What does the future of the automotive industry look like

s new technologies such as artificial intelligence A to B — will account for at least 30 percent of the market (AI), robotics, and the internet of things (IoT) come in Europe, concentrated at the lower-price end. In the US Aof age, the automotive industry is expected to face and Asia, an even greater proportion is expected. severe disruption. In the near future, given that people don’t want to be bogged down by vehicle ownership or # 2 | Impact of new technologies on the workforce maintenance, experts believe that vehicle production The size of the workforce on assembly lines and in body will split between mass-market, largely no-frills “cars on and paint shops will be halved because of automation and demand” that will be rented journey-by-journey and more the new types of vehicles being assembled. The number customized vehicles for those who still want to drive, or be of shop-floor logistics roles will be reduced by around 60 driven in, their own vehicle. percent, partially because humans will be replaced by autonomously guided vehicles. A high level of automation will be needed to produce both types of vehicles, and every process will be affected — in # 3 | New jobs and the need for new talent fact, the pressure on the workforce is expected to be severe. The number of data engineers required will almost double According to a new report by PwC, the industry workforce in some types of plants, and increase by 80 percent in will be cut by at least 50 percent by 2030, and employees others, while the number of software engineers needed who remain will need very different skills. Automakers must will rise by as much as 90 percent. These new jobs will become data managers and mobility service providers as help the industry make better use of the technologies at well as vehicle assemblers. The think tank studied the their disposal, reducing labor costs, operating expenses, technologies available and the shift in the personal mobility and other overheads — making sure they’re competitive in market and has made some key predictions for 2030: the digital age. In fact, PwC expects that the time required between R&D and the point of production will shrink from # 1 | New workflows, processes, and operations the current three to five years down to two years, to keep Standardized, shared vehicles — used simply to get from pace with technological changes.

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After almost 30 years, the Lexus brand is a quiet success hen Toyota launched its brand-new Lexus segment sales for most of its career; and to the extent it has division from nothing in 1989, it dove deep right recently slipped a place or two (the Audi Q5 occupies the Wfrom the start. The 1990 Lexus LS400 full-size top spot), that's likely more a result of internal competition sedan was a cruise missile aimed straight at the European from its smaller sibling, the NX. prestige sedans that then represented the pinnacle of automotive engineering. It didn't fall short. The LS400 Sales are up was everything a large prestige sedan should be. Almost overnight, it established Lexus's credibility. And that cred Still, RX sales are up 17 per cent this year and a new RX-L would only grow with time, as consumers discovered the with three-row seating should bring further gains. The NX intangibles of Lexus ownership – the unique dealership currently ranks fifth in luxury SUV sales, and the CUV pair experience, the quiet reliability of the cars. are easily Lexus's top sellers. Its third-best seller, the IS Given the rarefied air of its market, the LS400 was never compact sport sedan, is an also-ran among its own peer expected to generate big sales numbers. The volume group, outsold three to one in Canada by the Mercedes would come with its co-debutant, the ES, and other more C-Class and more than two to one by both the Audi A4 mainstream models that joined the lineup over the years. and BMW 3 Series. The Lexus mid-size sedans, ES and Almost three decades later, Lexus currently fields 10 GS, rank 13th and ninth in their respective categories. distinct products and its street cred remains intact. "The ES has been one of their less inspired products," IHS Markit's Brinley noted. "But the RX and NX are doing well ‘A new benchmark’ and that's [in the segment] where people are shopping."

