A proud moment for factory workers during the grand opening of the state-of-the-art facility in the Zuffenhausen district of Stuttgart.Andrew McCredie STUTTGART, Germany Electric vehicle skeptics delight in dismissing the zero emission claims of EVs by citing the significant carbon footprint from the manufacturing process.Porsche AG is well on its way to eliminating that specious argument with its brand new Taycan production facility here in the very heart of Porsche country.Porsche is pursuing the goal of a Zero Impact Factory production without any negative impact on the environment, explained Albrecht Reimold, member of the executive board for production and logistics of Porsche AG.With a projected annual output capability of 20,000 vehicles, the facility is using electricity from renewable sources and biogas to generate heat. In addition, the new production buildings are designed to be extremely energy efficient. Further efforts on the way to zero emissions are the electrically powered logistics vehicles, the use of waste heat in the paint shop, the greening of roof areas and what the company calls a continuous and holistic approach to other potential resource savings.Porsche has committed to invest more than $8.75 billion in electromobility by 2022, and spent $1.1 billion in the new Taycan production facilities alone; $1.46 billion if you include the new body shop, which will also be used for the current generation of the Porsche 911.What is also significant about the new factory is its location in Stuttgart-Zuffenhausen, literally just a few hundred metres from the still-utilized, brick workshop where company founder Ferdinand Porsche built the first-ever 911 (and years earlier the prototype for what would become the Volkswagen Beetle). When the company first set out planning to produce the Taycanbased on the Mission E concept vehicle displayed at the 2015 Frankfurt showPorsches global headquarters was not even considered, the thinking being there was not enough space to build the factory in Stuttgart-Zuffenhausen nor did it make financial sense in comparison to other sites in Eastern Europe and even China.But as the project evolved, Porsche decided the place where it all began for the company was the exact place where its ambitious plans for electromobilitya so-called new era for Porscheshould start. In addition, building the Taycan in the same place where all the companys sports cars are produced underscores the Taycans sports car aspirations.The Taycan is a clear sign of our commitment to this traditional site, which were leading into the future by preserving jobs here and even creating new ones, said Reimold, noting that employees are participating financially in the project by putting a quarter of a per cent of their negotiated pay raise into a fund, an arrangement he said is a first in the automotive industry.Once in full production mode, some 1,500 workers are expected to be involved in the manufacturing
Origin: The Porsche Taycan is built in the ‘factory of the future’
factory
Ferrari invites public to its factory for the first time
If you, like many of us, cannot afford to don a pair of Italian leather driving gloves and slip into your Ferrari to go for a Sunday drive, chances are you havent been to the Maranello factory where these masterpieces are built.But now, the Prancing Horse is letting John Q. Fezza-fan into its stable for the first time ever, for a special event that showcases many highlights from the storied brands past.The event is called Universo Ferrari, and it will have exhibits cover everything Ferrari, including but not limited to classic cars; racing; and its latest vehicles. Universo Ferrari will be open to the general public, which for fans of the brand will be a very special thing, and something Ferraris never done before.The highlight of the event will be the brands new flagship, the SF90 Stradale, shown there for the first time outside of an auto show. The SF90 Stradale is more powerful than the LaFerrari but will have a regular production cycle like the other vehicles in the lineup, which means no production cap. Universo Ferrari will take place in a standalone structure that has been built especially for the event, which means it may become part of the regular Ferrari calendar of events if its popular (which it will be). Currently, Ferrari Racing Days commemorates the brands racing efforts and history annually.Ferrari will make more information over the next few weeks typical
Origin: Ferrari invites public to its factory for the first time
Final Saab 9-3 to leave NEVS factory in Sweden
