France bans sale of latest Mercedes cars

FRANKFURT — The latest models of Mercedes cars cannot be sold in France as they still use an air conditioning refrigerant the EU says emits excessive greenhouse gases and should be replaced, the German auto company said on Tuesday.

“Only new cars are subject to the measure,” a company spokesman told AFP adding that customers confronted with the ban are to be offered alternate models.

Since January 1, European Union norms demand that car makers use a cleaner R1234yf refrigerant, deemed less polluting than older products.

But Daimler is sticking to R134a, an older coolant, as it claims studies have shown that the new gas catches fire more easily and puts cars at a greater risk of explosion in case of a crash.

The makers of R1234yf reject Daimler’s claims but in Germany, the auto giant was given special permission to keep using the older gas.

Daimler says it will persist with the older product with the hope that “in the next few years” a safer version will be available.

No country besides France has raised an objection to the continued use of R134a, the Daimler spokesman said.

But last month the European Commission, the EU’s executive branch, threatened sanctions against German carmakers for using the refrigerant.

The Commission officially notified Germany of its objections to the continued use of the polluting gas, giving Berlin until September to comply.

source: interaksyon.com

Maserati executive car tests Fiat’s push into luxury

MILAN — In these lean economic times, even supercar makers are reaching down-market – which for Maserati means a price tag below 100,000 euros ($131,000).

The Italian company owned by Fiat is reinventing its venerable Ghibli tourer as an “executive sedan” aimed squarely, as the description suggests, at people who still have to work.

The car, due to be unveiled at the Shanghai auto show on Saturday, is an early test of Fiat boss Sergio Marchionne’s efforts to squeeze more cash out of the prestigious Maserati and Alfa Romeo brands. The plan would see Maserati sales surge eight-fold.

The outcome will help decide whether Fiat – a company founded in the late 19th century – survives the collapse of the auto market in Europe, where its losses reached 738 million euros last year, putting factories and thousands of jobs at risk.

Maserati will have to perform a difficult balancing act to emulate the success of Germany’s BMW, Daimler and Volkswagen’s Audi by rolling out more affordable models aimed at a broader client base without tarnishing one of the auto industry’s most hallowed brands.

“This battle won’t be won with individuals walking into showrooms with their cheque books,” said Geoff Lancaster, chairman of Britain’s Maserati Club.

“It will be won by Maserati convincing the leasing companies and fleet managers that their product is competitive on a cost-per-mile basis with BMW and Mercedes.”

Founded a century ago in Bologna by the five Maserati brothers, the company secured its place in racing history by winning the Indianapolis 500 in 1939 and 1940. After passing through the hands of a succession of owners including PSA Peugeot Citroen, Maserati was bought by Fiat in 1993.

The Ghibli is a smaller, sportier version of the 110,000-euro Quattroporte and the brand’s second four-door car. Named after a wind, like most Maseratis, the original 1967 model and a 1992-97 successor were both two-door GT coupes.

The revived Ghibli arrives in Europe and China this summer and U.S. showrooms later in the year, to be followed in 2014 by a new Levante crossover sport-utility vehicle.

The Ghibli’s prices will start somewhere between 50,000 and 100,000 euros, Fiat has said, declining to comment on reports in the motoring press of a 70,000 euro entry ticket.

Brand chief Harald Wester is expected to announce prices and sales targets at the Shanghai show.

Fiat unions have been told the carmaker will add a second shift at its Maserati plant in Turin.

Maserati hopes the entry-level car will draw more buyers with its racing pedigree, powerful engines and alluring styling.

“For Maserati to grow, it needs to get into this segment with a smaller car at a lower price,” said Pierluigi Santoro, a doctor and Maserati enthusiast based in Naples.

Unrealistic

As European mass-market brands suffer, carmakers are turning to higher-margin luxury marques to make up for lost revenue.

Maserati and stable-mate Ferrari together sold 13,606 cars last year, or 0.3 percent of the 4 million total recorded by Fiat and its U.S. affiliate Chrysler. But they accounted for nearly 11 percent of group earnings.

The Maserati roll-out is being watched closely for clues about next year’s Alfa Romeo relaunch, billed by Chief Executive Marchionne as one of the main drivers of his Fiat strategy.