In Canada, through October this year, it outsold both its And the LS? A bold new design arrives early next year and been successful." this year – up 12.8 per cent through October. "Lexus firmly fellow Japanese competitors, Acura and Infiniti, as well as should reignite interest in a nameplate that has become Brian Murphy, vice-president of research and editorial established itself as a luxury brand and now we're taking the Americans – Cadillac and Lincoln – and Volvo and virtually forgotten of late. Through October this year, the with vehicle valuation company Canadian Black Book, that even further, moving towards a luxury lifestyle brand Jaguar-Land Rover. The Germans, not so much. Overall, current LS – which dates back to 2006 – had racked up cites another measure of Lexus's success: "We see them with our new global branding." The new LC coupe, while Lexus ranks a fairly distant fourth in the luxury market, 39 sales in Canada while the segment-leading Mercedes as successful from the retained-value standpoint. This too exotic to ever be a big seller, is another image builder behind Mercedes-Benz, BMW and Audi (in that order). S-Class was up to 792. Of course, sales success isn't only year, seven of their vehicles finished in the top three in our for the brand, with its standout styling, rambunctious V8 So is Lexus a success? "Lexus set out to define a new about whether individual models outsell their segment CBB Best Retained Value award." So in the luxury market, performance and genuinely athletic handling. "It's going to experience in the luxury market and I think it achieved rivals. It's also a question of "being there." Currently, Lexus there's arguably more to success than just sales numbers. bring younger people to the brand. And we'll continue to that," Lexus Canada chief Jennifer Barron says. "It set a lacks an entry in the fast-growing category of subcompact But in fact, Lexus is a player in numbers, too. Don't be do that without losing sight of the importance of the guest new benchmark for the guest experience." CUVs such as the Audi A3 and Mercedes GLA. And its misled by its rankings in Canada. In the much larger US experience that always has been and always will be the "Certainly, Lexus is a success," concurs Stephanie Brinley, only sports car is the just-launched LC. The LC is key to market, Lexus has historically taken turns as the top-selling foundation of the brand," Barron said. senior analyst with IHS Markit. "It went from just an idea Lexus crafting itself a more dynamic image, but Brinley luxury brand. And when it's not on top it's usually in a very Meanwhile, the only Lexus that comes close to dominating to being a top luxury brand."Right now it's working to says it should be handled carefully. "As they instill more close contest with Mercedes-Benz and BMW in the top its segment in Canada is the RX (appropriately, it's the install more passion and excitement and looking to refine passion, one of the things to be careful of is not to alienate three. vehicle that invented the car-based luxury its personality," Brinley adds. "But that's a reflection of the owners that do love their more quiet nature." As for Canada, Barron points out that Lexus sales are rising segment when it launched in 1997). The RX has led evolution over time and not an indication that it hasn't

10 million cars later, the Mustang is still a revelation he raw numbers behind the Ford Mustang are has been… but that’s not quite the case. The second was – and is – the Mustang. Even though it does engage People also love it because it’s a car that says something distracting, to say the least. Keeping the same iconic iteration lasted just five years after being hamstrung by a in them from time to time, in truth it’s above power wars. about them; something positive. Choosing a Mustang says Tnameplate for the last 54 years has meant that sales series of oil crises, while the third stab at the formula had It’s above perceived technical flaws. Most importantly it’s that you value freedom, fun and character over boring have naturally stacked up, but to reach 10 million is a to last some 15 years. Ouch. And yet the American public above petty criticism. Say what you like; it doesn’t matter. everyday concerns like having five doors and averaging huge, huge achievement for any car, let alone a pony car stood by it and carried on buying it. The Mustang is uniquely cool and always will be. Even the 50mpg. It says that you’re an interesting human, willing – or sports car, depending on which side of the Atlantic Why? Because the Mustang had already made its mark. divisive third- and fourth-generation cars have their fans. to make interesting choices in the face of a hundred you get your press releases. It inked its identity deep into the US consciousness. The The thing about the Mustang is that legions of people want more sensible options. In 1964 the Mustang captured the By contrast the European sports car icon, Porsche’s 911, mere memory of the superb first generation kept the model to love it. That name helps. It feels so good when it rolls off imaginations of tens of thousands of people who were so, emerged one year before the first Mustang and in the same afloat through lean times. The your tongue. I’m just going out in my Mustang. Feels good, so ready for that car to exist. 10 million Mustangs have kept count of years managed one million sales. Mind you, Mustang right? the faith all this time. Fast-forward to 2018 and today’s the Porsche is quite a bit more expensive, but Mustang is the car 10 million Porsche was ecstatic about its achievement more people need – but so Ford has every right to lose its mind most of them probably over what the Mustang has done. don’t know it yet. It takes so many stars to align to make a car last as long as the Mustang. The fact that after five and a half decades we’re only on the sixth generation seems to tell a story about how long-lived each model

