Automotive News - June 23, 2008 - (Page 16d)

16D • JUNE 23, 2008 Lithium ion battery is key to hybrid growth Bettina Mayer bmayer@craincom.de STUTTGART — Global suppliers are stepping up efforts to deliver advanced lithium ion batteries to automakers as fast as possible. “European and Asian suppliers will fight a head-to-head battle in lithium ion technology,” Continental AG’s chief technology officer, KarlThomas Neumann, told Automotive News Europe in an interview. Continental is the latest supplier to reveal plans to develop advanced hybrid vehicle batteries. It will work with cell specialist Enax, of Japan. Magna Steyr plans to start producing lithium ion battery packs in 2009. And Germany’s Robert Bosch GmbH has said it will make cells for lithium ion batteries. Neither Magna Steyr nor Bosch has said which company will be its battery partner. Japanese companies have an edge because they have had customers earlier, Neumann said. “But now the European industry is also focusing on lithium ion technology.” Analysts expect the lithium ion battery market to be about a $15.78 billion-a-year industry by the end of the decade and grow 10 percent a year. But not everyone is bullish. Hybrid leaders Toyota Motor Corp. and Honda Motor Co. are reluctant to switch from nickel-metal hydride batteries because of safety and cost concerns. Which supplier will dominate is difficult to predict. “Suppliers are moving very fast in this race,” says Burkhard Goeschel, chief technology officer of contract manufacturer Magna Steyr. Lithium ion batteries are seen as key to jump-starting the market for and Asian suppliers will fight a head-to-head battle in lithium ion technology. “ European KARL-THOMAS NEUMANN Continental AG ” low-emissions gasoline- and dieselelectric hybrids as well as full electric cars. The batteries are lighter and more powerful than the nickel-metal hydride units in cars such as the Toyota Prius. Europeans face entrenched competition from Japan. Sanyo Electric will start mass-producing lithium ion batteries with Volkswagen next year. The Japanese company, already a world leader in lithium ion batteries for consumer electronics, will open a plant in western Japan next year. NEC Corp. will work with Nissan Motor Co. and Renault SA. Matsushita Electric Industrial and Toyota are building two plants to make batteries for hybrids. Several automakers, including Toyota and General Motors, plan to launch vehicles equipped with lithium ion batteries starting in 2010. Mercedes-Benz will be the first carmaker to debut a lithium ion-powered hybrid car — the S400 BlueHybrid — in early 2009. Continental and Franco-American joint venture Johnson Controls-Saft are supplying the battery system. Johnson Controls-Saft opened the world’s first production plant for lithium ion vehicle batteries on Jan. 31 in Nersac, France. c With Russia hot, Ford will boost Europe production John Revill jrevill@craincom.de Ford of Europe aims to squeeze more production from its five major assembly plants this year to meet a surge in demand for its cars, especially in Russia. Because of Russia’s growth potential, Ford also is studying building another plant there, Ford of Europe’s manufacturing chief, Jim Tetreault, told Automotive News Europe. “All of our plants are operating at more than 100 percent of capacity, but there are always ways of getting more production,” Tetreault said. “It definitely is in our scope right now to increase production at every one of our plants.” Tetreault said production gains will be achieved by increasing the efficiency of each plant, but he declined to elaborate. Ford has announced plans to increase output next year at its plant in St. Petersburg, Russia, by 50,000 units annually, to 125,000. The plant builds the Focus and Mondeo sedans. But Tetreault also said Ford is studying ways to add capacity in Russia, possibly by building another factory. “We would like to have extra capacity now,” he said. “The Russian market is Ford’s plant in Saarlouis, Germany, is among many in Europe that have increased production beyond their original levels to meet increasing demand in Russia. Shown are Kuga crossovers in the Saarlouis factory. a very significant opportunity.” Tetreault did not say which cars Ford could build in a second Russian plant, but experts suggest that the Fiesta small car and Kuga crossover may be chosen. Ford’s Russian sales grew 9 percent to 59,700 units in the first four months of 2008, according to the Association of European Businesses in the Russian Federation. Nigel Brackenbury, Ford Russia managing director, said 95 percent of the vehicles he receives from the factory pass through the dealerships to buyers in less than a month. That keeps showroom vehicles in short supply, he said. “We are increasing supply from the rest of Europe to meet strong demand during the second half of the year as well as expanding the St. Petersburg plant,” Brackenbury said. Brackenbury: Tetreault: Ford Demand is strong may add a plant for new vehicles. in Russia. per day but has been increased to 1,980, while Valencia in Spain is building 2,030 units a day, up from 1,800. Ford plants in Saarlouis, Germany, and Genk, Belgium, also have increased production beyond their original levels. “A big reason for the improvements is that three of our plants operate on three shifts,” Tetreault said. “But that means you don’t have downtime, so the equipment has to work, and work reliably.” Excluding its joint venture plant in Turkey, Ford says its European production last year rose 2.3 percent to 1,644,701 units. Ford has taken over a former Daewoo plant in Romania that will produce the Transit Connect van and a small car. c Three shifts But for now, any extra production will come from Ford’s plants outside Russia. Ford’s Cologne, Germany, factory originally was tooled for 1,800 units Growing demand Ford is being pressed hard to meet demand in Russia, where it has become the third-biggest import brand, behind Chevrolet and Hyundai. Webasto sees more demand for retractable hard tops Bettina Mayer bmayer@craincom.de Webasto CEO Franz-Josef Kortuem: More convertibles are getting retractable hard-top roofs. MUNICH — Webasto AG expects strong growth in retractable hard tops. More than half of the convertibles sold in Europe are equipped with retractable hard-top roofs, said CEO Franz-Josef Kortuem. “And there are more to come in the next years,” he told Automotive News Europe at Webasto’s headquarters near here. Webasto supplies the hard top for Ferrari’s new California GT convertible, which will be Ferrari’s first hardtop convertible. The two-seater will debut at the Paris auto show in October. Kortuem says Ferrari’s choice of a retractable hard top for the California GT means that other carmakers likely will do the same with their convertibles. Hard tops — and other roof systems — are important for Webasto. In 2007, convertible, roof and body systems accounted for 1.1 billion euros ($1.71 billion) of total group sales of $2.80 billion. Webasto manufactured 5.7 million roofs last year and claims a 30 percent share of the global market for retractable hard tops. Market shakeout? To support its growth in roofs, the company plans to open a slidingroofs plant in Arad, Romania, this year. Webasto hopes to benefit from strong growth in Romanian car manufacturing. Kortuem said the company also has acquired property in Moscow, but he didn’t elaborate. Russia is one of the fastest-growing car markets in Europe. In roof systems, Webasto operates in a crowded field. Other European suppliers of retractable hard tops are Magna Car Top Systems, Karmann and Edscha, all headquartered in Germany; and French coachbuilder Heuliez. There are even more players in the overall market for vehicle roof systems. “We’re interested in a market shakeout,” said Webasto CFO Holger Engelmann. Blurring lines According to the research firm JATO Dynamics, orders for convertibles with retractable hard tops in Europe’s five biggest markets increased to 213,642 in 2007 from 84,529 in 2003. At the same time, sales of softtop convertibles in Germany, Spain, France, Great Britain and Italy de- creased to 139,342 from 216,739. Retractable hard tops are more popular because the traditional borders between coupes and cabrios are blurring, Kortuem said. Customers increasingly are demanding multifunctional cars, he said. Webasto and its rivals are trying to make retractable hard tops lighter by using new materials. A lighter roof system can be operated by smaller electric motors and use less space in a car’s trunk. For example, BMW and Edscha have developed a lightweight retractable hard top for the BMW 3-series convertible that allows it to have the same exterior design as the coupe. The current retractable hard top weighs about 216 pounds — which, according to BMW, is only 88 pounds more than a soft-top version would be. c

