Tag Archives: Industry

China’s Geely Reportedly Forming New JV With Renault, Could Allow Duty-Free Cars Into The U.S.

December 22, 2021 admin

Geely and Renault are rumored to be on the verge of announcing a new partnership. The two companies are reported to have been working on a joint venture since the beginning of the year, with the details finalized and an announcement imminent.

The venture will help create a new plug-in hybrid-focused automotive brand, reports Reuters. Chinese automaker, Geely, is expected to provide their CMA architecture that both Geely and Volvo currently use. Renault will focus its attention on design and marketing, focusing on the world’s largest car market — China.

A Chinese Re-entry For Renault, South Korean Lynk & Co For Geely

The deal will allow Renault to re-enter China, which it exited a year ago when a JV with Dongfeng was dissolved. It may also be a way for the French company to expand its presence throughout Asia, with particular attention paid to its South Korean assembly plant that has manufactured vehicles under Renault Samsung Motors. Renault has held an 80% stake in Samsung Motors since 2000 and is South Korea’s third-largest automaker.

Geely may be able to gain access to any number of Renault’s production facilities, but it’s thought that the Busan plant in southeastern South Korea is of particular interest. According to the report’s unnamed sources, Lynk & Co, a brand under Geely, may produce its 01 SUV locally, with other hybrid offerings from the brand being considered. These could be sold under the Renault Samsung name.

Geely’s Ticket To The U.S.

In addition to propping up Renault Samsung (whose sales have been waning) and gaining access to the Korean market, there’s another significant benefit for Geely.

By producing vehicles in South Korea, the Chinese company could very well gain a form of duty-free “backdoor entry” into the U.S. market. Sino-U.S. tensions have hurt trade for Chinese automakers trying to break into the second-biggest car market in the world. But the deal with Renault could open up the possibility of utilizing South Korea’s free-trade agreement with the United States to export its Lynk & Co vehicles.

As of yet, there is no solid indication of a time frame for an announcement. It also isn’t quite clear where this arrangement will fit in with the Renault-Nissan alliance.

The Revived Moke Will Be Produced In The UK Instead Of France

September 23, 2021 admin

Remember the New Moke that was launched two years ago by a company called Moke International? Well, the reinvented Mini-based buggy is still alive and it will now be entirely produced in the UK thanks to a new agreement with Fablink.

As reported by Autocar, the deal was enabled by a UK government grand. Recently, the EU and UK signed an agreement on tariff-free trade, making UK-based car production viable for small automakers who intend to export in the European Union. Moke International wanted to bring the Moke in the US market in 2021, but plans were delayed supposedly due to the pandemic.

Moke International acquired the trademark and distribution rights of the car before initiating limited production in 2020 with a starting price of £20,000. This means that the new Moke has nothing to do with BMW Group’s MINI, besides being a part of its heritage.

Looking identical to the original 1964 Mini Moke that was sharing its underpinnings with the Alex Issigonis-designed Mini, the new Moke is said to be slightly larger to provide more cabin space. The FWD buggy is fitted with an updated 1.1-liter four-cylinder petrol engine producing 67 hp (50 kW / 68 PS), allowing a top speed of 68 mph (109 km/h). It also features upgrades on the suspension, brakes, and chassis.

Since 2020, the Moke was engineered and sub-assembled in Britain’s Midlands region before being shipped to Cerizay, France for the final assembly. Thanks to the new agreement with Fablink – a manufacturing firm based in Northamptonshire – the whole process will now take place in UK facilities. Fablink currently has six factories in the UK, employing a total of 700 people, and has undertaken manufacturing and engineering work for companies like Land Rover and Morgan.

PHOTO GALLERY

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Polestar Banned From Using Its Logo In France For Six Months

November 10, 2020 admin

The three-year legal dispute between Citroen and Polestar has resulted in a French court temporarily banning the latter’s logo.

As we have reported earlier, Citroen claims that the logo of Polestar is too similar to its own double chevron badge and that of its premium DS brand. The French carmaker first asked parent company Volvo to stop using the Polestar logo in 2017, but the Swedish company refused.

Polestar now confirmed to Autocar that there’s an ongoing legal case in France, with a company spokesperson adding: “Polestar does not operate in France and we currently have no plans to operate in France. There is an ongoing legal case in France concerning the use of the Polestar logo, initiated by Citroën.”

