US opens probe into 30 million vehicles over air bag inflators

                WASHINGTON: US auto safety investigators have opened a new probe into 30 million vehicles built by nearly two dozen automakers with potentially defective Takata air bag inflators, a government document seen by Reuters on Sunday showed.

The National Highway Traffic Safety Administration (NHTSA) on Friday opened an engineering analysis into an estimated 30 million US vehicles from the 2001 through 2019 model years.

Automakers were alerted to the investigation, which is not yet public.

The new investigation includes vehicles assembled by Honda Motor Co, Ford Motor Co, Toyota Motor Corp, General Motors Co, Nissan Motor, Subaru, Tesla, Ferrari NV , Nissan Motor, Mazda, Daimler AG, BMW, Chrysler (now part of Stellantis NV, Porsche Cars, Jaguar Land Rover (owned by Tata Motors) and others.

The automakers on Sunday either declined to comment before NHTSA's expected public announcement on Monday, or did not immediately respond to requests for comment. NHTSA declined to comment.

The 30 million vehicles include both vehicles that had the inflators installed when they were manufactured as well as some inflators that were used in prior recall repairs, NHTSA said in the document.

Over the last decade, more than 67 million Takata air bag inflators have been recalled in the United States - and more than 100 million worldwide -- in the biggest auto safety callback in history because inflators can send deadly metal fragments flying in rare instances.

There have been at least 28 deaths worldwide, including 19 in the United States tied to faulty Takata inflators and more than 400 injuries.

The 30 million vehicles that are part of the new investigation have inflators with a "desiccant" or drying agent. According to the document, NHTSA said there have been no reported ruptures of vehicles on the roads with air bag inflators with the drying agent.

"While no present safety risk has been identified, further work is needed to evaluate the future risk of non-recalled desiccated inflators," NHTSA said in opening its engineering analysis seen by Reuters. "Further study is needed to assess the long-term safety of desiccated inflators."

NHTSA has said the cause of the inflator explosions tied to the recall of 67 million inflators that can emit deadly fragments is propellant breaking down after long-term exposure to high temperature fluctuations and humidity. The agency has required all similar Takata without a drying agent to be recalled.

In the United States, 16 deaths in Honda vehicles have been reported, two in Ford vehicles and one in a BMW, while 9 other Honda deaths occurred in Malaysia, Brazil and Mexico.

NHTSA did not immediately release a breakdown of how many vehicles per manufacturer are covered by the probe.

The safety agency said the investigation "will require extensive information on Takata production processes and surveys of inflators in the field."

Earlier this year, NHTSA said of the 67 million recalled inflators, approximately 50 million have been repaired or are otherwise accounted for.


James Bond's Aston Martin DB5 lives on as a gadget-packed replica

                LONDON: Secret agent James Bond has driven many cars in his career but none can capture the elegance and timeless sophistication of the silver Aston Martin DB5 that featured in the 1964 film "Goldfinger."

Bond has used models from Lotus, BMW, Toyota and even a humble Citroen CV, but they all pale into insignificance against this British sports car with its famous ejector seat, machine guns and revolving number plates.

The car can be seen in numerous repeat showings of the James Bond movies and even today, when a regular Aston Martin DB5 crops up on a street, people always associate it with author Ian Fleming's genial fictional figure.

The DB5 now has a reprise role in the new, 25th James Bond film "No Time to Die," the release of which has been postponed because of the coronavirus pandemic.

Actor Daniel Craig drives one just like the car seen in "Goldfinger," but this one is a replica, one of a limited 25 Goldfinger Continuation cars being constructed at the Aston Martin factory in Newport Pagnell in England. Each one costs upwards of 3.5 million dollars to buy.

Th replicas feature a range of other "working" Goldfinger gadgets, including battering rams front and rear and a bullet-resistant rear shield. Of course, the guns are simulated ones that don't actually shoot bullets.

Each car takes some 4,500 hours to assemble, says Paul Spires, who heads the works where the cars are built. "We are making perhaps some of the most desirable toys ever built for 25 very lucky buyers worldwide," he says.

The reborn DB5 looks just like the original, and drives the same too. The company has not attempted to modernize the technology.

Since plans for the 4-litre straight-six engine had gone astray, it was scanned and recreated using computer tomography. The heavy rack and pinion steering is without power assistance, and there are no electric windows or driver aids.

The engine is still mated to a five-speed ZF gearbox, and owners have 290 brake horsepower to play with. With a mechanical limit slip differential to combat wheelspin, the rear-wheel drive Aston can bound from zero to 100kph in 7.1 seconds. Top speed in 229kph.

The car was created in association with the producers of the James Bond films, EON Productions, and the gadgets make it must-have for those lucky enough to afford the exorbitant asking price.

Inside there's a simulated radar tracking map, a telephone in the driver's door and an under-seat weapons storage tray. The ejector seat is a dummy version, although the car be supplied with a removable passenger seat roof panel. Instead of the original oil slick delivery system designed to send pursuers skidding off the road, the replica sprays soapy water onto the highway.

Spires admits that all these fancy features mean the car cannot be driven legally on public roads, but deep-pocketed owners are not put off. "You won't get hold of a Bond car for less than this," says Spires. Regular DB5s cost a lot less, but "the last time one of the original film cars came up for auction, it cost more than twice as much to buy."

The high price has one advantage. Owners can do what they like with the car without having to ensure the admonishment of Q, the head of the bespoke secret weapons division, who issues Bond with the DB5 and tells him: "Try and bring it back in one piece."


Report says BMW and Audi want to buy McLaren Automotive

                BERLIN: Volkswagen's Audi and BMW are interested in buying British luxury sportscar maker McLaren Automotive, German autos publication Automobilwoche reported on Sunday, without specifying its sources.

The first talks between BMW and Bahrain sovereign wealth fund Mumtalakat, which owns 42% of McLaren, are to take place at the beginning of December, the report said.

Audi is also interested in the Formula 1 division of the company, it said.

BMW and Audi were not immediately available for comment.


Ford has designed a special pick-up truck emoji

                DETROIT: Ford has petitioned the Unicode Consortium in order to have its special pick-up truck emoji included in the next wave of emojis, set for early 2020.

We've had police cruisers, sedans, and race cars — and soon, we might be able to add pick-up trucks to the list of automotive-themed emoji. That is, if Ford has its way.

On July 17, Ford took advantage of International Emoji Day to announce its design via a fun video extolling the virtues of its latest creation.

Should Unicode approve the inclusion of the emoji in its next release, slated for early 2020, it should be made available on all platforms for the texting pleasure of pick-up truck enthusiasts worldwide.


Skoda patents world’s first illuminated smart seat belt buckle

                LONDON: Skoda is aiming to eliminate the hassle of trying to belt up at night with the innovation of illuminated smart seat belt buckles.

The Czech firm has been granted a worldwide patent for the ingenious new system that has been under development at the brand’s Simply Clever labs.

The new Skoda smart buckles feature a clear transparent button in place of the traditional red eject button. The new button features a pair of multicolour RGB LEDs that operate in two modes.

In standard mode with nobody in the seat, the LEDs glow white to show the passenger where the buckle is located at night. A Skoda-style crystalline pattern on the clear plastic button spreads the light to make the whole button glow. The buckles can also be programmed to have an animated welcome sequence to make them even more noticeable in dark environments.

When a passenger sits in the seat, a weight sensor in the seat base recognises the presence of a person and the LED changes to red - indicating that the occupant should put their seat belt on.

This is a particularly useful feature for parents who can see immediately if their children have either forgotten to fasten their belt or have not engaged the buckle correctly. Once the buckle is engaged, the LED changes to green to signal a successful engagement and then back to white.

The smart illuminated seat belt buckle is just one of many features devised, designed and engineered in-house at Skoda. It says every year it files numerous patent applications for ideas and systems to make life easier, safer and more enjoyable for owners and drivers.

In 2019, Skoda Auto filed 94 individual patent applications – more than any other company in the Czech Republic. The number of patent applications has been continuously increasing for years, with many already integrated into the current range and many more set to appear in future models.

The list of protected innovations also includes carpet mats made of hollow fibre fabric, which are particularly easy to clean and on which dirt is hardly visible. Another patented Skoda invention is a flexible cargo snake that allows boxes, crates and other objects to be positioned more securely in the boot alongside luggage.

The brand has also successfully patented a production line camera system that can precisely align parts of the car body before welding. The system allows the car body to be optimally positioned right from the start, making the welding process faster and more accurate. Four cameras determine the position of the car body and allow the path of the welding robots to be quickly adjusted as they operate.


Polestar 2 to get online reveal

                GOTHENBURG: The Polestar 2 will make its global debut on Feb 27 at 13:00 CET (8pm in Malaysia).

The online reveal will be broadcast live from Polestar’s global headquarters here in Sweden. The digital format significantly reduces the carbon footprint of the event and supports one of the key benefits of electromobility - to improve air quality.

The reveal will be streamed live at Polestar.com as well as on Polestar’s YouTube channel via the link in this post.

One week after the online reveal, the Polestar 2 will make its first public appearance at the 2019 Geneva Motor Show.


Porsche Taycan sets new Nürburgring record

                STUTTGART: Porsche development driver Lars Kern took just seven minutes and 33 seconds to complete a lap in the Taycan Turbo S, thus setting a new record for a series-production electric car.

The car was equipped with the new performance kit and Porsche Dynamic Chassis Control (PDCC) and – aside from the required roll cage and racing seats – was an entirely standard production vehicle.

It weighed the same as the series production car.

A notary was on hand to verify the new record time on the 20.8-kilometre circuit in Germany’s Eifel region, while TÜV Rheinland confirmed that the record-breaking road car was a standard production model.

The performance kit includes 21-inch RS-Spyder-design wheels with road-approved Pirelli P Zero Corsa sports tyres that are now available for the Taycan.

Their tyre compound is similar to that of racing tyres.

Another element of the performance kit is a software update to the Porsche 4D Chassis Control so that it works in harmony with the sports tyres.

The system analyses and synchronises all the chassis systems of the Taycan in real time.

“In the past, only thoroughbred super sports cars got into the 7:33 range,” said Kern.

“With the new performance kit I was able to push even harder, and the car was even more precise and agile to boot.”

