific," said the spokesman, adding that the carmaker is committed to introducing new products and technologies in the South Asian nation.

But instead of the bigger plan for the key markets of India and China, Ford will focus on updating existing models and develop and build more SUVs and crossovers, moving away from sedans and hatchbacks, the US sources said. That would allow the carmaker to boost profit margins.

"The global shift to crossovers makes competing in small cars a tough proposition for GM and Ford," said Sam Fiorani, vice president of global vehicle forecasting at US-based AutoForecast Solutions.

"It makes more sense for them to refresh older products now, harness lower development costs in China in the mid-term, and move toward small crossovers over the long haul."

Chinese buyers have flocked to SUVs, as they grow wealthier and are often restricted to one vehicle in major cities, at the expense of contracting sedan sales.

SUV sales rose 52 percent last year, although a glut of new model launches in the segment is already leading to discounts and lower margins.

Growing competition in the small SUV segment from local Chinese carmakers is also putting more pressure on pricing.

The retreat by Ford and GM is a setback for India's "Make in India" push to become a global manufacturing powerhouse, including in the auto sector.

Retooling the assembly line to build the B500 vehicles at Ford's plant in Gujarat, Prime Minister Narendra Modi's home state, would have meant an investment of more than US$100 million and created manufacturing jobs as it cranked out more cars.

Ford and GM have struggled to crack emerging markets in Asia, where competition from Japanese, South Korean and now Chinese automakers is fierce.

GM shut production in Indonesia owing to its modest market share, and Ford also plans to close its operations in the Southeast Asian nation, as well as in Japan and Australia.

Dearborn-based Ford is now looking at each country in the region in terms of long-term profitability opportunities, said another source familiar with Ford's plans, while noting India remains a tough place to make money.

India's passenger car market, where sales rose 7 percent last fiscal year to 2.8 million units, is dominated by Maruti Suzuki and Hyundai Motor Co with their extensive line-up of cars and vast dealer networks.

Maruti and Hyundai control two-thirds of the market whereas Ford's share in India, set to be the world's third-largest car market by 2020, has stagnated at about 3 percent.

Until Ford finalises an alternative plan, the shift in strategy could leave gaps in its car portfolio in India, that today sits at the two ends of the price and size spectrum.

In the meantime, Ford is increasing its focus on driving down costs by sourcing more parts locally and using more common features across models to achieve economies of scale.


Ferrari GTC4Lusso: This is the FF replacement!

MARANELLO: Supercar maker Ferrari is unveiling a new four-seat, four-wheel-drive tourer on March 1.

The GTC4Lusso is the first production Ferrari to boast both all-wheel drive and four-wheel steering. And that extra control will be needed as the new car, a replacement for the existing FF, has been given a significant power boost.

The 6.2-litre V12 now delivers 680bhp and can race from standstill to 100kph in 3.4 seconds.

Inside-the-dashboard and in-car entertainment systems have been given an extra injection of quality while the exterior has been given aerodynamic improvements.

Ferrari claims that the new car is a Ferrari that can be driven in all conditions and is one it expects to appeal to a younger clientele.


Two more highways added to TNG eWallet’s toll payment service

                PETALING JAYA: Drivers can now pay toll using the Touch 'N Go eWallet at two more highways, the Kemuning–Shah Alam Highway (LKSA) and Smart Tunnel.

The app connects with up to three Touch ‘n Go (TNG) cards so drivers can instead use the credit in their e-wallet to pay for toll, while the value on the card is not billed. All the associated cards will have the same top up value as the e-wallet.

Users will still have to use the physical cards, and not their smartphones, when entering toll lanes with TNG or SmartTag to start payment.

When introduced last December, the TNG card feature could only be used at toll booths across the Duke Highway 1 Plaza Tol Batu, Plaza Tol Ayer Panas and Plaza Tol Sentul Pasar, as well as Duke highway 2 Plaza Tol Segambut and Plaza Tol Sentul Pasar Tambahan.

TNG is planning to roll out the function on most highways, starting with those in the Klang Valley including the Damansara-Puchong Expressway (LDP), New Pantai Expressway (NPE), Maju Expressway (MEX), and more.

No timeline was given on which highways would be added next.


BMW starts making fuel-cell systems for hydrogen car fleet

                MUNICH: BMW AG has started producing fuel-cell systems for its hydrogen-powered iX5 sport utility vehicle, moving forward with a climate-friendly alternative fuel that its German rivals don’t expect to be viable in passenger cars.

"Hydrogen will become more relevant in individual mobility due to its advantages,” chief executive officer Oliver Zipse said Wednesday at an opening event for the production site here.

"Hydrogen-powered cars are the ideal technology for us to complement pure battery-electric vehicles.”

BMW is the last remaining German luxury-car maker to pursue hydrogen drivetrains: Mercedes stopped the production of its GLC fuel cell SUV to concentrate on battery-powered cars; Audi shelved hydrogen test-fleet plans for the same reason.

Zipse said hydrogen fuel cells could provide a climate-friendly option for a significant segment of consumers — 20% to 30%, he estimated — who won’t be well enough served by the charging infrastructure to use a fully electric vehicle. He referred primarily to drivers making longer journeys across rural areas.

The CEO added that the fuel cells would help reduce dependencies on certain raw materials, such as lithium and cobalt, because the hydrogen-based system uses primarily aluminum, steel and platinum — metals that are more readily recyclable.

At the same time, the back-up battery for a fuel-cell system is roughly one-tenth the size of those used in EVs with a comparable range.

Field tests

BMW plans to produce fewer than 100 iX5 hydrogen vehicles by the end of this year for testing and is "seriously considering” the possibility of mass producing fuel-cell cars within this decade.

Toyota Motor Corp. will provide the fuel cells, while BMW has developed some components, such as compressors, and will produce the fuel-cell systems in Bavaria.

BMW will start delivering iX5 hydrogen vehicles to selected partners in Europe, the US and Asia from the end of this year, the company said.

The aim of the field test, which will run for up to two years, is to gain insights into every day usage of the cars.

Zipse said in early August that hydrogen-powered models might be an option for BMW’s new "Neue Klasse” platform starting in 2025.

By then and until 2030, the charging infrastructure for electric vehicles will be insufficient in many countries, making hydrogen-powered vehicles important for achieving climate goals, he said at the event.


2019 CarSifu Auto Show: 20 vehicles to be showcased

                KUALA LUMPUR: The CarSifu Auto Show opens its doors to the public today with 20 vehicles on display.

Organised by Star Media Group Bhd, the show is located on the Ground Floor Concourse of Mid Valley Mega Mall, and is open from 10am to 10pm daily until Sunday.

There will be a varied mix of vehicles ranging from the latest budget and premium sedans to sport-utility vehicles (SUV), pickup trucks, hatchbacks and multi-purpose vehicles (MPV).

Among the showcases will be BMW’s latest G20 3 Series that comes with Near Field Communication technology and Volvo’s elegant-yet-powerful S90 flagship sedan.

In the pickup category, there is Isuzu’s new Z Prestige variant for its line-up of D-Max trucks that comes with new design cues as well as two accessory packages.

Ford has brought its latest heavyweight contender – the Ranger Wildtrak 2.0 Bi-turbo, and the Ranger Raptor.

Customers who book the Raptor will receive an exclusive limited edition Ranger Raptor bomber jacket and car air purifier, while a RM6,000 cash rebate will be offered for the Wildtrak.

Honda, meanwhile, is showcasing its CRV mid-sized SUV along with its City compact sedan, while Proton has its popular X70 SUV, Exora MPV and Saga for the public to peruse.

For those with a love for the outdoors, check out the Mitsubishi Triton VGT Adventure X and Outlander SUV as well as the Forester and XV crossover from Subaru.

Nissan is also showcasing its latest family-friendly vehicles – the X-Trail Hybrid and sport version of the Serena J Impul MPV.

Children will be entertained by Cellworm Crax, the clown who will be on hand to create free balloon sculptures. Visitors who complete a CarSifu survey will earn themselves Himalaya Pastilles peppermint candy to experience fresh breath, so don’t miss out!


British firm Mahle Powertrain opens new facility for EV battery testing

                LONDON: Mahle Powertrain has opened a new, dedicated facility for the extensive testing of battery modules.

The facility, based at the powertrain specialist’s Northampton technical centre on the outskirts of the capital, enables the strip-down and disassembly of modules and compact vehicle batteries for post-test assessment, and provides a climate-controlled environment to carry out real-world simulated testing with the aim of streamlining the test and validation stages of emerging technologies.

“With electrification seemingly the automotive industry’s preferred method for achieving stringent future emissions targets, there is a very time and cost-sensitive need to develop enabling technologies such as the battery module,” said Simon Reader, Mahle’s director of engineering services.

“The new facility has been developed to provide an extensive capability that aids battery assessment, test and optimisation. In-house development of such a facility would be time and cost-prohibitive for OEMs and so it makes perfect sense for Mahle Powertrain, which can provide an end to end powertrain solution, to offer a broad range of expertise and capability that’s able to accelerate development time while reducing cost, in one place.”

As well as offering post-assessment suitability analysis, the battery pack assembly and testing facility enables testing under simulated drive-cycle conditions to evaluate the performance of battery systems in real-use environments.

Assembly of new prototype units is also possible at Mahle Powertrain’s new highly modular facility, which can conduct dynamic test cycles and steady state characterisation testing with or without battery management systems in-situ.


