Volkswagen reports record sales, warns of trade threats to auto industry

Volkswagen reports record sales, warns of trade threats to auto industryA worker checks the Volkswagen sign on a Golf car in Zwickau, eastern Germany, Sept. 6, 2015. (AP / Jens Meyer)FRANKFURT -- Volkswagen said its earnings rose in the second quarter on record sales and fatter profit margins, but warned that "growing protectionism" is a threat to the globally connected car industry. Revenues rose 3.4 per cent to 61.14 billion euros and the operating profit margin rose to 9.1 per cent from 7.7 per cent. Since then, the company has had to set aside 27.4 billion euros to cover fines, penalties and other costs. Volkswagen reported record sales volumes for the first six months of the year of 5.5 million vehicles, an increase of 7.1 per cent.

Affin Hwang remains positive on auto industry sales - Business News

KUALA LUMPUR: The Malaysia Automotive Institute has guided that the National Automotive Polocy 2018 review will comprise additional pillars of mobility, next generation vehicles, artificial intelligence and the Industrial Revolution 4.0.The MAI said this at Affin Hwang Capital Research's Auto Day, which saw the participation of the Ministry of International Trade & Industry, MAI, the Malaysia AUtomotive Association (MAA) and four auto players. "In our view, the tougher restrictions could potentially only target the reconditioned (recon) car market rather than the locally listed foreign carmakers, as we do not expect the government's new policy to negatively impact local assembly operations, which could then also have a detrimental impact on the entire automotive ecosystem," said Affin Hwang in its Friday report.It added that MAA revised its 2018 total industry sales volume (TIV) forecast down to 585,000 units from 590,000 units previously as it expects a short-term dip in demand post implementation of the sales and service tax (SST) in September. "Sales should pick up again by year-end due to the usual festive promotional activities," it said.However, MAA also believes other issues such as the highly saturated local auto market, lack of economies of scale and high excise duties remain dampenders to domestic auto growth.The four industry players that attended Affin Hwang's event were Sime Darby, UMW Holdings, Bermaz Auto and Pecca Group, which were positive over the boost from the three-month tax holiday.Affin Hwang noted that Sime believes the SST sticker price will not deter premium car purchases while Bermaz Auto remains bullish car demand, being the only auto player that will absorb SST for booking made before Sept 1.Meanwhile UMW expects to see a better 2018 due to its healthy product pipeline and extensive product offerings from Komatsu while Pecca will continue to rise on the sustained growth in Perodua car sales.Affin Hwang maintained its overweight stance on the auto sector as it expects a recovery of the TIV and improvement in companies' profit margins.

Continental splits into three units amid shifts in auto industry

as mentioned in The Frankfurt-listed maker of tires, powertrains, interior electronics, chassis components and sensors will split into three separate companies under a holding. "Continental Rubber," focused on the traditional tire business, may also seek a stock listing in the future. The third company, "Automotive," will combine traditional auto parts with the autonomous driving components of the future. Continental's announcement follows a general trend in the automotive industry as automakers and suppliers look at decentralizing their integrated operations to adapt more quickly to changes in the industry. Continental's Powertrain business might start producing solid state battery cells, but it will only decide on the potential investment no earlier than 2021.

FG to inject N300bn into auto industry

By Theodore OparaTHE Federal Government plans to inject N300 billion into the nation's vehicle assembly plants as part of measures to accelerate the development of the automotive industry. Already, contributions into a support fund initiated to facilitate the vehicle production finance scheme has risen to N11bn. Aliyu, further said the auto support fund was an indication of the government's resolve to provide the necessary encouragement for the development of the auto sector. "The council has accordingly applied to the Central Bank of Nigeria, CBN, for the proposed entity operating licensee and concessions to attract additional funding from the Development Finance Institutions. On complaints over the high costs of vehicles assembled locally, Aliyu said "All assemblers have been directed to include a low-cost vehicle in the models they roll out.

Rebates protect Canada's auto industry from retaliatory tariffs

ADVERTISEMENT"That provision in the notice is overwhelmingly directed at the auto industry," said Jesse Goldman, a trade lawyer at Borden Ladner Gervais. Some 85 percent of vehicles built in Canada in 2016 were exported, meaning duty relief programs could refund roughly 85 percent of retaliatory tariffs paid by automakers. The Canadian Vehicle Manufacturers' Association needs to do more analysis before commenting on whether drawbacks could protect his industry, President Mark Nantais said. Flavio Volpe, president of the Automotive Parts Manufacturers' Association, said some companies that make stainless steel parts or hardened steel tools in Canada could benefit. Volpe said just over half of Canadian-made auto parts are exported.

collected by :Catlin Logan