Article Type: News

VW Group plans for cheaper EV-battery mass production

Volkswagen (VW) Group has presented its technology roadmap for batteries and charging up to 2030. The carmaker has also indicated that by ramping up its plans, jobs will need to be sacrificed.

The OEM will establish six gigafactories in Europe with a total production capacity of 240GWh by 2030. It will also expand its public fast-charging network, having announced cooperation with BP in the UK, Iberdrola in Spain and Enel in Italy.

Its new roadmap aims to significantly reduce both the battery’s complexity and cost, making electrically-chargeable vehicles (EVs) attractive and viable for consumers. At the same time, it will shorten its supply chain and control as much of the EV production of as possible.

‘E-mobility has become core business for us,’ commented Herbert Diess, chairman of the VW Group board. ‘We are now systematically integrating additional stages in the value chain. We secure a long-term pole position in the race for the best battery and best customer experience in the age of zero-emission mobility.’

Manufacturing control

As the market leader in Europe, VW Group knows it is responsible for delivering affordable electromobility as the industry transitions away from internal-combustion engine (ICE) technology. While some carmakers have announced plans to go EV-only, the carmaker is creating a sub-brand for its Volkswagen marque. Stablemate Bentley is choosing to focus on battery-electric vehicles (BEVs), and Porsche is investigating eFuels. All VW Group brands will feature electrification in some way. This means the carmaker will need an excessive amount of batteries, both for BEV and plug-in hybrid (PHEV) models.

‘Together with partners, we want to have a total of six cell factories up and running in Europe by 2030, thus guaranteeing security of supply’, explained Thomas Schmall, VW Group board member for components.

To achieve its aims, VW Group will increase its order of batteries from its supplier Northvolt by €14 billion. It will focus production of premium cells at its factory in Skellefteå, Sweden, which will see manufacturing begin in 2023 and increase gradually to an annual capacity of 40GWh. The carmaker will also purchase outright the joint venture it has with Northvolt for a gigafactory in Salzgitter.

‘Volkswagen is a key investor, customer and partner on the journey ahead, and we will continue to work hard with the goal to provide them with the greenest battery on the planet as they rapidly expand their fleet of electric vehicles,’ said Peter Carlsson, co-founder and CEO of Northvolt.

The company is considering potential sites and partners for the other factories.

Cheaper batteries

As well as increasing production, VW Group wants to lower the cost of batteries, making vehicles more affordable as a result. ‘We aim to reduce the cost and complexity of the battery and at the same time, increase its range and performance,’ added Schmall. ‘This will finally make e-mobility affordable and the dominant drive technology.’

Therefore, by 2023, the company will introduce a ‘unified cell’, which will feature in 80% of all EVs in the group by 2030. This plan will allow the carmaker to introduce different chemistries into a standard battery-cell design, which will reduce costs while ensuring that each model retains a unique power or range attribute.

Further savings will be delivered by optimising the cell type, deploying innovative production methods, and consistent recycling.

VW Group will gradually reduce battery costs in the entry-level segment by up to 50% and in the volume segment by up to 30%. ‘We will use our economies of scale to the benefit of our customers when it comes to the battery too. On average, we will drive down the cost of battery systems to significantly below €100 per kilowatt-hour. This will finally make e-mobility affordable and the dominant drive technology,’ said Schmall.

Expanding charging infrastructure

In order to facilitate mass-adoption of its EVs, the OEM is also looking to expand its fast-charging network and has partnered with local providers in key markets to achieve this.

Along with its partners, the company intends to operate about 18,000 public fast-charging points in Europe by 2025. This represents a five-fold expansion of the fast-charging network compared to today.

The carmaker wants to establish about 8,000 fast-charging points throughout Europe together with BP. With a charging capacity of 150kW, the fast chargers will be installed at 4,000 BP and Aral service stations, with the majority of these in Germany and Great Britain. In cooperation with Iberdrola, Volkswagen will cover the main traffic routes in Spain. In Italy, it will collaborate with Enel to establish a fast-charging network both along motorways and in urban areas. The carmaker will also continue its activities as part of the Ionity joint venture.

Job losses

While the roadmap promises cheaper EVs with increased production, the carmaker is also poised to cut jobs to reduce costs.

In agreement with its works council, the group will freeze its workforce size at the January 2021 level and open up an extensive retirement package. It will offer partial retirement to employees born in 1964, as part of the digital transformation roadmap. It will reopen partial retirement for those born in 1961 and 1962, and launch an early-retirement programme for those born between 1956 to 1960.

‘Disciplined cost management will continue to be necessary to finance the required investments in the future, to remain competitive and, above all, to make it possible to safeguard jobs in the long run,’ commented Gunnar Kilian, chief human resources officer of Volkswagen AG. ‘The measures set out in the guidelines provide the right solution for this. We are strengthening the internal transformation of our workforce and creating jobs in forward-looking areas – through training and targeted external recruitment. For this purpose, we are also increasing our training budget by €40 million to a total of €200 million.’

Based on experience, the company expects up to 900 employees to volunteer for the short-term early-retirement models, with a low four-digit figure for partial retirement.

Only battery and hydrogen cars to be sold in the UK from 2035

The UK government has published the results of a consultation on banning new fossil-fuel vehicles. The document confirms a phased approach to zero-carbon-only registrations beginning in 2030.

The first step will see new petrol and diesel models banned from sale. Vehicles that can travel a ‘significant’ distance on zero-emission technology, including some hybrids and plug-in hybrids (PHEVs), will be sold until 2035. After this point, only zero-carbon technologies, such as battery-electric (BEV) and hydrogen fuel-cell electric vehicles (FCEVs), will be available.

Another consultation later this year will determine what constitutes a ‘significant’ distance that hybrid vehicles need to travel emission-free.

The consultation around the advancement of dates reviewed four key areas of concern over the plans. These included the readiness of the chargepoint infrastructure, the preparedness of the vehicle-manufacturing industry, inadequate battery supply, and the impact on consumers.

Some vehicle manufacturers raised concerns that hydrogen-fuel infrastructure provision had not yet been rolled out to an extent that would stimulate the uptake of FCEVs. These respondents stated that this is particularly important for ensuring all car and van market segments can transition to zero-emission, especially those that may not be suitable for BEVs.

However, in response to these concerns, the government highlighted the various funding schemes in place to increase infrastructure and support manufacturing. It pointed towards a report by the Faraday Institution that suggested 1.6 million BEVs a year would be built in the UK by 2040, with an additional 40,000 jobs created in the sector by 2030.

UK manufacturing

There is a mixed response amongst manufacturers over the future of their UK plants. Nissan and Jaguar Land Rover are dedicated to building BEVs in the country, with the Japanese carmaker bringing battery production to the UK. However, Stellantis is concerned about the UK’s 2030 ban and is in talks with the government to secure funding for the future of Ellesmere Port.

‘As soon as you say that we are going to ban the sales of this kind of car, we will stop investing,’ Stellantis CEO Carlos Tavares commented at the launch of the merged automotive group. ‘If we are told that in 2030, internal combustion engines cannot be sold in the UK, which we respect as a decision from the country, then we are not going to invest in ICE anymore because that makes no sense.’

In response to concerns over hydrogen, the consultation response document states: ‘The FCEV and hydrogen refuelling market is in its infancy and government has taken steps to support its growth in the UK. The transport decarbonisation plan will discuss the potential role for hydrogen in decarbonising the transport sector, including road transport.

‘In addition, we have announced plans to publish a hydrogen strategy, which will set out a whole system view of developing the UK hydrogen economy, including how we will work with industry to create 5GW of low-carbon hydrogen production for use across the economy by 2030.’

There was also discussion around eFuels, which can significantly lower the emissions from internal combustion engines. However, the consultation response highlights the unknown nature of emissions from this technology. ‘By 2035, zero must mean zero,’ it states.

Funding round

The UK government is launching a research and development competition for electrically-chargeable vehicle (EV) innovations. Those entering could benefit from a share of £20 million (€23 million) in funding. This comes following the publication of consultation results surrounding a ban on fossil-fuel vehicles from 2030.

The investment fund is part of the government’s drive to ‘build back greener’ following the economic damage inflicted by COVID-19. Technologies that could benefit include zero-emission emergency vehicles, charging technology or battery-recycling schemes. It hopes that the EV design and manufacturing sector could create around 6,000 skilled jobs.

‘Investing in innovation is crucial in decarbonising transport, which is why I’m delighted to see creative zero-emission projects across the UK come to life,’ commented transport secretary Grant Shapps.

‘The funding announced today will help harness some of the brightest talents in the UK tech industry, encouraging businesses to become global leaders in EV innovation, creating jobs and accelerating us towards our net-zero ambitions.’

Innovative ideas

Previous winners of government research investment include a zero-emission ambulance prototype. Designed by ULEMCo, it can reach speeds of 90mph and travel an average of 200 miles a day with zero-emissions. Another successful entrant was Urban Foresight, which used its £3 million share to develop ‘pop-up’ street chargers. These are located in pavements and provide discreet access to charging infrastructure for those without off-street parking.

The uptake of EVs is increasing in the UK. As the technology also plays a crucial role in the government’s ‘Road to Zero’ plans, more needs to be done to support the sale of the technology with new innovations and ease-of-access to infrastructure.

By releasing this latest funding now, the government also hopes to have new ideas and technologies in place in time for its ban on new fossil-fuel vehicles coming into action in 2030.

The Van’s Headlights: The Life and Times of a British Conglomerate

Successive UK politicians continue a generational battle to keep Britain’s homegrown manufacturing alive, even while pure economics would have consigned them to history many times over.

One particular manufacturing company that had more problems than many over the years, with name changes, mergers and buyouts rarely improving its profit forecast was the British powerhouse of British Leyland Motor Corporation Ltd (BLMC). In this article, Glass’s Chief Commercial Vehicle Editor, Andy Picton, takes a potted look at BLMC’s struggles with light commercial vehicles (LCVs).

History

BLMC formed in 1968 with the merger of British Motor Holdings (BMH) and Leyland Motor Corporation (LMC) and encouraged by the Wilson Labour Government (1964–1970), created an automotive group with a 40% UK market share. At its peak, BLMC owned nearly 40 different manufacturing plants across the UK.