VW aims to turn legions of SUV buyers into electric converts with  ID.4

                DETROIT: Volkswagen AG is setting a high bar for the first electric vehicle it will build around the globe.

The carmaker will aim to pick off buyers of some of the industry’s best-selling SUVs with the compact ID.4 crossover debuting Wednesday, said Scott Keogh, chief executive officer of VW’s US unit.

He told reporters it will compete with the likes of Toyota’s RAV4, Honda’s CR-V and Subaru’s Forester.

VW expects the ID.4 to offer about 400km of range, on par with the base version of Tesla’s Model 3.

READ MORE: VW ID.4: Technical dive

While most automakers closely guard images of new models, VW chief executive officer Herbert Diess blew his own cover earlier this month.

The ID.4 made an appearance towards the end of a video he released of him and Tesla’s Elon Musk taking VW’s ID.3 hatchback for a spin at an airfield near its headquarters in Wolfsburg, Germany.

The two VW models will be the “most formidable” competition Musk faces in electric vehicles, Dan Levy, an auto analyst at Credit Suisse, wrote to clients Wednesday.

The mere existence of the ID.4 in the US will set it apart from the ID.3, which VW just started handing over to European customers this month.

While the latter model won’t make it to American shores, VW will eventually produce ID.4 on three continents, including at its Tennessee plant starting in 2022.

The big ambition is consistent with the boldest push into EVs among the world’s established automakers.

The first ID.4s will be built in VW’s factory in Zwickau, Germany, which was making Golfs and Passats before the manufacturer began transitioning the facility entirely to EVs. It will eventually produce six different models and churn out as many as 330,000 cars a year.

The price tag of the transformation is massive. VW Group has said it plans to invest 33 billion euros (RM160bil) by 2024, including 11 billion euros (RM53bil) alone for the VW brand. The unit is targeting production of 1.5 million EVs a year in 2025.

US sales will start in the first quarter of next year. A more powerful all-wheel-drive version will arrive later in 2021, and VW will offer a cheaper iteration with a smaller battery once it starts production in Chattanooga.

Keogh said the global volume VW is expecting for ID.4 - it will also sell in Europe in China - will make the model profitable. He declined to give a forecast for US sales.

“Our real goal is to drive adoption,” Keogh said.

The tall order will be made a bit easier by the ID.4’s US$39,995 (RM167,000) starting price in the US, where VW’s electric models are eligible for the full US$7,500 (around RM32,000) federal tax credit that Tesla Inc. and General Motors Co.’s customers have used up.

Multiple states also offer several thousands more in incentives, allowing VW to position its EV as a bargain relative to the average price Americans pay for new cars and trucks.

The carmaker also will offer free charging for three years through Electrify America, the subsidiary VW established in the wake of its diesel-emissions scandal.


Many Malaysians express fear over driving past construction sites, urge better enforcement

                PETALING JAYA: After the recent construction worksite-related accident that almost killed a woman, Malaysians have expressed safety concerns when driving past such sites.

On The Star’s Facebook page, many also expressed anger over the incident, which had gone viral on social media.

Shanmugaraja Ramasamy said the site in question looked as if it was poorly designed and did not take into consideration the safety of motorists using the road.

“Doubt whether a proper risk assessment was done,” he said in a comment.

Last Saturday, a parapet wall slab from an ongoing highway construction project fell and hit a car along the Middle Ring Road 2 (MRR2) in Bandar Tasik Selatan, Kuala Lumpur.

The woman escaped with an injured left hand but her car was crushed.

Another social media user, Steven Tan, said all overhead construction should be suspended until a safety standard operating procedure (SOP) was established to avoid accidents like this happening again.

Meanwhile, Anne Marie Cheong said the company should be sued for this as this sort of thing happened too often, a view echoed by many other readers.

“Shows that they are neglecting safety procedures. Can you imagine a mother with kids in the car? It can happen to anyone and safety should never be compromised at any construction sites!” she said.

Many also expressed nervousness when driving around the construction site, saying they feared for their life.

“I always feel unsafe when passing by this place,” said Helen Lim.

Aimara Sakura said that as a road user, she took a longer route just to avoid roads with ongoing construction in order to minimise the risk.

In another post, Cindy Ag Chung said: “I really have the fear of falling objects while driving through. Always concerned who will be the unlucky one. So, I try to avoid this road as much as possible.”

In a related development, the government has directed developers to ensure safety at their work sites.

Works Minister Datuk Seri Fadillah Yusof said that all industry players, from consultants to supervisors and traffic management officers, should ensure that safety was given priority.

Fadillah said the industry had to ensure the safety of not only their workers, but also members of the public walking or driving past construction sites.


Germany considers 5,000 euros incentive for electric cars

                BERLIN/FRANKFURT: German politicians and auto executives will discuss creating incentives worth up to 5,000 euros (around RM23,000) to boost sales of electric and hybrid cars, said a senior ally of Chancellor Angela Merkel.

Germany has set itself a goal of bringing 1 million electric cars onto its roads by 2020, but has so far made little progress in encouraging drivers to switch from more-polluting - but also generally cheaper - diesel and petrol vehicles.

The heads of the three parties in Merkel's ruling coalition have weighed introducing a subsidy for electric car buyers, said Horst Seehofer, head of the Christian Social Union (CSU), sister party of Merkel's Christian Democratic Union (CDU).

He added that the government was looking into whether car companies could co-finance the new incentive and that Merkel would discuss the issue with company executives next week.

Asked whether he was backing proposals to introduce an incentive of up to 5,000 euros, Seehofer said: "Bavaria is very much in favour of the buyer's premium." Seehofer is premier of Bavaria, the southern German state where carmaker BMW is based.

Calls for supporting electric cars have grown since the Volkswagen emissions scandal erupted last year.

Economy Minister Sigmar Gabriel and Environment Minister Barbara Hendricks, both senior members of the Social Democrats (SPD), are both pushing for a rapid introduction of a so-called Kaufpraemie.

But Finance Minister Wolfgang Schaeuble, a senior member of Merkel's centre-right party, so far has thwarted any efforts to agree on such a subsidy for buyers of electric cars.

An Economy Ministry spokesman said on Friday: "Talks within the German government are constructive. We are counting on arriving at a good solution to help achieve our goals." Under the proposal being discussed, carmakers may contribute between 1,500 and 2,000 euros of the incentive, which would be paid into a common fund, German weekly magazine Der Spiegel reported, without citing sources.

Germany will also pledge to invest in the construction of 16,000 electric car-charging stations and to push municipalities to buy electric vehicles for their own fleets, Der Spiegel said.

In 2015, 23,500 electric and plug-in vehicles were registered in Germany. Of these, only 12,300 were pure electric cars, according to Stefan Bratzel at the Center of Automotive Management in Bergisch Gladbach.


Alfa Romeo museum re-opens its doors

                MILAN: The Museo Storico Alfa Romeo in Arese, Italy, opened its doors to the public this week after a four-year restoration and renovation project, while presenting the new Giulia. The museum not only exhibits some of the Italian brand's most iconic cars, it also has lots of activities to entertain visitors.

The museum, designed by the architect Benedetto Camerana, houses a total of 69 cars, covering the evolution of the brand and its mark on history dating back to the introduction of the 24 HP in 1910, the very first A.L.F.A. produced.

On the ground level, the emphasis is on design, presented through various themes such as "masters of style," "the Italian school" and "Alfa Romeo and cinema." And of course several Giulietta and Giulia models grace this area with their inimitable style.

Upstairs is a selection of 19 of the brand's most iconic cars and special feature, titled "Quelli dell'Alfa Romeo," which retraces the history of the people (labourers, mechanics, test pilots, designers, engineers, etc.) who made Alfa Romeo the legend it is today.

As for the basement, that area is dedicated to speed. There you will find the cars that Tazio Nuvolari and Juan-Manuel Fangio raced on roads and tracks around the world, such as the 6C 1750 Gran Sport that won the Mille Miglia in 1930 and the Alfetta 159, Formula 1 world champion in 1951. Visitors can also discover the "Temple of Victories," a collection of images, sounds and videos that retrace all of these achievements.

The museum first opened in 1976, but after the Alfa Romeo Arese Plant was shuttered following the brand's acquisition by Fiat Group, visits had to be organized and reserved ahead of time. An initial round of renovations took place ahead of the brand's 100th anniversary celebrations, but the museum was closed once again in 2011.


A first look at Cupra's 100% electric crossover concept

                BARCELONA: Cupra, SEAT's former sportscar division which is now a separate brand, will unveil a concept car representing its vision of the future at the International Motor Show in Frankfurt, Germany, taking place Sept 12-22. It will be a fully electric crossover car.

According to the Spanish manufacturer, the concept car will have the lines of a four-door crossover, bringing together the character of an SUV with the elegance of a classic sport coupe. It's the first street Cupra that will have a fully electric powertrain.

Before the full reveal in September, Cupra has given a first peek of the car in a shot highlighting the brand's signature taillights extending the full width of the vehicle and the Cupra logo in the middle.

SEAT, for its part, plans to bring out at least six electric and plug-in hybrid vehicles through the beginning of 2021, following the path taken by the Volkswagen group overall.


Lotus showrooms in UK, USA and Europe transformed with new visual identity

                LONDON: The ongoing transformation of the Lotus global retail network continues apace, with showrooms worldwide now upgrading to the brand’s new visual identity.