The performance kit is offered through Porsche Tequipment.

It is currently only available in Germany and only for the 2023 model year Taycan Turbo S sports sedan.

Production of these cars started in late July 2022, while the performance kit itself is expected to be available from the end of the year.

The plan is for the retrofit to be carried out after initial delivery, in the Porsche workshops in Zuffenhausen.

Transport to and from the factory is included, as is the individual vehicle approval and registration of the Taycan.

The sports tyres are mainly designed for driving on the track. Buyers can therefore switch back to standard road tyres at any time.

It is not necessary to restore the original chassis software when doing this.

“We’re delighted that the Nürburgring record for electric cars is back in Porsche hands,” says Kevin Giek, Vice President Model Line Taycan. “This lap time not only shows how much potential lies in our new performance kit, but also confirms once again the sports car genes of the Taycan.”

The Turbo S produces 460kW/625PS and has a range of 440km-468km (WLTP).

With Launch Control active, the car maxes out at 560 kW/761PS) from standstill.


Porsche Taycan Experience: Electric rush

                Call it good timing or luck.

Porsche in Malaysia managed to show off the Taycan and its capabilities in Sepang before the country slipped back into the third movement control order.

For the local motoring media, it was also the first time they had laid hands on Porsche’s first modern all-electric sports car in a track setting since its arrival last September.

All four variants were there — the base Taycan, 4S, Turbo and Turbo S.

A few weeks before the April track day, we had the chance to try out a baby blue 4S on public roads and were impressed with its agility, traction and handling.

Sure, we have all heard about the characteristic silence, instant torque and rapid acceleration that electric cars can achieve. But it takes driving them to truly appreciate their breath of talent — and the fact they are a signpost to the future of mobility.

The 5-seat Taycan is not just any regular electric car; it’s an electric sports car, and so has to live up to the pressure of “repeatable performance.” Right up until the juice runs out.

Prices start from RM585,000 for the base Taycan and almost double to RM1.15mil for the range-topping Turbo S. In between are the RM700,000 4S and RM964,000 Turbo.

As you move up the hierarchy, the Taycan gets more powerful, faster and better equipped, with real-world range reported at over 400km to 460km.

Range is affected by driving behaviour, in-car settings and ambient temperature.

Only the base Taycan is rear-wheel driven; the rest are dual motored for all-wheel drive.

The rear motor is paired with a two-speed transmission to enable improved acceleration and range.

Also the Taycan and 4S have a 79.2kWh Li-ion battery pack that can be upgraded to the 93.4-kWh pack called Performance Battery Plus (PBP) but that is a sub-RM40K option.

The Turbo and Turbo S come standard with the 93.4-kWh pack.

As for powertrain, the Taycan/4S/Turbo/Turbo S quartet have up to 402hp/523hp/670hp/750hp respectively with 0-100kph sprint times of 5.4s/4.0s/3.2s/2.8s.

The Taycan get 469hp and 4S 563hp if they are upgraded with PBP but sprint times are unchanged. Even with PBP, the output of the Taycan and 4S still lag their higher-spec siblings because they are fitted with a less powerful electric motor.

How the componentry were laid out were shown with a stripped-down life-size Taycan brought in from Germany.

The design of the PBP showed the main battery taking up half the floor space in front and a smaller add-on battery pack aft of the rear-passenger footwell.

The PBP allows the car to be charged with direct current, thus speeding up the process significantly. The Taycan can gain a 100km range in just over five minutes of charging.

The charging time from 5% to 80% is 22.5 minutes in ideal conditions at 800-volt high-power charging stations, with a maximum charging capacity of 270kW.

What stuck in the mind was the drag race and the three laps afforded each person.

The former tested straight-line performance while the circuit drive gave a lay of the car’s driving dynamics.

In the drag race, a 4S was pitted against a Turbo.

A Porsche spokesman said the Turbo S was simply “too brutal” for the exercise.

Frankly, the 4S and Turbo are already very potent machines. Over a stretch of some 200 metres, the duo were raced in Normal, Sport and Sport Plus and finally Launch Control modes.

Typical of electric cars, the torque was instant and pleasurable with incremental pace between Sport and Sport Plus in both cars.

With the Turbo having the power advantage, it was to be expected that it would outpace the 4S at every turn.

Come Launch Control time, both cars evoked a pinned-in-the-seat sensation and left this writer feeling light-headed from the volcanic take-off and hedonistic speed; the feeling was much more intense in the Turbo.

Lapping the Sepang circuit in the 4S proved that the switch to electric propulsion has not dented Porsche’s reputation as a purveyor of fine sports cars.

The Taycan has a lower centre of gravity than a 911. With a drag coefficient of 0.22, it is the most aerodynamic car from Porsche and that helps in going fast despite the heavy battery in the floor.
The 4S drives really well. Steering is sharp with good feedback.

It’s supercar quick despite its hefty proportions.

It takes a lot to get the tyres to lose adhesion, all the better to swing fast into corners almost flat with laudable mid-corner balance.

As the battery charge dipped below 50%, the 4S didn’t slack off in performance, still coming on strong as it set a blistering pace on the next lap.

To add emotion to the drive, Porsche has amplified the whine of the motors during acceleration but it can be switched off if needed.

The Taycan shows a working model of an automobile that can be green yet appeal to even the hardcore car enthusiasts albeit at a stiff price.

 The entry-level Taycan is the only variant that's rear-wheel driven.


Auto sector not out of the woods yet despite a projected robust Q4

                PETALING JAYA: Despite an expected strong total industry volume (TIV) recovery in the fourth quarter of this year for the automotive sector, this is expected to fall by the middle of next year due mostly to the ongoing global microchip issue.

Hong Leong Investment Bank’s (HLIB) research arm said it expects TIV to drop post-sales and service tax (SST) exemption expiry by the middle of next year, and therefore, was maintaining its “neutral” call on the sector.

“Nevertheless, we advise investors to accumulate MBM Resources Bhd and DRB-Hicom Bhd as we expect national original equipment manufacturers (OEMs) to triumph in the longer-term with potential growth from new export markets.

“We also like Sime Darby Bhd for its strong balance sheet and leverage to the China market rebound,” it said in a report.

Citing data from the Malaysian Automotive Association (MAA), it said there was continued month-on-month recovery of 43.4% to 63,500 units in October TIV as industry players ramped up production since mid-August to clear the current high order backlog.

“On a year-on-year basis, it was a growth of 10%.

“We expect TIV to sustain at this high level until year-end.

“This is on OEMs maintaining their production level to meet the current order backlogs and the expected year-end sales.

“The extension of the SST exemptions to June 30, 2022 has provided the industry some leeway to better plan their production lines over a longer period as demand remains robust while supply is being constrained by the ongoing global microchip supply shortage in the near-term,” it said.

The research outfit added that it had revised its TIV forecast to 500,000 units from 480,000 for 2021.

Meanwhile, RHB Research in its report said downside risks to the sector’s recovery included persistent shortages of key components and delays in new model launches.

“With a mutating Covid-19 and rising cases globally, we cannot rule out further rolling lockdowns ahead still.

“This, we believe, will trigger downside risks,” the research house said.

It added that other downside risks included the tightening of bank approvals for car loans and a sharp weakening of the ringgit.

Similar to HLIB, it also has a “neutral” call on the automotive sector.

Its financial year 2022 TIV forecast of 540,000 units implies a 15% year-on-year growth, accounting for the SST extension to June 2022.

This is to be followed by a gestation period after the long SST exemption period of 24 months that started in July 2020.


Lexus hints a new second 'flagship' could be large SUV

                TRAVERSE CITY (Michigan): Toyota's Lexus brand is planning to launch a second top-of-the-line "flagship" model to accompany a new generation of its LS sedan, the head of the brand's US operations said on Wednesday.

"We need a flagship. It doesn't have to be a sedan," Jeff Bracken, Lexus division general manager, said on the sidelines of an industry conference.

Bracken noted the success of luxury sport utility vehicles such as Tata Motors' Land Rover brand, the Cadillac Escalade from General Motors Coand large SUVs coming from the German luxury automakers.

Luxury SUV sales have grown more quickly than sales of large luxury sedans, which have for decades anchored the top ends of the model lines of luxury auto brands. The SUV surge has prompted even luxury brands with no history of selling SUVs, such as BMW's Rolls-Royce, to develop models to compete in the super luxury SUV segment.

US sales have been supported by a prolonged drop in gasoline prices. Average prices at the pump on Tuesday were US$2.63, down 25 percent from a year ago, according to the AAA travel group.

"In addition to the LS (a large sedan), there could be another flagship in our lineup," Bracken said. "We'll define what it is in January."

Lexus also is looking to strengthen its SUV lineup by offering a version of the midsize RX SUV with a third row seat. An RX with room for seven or eight passengers is the No. 1 request from US Lexus dealers, Bracken said. A new RX is due this fall but will not have a third row seat.

"We don't want to wait for a next generation" to add the extra seating row, Bracken said.


One-third of Americans would consider EV purchase, poll shows

                WASHINGTON: Just over one-third of Americans would consider buying an electric vehicle for their next model, a new Reuters/Ipsos poll found.

The seven-day poll completed on Monday found 34% of all respondents would consider an EV, while 31% said no. Among Democrats 50% said they would consider an EV, while 26% of Republicans and 27% of independents said they would consider.

There are now more than 80 EV models for sale in the United States. EVs represented nearly 6% of all U.S. sales in 2022, with EV sales up by more than 60% last year.

President Joe Biden wants 50% of all new vehicles sold in 2030 to be EV or plug-in hybrid models. Tesla Inc is the leading EV maker in the US, but other top-selling models include Ford Motor Co's Mustang Mach-E SUV, General Motors Co's Chevrolet Bolt and Hyundai Motor's Ioniq 5.

The poll found 56% of respondents would be willing to pay no more than US$49,999 for an EV. In August, the Biden administration won a significant expansion of US$7,500 electric vehicle tax credits and other battery and EV manufacturing incentives to shift the industry towards electric models but EVs are still often significantly above US$50,000.

The poll also found that 35% wanted an EV that offered 800km or more of electric driving range per full charge, a distance few EVs offer today. Another 37% wanted a minimum of 480km.