Ford dreams up a way to kill new car smell n the US, you can buy fragrances that emulate no known health effects. the new-car smell. In China, such an idea would The process detailed by Ford in its patent application Iseem utterly absurd because consumers loathe that proposes using heat to speed up the off-gassing by lingering scent. Ford has long known this, having hired “baking” the car in the sun. The baking process would “golden noses” in China whose job is to sniff car parts, be accompanied by opening at least one window, sending them back when their scent is deemed offensive. turning on the heater, turning on the fan, or running the Adding to its research in the area, the company on Nov engine. Ford’s proposed system would use sensors to 8 filed a patent application for a process that purports to determine if the intensity of the sunlight and the ambient remove the smell, reports the Detroit Free Press. temperature are high enough to trigger the off-gassing and to measure the level of VOCs. According to JD Power, more than 10% of drivers in China—the world’s largest auto market—complained The patent application is “just one idea” Ford is about the new-car smell in its 2018 survey. As Quartz considering, Debbie Mielewski, the company’s senior has reported in the past, Chinese consumers who are technical leader for materials sustainability, told the car shopping think the odor is a bigger problem than Free Press. There are no concrete plans to put it into poor fuel economy and wind noise, as some worry the production, if the patent is even ever granted, she says. smell could be a health hazard. And to be sure, Ford regularly tries to patent a lot of really weird ideas. It’s understandable why they might think that. According to Ford’s application, the new-car smell is Though Ford has clearly spent time thinking about this caused primarily by the off-gassing of volatile organic problem, the company told the Free Press it doesn’t compounds (VOCs) from the vehicle’s materials, such have specific plans to deploy the technology in its as plastic, leather, and vinyl. In addition, the adhesives, vehicles yet. “This patent is the result of years of research glass cleaners, and sealants used in the manufacturing and is just one idea we are considering for future use,” process can also contribute to the odor. The US Debbie Mielewski, senior technical leader in materials Environmental Protection Agency notes that exposure sustainability at Ford, told the newspaper. to VOCs can have health effects ranging from headaches to memory impairment, though some chemicals have