The UK, North America and mainland Europe now have sites fully installed with the new look, and more will follow in the coming months.

The first Lotus showroom to integrate the new retail identity opened in the Bahrain last autumn.

It draws directly on the company’s design and engineering prowess, capturing the energy of the brand as it transforms from a UK sports car company to a global performance car business and brand.

In the UK, the first showroom to be completed is Lotus Exeter, a solus site operated by Hendy Group. It’s at Marsh Barton, the largest retail park in the south-west and the city’s main destination for automotive retail customers.

In the US, Lotus Dallas is operated by Earth Motorcars, the leader in the luxury and exotic car market in the Dallas-Fort Worth area of Texas. The business is a key participant in a local monthly auto show, an event which draws thousands of car enthusiasts.

In Europe, the teams at the first two showrooms to feature the new retail identity celebrated by staging events to introduce their customers to the Emira. In Brussels, Belgium, an all-new Lotus showroom has been delivered by the Sterckx-Desmet automotive group.

In Italy, Lotus Turin is a long-standing partner of the brand which has invested in the new retail identity to improve the experience for customers.


Ford aims to be the Tesla of connected commercial vehicles

                DETROIT: Ford Motor Co chief executive Jim Farley won applause from Wall Street by increasing the production target for the automaker's electric F-150 to 150,000 a year, more than three times the original number.

Now, Farley wants investors and commercial vehicle customers to pay more attention to the software and services Ford wants to sell with those trucks, as well as to the company's electric Transit vans and its portfolio of combustion engine commercial vehicles.

At an event in Sonoma, California, this week, Farley and other Ford executives are rolling out more details of their Ford Pro commercial vehicle strategy - and setting ambitious goals.

"This is a first move by Ford to really start to scale and commit serious resources to digital software and services-based revenue," said Farley.

Ford Pro is a standalone unit created last May to focus exclusively on commercial and government customers.

Ford has set a goal to increase Ford Pro's annual revenue to US$45 billion by 2025, up 67% from 2019. Farley said Ford Pro is paving the way for Ford to expand digital service offerings to retail customers.

The US and European commercial vehicle markets are fragmented, Farley said. Ford can use its position as the leading commercial vehicle brand in the United States and Europe to be a leader in pulling the pieces together as commercial fleets go electric.

"We are the Tesla of this industry," he said.

Ford Pro, which will house the Dearborn, Michigan, automaker's commercial vehicle operations, is now ramping up a commercial electric vehicle charging business using software and workers who came on board when Ford bought charging startup Electriphi in June 2021.

Ford Pro also has a partnership with Silicon Valley enterprise software power Salesforce.com Inc to develop its VIIZR software to digitise billing and other paperwork for contractors and other businesses that deploy people to jobs where the vehicle also serves as office space.

Ford Pro chief executive Ted Cannis said in an interview the unit has 125,000 active accounts, and a 40% share of the US commercial van and pickup markets.

Startups such as Rivian Automotive Inc and established rivals such as General Motors Co and its new BrightDrop van unit are aiming for big customers such as FedEx Corp or Amazon.com Inc as golden tickets to vehicle-based service businesses.

With Ford's stable of small and medium-sized business customers, "I've got 125,000 golden tickets," Cannis said.

Trepidation over EVs

Ford has tried before to expand higher-margin service businesses to augment its traditional manufacturing business, which do well to crack 10% pretax margins in good years.

In the early 2000s, Ford acquired a repair services chain and auto salvage yards in an attempt to capture revenue from a larger chunk of the life cycle of a vehicle. Those diversifications were abandoned.

Ford's new service strategy will have to overcome efforts by rivals that are also racing to sell electric vans and trucks to commercial vehicle fleets.

Individual pieces of Ford Pro's service business, such as fleet charging, will face competition from companies such as ChargePoint that already offer such services.

Rhett Ricart, whose Ohio-based Ricart Automotive Group is a major Ford commercial vehicle dealer, said Ford executives have "done their homework" on Ford Pro.

Now, he said, the automaker must deliver electric vehicles that do not leave business customers stranded.

"Those vehicles have got to be flawless. People will have trepidation. They know what they've got with internal combustion engines. They know where to get gasoline," Ricart said.

Farley and Ford executives said connected vehicle technology - including telematics systems that give Ford a pipeline to receive data from its vehicles - give the company a firmer foundation for recurring revenue, subscription services as well as increased repair business driven by software that tells fleet owners when it is time for vehicle maintenance.

Ford can analyse how many miles vehicles in a fleet drive, and where they are parked, to design hardware and software that allow for recharging at a central depot, or at a worker's home, or both, said Muffi Ghadiali, former CEO of Electriphi and now head of the Ford Pro electric vehicle charging business.

"Because of telematics we can give them a very precise plan based on how the fleets operate," he said.


Maserati finally reveals Levante SUV

                MODENA: The long-awaited Maserati SUV has been revealed ahead of its world debut at the 2016 Geneva Motor Show. The company on Friday showed off the exterior form of the Levante, the first SUV in the brand's more than 100-year history.

The Levante features an aggressive front with new, tapered headlights separated into two elements, with the upper headlight unit connected to the radiator grille.

Maserati's design signature is visible on the sides: the three iconic air vents on the front wings, the trapezoidal C-pillar with the “Saetta” logo and the large, frameless door windows. The rear is dominated by a tapered back window and streamlined shape.

Maserati claims the Levante's chassis is designed to combine the on-road performance of its road cars and the handling and grip for off-road performance.

The new SUV boasts a high level of content as standard, with all versions featuring : electronic suspension with controlled damping and air springs, which can be set on several levels, “Q4” intelligent all-wheel drive and 8-speed automatic transmission calibrated for the SUV.

The Levante is equipped with petrol and diesel engines that are all Euro6-compliant.

The Levante is built at the Mirafiori plant in Turin; the first cars have already come off the assembly line with the launch planned for this spring in Europe, to be followed by the rest of the world later this year.

The new model completes the existing range of sedan and sports cars, which includes the Quattroporte, Ghibli, GranTurismo and GranCabrio models.


Ferrari slowed by coronavirus, but not driven off course

                MILAN: Luxury sports car maker Ferrari still expects to make more than US$1 billion (RM4.3bil) in core profit this year, providing a relative beacon of stability in an auto industry ravaged by the coronavirus crisis.

The company, known for its red Formula One racing cars and its prancing horse logo, cut its 2020 core earnings forecast on Monday, blaming a hit to motor sport revenues among other pressures, and warning of an extremely tough second quarter.

But the Italian firm said it still expected to generate free cash flow this year, and its guidance contrasted with others in the industry — including US electric carmaker Tesla, Germany’s and Porsche-owner Volkswagen — which have all suspended forecasting.

Slumping sales

Car sales across the world have slumped as measures to contain the virus pandemic forced production lines to shut and showrooms to close. Data on Monday showed the biggest ever drop in business morale in Germany’s auto sector.

Ferrari, which on Monday restarted operations at its plants in Maranello and Modena, predicted a “harsh” reduction of revenues linked to Formula One, where races have been suspended, as well as reduced turnover from brand projects and lower engine shipments to Maserati.

“Second quarter will be very weak,” chief executive Louis Camilleri told analysts, as the company said it now expected adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) this year to edge down from 2019 levels to 1.05-1.20 billion euros ($1.15-$1.31 billion).

In February, Ferrari had projected an increase in 2020 Ebitda to 1.38-1.43 billion euros.

“While the Formula One hit to revenues and earnings is not an easy matter to digest, the good news is that the significant losses incurred should be short-lived and contained to 2020,” Camilleri said.

The CEO said projections relied on Ferrari’s ability to retain a “very strong” order book, adding that as of now it had not received any “abnormal or untoward” cancellations.

Generating cash

Ferrari, whose origins date back to 1929, said it now expected industrial free cash flow of 100-200 million euros this year, compared with 400 million euros or more previously.

The company, which like its former parent Fiat Chrysler is controlled by the Exor holding company of the Agnelli family, cautioned its new guidance did not include a potential second wave of Covid-19 infections.

Ferrari’s two plants, both located in Italy’s northern Emilia Romagna region, had been closed since mid March.

Volumes rose despite delivery suspensions due to the virus outbreak, driven by 488 Pista and 488 Pista Spider models, along with the ramp up of the F8 Tributo, the company said.

Ferrari said its total available liquidity at the end of March was 1.23 billion euros. Last month, it secured additional committed credit lines worth 350 million euros, with maturities up to 24 months, taking total committed, available and undrawn credit lines to 700 million euros, it said.


Stellantis to launch all-electric compact SUV in 2025

                AMSTERDAM: Stellantis will invest 160 million euros (RM790mil) at its Rennes plant to launch a 100% electric compact Sports Utility Vehicle (SUV) in 2025, the Franco-Italian-American car manufacturer said on Thursday.

Stellantis will use the investment to set up a battery assembly workshop as well as one dedicated to plastic injection moulding, it said in a statement, adding the vehicle's launch will happen on the future STLA Medium platform.

Stellantis, which like many carmakers is shifting towards producing more environmentally-friendly vehicles, plans to sell only electric cars in Europe by 2030.

The car, code-named CR3, will succeed the current C5 Aircross with petrol, diesel and hybrid engines.

Asked whether the new vehicle would be available as anything other than a 100% electric model, CEO Carlos Tavares told the press: "In principle no".


