Coronavirus takes its toll T
he almost 100% decline in South Africa’s new vehicle sales in April – coupled with a 97,3% drop-off in vehicle exports – bears testimony to the impact COVID-19 is having on the country’s automotive industry. That’s an assessment by Dr Norman Lamprecht, Executive Manager of the National Association of Automobile Manufacturers of South Africa (NAAMSA), who, earlier this month, published the 2020 Automotive Export Manual, an annual analysis of the state of the local industry from a production perspective. According to Lamprecht, the coronavirus pandemic has left businesses and consumers uncertain about the local industry’s future. However, he points out: “As the bedrock of South Africa’s manufacturing sector, vehicle and automotive component production – which eased back into operation as of May 4 – remain imperative to the country’s economic fortunes.” Lamprecht says that though South Africa faced domestic and foreign economic headwinds throughout 2019, automotive manufacturing excelled in terms of export production volumes, setting several records that helped to compensate for the progressive decline in domestic new vehicle sales over the past six years. “The export value of vehicles and automotive components comprised a record R201,7-billion, equating to 15,5% of South Africa’s total exports for 2019. A record 387 125 vehicles, worth a record R148-billion – along with a record R53,7-billion in automotive components – were exported to 151 countries,” he says. Lamprecht notes that the broader contribution of South Africa’s automotive industry to the country’s GDP in 2019 reached 6,4% – made up of 4,0% from the manufacturing sector and 2,4% from the retail sector. “As the largest manufacturing sector in the country’s economy, a substantial 27,6% of value addition within domestic manufacturing output was derived from vehicle and automotive component activity, positioning the industry and its broader value chain as a key player within South Africa’s indus-
trialised landscape,” he maintains. According to Lamprecht’s analysis, from a value perspective the industry’s top export market was Germany, which bought 37 152 vehicles worth R75,5-billion. The UK, which bought 101 401 locally produced units, ranked as South SOUTH AFRICAN VEHICLE EXPORTS, 2015 TO 2019
Country UK
2015
2016
104 098 110 356
2017
2018
2019
98 358
119 578 101 401
Germany
9 915
12 297
10 423
25 513
37 152
Japan
15 828
33 296
42 492
44 027
33 435
France
16 130
19 204
19 055
23 400
25 629
Australia
21 197
21 446
23 336
21 594
16 284
Italy
2 892
6 238
5 088
8 870
14 624
Austria
1 826
2 317
2 105
2 749
12 675
USA
48 899
47 627
40 414
11 440
12 437
Netherlands
396
601
397
1 481
12 146
Belgium
8 772
8 116
6 902
6 338
11 379
Other
102 772
82 268
88 535
85 013
109 136
Exports
332 725 343 776 337 105 350 003 386 298
Production
583 883 571 791 574 075 581 469 603 115
Units Exported
56,98%
60,12%
58,72%
60,19%
64,05%
Continued on P2
Auto Report, May 2020 1
From Page 1 Africa’s top destination for vehicle exports, while Volkswagen South Africa’s Uitenhage-made Polo topped the individual model rankings for export sales. Lamprecht says South Africa remains a strategic supplier of catalytic converters to the world, and by value, the component maintained its dominant export position in 2019. Equally, trade arrangements the country enjoys with the European Union (EU) – which allows for duty-free vehicle and automotive component exports to 28 member states – as well as the AGOA trade arrangement with the USA, served to enhance sales to those regions. “The European Union, which received exports worth R129,7 billion – representing 64,30% of the total export value of R201,7 billion – was the industry’s main customer,” he says, adding that countries in Africa placed second, importing vehicles and components worth R31,9 billion. “The African Continental Free Trade Area agreement which will be implemented in July could unlock many more opportunities for South Africa to expand regional integration within the continent, considering that 84,3% of the country’s automotive exports into Africa were to the SADC region, the free trade area of which South Africa is part,” he says.
Coronavirus takes its toll value, however, German-manufactured vehicles notched an amount that was higher by almost 50%. According to Lamprecht, 46 passenger car brands encompassing 2 507 model derivatives were on sale in South Africa in 2019 – the widest choice of new cars to market-size ratio in the world. “Nine of the top 10 selling vehicles in 2019 were locally-built passenger cars and light commercial vehicles. “Toyota’s Hilux, with 40 934 units, was the most popular model sold in the country, followed by sales of 29 681 units by the top -selling passenger car, Volkswagen’s Polo Vivo,” he says.
Benz, Nissan, Toyota and Volkswagen – increased to R106,8 billion in 2019, up by R9,0 billion, or 9,2%, from the R97,8 billion the previous year. Germany, Thailand, Japan, the US and China represented the main countries of origin for the parts. Though South Africa remained 22nd on the list of global vehicle producers, the country’s share of the world market improved from 0,64% to 0,69%. In terms of global light commercial vehicle production, the country was ranked 14th with a market share of 1,25%. Lamprecht warns that since South Africa is highly exposed to economic conditions in China and the world economy in general, the COVID-19 pandemic will continue to stifle the country’s export-oriented industries.
As far as import volumes go, Lamprecht Lamprecht adds that, in line with the indussays India topped the list, delivering a total try’s record vehicle production volume, of 106 199 vehicles to South Africa – most original equipment (OE) component im“South Africa’s exporting companies will of them entry-level, compact passenger ports by South Africa’s seven vehicle manube required to consider various scenarios cars or light commercials. In terms of facturers – BMW, Ford, Isuzu, Mercedesfor the world economy and global trade patterns in the short to meSOUTH AFRICA’S AUTO INDUSTRY: KEY INDICATORS 2018 2019 dium term,” he says. “The 57,73-million 58,78-million Population automotive industry across 4,7% 4,1% Consumer Price Index the world is currently experiR4 873,9-billion R5 077,6-billion Gross Domestic Product encing unprecedented challenges due to the global lock6,8% 6,4% Broader automotive industry contribution to GDP downs. 29 855 30 250 Average monthly employment by vehicle manufacturers “However, since the grand 80 000 80 000 Automotive component sector employment vision of the automotive industry involves electric vehiR7,2-billion R7,3-billion Capital expenditure – vehicle manufacturers cles, connected cars and R3,5-billion R3,5-billion Capital expenditure – component sector autonomous driving, the latter 552 227 units 536 611 units Total new vehicle sales two could just be accelerated as a result.” 610 060 units 631 983 units Total vehicle production South Africa’s global vehicle production ranking South Africa’s global vehicle production market share
22 0,64%
22 0,69%
Vehicle ownership ratio per 1 000 persons Vehicle parc (number of registered vehicles)
176 12,46-million
179 12,70-million
Total automotive export earnings Number of export destinations Total South African vehicle exports
R178,8-billion 155 351 139 units
R201,7-billion 151 387 125 units
Value of vehicle exports
R127,4-billion
R148,0-billion
Value of automotive component exports Top automotive trading partner (imports and exports)
R51,3-billion Germany
R53,7-billion Germany
Top automotive trading region (imports and exports)
EU
EU
Top country of origin for total automotive imports
Germany
Germany
Top country of origin for vehicle imports
India
India
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Auto Report, May 2020
Lamprecht says that globally there is an interdependent relationship between the automotive industry and governments – the automotive industry depends on government support to improve viability, while governments support automotive industries to spur economic development. “In South Africa the success of the country’s automotive industry has and will continue to be of central importance to the future growth and prosperity of the economy,” he says.