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Geely in strategic venture for car-sharing models eely Automobile Holdings logged the first profit far to go by the end of the year to reach its annual target at its joint venture with Sweden’s Volvo Cars of 150,000 units. This figure represents part of ’s Gproducing autos designed for car-sharing, part of annual volume goal of 1.5 million units, yet An said “no a banner first half in which the company defied China’s changes will be made” to either target. Five new Geely- slower sales growth for new cars. brand models and one or two from Lynk will be released Geely Automobile sold 766,630 vehicles group wide in the latter half of 2018, and “that in itself” will stimulate during the January-June half, up 44% on the year, and sales, An said. The company also should benefit as the boosted net profit attributable to shareholders by 54% to strong season for auto sales in China begins around this 6.67 billion yuan ($975 million), the Chinese automaker time of the year. said Wednesday. Growth in new-auto sales across China Lynk plays a crucial role in upgrading Geely’s brand decelerated to 5.6% year-on-year for the six-month period. image and competitiveness. Though Geely-branded The Chinese-Swedish venture Lynk & Co. began sales of cars outnumbered most competitors by volume sales, its first , the 01 SUV, last November the average unit price of 73,308 yuan represented just in China. Lynk sold 46,252 units during the first half an incremental 0.3% increase from the year before. of 2018 and recorded a net profit of 342 million yuan, Asked about this breakneck volume growth without Hong Kong-listed Geely said. Geely Automobile holds a price hike, An noted that the unit price would rise by 50% of Lynk, which means the venture contributed 171 7% if Lynk vehicles were included. The suggested retail million yuan to the automaker’s bottom line. Volvo owns price for the Lynk 01 model is between 158,800 yuan 30%, while Zhejiang Geely Holding Group -- the unlisted and 202,800 yuan. Lynk also serves as a spearhead for parent of both automakers -- holds 20%. “The company Geely’s globalization endeavor, along with Malaysia’s made profit after only half a year,” said An Conghui, who Proton -- in which the Chinese automaker acquired a doubles as president of Zhejiang Geely and executive 49.9% stake from Malaysian conglomerate DRB-Hicom. director of Geely Automobile. Reports of an upcoming initial public offering by Volvo An cited solid demand for the vehicle -- which the company Cars were dismissed. Daniel Li Donghui, who doubles touts as the first mass-produced model with a “share” as vice chairman of Geely Automobile and chief financial button that lets the owner select times when the car could officer of Zhejiang Geely, said the group “has not made be rented for a fee -- saying customers queue up for three any relevant decision so far.” months to get it. The backup results from short supply of the engines from Volvo, due to robust demand for the Li acknowledged that investment banks are time,” he said. The Financial Times recently reported that response to Geely’s robust results, announced during the Swedish cars. But An pledged “a fundamental resolution “recommending the management to list.” But the Swedish Volvo Cars intends an IPO later this year in Stockholm lunch break, was muted. Shares closed at 16.54 Hong to the problem by next January.” automaker is very profitable with an abundant cash flow with a possible secondary listing in Hong Kong, where Kong dollars, a 0.97% rise, edging out the benchmark Though Lynk already has made a profit, the venture has and has “no fundraising need within a short period of its valuation could reach $30 billion. The stock market Hang Seng index’s rise of 0.62%.

Geely showcases first car for Southeast Asia hejiang Geely Holding Group unveiled on completely built and fitted with advanced safety features November 22 its first right-hand drive vehicle in found in Volvo, the Swedish automaker that is now also ZMalaysia, aiming to sell it to the wider Southeast owned by Geely. They include autonomous emergency Asian market. Proton X70, a sport utility vehicle, is the first braking and a blind spot information system. Its interior made by Geely a year after Malaysia sought the Chinese boasts touch screen display panels, another first in a company’s help in turning around its national carmaker Proton vehicle. Proton and propelling it into a well-known regional brand. The model will ultimately be assembled in the second Geely holds a 49.9% stake in Proton, and Malaysia’s half of 2019 at Proton’s Tanjong Malim plant, currently DRB-Hicom the remaining. undergoing a refurbishment to increase annual capacity Modeled after Boyue, one of Geely’s best-selling cars from 150,000 units to 250,000 units. The plant will in China, Proton X70 is the first of three makes to be also house Geely’s development and production hub launched under Proton’s 10-year restructuring plan that in Southeast Asia. Once the plant is in full operation also includes an upgrade to its dealership network and equipped with the latest production system used by aftersales services, as it tries to compete in a market Geely and Volvo, each Proton X70 will contain 80% local controlled by Japanese marques. parts and materials so that it can maintain its national With Geely on its side, Proton’s competitive edge will be car status, said Rashid. To achieve this, local vendors are enhanced as it will have access to advanced technology at collaborating with Geely’s suppliers from China as part of reasonable cost, said Abdul Rashid Musa, chief executive technology transfer. of Proton Edar, the automaker’s distribution arm. “In “As quality control and procurement come under Geely, Southeast Asian economies like Thailand and Indonesia, such collaboration will give our local vendors a boost,” said the markets are still growing,” said Rashid. Both economies Rashid. In the first nine months of the year, Proton sold account for about 60% of the 3.36 million units of total nearly 50,000 units, controlling about 11% of the market, vehicles sold in six major Southeast Asian nations in 2017. data from an industry association showed. Despite strong Under the leadership of Proton CEO Li Chunrong, prelaunch reservations for Proton X70, the company is still Hangzhou-based Geely has been beefing up its Malaysian likely to see a sixth year decline in sales this year, wrote sales network in the past year, encouraging about 70% Affin Hwang Capital in a research note on Wednesday. of its dealers to upgrade from a mere sales showroom to The 1.8 liter -operated Proton X70 launched include facilities such as aftersales services and spare part on December 12. sales. The Proton X70 introduced on Thursday comes