This futuristic flying car could be on the road (and in the air) from 2025

                SAN FRANCISCO: A startup called Alef has got the go-ahead from the US Federal Aviation Administration (FAA) to start carrying out road/air tests for its unusual flying car project.

Thanks to this Special Airworthiness Certification granted by the FAA, Alef will now be able to drive — and take off and land — its flying car on public roads.

This is the first time that a vehicle of this nature, with vertical take-off and landing capabilities, has been granted this authorisation in the United States.

This flying car, simply named "Model A," takes the form of a 100% electric sports car, capable of being driven on the road before, once stationary, taking off vertically, in the manner of a drone.

This unusual flying car boasts a range of 320km on the road and just under 180km in the air.

Its originality lies in the fact that it has no wings and is powered by a series of well-hidden propellers.

Once airborne, the car body can rotate 90 degrees around the cockpit —which remains static —- in order to move from upward to forward flight.

This flying car is priced at US$300,000 (RM1.4mil) on the Alef website. Pre-orders can already be placed by paying a deposit of US$1,500 (RM7,000), which gives priority on the waitlist.

The first shipments are scheduled for late 2025.

On paper, however, the concept looks like something straight out of a science-fiction film. It's hard to know whether Alef will be able to rise to the technological challenges of developing such a vehicle ahead of mass production.

For the time being, this certification limits the places where Alef's vehicle is allowed to fly, and it will have to prove itself and its performance before it can hope to have the right to drive (and fly) anywhere in the country.

Alef has no intention of stopping there, however, and is already working on a four-seater sedan, the "Model Z," scheduled for launch in 2035.


Facelifted Hyundai Tucson is here, two versions from RM124K

                SHAH ALAM: The 2018 redesigned Tucson has been launched at all Hyundai showrooms nationwide.

Unveiled with futuristic new exterior and interior designs, the facelifted Tucson is available in two variants i.e the 2.0L Elegance and the 1.6L Turbo which are priced at RM123,888 and RM143,888 respectively (Peninsular Malaysia prices, exclude insurance).

The signature elements of the Hyundai cascading grille and modern-day surfacing found in the rear view create shadowy, dramatic impressions that represent the Hyundai DNA. The new 17-inch rims as well as LED headlights and rear lights (applicable for the Turbo variant) offer a new dynamic stance of this redesigned version.

The 1.6L Turbo is offered with a Chrome Garnish grille, Chrome Coated door handles with pocket lighting as well as LED headlights with Positioning Lamp and Low Beam Assist-Static Lights. The 2.0L Elegance comes with the Metallic Silver grille and Halogen Bulbs with Positioning Lamp.

The cockpit is redesigned featuring Hyundai’s latest 7-inch floating display that comes with Android Auto and Apple CarPlay; a new front panel air-conditionervent design, new cluster, and a new leather seat design. The 1.6L Turbo comes with more advanced features such as the Electronic Parking Brake (EPB), Electro-Chromic Mirror (ECM), 8-way power seat for the driver with 2-Way Lumbar Support, 4.2-inch TFT LCD Super Vision and a leather garnish for the front panel.

The 1.6L Turbo maintains the T-GDI engine that produces 175hp and delivers a maximum torque of 265Nm from 1,500 to 4,500 rpm while the 2.0L Elegance maintains the Nu MPi engine that produces 153hp at 6,200 rpm and a maximum torque of 192Nm at 4,000 rpm.

Safety features such as the Anti-Lock Brake System (ABS), Electronic Stability Control (ESC), Hill-Assist Control (HAC), Downhill Brake Control (DBC), Brake Assist System (BAS) and Vehicle Stability Management (VSM) come as standard for both the variants. The 1.6L Turbo variant comes with six airbags, smart tailgate system, as well as Front and Rear Parking Distance Warning while the 2.0L Elegance variant only comes with two airbags and Rear Parking Distance Warning.

“The response for the Tucson has been encouraging since we opened our order books about two weeks ago. The new design is appealing to many SUV enthusiasts because it is modern, futuristic and chic. I am confident that the Tucson will be the choice for many young urban dwellers,” said Sime Darby Motors (Malaysia, Thailand and Taiwan) managing director Dennis Ho.

The Tucson is entitled to 50,000km free service with 3 years’ validity and a five-year or 300,000km (whichever comes first) warranty. For more information or to place a booking, interested parties can head to the nearest sales outlet or call Hyundai’s Customer Careline at 1-300-13-2000.


Mercedes-AMG EQS and AMG EQE arrive in Malaysia

Sardien (left) and Plangger posing with the two models following their launch today.
KUALA LUMPUR: Mercedes-Benz Malaysia today launched the sporty version of the EQS and EQE.

The fully imported Mercedes-AMG EQS 53 and Mercedes-AMG EQE 53 are priced at RM798,888 and RM649,888 respectively. Both come in performance-oriented all-wheel drive or 4Matic+ form.

The launch coincided with the three-day Mercedes-Benz Fashion Week (external site), which starts here this evening.

The two performance models arrived less than a year after the EQS launch in July last year, which was followed by the EQE last December.

The AMG-specific electric motors at the front and rear axles in both models are permanently excited synchronous motors.

The electric motors are made more potent through new windings, stronger currents and new actuation via inverters with specially
developed software.

The electric motor at the rear axle is particularly powerful. A major reason for this is the six-phase design based on two windings with three phases each. The stators with move-in winding ensure a particularly powerful magnetic field.

The power is put to the road by the AMG Performance 4Matic+ fully variable all-wheel drive system.

Details about the EQS 53 are set out below. Information about the EQE 53 is to be found in a separate story.

The EQS 53 achieves a maximum output of 484 kW (658 hp), with peak torque of 950Nm.

It accelerates from 0-100kph in 3.8 seconds and its maximum speed is limited to 220kph.

With the included AMG Dynamic Plus package, the maximum output increases to up to 560 kW (761 hp) in Race Start mode with boost function.

The maximum torque is then raised up to 1,020Nm.

In this case the AMG EQS accelerates from 0-100kph in 3.4 seconds with a battery charge level of at least 75 percent.

The top speed is limited to 250kph.

With its one-bow lines and cab-forward design with hatchback, the EQS 53 is clearly different from the combustion engine E-Class.

The front view with Digital Light headlamps as standard is characterised by the AMG-specific black panel grille with hot-stamped vertical struts in chrome, integrated Mercedes star and AMG lettering.

The front bumper is painted in the vehicle colour and is contrasted by the front apron in the hallmark AMG A-wing design, which is painted in high-gloss black and features chrome trim.

The back view is accentuated by the AMG spoiler lip painted in the vehicle colour . The car is equipped with a panoramic sliding sunroof.

It comes with a Night Package that sees some of the car features in a black or black chrome finish. Also included is 21-inch AMG
cross-spoke light-alloy wheels aerodynamically optimised, painted in matt black and rim flange with a high-sheen finish.Also standard are red-painted brake callipers with black AMG lettering.

In the safety department, the EQS 53 is equipped with Driving Assistance Plus Package which includes Active Distance Assist DISTRONIC, Active Lane Keeping Assist, rear sensors for the lane departure assistant, Active Steering Assist, evasive manoeuvre support, and PRE-SAFE Impulse Side.

The Parking Package with Remote Parking Assist comes with Active Parking Assist, 360-degree camera, and pre-installation for Remote Parking Assist.

For further ease of mind, the vehicle has the URBAN GUARD vehicle protection Plus featuring anti-theft alarm system and interior monitoring system.

Like the regular EQS, the AMG version also has rear-axle steering and air suspension.

The Airmatic air suspension offers improved ride comfort over steel springs.

The interior follows the AMG theme. The seats are wrapped in nappa leather with AMG-specific seat graphics.

The AMG steering wheel has a combination of carbon fibre and Microcut microfiber providing a good grip while driving.

It is paired with AMG steering wheel buttons and silver-coloured aluminium shift paddles for setting various recuperation levels which further emphasises the cabin sportiness.

In addition, there are numerous other features that underline the distinctive style of the interior such as instrument panel and beltlines in space grey ARTICO man-made leather with NEOTEX grain and red topstitching, door centre panels and also transition from centre console to dashboard in black Microcut microfibre with red topstitching, AMG sports pedals, and AMG floor mats and lit door sill trims with AMG lettering.

The AMG EQS is equipped with the MBUX Hyperscreen. comprising three screens under a glass cover.

AMG Track Pace, the virtual race engineer, is part of the MBUX infotainment system and permanently records more than 80 vehicle-specific data (e.g. speed, acceleration), for example while driving on a racetrack.

On top of this, lap and sector times are displayed, as well as the respective difference from a reference time.

The data is displayed on the multimedia display, in the instrument cluster and on the optional head-up display.

The Premium Plus package included comes with climatised front seats, Thermotronic automatic climate control, Burmester 3D surround sound system, and panoramic sliding sunroof.

Providing further assistance to the driver, the MBUX augmented reality head-up display and MBUX augmented reality for navigation enables drivers to manoeuvre safely through complex traffic situations.

The EQS 53 achieves a drag coefficient of 0.23 in various ways. These include the use of front splitter, flics and fins on the air
intakes; Air Curtains; aerodynamic rear diffuser; a larger rear spoiler than the AMG Line EQS; and aerodynamic wheels.

The EQS 53 sets standards not only with its high power delivery when accelerating, but also with efficient energy recuperation when braking.