Even before the merger, the BMH stable of marques competed with “badge engineered” cars and LCVs. The merger added more internal competition from the LMC marques. What followed was a story of ineffectual management, poor product design and quality, serious industrial relations problems and the 1973 oil crisis. Combined, this resulted in an unmanageable, financially crippled behemoth heading towards bankruptcy. The company’s 1970’s legacy created an infamous monument to the industrial turmoil of the period.

Many vehicles including LCVs were badge-engineering exercises offered under different brand names including Austin and Morris. For LCVs, this policy remained until 1970 when the Morris J4 and Austin 250JU became Austin-Morris products.

By the early 1970s, the outdated vans were rapidly losing ground to the Ford Transit and Bedford CF. Plans were put in motion to build and launch a new van that would equal the competition. The all-new Sherpa launched in late 1974, with both Leyland and Austin Morris badging.

Despite containing profitable marques such as Jaguar, Rover and Land Rover, as well as the best-selling Mini, British Leyland had a troubled history, leading to its eventual bankruptcy in 1975 and subsequent part-nationalisation.

The Wilson/Callaghan Labour Government (1974–1979) took control, creating a new holding company named British Leyland Limited (BL) of which the government was the major shareholder. The company was now organised into the following three divisions:

  • Leyland Cars
    • The largest UK car manufacturer
    • 128,000 employees
    • 36 locations
    • Production capacity one million vehicles per year
  • Leyland Truck and Bus
    • The largest commercial and passenger vehicle manufacturer in the UK
    • 31,000 employees
    • 12 locations
    • Production 38,000 trucks, 8,000 buses and 19,000 tractors per year
  • Leyland Special Products
    • A miscellaneous collection of acquired businesses

By 1977, all vans were sold under the Morris brand. A further change saw the Sherpa move into the Land Rover division in 1981, under the newly created Freight Rover brand.

By this time the Sherpa van was unsurprisingly dating quickly against the competition. Sales of the Transit far outstripped the Sherpa, whilst imported vehicles from Volkswagen, Fiat, Citroen, Renault and Iveco were gaining a foothold in the market.

Freight Rover

With the Sherpa under its wing. Freight Rover commissioned the K2 facelift in 1982 renaming it the 200. In 1986 the company introduced the wider bodied 300 van and chassis derivatives opening previously untapped sales opportunities.

Success followed and Freight Rover was moved into the Leyland Trucks Division. With improving profitability, the Freight Rover business caught the eye of General Motors in 1986. At this point, they made a bid to buy both the truck division and Land Rover from BL. The deal was vetoed by the British Government because they did not want to sell the iconic Land Rover brand to the American company. Although the truck division was still available for sale, GM’s interest waned and Dutch company, DAF Trucks, secured the purchase the following year.

DAF Trucks/Leyland DAF

The trucks were manufactured in Eindhoven, Holland and Leyland, Lancashire whilst the 200 and renamed 400 Series continued production in Washwood Heath, Birmingham. Both the trucks and vans were sold under the Leyland DAF banner in the UK.

By early 1988 planning for a much-needed replacement for the ageing 200/400 Series was progressing. With limited product development capabilities in-house, the styling of the new standard width and the wide-bodied van was outsourced to the Bertone design house in Italy.

The management team were not convinced the Bertone styling worked, with Leyland DAF wanting more of a family look between the vehicles. The work was outsourced again, this time to MGA, the designers who had worked on the K2 facelift and high roof versions. By the summer of 1988, with sketches completed, MGA produced clay models and then full-size prototypes codenamed LDV201 and LDV202

An overall lack of finances at Leyland DAF at this time, combined with strong sales of the 200/400 series  – 13,234 sales and a 15.6% market share in 1992 – meant the company was under pressure to launch the new van range. Increasing costs meant the new project would be mothballed until Renault was brought in to partner the programme in 1989. Sadly, a lack of direction saw the whole project cancelled by Leyland DAF in 1993, deciding to develop the existing Sherpa models instead.

The proposed facelift did not see the light of day, as continued financial difficulties forced Leyland DAF to file for bankruptcy later that year.

Renault

With agreement sought from DAF, Renault took over the entire development. Recognising that their current Master van was ageing, the LDV201/202 programme was abandoned in favour of a single model that would be the basis for their new Master range of light commercials.

In 1995, Renault signed an agreement with Iveco to help develop a cab for the second generation Master, Mascott and third-generation Daily models. However, due to rising costs, General Motors Europe was brought in as another partner. The second-generation Master was launched in 1997, with rebadged GM versions of the Opel/Vauxhall Movano and alliance partner, the Nissan Interstar launching the following year. The third generation Iveco Daily also shared many panels and cab components, including the doors. Named International Van of the Year (IVOTY) in 1998, a facelift followed in 2003, with an all-new model debuting in 2010. It too was sold by Vauxhall and Nissan, with the latter promoted as the NV400.

GAZ Group

At the same time, the collapse of the project also allowed the International Automotive Design (IAD) Group, which had been engineering the vehicle for LDV, to join forces with Gorkovsky Avtomobilny Zavod (GAZ) Group of Russia. IAD used many of the existing features to develop the bodywork design and new independent front axle suspension of the old LDV201 for the all-new GAZ Gazelle van, pick-up and minibus range.

The GAZ Gazelle went into production on the 20th July 1994, with the first vehicles rolling off the production line on the 26th of August 1994. The Gazelle has gone on to be synonymous with light commercial vehicles in Russia and other Eastern European countries selling over one million units by August 2005.

Popularity has continued to grow, with GAZ now employing over 40,000 staff and operating 13 production sites in Russia as well as assembly facilities in Turkey and Kazakhstan. The Gazelle is now sold in 40 countries across Europe, Scandinavia, Latin America, Africa, Asia and the Middle East. By 2015, annual production had increased to nearly 69,000 units.

LDV Limited

Back in the UK, the Leyland DAF van business was sold off in 1996 and LDV Limited was formed. Both the 200 and the 400 were given facelifts and renamed the Pilot and the Convoy respectively. The Pilot was available in 1.9t, 2.2t and 2.6t gross vehicle weights, while the Convoy was available in 2.8t, 3.1t and 3.5t low roof (City), high roof (Hi-Loader) and Chassis variants.

The easy to maintain vehicles made them popular with operators such as Royal Mail, the Police and local authorities, with the Convoy achieving a market share of 10.5% by the end of 1998.

Although selling well, it was clear that the Pilot and Convoy origins which harked back to 1974 were completely out of date and out of tune with the current marketplace. A joint development programme was signed with Daewoo in 1998 with a plan to quadruple output to 80,000 units by 2005.

The Asian financial crisis of 1997-1998 hit Daewoo hard and the partnership with LDV ended in November 2000, when the Korean car manufacturer went into receivership. The replacements for Convoy, codenamed LD100 and the Pilot BD100 replacement, were dead in the water before they had started.

Not to be deterred, LDV dropped the BD100 and purchased the rights to the LD100 from Daewoo moving 6,000 tons of tooling by road and rail from Daewoo’s factory in Lublin, Poland to the Washwood Heath and the LDV Maxus was born.

Available in two wheelbases and three roof heights at either 2.8t, 3.2t or 3.5t GVW, the VM Motori powered 2.5TD engine with outputs of 95bhp, 120bhp and 135bhp, launched in February 2005.

The front-wheel-drive LDV Maxus received good reviews and was a regular sight in National grid, Royal Mail, AA and British police force liveries, being awarded Professional Van and Light Truck Magazine “Van of the Year 2005”.

However, the additional costs of ‘going it alone’ put LDV under further financial pressure, eventually going into administration later in 2005. US investors Sun Capital bought the company, only to sell them on to the Russian van maker, GAZ Group in July 2006.

Plans to expand production in Birmingham, add new product lines and enter new markets were announced. GAZ also planned to produce vehicles in Russia and sell an additional 50,000 units annually worldwide. However, due to the global financial crisis in 2008 and a lack of investment, these plans never materialised.

Production ceased at the Birmingham factory in December 2008 when a last-ditch attempt to save LDV by the British Government and WestStar Corporation failed.

Shanghai Automotive Industry Corporation (SAIC)

LDV continued to sell its existing stock and the entity was sold in 2010 to the Shanghai Automotive Industry Corporation (SAIC).

The van continued in production and was manufactured under the MAXUS name for the Chinese market and selected left-hand drive markets in Europe, whilst with help of distributors The Harris Group, the same range was launched in late 2015 as the LDV V80 and EV80 for the UK, Ireland and right hand drive Europe.

As the MAXUS brand has grown globally and as its products became more established, the decision was made to realign the companies. As a result, LDV rebranded as MAXUS in 2020, coinciding with the launch of two new models; the all-new Deliver 9 diesel range replacing the V80/EV80 and the all-new small electric van, the e-Deliver 3. The e-Deliver 9 electric van launched at the end of 2020.

Motorcycle Press Release February 2021

Data published by the Motorcycle Industry Association (MCIA) shows registrations declined 37.6% in January, with all categories recording a drop. Although now sold in relatively small numbers, the Touring sector suffered the most significant decline at 65.7%, while Trail/Enduro reduced the least at 9.4%. The recently popular Naked and Adventure Sports categories also suffered big drops, of 50.5% and 44.9% respectively.

Paul McDonald, Glass’s Leisure Vehicles Editor said, “Although registrations in January were disappointing, it was expected after the country was put into full lockdown on the 3rd of the month. With Lockdown-3 continuing into March, February’s registrations are also suffering. The main question the market is asking right now is whether there will be a bounce-back once dealers reopen.”

Engine band highest registered models – January 2021 

Power BandModel
0-50ccVmoto SUPER SOCO CPX
51-125ccHonda SH125
126-650ccKTM 300 EXC TPI
651-1000ccYamaha TENERE 700
Over 1000ccBMW R1250 GS Adventure

Data courtesy of the MCIA

New Motorcycle Market

Feedback regarding sales and demand in January was mixed but challenging for most dealers, largely a result of Lockdown-3. With Motorcycle Live in November 2020 cancelled, many dealers feel this has also hindered sales enquiries as consumers were unable to physically view 2021 models although some dealers are reporting stronger than normal order take ahead of March’s plate change.