NAAMSA’s assessment of COVID-19’s impact I
n his review of the performance of the country’s automotive industry during first quarter of 2020, Michael Mabasa, CEO of the National Association of Automobile Manufacturers of South Africa (NAAMSA), paints a bleak picture. He says in line with the temporary closure of global automotive facilities towards the end of the first quarter, South Africa’s motor industry suspended production following the nationwide lockdown imposed by Government at midnight on March 26. As a result, three working days were lost in the month, impacting negatively on new vehicle sales and export sales and giving an indication of the effect COVID -19 would have on the domestic automotive industry. Mabasa points out that the country was already in the throes of recession before the advent of the COVID-19 pandemic, with new vehicle sales mirroring deteriorating economic conditions. He says the South African Reserve Bank’s interest rate cut of 125 basis points during the quarter was aimed at supporting an already fragile economy by easing financial conditions for households and companies. Also, he says, while unexpected tax relief for individual taxpayers announced during country’s 2020 budget was welcome, an emissions tax increase and the lowering of the CO2 threshold on passenger cars – as well as an increase in the tax on double-cab bakkies – effectively meant price increases for vehicles; “this during a sustained period of market decline.”
“The global automotive industry has been hit hard by the COVID-19 pandemic, with a significant fall in demand forecast for all the major automotive regions in 2020. The extent and impact of the fall in global vehicle demand will become clearer in the domestic industry’s export sales over the short to medium term.” According to NAAMSA’s figures, aggregate industry employment as at March 31 totalled 29 996 workers, reflecting a decline of 670 jobs compared to the 30 666 head count at the end of December, 2019. Further, first quarter aggregate industry new car sales, at 80 838 units, reflected a decline of 5 506 units, representing a fall of 6,4% compared with the 86 344 new cars sold during the corresponding quarter of 2019. Equally, aggregate industry commercial vehicle sales during the first quarter of 2020, at 36 418 units, recorded a decline of 10 508 units or a fall of 22,4% against
Mike Mabaso, NAAMSA’s CEO… “All vehicle sales segments reflected substantial declines in the first quarter…”
2019’s figure. “All vehicle segments reflected substantial declines compared with corresponding and previous quarters. Analysis of the figures reflects the impact of the recessionary macro-economic climate in the country coupled with the initial signs of the impact of the COVID-19 lockdown and closure of the entire automotive industry,” Mabasa says.
SOUTH AFRICA’S VEHICLE SALES, PRODUCTION, IMPORT AND EXPORT DATA, 2015 - 2021 Projected
Projected
Cars Local Sales
2015 111 890
2016 98 743
2017 100 528
2018 99 494
2019 88 608
2020 70 000
2021 80 000
Exports (CBU)
228 459
237 715
230 047
220 889
260 057
190 000
230 000
Total Domestic Production
340 349
336 458
330 575
320 383
348 665
260 000
310 000
Total Imports
301 772
263 354
268 496
266 545
267 556
200 000
230 000
Re-exported imports
1 265
832
910
792
786
--
--
Total
412 397
361 265
368 114
365 247
355 378
270 000
310 000
LCVs
He adds: “Businesses and consumers are currently uncertain on what the future holds through the lockdown restrictions, the unemployment rate increases, the negative exchange rate impact, the negative annualised GDP growth rate, and ratings agency Moody’s downgrade, all putting pressure on disposable income and debt levels.”
Local Sales
140 870
130 346
136 438
133 081
129 338
95 000
115 000
Exports
102 664
104 987
105 862
128 005
125 112
90 000
110 000
Total Domestic Production
243 534
235 333
242 300
261 086
254 450
185 000
225 000
Total Imports
34 279
29 202
27 165
26 761
24 197
19 000
23 000
Re-exported imports
337
232
286
317
343
--
--
Total
174 812
159 316
163 317
159 525
153 192
114 000
138 000
Mabasa says only once full automotive production resumes, along with the reopening of new vehicle dealer networks, will the impact of COVID-19 on domestic new vehicle sales and exports become clearer.
MCVs & HCVs NAAMSA sales (incl imports)
30 441
26 971
26 273
27 455
28 041
21 000
24 000
Exports
1 120
1 050
990
1 136
827
500
800
Total
30 441
26 971
26 273
27 455
28 041
21 000
24 000
Total Aggregate Market Total Aggregate Exports
617 650
547 552
557 704
552 227
536 611
405 000
472 000
333 845
344 816
338 095
351 139
387 125
280 500
340 800
Overall Domestic Production
615 444
599 812
600 138
610 060
631 983
466 500
559 800
GDP Growth Rate
1,3%
0,6%
1,3%
0,8%
0,2%
-6,1%
2,2%
“NAAMSA expects that demand for domestic new vehicles will continue to remain under pressure over the medium term until there is greater economic stability, while automotive exports will remain a function of the performance and direction of global markets.
Auto Report, May 2020 3
Toyota outlines the ‘new normal’ T
oyota South Africa Motors (TSAM) has announced that it has cautiously resumed operations at its Prospecton Plant in Durban, while adopting a similarly guarded approach to its parts warehouse and dealerships across the country.
In the showroom
In a statement, company spokesmen say TSAM is taking a careful and considered approach to ensure that the risk of COVID-19 infections across its entire value chain is reduced. President and CEO Andrew Kirby says the spread of the coronavirus across the globe marked the first time in history that all of Toyota’s affiliate manufacturing plants halted operations. “We are therefore moving into uncharted territory as we begin the process of a phased restart of operations,” he says. All dealerships affiliated to TSAM are up and running. “When South Africa entered Lockdown Alert Level 4, our dealers immediately embraced the opportunity to once again open for business, albeit with necessary restrictions,” says Senior Vice-President of Sales and Marketing, Leon Theron. “Our Toyota, Hino and Lexus dealers have commenced with vehicle service, sales and repair in ways that prioritise customer health and safety by implementing the very highest standard of cleaning
In the workshop
4
Auto Report, May 2020
and hygiene measures in conjunction with appropriate social distancing.” Parts operations, too, are open to support service and repair activities at dealerships. “There are scores of customers whose vehicles’ service intervals fell in the middle of the hard lockdown,” says Theron, adding that prior to re-opening, the company’s 40 000m² warehouse and distribution centre in Atlas Road, Boksburg, had to be fumigated and disinfected before employees returned to work. He adds that in order to mitigate the risk of contracting COVID-19 while travelling to work or home, TSAM has ar-
ranged shuttle services for employees who rely on public transport for commuting. “Staff members are collected from their homes, with a designated crew leader on board to ensure that every passenger is screened for temperature, sanitisation and is wearing a mask. “The crew leader also ensures that anyone with a temperature reading above 37,5˚C may not go to work, and that the shuttle may not exceed the 70% seating capacity and that all social distancing protocol is observed in the vehicle,” Theron says. On arrival at work, the staff members undergo stringent screening measures. With social distancing in place, employees are screened for temperature checks again and asked questions about their social movements as well as possible interactions with COVID-19 cases. Only employees who pass the checks are allowed to work, while those whose results are out-of-range are attended to on-site by medical personnel. “It goes without saying that the wearing of masks – as uncomfortable as it is – has become compulsory in the workplace. We also want everyone to be knowledge-equipped and have therefore made a training session on COVID-19 etiquette compulsory to all staff at the Continued on Page 5
TMC forecasts hefty drop in profitability
From Page 4
parts warehouse,” Theron says. Nigel Ward, TSAM’s Executive Vice-President of Manufacturing at Toyota’s assembly plant, says resumption of activities at the facility have started slowly in order to protect the workforce as well as to fine-tune operations.
