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Ford to create separate business units for EVs and for combustion vehicles

For the auto industry, this decade is one which will require a major decision to be made on the type of vehicles to produce in future. It is clear that, besides going back to horse carriages, electrification of motorcars is the quickest solution to addressing one of the contributors to climate change. While there are ongoing debates about the actual benefits of electric vehicles (EVs) from a total perspective (including generating the lectricity), it cannot be denied that EVs generate no emissions and that can make a difference to air quality.

The industry has already begun its path to electrification and many have announced targets that will see 100% or almost 100% of the vehicles they produce and sell being fully electric by the end of this decade. But can this full-scale transformation take place globally? Can every country on the planet do away with combustion-engined vehicles and use only electrically-powered ones?

This is something the carmakers are grappling with and as Toyota has said, they do not want to leave any customer behind [by offering only EVs). Other carmakers have also said that they will introduce EVs in markets where conditions are acceptable and offer other solutions for those which cannot afford EVs in the immediate future. This can mean offering hybrid electric vehicles (HEVs) which are a bit less costly or try to cleanse the emissions of the combustion engine as much as possible.

Ford’s approach
Ford has announced its approach which will be to cover both the EV segment and the ‘old’ segment where combustion-engined vehicles will still be in demand. It will have two business units in its company as part of the Ford+ plan introduced last May. There will be two distinct, but strategically interdependent, businesses – Ford Blue and Ford Model e – the former focussing on products with combustion engines and the latter to be fully focussed on EVs and have the agility of a start-up.

Driving the change was recognition that different approaches, talents and, ultimately, organizations are required to develop and deliver of electric and digitally connected vehicles and services, while also fully capitalize on the company’s iconic family of internal combustion engine (ICE) vehicles.

Ford has over 100 years of experience in manufacturing motor vehicles and it will draw on this vast experience to continue making conventional combustion engine vehicles as well as the new generation of EVs.

“This isn’t the first time Ford has reimagined the future and taken our own path,” said Ford Executive Chairman, Bill Ford. “We have an extraordinary opportunity to lead this thrilling new era of connected and electric vehicles, give our customers the very best of Ford, and help make a real difference for the health of the planet.”

Dedicated EV division in China
The creation of Ford Model e was encouraged by the success of small, mission-driven Ford teams that developed the Ford GT, Mustang Mach-E SUV and F-150 Lightning pickup as well as Ford’s dedicated EV division in China.

“Ford Model e will be Ford’s centre of innovation and growth, a team of the world’s best software, electrical and automotive talent turned loose to create truly incredible electric vehicles and digital experiences for new generations of Ford customers,” explained Ford President & CEO, Jim Farley.

Continuing with iconic models
“Ford Blue’s mission is to deliver a more profitable and vibrant ICE business, strengthen our successful and iconic vehicle families and earn greater loyalty by delivering incredible service and experiences. It’s about harnessing a century of hardware mastery to help build the future. This team will be hellbent on delivering leading quality, attacking waste in every corner of the business, maximizing cashflow and optimizing our industrial footprint,” he said, adding that the company will continue to invest in combustion engines.

*Ford’s President stressed that company will continue to invest in internal combustion engines and offer them in some models under the Ford Blue brand.*

Ford Model e and Ford Blue will be run as distinct businesses, but also support each other – as well as Ford Pro, which is dedicated to delivering a one-stop shop for commercial and government customers with a range of conventional and electric vehicles and a full suite of software, charging, financing, services and support.

Making ownership experiences better
Back in the ‘dotcom era’ over 20 years ago, Ford was an early promoter of online media for its business. In this decade, Ford Model e also will lead on creating a new shopping, buying and ownership experience for its future EV customers that includes simple, intuitive e-commerce platforms, transparent pricing and personalized customer support from Ford ambassadors. Ford Blue will adapt these best practices to enhance the experience of its ICE customers and deliver new levels of customer connectivity and satisfaction.

The carmaker expects to spend US$5 billion on EVs this year, a two-fold increase over 2021. By 2026, Ford aims to produce more than 2 million EVs annually, which will represent about one-third of the company’s global volume. This is expected to rise to half by 2030, capturing with EVs the same, or even greater, market shares in vehicle segments where Ford already leads.

“This new structure will enhance our capacity to generate industry-leading growth, profitability and liquidity in this new era of transportation,” said John Lawler, Ford’s Chief Financial Officer. “It will sharpen our effectiveness in allocating capital to both the ICE and EV businesses and the returns we expect from them – by making the most of existing capabilities, adding new skills wherever they’re needed, simplifying processes and lowering costs. Most importantly, we believe it will deliver growth and significant value for our stakeholders.”

Ford spends another US$900 million in Thailand to upgrade two factories

Alfa Romeo F1 Team ORLEN unveils C42 racing car with new drivers for 2022

Alfa Romeo is one of the older names in Formula 1, having been in Grand Prix races even before the championship began in 1950. Unlike Ferrari, its presence has not been constant although whenever it has been present, it has been enthusiastically supported by fans. Its longest presence as a team was in the 1980s when it participated for 6 years and ceased after the 1950 season. Then in 2019, the name returned when Sauber was rebranded as Alfa Romeo marking the factory’s return to the sport as a constructor. They contracted Kimi Raikkonen and Antonio Giovinazzi as drivers until 2021.

In 2022, they will have 10-times race winner, Valtteri Bottas, coming from the successful Mercedes-AMG PETRONAS team as well as GuanYu Zhou, the first F1 driver from China and the only rookie on the grid this year. Robert Kubica will be the reserve driver for the team.