The world's top automakers are spending hundreds of billions of dollars to develop EVs, along with the batteries and raw materials to support that production as the Biden administration moves to adopt new regulations to speed the transition away from gasoline-powered vehicles.

In the coming weeks, the US Environmental Protection Agency plans to propose new, more stringent vehicle emissions rules through at least the 2030 model year.

In December 2021, the EPA finalized new light-duty tailpipe emissions requirements through the 2026 model year that reversed then-President Donald Trump's rollback of car pollution cuts.

One big question is whether the new EPA rules will be consistent with California’s aggressive efforts to ramp up zero- emission vehicles and phase out new gasoline-powered vehicles by 2035.

California Air Resources Board Executive Officer Steven Cliff told Reuters in December the federal government should “look at stringency that’s equivalent to our rules ... We’re 68% zero emissions in 2030 so modeling that and looking at that as an option for 2030 is absolutely critical."

Biden has not endorsed California's plan to phase out new gas-powered light-duty vehicles by 2035.

The Reuters/Ipsos poll, conducted online, surveyed 4,410 people nationwide and had a credibility interval of about 2 to 3 percentage points in either direction.


MINI Concept Aceman gets 'Pokémon Mode' at 2022 gamescom

                MUNICH/COLOGNE: MINI will be the main sponsor at this year's gamescom in Cologne from Aug 24-28. It's the first sponsor from the automotive sector of the world's largest games event.

MINI is using the opportunity to showcase the MINI Concept Aceman featuring an additional exclusive vehicle mode known as Pokémon Mode"

During gamescom, Pikachu, the iconic character from Pokémon, takes over the OLED display as the new central instrument when operating the Experience Mode toggle.

Through advanced projection technology, the animation also extends across the dashboard, front doors and apron projection.

In the animated loop, the Poké Ball first appears in the OLED display and moves, then opens in a blue glow that moves impressively from the OLED display via the dashboard and the light bar of the doors as well as the apron projection through the vehicle interior.

In another loop, Pikachu appears in the display at the start. The famous electric Pokémon launches a bright yellow lightning attack that also travels through the vehicle via the interior doors as well as the apron projection.

The design team behind the one-off MINI Concept Aceman for gamescon have also created an exclusive MINI Art Toy for the event. Like the concept car, the MINI Art Toy embodies agility and a self-confident presence.

The X-O symbols, for example, are reminiscent of the interior design as well as the playfulness of the MINI Concept Aceman and ties in with gamescom and the huge gaming scene.

In addition to the MINI Concept Aceman, the concept car will also be presented as an Action Pack at gamescom 2022.

In the clear box packaging typical for action figures and with special design features, like a Poké Ball in the centre of the wheel rim, the unique MINI Concept Aceman Action Pack becomes the ultimate collectible for MINI fans and gaming enthusiasts.

Pokémon is one of the most successful entertainment franchise which first launched in 1996 in Japan, with the release of Pokémon Red and Pokémon Green.

The video games capture the wonder of discovering, collecting and training Pokémon when taking on the role as a Pokémon Trainer.

Parallel to the premiere of the MINI Concept Aceman at gamescom, the company is launching the MINIverse and creating a digital world in which the MINI community can playfully discover the new concept car.

The convention will gather gaming fans from all over the world on 220,000 square metres of exhibition space, around 1,100 exhibitors and hundreds of thousands of gaming fans from all over the world.


Indonesia to woo Tesla investment in push to become battery superpower

Jokowi is pushing hard for Tesla to invest in sustainable battery production in Indonesia, which has abundant nickel reserves. — Reuters
JAKARTA: Indonesian president Joko Widodo said he will send a high-level team next week to meet with top executives of US automaker Tesla as the Southeast Asian country aims to become the world’s biggest producer of electric vehicle batteries.

The president, known by his popular name Jokowi, told Reuters in an interview today the trip will be part of Indonesia’s promotion of its new, so-called “Omnibus” Job Creation law, which simplifies doing business in Indonesia.

“Next week, we will send a large team to America and Japan, to promote the Omnibus,” Jokowi said.

The trip comes after Jokowi congratulated US president-elect Joe Biden on his win. The Indonesian leader said he hoped a Biden administration would promote “stability” and “world peace”.

Led by Co-ordinating Minister of Maritime Affairs and Investment Luhut Pandjaitan, the team is set to meet with Tesla executives, he said.

“It’s very important because we have a great plan to make Indonesia the biggest producer of lithium batteries and we have the biggest nickel (reserves),” Jokowi said.

In a separate interview, Luhut said he would also hold meetings with the World Bank and US fund managers to talk about the Omnibus law and Indonesia’s environmental projects.

Luhut declined to comment specifically on the planned meeting with Tesla, but said that “there is a really good chance” that companies will want to invest in Indonesian nickel processing to cut costs.

Tesla’s chief executive Elon Musk has said he is planning to offer a “giant contract for a long period of time” so long as the nickel is mined “efficiently and in an environmentally sensitive way”.

Indonesia’s new Job Creation law, which harmonises 79 existing laws, has been met with criticism for relaxing environmental standards.

Luhut said Indonesia could make the supply chain of batteries environmentally friendly in seven to eight years by powering smelters with renewable energy sources, so they could sell green batteries for cars in the European market by 2030.

Jokowi has repeatedly said the Job Creation law is vital to cutting red tape, spurring investment and boosting labour market competitiveness.

Despite protests to the law from unions, students and environmentalists, the legislation has been positively received by the market.

Indonesia has struggled to attract foreign investment at the same pace as some of its neighbours.

The president said the new law would be one of the main catalysts to boost economic growth next year.

Southeast Asia’s largest economy suffered its first recession in over two decades this year due to the fallout of the coronavirus pandemic, with millions losing their jobs.

Nevertheless, Jokowi said Indonesia has gone past a turning point and is on a “positive” and “encouraging” trend. He said he was hopeful gross domestic product would expand next year with the aid of mass vaccination.


Police targeting 'mat rempits' during CNY season

                SUBANG JAYA: Bukit Aman will focus on catching illegal motorcycle racers or "mat rempits" in the latest edition of Ops Selamat, says Datuk Mazlan Mansor.

The Deputy Inspector-General of Police said mat rempits have been the most notorious public nuisance in recent years, and police will come down hard on them.

"We have received numerous complaints on illegal racing on regular roads.

"The mat rempits have greatly inconvenienced other road users. It is time for them to be curbed," he told a press conference today after launching Ops Selamat in conjunction with the coming Lunar New Year celebrations at Persada PLUS, which is PLUS Malaysia's headquarters in Petaling Jaya.

Several locations nationwide have been identified as hotspots for mat rempits, he added.

"The Traffic Investigation and Enforcement Department has already prepared their strategy to successfully nab these mat rempits.

READ MORE: Traffic summonses at 50% discount to prod offenders to pay up

"This is a clear warning to all mat rempits... we are coming for you," said Mazlan.

Ops Selamat will be held from Jan 18 to Feb 1 to check on road accidents and prevent house break-ins, he added.

The Traffic Investigation and Enforcement Department, according to Mazlan, will focus on six main offences during the operation namely speeding, driving in the emergency lane, overtaking on the double line, cutting queue, running the red light and using mobile phones while driving.

"We will not compromise with any road users who commit such offences.

"A maximum RM300 fine will be imposed on offenders."

Asked whether action would be taken against those with no child seats, Mazlan said the government had already imposed a six-month grace period on the ruling.

"Be it as it may, we hope the public can install the car seats even before the deadline. It is for the safety of their children."

On traffic offenders, Mazlan said the attitude of  these people was deplorable.

"There is no excuse for breaking the law. The offenders have to face the consequences as we will not compromise this time. It is total enforcement."

On the 50% discount offer on traffic summonses via e-payment, Mazlan said the department hoped to clear a large number of backlog summonses.

"We are confident the platforms (MyEG and Rilex.com) will be able to accommodate the surge in usage during the promotion period from Jan 18-22," he added.


Audi starts serial production of electric motors at Hungarian plant

                GYOR (Hungary: Audi has launched serial production of electric motors at its Hungarian plant, the luxury carmaker said in a statement today.

Audi’s Hungarian unit said the motors will be made for its all-electric e-tron models. Initial daily capacity will be about 400 motors at the Hungarian plant, which can be increased gradually, it said.

Audi, which also makes cars in Hungary, manufactured a total of more than 1.965 million various engines at its Hungarian plant in the city of Gyor last year, and is one of Hungary’s most important exporters.

 The Audi plant in Gyor. The e-tron prototype.


VW and Toyota delay US production restart, citing supplier concerns

                WASHINGTON: Volkswagen AG and Toyota Motor Corp said on Wednesday they will delay restarting US production amid the coronavirus pandemic and concerns about the automotive supply network.

VW said it is indefinitely delaying the resumption of production at its Tennessee assembly plant that had been set to restart on May 3.

Toyota said it will delay the resumption of North American manufacturing operations to the week of May 11 from the week of May 4 after an “extensive review with our supplier and logistics network.”

The German automaker in a statement said that before it sets a new date it “will weigh the readiness of the supplier base, as well as market demand and the status of the Covid-19 outbreak.” VW’s US production has been suspended since March 21.

Automakers had hoped to begin restarting production in early May but face hurdles including orders in key states like Michigan that limit non-essential business operations.

Germany’s BMW AG said Wednesday it plans to restart work at its Spartanburg, South Carolina, plant on Monday at about half the factory’s capacity and then “carefully ramp up production.”

Detroit’s Big Three automakers have been in regular talks with the United Auto Workers (UAW) union on the conditions needed to resume production, but the companies appear unlikely to resume US production before May 18 at the earliest.

UAW spokesman Brian Rothenberg said the union continues to “have discussions about key health and safety issues and science that need to be in place for a restart.”

No. 2 US automaker Ford Motor Co said on Wednesday it still had no date to restart work at its North American plants, but scheduled a Thursday conference call to explain how it will protect its workers.

Ohio on Monday outlined its plan, which included reopening the construction and manufacturing sectors on May 4.

Michigan governor Gretchen Whitmer has not set a reopening date for manufacturing yet, and the UAW, which represents many hourly auto workers in Michigan and other states, has said early May is “too soon and too risky” to reopen.