Maserati is targeting an increase in sales to 50,000 cars in 2015 from 6,288 last year, with the Ghibli and upcoming Levante contributing a combined 35,000.

The goal may prove as unrealistic as it sounds, forecasters say. LMC Automotive estimates that total Maserati production will reach 39,078 in 2015. IHS sees 28,100.

Measuring just under five metres in length, the Ghibli comes with a 3.0-litre V6 turbo diesel or petrol engine, manual or eight-speed automatic transmission and optional four-wheel drive.

The same underpinnings will be used for a large Alfa Romeo car as well as Chrysler’s next-generation 300 sedan, Dodge Charger and Challenger models.

For Maserati, which sold 2,730 cars in the United States last year, there is a big gap to close with its competitors. Jaguar recorded 12,011 U.S. deliveries, while Porsche had 35,043 and Mercedes 295,013.

The Ghibli will compete with the Audi A6, BMW 5-Series, Jaguar XF and Daimler’s Mercedes E-Class but exceed all of their starting prices – drawing some scepticism about its prospects.

While a move into bigger-selling categories can unlock economies of scale, it also brings tough competition from the better-known names, said Stefano Aversa, managing director at automotive consultancy AlixPartners.

“With the Ghibli, Maserati is entering a higher-volume segment where Porsche and Jaguar are already well positioned,” he said.

source: interaksyon.com

European Mass Carmakers Worst Hit in August

PARIS (Reuters) - Monthly car registrations fell again in France and Italy in August with mass brands suffering most as Mediterranean countries bore the brunt of the euro zone debt crisis and its withering effect on consumer demand.

French sales tumbled 11 percent to 96,115 cars in August, for a 10th monthly decline, the CCFA industry association said.

Italian sales dropped about 20 percent, Fiat chief executive Sergio Marchionne said, anticipating official data due on Monday.

Spanish car sales rose 3.4 percent as customers rushed to complete purchases and beat a sales tax rise in September. Analysts said the downtrend would likely resume this month.

"We still do not see any signs of recovery on the horizon," said Flavien Neuvy, head of French auto-industry think tank Cetelem.

The country's main growth drivers are at a standstill, with mass-market carmakers worst hit, Neuvy said. "We are seeing a polarisation of demand, with premium and low-cost brands doing much better."

The mid-market Renault brand saw domestic registrations plummet 30 percent, even as its low-cost Dacia marque recorded a 21 percent gain on runaway sales of its no-frills Sandero subcompact and Duster SUV.

PSA Peugeot Citroen's domestic sales fell in step with the local market's 11 percent drop. Europe's second-largest automaker is cutting more than 10,000 jobs at home as it struggles to stem mounting losses.

Ford, which recently doubled its full-year European loss forecast to $1 billion, saw August sales plunge 17 percent in France and 22 percent in Spain.

French annualised sales are down about 20 percent from their 2010 peak, compared with 35 percent for Italy and Spain, "indicating the potential for further falls in France", Credit Suisse analyst David Arnold said in a note.

Kia was among lower-cost brands that recorded strong increases, as the South Korean automaker and affiliate Hyundai continued to build on a combined European market share that reached 5.9 percent in the first half - up 1.2 points year-on-year.

European No.1 Volkswagen also continued to grab business from rivals. Sales by its namesake brand fell 7.4 percent in France and rose 8.7 percent in Spain, outperforming both markets.

VW's luxury Audi division delivered gains of 8.4 percent in France and 9.7 percent in Spain, as luxury automakers advanced. BMW also rose in both markets.

Fiat brand sales tumbled 34 percent in France and rose 13 percent in Spain.

Spain's market increase was the first in seven months, as customers hurried to showrooms ahead of a September 1 increase in value-added tax (sales tax).

Some 10,000 consumers completed purchases they would otherwise have made later, the ANFAC automakers' association said - setting the scene for a challenging environment later this year.

September and October "are going to be a disaster", Spanish car dealers' association Faconauto said. Sales are set for a sharp fall unless automakers discount even more aggressively, a spokesman said.

source: nytimes.com