The last new Saab 9-3 ever to be made will be auctioned in Sweden this year. The almost unused saloon was built in 2013. It will now be sold by National Electric Vehicle Sweden (NEVS), the EV manufacturer that acquired Saab’s assets upon the latter’s collapse in 2012. The model up for auction is a 217bhp 2.0-litre petrol-powered Aero Turbo saloon in silver, which, according to the company, was intended for crash test purposes and set aside from customer models. The car has been parked ever since, with just 3.1 recorded miles on the clock, making it the last new 9-3 to leave the factory. NEVS will display the 9-3 in Trollhattän this weekend during the town’s annual Saab Car Museum Festival celebrations, with the auction set to take place later this year. A company spokesman said discussions are underway to determine whether the proceeds from the sale will be donated to charity. Saab ceased production of the 9-3 in 2011, with plans to unveil an all-new model at the following year’s Paris motor show. It was to be a dramatically styled two-door coupe, with a 200bhp 1.6-litre turbocharged engine supplied by BMW. The company’s collapse in 2012 put a stop to development of the new 9-3, and production of the final-shape model continued under NEVS in 2013, with contribution from around 400 external suppliers. Production finally ended in 2014, with just 420 units having left the ex-Saab factory in Trollhättan, in the south of Sweden. In 2018, NEVS began production of the 9-3 EV, a 186-mile electric saloon based on the conventionally fuelled
Origin: Final Saab 9-3 to leave NEVS factory in Sweden
Honda confirms Swindon factory closure following consultation
The firm will now begin the second phase of the consultation, which includes finalising redundancy packages and “identifying the impact on individual roles up until production ceases in 2021”. Honda said it will also consult with the Swindon Task Force set up by Secretary of State Greg Clark to “mitigate the impact of this decision on the wider community”. The closure would result in 3500 job losses. The Wiltshire factory, which builds only the Civic, currently produces 150,000 cars annually – far from its capacity of 250,000 units. The closure is a huge blow for the government’s hopes of the UK remaining an established car manufacturing hub post-Brexit. While Brexit hasn’t been cited as a reason for Honda’s plans, it is the latest factor in a perfect storm for the industry. Already this year, Jaguar Land Rover has announced 4500 job losses, Nissan has confirmed it will no longer build the X-Trail in Sunderland and Ford has said there will be job losses at its plants. Honda has been slow to react to electrification compared to its rivals. It launched its CR-V Hybrid last year but doesn’t offer any electric models, although its Urban EV, a retro-styled electric city car, is due to go on sale late this year. The firm’s intention is to consolidate much of its manufacturing back to its home country of Japan. This will allow it to ship to China – one of the markets where “high production volumes” are expected – fairly easily. The deal that the Japanese government has recently struck with the European Union (EU) is likely to be another motivating factor. It means tariffs on Japanese-made cars coming into the bloc’s 27 member states will be phased out from this year, reducing the financial benefit of Honda having a UK hub. The threat of import tariffs for European-made cars from Donald Trump’s administration will also be a factor, because the US is one of the Civic’s main markets. A statement issued by the Society of Motor Manufacturers and Traders (SMMT) following the first news of the plant’s closure in February read: “Today’s announcement is a huge blow to UK automotive manufacturing, and for the Honda plant’s highly skilled and productive workforce. Whilst production will continue in Swindon until 2021, giving government and industry time to help affected employees and the local supply chain which supports a further 10,000 jobs, this is, nevertheless, devastating news.” “The challenges facing Honda are not unique,” SMMT chief executive Mike Hawes said. “The global automotive industry is facing fundamental changes: technological, commercial and environmental, as well as escalating trade tensions, and all manufacturers are facing difficult decisions. The UK should be at the forefront of these changes, championing its competitiveness and innovation, rather than having to focus resources on the need to avoid a catastrophic ‘no-deal’ Brexit.” Honda’s statements have made no mention of Brexit or falling demand for diesel cars – two things that have been recurring in other car makers’ reasoning for problems. Honda of the UK Manufacturing director Jason Smith said: “It is with a heavy heart that today we confirm the closure of Honda’s factory in Swindon. We understand the impact this decision has on our associates, suppliers and the wider community. We are committed to continuing to support them throughout the next phases of the consultation process.” Honda of the UK Manufacturing, which was established in Swindon in 1985, has received a total investment of £1.5 billion across its numerous buildings. It mothballed half of its plant after sales failed to recover following the 2008 financial crisis and then decided to produce just the Civic, with the Jazz and CR-V moving elsewhere in the world. Back in 2008, Swindon produced more than 230,000 cars annually, but that number has now nearly