On Wednesday, Whitmer said she is allowing the state’s construction sector to reopen on May 7, and emphasised worker safety was paramount.

“Workplace safety cannot be an afterthought,” she said at a press conference. “It’s an essential part of how we achieve a strong, vibrant economy.”

Kristin Dziczek, vice president, Industry, Labor & Economics at the Center for Automotive Research in Michigan, said to restart production there needs to be a tremendous orchestration and “synchronisation” across many different regions with different challenges like Covid-19 and different state orders on what is essential manufacturing.


Refreshed Lexus LS with improved driving assist debuts

                TOKYO: Lexus has unveiled the refreshed LS, and announced that sales in Japan will begin in late 2020.

As the flagship sedan of the Lexus brand, the LS has cumulatively sold 870 thousand units, gaining popularity over a span of more than 30 years and in more than 90 countries and regions.

In the latest update, engineers focused on elevating the sedan's levels of comfort, quietness and overall refinement.

The new LS features Lexus Teammate, which is the latest in advanced driving assist technologies. To achieve driving assist that provides occupants with a sense of security, Lexus also add on AI technologies for predicting and responding to various driving situations.

Lexus Teammate can seamlessly incorporate future software updates that allow functions to be continually added and performance to be continually enhanced.

The digital rearview mirror features a larger high-resolution display for improved visibility of the area behind the vehicle.

As with most refresh, a new colour option is offered namely Gin-ei Luster, a silvery shade, which Lexus says "achieves deep shadows and robust highlights."

A newly developed adaptive variable suspension solenoid reduces damping force, while the vertical spring rate (stiffness) of the run-flat tyres and the rigidity of the stabiliser bars provide optimised performance.

Vibration absorption and soft seating contribute to even more enhanced comfort.

In the LS 500h hybrid version of the new LS, increased battery assist during acceleration at often-used driving speeds so as to contribute to strain-free acceleration. Additionally, quietness has been improved by lowering maximum engine revolutions during departure acceleration.

Both the hybrid version and the gasoline-engine version of the new LS have undergone Active Noise Control and Engine Sound Enhancement tuning for improved quietness.

The interior has been co-ordinated to complement the exterior. Ornamentation is available for the first time. Lexus has added a touchscreen for better operability.

The multimedia system is compatible with SmartDeviceLinkTM, Apple CarPlay, and Android Auto. Convenience is enhanced via the ability to control the display screen and audio functions by using an iPhone and Android smartphone linked to the 12.3-inch touch-operated wide display.

Other LS highlights:

> Seat coverings feature deeper stitch points, and underlying seat pads feature low-resilience urethane. Vibration absorption and soft seating contribute to even more enhanced comfort.

> In the LS 500h hybrid version of the new LS, increased battery assist during acceleration at often-used driving speeds so as to contribute to strain-free acceleration. Additionally, quietness has been improved by lowering maximum engine revolutions during departure acceleration.

> The front bumper corner has a vertical-themed character line

> BladeScan adaptive highbeam system is installed below the newly designed, compact, three-bulb lamp units and clearance lamps that have an accentuated "L" design. The colour of the grille mesh has been changed to a dark metallic for a classier appearance.

> The chrome trim within the rear combination lamps has been switched to Piano Black. In the F Sport version of the new LS, the garnish of the sub-radiator grilles wraps around to the sides so as to underline the vehicle's wide stance. Other elements that help to accentuate the F Sport's more dynamic image include a dedicated colour for the spindle grille and 20-inch wheels.

> Controls on the steering wheel and centre console have been coloured black for improved visibility and a clear-cut impression. Also, a switch for displaying on the touch display the controls for the often-used seat heaters and steering wheel heater has been added to the centre console for improved operability.


Cruise self-driving vehicle goes solo in San Francisco

                LOS ANGELES: Cruise, a General Motors (GM) majority-owned company along with investors Honda and Softbank, became the first company to receive a permit from the California Department of Motor Vehicles to test cars without any occupants in them.

Cruise has been testing 180 of its Chevrolet Cruise self-driving vehicles with a safety driver behind the wheel on the busy streets of San Francisco.

The permit now allows five of those vehicles to roam the streets without anyone in them.

Although the company isn't the first to receive such a permit in the US, they will be the first to deploy their vehicles on the streets of a major US city.

Cruise is the fifth company to receive the driverless permit in the state of California with Alphabet’s Waymo being the first in late 2018 for about 36 test vehicles that can travel up to more than 100kph.

This year, SoftBank-backed Nuro, whose vehicle has no steering wheel or pedals, was also approved and has delivered medical supplies for temporary Covid-19 hospitals.

Chinese startup AutoX and Amazon.com Inc's Zoox also received their permits in recent months.

The four previous permits are for cities in Silicon Valley that are easier to navigate.

Under its permit, Cruise vehicles can go anywhere on San Francisco streets at a maximum speed of up to 50kph and can drive both day and night.

In the state of Arizona, which has been more open to the testing of autonomous vehicles, Waymo has already begun charging a select group of customers since mid-2019.

The programme was temporarily paused due to the Covid-19 pandemic but was recently restarted in October.

Currently, Cruise is working on improving its ride-hailing app that employees can use for free to get around the city.


US may revise 2021 fuel efficiency standards, freeze targets

                WASHINGTON: The US Transportation Department said on Tuesday it may revise auto fuel efficiency requirements starting with the 2021 model year, a year earlier than previously disclosed, and could adopt lower standards through 2025.

In March, President Donald Trump ordered a review of US vehicle fuel-efficiency standards from model year 2022 through 2025 established under the Obama administration. US regulators said in a notice published Tuesday they are preparing a new environmental impact statement and could decide to freeze 2021 standards through 2025, rather than raising them every year.

The Alliance of Automobile Manufacturers, a trade group representing General Motors Co, Volkswagen AG, Toyota Motor Corp and others, said in a statement the environmental review "must happen regardless of what future standards are."

The group argues "facts need to drive public policy, including data on consumer sales, gas prices and costs of technology" in determining the final standards.

The Obama administration's rules, negotiated with automakers in 2011, were aimed at doubling average fleet-wide fuel efficiency to about 50mpg (4.7 l/100km) by 2025.

The Obama administration said the rules would save motorists US$1.7 trillion in fuel costs over the life of the vehicles but cost the auto industry about US$200 billion over 13 years.

Under the 2011 deal, the 2022-2025 model year rules must be finalised by April 2018. Trump reopened a review of those rules after automakers said the Obama administration did not conduct a proper review to ensure the rules are feasible.

Under federal law, the National Highway Traffic Safety Administration must set "maximum feasible" Corporate Average Fuel Economy requirements, while considering "technological feasibility, economic practicability... and the need of the United States to conserve energy."

The White House recently invited automakers to attend meetings with officials to talk about the review, officials briefed on the matter said.

Sierra Club’s Andrew Linhardt said freezing the fuel efficiency standards could “hurt the American people just to pad the pockets of big oil and auto executives."

NHTSA said in its notice Tuesday it will consider a number of options - including continuing the 2021 requirements through 2025, rather than requiring yearly increases.

Under current rules, fleetwide average fuel economy is expected to be around 41 mpg (5.7 l/100km) in 2021, compared to an average of nearly 50 mpg in 2025.

The agency also said it is considering giving automakers additional flexibility for prior model years to meet requirements.


Li Chunrong focused on Proton turnaround as pressure piles up

                PETALING JAYA: Dr Li Chunrong is a man on a mission. As Proton’s new CEO, he has targets to achieve even as the pressure on him piles up.

Dr Li promised on Sept 29 to outline a roadmap for Proton within 10 weeks of his appointment, and he delivered.

In December, the anticipated 10-year business plan to turn around Proton and grow it into a regional player was on the table for all stakeholders to scrutinise.

 Dr Li.

The plan to turn Proton around “as soon as practicable”, which has been shown to Sunday Star, includes retaking local market leadership and becoming one of the top three carmakers in South-East Asia.

Aggressive business targets have been set. Proton aims to introduce three new car models, upgrade four current models and cut the total cost by 30%.

Proton also plans to grab 30% of local market share and 10% of Asean market share. Exports are to account for 25-30% of its annual sales.

In volume projection, car output is to hit 200,000 units in 2020, above 300,000 in 2023 and 400,000 in 2027.

The national carmaker – which used to be a market leader – sold only 70,991 units of cars in 2017, accounting for only 12.3% of local market share.

Dr Li is certainly a man to watch.

“My job is not to look at the past, but I will work day and night to make sure Proton is strongly successful,” declared Dr Li on Sept 29 at a media conference to announce his appointment as Proton CEO.

He seemed fully aware that Proton’s many past failures to turn around has invited more scepticism than anticipation.

“Everybody is watching Dr Li. He is under huge pressure. From what I have observed, he is very fast in his thoughts and actions, and has been working very hard,” says Datuk Keith Li Zhongping, president of the China Entrepreneurs Association here.

“Dr Li came here with a mission: to revive Malaysia’s national car, not just any carmaker. This mission covers not just his own commitment to turn around Proton, but also the dream of China.

“Proton has to succeed and become a model for other Malaysia-China joint ventures.”

At the welcome reception organised by the Federation of Chinese Guilds in Malaysia (Huazhong) for China’s new ambassador Bai Tian late last year, Dr Li unexpectedly stole some of the limelight from the star of the night.

He had arrived early to get to know the leaders of the Chinese community in Malaysia.

And when the media spotted him, they were quick to surround him to find out the latest developments in Proton.

That little commotion tilted the focus of the night partially onto this Chinese guy, charged with Proton’s turnaround.

“Dr Li has boldly accepted the challenge to turn Proton around. I was told he took a cut in his overall pay package to come here,” Second Minister of International Trade and Industry Datuk Seri Ong Ka Chuan tells Sunday Star.

The minister had played a key role in wooing China’s Zhejiang Geely Holding Group to become Proton’s strategic partner.

Geely acquired a 49.9% stake in Proton from DRB-Hicom Bhd last June. Along with the Proton shares, Geely also completed the purchase of a 51% stake in Lotus Cars last September.

According to Ong, Li’s bonus at Geely would be paid according to the group’s profitability. In the first half of 2017, Geely’s net profit jumped 128% to 4.34 billion yuan (RM2.8bil).