Table of Contents Feed for the Digital Edition of Automotive News - June 23, 2008

TRW exec: We're in the 'sweet spot' for growth 'Like house of cards,' used trucks fall Detroit 3 a big drag in global supplier race Ford rethinks big-block V-8 plan Looters and broken levees Plastech's Brown stands to get $9.25 million Lawmakers: Redo roof rule Hunt takes job at Gallup Lawmakers urge roof rule rewrite Webinar offers tips on going green Lawmakers: Redo roof rule Webasto sees more demand for retractable hard tops Why small isn't always big To move metal, hire an Ironman Chevy limits ZR1 Corvette to top dealers Lithium ion battery is key to hybrid growth With Russia hot, Ford will boost Europe production BMW exec: We can grow in U.S. The man who put the wind in GM's sales GM's parts ordering comes down to Earth More Fits for U.S. in fall GM: Volt buyers deserve tax credit Mercedes exec seeks more exclusive technology from suppliers Bosch, Mahle execs to lead turbo venture Supplier personnel ZF moves steering operations in Ky. Slowing Volvo, Saab add to Sweden's industry woes Feds: Drivers don't have to hang up phones Magna eyes new growth strategy: Powertrain-driveline modules Alleged sales scam snares Ohio dealers GM center troubleshoots IT in plants around the world Senator: Plants have capacity for plug-ins Lots of talk but little to show Going green pays off The Detroit 3 are smart to cut sales to fleets Drop Mercury? No; Ford needs it Awareness isn't GM's problem Leno was off base in bashing U.S. cars Roofs, rollovers and reckless driving Big-truck sales fall 15.2% in May Serra deal reflects GM channel strategy No. 2 vehicle hauler to go out of business Chinese company's car looks a lot like a Mini Honda taps star power for fuel cell car Dealer wanted media attention — and got it Dealers European sales dip 7.8% in May Merger gives Hughes Telematics a cash boost Mexico sales bounce back in April Suzuki dealers test system to turn Web leads into sales Bosch-Samsung venture to make lithium batteries Hyundai plans Elantra hybrid for Korea in '09 RV sales drop 8.5% in April Japan’s best-kept secret Utilities join automakers for plug-in r&d Ford likely to build '11 Focus at 2 plants Glut of '08 Ford F-150s delays launch of '09s '09 Porsche SUV prices rise Ford calls off Ohio plant sale Ford idles Mich. truck plant CarMax net earnings decline Dodge Journeys recalled 2009 Chrysler hybrid SUVs start at $45,340 GOP: Climate bills would make $4 gas look cheap EVs on eBay: It's all the rage In terms of market value, the General is a buck private Sign of the times: Hummer store to be used-car lot Bob Stempel's legacy is the future Flying 1 series? It's BMW's joke Dealer hurt in sky-dive navigates the road to recovery Opel car recognizes signs; BMW plans similar system JCI, Magna unit buy main parts of Plastech The little engines that could Suppliers to the 2008 Dodge Viper

Automotive News - June 23, 2008

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