Origin: Honda confirms Swindon factory closure following consultation
GM in talks to sell shuttered factory in Lordstown, Ohio to EV truck-maker
The Workhorse electric truck concept.Handout General Motors is negotiating the sale of its shuttered factory in Lordstown, Ohio, to a company that builds electric trucks. The company confirmed Wednesday it’s in talks with Cincinnati-based Workhorse Group to sell the huge facility, and also announced plans to invest US$700 million in three Ohio factories to create 450 additional jobs. The potential sale, first announced on Twitter by President Donald Trump, could preserve some jobs at the sprawling plant east of Cleveland. But it also dashes any hope GM would reopen the factory where until March, it had built cars for more than five decades. Workhorse Group, led by Workhorse founder Steve Burns, would acquire the facility and would hold a minority stake in a new venture, a GM statement said. But it was unclear who would own the rest. “This potential agreement creates a positive outcome for all parties involved and will help solidify the leadership of Workhorse’s role in the EV community,” said CEO Duane Hughes. The company would build a commercial electric pickup truck if it buys the facility, Burns said in the statement. Should the project go forward, initial job numbers would be in the hundreds, said Ohio Gov. Mike DeWine, moments after fielding a call from GM CEO Mary Barra. That number could rise to 3,000 over several years if Workhorse were to win a contract with the U.S. Postal Service, DeWine said. “We have people who are I would say knowledgeable about the negotiations who have told us that. That would be one of the goals of the company as they grow their business—to get a contract with the post office,” DeWine said. But news of the pending sale was greeted gloomily by workers in Lordstown who were hoping that GM would reopen the factory that stopped producing the Chevrolet Cruze compact car in March. Tim O’Hara, vice-president of the United Auto Workers union local at the plant, said workers were hoping the union could negotiate a new product for Lordstown, allowing them to stay in the area and continue careers with GM. Many will be forced to transfer in order to preserve seniority and pension eligibility, O’Hara said. “I guess that means they’re done in Lordstown,” O’Hara said of GM. “Anybody that wants to continue working for them is going to have to transfer out.” Lordstown had about 1,400 hourly workers on one shift at the time the plant stopped production. But hundreds of others had been laid off earlier as GM cut two shifts to deal with slumping demand for the Cruze. Trump happily tweeted the news about Lordstown after a conversation with Barra, calling the announcement “great news for Ohio.” Lordstown had been pulled into the 2020 presidential campaign as Trump has pressured companies to add jobs in the U.S. Ohio is key to Trump’s re-election campaign, and he has attacked GM for plans to close the plant as part of a larger restructuring effort. Workhorse CEO Hughes said Tuesday the company is making progress in the transition from development to the production. The company is on target, he said, to begin delivering its new electric vans at the end of this
Origin: GM in talks to sell shuttered factory in Lordstown, Ohio to EV truck-maker
Factory fresh: driving the 300,000-mile Ford Mondeo
Generally speaking, a spaceship destined for the moon is a tiny capsule stuck on the end of a huge, pointy rocket somewhere in sunny Florida. But the spaceship we’re looking at is a family hatchback at a used car dealer in West Drayton, off the M4. In fact, it’s a 10-year-old Ford Mondeo 2.3 Ghia X auto that has done 293,000 miles, or a bit more than a spacecraft does on its way to the moon. It’s for sale at Trade Price Motors, a large used car lot at the end of an industrial estate. Be honest – would you buy such a motor? For most of us, 60,000 miles is the cut-off. Any higher and we start to worry about component life and reselling the thing. The idea of buying one that’s done 100,000 is a stretch, but one with 293,000 miles? Pigs might fly – to the moon. “Sixty thousand miles is most car buyers’ first sticking point,” agrees Mark Bulmer, senior valuations editor at Cap HPI. “Then it’s 100,000, but anything over 150,000 miles and condition is everything, to the extent that the price difference between a car with 200,000 miles and another with 300,000 is negligible. “This is because modern cars can take high mileage. In fact, doing lots of miles is better for a car than doing too few when the oil doesn’t get hot enough to circulate properly. Rust used to be the big killer, but now that car makers have fixed that problem, if a high-mileage car has been serviced regularly, it’ll be fine to buy.” On the strength of TPM’s Mondeo space capsule, Bulmer may have a point. Incredibly, its slotted alloy wheels, shod with matching, premium Goodyear rubber, are pristine. Its paint is original and its