The recuperation output is up to 300 kW . The driver can adjust the level of recuperation in three stages via switches on the steering
wheel, and receive situation-related support from the ECO Assistant.

The AMG EQS is equipped with a powerful 400-volt Li-ion battery with a usable energy content of 108.4 kWh.

One special technical feature is the AMG-specific wiring, which is adapted to the high performance capacity.

The battery management system is also configured specifically for AMG. In the Sport and Sport+ driving modes the focus is on performance, in Comfort mode on operating range.

The new generation of batteries is characterised by a significantly higher energy density compared to previous developments. It also has a higher charging capacity.

Another new feature is the possibility to install updates for the battery management system over the air.

The new generation battery benefits from shorter charging times.  As with the sister model from Mercedes-EQ, the battery can be charged with up to 200 kW at quick-charging stations with direct current.

In this case, power for up to another 300km (WLTP) can be topped u after just 19 minutes.

Thanks to the onboard charger, the electrified AMG can be conveniently charged at home or at public charging stations with up to 22 kW of alternating current.

The battery also stands out for its durability. The ECO Charging function makes a significant contribution to this: the intelligent control reduces the battery load during charging, and thus slows down the natural ageing process of the battery.

Customers can also benefit from"charge interruption" function: the charging process can be paused at freely selectable times so as to
use cheaper off-peak electricity at a later time, for example.

The battery certificate stands for the long service life of the high-voltage batteries. It is valid up to a term of 10 years or up to 250,000km.

The AMG ceramic braking system comes with an i-Booster function that combines electric recuperation with the hydraulic brake in an efficient manner. The i-Booster is specially tuned to the AMG pedal feel and the larger AMG braking system.

The car supports predictive route planning and efficient driving with Electric Intelligence.

Electric Intelligence plans a fast and comfortable route in advance, including charging stops, based on numerous factors such as the calculated energy demand.

The system includes all relevant data in the calculation, from topography and route to driving speed and heating and cooling requirements.

With Electric Intelligence, the AMG EQS also reacts dynamically to the traffic situation on the planned route. The vehicle records traffic tailbacks and road closures, as well as changes in energy demand.

For its calculations the system uses information from the cloud, which it combines with onboard data.

Lastly, Mercedes-AMG electric models come with an AMG Sound Experience, for an emotional driving experience by piping into the cabin a sonorous sound to electric driving.

The sound system uses special loudspeakers, shakers and a sound generator to create a special sound experience in two versions: "Authentic" or "Performance".

The AMG Sound Experience is generated inside and out with a tonality and intensity to match the current driving status, the selected driving mode or the driver's wishes.

Mercedes-Benz Malaysia president/CEO Sagree Sardien said EV sales in Malaysia are "on track" and is in double digit figure compared to last year. She declined to reveal numbers.

Mercedes may consider bringing in the EQE 43 if customer demand is there, she said, adding that early adopters are snapping up its electric cars. For now, she said the EQE 53 is the right fit for the local market and plays well with its range of EV models, which she said is the largest number by a carmaker in Malaysia at present.

With the two AMG models, Mercedes-Benz Malaysia now offers seven all-electric models, which includes EQS, EQE, EQC, EQB and EQA.

Backing up the sale of electric cars are 12 DC fast chargers installed at its retailers.  Mercedes-Benz is also teaming up with Petronas to install chargers along highways and is keen to work with other partners to expand the charging network across Malaysia.

Mercedes-Benz Malaysia sales & marketing vice president Bettina Plangger said local assembly of its AMG electric vehicles is a possibility subject to market response to them. Apart from local assembly of various combustion engine models, Mercedes-Benz Malaysia had recently started local production of the EQS.


Car costs make Singapore world's priciest city. Again.

                SINGAPORE: The eye-watering cost of owning a car in space-starved Singapore means the city state is the world's most expensive place to live, for the fifth year in a row, a survey said Thursday.

The Asian financial hub — where owning a no-frills sedan can set you back US$76,000 (RM298,000) — beat global capitals to the dubious title, despite stiff competition from resurgent European cities.

Pricey perennials Tokyo and New York did not even make the top 10 in the annual list by the Economist Intelligence Unit (EIU), beaten out by Paris, Zurich (joint second) Hong Kong (fourth) and Oslo (fifth).

Seoul and Geneva shared sixth place, while Copenhagen, Tel Aviv and Sydney rounded out the rankings

Despite some perks to domestic life in Singapore — home help is cheap — the former British colony "remains the most expensive place in the world to buy and run a car," EIU said.

Singapore has avoided Asia's massive traffic jams by controling vehicle ownership through a quota system under which a buyer must pay for a Certificate of Entitlement — currently nearly S$40,000 (RM120,000) — on top of the vehicle's actual price.

That means a basic sedan comes with a S$100,000 (RM299,000) price tag.

Asian cities tend to be most expensive for grocery shopping, while Europe comes out tops in household, personal care, recreation and entertainment, the survey said.

Currency fluctuations remain a major cause for the changes in the rankings, with the weaker US dollar keeping American cities out of the top 10.

War-wracked Damascus, the troubled Venezuelan capital Caracas, Lagos in Nigeria and the Pakistani city of Karachi are among the world's cheapest cities, the survey showed.

"Put simply, cheaper cities also tend to be less liveable," it said.


LG Chem plans to separate battery business as electric cars take off

                SEOUL: South Korea’s LG Chem, an electric car battery supplier for Tesla Inc and GM said today it plans to separate its battery business into a new company as the electric vehicle market takes off.

The move came after LG Chem swung to a profit in its car battery business in the latest quarter. It expects further profitability, thanks to growing demand from European car makers and more sales of cylindrical batteries used in Tesla cars.

LG Chem, South Korea’s top petrochemicals maker, has long bet on car batteries as a new growth engine, but it has never made an annual profit in the business since it started making them about a decade ago.

But expectations are growing for its car battery business as automakers push for more electric vehicles, fuelled by Tesla’s rise and tougher emissions regulations in Europe.

LG Chem said the timing was right to separate the business, which competes with China’s CATL and Japan’s Panasonic, as it has started to make “structural profits” in its car battery business.

LG Chem said the new business, to be launched in December, aims to achieve a revenue of 30 trillion won (RM106bil) or more in 2024, from an expected revenue of 13 trillion won (RM46bil) this year.

The new wholly owned subsidiary, tentatively named “LG Energy Solutions,” will include LG Chem’s small batteries used in smartphones and laptops and its energy storage systems, as well as its car batteries.

LG Chem shares slumped 5.4%.

“Many LG Chem investors will only indirectly hold the battery business, which will be separated into a unit,” Daeshin Securities analyst Han Sang-won said.

He also said investors are also taking profits ahead of Tesla’s Battery Day, in which Tesla may unveil its advanced battery technologies.

LG Chem said it will consider a stock market listing of the battery unit, without elaborating further.

Making the unit an independent company would also help attract investments to the business, which requires heavy capital expenditure to expand production capacity as orders pile up, LG Chem said.


Mercedes-Benz Autohaus opens in Melaka

                PETALING JAYA: Mercedes-Benz Malaysia Sdn Bhd (MBM), together with authorised dealer partner, MBSA Automotive Sdn Bhd, launched the temporary Mercedes-Benz MBSA Autohaus, the only Mercedes-Benz Autohaus in the historical city of Melaka.

With an investment of RM1.2mil, the temporary Mercedes-Benz MBSA Autohaus is part of MBSA’s ongoing RM14mil investment to continue to set benchmarks of automotive distinction in product and after-sales care in the historical city of Melaka.

“As a brand that is driven by premium distinction, we believe that automotive excellence extends beyond the vehicle; it includes the entire customer experience. The launch of Mercedes-Benz MBSA Autohaus is a testament of the successful partnership between MBSA Automotive and Mercedes-Benz Malaysia, and also a commitment to our customers to continue strengthening our touchpoints in the region.

"With a total of RM45mil invested in southern region, we have five Autohauses that are dedicated to providing customer experience and service like no other. We will continue to delight and satisfy our customers with our ever-growing services and high standards of quality that are synonymous with the Mercedes-Benz brand,” said Mercedes-Benz Malaysia President and CEO, Dr Claus Weidner.

 (From left) Mercedes-Benz Malaysia President and CEO, Dr Claus Weidner; Network Development, Senior Manager, JC Yap; Guest of Honour, Tan Sri Syed Mohd Yusof; MBSA Automotive Malaysia Sdn Bhd, Dealer Principal, Philip Beng; and General Manager, Lu Haw Nguan.

Housed in an iconic building, Mercedes-Benz MBSA Autohaus is located in a fast-developing part of Melaka with a built-up area of 10,142 square feet.

The Mercedes-Benz MBSA Autohaus is managed by 48 staff who are well-versed in sales and technical services in line with Daimler’s global standards.

Mercedes-Benz MBSA Autohaus is able to display nine vehicles with a dedicated customer lounge and event floor.

For customers’ convenience under the same roof, financial services from Mercedes-Benz Services Malaysia and official Mercedes-Benz accessories and merchandise are also available.

With a total investment of RM1.2mil, the Mercedes-Benz MBSA Autohaus is fully compliant with the Mercedes-Benz Presentation System II (MPS II), the global Autohaus benchmark of customer experience, complete with the new Mercedes-Benz Corporate Identity (CI).

To date, Mercedes-Benz Malaysia has 31 dedicated dealerships nationwide.