But as Proton and Lotus are loss-making carmakers, Dr Li had to forego the bonus incentive in his Malaysian adventure. However, this was no deterrent.

Nor was the unsavoury fact that the Malaysian government had injected over RM15bil into Proton over the past 34 years, and that Proton was down with heavy losses and burdened with debts.

Turning around Proton could not scare Dr Li, as Geely had been involved in a much bigger and more expensive exercise when it was turning around Volvo.

Geely acquired Swedish carmaker Volvo Cars from Ford in 2010. After investments of US$10bil (RM38.92bil) in developing models, new technologies and building assembly plants in China and Sweden, Volvo recorded an operating profit of US$1.25bil (RM4.86bil) in 2016.

Few people know Dr Li personally, but most are aware that he is academically qualified and possesses the relevant experience. Most importantly, he has the backing of Geely and the Malaysian Government.

Dr Li graduated from Huazhong University of Science and Technology with a bachelor’s degree in electrical automation, followed by a master’s degree in industrial engineering and management.

He also pursued a second master’s degree in business at the renowned Massachusetts Institute of Technology in the United States.

After completing his studies at MIT, Dr Li returned to Huazhong University to earn a PhD in management engineering.

Dr Li started his career with state-owned Dongfeng Motor Corporation in 1987. During his tenure there, he was involved in the development of Dongfeng’s own brand and joint ventures with Peugeot, Honda, Nissan, Kia and Cummins.

In 2007, he set up Dongfeng Passenger Vehicle Company and became its CEO. His efforts in establishing the company’s design, branding, development and production systems laid the foundation for the automobile manufacturing company’s success.

When Dr Li served as executive vice-president of Dongfeng Honda Engine Company, he was handpicked by Geely to spearhead Proton’s transformation.

Ian Yoong, an investment adviser to Chinese businesses, tells Sunday Star he is optimistic about Proton’s future.

“Proton will be Geely’s platform to penetrate the Asean auto market. Dr Li is a veteran in the auto industry and more importantly, he has shown that he has the will and determination to implement much needed changes,” adds Yoong, a former investment banker with CIMB.

Economist Lee Heng Guie concurs with Yoong.
 Yoong
“There is new hope for Proton following the entry of Geely, but tough challenges remain. Dr Li will have to make bold but unpopular decisions to put Proton on the right track.”

“The overarching issues are not only related to local vendors and component manufacturers, but also the state’s preparedness to re-engineer Proton’s business model,” adds Lee, who is executive director of the Socio-economic Research Centre.

In fact, the new management under Dr Li is feeling the heat from some groups after introducing several tough measures.

Last Monday, the Malaysian Association of Malay Vehicle Importers and Traders president Zainuddin Abdul Rahman accused Proton’s new management of discriminating against bumiputra distributors, following a Proton directive to all distributors to upgrade Proton sales centres from 1S (sales only) to 3S centres (sales, service and spare parts).

Urging political intervention from Putrajaya, Zainuddin claimed that bumiputra vendors may be forced to close shop within six months as 85% of them are in the 1S category.

Another bold directive from Dr Li to reduce Proton’s cost of production also caught attention as it will hit bumiputras.

Proton parts suppliers have been directed to reduce their prices by about 20-30%, as they have been selling components at 30% above regional market prices.

 Geely and Volvo deepened relationships in a tech-sharing agreement last August.

It is unsure how the Federal Government would react, but the statement made by Prime Minister Datuk Seri Najib Tun Razak on Feb 3 when launching the National Automotive Cluster @ Proton City in Tanjung Malim might be able to offer some assurance to Geely.

Najib told the media then: “The decision to choose Geely (as strategic partner) is correct as the company produces 1.5 million vehicles annually, owns Volvo, has high technology and is willing to transfer technology to Proton’s engineers.

“If we remain with the old mentality, we may not survive the keen competition.”

He had stated that the Proton’s past problems were due to an economic model that focused on patriotism rather than global ambitions.

“There has been too much political interference in Proton’s administration. We will not allow Proton to sink.

 Volvo Cars' SUV line-up The XC40 is Volvo's latest SUV. The brand owes its recovery to Geely funding and revamp.

“Proton requires the Government’s support in its recovery and my administration will restore it,” declared Najib.

Urban planner and transport expert Goh Bok Yen believes Dr Li is putting Proton on the right track with the latest measures.

Goh tells Sunday Star: “Over-emphasis on bumiputra participation and over-regulation will cause Proton to be uncompetitive under current dynamics.

“If you look at the measures from a positive aspect, Proton’s new management is transforming the bumiputra enterprises, forcing them to catch up and compete in the auto industry.”

Yoong says: “It is not difficult for Proton to reduce cost by 15-20% as its new management has the will and the backing of the Prime Minister to do so.

“Proton and the Government are aware that this could very well be the last chance for the business to turn around and become viable.”

Regarding criticism of Dr Li, minister Ong says: “This is the right guy for the job. If he leaves for whatever reason, I don’t know who will dare come in to revamp Proton.”

Indeed, mindful of local concerns, Dr Li’s business plan spells out localisation targets so that local enterprises will benefit from the transformation of Proton.

According to the plan, about 80% of Proton’s components and services are to be sourced locally after four years.

However, the plan also makes it clear that there will be no compromise in the normal conduct of business: vendors must place strong emphasis on quality, cost and reliability.

As the 10-year plan states, the first three years “is the most critical period for Proton to turn around” and currently, there is company-wide effort to achieve this objective.

Proton has also started work on improving quality, which is crucial in winning back consumer confidence and widening its reach to all communities in Malaysia.

Late last year, car quality was improved by 30% to 50% using a stringent system aligned to the international standard of Volvo cars. Proton plans to achieve the same quality standard as Geely cars by end-2018.

The quality enhancement has attracted the attention of the Federation of Hokkien Associations in Malaysia, which has asked for a group discount for its members, totalling more than 100,000 people.

Geely has also acted to instil confidence in Proton. Last December, top car dealers were invited to China to view Geely’s modern sales network and the high-end technology employed in the making of Geely-Volvo cars.

To optimise investments, Proton’s focus will be directed to productivity, quality and cost competitiveness, as well as enhancing brand value, says the plan.

If Proton is allowed to grow and expand according to its new business plan, Malaysia will benefit immensely.

Proton’s new plant in Tanjung Malim is expected to create 50,000 jobs. Once its sale volume hits 400,000 cars, the company will bring in revenue of more than RM24bil, according to Ong.

As Proton wants to focus its production in Tanjung Malim, the Government is allocating 1,500 acres of land to develop a high technology automotive hub in Perak.

“Once this technology park is up and running, Malaysia could produce RM24bil worth of auto parts and electronic products. It could also generate another 100,000 jobs,” says Ong.


Mercedes-AMG plotting Porsche Cayman rival, says report

The Mercedes-AMG GT S Roadster.
STUTTGART: Mercedes-AMG used to be known for taking existing Mercedes production models and tuning them to an incredible level to transform them into something completely different from their regular versions.

However, the performance arm of the German automaker now produces its own unique models, and a proposed future model looks like it might be a two-seat roadster and coupe to take on established rivals such as the Porsche 718 Cayman.

Autocar in the UK is reporting that this new AMG model has now been presented to the Mercedes-Benz board of management, and it's being seen as an eventual successor to the disappointingly slow-selling SLC. If it turns out to be a mid-engine model, which it's believed to be at this point, it could have clear links to the upcoming Project One hypercar.

 The AMG GT S.

At the moment, the car is only in the conceptual stage of development, but it's being imagined to slot into the AMG range below the GT which is now three years old. It would also have to come in at a price comparable to its Porsche rival, so that rules out it getting anywhere near as much as the 1,000 plus horsepower of the Project One it could be inspired by.

Unlike the SLC, this new model would be available from the start in two different body styles of coupe and roadster. At the moment, the fixed-roof Porsche 718 Cayman costs around US$69,000 (RM278,000), and a 718 Boxster roadster costs from around US$71,200 (RM287,000).

We're a long way from the new AMG coming to fruition just yet, but it's believed two different power outputs will be made available when the car is eventually launched. It means the car will probably follow along the lines of the upcoming new A35 and the second-generation A45 hot hatches, with more powerful track-focused models to follow later in the car's seven-year model lifecycle.

If or when the new model gets the go-ahead from the bosses at Mercedes, it will become the fifth dedicated AMG model, following on from the SLS, GT, GT 4-door Coupe and the as yet to be officially named Project One hypercar.

 Slow sales may mean the death of the SLC.


US auto labour cost study shows impact of two-tier wage system

                DETROIT: General Motors Co and Ford Motor Co have much higher labour costs than their cross-town rival Fiat Chrysler, according to a new study released just ahead of a meeting of United Auto Workers officials as they prepare for contract talks with the Detroit Three.

GM's US auto workers on average earn about 21% more in wages and benefits than their counterparts at Fiat Chrysler Automobiles , reflecting the much higher percentage of lower-paid, entry-level workers at FCA, according to a study of 2014 labour costs by the Center for Automotive Research (CAR).

Ford Motor Co's hourly labour costs were US$57 (RM209), just behind GM's at US$58 (RM213). FCA's US workers averaged US$48 (RM176) per hour.

The two-tiered pay scale implemented as part of the United Auto Workers 2007 labour agreement allows GM, Fiat Chrysler and Ford to pay their newer "entry-level" workers less than veteran ones.

UAW leaders have said that narrowing the gap between new hires and veterans will be a top issue when negotiations begin with the Detroit automakers this summer.

Germany's Daimler AG, for its Mercedes-Benz plant in Alabama, at its only US plant, has the highest US auto labour costs, at an average of US$65 (RM238) an hour. Workers at the US plants of Volkswagen AG and BMW earn the least, at US$38 (RM139) and US$39 (RM143) per hour, respectively, according to estimates by CAR.

GM, Ford and Fiat Chrysler are the only automakers whose US workers are represented by the UAW.

Despite major restructuring since the 2009 recession, GM and Ford still have higher labour costs than their major competitors.

The US$10 (RM37) per hour labour cost gap between GM and Toyota Motor Corp  translates to roughly US$250 (RM916) a car in additional labour costs for GM, according to data in the study.