Whilst demand is subdued, interest remains across the board with the Honda SH125 in strong demand and the Royal Enfield Interceptor 650, Triumph Tiger 900 and BMW R1250 GS Adventure continuing to be well received. Moving forward, the majority of dealers are cautiously optimistic the market will recover, once restrictions are eased.  

What can the industry expect moving forward?

With dealer showrooms remaining closed, challenges are likely to continue. With Boris Johnson unveiling a plan to end English lockdown restrictions by 21 June and non-essential retail reopening from 12 April, there are positive signs for the market. However, this is past the usual point where market activity accelerates as spring arrives and longer warmer riding days beckon. The industry faces another uncertain year, however, following the pattern from 2020, dealers are hopeful that sales will surge later in the season.

Used Motorcycle Market

Recent feedback suggests that retail activity in January was challenging for most dealers, largely a result of Lockdown-3. However, some dealers believed trade was no worse than normal, with January typically quiet anyway.

Most dealers are offering online sales including ‘click and collect’ maintaining a trickle of used sales. However, consumers are still unable to view machines in showrooms and it is this that is discouraging their commitment to purchase. However, as with the new market, the majority of dealers are optimistic that the market will bounce back once Lockdown-3 ends.

Top Selling Models

Following trends from recent months, demand remains strong across all sectors, although scooters and commuter machines continue to lead the way. Demand for the Suzuki V-Strom 650 remains buoyant with Triumph Tigers also in strong demand. These machines have been popular choices for commuting purposes recently.

Suzuki v-storm 650 motorbike

Stock

Stock availability remains a challenge for many dealers further hindering sales opportunities. At the auctions, activity remains fairly strong with residual values holding firm. There appears to be less trade to trade activity currently, as dealers hold on to what stock they have rather than trading it out into the market. Additionally, increasing private sales are also compounding the stock issues.

Sales Activity

Following a cold January with snow and ice for some, February has started in a similar vein with poor riding conditions. However, considering that used stock availability is still difficult, and dealers will want healthy levels when Lockdown-3 ends, values have been held across the board in Glass’s March edition, except where trade feedback or evidence from the market indicated models required specific adjustments.

European battery supply chain boosted by two new projects

As battery-electric vehicles (BEV) move from the realms of alternative fuel to mainstream automotive technology, the supply chain for the critical component, the battery, needs to be shortened.

Currently, the industry relies on shipments from Asia. To maintain efficiency and reliability of supply as the production of BEVs increases within Europe, a closer network of gigafactories is required. In recent days, announcements suggest efforts are being made to establish a European supply network, saving the industry from potential issues, as seen with the recent semiconductor shortage.

A new company, Italvolt, will establish a gigafactory in Italy, with the first phase of the project scheduled for completion by 2024. Lars Carlstrom, former founder and shareholder of the Britishvolt project created the new company.

Italvolt states that its factory will employ around 4,000 people and be the largest in Europe, with an initial capacity of 45GWh, increasing to 70GWh. The 300,000m2 facility will be built in a yet-to-be-determined location in the country, with investment projected at €4 billion.

‘With the gigafactory project, Italvolt wants to give an important answer to the historic opportunity of green industrialisation, which is affecting all production sectors in a transversal way, representing a turning point for the global economy,’ commented Carlstrom.

The company states that demand for batteries in Europe, primarily driven by the automotive market, will hit 565GWh by 2030, behind only China, with an expected demand of 1,548GWh. Locating its factory in Italy gives it access to another market area, with carmakers such as Stellantis manufacturing in the country.

UK ambition

Following Brexit uncertainty, the UK has seen a swathe of announcements in recent months that have boosted the country’s automotive industry. Vehicle electrification is driving these investments, with the aforementioned Britishvolt project and news that Nissan will bring battery manufacturing to the country.

There could now be a third project that would see a gigafactory developed in Coventry, with the city’s council entering a partnership with the owners of Coventry Airport.

The joint venture partners will develop proposals and submit an outline planning application for a gigafactory in 2021. This will take place alongside regional discussions with battery suppliers and automotive manufacturers to secure the long-term investment.

The UK’s West Midlands area is home to several carmakers, including Jaguar Land Rover (JLR), BMW, and LEVC and Aston Martin Lagonda. The UK government has made up to £500 million (€577 million) available for investment in a battery-manufacturing facility, and the area will be tendering a bid for funding from this pool.

‘Coventry has emerged as a world leader in battery technology,’ said George Duggins, Coventry City Council leader. ‘The city is home to the UK Battery Industrialisation Centre, world-leading research institutions, and the UK’s largest carmaker, JLR, and it is clear to me that Coventry is the right location.

‘Coventry Airport sits at the heart of this powerful automotive research cluster and is the obvious location for a UK gigafactory. It will immediately plug in to a mature automotive supply chain and skills eco-system.’

The plans will have been boosted by news that JLR is to transition its Jaguar brand to a BEV-only marque by 2025, while Land Rover will launch six new battery models, with manufacturing centred in the UK. A supply of batteries on their doorstep would make sense, cutting delivery times and improving the carbon footprint of their BEVs with reduced shipping.

Jaguar makes BEV and hydrogen changes on path to net zero

Jaguar is to become an electric-only brand by 2025, as part of parent company Jaguar Land Rover’s (JLR) plans to be a zero-carbon business by 2039.

As part of a new strategy, presented by CEO Thierry Bolloré, JLR has set a path for a sustainable future. The Reimagine plan will see Land Rover produce six battery-electric vehicles (BEVs) in the next five years, with the first variant arriving in 2024. Jaguar will transition all models to BEVs by the middle of the decade.

The carmaker is looking to achieve net-zero carbon emissions across its supply-chain, products and operations by 2039. As part of this, JLR is preparing for the expected adoption of fuel-cell technology, in line with a maturing of the hydrogen economy.  Fuel-cell prototypes are set to be seen on UK roads in the next 12 months as part of a long-term investment programme.

‘Jaguar Land Rover is unique in the global automotive industry,’ commented Bolloré. ‘Designers of peerless models, an unrivalled understanding of the future luxury needs of its customers, emotionally rich brand equity, a spirit of Britishness and unrivalled access to leading global players in technology and sustainability within the wider Tata Group.

‘We are harnessing those ingredients today to reimagine the business, the two brands and the customer experience of tomorrow. The Reimagine strategy allows us to enhance and celebrate that uniqueness like never before. Together, we can design an even more sustainable and positive impact on the world around us.’

JLR will make an annual commitment of around £2.5 billion (€2.9 billion) to the plan, including investments in electrification technologies and the development of connected services to enhance the customer experience.

Underpinnings

Land Rover will use its forthcoming modular longitudinal architecture (MLA) platform for upcoming hybrid and BEV models, while also using the company’s electric modular architecture (EMA). Jaguar will build future models on a platform designed exclusively for pure-electric models.

This is part of a plan to consolidate platforms across the business, allowing JLR to focus on efficiency in production and quality of the finished product. It will also help to rationalise sourcing and accelerate investments in the supply chain.

The announcement also included confirmation that JLR will continue to build vehicles in the UK. Its plant in Solihull will become home to Jaguar’s BEV models, while also manufacturing the MLA. The replacement of the current Jaguar XJ model will also not be pursued. With its West Midlands plant geared up for BEV production, it is likely JLR’s site at Castle Bromwich will be repurposed.

The company will substantially reduce and rationalise its non-manufacturing infrastructure. Its executive team and other management functions will move to its Gaydon site to aid cooperation.

Show of faith

The move is good news for the UK automotive industry, which is finding its feet again after years of Brexit uncertainty. JLR’s commitment to the country follows Nissan’s announcement that it will invest in its Sunderland plant and bring battery manufacturing to the country.

‘The news that the UK’s largest automotive business has confirmed its long-term commitment to the UK is very welcome and is an injection of confidence into the wider sector,’ commented Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT). ‘Its roadmap to a future that is built around sustainability, with electrified and hydrogen models as well as investment in connected and digital technologies, aligns with government ambition and increasing consumer expectations.

‘Delivering this ambition, however, will require the UK to improve its competitiveness. The UK automotive industry is essentially strong, innovative and agile, but the global competition is fierce. The UK government must ensure advanced manufacturing has its full support, with a policy framework and plan for growth that reduces costs, accelerates domestic battery production and electrified supply chains, and incentivises R&D and skills development. Every effort must be made to create conditions that will enable the entire sector to flourish.’

Electric future

JLR’s decision to turn its Jaguar brand into an electric-only marque is in line with an industry that is starting to fully embrace the zero-emission technology after years of development. The timescale, stopping the sale of internal combustion engines in around four years, may sound ambitious. However, Jaguar already has a BEV model on the market, the I-Pace, while it has also shortened the number of non-electric models it offers in recent years as part of financial cutbacks.

Therefore, the company is ideally placed to make this announcement with such a short timeline. It will hope that it can achieve these targets before its main rivals, including Audi, BMW and Mercedes-Benz, and therefore take advantage of shifting consumer attitudes towards luxury BEVs.

The move to bring hydrogen fuel-cell vehicles to test this year also shows the company’s proactive thinking. With electric drivetrains moving from development to production, carmakers now have space to consider the alternative fuel. Hydrogen can produce the range and refuelling times of internal combustion engines, while also producing zero emissions. The technology is already used by Toyota and Hyundai.  JLR partner BMW is planning to bring a hydrogen model to market next year.

VW Group and Microsoft to collaborate on cloud-based developments

Volkswagen (VW) Group is to collaborate with Microsoft to build a cloud-based automated-driving platform (ADP) to deliver the technology on a global scale.

The platform will be built on Microsoft Azure, the tech giant’s cloud-computing software, and will see VW Group’s Car.Software Organisation increase the efficiency of development of both advanced driver-assistance systems (ADAS) and automated-driving functions for passenger cars across all brands.

The two companies have been collaborating on the VW Automotive Cloud since 2018. This software will span all of the carmaker’s digital services and mobility offerings. The extended partnership is another example of carmakers seeking the tech industry’s help to simplify development and to push forward with new digital solutions as the automotive industry transitions towards a technology-focused future.