The Mercedes-Benz MBSA Autohaus is located at No 1, 3, 5, Jalan KSB 16 Taman Kota Syahbandar, 75200 Melaka.

For more information, please visit www.mbsa.mercedes-benz.com.my or call 06-2888854.


Honda Civic sets the benchmark as segment leader

                PETALING JAYA: Honda Malaysia announced that its recently launched Civic (February) with added advanced technology has managed to remain the top preferred C-segment sedan.

The Japanese carmaker said that its Civic has managed to capture a market share of 70%* and to-date it has managed to garner more than 2,900 units in sales nationwide - placing the Civic as the third best-selling model in the company's overall sales.

Within the central region, the Civic contributed 44% to the company's total sales followed by 17% from the Southern region and 15% from the Northern region.

Not to mention, the colour of choice for the C-segmenter is Orchid Pearl among customers - representing 42% of its overall sales.

At present, the latest Civic has received more than 6,500 bookings as of June 2020 with deliveries requiring a one-month waiting period.

The Civic is powered by a 1.5-litre VTEC turbocharged engine with 173PS and 220Nm of torque.

In terms of goodies, the Civic comes with LEDs for the headlights, daytime running lights and front fog lights as well as a newly styled front and rear bumper to complement.

For safety, as standard, all variants of the Civic are equipped with six airbags, vehicle stability assist, agile handle assist, hill start assist, emergency stop signal, anti-lock braking system, brake assist, auto brake hold, front parking sensors and Isofix anchor points.

The Civic currently comes in three variants starting with the entry-level 1.8S and is followed by the 1.5 TC and the range-topping 1.5 TC-P while priced on-the-road without insurance (after sales tax exemption) at RM109,326.51, RM125,081.09 and RM134,934 respectively.

To have the Civic draped in Orchid Pearl will add on a RM272.72 premium to the asking price regardless of the buyers choice of variant.

"The New Civic outrivals (the competition) in advanced safety features and sets an even higher benchmark in the C-segment, offering a complete technologically advanced sedan that continues to be well-received by young adults, young urban families, professionals and tech-savvy individuals," said Honda Malaysia managing director and CEO Toichi Ishiyama.

Ishiyama added that thanks to the Penjana initiative, the Civic has received a substantial reduction the give customers even more reason to own it.

For more information, log on to www.honda.com.my  or call Honda’s toll-free number at 1-800-88-2020  or visit any of Honda’s 101 authorised dealers nationwide.


Cheras-Kajang highway closed starting tomorrow

                PETALING JAYA: A 200-metre section of the Cheras-Kajang highway will be closed for MRT works for one month, starting Friday.

MMC-Gamuda KVMRT Sdn Bhd said in a statement that the closure would involve the left most lane on the Kuala Lumpur-bound side of the highway.

“The left most lane of KM14.6 until KM14.8 of Cheras-Kajang Highway (KL Bound) will be closed for 24 Hours from Sept 11 to Oct 11 to facilitate painting and reinstatement works at P115,” the group said.

During that period, four lanes along the stretch will be reduced to three from the 704 interchange, the company added.


Auto sector gets New Year cheer as SST exemption extended

PETALING JAYA: The vehicle sales tax exemption, which is supposed to end tomorrow, has been extended until June 30,2021.

Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said the exemption would greatly benefit the auto sector, considering the economic uncertainties created by the Covid-19 pandemic.

“We’re very pleased that the government has chosen to extend the sales tax exemption. It will benefit not just the automotive industry, but also the public and financial institutions, ” she told StarBiz.

Aishah said the association had appealed to the government to extend the exemption.

The government announced the extension in a memo to the MAA and the Malaysian Association of Malay Vehicle Importers and Traders yesterday.

According to the memo, the sales tax exemption percentage remains unchanged from what was announced in June, with 100% for locally-assembled cars and 50% for fully-imported vehicles.

Proton Holdings Bhd chief executive officer Li Chunrong (pic below) said the national carmaker, like the entire automotive industry, is grateful for the government’s decision to extend the sales tax exemption.

“While Covid-19 is a black swan, it is measures like this that show agility and grit to help steer the economy. The entire automotive industry benefited greatly from the tax holiday as shown in the second half 2020 performance.

“We at Proton are confident that this extension will spur the industry forward into 2021, ” he added.

Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) president Datuk Tony Khor said the sales tax exemption would also be a boost to the used car industry.

“The sales tax exemption helped spur demand for used cars in the second half of this year and we expect sales to grow between 8% and 10% year-on-year in 2020.

“We were initially very worried that the exemption would not be extended. If that had happened, it would have had a negative impact on the industry.”

Without the tax exemption, Khor said the used car industry could see a decline in year-on-year sales growth of between 20% and 30% for 2021.

“We are thankful for this extension. We’re hoping that after six months, the economy will recover and the vaccine will be out and things will normalise. It’s certainly good news to the industry. The tax exemption is very important. From upstream to downstream, the auto sector creates about 570,000 jobs and contributes around 4% to gross domestic product annually.”Khor said the automotive industry is also a significant contributor to the banking sector.“Yearly, hire purchase loans alone contribute around RM40bil to the banks. So the car industry is a lucrative business for the local banks. If automotive sales dropped, it would greatly affect the economy.”

Khor is also hopeful that local financial institutions will consider extending the loan moratorium another six months.

“Other than the sales tax exemption, the moratorium also helped spur car sales this year, ” he said.

Earlier this month, the MAA revealed that total vehicle sales continued its year-on-year upward trajectory for the sixth consecutive month in November, rising 7.4% to 56,489 units from 52,584 units in the previous corresponding period.

The pick-up in sales was mainly due to the government’s tax exemptions and aggressive promotional campaigns by automotive companies continued to drive sales.

Despite the year-on-year pick-up in sales, November’s total industry volume (TIV) was 0.3% lower on a month-on-month basis compared with October.

Year-to-date November, TIV is still far off compared with last year, with total sales standing at 454,708 units compared with 549,439 units in the previous corresponding period.

On the outlook for December, the MAA said sales volume is expected to be much higher than November’s.

The association said the higher sales would be spurred by continuation of the impetus from sales tax exemption incentives for passenger vehicles, as well as the ongoing aggressive promotional campaigns by car companies.

In July, the MAA announced that it was revising upwards its vehicle sales target for the year by 17.5% to 470,000 units as the grim economic outlook is likely to be buffered by the various incentives recently announced by the government.

Nevertheless, the projection would not only mean that sales this year would be a 22% contraction from 2019’s 604,287 units sold. It would also be the first time in 13 years since TIV failed to surpass the 500,000-unit mark.

In April, the MAA revised downwards its 2020 TIV forecast to 400,000 units from the 607,000 units it had projected in January.


Cars fuelled by sugar in India will heighten food inflation risks

                NEW DELHI: India is pushing for more cars to run on ethanol made from sugar, a move that risks raising the cost of the sweetener globally.

The government will fast-track an ethanol program that will divert as much as 6 million tons of sugar towards fuel production annually by 2025, according to the food ministry. That’s almost the entire amount that India, the world’s second-biggest producer after Brazil, currently exports to the global market.

Prime Minister Narendra Modi advanced in June a target for blending 20% ethanol in gasoline to 2025, five years earlier than planned. The advantages are multifold: it will reduce air pollution, cut India’s oil import bills, help soak up a domestic sugar glut and increase investment in rural areas.

For the rest of the world, the move may be the biggest change in years for the sugar industry and could drive a bull market, according to Czapp, Czarnikow’s new portal for agri-food analysis.

Prices have soared to the highest since 2017 amid a supply crunch, partly due to wild weather in Brazil. A further surge will add to food inflation risks, with global food costs already near a decade high.

It’s “good news for the world if India diverts sugar to produce more ethanol as it will reduce the global surplus,” said Rahil Shaikh, managing director of Meir Commodities India Pvt, a trading company. “But eventually if there is higher demand, some countries including India will have to expand cane acreage.”

To meet its 2025 target, India will have to almost triple ethanol production to about 10 billion litres a year, according to the country’s oil secretary Tarun Kapoor. This will require US$7 billion of investment and the challenge would be to create the kind of capacity needed in a short span of three to four years.

The government is offering financial support to sugar milPratik Parija muck rackls to set up or expand distilleries. Companies including Balrampur Chini Mills Ltd. will stop producing sugar at some mills and begin processing cane juice to make ethanol instead.

Brazilian model

India is pursuing a similar strategy to Brazil, which has promoted sugarcane-based ethanol for more than 40 years to ease its sugar glut, cut dependency on oil imports and increase energy security. Today, Brazil owns the largest fleet of flex-fuel cars that can run on any blend of ethanol and gasoline.

India will allow production of ethanol-based flex engines too, the Press Trust of India reported. Higher use of biofuels in transport can ease India’s economic burden from high crude prices and help the third-largest oil importer save US$4 billion annually, according to government estimates.

“They will kill two birds with one stone,” said Michael McDougall, the New York-based managing director of Paragon Global Markets. “It is a move in the right direction.”

The plan will also cut India’s sugar export subsidies by about US$500 million. The government helps cash-strapped mills to boost shipments as a way to support local prices and increase export competitiveness. Rivals including Brazil and Australia have complained about the subsidies to the World Trade Organization.

This year, India is set to export a record amount of sugar again with the help of subsidies. Volumes are forecast at 6.5 million tons.

“The surplus will be small after 2025 and the need to export will not remain at such high levels,” said Abinash Verma, director general of Indian Sugar Mills Association.