body is free of dents and scratches. Inside, its cabin looks as if it’s been lifted from a 3000-mile car rather than one that has done 100 times that. The ‘walnut’ trim gleams and the black leather seats look as fresh as the day they were fitted. Only the part-wood and leather steering wheel looks faded and is beginning to peel. Time to fire it up. Being a Ghia X, the Mondeo has keyless ignition, so I press the start button. The 2.3-litre engine settles to a quiet tickover. During a rare break in the passing traffic, I pop open the bonnet to listen more closely, expecting to hear the shuffle-shuffle of the auxiliary belt as, for the umpteenth time, it follows its tortuous path. Nothing – not even a squeak. The engine is dry but not corroded. The battery terminals have fresh grease on them. It’s disappointing to see there are only nine stamps in the book (all Ford main dealer), but because service histories can get a little hazy at spaceship mileages, I’m willing to believe it’s an incomplete record. It’s got to be worth a run up the road. I select Drive and squeeze the throttle. The big Mondeo rolls across TPM’s granite chippings and potholes incredibly smoothly. I expected to feel some looseness in the suspension and steering rack bushes, but everything feels tight. Out on the road, it picks up speed smoothly. The traffic clears, so I knock the gearshift into Sport and try a few downchanges. The transmission responds without fuss, although the petrol engine feels lethargic, as I’d expect with just 159bhp to give. My old 2007 Mondeo 2.0 diesel auto was much gutsier. The steering wheel is dead straight, the brakes pull up powerfully and the engine temperature is good. Back at Trade Price Motors, I check the dual zone climate control, tyre pressure monitoring system and parking sensors. They all work. Kashif ‘Sam’ Sheikh, the dealership’s general manager, rushes over for my verdict. As we coo over its condition, he says he’s putting up its price – from £1250 to £2495: “The boss was giving it away.” Bulmer isn’t surprised by the Mondeo’s condition. He says most Fords take high mileage exceptionally well. Not only those but Mercedes, Volvos and most Japanese and Korean cars also. Even, he says, old Land Rover Discoverys. He should know about those since he’s Cap HPI’s valuations expert on SUVs. One of his favourites is the Toyota Land Cruiser. “They just keep rolling,” he says. “Mileages over 100,000 are common. In fact, in the past week alone we’ve seen four with well over that figure.” It gives me an idea… From West Drayton I nip part-way around the M25 to West Byfleet, to meet dealer Russell Baker of Baker Brothers. He’s selling something that I reckon Bulmer, a former Land Cruiser owner, would approve of. It’s a 2000 V-reg Colorado 3.0 TD – with 270,000 miles. “We’re big fans of high-mileage Land Cruisers,” says Baker. “They’re top value and take everything in their stride.” His Colorado has good provenance and a great service history. It had one lady owner from 2002 to 2017. She did 200,000 miles in it and had it serviced on the button by a main Toyota dealer. It’s in excellent condition, inside and out. The engine looks great. Its two batteries are still wrapped in their smart, black jackets. Baker himself runs around in a Mk5 Volkswagen Golf diesel that has done 288,000
Origin: Factory fresh: driving the 300,000-mile Ford Mondeo
The Swindon factory closure: how Honda got Europe so wrong
The tale of Honda’s rise and fall in the UK and Europe is a chastening one. At one time, the firm was viewed as a genuine alternative to BMW, led by engineers making cars with cutting-edge petrol engines and sharp design. In the 1970s sales success with the Civic in the US was pioneering, while a joint venture with Rover in the 1980s broke new strategic ground. So when the Swindon plant opened in 1992 with the capacity to build 150,000 cars a year, just as Europe’s single market was launched, Honda looked set to conquer the continent. Yet 27 years on, the relationship with Europe has soured: sales are in the doldrums, with just 150,000 cars shifted last year, and the £2 billion Swindon factory will close in 2021. Civic production will also stop at its Turkish plant, although “business operations” will be maintained. So how did it all come to this? Sales Remember how well-loved Honda was in the late 1980s and early 1990s? There was the amazing NSX sports car, the McLaren-Hondas that won everything in Formula 1 thanks to their turbo V6 and normally aspirated V12 engines, and the joint venture with Rover, all contributing to a solid toehold in Europe. Back in 1990 Honda was selling 155,000 cars in Europe, compared with Nissan’s 371,000, Toyota’s 340,000 and Hyundai’s 18,000. After opening in 1992 with the Accord, the Swindon factory steadily boosted sales, rising to 225,000 in 1998. These were not easy years, however. BMW acquired Rover, rivals such as Hyundai were moving faster and Honda’s own diesel engine was a decade from production. In the meantime, it bought in its