Some 43% of Fiat Chrysler's US auto workers earn the lower entry-level wage, almost double the percentage of such workers at Ford and GM.

Of the other automakers operating in the United States, Honda Motor Co workers earned on average US$49 (RM180) per hour, Toyota Motor Corp US$48 (RM176), Nissan Motor Co US$42 (RM154), Hyundai Motor Co and its corporate stablemate Kia Motors Corp US$41 (RM150).

Per hour labour cost averages include pay for "temporary" workers who are formally employed by outside agencies such as Kelly Services Inc but mainly work full-time alongside workers employed directly by the automakers.

Japanese automakers have the highest percentages of temporary workers, which cut labour costs, CAR analysts have said.


Amazon Japan starts selling electric cars

                TOKYO: First it was books, then household products; now you can buy an electric car from online shopping giant Amazon.

The Japanese unit of German auto giant BMW started selling its i3 electric models on Amazon.co.jp.

The high-end automaker’s small electric vehicle has been popular in European and North American markets, but BMW Japan wants to find more customers through the online retailer, a spokesman said in Tokyo.

“We have 46 dealers (which sell the electric model) in Japan, but we hope this e-selling will cover the entire market more thoroughly,” the spokesman said.

“This will widen the sales channel and improve convenience for customers,“ he said.

“So many people are using the website. We would like to research potential customer groups who may be interested in our products.”

Two i3 models are available on Amazon.co.jp, a regular BMW i3 with a range of 229 kilometres (142 miles) and i3 Range Extender that runs up to 300 kilometres on one battery charge, the company said.

Customers accustomed to completing their purchases in one click might, however, be disappointed.

After loading the car into their virtual shopping cart, potential buyers will have to wait for a phone call from BMW requesting documents proving they have a parking space and a place to charge the vehicle. – AFP


Ducati Diavel 1260 S unveiled

                MILAN: Ducati has recently unveiled the Diavel 1260 S "Black and Steel" which is characterized by asymmetrical and refined graphics that combine glossy grey and matt black as the main colours.

The  motorcycle also gets yellow highlight on the frame, the lower part of the tail, the dedicated seat badge and some details of the bike.

The Diavel 1260 S combines the performance of a maxi-naked with the ergonomics and comfort of a muscle cruiser.

The powerplant of the bike is the 1262 cc Testastretta DVT engine churning 162HP at 9,500rpm and 129Nm at 7,500rpm.

Meanwhile dry weight of the bike is 223kg.

The Diavel 1260 S “Black and Steel” joins the S version in Thrilling Black and Dark Stealth colour with red frame and black wheels with touches of yellow.

The standard version is available in Dark Stealth colour with black frame and black wheels.

Other features on the bike are Riding Modes, Power Modes, Cornering ABS, Ducati Traction Control, Ducati Wheelie Control, Ducati Quick Shift, Ducati Multimedia System, Ohlins suspension, Brembo brakes and full-LED lighting system.

For further information on the bike, visit www.ducati.com.


First look at most powerful BMW X5 and X7: Say hello to the M50is

                MUNICH: BMW is raring to go with its most powerful X5 and X7 - the X5 M50i and the X7 M50i.

Both use a new V8 turbocharged petrol engine that makes up to 530hp.

The top-flight engine underlines the sporty nature of the latest generation of the original Sports Activity Vehicle (SAV) – and the first BMW X model in the luxury segment.

Both models combine the V8 engine with an intelligent all-wheel drive system and a model-specific suspension technology, developed with expertise from BMW M GmbH.

The new V8 engine responds with great sensitivity to every movement of the accelerator pedal. The engine already generates its maximum torque of 750Nm at 1,800rpm – and it remains available up to an engine speed of 4,600rpm.

Accordingly, the power output is as strident as you would expect it to be. The maximum value of 530hp is activated between 5,500 and 6,000 rpm. As a result, the new BMW X5 M50i is able to accelerate from zero to 100 km/h in 4.3 seconds.

The new V8 engine is combined as standard with an 8-speed Steptronic sports transmission, characterised by highly dynamic gear shift properties. Shift paddles are mounted near the steering wheel for manual control of the choice of gear.

The new BMW X7 M50i completes its standard sprint in 4.7 seconds.

Model-specific designer features serve to emphasise the exclusive and sporty nature of the new BMW X5 M50i and the new BMW X7 M50i the moment you see it.

The extra-large air inlets in the front apron are a clear indication of the V8 engine’s cooling requirements. The unique design of the side sills and rear apron, the BMW individual high-gloss Shadow Line, and selected design elements in Cerium Grey similarly serve to underline the outstanding status of the 8-cylinder models.

The interior of the two top models of the BMW X family features an M leather steering wheel, a gear selector lever displaying the M logo, Vernasca leather upholstery with contrast stitching and perforated surfaces and interior strips in Aluminium Tetragon (BMW X5 M50i) or Fineline Black precious wood finish with high-gloss metallic effect, together ensuring a luxurious feel with a sporty touch.

And as if that wasn’t enough, the standard equipment also comprises illuminated entry sills displaying the ’M50i’ logo, a headliner in Anthracite (BMW X5 M50i) or Alcantara Anthracite (BMW X7 M50i) and a Hi-Fi loudspeaker system (BMW X5 M50i) or Harman Kardon surround sound system (BMW X7 M50i).


Price war among motor insurers expected come next July 1

                KUALA LUMPUR: Price war and competition between insurance companies will likely occur following the liberalisation of motor and fire tariffs starting July 1, 2017.

The prices for the products will be liberalised and the “licensed persons” will be able to determine the premiums or takaful contribution rates for them.

Actuarial Partners Consulting Sdn Bhd partner Nurul Syuhada Nurazmi said companies that were well-capitalised would be able to withstand the price war as they had enough buffer and profits to cover their deposits.

“Some insurance companies have started gearing up to obtain the market share,” she said, adding that others might purposely cut rates to gain market share despite realising the rates were already low and not profitable.

“If you have a business that is profitable, you can always cut the rates further until it reaches break-even point.

“Some companies that don’t have adequate money to pump in would sell off their businesses,” she told reporters after her presentation on “General Insurance Industry Future Landscape” at a seminar here.

The seminar on “Detariffication: Succeeding in a Competitive Environment” is jointly organised by Malaysian Insurance Institute (MII) and Actuarial Partners.

Nurul said it was completely up to the insurance providers to price their products as they saw fit to attract consumers.

She said the liberalisation would encourage the increase in the number of new insurance products and customers but would also create competition. “Too much competition could be destructive to the market like what happened in India and China – when liberalisation started, it went bust,” Nurul said.

However, the overall impact on the insurance industry was still too premature to be determined at this stage, she said.

MII chief executive officer Datuk Syed Moheeb Syed Kamarulzaman said motor insurance premiums would soon be based on a list of risk factors, instead of the current overly-simplified and regulated pricing policy.

“This will provide an early platform for insurers to refine their offerings and pricing policies while consumers get additional choices to fit their individual needs,” he said.


Proton X70 underscores reliability as convoy returns from China

                SUBANG JAYA: It's mission accomplished as the Proton X70 convoy has successfully completed a round trip to China.

Nine units of Proton's first sport utility vehicle departed from Proton's Centre of Excellence (COE) on an overland journey to China on Feb 26.

Organised by Borneo Automobile Leisure Touring and Kunming Scenery-Customer International Travel Co., the X70 Malaysia-China Amazing Trip 2019 (Amazing Trip 2019) was supported by the local carmaker and covered over 13,000km in 33 days across four countries.

The X70 proved its reliability during the trip and three months after its launch, the ability of the X70 to take on a variety of driving environments and perform faultlessly has been proven by its perfect reliability record during the Amazing Trip 2019.

Proton said there were no breakdowns during the journey that covered four different countries and each of the nine vehicles completed the route without requiring any repairs except for scheduled servicing.

This is despite most of the driving was done over for long distances in areas with little to no outside technical support, so it’s a commendable achievement.

When asked about their experience in the X70, all participants were thankful for the smooth ride, enthusiastic performance and refined cabin that can be found on all variants of the SUV.

These characteristics made long days behind the wheel effortless for drivers and passengers alike and allowed them to better enjoy the journey.

Those who drove the X70 Premium praised the Advanced Driver Assistance Systems (ADAS) and features such as the Nappa leather seats that boosted both safety and comfort.

As the X70 is not yet sold outside of Malaysia, technical assistance was arranged by Proton at dealer locations and service centres along the route where possible.

In China, vehicle servicing and support was provided by Geely dealers who were already familiar with the vehicles as it is available there as the Geely Bo Yue.

“Through this Amazing Trip 2019, we built strong bonds not only with the Proton X70 owners but also with Proton. With this, I would like to thank Proton for their support as this shows that Proton really cares for its customers,” said Malaysia-China Amazing Trip event director Dr Ling Tung King.

The trip started in Malaysia and crossed into Thailand and Laos before entering China to make a stop at the Geely Experience Centre in Hangzhou, where the convoy turned around for the trip back to Malaysia.

“While Proton is proud of its own capabilities, we are also happy to share more information about our joint-venture partner, Geely, with the participants of the Amazing Trip 2019. We want as many Malaysians as possible to gain an understanding of the relationship between the two companies so that more people will understand about the exciting future for Proton,” said Proton CEO Dr Li Chunrong.


Chery 2.0T GDI engine wins 2021 'China Heart' Top 10 Engines Award

                WUHU (China): Chinese automaker Chery's 2.0-litre turbocharged petrol direct injection engine which delivers an impressive 258hp and 400Nm, recently won the 2021 "China Heart" Top 10 Engines Award.

The "China Heart" Top 10 Engines Award is billed as among the three authoritative engine awards in the world, including "Ward Top 10 Engines" and "International Engine of the Year".

To date, the "China Heart" Top 10 Engines Award has been held 16 times, and is said to be representative of China's top engine research and development (R&D) and manufacturing capability.

The 2021 edition saw a shortlist of 15 engines from 15 automobile companies.

They were mainly graded in terms of power index, technological advancement, market performance, energy saving and emission reduction, and on-site evaluation.

Since 2006, when the "China Heart" Top 10 Engine Awards was launched, nine Chery engines including the 1.6T GDI and 2.0T GDI powerplants have been selected.