Volkswagen Group Teams up with Microsoft

Source: Volkswagen Group

‘As we transform Volkswagen Group into a digital-mobility provider, we are looking to continuously increase the efficiency of our software development,’ said Dirk Hilgenberg, CEO of the Car.Software Organisation. ‘We are building the ADP with Microsoft to simplify our developers’ work through one scalable and data-based engineering environment. By combining our comprehensive expertise in the development of connected driving solutions with Microsoft’s cloud and software-engineering know-how, we will accelerate the delivery of safe and comfortable mobility services.’

Driver assistance

Building ADAS and autonomous vehicles will improve safety while reducing congestion and therefore helping combat air pollution. To do this, carmakers need large-scale computational capabilities, analysing petabytes of data from road and weather conditions to obstacle detection and driver behaviours.

This data will help AD functions through training, simulation and validation. Machine-learning algorithms that learn from billions of real and simulated miles driven are key to connected-driving experiences.

VW Group’s Car.Software Organisation will address these challenges, thanks to its partnership with Microsoft, by simplifying the developer experience and leveraging the ‘learnings from miles driven’ through one database comprising real-traffic data from the group’s vehicles and simulation data.

‘ADP will help reduce the development cycles from months to weeks and efficiently manage the huge amount of data,’ the companies said. Work will start on ADP immediately, and both VW Group and Microsoft are looking to continuously expand the functional scope of the development platform.

Going digital

The entire automotive industry is shifting to become more digital and reap the benefits of connected vehicles and cloud-based technologies. By 2025, VW Group hopes to have invested around €27 billion in digitalisation while increasing the amount of in-house software development in the car to 60%, up from 10% today.

While digitalisation allows for a more straightforward development process, it also enables VW Group to provide new services and options to drivers after leaving the dealership. Using Azure, the carmaker can develop and test both ADAS and AD features before deploying them across the vehicle fleet, much like new operating systems on phones and computers. This means all VW Group cars would benefit from new developments, rather than those yet to be sold.

This could also open new profit streams, as carmakers developing over-the-air updates (OTA) can sell new features or existing optional extras to drivers who only have base-model vehicles. In time, such services could be opened up to third-party developers who can then help drivers to create a more ‘personalised’ version of their vehicle.

No talks between Hyundai-Kia and Apple

Hyundai Motor Company is not in talks with Apple over autonomous electrically-chargeable vehicles (EVs). The companies ended wide-spread speculation over a potential collaboration on Monday (8 February) with a regulatory filing.

The announcement dealt a $3 billion (€2.49 billion) blow to the carmaker’s market value, with its stocks sliding by 6.2%. Kia, as the rumoured potential operational partner, saw a 15% drop on the stock market, equalling a $5.5 billion loss in value.

Cooperation requests

‘We are receiving requests for cooperation in joint development of autonomous electric vehicles from various companies, but they are at early stage and nothing has been decided,’ the carmakers said in an investor update, as reported by Reuters.

‘We are not having talks with Apple on developing autonomous vehicles,’ it confirmed. Autovista Group’s Daily Brief did contact Hyundai, Kia and Apple for further comment on this latest revelation, but no response was received prior to publication.

Rumours had been rife over the potential battery-electric vehicle (BEV) tie-up. ‘We are agonising over how to do it, whether it is good to do it or not,’ a Hyundai executive aware of the Apple discussion said last month. ‘We are not a company which manufactures cars for others. It is not like working with Apple would always produce great results.’

Collaborative company

Hyundai is well known for its collaborative efforts across the board. These include everything from sponsoring global EV challenges, to investing in autonomous vehicle start-ups and even getting involved in robotics. So, the supposed talks with Apple fell well within the possible activity of this cooperative corporate mindset.

Addressing the company at the start of this year, company chairman Euisun Chung outlined the importance of this approach alongside its effort to become a global EV powerhouse as it launched its Electric Global Modular Platform (E-GMP), which will power its new Ioniq line-up.

‘With the launch of new vehicles based on the recently-released, electric-vehicle platform, the E-GMP (Electric-Global Modular Platform), we plan to provide attractive eco-friendly mobility options that aptly reflect customers’ diverse tastes and needs at more reasonable prices,’ he said.

‘Furthermore, our hydrogen fuel-cell technology, recognised as the world’s most advanced, will be expanded to diverse mobility and industrial sectors to help achieve carbon neutrality under the ‘HTWO (Hydrogen + Humanity)’ brand.’

This focus on electrification and hydrogen falls into a wider automotive trend, which emphasises the need for zero-emission mobility alongside the digitisation of vehicles. The sector is developing greener, smarter cars not only to meet emissions targets but also rising customer expectations. Consumer are becoming increasingly enveloped by new technologies, with mobile phones capable of connecting to every aspect of their lives, so the automotive industry is left playing catch-up.

Daimler to become Mercedes-Benz as it spins off truck business

Daimler is to undergo a fundamental change in its structure, spinning off its trucks business and renaming itself Mercedes-Benz. The move is intended to help the company unlock the full potential of its business in a zero-emission future.

Daimler Truck will become a listed company with a majority stake distributed to Daimler shareholders. Mercedes-Benz will continue to develop models for both the passenger car and van markets. Diverging the business will allow each unit to focus on new technologies that are impacting their respective sectors.

Signs of a shift in policy emerged last year when Daimler announced it was developing hydrogen systems for its trucks business while cancelling plans for fuel-cell-powered cars. As the commercial and car markets are likely to take different paths towards zero-emissions, each company will now be able to put funding and resources into its own development rather than share the pot and restrict development as a result. The split is expected to occur at the end of this year, with an extra-ordinary shareholder meeting in Q3 to discuss the final plans and obtain approval.

Corporate structure

‘This is a historic moment for Daimler. It represents the start of a profound reshaping of the company. Mercedes-Benz Cars & Vans and Daimler Trucks & Buses are different businesses with specific customer groups, technology paths and capital needs.’ said Ola Källenius, chairman of the board of management of Daimler and Mercedes-Benz.

‘Both companies operate in industries that are facing major technological and structural changes. Given this context, we believe they will be able to operate most effectively as independent entities, equipped with strong net liquidity and free from the constraints of a conglomerate structure,’ he added.

As part of a more focused corporate structure, both Mercedes-Benz and Daimler Truck will be supported by dedicated captive financial and mobility service entities. The company plans to assign resources and teams from its current Daimler Mobility business to both brands.

‘We have confidence in the financial and operational strength of our two vehicle divisions. And we are convinced that independent management and governance will allow them to operate even faster, invest more ambitiously, target growth and cooperation, and thus be significantly more agile and competitive,’ commented Källenius.

Sustainability needs

Daimler had been struggling in recent years, announcing a series of profit warnings and initially struggling with its CO2 targets following the introduction of the Worldwide Harmonised Light-Vehicle Test Procedure (WLTP). Last year, the company managed to turn things around, tripling sales of plug-in hybrid (PHEV) and battery-electric (BEV) vehicles, and forecasting that it met its emissions figures to avoid any EU-sanctioned penalties.

‘We will continue to push forward with our ’Electric first’ strategy and the further expansion of our electric model initiative. Based on our current knowledge, we expect to meet the CO2 targets in Europe again in 2021,’ said Källenius.

With separate CO2 targets for passenger cars and trucks, Daimler will be keen to keep up this momentum, especially with stricter EU regulations for 2025 and 2030. Therefore, separating its trucks business will give Mercedes-Benz more focus on ensuring it meets guidelines by focusing on its electrification plans.

Further strategy

In October, Daimler unveiled a raft of plans that would see Mercedes-Benz focus on the luxury market with a shift to electrically-chargeable vehicles (EVs). The company plans for the number of internal combustion engine (ICE) models it offers to drop 70% by 2030. Part of this plan could see its range of compact models decrease as it focuses its product portfolio on the most profitable parts of the market.

‘We intend to build the world’s most desirable cars,’ said Källenius at the time. ‘It is about leveraging our strengths as a luxury brand to grow economic value and enhancing the mix and positioning of our product portfolio. We will unlock the full potential of our unique sub-brands – AMG, Maybach, G and EQ. Our strategy is designed to avoid non-core activities to focus on winning where it matters: dedicated electric vehicles and proprietary car software. We will take action on structural costs, target strong and sustained profitability.’

By divesting itself of Daimler Trucks, the carmaker can now focus on expanding new technologies in the passenger car market, including expanding its EQ line-up of BEVs. It plans to increase its range in the shortest space of time, meaning product development resources and expertise will be shifted to electric-drive projects.

Will there be a physical motor show in 2021?

The possibility of physical automotive shows in 2021 is still uncertain, even with vaccination programmes underway around the world to fight the COVID-19 pandemic.

Although countries worldwide are administering vaccines, it will take some time to inoculate a majority of their populations, dependent on supply. This adds uncertainty to event planning, as it is unknown what restrictions will be in place during the second part of this year. Until June, any events will likely be online-only, as infection rates remain too high in many markets to allow for mass gatherings.

With restrictions on travel, mass gatherings and uncertainty around what regulations will be in place, it is almost impossible to put full itineraries in place. Yet 2021 is set to see several big shows for the industry, two of which are based in Germany, which is currently under lockdown.

Both the IAA in Munich and Automechanika Frankfurt are to take place in September. The IAA, which is set to focus on the expanded theme of mobility with a new format and new venue for this year, is set to become a ‘hybrid’ event, encompassing both physical and digital elements, according to Automotive News Europe.

The report states that virtual events will help to increase the show’s reach and make it more attractive for exhibitors and visitors. Carmakers will have the opportunity to send marketing messages to their target groups on various digital channels using different communication methods. The IAA had not responded to Autovista Group’s request for comment at time of publication.

It is reported that while Germany’s domestic brands, such as BMW, Volkswagen Group and Daimler have signed up to be present, only a handful of foreign carmakers are committed, including Ford, Hyundai and various Chinese brands. It is interesting to note that both Ford and Hyundai have shunned motor shows in recent years.