“Depending on domestic and global prices, there may still be small quantities of exports,” he said, declining to give a forecast.


Toyota Hilux owners, watch out for hijackers

                KAJANG: Police are on the hunt for a vehicle theft gang which has been targeting Toyota Hilux pickup trucks in Kajang, Selangor.

The gang of four men has been responsible for at least five related cases since the end of February in Sungai Long and Bandar Mahkota Cheras.

Kajang OCPD Asst Comm Ahmad Dzaffir Mohd Yussof said that the gang will attack the drivers of the Hilux at petrol stations or when they stop by the roadside.

“They are often armed with machetes and knives. We have already obtained actionable leads and are in the midst of tracking them down,” he said when contacted on Thursday (March 22).

The police have received reports of one Hilux theft and four attempted thefts between the end of February and March 21.

He was commenting on a video and pictures that went viral on social media, claiming four men have been active in stealing vehicles in Sungai Long and Bandar Mahkota Cheras.

ACP Ahmad Dzaffir also urged anyone with information to contact Kajang CID officer Asst Supt Mohd Irwan at 017-3168097.


Award-winning Citroen DS to be auctioned

                LONDON: A 1973 Citroen DS Super 5, believed to be the finest Citroen DS in the world, is set to be auctioned at Silverstone Auctions’ Salon Privé Sale on Sept 3 at Blenheim Palace.

With its aerodynamic, futuristic shape and innovative technology, this Citroen DS didn’t even have to leave the dealership showroom to find its first owner. The CEO of the supplying dealership is the first and only registered owner of the car, which is now one of the most decorated examples on the classic Citroen circuit in the world.

The right-hand drive DS is presented in period white (Blanc Meije) bodywork with original Red Targa upholstery. The car has won over 200 awards, featuring at the Paris Concours and Citroen World Championship.

This star car even boasts a television career, with appearances on both Top Gear and Fifth Gear. It has even been offered a permanent place at the national Citroen Museum in France.

The car will be offered for sale from £75,000 to £90,000. For the new owner, the car comes with full documentation on the car's history and restoration.


Next-generation Hyundai Santa Fe set to hit the road in August

                SEOUL: Hyundai will be bringing the fourth generation of the Santa Fe to the starting line by August 2018.

The Korean carmaker’s upgraded full-size SUV will premiere at the Geneva International Motor Show in March, and, unlike its predecessor, will only come in one variant.

With a length of 4.77 metres and wheelbase of 2.77 metres, the new Santa Fe falls between the shorter and longer models of the current generation. This same logic should also apply to the price, which has not yet been announced, but is expected to start at just over 42,000 dollars.

Featuring larger windows and broader visibility, the new generation also offers space for an optional third row of seating and, depending on the configuration, at least 625 litres of cargo space. New safety features include a lock on rear-passenger doors when a vehicle is approaching from behind.

According to Hyundai, four engines will be available under the bonnet. Buyers can choose from a 2.4-litre petrol engine with 185 horsepower, and three diesel engines: a 2.0-litre with either 150 hp or 182 hp, and a 2.2-litre with 197 hp.


All-new Honda Rebel 1100 for US

                TORRANCE: Honda announced today an all-new midsize cruiser model—the Rebel 1100—to be powered by a water-cooled, parallel-twin engine and offered for the 2021 model year.

Introducing new technology to the cruiser category, including Honda’s advanced automatic Dual Clutch Transmission (DCT)—the model was conceptualized and developed following a “Relax and Excite” design theme, and is notable for its ability to suit a variety of rider types and deliver wide-ranging riding experiences.

A forward-looking motorcycle, the adaptable Rebel 1100 features carefully developed geometry, sport-worthy components and a best-in-class power-to-weight ratio, all of which combine to make it capable not just of straight-line cruising, but also more dynamic riding, including brisk acceleration and exhilarating cornering.

The model has Honda’s renowned reliability and finish, along with a very competitive retail price.

The engine is a retuned version of the power plant from Honda’s popular Africa Twin adventure platform, with a 270-degree crankshaft design that gives a pulsing, rhythmic sound and feel at low engine speeds but runs smooth at higher rpm.

The DCT enables automatic shifting, or riders can select manual mode and change gears via handlebar-mounted buttons.

They can also switch between three different riding modes—Standard, Sport and Rain—each of which delivers a distinct riding experience, thanks to carefully balanced settings for power, Honda Selectable Torque Control (which incorporates Wheelie Control), engine braking and DCT.

The chassis features geometry that achieves both straight-line stability and neutral handling, and although seat height is low at 27.5 inches, the engine is compact enough to enable a 35-degree bank angle—much more than most cruisers and suitable for spirited cornering.

High-performance suspension components comprise a 43 mm conventional fork with a cartridge-type damper, and twin Showa shocks with piggyback reservoirs, while the front brake has a monobloc, four-piston, radial-mount caliper with a floating rotor. Curb weight is just 509 pounds (230kg) for the DCT version.

Facilitating the customization penchant for which the cruiser segment is known—and enhancing the model’s already-impressive versatility—Honda is offering a full line of accessories for the Rebel 1100, from minimalist to touring-focused.

“With the evolution of cruiser culture, today’s rider demands a motorcycle that expands on the capabilities that have traditionally been possible in the segment,” said Lee Edmunds, Senior Manager of Powersports Marketing for American Honda.

“The all-new Rebel 1100 fits the bill, providing cruiser customers with technologies—including DCT—and riding experiences that were previously unavailable in the category. It’s truly a motorcycle for the modern cruiser rider.”

The 2021 Honda Rebel 1100 is scheduled for release in January and will be available in Metallic Black and Bordeaux Red Metallic.

The MSRP is USD9,999 (RM40,890) and USD9,299 (RM38,028) for the manual-transmission version. ABS is standard.


There's more efficiency in the new Mercedes-Benz S 560 e

                FRANKFURT: Mercedes-Benz’s latest addition to the S‑Class family is a new-generation plug-in hybrid - the S 560 e.

The new variant S 560 e boasts a low fuel consumption of 2.1 litres per 100km and an all-electric range of around 50km.

The hybrid drive system in the S 560 e combines the 270kW (367hp) of the V6 petrol engine with a 90kW (122hp) electric motor.

The third-generation hybrid transmission evolved on the basis of the nine-speed 9G‑Tronic Plus automatic transmission.

The torque converter, clutch and electric motor are housed in the innovative hybrid drive unit and the compact design was achieved by integrating and connecting the separating clutch, torsional vibration damper and torque converter lock-up clutch within the rotor of the electric motor.

The torque converter with its powerful and highly efficient hydraulic circuit offers the customary smoothness when pulling away in hybrid mode.

Developed together with Bosch as part of the EM‑motive joint venture, the electric motor was specially designed for the 9G‑Tronic plug-in hybrid transmission.

The new, significantly enhanced power electronics have allowed further increases in output and torque.

The electric output of 90kW and 440Nm of torque contributes to the effortless driving sensation in the S‑Class.

Although the physical size of the battery remains unchanged, its capacity has been increased to 13.5kWh.

Evolving the cell chemistry from lithium-iron-phosphate (LiFePo) to lithium-nickel-manganese-cobalt (Li-NMC) allowed the cell capacity to be increased from 22 to 37Ah.

The highly efficient battery system in the S‑Class comes, for the first time, from the wholly owned Daimler subsidiary Deutsche ACCUMOTIVE.

The power electronics are now housed in the engine compartment.

Despite an increase of around 50% in its energy content, the dimensions of the new battery are smaller than those of its predecessor, resulting in the boot capacity being increased from 395 to 410 litres.


Volvo tries out wireless car charging in Sweden

                GOTHENBURG: While scientists argue over whether wireless car charging in urban areas is the most sustainable way forward, Volvo is starting field tests of the technology in the Swedish city of Gothenburg.

Using Volvo VC40 Recharge EVs operated by the Cabonline taxi company, the Swedish maker plans to evaluate the system over the next three years.

The taxis will be operated for 12 hours a day, driving around 100,000km a year.

The cars get their power when they park over a charging pad embedded in the road. The station below sends electricity through the pad, which is stored in the EV and used for propulsion.

To easily align the car with the charging pad, the cars use a 360-degree camera system. Charging speed will be more than 40 kW, which is almost four times faster than a wired 11 kW AC charger and almost as fast as a wired 50 kW DC fast charger.

Wireless inductive charging has been tried out before using city buses, notably in the German capital Berlin. A pilot project there was later abandoned after operator BVG said the buses from Polish maker Solaris proved unreliable, with leaves and other road dirt on the pads interrupting the flow of current.

The wireless charging test is one of many projects under the umbrella of Gothenburg's Green City Zone, under which designated areas within the city are used as live test beds for the development of sustainable technologies.

"Gothenburg Green City Zone lets us try exciting new technologies in a real environment and evaluate them over time for a potential future broader introduction," said Volvo's Head of Research and Development Mats Moberat.

"Testing new charging technologies together with selected partners is a good way to evaluate alternative charging options for our future cars."


Polestar teases high-tech, all-electric GT emblematic of brand's future

                GOTHENBURG: Polestar is previewing the Precept concept, a fully electric grand tourer, which will make its debut at the Geneva Motor Show next week.

The car also symbolises the brand's aspirations, technological ambitions and sustainability intentions.