, , Sky s the limit for Geely chairman Li Shufu s ambitions

ntil recently, Li Shufu, chairman of Zhejiang taken steps to strengthen its role as a mobility service Geely Holding Group, seemed determined provider. It bought flying-car developer Terrafugia in Uto build a global automotive empire. Now it 2017, and the Woburn, Mass., company is set to deliver appears that’s only part of the story. It turns out Li’s its first product, a two-seat small aircraft, in the US next mission is to expand Geely’s reach beyond the auto year. industry to provide mobility services in areas few others would dream of. In June, Geely formed a three-way partnership with Chinese Internet giant Tencent Holdings and state- At an international air show this month in the south owned China Railway Corp. to provide Internet-based China city of Zhuhai, Geely struck a partnership deal services such as ride-hailing for rail passengers. And last with China Aerospace Science and Industry Corp., a month, Geely established a joint venture with Daimler to state-owned developer of spaceships, satellites and provide ride-hailing services in China after Li acquired missiles. The partners want to develop high-speed trains a nearly 10 percent stake in the German giant. Li is an using magnetic suspension technology that would travel accomplished leader and a skillful deal-maker in the auto in a near-vacuum tube at more than 600 mph. industry. It will be intriguing to see what steps he takes to lead Geely toward a lofty goal of becoming a digital The alliance also plans to launch low-orbit satellites with transport service provider across multiple industries. the goal of building “a three-dimensional digital transport network for maritime, land and air transportation,” Geely said in a statement after signing the deal with China Aerospace. Such plans may sound like fantasy. But when the mastermind is Li Shufu, a 2018 Automotive News All Star, they shouldn’t be dismissed. Li has proved to be an effective and visionary leader in the auto industry.

He has achieved stunning business success in transforming Geely from a little-known motorcycle manufacturer into the largest and most profitable Chinese carmaker. Geely, which started producing cars in 1997, is the third-largest passenger vehicle maker in China, behind Volkswagen Group and General Motors. The company’s first-half net income surged 54 percent to 6.7 billion yuan ($967 million). Li has engineered an impressive turnaround at Volvo Cars after buying the Swedish brand from Ford Motor Co. in 2010.

He is now making solid progress in reviving two venerable UK brands acquired over the past few years — London Taxi and Lotus, an engineering and sports car specialist. Moreover, with Li at the helm, Geely has

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Infiniti electric crossover concept teased ahead of Detroit debut ports car enthusiasts are still patiently waiting for vehicle at a first glance, look closer and you’ll notice the the Project Black S coupe to get a production outline of the rear doors. A gently sloped roofline gives the Sversion using F1 hybrid tech, but Infiniti knows the concept a sporty appearance, which hopefully continues real money comes from the crossover segment. For this at the back. reason, next month’s Detroit Auto Show will be the venue We certainly like what we’re seeing so far, and given where Nissan’s upscale brand will introduce a fully electric Infiniti’s recent success with gorgeous showcars such as concept set to provide a taste of things to come in terms of the Prototype 10 and the Q Inspiration, the new zero- a broad EV portfolio. emissions crossover should be quite a looker as well. We only have this shadowy teaser image for the time We will have to wait until January to see it in the metal being, showing a curvaceous crossover with sleek LED at NAIAS where the Japanese marque will celebrate 30 headlights and side cameras instead of conventional years of existence. mirrors. Both the Infiniti badge and lettering underneath it The Detroit show will also serve as the place where the are illuminated, as is the outline of what would be a grille brand is going to present a new platform specifically on a conventionally powered vehicle. engineered for EVs ahead of a planned electrification push Typical for a concept, the yet-unnamed electric CUV scheduled to begin in 2021. Infiniti refers to the concept sits on a set of oversized wheels and doesn’t have any as a “future fully electric crossover,” which can only mean visible door handles. Although it may seem like a two-door that it will have a production equivalent in a few years from now.