I
n the face of the global coronavirus pandemic, Toyota Motor Corporation (TMC) is forecasting consolidated nett revenues in its current financial year at 24trillion yen (about $222,82-billion) – a decrease of 19,8% compared with the figure achieved in the 2020 fiscal. Further, the company expects operating income to total just 500-billion yen (about $4,64-billion) – a decrease of about 79,5%. In the warehouse
“We will continue in the same vein – assessing the situation in line with the Department of Trade, Industry and Competition – and, when necessary, we will amend our approach commensurate to all factors at play, including lockdown regulations and the health of our employees,” he says. Ward says only workers with no underlying health issues were allowed back at the plant in May. Operations resumed with stringent measures in place, the focus being to create a safe working environment that promoted social distancing and personal hygiene, as well incorporating proactive measures to prevent the spread of COVID19 at the plant. According to the statement, coronavirus protocol means that all employees entering and exiting the plant premises have their temperatures taken, while the factory floor has been clearly marked to help maintain the safe working distances. In addition, canteen tables have been redesigned with partitions while the use of showers has been discontinued. As of the third week of May, production was at 40% of prelockdown volumes (with one shift) and was expected to
In the factory
reach 75% of pre-lockdown volumes in the last week of the month. Kirby says the challenges represented by the coronavirus pandemic present the industry with an opportunity to do things differently. “History has shown us that when a global or even national crisis impacts on a country, there is always a quantum or step-change in the market and in the business environment.. “What we do know is that business will never be the same again. Manufacturing will change, remote working will change, digitisation will accelerate and customers’ buying patterns will never be the same again. “This is a tremendous opportunity for us to change the way we do business and make the step-changes that are needed,” he says.
Releasing its financial results for the year ending March 31, 2020, Toyota’s spokesmen said the global spread of COVID-19 and responses to the pandemic by governments and stakeholders had adversely affected the company in a number of ways. “The production and sales of automobiles have already been greatly affected. We hope that the outbreak will be contained as early as possible, and the entire Toyota group will work as one to deal with this issue,” according to a statement. By TMC’s reckoning, the global vehicle market will gradually recover following a bottoming out between April and June. However, the company’s executives expect augmented economic improvement only towards the end of the year and into the first half of 2021. “The impact of COVID-19 is wideranging, significant and serious, and it is expected that weakness will continue for the time being,” the statement said. According to the company’s Chief Financial Officer, Kenta Kon, consolidated global vehicle sales in the 2020 fiscal totalled 8 958 423 units – a decrease of 18 372 units (down 0,2%) compared with the number achieved the previous year. In his outlook for this year’s fiscal, Kon said the company’s global vehicle sales were expected to total about 7,0 million units, representing a drop of about 21,8% compared with this year’s figure. Based on that assumption, he forecast consolidated sales revenues of 24-trillion yen – and operating income of 0,5trillion yen – for the financial year ending March 31, 2021, based on an exchange rate of 105 yen to the US dollar and 115 yen to the euro.
Auto Report, May 2020 5
Volkswagen transforms PE car plant into 4 000-bed COVID-19 hospital crisis. The company has also been working to manufacture ventilators, respirators and masks in partnership with other local businesses, and has offered ongoing support to the Business Chamber and the municipality in their efforts to bolster medical care in Nelson Mandela Bay Metro.
Thomas Schaefer, Chairman and Managing Director of VWSA (extreme left), leads members of local and provincial governments through the company’s Neave plant, which is being converted into a 4 000-bed hospital for coronavirus patients
T
o help local and provincial governments to provide care to coronavirus patients in Nelson Mandela Bay, Volkswagen Group South Africa (VWSA) has made one of its Port Elizabeth plants available as a temporary medical facility. The disused plant in Neave, near Korsten in Port Elizabeth, has been converted for use as an overflow medical facility capable of accommodating 4 000 beds for patients diagnosed with the COVID-19 virus, including those who require oxygen. The conversion of the 66 000m² building is the result of collaboration between VWSA, the Nelson Mandela Bay Business Chamber, the Nelson Mandela Bay Municipality and the Eastern Cape Department of Health. The German Federal Ministry for Economic Cooperation and Development (BMZ) provided funding of 5,2-million Euros (about R107-million) to support the conversion, with some of the money earmarked for the procurement of personal protective equipment (PPE) for staff at regional tertiary hospitals, regional primary care clinics and 49 coronavirus test centres. The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH provided the performance framework to account for
6
Auto Report, May 2020
the public and private engagement and fostered cooperation with the private sector to establish a sustainable, strategic alliance in Nelson Mandela Bay. VWSA contributed R28-million to the project. Additionally, the company provided project management for the conversion of the facility and management of the procurement of the critical PPE. The plant has been made available to Government until March 2021, with the Department of Health and the NMBM responsible for the management and daily operations of the facility. According to a statement released by VWSA, the Business Chamber’s role has been to assist in facilitating the project and garnering further support from its membership base. Following the signing of the agreement between the parties, the facility will be completed in phases and handed over to government as the need for medical care in the Metro develops. At time of writing, preparation of the first phase was almost complete, providing accommodation for up to 1 484 patients. The commitment represents VWSA’s latest move in the fight against the coronavirus
“Solidarity is crucial in a crisis – and COVID-19 is an unprecedented global threat,” says Thomas Schaefer, Chairman and Managing Director of VWSA. “Through collaboration we will be able to achieve the position of strength we will need to fight the COVID-19 virus. “VWSA has devoted time to finding innovative ways in which we can combat the scourge and prepare the Metro to care for those who are infected. We are highly appreciative of the financial support from the BMZ/GIZ as it will help us to continue to offer support to protect our citizens and our country.” Gerd Müller, Germany’s Minister for Economic Cooperation and Development, said his government’s support for the project formed part of a global initiative aimed at strengthening and expanding health infrastructure, providing emergency aid to stabilise regions in crisis and safeguarding jobs and food supply. “We will either beat Covid-19 worldwide together or not at all. That is why I support VWSA’s plan. Our contribution forms part of our worldwide Emergency COVID-19 Support Programme,” he said. Delivering an address late this month regarding South Africa’s strategy in managing the spread of coronavirus, President Cyril Ramaphosa paid tribute to the many companies that had gone beyond what was required by regulation to support the country’s response, commending VWSA for its initiative in establishing the facility.