Other large carmakers are waiting to see how the pandemic plays out. This is likely why the VDA is looking at a virtual element to this year’s event, allowing them to take part safely and without the financial risk associated with a last-minute cancellation.

Clarifying cancellations

Organisers have also sought to clarify what any cancellation would mean in terms of financial penalty to exhibitors. Last month, a post on the IAA website stated that the VDA had ‘revised the current cancellation regulations of its Exhibition Conditions for IAA Mobility 2021.’

Should the VDA cancel the event, as a result of force majeure or unforeseeable circumstances, the organisation will ‘bear almost the entire risk and shall retain only 10% of the stand rent, even if the decision to cancel occurs during the event. In addition, exhibitors who are not permitted to travel to the show owing to state-imposed bans in Germany or another country, and whose stand operation, therefore, becomes impossible, ‘shall also receive a generous reimbursement of their stand rent.’

This statement has likely been made following the uncertainties surrounding the 2020 Geneva International Motor Show (GIMS), which was called off days before it was due to take place. This was seen as force majeure, with the Swiss government installing restrictions on mass gatherings, and as such, organisers initially stated they would be offering no refunds. However, they later agreed to refund as many exhibitors as possible, with a sale of the event to new organisers to help facilitate this.

‘A majority of GIMS exhibitors who took part in a survey stated that they would probably not participate in a 2021 edition and that they would prefer to have a GIMS in 2022,’ the GIMS organising foundation said at the time of the sale.

Write off?

Instead of a physical event last year, GIMS moved quickly to become an online-only event, with keynotes and press conferences, as well as the annual Car of the Year awards, hosted on its website. However, it was a very basic affair due to the timing of the cancellation.

GIMS set a precedent for online motoring events. This year’s CES was virtual with online exhibitor booths. The virtual event allowed for hundreds of companies to present their products and new developments to a global audience, while ensuring no one was put at risk. This did feel very different to previous shows however, without the physical ability to explore and discover new companies and technologies. The question is, therefore, if in the first months of 2021 no physical events go ahead,  , should the whole year be written off to remove uncertainty and allow organisers and exhibitors to begin thinking about 2022 instead?

The North American International Auto Show (NAIAS) organisers have chosen another option, cancelling their 2021 event but arranging a new show, Motor Bella,  which will act as a ‘bridge to the future’, allowing them to test a new concept while ensuring COVID-19 compliance is kept in place.

The Motor Bella event will run from 21-26 September in Michigan, at the M1 Concourse, an 87-acre outdoor location.

‘The pandemic has caused changes in our society and world in ways not previously imagined, and we all should be looking for new and highly creative ways of doing business,’ said executive director Rod Alberts. ‘This new event captures that creative spirit. It will provide new mobility experiences and increasingly innovative approaches to tapping into the industry and its products.’

Whatever happens with the vaccination programmes around the world, it is clear that event organisers are having to prepare for multiple probabilities when it comes to motoring events.

EU states commit to sustainable battery development

The European Commission has approved a second Important Project of Common European Interest (IPCEI) that will see €2.9 billion handed out to carmakers, suppliers, technology businesses and energy companies to support research and development in the battery value chain.

The European Battery Innovation project has been prepared and notified by 12 member states. It will see companies such as Tesla, BMW, Fiat Chrysler Automobiles (FCA), Northvolt and Enel X share the funding across four areas of the battery supply chain. The public backing is expected to help unlock an additional €9 billion in private investments, as the Commission seeks to vastly improve Europe’s standing in battery manufacturing. The overall project is expected to be completed by 2028, although each sub-project will have different deadlines within this timeframe.

Funding will cover the entire battery value chain, from the extraction of raw materials, design and manufacturing of battery cells and packs, to the recycling and disposal of units in a circular economy, with a strong focus on continued sustainability.

New technologies

It is hoped that the funding will spur the development of next-generation battery technology that can power vehicles while being produced with little or no impact on the environment. The Commission hopes that the IPCEI will help develop battery technology further, including technological breakthroughs in cell chemistries and production processes, all of which will be in addition to what the first IPCEI, established in 2019, will accomplish.

‘For those massive innovation challenges for the European economy, the risks can be too big for just one member state or one company to take alone,’ comments executive vice president Margrethe Vestager, in charge of competition policy. ‘So, it makes good sense for European governments to come together to support industry in developing more innovative and sustainable batteries. This project is an example of how competition policy works hand in hand with innovation and competitiveness.

‘With significant support also comes responsibility: the public has to benefit from its investment, which is why companies receiving aid have to generate positive spillover effects across the EU.’

Environmental impact

The big focus of the project is sustainability. There is increased awareness of the carbon impact of vehicle electrification, as it starts its big push for market domination. Taking over from fossil-fuel-based technology, and championing the sustainable position for the automotive industry, companies need to increase awareness of the entire production cycle and its impact on carbon emissions.

‘The batteries value chain plays a strategic role in meeting our ambitions in terms of clean mobility and energy storage,’ said Thierry Breton, commissioner for internal market. ‘By establishing a complete, decarbonised and digital battery value chain in Europe, we can give our industry a competitive edge, create much-needed jobs and reduce our unwanted dependencies on third countries – in short, make us more resilient. This new IPCEI proves that the European Battery Alliance, an important part of the EU industrial policy toolbox, is delivering, he added.’

Companies involved in EU battery value chain IPCEI

Companies involved in EU battery value chain IPCEI table

Source: European Commission

The project will involve 42 direct participants, including small and medium-sized enterprises (SMEs) and start-ups with activities in one or more member states. The direct participants will closely cooperate through nearly 300 envisaged collaborations, and with over 150 external partners, such as universities, research organisations and SMEs across Europe.

The Van’s Headlights: The Rise Of The MAXUS Brand

This month the Van’s Headlights looks at a commercial vehicle brand that is relatively new in its current form to the UK. It is catching the eye, not only with its latest vehicles but also with what is in the pipeline.

Although the name MAXUS may be new to a lot of people, its origins are deeply rooted in UK manufacturing history with links that can be traced back to 1896.

Background

In 1896, two local families founded the Lancashire Steam Motor Company in the town of Leyland, Lancashire. The company was renamed Leyland Motors in 1907 and later became the Leyland Motor Corporation (LMC), as they diversified into the manufacture of petrol-driven trucks, buses and electric trolleybuses. The company expanded further into car manufacturing, acquiring Triumph and Rover in 1960 and 1967. In 1968 LMC merged with British Motor Holdings to become British Leyland Motor Corporation (BLMC) with the company holding a 40% market share.

Although BLMC held household marques such as Mini, Jaguar, Rover and Land Rover within the group, management was poor, leading to its eventual collapse and part nationalisation in 1975. It was at this time that BLMC was restructured and renamed British Leyland. The company went through further name changes to BL Plc in 1978 and then The Rover Group Plc in 1986. By this time, marques including Austin, MG, Freight Rover and Leyland Trucks were part of the group as well as the dormant trademarks of Triumph, Morris, Wolseley, Riley and Alvis.

In 1987, Freight Rover and the Leyland Trucks division were sold to Dutch company DAF Trucks which was renamed DAF NV in 1989. The trucks were manufactured in Eindhoven and Leyland and the vans in Washwood Heath, Birmingham and sold under the Leyland DAF banner in the UK.

Following a management buyout in 1993, the Leyland DAF Van (LDV) company was formed. LDV produced the 200 and 400 Series and then the Pilot and Convoy until 2004 when, after several years in the making, the production of the all-new Maxus started. The new project was originally meant to be a joint venture between LDV and Daewoo, however, Daewoo went into liquidation in 2000.

MAXUS LDV pilot van green
MAXUS LDV Convoy van black

LDV soldiered on moving 6,000 tons of tooling from the Daewoo plant in Poland transferring it to Birmingham by road and rail to reduce costs. The Maxus eventually launched in 2004, but with the additional costs, LDV came under further financial pressure and went into administration briefly the following year. The company was saved in 2005 when US investors Sun Capital bought them.

LDV MAXUS range 3 vans

In July 2006, Sun Capital sold LDV to the Russian van maker, Gorkovsky Avtomobilny Zavod (GAZ) Group with a plan to expand production in Birmingham by adding new product lines and entering new markets. GAZ also planned to produce vehicles in Russia and sell an additional 50,000 units annually worldwide. However, due to the global financial crisis in 2008 and a lack of investment, GAZs plans never materialised.

Production ceased at the Birmingham factory in December 2008 when a last-ditch attempt to save LDV by the British Government and WestStar Corporation failed. LDV continued to sell its existing stock but was sold in 2010 to the Shanghai Automotive Industry Corporation (SAIC).

Renamed as the MAXUS V80 for the Chinese market and selected left-hand drive markets in Europe, the range was re-launched with only minor cosmetic upgrades.

LDV MAXUS V80 front side union jack

In 2015, The Dublin-based Harris Group secured the distribution rights to the MAXUS in the UK, Ireland, Channel Islands, Isle of Man, Malta and Cyprus. Utilising the strong historical links with the brand in these markets, the V80 diesel range and the EV80 electric variant were sold as LDV badged products.

Acclaim for LDV grew over the next five years, winning the Greenfleet LCV Manufacturer of the Year Award last year, whilst the EV80 also won the Motor Transport Clean Fleet Van of the Year.

It was also last year that SAIC revitalised the brand. Now distributing their products to almost 50 countries and regions across the globe, LDV was rebranded as MAXUS across right-hand drive Europe in a global realignment with the rest of the group. This change coincided with the launch of two new ranges that MAXUS hope will underpin the brand’s future.

If further proof was needed, Harris has confirmed its commitment to growing MAXUS operations in the UK by announcing its plans to open a headquarters during 2021.  Housing MAXUS’S UK employees, the new head office in Birchwood Park, Warrington will offer warehousing and a parts depot as well as office space.

The current offering

SAIC MAXUS Deliver 9 white van
MAXUS LDV EV30h van

The all-new Deliver 9 van range replaces the outgoing V80 and EV80 models, with both diesel and eDeliver 9 electric van and chassis variants available as part of the range. The smaller eDeliver 3 all-electric van range is available as a van and platform cab and designed to compete in the urban delivery market.