Precept, a name "chosen to emphasise the vehicle's role in setting out Polestar's intent as the contemporary electric performance brand," prefaces the company's future vehicle portfolio and the models' upcoming designs, performance specs, technological smarts, and eco-friendliness.

Company CEO Thomas Ingenlath states that this "car is a response to the clear challenges our society and industry face. This is not a dream of a distant future, Polestar Precept previews future vehicles and shows how we will apply innovation to minimize our environmental impact."

The model created to encapsulate all these visions has been designed with aerodynamic efficiency and technological performance in mind; the 3.1-metre wheelbase is low and supports a sizable battery pack.

Behind the area where the front grille would normally be located is a collection of safety sensor and driver assistance technologies which are supported and complemented by a LIDAR pod located on the vehicle's glass roof.

Both side mirrors have been replaced by camera apparatus, and the rearview mirror has been replaced with a digital screen that displays feed from a camera mounted on the car's rear. The digitised cabin features a 15-inch centre touchscreen, a 12.5-inch driver display and a series of smart sensors that do everything from track a driver's alertness to increase the usability of the infotainment system while on the move.

On the inside, various components like the seatbacks, side panels and headrests are made from flax-based composites, recycled cork or reclaimed fishing nets to "balance modern high-tech luxury with reduced environmental impact."

The Polestar Precept concept will be on display at the Geneva Motor Show from March 5-15.


US zigs while the rest of the world zags on EV subsidies

                LONDON: Subsidies for electric vehicles are heading in very different directions in different parts of the world.

China, for example, has been phasing out direct-purchase support for EVs since 2018 and plans to fully end its subsidies next year.

The UK also has steadily reduced EV subsidies, which are now down to £1,500 (about RM8,200) for fully electric vehicles and have been eliminated for plug-in hybrids. Austria just announced plans to fully end subsidies for passenger EVs this year to shift support toward heavier vehicles.

The US could end up being an outlier.

President Joe Biden’s Build Back Better plan included a big boost for EV subsidies in the form of expanding the federal income tax credit available to consumers.

Under the plan, the cap on the number of vehicles an automaker can sell that are eligible for the $7,500 (RM31,327) tax credit would have been eliminated.

It also included a perk for vehicles made with union labor and a further bonus for EVs that use US-made batteries. The maximum tax credit available to an EV buyer under the plan would have been US$12,500 (RM52,212), among the highest in the world.

Build Back Better was sent back to the drawing board, but some form of a revised EV tax credit in the US looks likely.

An updated tax credit is expected to pass that includes eligibility for the automakers that had already hit the 200,000 vehicle cap, namely General Motors and Tesla.

Buyers of their vehicles no longer qualify for the tax credit. The list will soon include Toyota, followed by Nissan, Ford and others, as the US EV market continues to accelerate. An updated tax credit also will likely be provided to consumers at the point of purchase, rather than at the end of the year.

There is no perfect time or way to end a support program like this. If there’s a fixed amount of money available or a set end date, you invariably get surges and cliffs in demand as buyers pull forward purchase decisions to get their transaction in under the wire.

China’s EV sales have been notoriously cyclical over the last five years, with sales surging in December and then falling like a stone in January, partially due to changes in subsidies. That makes planning difficult for automakers, and also provides fodder for critics to disingenuously claim the declines prove there’s no real interest in the technology.

The US has managed to avoid some of these peaks and valleys because its tax credits have effectively phased out for different automakers at different times.

Tesla hit the cap in 2018, followed by GM months later, and BNEF expects Toyota to hit it next month. But the market can get distorted in other ways. Residual values of EVs in the US have generally been poor, with the exception of Tesla’s vehicles.

Some of that is just because the technology is improving so quickly. But high federal tax credits also can play a role because buyers are comparing used vehicle prices with those of new ones minus the tax credit.

To get the industry to really take off, a thriving used EV market is eventually needed, and that gets tricky if residual values are still not very good.

The main goal for policymakers who want this sort of support is to get EVs to the point of take-off, where adoption starts to accelerate on its own.

Based on a review of different EV markets, BNEF estimates that the inflection point on adoption generally hits around 8% to 10% of sales. For example, it took a decade of supportive policy in China for EVs to hit 8% of sales in the fourth quarter of 2020.

Then, only a year after that, the share of sales more than doubled to almost 20%. The trajectory in many European countries has been similar, although there are many local factors at play.

The US isn’t quite there yet, but the plug-in share of total vehicle sales hit 6.8% in the fourth quarter of last year and should comfortably exceed that level this year.

Once the take-off point has been crossed, it makes sense to assess whether some of the money would be better spent on other areas like public chargers, support for used vehicles, or heavy vehicles, as Austria is doing.

Charging infrastructure looks like a good area to focus on.

Biden’s US$7.5 billion plan for charging infrastructure is similar to the cost of just one year of the federal income tax credit, if all automakers were eligible. Many countries could effectively blanket their territories with charging infrastructure for the cost of two to three years of direct vehicle-purchase support.

EV purchase subsidies eventually will end. They get expensive as the market expands, and keeping them in place for too long risks public backlash. It’s worth thinking carefully about the best way to get there.


Mitsubishi Corp could take Renault stake in alliance rejig

                PARIS: Japan’s Mitsubishi Corp could potentially invest in Renault as part of scenarios being discussed to reinforce an alliance between the French carmaker, Nissan and Mitsubishi Motors, two sources familiar with the matter said.

French newspaper Les Echos reported earlier on Thursday, citing an unnamed executive familiar with the discussions and other unnamed sources, that Mitsubishi Corp, a conglomerate with a 20% holding in Mitsubishi Motors, could take a 10% stake in Renault.

It said this was one scenario of many under discussion, which could also include restructuring plans and fresh cost savings schemes.

Nothing was yet settled and any decision might not be taken until May, when the alliance is due to present fresh measures to reboot joint operations and deliver on cost cuts, one of the sources said. Renault declined to comment.

Mitsubishi Motors counts Japan’s Nissan as its biggest shareholder, though ties run deeper between the other two members of the alliance. Nissan owns 15% of Renault, while the French carmaker in turn has 43% of Nissan.

Relations between Renault and Nissan took a turn for the worse following the arrest in Japan of former alliance supremo Carlos Ghosn in late 2018. He has since fled to Lebanon, from where he has stepped up his defence against accusations of financial misconduct. He denies any wrongdoing.

Renault and Nissan have since cleared the decks of many managers linked to the Ghosn era, but momentum for joint projects ground to a halt.

They have both vowed to try and re-energise the alliance, as carmakers face tumbling demand in emerging markets and costly programs to build new models, including in less polluting cars.

The coronavirus crisis has compounded problems for the sector as production grinds to a halt.


Toyota says it goes the extra mile for top-notch customer experience

                SHAH ALAM: Malaysians can expect a reimagining of what car ownership should be about when walking into any Toyota showroom to experience the quality of thought behind the carmaker going the extra mile to provide the best financial insurance packages, quality service, Toyota 24Seven roadside assist and top-notch servicing.

In a statement, UMW Toyota Motor said owning a car goes beyond just the build quality and reliability that a carmaker is known for.

Owning a Toyota is about the thrill and joy of moving together, supported by the brands promise of going the extra mile to give customers excellent sales and after sales services for a smoother and more peaceful drive.

UMW Toyota Motor president K. Ravindran said the company would strive to go the extra mile to give every Toyota car owner the best.

"This is encapsulated in our strong sales and after sales offerings for Toyota owners to enjoy the entire journey of owning a car from the moment, they walk into one of our showrooms," he said.

Beyond having a reputation for developing dependable cars, UMW Toyota Motor's range of sales and after sales value-added-services offer a host of benefits that have been curated to provide consumers with an exceptional level of service.

A Toyota Fit for Every Need and Lifestyle
UMW Toyota Motor has gone further to bring consumers more financing options to fit a variety of needs and lifestyles coupled with insurance packages and thoughtful extras to keep everyone moving safely.

During the ownership journey, Toyota car owners have a convenient way to keep their cars running in peak condition with the Toyota Service Savers that comes packed with additional value for greater savings and peace of mind when it comes to maintenance.

Rewarding, Reliable and Refreshing Ownership
When it comes to rewarding car owners, Toyota goes the extra mile with the Loyal-T programme to reward owners even more for enjoying the thrill of the drive.

Toyota also offers owners reliability in more ways than one. Through the Toyota VTS, owners are able to remain connected to their cars with the help of reliable smart technology.

This same reliability is also reflected in the Toyota 24Seven roadside service which promises to keep drivers safe and back on the road in no time.

Owners looking for a refreshed transformation can rely on Toyota which offers state-of-the-art facilities to help restore or enhance the style and look of their Toyota’s body and paint for a fresh new appeal.

Quality Service, Bar None
Toyota Care Plus is an assurance to owners that Toyota will go the extra mile with all the facilities needed to make servicing easy and convenient for complete peace of mind.

Meanwhile, Maxcheck uses the highest standards that are guaranteed to keep cars running smoothly and safely.

Owners are always assured that Toyota goes the extra mile to ensure quality and reliability by only using genuine parts stringently constructed and tested for the quality, reliability and durability that has come to be expected of Toyota, giving Malaysians more reasons to own one.

Visit the nearest Toyota showroom today and tomorrow for a test drive and stand a chance to receive exclusive merchandise at the same time.

For details, visit Toyota.com.my or call the Toyota freephone line 1-800-8-TOYOTA (869682).