COLLLISION INTERVENTIONS CONTINUED the severity of impact. Some systems also detect pedestrians or other objects; Reverse Automatic Emergency Braking: Detects potential collisions while in reverse gear and automatically brakes to avoid or lessen the severity of the impact. Some systems also detect pedestrians or other objects. DRIVING CONTROL ASSISTANCE Adaptive Cruise Control: Cruise control that assists with acceleration and/or braking to maintain a driver-selected gap to the vehicle in front. Some systems can come to a stop and continue, while others cannot;
ADAS: Clearing the confusion
C
ommon names for Advanced Driver Assistance Systems (ADAS) have become increasingly prevalent on new vehicles – but terminology used by vehicle manufacturers to describe the technology tends to vary. In an effort to clarify the naming convention, a number of automotive organisations in the United States – including SAE International, JD Power and Associates, the Automobile Association of America, Consumer Reports and the National Safety Council – have developed a terminology framework which aims to better inform drivers on aspects of ADAS in the vehicles they drive. “With advanced safety functions being added to new vehicles every year, we recognise that it’s important that consumers understand the technologies they are using – and common descriptions can help,” says Chad Zagorski, chairman of SAE International’s Active Safety Systems Standards Committee. He says the new common naming outline is simple, specific and based on system functionality. “The list is meant to aid in reducing driver confusion and define the functions of ADAS in a consistent manner. This is critical to ensure that drivers are aware these systems are designed to assist, not replace, an engaged driver. The list will be refined as new systems are developed.” Released this month for global consumption, the list divides ADAS into categories.
Here are some of the redefined terms: COLLISION WARNINGS Blind Spot Warning: Detects vehicles in the blind spot while driving and notifies the driver to their presence. Some systems provide an additional warning if the driver activates the turn signal; Forward Collision Warning: Detects a potential collision with a vehicle ahead and alerts the driver. Some systems also provide alerts for pedestrians or other objects; Lane Departure Warning: Monitors the vehicle’s position within the driving lane and alerts the driver if the vehicle approaches or crosses lane markers; Parking Collision Warning: Detects objects close to the vehicle during parking manoeuvres and notifies the driver; Rear Cross Traffic Warning: Detects vehicles approaching from the sides at the rear of the vehicle while in reverse gear and alerts the driver. Some systems also warn of pedestrians or other objects. COLLLISION INTERVENTIONS Automatic Emergency Braking: Detects potential collisions with a vehicle ahead, provides forward collision warning, and automatically brakes to avoid a collision or lessen the severity of impact. Some systems also detect pedestrians or other objects; Automatic Emergency Steering: Detects potential collisions with a vehicle ahead and automatically steers to avoid or lessen
Lane Keeping Assistance: Provides steering support to assist the driver in preventing the vehicle from departing a lane. Some systems also help to keep the vehicle centred within a lane; Active Driving Assistance: Provides steering and brake/acceleration support to the driver at the same time. The driver must constantly supervise this support feature and maintain responsibility for driving. PARKING ASSISTANCE Backup Camera: Displays the area behind the vehicle when in reverse gear; Surround View Camera: Displays the immediate surroundings of some or all sides of the vehicle while stopped or during low speed manoeuvres. Active Parking Assistance: Assists with steering and potentially other functions during parking manoeuvres. The driver may be required to accelerate, brake, and/ or select gear position. Some systems are capable of parallel and/or perpendicular parking. The driver must constantly supervise this support feature and maintain responsibility for parking; Remote Parking Assistance: Without the driver being physically present inside the vehicle, provides steering, braking, acceleration and/or gear selection while moving a vehicle into or out of a parking space. The driver must constantly supervise this support feature and maintain responsibility for parking; Trailer Assistance: Assists the driver with visual guidance while backing towards a trailer or during backing manoeuvres with a trailer in tow. Some systems may provide additional images while driving or backing up, and others may offer steering assistance during reversing manoeuvres.
Auto Report, May 2020 7
Video gamers pioneer an autonomous drive world
every day, to ensure the software is thoroughly tested before being deployed – whether that’s on-road, off-road, down a mine or around an airport.” Todd Gibbs was the first specialist developer from the entertainment world to move to Oxbotica, having previously headed up game development at Natural Motion, a company responsible for masterminding the design and launch of the popular CSR Racing game. He says: “At Oxbotica, we have attracted some of the brightest talent from the video game industry because they bring a speed of development and deployment unique to that industry. “There is a lot of commonality between developing a chart-topping game and autonomous software, the most valuable being robust coding principles and a focus on CPU efficiency. “We are able to write new code, debug and test it in real-time without sacrificing robustness or safety.”
Real-time video game coding is helping autonomous software to learn efficiently
A
British company involved in autonomous vehicle development is employing video game experts who have worked on some of the highest-rated titles of the last decade to produce self-driving software for cars of the future. Specialist developers who previously wrote the code for flight simulators, racing games and sports titles on consoles or smartphones are helping to create the simulated world in which Oxford-based Oxbotica is testing its autonomous vehicle software – whether driving on an urban street or offroad in a mining quarry. The methodology behind animation technology used in the development of movies is also being harnessed by the company, while a video game engine – not dissimilar to the ones behind Fortnite and Call of Duty – is helping to run its virtual test programme. “Simulation is one of the key enablers for Oxbotica’s autonomous software stack and its goal of universal autonomy, allowing engineers to run virtual testing in an infinite number of scenarios; varying environmental conditions, traffic congestion, and modelling unpredictable
8
Auto Report, May 2020
pedestrian behaviour or scenarios which can’t easily be recreated in the real world,” says a statement released by the company. “Software changes can then be played back through the simulations in a fraction of the time required for live testing, allowing development to happen quickly, safely and at scale. “Simulated scenarios can be run all day,
The company’s modular software stack aims at twinning simulation testing with on-road trials – conducted in London and Oxford – to build a full autonomy ecosystem that can be deployed at scale, anytime, and in any place. Founded in 2014 by Oxford professors Paul Newman and Ingmar Posner, Oxbotica is regarded as one of the world’s leading producers of autonomous drive software and, in 2016 became the first company to test a self-driving vehicle in public in the United Kingdom.
New camera system from Land Rover
L
and Rover claims to have introduced a world first through its innovative ClearSight Ground View technology – a camera system that allows drivers to see obstacles ahead of, and underneath, a vehicle. Additionally, the system can be used to improve rear-view visibility from the driver’s seat, thanks to a rear-view mirror that transforms into a video screen. Each of the features is available in the new Discovery Sport and Range Rover Evoque, as well as on the soon-to-be-launched Defender. Mercedes-Benz’s S-Class undergoing ESP testing at Schwieberdingen in 1995
Bosch marks 25 years of ESP
T
wenty-five years ago, Bosch and Daimler pioneered a world first by introducing to a Mercedes-Benz S-Class an electronic stability programme, dubbed ESP. These days, 82% of vehicles sold globally are equipped with the anti-skid system. “Development of ESP was a milestone on our path to Vision Zero – no more road deaths,” says Harald Kroeger, a member of Bosch’s Board of Management. He reveals that the company has manufactured more than 250-million ESP units since the system’s introduction, pointing out that, with seatbelts and airbags, the technology is regarded as one of the most important life-savers in a vehicle. “Modern cars are inconceivable without this electronic guardian angel,” he maintains, adding that Bosch’s tests show that up to 80% of all skidding accidents can be prevented by ESP. The system uses smart sensors which, 25 times a second, detect whether a vehicle is heading in the direction the driver is steering. If there is a discrepancy between the two, ESP reduces engine torque and automatically brakes individual wheels to prevent the vehicle from breaking away. “This may sound simple, but it is, in fact, a complex process,” says Kroeger. The story behind the technology is a long one. It started in the 1980s with independent efforts by Bosch and DaimlerBenz to achieve more vehicle stability.