Huge investments in development, technology, specification and quality secures the MAXUS range as a genuine challenger to the established brands.

eDeliver 3Deliver 9eDeliver 9
– Vans and platform cab
– Short and long wheelbases
– Aluminium and polymer composite construction
– Two battery options – 35kWh and 52.5kWh
– Up to 151-mile range – WLTP combined
– 5-80% rapid charge in 45 minutes
– 7kW home charger gives 80% charge in 10 hours
– Maximum 6.3cu.m. load space
– Cruise control
– Infotainment system
– Comprehensive comfort and safety features
– Payloads up to 1,200kg
– 5yr/60,000-mile vehicle warranty
– 8yr battery warranty
– Priced from £24,000 plus VAT, after Plug-in Van Grant (PiVG)		– Short, Medium and long wheelbases at 3,500kg GVW
– Vans and derivatives plus custom vehicle conversions
– Two trim levels
– New 2.0-litre 163bhp Euro 6d compliant diesel engines
– Comprehensive comfort and safety features
– Infotainment system
– Ample storage, cup holders
– Load volume between 8.1cu.m.-12.3cu.m.
– Payloads up to 1,520kg
– 5yr/125,000-mile warranty
– Priced from £27,150 plus VAT		– Medium and long wheelbases at 3,500kg GVW (optional 4,050kg upgrade)
– Vans and derivatives plus custom vehicle conversions
– Choice of three battery options – 51.5kWh, 72kWh and 88.55kWh
– Range between 112 miles and 185 miles – WLTP combined
– AC and DC charging as standard
– 5-80% rapid charge in 45 minutes. 100% in 80 mins.
– 7kW home charger gives 80% charge in 10 hours
– Maximum 11cu.m. load space
– Payloads up to 1,200kg
– 5yr/60,000-mile vehicle warranty
– 8yr battery warranty
– Priced from £55,000 plus VAT, after Plug-in Van Grant (PiVG)

The Future

The future looks bright for SAIC. The largest automotive group in China, they currently employ almost 100,000 staff and produce almost seven million cars, vans, pickups, motorhomes and trucks each year.

The next vehicle to be brought in under the MAXUS banner is muted to be the T70 2.0TCDI diesel pickup, which again will be supported by a 5yr/125,000-mile warranty. There is also a T70 electric pickup available in home markets with a stated range of 535km (330 miles) and an 80% charging time of 36 minutes.

The 2020 Chengdu Auto Show saw the new MAXUS pickup officially revealed. Powered not only by a twin bi-turbo diesel engine generating 510Nm of torque, the aggressively styled pickup will also be powered by pure electric, hybrid, and fuel cell technology. The interior will feature twin screens with multimedia and 5G technology and a high level of specification.

In September last year, SAIC announced that they had created Jieqing Technology Co to provide fuel cells and engineering services for the automotive industry. The plan is to research, develop and sell in the region of 10,000 hydrogen vehicles per year and to exceed 30,000 units globally by 2025. The world’s first hydrogen fuel cell MPV called the MAXUS EUNIQ 7 has been launched in China, with its third-generation autonomous fuel cell technology being applied to future light and heavy trucks, buses and other commercial vehicles.

SAIC has the vision to be at the forefront of the automotive industry promoting new energy vehicles and technologies and is currently work closely with the Chinese Government, Shanghai Municipal Government and Shanghai Airport Group to improve the economic efficiency of hydrogen fuel production, storage and transportation. There are also plans for a new hydrogen infrastructure that will include over 1,000 hydrogen filling stations by 2030.

Volkswagen Group narrowly misses CO2 targets

Volkswagen Group (VW) narrowly missed its EU CO2 fleet targets for 2020. The manufacturing group fell short, albeit by only 0.5 g/km, even after entering pools with other manufacturers like SAIC Motors bringing the average down to 99.3 /km. This will mean a fine for the company, for which it set aside provisions earlier on. VW did manage to lower its new passenger-car fleet emissions to 99.8g/km, a reduction of roughly 20% compared to 2019.

The German manufacturing giant points to two of its major brands, Audi and Volkswagen Passenger Cars (VWPC), as driving down fleet emissions with their respective electric offensives. Notably, the luxury brands Bentley and Lamborghini were measured individually, and so were not included in the overall fleet total.

‘We are making good progress on the road to becoming a CO2-neutral company. We significantly reduced the CO2 emissions of our new vehicle fleet in the EU,’ said Herbert Diess, VW CEO. ‘The Volkswagen and Audi brands in particular have made a major contribution to achieving this with their e-offensive. We narrowly missed the fleet target for 2020, thwarted by the COVID-19 pandemic. Along with Volkswagen Passenger Cars and Audi, Cupra and Škoda are now bringing out further attractive electric models. This will allow us to achieve our fleet target this year.’

Electric offensives

Both Audi and VWPC were able to meet their CO2 fleet targets, thanks in a large part to their electric offensives with the ID.3 and e-Tron respectively. Based on the Modular Electric Drive (MEB) platform, the ID.3 saw 56,500 deliveries last year. Roughly 212,000 electric VWPC vehicles were handed over to customers during the last 12 months, including some 134,000 battery-electric vehicles (BEVs). Meanwhile, the Audi e-Tron (including Sportback models) recorded a significant increase in demand in 2020, with year-on-year growth of 79.5%, up to 47,300 vehicles.

So, as BEV front-runners, Audi and VWPC represented increased traction for the group, which saw a fourfold increase in deliveries of electric models in the Europe, including the UK, Norway and Iceland. A total of 315,400 electrically-chargeable vehicles (EVs) were delivered in 2020, compared to 72,600 in the previous period. BEVs and plug-in hybrids (PHEVs) accounted for 9.7% of VW’s deliveries last year, up from 1.7% in 2019. The group therefore asserts this makes it ‘the clear market leader in the all-electric segment in Western Europe,’ given that it claimed a quarter of the market, up from a 14% share in 2019.

‘Despite very ambitious efforts in electrification, it has not been possible to meet the set fleet target in full. But Volkswagen is clearly well on its way,’ said Rebecca Harms, member of the independent VW Sustainability Council. ‘Work has to continue systematically to bring about the drive transformation and meet climate and sustainability targets. The key to success will be to give a greater role to smaller, efficient and affordable models in the electrification rollout.’

VW will step up its electric offensive this year with a large number of new BEVs based on the MEB platform. Audi will start 2021 with the Q4 e-Tron2 and Q4 e-Tron Sportback2. Meanwhile, Cupra will launch the el-Born2 and Škoda will deliver the Enyaq iV3. VWPC will launch its electric SUV, the ID.4, in a number of additional markets and present a new all-electric model.

Motorcycle Press Release January 2021

2020 Overview

Motorcycle manufacturers and dealers started 2020 with some optimism following years of stagnation in the new market. With a timeline in place for BREXIT and a General Election out of the way, it seemed the UK could look forward to a new beginning. No one could have predicted what happened next. With the rapid global spread of COVID-19, on March 23 the UK went into national lockdown. Critically, this came at the start of the motorcycle season. With dealers unable to open until the beginning of June, there was concern that much of the season was lost.

Paul McDonald, Glass’s Leisure Vehicles Editor said, “2020 was a tough year globally, with personal and economic restrictions in place for much of the year. The UK motorcycle market has proved remarkably resistant, especially following Lockdown-1 with strong sales activity.”

Once dealers re-opened in June, they were inundated with enquiries and sales. The moped and scooter markets benefitted from commuters choosing to ride to work isolated from passengers on public transport. Demand was strong across the board with consumers purchasing motorcycles using money from holiday funds unused due to travel restrictions.

Newcomers to the market boosted sales in 2020. This came as great news for the industry as a lack of new riders has been a concern in recent years. Following Lockdown-2 in November, December enjoyed an astounding recovery, well ahead of 2019. Whilst some growth may have attributed to pre-registrations in preparation for Euro 5, a growth of 57.1% is still very impressive.

Meanwhile, data published by the Motorcycle Industry Association (MCIA) shows year-end total registrations were only 2.9% down on 2019, highlighting the strong recovery. Mopeds and scooters were the two categories to record yearly growth of 14.6% and 10.2% respectively.

Engine band highest registered models – November 2020

Power BandModel
0-50ccYadea C-LIKE
51-125ccLexmoto ENIGMA ZS 125 T-48
126-650ccSuzuki DL650 V-STROM
651-1000ccSuzuki GSX-S750 Z PHANTOM
Over 1000ccBMW R1250 GS ADVENTURE
Data courtesy of the MCIA

New motorcycle market

Feedback for sales and demand in December was mixed with some dealers reporting a reasonable month with sales ahead of last year. Demand in December continued the recent trend with mopeds, scooters and smaller cc machines the strongest and healthy levels of interest remaining across the board. Right now, one of the main issues moving into 2021 is supply shortages, particularly for commuter machines. Understandably, dealers are concerned for January due to Lockdown-3. However, once again they are cautiously optimistic for 2021 with lots of new machines set for launch encouraging a bounce-back in demand at the end of Lockdown-3.

What can the industry expect moving forward?

With dealer showrooms closed again, January is another challenging month for dealers. However, with processes like ‘click and collect’ services, this lockdown should have a lower impact on sales. That said, the recent Scottish government rules tightening including banning non-essential ‘click and collect’ could see a further negative impact on the motorcycle market.

Additionally, it is not certain when Lockdown-3 will ease with various restrictions likely to remain in place for several months. The other concern is the ongoing effects this will have on the economy, potentially reducing consumer spending. However, the industry proved to be remarkably resilient in 2020, giving hope for 2021. It is also positive to see COVID-19 vaccines rolling out across the country, giving a glimpse of light at the end of the tunnel.  

Used motorcycle market

Following Lockdown-2 and the Christmas period, recent feedback suggests variable retail activity in December, with some dealers reporting strong enquiry levels. However, with the start of another national lockdown in January, dealers are understandably concerned about the used market.

Although this is a disappointing start to the year, dealers remain cautiously optimistic that 2021 will be positive overall, with a significant bounce-back predicted at the end of Lockdown-3.