The Chery 2.0T GDI engine adopts a second-generation "i-HEC" combustion system, a new-generation thermal management system, and a 350bar ultra-high-pressure direct injection system.

Featuring a maximum effective thermal efficiency of 41%, the 2.0T GDI engine will be found in the Tiggo 8 Pro sport utlity vehicle (SUV) which Chery plans to launch in more international markets including Malaysia.

In a press statement, the Chinese automaker also highlighted its "Chery 4.0 Full-field Power Architecture" which includes fuel, hybrid power, pure electric and hydrogen power technology.

READ MORE:
Chery plans to launch EQ1 micro BEV in Malaysia in 2022
Chery Tiggo 4 Pro may launch in Malaysia in 2022


Volkswagen year-end celebration deals

                PETALING JAYA: Volkswagen Passenger Cars Malaysia (VPCM) kicks off the year-end celebration with the “Volkswagen Sedanza” campaign.

The campaign, which offers great deals on the Volkswagen sedan family, will run from now till Dec 31 2017.

Customers who have been eyeing a Volkswagen sedan will be spoilt for choice with a list of great deals and offerings, as listed below:

Model Interest Rate Maintenance Rebates Vento 1.2 -5 years freeRM 10,000Vento 1.6 From 0.28%5 years freeRM 10,000Jetta Highline--RM 8,000Jetta ComfortlineFrom 0.88%5 years freeRM 10,000Passat 2.0From 0.88%5 years free-Passat 1.8 From 0.88%5 years freeRM 15,000

There is a sedan for everyone with the Vento, Jetta and Passat. The range, engine and performance, as well as features caters to the different needs, age groups and life stages of Malaysians who are aspiring to be a Volkswagen owner.

To find out more or to test drive these cars, head on down to your nearest authorized Volkswagen dealer or visit  www.volkswagen.com.my


2015 car trends make way for a new generation of classics

                PARIS: Whether subtly restyled or entirely revamped, several iconic vehicles are getting a facelift for 2015, including the Toyota Prius, the Ford Mustang and the Renault Espace.

Without a doubt, one of the most anticipated updates of the year is that of the Toyota Prius. The new version of Toyota's famous hybrid is slated to debut in fall 2015. Other eagerly awaited Japanese models will include Nissan's new versions of its Qashqai and Juke crossovers.

This year will also see the arrival of the new Dacia Dokker and Lodgy, as well as an entirely restyled range from Kia, from the Picanto city car to the Cee'd sedan.

Ford is gearing up for a busy year, starting with the launch of the next-generation S-Max and C-Max, which premiered at last year's Paris Motor Show. 2015 will also see the arrival of the new Ford Mustang in parts of Europe, Asia and Australia.

 The Renault Espace.

This classic car's sixth iteration, which debuted at NAIAS in January 2014, maintains the design hallmarks of the original, including its long sculpted hood, though naturally in a more contemporary style. The new Ford Mustang convertible comes standard with a multi-layer roof, which is said to significantly reduce noise level. Under the hood, the new Mustang is available with engines boasting up to 426hp.

In the European car world, the star of 2015 could very well be the new Renault Espace, unveiled at the Paris Motor Show in 2014. The model is due to launch on the continent this spring, though pricing is still unannounced.

Over 30 years after its debut, the Espace is making the leap from minivan to crossover. Inside the cabin, a center console houses the new R-Link 2 multimedia system, which includes the brand-new Multi-Sense system for creating customized settings. At the coming Frankfurt Motor Show in September, Renault could also present a slightly restyled Clio.

In the meantime, rival French manufacturer Citroen may reveal the latest iteration of its C4 in Geneva this March. The model is expected to have a new light signature, next-generation engines and plenty of useful tech, including a new 7-inch touch screen offering access to all the car's media and navigation features.

 The Citroen C3.

Later, probably in Frankfurt, the brand is due to create a stir once again by unveiling the restyled C3.

Peugeot is planning a slight facelift for the 208, which will also take on a new range of more efficient engines. At the end of the year, the brand's 3008 is expected to transform from a crossover into an all-out SUV.

Finally, Opel could present its next-generation Astra (the 2016 version), at the Frankfurt Motor Show, where Volkswagen is also due to introduce its latest Tiguan.


Tesla's seat strategy goes against the grain - for now

                SAN FRANCISCO: Elon Musk was fed up. The seats on Tesla Inc’s new Model X SUV were a mess. An outside contractor was having trouble executing the complicated design, spurring frustration and finger-pointing between Tesla and its supplier.

How would Tesla ever pull off mass production of the upcoming Model 3, the car intended to catapult the niche automaker into the big leagues, if it could not deliver on something as fundamental as a seat? Musk made a decision: Tesla would build the seats itself.

Tesla’s demanding chief executive vowed years ago to shake up the automotive industry with his line of electric vehicles and a futuristic manufacturing facility in Fremont, Calif. But industry experts say Musk’s insistence on performing much of the work in-house is among the reasons Tesla is nowhere close to its stated goal of building 500,000 vehicles annually by next year, most of them Model 3s.

The automaker this month revealed it built just 260 of the vehicles between July and September, badly missing its target of 1,500 Model 3s in the third quarter. In a statement, Tesla blamed manufacturing “bottlenecks.” It declined to elaborate, but assured investors “there are no fundamental issues with the Model 3 production or supply chain.”

Tesla has demonstrated a commitment to vertical integration not seen in the auto industry for decades.

The company has so far sunk US$2 billion into a sprawling Nevada factory to manufacture its vehicles’ batteries. In-house programmers design the bulk of the complex software that runs the Model 3, which Musk has described as a “computer on wheels”. Tesla controls its own retail chain, selling its cars directly to customers and bypassing dealers.

But it is Tesla’s 2015 decision to build its own seats that has some industry veterans scratching their heads. Seat making is a low-margin, labor-intensive enterprise that big automakers generally farm out to specialists. Tesla is operating its own seat assembly line inside its factory, and it is hiring engineers and technicians to figure out a way to fully automate the process.

“Is that really the core competency of an auto company? It is not,” said analyst Maryann Keller, who has been tracking the car industry since the early 1970s. “Why would you want to do that?”

Tesla declined requests to discuss its seat assembly efforts. The company is expected to reveal more about its production issues on Nov 1, when it announces third-quarter results. There is no indication that the “bottlenecks” mentioned previously by the company are associated with seat production.

Analyst Keller and others suspect Tesla eventually will be forced to farm out seat assembly to suppliers as the company transitions from a niche producer of pricey, hand-built luxury cars to a mass manufacturer. Seat makers including Germany’s ZF Friedrichshafen AG, France’s Faurecia SA and Detroit-based Lear Corp already are trying to win that business.

A lot is riding on Tesla’s ability to scale up operations quickly. Starting at US$35,000, the Model 3 is Tesla’s attempt to bring its electric technology to a wider audience. More than a half-million customers have already put down deposits.

Tesla has never turned an annual profit and it is burning through cash. Yet investors are betting big on its future. It is now the second most valuable US. automaker, behind only General Motors Co.


Hyundai cuts price of fuel cell car as it gears up to fight Toyota

                SEOUL: Hyundai Motor Co said it will lower the price of its Tucson fuel cell electric vehicle by 43 percent in South Korea and consider cutting prices of the car overseas to compete with models from the likes of Toyota.

The South Korean automaker - the world's fifth-biggest when paired with sister Kia Motors Corp - hopes to populariSe fuel cell cars in its home market by cutting the price of the Tucson ix to 85 million won (RM280,000).

In developing more environmentally friendly technology, Hyundai has long trumpeted fuel cell electric vehicles over battery-powered alternatives, but the high price tag and a lack of refuelLing stations have been roadblocks to adoption.

South Korea has only one hydrogen fuelling station, with another to be opened in the first half of this year and a government goal to increase the number to 200 by 2025.

The carmaker said it had sold only 200 electric vehicles so far, including in the United States and to European governments.

"A significant price cut in the fuel-cell driven Tucson line of vehicles will allow higher supply volume for fuel-cell vehicles in general by making them more affordable for consumers," Hyundai said in a statement on Monday.

In December, Japanese rival Toyota launched its Mirai fuel cell sedan with a pre-tax price tag of 6.7 million yen (RM206,000).

Toyota said on Jan 15 that it planned to sell at least 3,000 Mirai fuel cell sedans at least in the United States by the end of 2017.

Hyundai Motor Group has said it would invest 11 trillion won in eco-friendly car development by 2020 and launch its second fuel cell model by 2020.


How to tell your car's shock absorbers are broken

                BERLIN: Does your car's handling feel rubbery or spongy when driving? Do the tyres or the steering wheel tremble unevenly?

If so, broken shock absorbers may well be the cause, according to the vehicle inspection organisation Dekra.

Other indicators of broken shock absorbers include oil leaking from the shocks themselves, or when the car’s body keeps shaking when you push down on it.

Shock absorbers tend to wear out gradually and subtly, which means that drivers can unwittingly get used to the deterioration. As such, Dekra advises getting your car’s shocks tested in a workshop at least every 20,000km once the odometer passes the 80,000-kilometre mark.

Shock absorbers ensure that a car’s vibrations are dampened, such as when driving over uneven terrain or damaged roads, thus ensuring constant contact between the wheels and the road.

With worn shocks, ground adhesion is reduced and, therefore, so is cornering stability and tracking. Longer braking distances, swerves when turning or more frequent aquaplaning can likewise result from worn shock absorbers.


Taking on Tesla: China's WM Motor sees mass market electric cars

                SHANGHAI: It remains more promise than product, but the electric vehicle (EV) sector is drawing more talent from mainstream automakers which are reluctant to go full tilt at the new technology.

Making the jump can mean better pay and pioneering opportunities. One Chinese-backed start-up with around 900 employees, for example, has a US$15 million monthly payroll, according to a person close to the company.

One such "defector" is Freeman Shen (pic above), who quit Chinese carmaker Geely two years ago to launch WM Motor, an EV start-up that aims to compete with Tesla Motors in China, the world's biggest autos market and one that encourages the new technology through policy and subsidies.