From 1992 until the launch of the SClass in 1995, the two companies worked jointly on the project. Initially, however, ESP remained a pricey option on car maker’s high-end models. Then an “elk test” in 1997 helped the system achieve a breakthrough – during an assessment by a Swedish motoring magazine, a Mercedes-Benz A-Class flipped over when making an abrupt evasive manoeuvre. Daimler responded by equipping its cars with ESP as a standard feature. Since then, more and more vehicles from many different automakers have adopted the system. Legislators, too, have recognised the benefits of ESP and have made it mandatory equipment for vehicles sold in many parts of the world. Experience from Europe shows that if the proportion of vehicles featuring the system rises, accident numbers fall. “ESP has taken road safety to a new level,” says Kroeger. “And it has done so across a diverse range of vehicle types, from micro cars to commercial vehicles and even motorcycles.” He says ESP has become the basic technology for many driver assistance systems, as well as for automated driving; opening opportunities to further reduce the number of accidents and road deaths. In addition to Bosch, several other suppliers have produced their own versions of ESP. The list includes Aisin, Continental, Delphi, Denso, Hyundai Mobis and ZF.
According to a company statement, ClearSight represents the realisation of the brand’s transparent bonnet concept previewed on the Discovery Vision prototype six years ago. “ClearSight Ground View displays a camera view of the front underside of the vehicle onto a large central touch screen, allowing the driver to virtually see through the bonnet,” the statement says. Cameras in the front grille and on the door mirrors project a 180˚ view onto the screen to show what is ahead of, and underneath, the front of the vehicle, helping the driver to maintain visibility when negotiating extreme terrain or when kerb-hopping in the urban jungle. The system is offered in conjunction with an optional, four-camera set-up which offers a 360°, bird’s eye view of the vehicle’s exterior, enabling multiple focus points to be displayed on the screen simultaneously – handy, Land Rover’s spokesmen say, for manoeuvring into and out of tight parking spaces. In terms of visibility at the rear of the vehicle, a camera mounted in an antenna pod on the roof feeds high-definition video images to a digital display embedded in the rear-view mirror, providing an improved field of vision for the driver. Though designed with a protective lip to prevent mud and water soiling the camera’s lens – and incorporating a hydrophobic coating that helps to repel water spray – in the unlikely event that the camera is ever obscured, drivers can change back to a traditional view by activating a switch on the mirror unit. According to the statement, the ClearSight technology is included as standard equipment on the HSE variant of each of the vehicles, as well as on First Edition versions of the Evoque, and is available as an option on all other models.
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Volvo caps top speed on all of its cars W
ith a view to reducing serious injuries and fatalities in traffic accidents involving its cars, Volvo has implemented a maximum speed limit of 180km/h for every model it produces.
Malin Ekholm, head of Volvo Cars’ Safety Centre, says car makers have a responsibility to help improve traffic safety. “Our speed limiting technology, and the dialogue that it initiated, fits that thinking.
Further, all Volvos will be equipped with Care Keys to allow owners to set additional limitations with regard to the vehicle’s top speed, for example before lending the car to other family members or to young, inexperienced drivers.
“The speed cap and Care Key help people reflect and realise that speeding is dangerous, while also providing extra peace of mind and supporting better driver behaviour,” she says.
“Together, the 180km/h speed limitation and Care Key send a strong signal about the dangers of speeding, underlining Volvo Cars’ position as a worldwide leader in safety,” says a statement issued by the company. “Both features illustrate how car makers can take active responsibility for striving to achieve zero traffic fatalities by supporting better driver behaviour.”
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n an analysis entitled COVID-19: Growth Impact Assessment for the Automotive Industry 2020, consultancy company Frost & Sullivan has assessed the impact of the pandemic on the automotive sector. Three scenarios are considered – gradual containment, severe pandemic and global emergency – resulting in outcomes ranging from steady recovery to recession. Under the severe pandemic scenario, the report says original equipment manufacturers (OEMs) will try to capitalise on China’s early recovery from the pandemic, while overall economic relief measures in the US, Germany, France, and the UK will provide a boost to the market in a postrecovery period. “Major Asian vehicle manufacturing countries such as China, Japan and South Korea –
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The top speed limit restriction has proved to be controversial since it was announced, with some observers questioning the right of car makers to impose such limitations through available technology. However, Ekholm says Volvo Cars believes it has an obligation to continue its tradition of being a pioneer in the discussion around the rights and responsibilities of car makers to take action that can ultimately save lives – even if this means los-
ing potential customers. “The problem with speeding is that, above certain velocities, in -car safety technology and smart infrastructure design are no longer enough to avoid severe injuries and fatalities in the event of an accident. “This is why speed limits are in place in most western countries, yet speeding remains ubiquitous and one of the most common reasons for fatalities in traffic. Every year, millions of people still get speeding tickets,” she says. Apart from speeding, intoxication and distraction are two other primary areas of concern for traffic safety, representing the remaining gap towards Volvo Cars’ vision of a future with zero traffic fatalities and serious injuries. Ekholm says the company is taking action to address those aspects of human behaviour.
Pointers to COVID-19 recovery which accounted for 40% of global vehicle production in 2019 – are on the recovery curve,” says Vignesh Ramesh, Frost & Sullivan's Automotive and Transportation Senior Research Analyst. He says two other manufacturing powerhouses, the US and Germany, are expected to resume production partially by mid-June. He adds that risk mitigation strategies – such as offering financial flexibility and support to the entire ecosystem, including to dealers, suppliers and customers – will help OEMs to revive. Ramesh adds: “The impact of the pandemic on the automotive sector will unlock new opportunities for other mobility verticals such as electric vehicles (EV), vehicle leasing and connectivity solutions.”
To tap into opportunities in the COVID-19 recovery era, Ramesh says OEMs and dealers should focus on digital retailing and empower customers on their online journeys. He adds that, with the rise of eCommerce, light commercial vehicle leasing and rental solutions are gaining traction. “With increasing epidemic outbreaks such as SARS, MERS, and COVID, OEMs can ramp up connectivity services, emphasising the need for health, wellness and wellbeing services within the vehicle,” he says. Ramesh maintains that contactless and touchless business concepts will leverage opportunities for the automotive aftermarket, helping on-demand service models to gain further momentum.
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eavily impacted by falling sales, Aston Martin Lagonda has announced that, from August 1, Daimler executive Tobias Moers will take over as CEO. He replaces Andy Palmer, who has agreed to leave the company. The announcement was made this month by Aston Martin’s Executive Chairman, Lawrence Stroll.
Mercedes-AMG chief to save Aston Martin?