Top selling models

Apart from larger cc Sport machines that are typically quiet at this time of year, demand continues to be good across the board.  Mopeds, Scooters and 125cc machines remain the most sought after and this is likely to continue for the near future, especially with a shortage of new machines. The Yamaha MT ranges continue their popularity whilst the Kawasaki Z1000SX also remains in strong demand.

Stock

Stock availability continues to be a challenge for many dealers and most auctions have strong bidding activity. Covid-19 working restrictions in factories are extending order to delivery times for 2021 new stock. These delays are increasing demand for late plate used machines. Dealers report forecourt stock levels are leaner than last year, however many are currently satisfied with these levels because of the current lockdown situation.

Sales Activity

Unlike recent years, when January has been mild and snow-free, 2021 started on a cold note with snow and ice for some parts of the UK leading to poor riding conditions. However, taking into account strong market prices, and the fact that dealers are ordering stock for the season ahead, values have been moderately increased across the board in Glass’s February edition, except where trade feedback or evidence from the market has indicated certain models require further specific adjustments.

Faster EV-charge points will help reduce charge anxiety

With the development of electrically-chargeable vehicles (EVs) driving forward at a pace, range anxiety will soon be a thing of the past. However, this could be replaced with charging anxiety, where consumers fear the infrastructure’s availability, the time it takes and the ease of use.

Therefore, developing EV charging is of equal importance to the market, in order to make consumers comfortable with the new technology. There is likely to be a push to create more efficient and easy-to-use charging posts that will benefit drivers and operators of charging sites.

Siemens is one company pushing development to meet these needs. The company has announced a new public fast-charger, named the Sicharge D, which is suited for highway and urban locations where drivers require a quick battery top-up, such as shopping centres and parking locations.

The post is capable of charging at up to 1,000 volts, with scalable charging power of up to 300kW and a peak efficiency range of 96%. This figure is helped by a dynamic power-sharing feature, which accounts for each connected car’s power demand and automatically adapts the charging process to the EV’s battery technology and charging status. This ensures that the connected cars get the maximum power they need without any additional manual intervention. 

Future proofing

The 96% efficiency rate means almost all the power picked up by the point from the grid is transferred to the vehicle, reducing wastage and helping to keep operating costs down for the operator.

Siemens is also aware of the need for charging points to adapt as charging capacities of EVs continue to improve in a developing market. This may mean that compared to today’s models, vehicles in the future could accept higher charging power and demand higher voltage ranges, especially if the battery is able to be recharged in a shorter space of time.

This demand is met through the scalable-charging power up to 300kW, either from the start of installation or through plug-and-play upgrades. Furthermore, the charger already supports voltages between 150 and 1,000 volts and currents of up to 1,000 amps across all DC outlets. This means it can cater for full-power loads for future 800 volt vehicles, as well as the lower-voltage charging rates demanded by current EVs.

‘With its upgradability and dynamic charging, it is a big step forward to support the future of electromobility. Our customers can be sure to be prepared for future eventualities of electromobility, be it an increasing number of required charging options or increasing charging speeds,’ said Birgit Dargel, global head of future grids at Siemens Smart Infrastructure. ‘At the same time, it is one of the most efficient fast chargers currently available on the market – an important aspect since building sustainable mobility requires careful handling of the scarce resources we are using.’

Reducing anxiety

The Sicharge D is an example of how technology companies are working to meet the demand for charging infrastructure through new efficient and future-proofed, fast-charging points. By making the post more cost-effective for the operator, more points can be added in a single location. Adding the ability to scale up the point to cover future technologies will also reduce the need to replace them down the line, while also ensuring drivers are able to rely upon them whatever their vehicle type.

Other companies are also likely to develop charging points that offer efficient charging and a user-friendly experience.

Five-minute-charge battery the answer to range anxiety?

Battery developer StoreDot has unveiled its first five-minute-charge battery engineering samples. Working on extreme fast-charging (XFC) technology, the Israeli company is aiming to eliminate range and charging anxiety for electrically-chargeable vehicles (EVs.)

Currently, rapid DC chargers offer some of the quickest charging speeds with a compatible vehicle. An example of this is Lucid Motor’s upcoming Lucid Air, which is reportedly capable of charging rates of up to 20 miles per minute when connected to a DC fast-charging network. Although, with a price tag of $80,000 (roughly €66,000) this luxury sedan’s battery technology cannot be considered widely accessible. If five-minute-charging technology could be introduced into the mass-market, this could remove several significant barriers to wider EV adoption; range anxiety, charge anxiety and wallet anxiety.

Ultra-fast charging

StoreDot is using this first production batch of sample cells to highlight the technology to potential industry partners. It will show OEMs how it replaced graphite in the cell’s anode with metalloid nano-particles, representing a breakthrough in safety, battery cycle life and swelling. In 2019, it demonstrated the full charge of a two-wheeled EV in just five minutes, as can be seen in the video below. 

Developed by Chinese company EVE Energy, StoreDot’s strategic partner, the sample cells do not require significant capital expenditure in bespoke manufacturing equipment. The XFC units are designed to be produced on existing lithium-ion production lines at EVE Energy. The samples are also compliant with UN 38.3, which ensures safety while shipping.

Doron Myersdorf, CEO of StoreDot, said the company is getting one step closer to making its vision of five-minute-charging times a commercial reality. ‘Our team of top scientists has overcome inherent challenges of XFC such as safety, cycle life and swelling by harnessing innovative materials and cell design. Today’s announcement marks an important milestone, moving XFC for the first time beyond innovation in the lab to a commercially-viable product that is scalable for mass production.’

With this, he looks to pave the way for the launch of a second-generation, silicon-dominant anode prototype for EVs later this year. Myersdorf explained; ‘we founded StoreDot to achieve what many said could never be done – develop batteries capable of delivering a full charge in just five minutes. We have shown that this level of XFC charging is possible – first in 2019 with an electric scooter and again six months ago with a commercial drone. We are proud to make these samples available, but today’s milestone is just the beginning. We’re on the cusp of achieving a revolution in the EV-charging experience that will remove the critical barrier to mass adoption of EVs.’

A charge a week

Technological developments like these work alongside the introduction of new EV models into the marketplace, demonstrating to consumers how committed OEMs are to electromobility. This appears to be working as a recent survey carried out by Tusker found that 63% of drivers are considering an EV for their next car. In November last year, the company-car supplier approached over 1,750 employed adults in the UK and found environmental benefits, home-charging and tax benefits all went a long way to swaying respondents.

Of those drivers who said they would consider an EV, 36% believed they could name up to three or more local charging locations they could use. The survey also revealed that 79% of the respondents admitted to driving less than 150 miles a week. The company claims this ‘means models like the Tesla Model 3 (263 miles – 423 kilometres), the Audi e-Tron (220 miles) and even the new Vauxhall Corsa-e (200 miles) will cater for a week of driver journeys on a single charge.’

Three-quarters of respondents believed EVs were within their budget, while the remaining quarter felt they were just for the wealthy. However, the company did point out that these vehicles are affordable on its salary-sacrifice scheme, ranging from £399 per month (€450) for a Tesla Model 3 to £249 per month for a Corse-e (inclusive of maintenance and insurance on a four-year agreement).

As consumers consider the benefits of alternative-ownership methods, alongside the practicality of owning and charging an EV, there is little doubt that advancements like a five-minute-charging time would go far to convince more people that electromobility is a viable option.

Alternative drives made up a quarter of German registrations in 2020

Alternative drives, consisting of hybrid, fuel-cell, gas, hydrogen, and battery-electric vehicles (BEVs), claimed approximately a quarter of all new-car registrations in Germany in 2020. This result came in a year defined by COVID-19, when registrations in the country declined by roughly 20%.

The country’s government sought to use the pandemic as a springboard for a greener economy, with a greater emphasis on electromobility. In November last year, it committed a €4 billion stimulus package to the automotive sector, with funds being channelled into the adaptation of production lines and incentivising the purchase of electrically-chargeable vehicles (EVs).

An electric transformation

With the Kraftfahrt-Bundesamt (KBA) reporting the number of newly-registered BEVs increased by 206% in 2020, compared with 2019, the German automotive market does look to be on track for an electric transformation. Some 13.5% of all newly-registered passenger cars in the country now sport an electrified drivetrain, from BEVs to plug-in electric hybrids (PHEVs) and fuel-cell electric vehicles (FCEVs). The federal states of Schleswig-Holstein, Berlin and Baden-Württemberg played host to a high share of these new EV registrations last year, at over 16%.

‘E-mobility is now at the heart of mobile society. Positive user experiences, reliable technologies and a growing range of products facilitate the switch to e-mobility. With a sustained trend for registrations of vehicles with electric powertrains, around 22% in the last quarter of 2020, the government target of seven to 10 million electric vehicles registered in Germany by the year 2030 can be achieved,’ said KBA President Damm.

Segments and brands

The small-car segment was the strongest, accounting for 29.9% of registrations of new BEVs in 2020. Meanwhile, SUVs made up just under a fifth of the registration volume of new BEVs. The compact segment also reached a high share of this type, with 19.6%.

For BEVs, private registrations made up almost half of all registrations, at 48.8%. For all alternative powertrains, two-thirds were commercial (63.5%), and one third (35.4%) were private. Overall, some 63% of all new-car registrations, including petrol and diesel, were registered for commercial use in 2020. 

A total of 394,940 new EVs were registered last year. VW passenger cars claimed the highest market share at 17.4%, up 608.6% compared with 2019. Meanwhile, Mercedes enjoyed a 14.9% share, up 499.8%, and Audi took 9%, up 607.9%. A total of 194,163 new BEVs were registered in the country in 2020. The VW brand claimed a 23.8% share of this volume, representing a 463.3% increase on the previous year. Renault then followed with a share of 16.2%, up 233.8%, and Tesla captured 8.6%, up 55.9%.

VW achieved the largest share of the EV parc, with 16%, pulling ahead of BMW at 12.3%, and Mercedes at 12.1%. For BEVs, VW claimed a 20.2% share, this time ahead of Renault at 18.1%, Smart at 11.6% and Tesla at 11.1%.