 Employees of WM Motor Technology working at their office in Shanghai. - Reuters

While other Chinese EV start-ups including LeSee, NextEV, Future Mobility and Qiantu Motor are mostly backed by big internet groups such as Alibaba and Tencent, Shanghai-based WM Motor's funding, in the "billions of yuan", is from Chinese investors, but not technology tycoons or venture capital funds, says Shen. He declined to say who the money has come from.

Shen, 46, has two decades of experience in the United States and China, with BorgWarner, Fiat and Geely, which in 2010 bought Swedish car brand Volvo. He aims to make smart, connected electric battery cars, betting on ordinary drivers in China's big cities wanting more affordable EVs.

He plans to go straight for this mass market rather than follow Tesla in first building a high profile super all-electric battery sports car.

"Building a fancy car to impress people is actually fairly easy as long as you're willing to spend the money," Shen says. "The most challenging part is mass production - coming up with a car everybody can buy, with high quality but at a significantly lower cost."

Shen reckons he has around a 5-year window of opportunity to establish WM Motor in China, while Beijing offers incentives and policy support for EVs.

"I don't think traditional car companies are doing well selling cars, especially with their customer experience. With smart, connected cars, I believe I can change that," says Shen, who has an engineering Masters from University of California at Los Angeles.

"We're not a traditional car company. We see ourselves as a service company," he says, while acknowledging that friends, family and former colleagues "all think I'm nuts" for starting a new auto brand from scratch.

Advocates, including Shen, see smart, connected EVs revolutionising the car industry, with today's often-idle cars replaced by smart cars that can be leased out when not needed or shared as part of a city fleet, and which tell the owner when the oil needs changing or a service is due.

"What's important for these emerging EV companies ... is the potential change in customer experience, if they can transform the way the car fits into our lives," says James Chao, Asia-Pacific managing director at consultant IHS.

 Employees of WM Motor. - All photos by Reuters

"Creation of an entire ecosystem enabled by fast mobile internet connectivity, location-based intelligence ... will be critical."

The emergence of China's EV start-ups does not yet signal any major related technology breakthroughs. Shen is actually turning to a German firm's tech team he acquired for battery, motor control and other technologies.

The innovation of WM Motor and others is more in creating new business models for personal transportation.

Shen was tight-lipped, but three individuals close to WM Motor said he wants to sell cars primarily online, with a limited number of showrooms. Customer test drives would likely be contracted out to a third party, and various car dealers with excess service capacity would carry out maintenance and repairs.

There's already competition.

Shen Haiyin, the company's 42-year-old founder and CEO, says he, too, is targeting big-city drivers with more affordable EVs, with third-party engineering and a Japanese electric propulsion system, to be sold under the Jidian brand name.

Also, Tesla could start manufacturing sooner than expected in China, making its cars more competitive as they wouldn't face the import duties now levied on foreign-produced vehicles. Spokeswoman Khobi Brooklyn said Tesla doesn't comment on speculation.

WM Motor plans to build an assembly plant, most likely in Zhejiang province, and launch three models, starting in 2018. It plans to nearly double its workforce to around 600 this year in China and Germany, where it is working on around two dozen prototype cars.

The first of those models is aimed at competing with the US$35,000 Tesla Model 3, billed as a mass market EV. Shen says WM Motor aims to sell more than 100,000 cars a year within 3-4 years of the planned 2018 launch, at around that price, or cheaper. China is the priority market for now, but Shen says he is also looking to enter the US market further down the line.

He reckons WM Motor has an edge over rivals by mating high-spec German technology with what he calls low-cost, high-quality parts from Chinese suppliers.

"We're not making a luxury car," he says. "We're bringing luxury-like quality to a mainstream car."


Flexible motor insurance pricing soon

                KUALA LUMPUR: Bank Negara Malaysia (BNM) will further liberalise the motor insurance tariff by introducing a flexible pricing for motor comprehensive and motor third-party fire and theft insurance products effective July 1.

The premium for motor third party product, however, would continue to be subjected to tariff rates.

Assistant governor Jessica Chew said the move would follow the first phase of motor and fire tariff liberalisation introduced on July 1 last year, which saw insurers and takaful operators given the flexibility to offer new motor products and add-on covers that were not defined under the existing tariff of that time.

“From July 1 onwards, the premium rates for motor comprehensive and motor third-party fire and theft products will be liberalised where premium pricing will be determined by individual insurers and takaful operators,” she told reporters in Kuala Lumpur today.

She said under the new pricing method, safety and security features of vehicle, duration of vehicle on the road, geographical location of vehicle and traffic offences on record would also determine the insurance premium apart from sum insured, cubic capacity and age of vehicle.

“This is in contrast to the current calculation for premium which is fixed based on the sum insured and model of the vehicle plus limited premium loading based on the age of the driver and number of accident record minus no claim discount (NCD) of up to 55%,” she said.

Chew said the aim of the liberalisation was to gradually move the tariff towards pricing that was more equitable to take into account a broader risk factors and reduce cross-subsidy across business classes and risk groups.

“The reality is that the premium that has been collected and the claims that had been made particularly involving third-party bodily injury has a big disparity. On average, of every RM1 collected, the claims that are made on third-party bodily injury is RM1.30 to RM3,” she said.

She said the new pricing method would also reward good risk management and safe driving behaviour among consumers which could benefit from lower premiums.

“The drivers will be incentivised to inculcate safe driving habits which will benefit them and the public.”

She said the new pricing method would stimulate innovation as insurers and takaful providers would have a greater flexibility in their product offerings.

“For consumers, the benefits include an improvement in the quality of service and a wider range of products at competitive prices due to greater competition among insurers,” she said.

She said the availability of new products with different features would also enable consumers and businesses to obtain the coverage that best meets their needs.

Apart from that, she said, the competitive pricing would be offered by insurers and takaful operators where consumers might benefit from shopping around to obtain the best deals that suit their needs.

She said despite the flexible pricing, BNM would continue to monitor the industry to ensure adjustment made to the prices were reasonable.

“Excessive adjustment is something that we want to taper,” she said.

She said the NCD structure would also remain unchanged and continue to be transferable from one insurer or takaful operator to another.

Chew said after the effective date, consumers could continue to buy additional products to enhance the insurance protection for motor vehicles.

However, she advised consumers do some survey as they could also purchase product offerings which already included their additional needs.

“Do make informed decision by shopping around for different quotations by contacting the agents, insurers or takaful operators through their call centres or online channels before you make your purchase,” she said.


Beijing Motor Show: How Chinese drivers are shaping new car trends

Visitors at the first public opening day at the Beijing auto show today. — AFP
BEIJING: Sparkling on the inside like a jewellery box, it looms high over the masses of people. If there's one car that unites the current trends on the Chinese auto market into one striking design, then it’s the Vision Mercedes-Maybach Ultimate Luxury.

Because as an SUV with a notchback, this concept car shown at the Beijing Motor Show (April 29 to May 4) doesn’t just combine the most successful segments from the global auto industry. It also fulfils a growing need for luxury in a country that has more super-rich individuals than anywhere else in the world. Not a bad place for the auto industry to carve out a living.

Even if there are obviously many more people earning ordinary and especially low wages than millionaires, China has long since developed into the world’s most important car market, one with the biggest sales figures and the highest growth rates. Even the masses are yearning for luxury class vehicles, and manufacturers gladly deliver.

The best example here of catering to the Chinese driver is the extended versions of European saloons. This year’s Mercedes A-Class has become a notchback with 6 more centimetres of wheelbase just for China, so that it almost attains the format of the C-Class.

And it’s not only notchback models that are being stretched out on the rack. Audi has upped its first SUV, the Q5L, to XXL by making it 11 centimetres longer.

On top of that, Volkswagen (VW) has created a successor of its CC especially for China as well as the compact-class saloon Lavida, which is entering the next round as one of the most important models for the masses. And Ford is also selling the Focus here as a notchback.

 The Kamiq. — dpa

And whatever isn’t a saloon has to be an SUV in China. The trend is so strong that a company like Skoda is developing a third off-road vehicle for the Chinese and underpinning its Karoq and Kodiaq fleet with the 4.39-meter long Kamiq.

VW has presented its new Touareg for the first time to a large audience. And Buick is getting people in the mood for a sporty and sleek interpretation of an SUV with its Enspire concept car. Even the BMW X6 looks pretty clumsy by comparison.

But there’s also a few new global innovations on top of all this special treatment being lavished on China. Lexus will unveil the fourth generation of its midsize-saloon ES, which will succeed the GS in Europa with its 218-horsepower hybrid drive.

BMW is lifting the curtain on its M2 Competition, with a six-cylinder engine being pushed to 410 horses. And according to Mercedes, the A-Class saloon will also be made available in Europe, but with the normal wheelbase of the five-door version.

 The M2 Competition.

Still, China is not just the biggest driver for the luxury segment. Alternative motors count for even more here than pomp and circumstance. That’s because the government is literally promising its people the sky, giving their all in the transition to the electric motor in efforts to help clean up its smoggy cities. In the coming decade, China wants to see electric vehicles reach a 20-per-cent share of all vehicle sales.

And from 2019 onward, 10 per cent of every brand’s vehicle fleet will have to be sold as an electric. Manufacturers have already taken this into account in hurried obedience. No matter where you look, everywhere at this giant trade fair there are eco-friendlier cars.

That goes for China’s several dozen domestic manufacturers, above all for the more European-oriented brands Nio, Byton or Lynk & Co. But it also applies to the big importers.

VW for example has established a definitive electric-car brand called SOL especially for and in China and announced it would invest a total of 15 billion euro for 40 new models with alternative engines.

BMW is also putting its nearly production-ready concept of the iX3 on display (272 hp and a 400-kilometre range), marking the first time electrification will be implemented at the company’s core brand. Even the Maybach fits into this category, because as fat and unreasonable the SUV saloon may look, critics cannot find fault with its engine, driven by a total of 750 horses from four electric motors.

German manufacturers are still holding onto their spot as the industry’s most highly regarded brands with their cars in Beijing. But times are getting tougher, said one BMW manager with a view to the by now surprisingly serious cars made by China’s domestic manufacturers, nearly all of which are SUVs.

The designs are increasingly original and no longer copycat work, while the technology is solid and the drive normally electric. The days when Europe's manufacturers could laugh snobbishly at China's home players are long gone.