According the company’s latest financial statements, the brand sold 578 vehicles in the first quarter of this year, down from the 1 057 units it achieved in the similar period in 2019 – a decline of 45%. The company’s loss before tax was listed at £118,9-million (about R2,5-trillion), compared with a deficit of £17,3-million (about R370,68million) suffered in quarter one last year. Observers said Aston Martin was struggling before the coronavirus crisis hit sales, its share price falling by 94% since the company’s flotation in 2018. In announcing Moers’ appointment, Stroll described the Daimler stalwart as a highly successful and experienced automotive professional. “He is currently Chairman of the Management Board and Chief Executive Officer of Mercedes-AMG GmbH, a position he has held since October 2013. He is also acting Chief Technical Officer. He has established a successful track record of implementing business transformation in a competitive environment.” Stroll noted that, under Moers’ leadership, Mercedes-AMG had more than doubled its product portfolio and had quadrupled the number of AMG units sold – with a clear pipeline established for further expansion opportunities, especially in electrification of powertrains in the performance segment. “Tobias’ focus on operating and manufacturing efficiency has delivered significant margin expansion. Strong financial performance has been supported by the introduction of a clear brand management strategy, which has delivered a measurable increase in brand value and awareness. “The Board of Aston Martin Lagonda has determined that now is the time for new leadership to deliver our plans. I am delighted to welcome Tobias to the company. He is an exceptionally talented automotive professional and a proven business leader.” Stroll added that, under Moers’ leadership, he expected Aston Martin’s longstanding and successful technical and commercial
Tobias Moers… looking to rescue struggling UK car maker, Aston Martin Lagonda
partnership with Daimler AG to continue. Through Mercedes-AMG, the companies have been involved in the development of powertrains for the British brand’s next generation of high performance models. The announcement that Moers would be joining Aston Martin appears to have taken Daimler’s executives by surprise. In a statement, the Chairman of the Daimler Board, Ola Källenius, named Philipp Schiemer, Head of Mercedes-Benz in Brazil, as the AMG chief’s successor, with Jochen Hermann serving as chief technical officer. “Tobias is to leave the company at his own request,” Källenius said. “He has led the AMG brand to great success and we would like to thank him warmly for all his achievements at Daimler. “We have mixed emotions about his departure. On the one hand we are losing a top executive, but at the same time we know that his expertise will be of great value to Aston Martin, a company with which we have a longstanding and successful partnership.” Källenius added that, in Schiemer and Hermann, Daimler would have two experienced executives leading AMG. “They will be able to take development forward, in-
Philipp Schiemer:
Jochen Hermann:
AMG’s new boss
Head of Technical
cluding ensuring that electrification plays a key part in our high performance brand’s future product portfolio,” he said. Since 1987, Schiemer has held various management positions at the Daimler Group in Germany and in Brazil. He has headed up product management for the AClass and has served as Head of Marketing at Mercedes-Benz Cars. Since 2013, he has been responsible for the business in Brazil as CEO of Mercedes-Benz do Brasil Ltda. Hermann was head of vehicle development at AMG from 2014 to 2016, before focusing on electric drive systems and battery research in his role as Head of e-Drive Continued on Page 12
Auto Report, May 2020 11
AMG chief to save Aston Martin?
Paying tribute to Palmer, Stroll thanked the outgoing CEO for his hard work, personal commitment and dedication, saying that, since 2014 when he had taken over the reins, Aston Martin had successfully renewed its core sports car range. He added that Palmer had brought the brand’s first SUV, the DBX, to a point of readiness for deliveries to start later this year, and praised the former Nissan executive’s involvement in the development of the Valkyrie hypercar, which had paved the way for a mid-engined range to come.
Andy Palmer’s legacy... Aston Martin’s hypercar, the mid-engined Valkyrie, undergoing tests last year at the Silverstone Grand Prix circuit in Britain
From Page 11 Development at Daimler AG. He has been with the company since 1997, initially working in departments involved in driver assistance systems and steering systems. Last year, Mercedes-AMG achieved its highest sales ever, accounting for more than 132 000 units – up from about 70 000 units in 2015. In contrast, Aston Martin sold just 5 862 vehicles – down 9% from 2018’s 6 441 units. In accepting his new job, Moers said he was excited to be joining Aston Martin Lagonda. “I have always had a passion for performance cars and relish the chance to work for
this iconic brand which I was close to on the technical side at the beginning of the partnership between the two companies. “Following the arrival of Lawrence, as Executive Chairman, the significant investment from his Yew Tree Consortium, the completion of the equity raise and the reset, I believe that there is a significant opportunity to harness the strengths of the business to successfully deliver the planned product expansion and brand elevation. “I am looking forward to working with Lawrence and the whole Aston Martin team to build a stronger business for our customers, our employees, our partners and our shareholders.”
“I would also like to recognise Andy’s leadership through the current challenges and uncertainties presented by COVID-19,” he said. In response, Palmer said: “It has been a privilege to serve Aston Martin Lagonda for almost six years. The launch of many new products, including the new DBX, demonstrates the dedication and capability of our employees. “I would like to thank my management team and all the staff for their hard work and support, particularly during the challenges presented by COVID-19. I am proud of you all and it’s been an honour to work with you.” Until Moers’ appointment becomes effective, Keith Stanton, Aston Martin’s Chief Manufacturing Operations Officer, will serve as interim COO.
SA to manufacture coronavirus ventilators
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low-cost, open-licence ventilator designed by British motorsport and technology company Provdrive in association with Cambridge University, will be built in South Africa by appliance manufacturer Defy and State-owned Denel with a view to saving the lives of people who have contracted COVID-19. According to a statement released by Prodive’s Chairman, David Richards, the Open Ventilator System Initiative (OVSI) unit has been designed using components from outside the medical supply chain, so that it can be brought to market quicker and more cheaply than the current range of commercially available ventilators. “In just five weeks, Prodrive has taken the original concept from Cambridge University’s Whittle Laboratory and turned it into a full working prototype ready for production,” the statement says. According to the OVSI – which comprises a consortium of academics, engineers, intensive care medics, civil society organisations and industry partners – the World
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Auto Report, May 2020
Health Organisation (WHO) has suggested there could be as many as 10-million cases of COVID-19 in Africa within three to six months – yet there are fewer than 2 000 working ventilators across the continent’s 41 countries, with 10 having none at all. “Fulfilling the unique requirements of local clinicians was key to this project,” says Cambridge University’s Prof Axel Zeitler, who led the OVSI team that developed the ventilator. “Clinicians told us the unit needed to cover the wide spectrum of patient ventilation requirements, and therefore had to work in three modes – non-invasive, mandatory or patient-triggered ventilation.” Since early April, 20 Prodrive engineers have been working on the project at the company’s headquarters in Banbury in England. The team took the Whittle Laboratory’s initial concept and began evolving the design into parts that could be manufactured from medically appropriate materials in the high production volumes that would be required. “Prodrive also designed the electronic
and electrical system architecture and wrote completely new software to control the unit with input from clinicians to ensure ease of use in an intensive care environment,” the statement says. The first full working prototype was manufactured and assembled at Prodrive’s headquarters, and, using a calibrated artificial lung, a comprehensive test programme was run against the UK government’s Rapidly Manufactured Ventilator System specification. “The OVSI team is readying the concept design for volume manufacture, which will be led by two South African companies – Defy and Denel,” Richards says. He adds: “I am particularly proud of how our team, which had no previous medical experience, gave their time freely and brought this project to fruition in record time. “It’s a true vindication of our strategy of applying a motorsport culture to complex technical challenges that require an innovative approach.”