Around 70% of the battery-electric car parc was allocated to the small-car (33%), compact (19.6%) and mini (17.3%) segments. The stock of battery-electric passenger cars in the SUV segment, which has a high number of registrations, reached a share of 14.4%.

While the KBA has yet to confirm the total number of new-car registrations in 2020, at the end of last year Autovista Group’s Schwacke projected a recovery to just under 3.1 million in 2021. This would follow an expected registration volume of 2.9 million new cars in Germany in 2020.

Automotive relief at Brexit deal

Following a year of unprecedented difficulties, the European Union and the UK reached an agreement on Christmas Eve for a Brexit deal.

‘It was a long and winding road. But we have got a good deal to show for it,’ said European Commission president Ursula von der Leyen. ‘It is fair and balanced. And it is the right and responsible thing to do for both sides.’

Confirming the long-awaited agreement, UK Prime Minister Boris Johnson estimated the free-trade deal to be worth approximately £660 billion (€735 billion). He described it as a ‘comprehensive Canada-style free-trade deal,’ which means UK goods can be sold without tariffs and quotas in the EU.

As the UK now no longer follows the EU’s rules on production standards, checks on goods have been introduced. This, in turn, creates more paperwork and red tape, which may result in delays if goods arrive at ports unprepared. However, the deal does include a 12-month grace period on some elements of the ‘rules of origin’ declarations, which require exporters to certify goods qualify as locally sourced, allowing them to avoid tariffs. Businesses will have a year to obtain supporting documents form third-party suppliers, giving some companies more time to adapt.

But how has this last minute, 1,246-page Christmas present been received by the automotive sector?

The automotive reaction

The European Automobile Manufacturers’ Association (ACEA) welcomed the deal and the relief it brought as the sector avoids the harsh consequences of a no-deal Brexit. ACEA director-general Eric-Mark Huitema explained that no other industry is more closely integrated than the European automotive sector, which depends upon complex supply chains that stretch across the region.

‘The impact of a no-deal Brexit on the EU auto industry would have been simply devastating, so we are first and foremost extremely relieved that an agreement was reached before the transition period expired,’ Huitema said. ‘Nonetheless, major challenges still lie ahead, as trade in goods will be heavily impacted by barriers to trade in the form of new customs procedures that will be introduced on 1 January 2021.’

ACEA pointed out that compared to when the UK was aligned with the EU, the deal struck by negotiators has introduced much more red tape and regulatory burden. According to ACEA, before Brexit, almost 3 million vehicles worth €54 billion were traded annually between the EU and the UK, and cross-Channel trade in automotive parts accounted for nearly €14 billion.

Phase-in period

In the UK, the Society of Motor Manufacturers and Traders (SMMT) also welcomed news of the agreement as a platform for a future relationship between the EU and UK. It also identified the need for a ‘phase-in period,’ which it stated would be critical to help business on both sides adapt.

‘The tariff-free, quota-free trade industry has called for has been secured in principle. However, the six-year phase-in period and special provisions for electrified vehicles and batteries now make it imperative that the UK secures at pace investment in battery gigafactories and electrified supply chains to create the world-leading battery production infrastructure to maintain our international competitiveness,’ said Mike Hawes, SMMT chief executive.

The SMMT went on to call for the immediate ratification and implementation of the agreement. Members of Parliament in the UK did go on to vote overwhelmingly to back the deal, with the House of Lords also passing the bill off for Royal Assent.

The EU has also identified the need to get the agreement ratified as a matter of ‘special urgency,’ even though it was unable to do so before the UK left the single market. Given the late hour, the Commission proposed to apply the details on a provisional basis for a limited time period until 28 February 2021. The deal was also given unanimous backing by ambassadors from the 27 nations, with written approval from member states.

Now the UK can look to future partnerships with countries like Turkey, with which it recently signed a deal for preferential trading terms. New relationships like these will be essential as the country’s partnership with the EU trading bloc becomes more complex, and it navigates the terms of the deal.

‘Further ahead, we must pursue the wider trade opportunities that Brexit is supposed to deliver while accelerating the UK’s transition to electrified-vehicle manufacturing. With the deal in place, government must double down on its commitment to a green industrial revolution, create an investment climate that delivers battery-gigafactory capacity in the UK, supports supply-chain transition and maintains free-flowing trade – all essential to the UK Automotive sector’s future success,’ said Hawes.

Motorcycle Press Release December 2020

Data published by the motorcycle industry association (MCIA) shows registrations declining 1.2% in November. Despite this overall result, five out of the nine categories recorded growth, with Custom Machines enjoying the greatest increase, Trail/Enduro recording second-largest growth followed by the Supersport category, albeit now sold in relatively small numbers. Meanwhile, Mopeds continue to be buoyant recording an uptick in registrations once again.

Glass’s Leisure vehicles editor, Paul McDonald said, “Following month on month growth since early summer, registrations suffered a small decline in November. However, with England going into Lockdown-2 at the beginning of the month and enhanced restrictions elsewhere in the UK, this decline was inevitable. That said, an overall decline of 1.2% was far better than expected”.

Engine band highest registered models – November 2020

Power BandModel
0-50ccLexmoto ECHO 50
51-125ccKeeway SUPERLIGHT
126-650ccKTM EXC TPI
651-1000ccYamaha TENERE 700
Over 1000ccKTM 1290 SUPERDUKE GT
Data courtesy of the MCIA

New motorcycle market

Sales and demand continue to follow the seasonal pattern of slowing through late autumn. With dealerships in England unable to open physical showrooms in November, sales were hindered but still held up reasonably, with little sign of any significant decline. Smaller cc machines continue to be very buoyant, with the majority bought by delivery businesses as opposed to commuters.

What can the industry expect moving forward?

With dealer showrooms open again, it will be interesting to see if registrations recover in December. However, attention is turning towards 2021 and with the start of the COVID-19 vaccine roll-out, the country will start to move forward. However, it is likely to be several months before the country returns to complete normality and the effects this has on the economy remains a concern. A no-deal Brexit will exacerbate the challenges that lie ahead.  Despite this, there is some cautious optimism for 2021.

Used motorcycle market

Recent feedback from dealers suggests that demand continues to slow. However, like with the new market, this came as no surprise due to the restrictions in force. However, despite these challenges, several dealers had a reasonable month with online-only sales. Although lockdown-2 was lifted in early December, with the potential of a final flurry of activity, the focus for the industry is now the 2021 season.

Top selling models

Continuing to be very buoyant are 125cc machines and scooters, particularly in towns and cities among commuters and takeaway businesses. Adventure and naked machines also remain popular choices. However, as with recent months, demand is generally evenly spread across the board, except for larger cc sports machines. These have become increasingly niche in recent years, with this time of year typically the quietest for sales.

Stock

Stock availability continues to be a challenge, particularly quality 125cc machines. However, some dealers reported sourcing stock without issue but are having to pay high premiums as they come under pressure from competition and private internet sales. Despite this, a fair amount of dealers are satisfied with their stock levels for the time of year.

Sales Activity

Following a mild November, December started on a much colder note with frost and snow leading to poor riding conditions. However, despite this, there continues to be little sign of any significant decline. Taking this into account and the fact that dealers will be looking to build their stock levels in preparation for the new season, the majority of values have been held, except where trade feedback or evidence from the market indicates models requiring specific adjustments.

Finally, all at Glass’s would like to wish you a safe Christmas and a more positive 2021! 

Mercedes-Benz goes on the electric offensive

Mercedes-Benz has announced where its upcoming battery-electric vehicles (BEVs) will be produced, as it goes on an electric offensive. Built in its factories in Germany, the US, and China, these new BEVs will be assembled alongside vehicles powered by internal combustion engines (ICE).

Mercedes-Benz revealed a total of eight EQ BEVs will be in production across seven of its locations by 2022. Spanning three continents, this production map will be essential for the carmaker to achieve its goal of electrically-chargeable vehicles (EVs) making up half of its sales by 2030. The electrification of the manufacturer’s entire product range is a key component of the ‘Ambition 2039’ strategy and a prerequisite on the way to CO2 neutrality.

‘With its ‘Electric First’ strategy, Mercedes-Benz is consistently on the path to CO2 neutrality and is investing heavily in transformation,’ said Markus Schäfer, member of the board of management responsible for Daimler Group Research and COO Mercedes-Benz cars. ‘Our vehicle portfolio becomes electric and thus also our global production network with vehicle and battery factories. We intend to lead in the field of e-mobility and focus in particular on battery technology. We are taking a comprehensive approach, ranging from research and development to production, and also including strategic cooperation.’

Global production

The first Mercedes-Benz electric luxury sedan, the EQS, will launch from Factory 56 in Sindelfingen in the first half of 2021. The electric EQA C-SUV will also be made at the Beijing plant in China next year, after initially entering production at the Rastatt plant in Germany this year. It is a similar story for the EQE, which will be built in the Bremen site in Germany and Beijing in China from next year. Meanwhile, the EQB compact will be built at the Kecskemét plant in Hungary in 2021. The EQS und EQE SUVs will be manufactured in Alabama, US, starting from 2022. The EQC business sedan is already built in Bremen and Beijing.

Battery systems will also be produced and assembled in Germany, Poland, Beijing and Alabama. ‘The local production of batteries is an essential success factor in our electric offensive,’ said Jörg Burzer, member of the board of management for production and supply chain. He explained that the carmaker already produces batteries in Kamenz, Bangkok and Beijing, with a network that is well-positioned for the EQ offensive. ‘The ramp-up of our battery plants in Hedelfingen and Jawor is imminent and our colleagues in Brühl and Tuscaloosa are already preparing to start production in 2022.’

‘The Mercedes-Benz production network is global, digital and flexible, and ready for the upcoming electric offensive – thanks, of course, to our highly qualified and motivated employees worldwide. We are now beginning a real Mercedes-EQ fireworks display,’ said Burzer.

‘Six electric product launches by 2022 underscore the strength and competence of our Mercedes-Benz production sites worldwide. The production network will have a total of six Mercedes-EQ car locations. Local production of highly efficient battery systems plays a central role in the Mercedes-Benz strategy – coupled with a comprehensive sustainability concept that spans the entire life cycle of the battery all the way to recycling,’ he concluded.