oil-burners from Rover. A real turning point was 2000 – the year Hyundai sold more cars in Europe than Honda. Honda didn’t have its own diesel engine until 2003 – the inevitably brilliantly engineered i-CDTI. But by then its Korean competitor was selling 100,000 cars per year more, while Nissan and Toyota were smashing the market. Sales of diesels and rising demand for SUVs did lift Honda to its European sales peak of 313,000 units in 2007 – just before the collapse of Lehman Brothers. The manufacturer’s response to the financial crash was, reasonably, defensive. One former insider said: “Honda is fiercely independent and the management refused any idea of bail-outs. But it raised the issue of how vulnerable the company was to a shock. So instead, they pulled back and shut the second production line at Swindon.” Knocking Swindon back to a maximum of 150,000 units was never going to end well. “The minimum efficient volume is around 250k,” says David Bailey, a professor of industrial strategy at Aston Business School. Ever since, European sales have been on a steady – some insiders say ‘managed’ – decline, levelling out at 140,000-150,000 units in 2017/18 – pretty much where Honda’s European sales started in 1990. In fact, when Swindon was at the height of its powers, and as the second plant was opened in 2001, Honda was discussing whether to aggressively target 150,000 units per year in the UK alone. But management baulked and the moment to create an impregnable sales base for Swindon passed by without being seized. Insiders believe UK sales could be stronger, but senior management has repeatedly turned down requests to supply more right-hand-drive cars. “Honda refused to chase daily rental and fleet sales, so that cuts you out of a large part of the UK market, where rivals like Hyundai are selling a lot of cars,” says one source. UK sales peaked at 106,000 in 2007 but have subsided back to around 53,000. Consequently the model range has diminished, limited in the UK to four volume models: the Jazz, Civic, HR-V and CR-V, plus the NSX super-sports car and the Civic Type R hot hatch. Honda Motor Europe senior vice president Tom Gardner contends the brand has performed well: “Honda has maintained consistent UK market share over the past five years, in excess of 2%, highlighting strong brand presence in the UK, with a committed dealer network offering outstanding customer satisfaction.” However, insiders and experts identify weak product planning as one of Honda’s missteps. Among them are the Pilot 5+2 SUV not making it to the UK in 2002, the on/ off Civic Tourer estate, the niche model strategy, on/off hybrids and being slow to market with diesel at a time when it was a must-have in every manufacturer’s armoury. Another example is when, having built a customer base for the Stream and its FR-V successor, Honda pulled out of the MPV market without a replacement, deserting the loyal customers the two models had won. “Fundamentally, Honda has misjudged the European market, and they simply don’t have the volume to justify production here,” says Bailey. Management Talking to former Honda employees, there is a feeling that a switch was flicked around the time of the 2008 financial crisis. “Honda lost its spark. The model range definitely lost its spark,” says one former executive who
Origin: The Swindon factory closure: how Honda got Europe so wrong
Autocar confidential: Morgan’s factory expansion plans, BMW’s hydrogen doubts and more
In this week’s report from the motoring grapevine, we hear why BMW isn’t prioritising hydrogen technology development, how Morgan will use some of the funds from its recent cash injection and more. No solid plans Solid-state battery technology remains several years away from production reality, according to new Mercedes-Benz CEO Ola Källenius. Speaking to Autocar, he claimed that none of the suppliers developing it “are currently at the stage where we can go out and say ‘please sell me these’”. Källenius reckons we won’t see a solid-state production EV before 2025. Citi limits The Skoda e-Citigo, launching this year as the Czech firm’s first electric model, will feature a range of around 186 miles. That will make the city car, based on the Volkswagen e-Up, “more than competitive in its class”, according to Skoda boss Bernhard Maier. New plot for old plot Morgan has built on only half of the 10-acre site where its Malvern factory is located. This means there’s plenty of room for the new museum, visitor centre, design studio and production increase (from 750 to 1500 units) it has proposed. The plans have received council backing. Not cooking on gas While Audi is ramping up its hydrogen programme, BMW’s product management boss Peter Henrich doesn’t see fuel cells “lifting off in the near future”, pointing out that infrastructure challenges with hydrogen remain. Any success fuel cells have is “very much dependent” on the speed of battery development, he
Origin: Autocar confidential: Morgan’s factory expansion plans, BMW’s hydrogen doubts and more