Ford revives the Thunder F
ord has revived its Ranger Thunder badge with a Made in South Africa double-cab bakkie due to be released shortly in Europe. Sale of the variant in the domestic market is still to be confirmed, according to a spokesman for Ford Southern Africa. Based on the popular Wildtrak variant and produced on Ford’s T6 platform at the company’s plant in Silverton, Pretoria, the new model features updated styling and enhanced specification levels, but no significant mechanical changes. A total of 1 400 right-hand-drive units out of a production run of 4 500 vehicles are said to have been earmarked for sale in the UK (1 380) and Ireland (20), with orders for the model in those regions already being filled. “With an edgier look for customers who aren’t afraid to be noticed, the Thunder has an unmistakable presence,” says Hans Schep, General Manager for Commercial Vehicles at Ford of Europe.
and the Ranger logo finished in matt black,” he adds. The vehicle rides on exclusive, 18-inch, black alloy wheels, with a corresponding Ebony Black finish for the grille, rear bumper, skid plates, fog light surrounds, sports hoop and door handles. Headlights are of the LED variety and feature darkened bezels, with similar treatment applied to the taillight housings. A powder-coated, black topped roller shutter with a divider for the bed liner is available as an optional extra. Inside, the model is equipped with full leather upholstery which bears distinctive, red-embroidered Thunder badges. Matching stitching graces the steering wheel, seats, instrument panel and key touch points throughout the cabin. Black floor mats are also standard and contrast with red-illuminated sill plates.
According to Schep, the Thunder’s transmission – like that of the Wildtrak – is equipped with a wide spread of ratios and real-time adaptive shiftscheduling that adapts to changing road conditions, enabling the selection of optimal gears for performance, fuel efficiency or refinement. From the outside, one of the Thunder’s most notable features is its three-dimensional grille, which differs from that used for South African-specification variants. Schep says the Ranger had its best-ever year in Europe in 2019, with 52 500 units sold – more than 16 000 of those in the UK. He expects total sales of the model – which was launched in Britain in 1998 – to surpass the 150 000 mark this year. “This is third generation of the Ranger Thunder,” he says. “The first made its debut in 2003 and the second in 2009.”
He describes the vehicle as capable, comfortable and stylish, adding: “It is as tough and versatile as it is charismatic, with plenty of popular practical options as standard features.” Powered by Ford’s 2,0-litre, bi-turbo EcoBlue diesel engine which produces 157kW and 500Nm, the model features a 4x4 drivetrain and 10-speed automatic transmission. Schep says the vehicle has been optimised for load-hauling as well as for tough all-terrain work. “The Thunder is offered in a single specification, finished in Sea Grey with bold red highlights on the grille and rear sports hoop, complemented by three-dimensionaleffect graphics on front doors and tailgate,
Auto Report, May 2020 13
Mercedes unveils new-look E-Class coupé and cabriolet
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ercedes-Benz has revealed facelifted versions of its E-Class coupé and convertible. The refreshed models feature exterior styling upgrades, including redesigned grilles, reshaped LED headlamp assemblies and revised taillight clusters with new-look lenses. Inside, the models adopt characteristics similar to those recently brought to their four-door siblings – reconfigured steering wheels with sensor technology that emulates that found in smart phones. Also, they incorporate latest versions of Mercedes-Benz’s MBUX user interface, which comprises two 10,25-inch displays within a single instrument panel – one for the infotainment system and the other for vehicle information – which offer touch, gesture or speech control. As an option, buyers can stipulate larger, 12,3-inch screens.
In the fast lane… Mercedes-Benz’s newly face-lifted E53 AMG Coupé
In an extension of Mercedes-Benz’s drivetrain electrification programme, some petrol-fuelled models – among them the E200, E200 4Matic, E300 and E450 4Matic – receive 48-volt EQ Boost mild-hybrid systems in combination with upgraded, nine-speed, torque-converterequipped automatic gearboxes.
High-performance variants developed by AMG wear E53 4Matic nomenclatures and are equipped with turbocharged 3,0-litre engines similar to those used in the E450 4Matic models, but in a higher state of tune.
Heading each of the line-ups are E450 4Matic variants which are powered by turbocharged, 3,0-litre, in-line, six-cylinder engines coupled with gearbox-mounted electric motors. While the combustion engines deliver 270kW and 500Nm of torque, the electric motors contribute an additional 15kW and 250Nm. The brand claims a zero to 100km/h time
of 5,0 seconds for the E450 4Matic coupé and 5,1 seconds for the E450 4Matic cabriolet. Both cars are limited to top speeds of 250km/h.
The units produce 320kW and 521Nm and, equally, are supported by gearbox-mounted electric motors that deliver an additional 16kW and 249Nm. AMG claims 0 to 100km/h times of 4,4 seconds for the coupé and 4,6 seconds for the convertible. Among other powertrain developments is a new, four-cylinder diesel engine with mildhybrid properties which will drive upcoming E300d variants.
Known as the OM654 M, the unit features a longer stroke than the OM654 plant it replaces, upping capacity from 1 950cc to 1 993cc. Additionally, it is equipped with two, water-cooled, variable-vane turbochargers and a new common-rail injection system that operates at pressures up to 2 700 bar – 200 bar more than the predecessor. Mercedes-Benz claims the OM654 M is the most powerful four-cylinder diesel engine to be used in a production car. Full details are yet to be revealed, though information released by the company indicates a peak power figure of 195kW for the combustion engine and 15kW from the electric motor. Additionally, the engine features a closed NOx storage catalytic converter, a diesel particulate filter and selective catalytic reduction which utilises urea injection to neutralise emissions.
S-Class still on track – Källenius
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ountering increasing speculation that introduction of the redesigned Mercedes-Benz S-Class has been delayed by the COVID-19 pandemic, Daimler’s CEO, Ola Källenius, says the model will be unveiled as planned later this year.
In an interview this month to mark the inauguration of the Meet Mercedes Digital internet platform, Källenius reaffirmed that the brand’s flagship model was on track and was scheduled to make its debut in the second half of the year. “We’re excited. This will be a rare occurrence and a special moment for us. The S-Class will be a technological tour de force. Our brightest minds and most creative people are on it, providing a pointer to future technologies. “I drove a pre-production model and it’s amazing. We drove it around, even at high speed on the autobahn – it has a very serene and quiet ride. The predeces14
Auto Report, May 2020
sor set the bar high – but the new S-Class will be special,” he promised. According to reports, assembly of the initial line-up of the seventh-generation models is due to start in September at a new Mercedes-Benz facility, Factory 56, in Sindelfingen, Germany. Once the production line is running smoothly, assembly is scheduled to start on an all-electric derivative, the EQS, which will join the line-up early next year. According to Källenius, Factory 56 is the brand’s most modern, CO2 neutral, high-tech plant, focused on high-quality production. A teaser image of an S-Class preproduction unit – which was released on the Meet Mercedes Digital site and which is reproduced here – shows the nose of the car sporting an updated version of Mercedes-Benz’s prominent chrome grille. Angular headlights with three projector beams reflect the styling
that’s echoed by the latest E-Class models (see story above). Powertrain options for S-Class variants are expected to include a turbocharged 3,0-litre, in-line, six-cylinder engine and a twin-turbo 4,0-litre V8, as well as 3,0litre diesel in select markets. All are likely to be supplemented by 48 -volt mild-hybrid systems. Also, a plug-in hybrid version is forecast. The car will ride on an updated version of Mercedes’ modular rear-wheel-drive architecture, with 4Matic all-wheel drive an option. The models will replace the outgoing sixth-generation S-Class, which was introduced with much fanfare in South Africa in 2014.