GMC Sierra AT4 gets an off-road performance package MC is making its 2019 Sierra AT4 available with a new Off-Road Performance Package, the truck maker recently announced. Included in the package is a 2-inch lift; 4WD with a two-speed transfer case; locking rear differential Gand skid plates; off-road-tuned Rancho monotube shock absorbers; Hill Descent Control; Traction Select System; and a GMC-exclusive MultiPro Tailgate. On the outside, things have changed slightly to give the truck a more aggressive look. The fog lamp bezels, fender surround, and grille insert have a black chrome finish; while the grille surround, door handles, and bumpers are body-colored. The tow hooks are also red now! Available to add on is a segment-first Multi-Color Head-Up Display, and a segment-first Rear Camera Mirror. Also available is an industry-first carbon fiber bed, which should take a lot of weight off while still offering plenty of toughness. The engine in the AT4 is now Wards Auto-award-winning, and the performance package adds 15 horsepower and nine lb-ft of torque to the standard mill so it makes a total 435 hp and 469 lb-ft from its 6.2-litre V8. Power gets to the ground via a 10-speed automatic transmission and 18-inch aluminum wheels wrapped in Goodyear Wrangler DuraTrac tires. “The 2019 GMC Sierra AT4 debuted all-new, purposeful technologies for the premium truck segment and the new Off-Road Performance Package takes it a step farther,” said Duncan Aldred, vice-president of Global GMC. “It offers optimized performance, both on- and off-road.”

Nissan launches new LEAF in Thailand hailand finally sees a Nissan LEAF. Nissan, as car to be more than just a car. That vision includes our promised one year ago, introduced the Nissan LEAF commitment to helping electrify Thailand. The launch Tin Thailand, presenting its flagship EV at the Thailand here today is a core milestone of that joint effort between International Motor Expo 2018. Interested customers can Nissan, the auto industry, the Thai government, and place a pre-order/reserve the LEAF, which starts from related agencies.” 1,990,000 Thai baht (over $60,670), but deliveries will start in April 2019. Thailand is one of several additional “The all-new LEAF is built upon over 70 years of markets that joins the initial list of countries where you can electric vehicle heritage. This includes the 1947 Tama, buy a LEAF around the world. Antoine Barthes, president, Nissan’s first EV model. It is a total rethink of the driving Nissan Thailand said: experience, making a car more than just a car, and creating an exciting and more sustainable future for all,” “Interested customers can reserve their all-new Nissan LEAF starting today at the cost of 1,990,000 million “But this is only the beginning. The Royal Thai Thai baht for delivery in April 2019, and will receive a government, as part of its ‘Thailand 4.0’ initiative, vehicle warranty for 3 years or 100,000 kilometers, an is also pushing for smarter, stronger, more efficient EV system warranty for 5 years or 100,000 km and a mobility solutions and reliable electric systems to battery deterioration warranty for 8 years or 160,000 km. power the vehicles of tomorrow. Nissan will continue Currently, 33 certified dealers across the kingdom will also partnering with them on the electrification of the offer product information, skilled engineers and aftersales Kingdom. services.”

“Bringing the all-new LEAF to Thailand further underscores Nissan’s vision for the future of mobility, which we believe will help move people to a better world, a world that is more electric, more connected and more autonomous. And we believe that the all-new Nissan LEAF will transform the way you drive and live,”.

“With this all-new LEAF, our valued Thai customers will be able to own a piece of the future through the most advanced and accessible EV on earth. As the company pioneering breakthrough solutions to fundamentally enhance the city of the future, Nissan is re-thinking the

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