Motoring news round-up

The National staff

Last Updated: Mar 5, 2011

Fiat to plant itself in Russia

The Italian automaker Fiat outlined plans last week to produce 300,000 cars per year in Russia, just days after it was replaced by Ford in a partnership there with the Russian automobile group Sollers.

Agence France-Presse reports that Fiat sent a memorandum of intent to the Russian government that "envisages the establishment of manufacturing capacity for up to 300,000 vehicles per year", including passenger cars and commercial vehicles.

Fiat is merging with Chrysler and has outlined plans for expansion in emerging markets. AFP reports that industry analysts believe the fallout with Sollers may have happened because Fiat tried to drive too hard a bargain.

"The Fiat and [Chrysler] Jeep brands will be the mainstay of this project ... This plan will be accompanied by a commitment to further expand and strengthen Fiat's dealer network," the Italian company said in a statement.

In January Fiat announced that it had returned to profit in 2010, beating analyst forecasts. It enjoyed strong sales of lorries and tractors, with the Brazilian market performing particularly well.

Satisfaction not guaranteed; the Tata Nano at bottom of survey

The Tata Nano, launched as a "people's car" that would help India's aspiring middle class upgrade from motorbikes to four wheels, has finished bottom of a customer satisfaction survey by a global market research firm.

The hatchback managed just 70 points on the TNS Global's Total Customer Satisfaction index, against an average of 90, reports Agence France-Presse. Its closest competitor, and India's highest-selling car, the Maruti Alto scored 91.

"The customer expectations even at the bottom end [of the market] are rising," said TNS Global, whose survey covered 9,300 new vehicle owners in 28 cities and covered 56 models. "The owners of Tata Nano expect more in terms of design."

The survey covered sales satisfaction, product quality, vehicle performance and design, after-sales service, brand image and cost-of-ownership. Honda's premium CRV topped the survey, scoring 104, with the Toyota Corolla Altis on 100.

China is Volvo's 'second home'

Volvo has announced plans to build two manufacturing bases in China over the next five years in a bid to meet a target for car sales of 200,000 by 2015.

The Xinhua news agency reports the two new plants will be in the west Chinese city of Chengdu and north-eastern Daqing.

"China is Volvo's second home ground and plays a vital role in Volvo's success," said the Volvo chief executive officer and president, Stefan Jacoby. "Our goal is to clinch 20 per cent of the Chinese luxury car market by 2015."

Volvo was taken over in August by the Chinese automaker Geely Holding Group for US$1.8 billion (Dh6.6bn) with Ford.

Jacoby said the establishment of the two bases was endorsed by Volvo's board of directors, but was yet to be approved by the Chinese government. In January, the Swedish automaker announced the establishment of its Chinese headquarters and an attached technology centre in Shanghai.

Volvo sales rose 11.2 per cent year on year to 374,000 vehicles last year, Jacoby said, adding that the company aimed to raise global sales to 800,000 by 2020. Volvo's sales in China went up 36 per cent to exceed 30,000 last year.

Jacoby said the company would increase the number of 4S dealers from 106 to 220 to achieve the sales target of 200,000 by 2015.

A 4,800km journey across Australia that cost only Dh60

Two eco-drivers completed a drive from Albany, in the south-western corner of Australia, to Sydney using only Dh60 worth of electricity, although it did take them 18 days.

Dirk Gion and Stefan Simmerer, both from Germany, drove their 200kg convertible car, the Wind Explorer, which combines three eco-friendly methods of powering the vehicle.

The primary way of driving the car is using a kite, in the same manner of a kite surfer, to power the engine, which is uses a pack of high-performance lithium-ion batteries. If there is no wind then they erect a six-metre telescopic bamboo mast with a 2.7m wind turbine, which is used to power the battery overnight. Finally if all that fails then it can be charged by plugging into the grid, like other electric vehicles. Next page

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