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suzu Motors South Africa (IMSA) has restyled its seven-seat SUV, the mu-X. Exterior enhancements are complemented by upmarket finishes in the cabin, while the safety package has also been upgraded with the addition of a Brake Override System which helps to reduce stopping distances in an emergency. “The launch of the mu-X in 2018 revived Isuzu’s proud legacy in the SUV segment. The updated model for 2020 brings fresh design updates and improved safety to this versatile seven-seater,” says Dominic Rimmer, Head of Technical Services at IMSA. Visually, the front of the vehicle features a bold radiator grille design, complemented by a restyled front bumper that incorporates a colour-coded upper section and a gloss black finished lower portion. Auto-levelling bi-LED projector-styled headlights feature distinctive daytime running lights, while 18-inch gloss black diamond-cut alloy wheels and side steps finished in gloss black add sporty flair. The rear of the mu-X echoes the front-end changes, the bumper sporting similarly colour-coded upper and lower sections and revised taillight housings highlighted by chrome and gloss black trim. Roof rails are two-tone silver and black. Inside, piano black finishes have been adopted for the door switch bezels and trim panels, the gear shift surround as well as for the infotainment system’s centre stack. Additionally, switchgear located on the leather-trimmed steering wheel features silver garnish, while ambient lighting has been introduced in door trims.
Isuzu upgrades its seven-seat mu-X says. Leather trim is standard for the seats, with the driver’s pew offering six-way electric adjustment. A multi-function infotainment unit is standard on the mu-X. The system boasts an eight-inch colour touchscreen that provides Bluetooth connectivity and audio streaming, as well as Apple CarPlay and Android Auto functionality. A nine-inch colour touchscreen is available as an option, offering additional features including a satellite navigation system. USB slots are provided front and rear, together with an auxiliary iPod input and HDMI port.
In a statement, Isuzu says the mu-X – which is available with 4x2 or 4x4 drivetrains – has been designed to appeal to families and adventure-seekers alike thanks to the flexible folding centre and rear rows of seats, which allow up to seven passengers to be carried in comfort.
Additional standard convenience features include central locking, keyless entry and start, and touch sensor opening and pushbutton locking functions on door handles. As expected of a leisure-oriented SUV, a multitude of storage compartments are strategically located throughout the cabin, including dual glove boxes, an upper dash storage binnacle and cup-holders for all three rows of seats.
“The vehicle’s electronic climate control system caters for both front and rear occupants – the latter having access to their own cooling vents, ensuring high levels of comfort for any distance trips,” the statement
A rear-facing camera is linked to the infotainment display to help when parking or reversing, with audio-linked sensors providing additional assistance. Vehicle security is taken care of by a factory-fitted im-
mobiliser and alarm system. The new Brake Override System – adopted from the D-MAX bakkie – is linked to the vehicle’s ABS system and is designed to reduce the vehicle’s stopping distance during emergency braking by automatically overriding accelerator inputs. The feature complements an already extensive range of active safety features including electronic brakeforce distribution and emergency brake assist, along with electronic stability control, traction control, hill start assist and hill descent control, which can be engaged in low-range 4x4 mode. Passive safety equipment comprises dual front, side and full-length curtain airbags, linked to front seat pre-tensioner seatbelts, plus a high tensile steel passenger safety cell that is said to offer outstanding strength and rigidity. The mu-X is powered by Isuzu’s 3,0-litre, four-cylinder turbocharged diesel engine that produces 130kW and 380Nm. The unit, which is regarded as exceptionally reliable, is mated with six-speed automatic transmission that incorporates a sequential sport mode. “A three-ton towing capacity makes the mu -X a great choice for pulling trailers and boats, in keeping with its adventurous, lifestyle-oriented customer profile,” the statement says. Buyers have access to a wide range of accessories, including functional items such as a mechanical diff-lock for 4x4 and 4x2 derivatives, a storage box fixed beneath the luggage compartment, a tow bar, bonnet guard and weather guards for windows, a front spoiler set and a rear bumper scuff plate. mu-X PRICING 4x2 6AT 4x4 6AT
R 630 400 R 698 200
Auto Report, May 2020 15
New era of ‘Nissan-ness’
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revenue per unit to achieve profitability.”
The four-year plan, involving cost rationalisation and business optimisation, shifts the company’s focus from what its CEO, Makoto Uchida, terms “inflated expansion” – the path he perceives it to have followed under former boss Carlos Ghosn.
He maintains that the revised strategy aligns with the restoration of a culture defined by what he calls “a new era of Nissan-ness” which focuses on building on the company’s reputation for innovation, craftsmanship, customer-focus and quality.
In a statement, Uchida says decisive action will be taken to transform the business by introducing structural reforms and streamlining unprofitable operations and surplus facilities. He says the strategy aims at reducing fixed costs by rationalising production capacity, the global product range as well as expenses.
Rationalisation, Uchida says, involves right sizing Nissan’s production capacity by 20% to 5,4-million units a year and achieving a plant utilisation rate above 80%. In the process, he says the global product lineup will be cut from 69 to fewer than 55 models and the company’s plants in Barcelona, Spain, and Indonesia will be closed.
“Through disciplined management, the company will prioritise and invest in business areas expected to deliver a solid recovery and sustainable growth,” he says, adding that by implementing the plan, he hopes to achieve a 5% operating profit margin and a sustainable global market share of 6% by the end of 2023’s fiscal, including proportionate contributions from Nissan’s 50% equity joint-venture in China.
Additionally, production in North America will be confined to core models while the company’s plant in Thailand will become the single production base in the ASEAN region.
Uchida says the strategic aim is to ensure steady growth instead of excessive sales expansion. “We will now concentrate on our core competencies, enhancing the quality of our business while maintaining financial discipline and focusing on nett
Since much of the focus will be on core markets and core products in Japan, China and North America, he says the company will exit South Korea and divest its Datsun business in Russia. It will also streamline its operations in some markets in the
apan’s Nissan Motor Company has revealed details of a strategy aimed at achieving sustainable growth, financial stability and profitability by the end of the 2023 fiscal.
Alliance partners Renault and Mitsubishi, says Uchida, will share resources, including production, models and technologies, leveraging assets to maintain Nissan’s business at appropriate operational levels in South America, the ASEAN region and Europe.
Makoto Uchida, Nissan’s CEO, (centre) at a media conference called to announce the company’s revised business strategy
ASEAN region. Electric vehicles, sports cars and global core model segments – including enhanced C and D segment vehicles – as well as the introduction of 12 new models in the next 18 months form a pivotal part of the strategy. Uchida says that by expanding Nissan’s presence in the EV market, he expects to achieve more than a million sales a year by end the 2023 fiscal. His plan for Japan includes the launch of two more electrically-powered vehicles and four more ePOWER units, increasing the electrification ratio to 60% of sales. Within the same period, he intends to introduce Nissan’s ProPILOT advanced driver assistance systems to more than 20 models in 20 markets, equipping more than 1,5 million vehicles with the technology. “Nissan must deliver value for customers around the world. To do this, we must make breakthroughs in the products, technologies and markets where we are competitive. This is Nissan’s DNA,” he says.
AUTO REPORT: LOCAL COVERAGE, GLOBAL PERSPECTIVE
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Auto Report, May 2020