“Whilst we cannot comment on the details of the case, we strongly believe in the position of our brand and logo. We recognize that as a new, exciting car brand on the market with ambitious plans to raise the profile of electric mobility, we may gather attention from established automakers. The case only relates to France and does not apply to any other countries.”

Citroen first took their case to the European Intellectual Property Office with no success. A French court however sided with them, ordering Polestar to stop using their logo for six months, starting in July 2020, and pay €150,000 ($177k in current exchange rates) to the French carmaker, plus €70,000 ($82k) in legal fees.

It’s not clear yet what will happen when Polestar’s six-month logo ban will expire this January.

FCA CEO Mike Manley Excluded From Stellantis Board

September 30, 2020 admin

The PSA Group and Fiat Chrysler have named the 11 members of Stellantis’ board of directors, with one notable absence. While PSA boss and future Stellantis CEO Carlos Tavares is on the board, FCA CEO Mike Manley was excluded.

As part of an agreement signed between PSA and FCA in December of 2019, the Stellantis board will only have two executive members, which will be Tavares and current FCA chairman, John Elkann.

Fiat Chrysler will reportedly announce Manley’s new role within Stellantis sometime “before the merger completion”, which is expected to close in Q1 of 2021.

Read: PSA Group Buys Back Shares From Dongfeng As Part Of FCA Merger Agreement

Elkan will also serve as chairman of the board, with Robert Peugeot, the head of the Peugeot family acting as vice chairman. Meanwhile, Andrea Agnelli, president of Italian soccer club Juventus and a member of the Agnelli-Elkann family, will be the second board member representing FCA in Stellantis.

Each carmaker ended up nominating five members in addition to Tavares, and of the 11 total, seven are considered independent, as reported by Autonews Europe. The senior independent director will be Henri de Castries, former CEO of AXA and a board member for multiple other companies, including Nestle.

The other six independent board members are: Fiona Clare Cicconi (FCA), Nicolas Dufourcq (PSA), Ann Frances Godbehere (PSA), Wan Ling Martello (FCA), Jacques de Saint-Exupery (PSA), Kevin Scott (FCA) – Dufourcq also happens to be the general manager of Bpifrance, the investment fund that holds 12% of PSA.

While Manley’s future new position is currently unclear, Tavares previously stated that the two have been communicating daily as they work towards completing the merger.

By joining forces, PSA and FCA are set to create the world’s fourth-largest carmaker by volume, after Toyota, VW and the Renault-Nissan Alliance.

UK’s Post-Brexit Tariff Regime Settles On 10% Car Import Tax

May 19, 2020 admin

The UK’s new post-Brexit tariff strategy, in place for January 2021, has finally been agreed upon, maintaining a 10% tariff on cars but cutting levies on supply chain imports. The new regime is said to be less complex than the EU system.

Britain is now looking for free trade agreements with countries around the world and wishes to have deals in place covering 80% of all British trade by 2022, as reported by Reuters.

The regime, also known as UK Global Tariff, is also said to be cheaper than the EU’s Common External Tariff, and will also apply to countries with which the UK has no agreement, while removing all tariffs below 2%.

“Our new Global Tariff will benefit UK consumers and households by cutting red tape and reducing the cost of thousands of everyday products,” said International Trade Secretary, Liz Truss.

The British government also said that tariffs will be eliminated on a wide range of products, with 60% of trade coming into the UK tariff-free, either on WTO terms or through existing preferential access. However, the UK will keep in place tariffs on products competing with industries such as agriculture, automotive and finishing, cutting levies on 30 billion pounds ($37 billion) worth of imports entering UK supply chains.

“Keeping agricultural protection makes sense as a bargaining chip for the EU & US trade negotiations. But means big cost increases for agriculture imports if no UK-EU FTA,” said Thomas Sampson, Associate professor at the London School of Economics.

The UK also wants to remove tariffs on products which support energy efficiency and will introduce a temporary zero tariff on goods being used to combat the COVID-19 pandemic – such as personal protective gear.

To summarize, the new trade plan is meant to protect the farming and automotive industry, while scrapping tariffs on household items such as dishwashers, freezers, gardening tools and many food and sanitary items.