*The drivers for 2022 will be Valtteri Bottas (centre) and newcomer Zhou Guanyu (left), with Robert Kubica as reserve driver (right).*

The team has maintained the Sauber convention for its racing car designations, starting with C38 in 2019 car so for 2022, three years later, the new car is designated the C42. The official team name will be the same as before – Alfa Romeo F1 Team ORLEN – with the title sponsor again being the Polish petroleum company.

The C42 has eye-catching livery, a stunning yet subtle nod to the past, recalling historical designs of years past and the heritage of Alfa Romeo and Sauber Motorsport. It is the 30^th year of F1 for the Sauber Motorsport team which is based in Hinwil, Switzerland.

Created by the Centro Stile Alfa Romeo, the new livery gives the car a powerful, recognisable identity. The paintwork is a perfect blend of the two dominant colours, red and white. The engine area is painted red, with a diagonal cross-section that conveys the dynamism of the car’s body. The historic Alfa Romeo lettering fits into the diagonal as a reference to the early 20th century, having made its debut on the brand’s racing cars in the 1920s.

‘Tonale’ can be seen below, the name of a new SUV model that has recently been unveiled. The Quadrifoglio symbol of sportiness can be found in the upper section, alongside the diagonal dividing line between red and white. The Italian flag is included on the back of the spoiler, proudly featuring the wording ‘Alfa Romeo’.

As with all the other F1 cars for 2022, the C42 has been developed and built under the budget cap regulations and for the new era of F1 which sees significantly new technical regulations. These regulations, which cover aerodynamic aspects, have required the design to be a radical departure from the past.

It embraces the possibilities dictated by the new ground-effect floor, updated aerodynamic package and larger 18-inch, low profile tyres. The C42 is powered by a new and improved Ferrari engine, and has been designed for the closer racing and competitive fighting which the new regulations are expected to create.

“The 2022 championship promises to be the most compelling one in recent years. The new regulations, the new driver line-up and a brand-new car represent a veritable revolution for F1 and especially for the team. At Alfa Romeo, we are intent on grasping all the opportunities that will arise. Also for Alfa Romeo, 2022 represents a year of ‘metamorfosi’. With Tonale, the brand looks ahead into the era of electrification and connectivity, remaining true to its DNA of noble Italian sportsmanship dating back to 1910. That’s why we were clear about putting the ‘Tonale’ name on the single-seater. We can’t wait to see the red light go out to kick off an exciting F1 championship,” said Jean Philippe Imparato, CEO of Alfa Romeo.

Guanyu Zhou – first Chinese driver in F1, to race with Alfa Romeo Racing ORLEN team in 2022

Kia’s roadmap through the rest of the decade, with ambitious targets for EV production and sales by 2030

Like all carmakers, Kia Corporation has formulated strategic plans for the rest of this decade, not just with respect to electrification but also for the bigger picture of mobility. The company aims to be more than just a car manufacturer and be a Sustainable Mobility Solutions Provider. To achieve this vision, its roadmap builds on the successful ‘Plan S’ strategy first announced in 2020. This corporate vision is supported by three key pillars – people, planet and profit.

The company has set 4 key business targets to reach by 2030. These core business aims are: accelerating electrification and achieving annual sales of 1.2 million battery electric vehicles (BEVs) by the end of the decade; reaching 4 million annual vehicle sales by 2030s; expanding the application of connected car features and autonomous driving technologies to all new vehicles; and of course, become the No. 1 brand in the global purpose-built vehicle (PBV) market.

During a recent CEO Investor Day event, Ho Sung Song, President & CEO of Kia Corporation, said: “Kia has been undergoing a full-scale transformation which has included changes in corporate vision, logo, product and design, and strategy. To achieve the company’s vision of becoming a Sustainable Mobility Solutions Provider, we will focus on accelerating the transition to future business models. We will become even more customer-centric in our approach and pursue a dynamic transformation while maintaining sound business operations.”

During the 2 years since first revealing its Plan S strategy, Kia has recorded its highest ever gross revenue and operating profit (in 2021). It aims to continue this positive momentum to create further value in both qualitative and quantitative aspects from 2022 onwards.

How to reach 4 million units?
Starting with an annual global sales goal of 3.15 million units in 2022, Kia will progressively increase annual volumes to 4 million units, which will be a 27% increase from its target for 2022. As part of this quantitative growth, the company will also expand sales of eco-friendly vehicles such as BEVs, plug-in hybrid electric vehicles (PHEVs) and hybrid electric vehicles (HEVs). In coming years, the proportion of eco-friendly cars will go from 17% of global sales in 2022 to 52 per cent in 2030.

2021 Kia EV6 — *The EV6, launched last year and voted 2022 European Car of the Year, is just the beginning of Kia’s EV offensive.*

The increase in proportion will be more evident in major markets with strong environmental regulations and a growing demand for EVs. These are markets such as Korea, North America, Europe and China, and the proportion will go up to 78% by 2030.

14 BEV models by 2027
Kia aims to solidify its position as the world’s leading EV maker and to achieve this, it will expand its BEV product line-up. The present line-up is limited but from next year, there will be at least 2 BEVs per year, with a full line-up of 14 BEVs by 2027. Compared to its previous plan to release 11 models by 2026, Kia will also add 2 electric pick-up trucks – a dedicated electric pickup truck and a strategic model for emerging markets – and an entry-level BEV model.

Its EV range will be topped by a flagship model, the EV9, set for launch in 2023. Although the EV9 will be a large SUV with a total length of around 5 metres, it will have a claimed acceleration of 0 – 100 km/h of 5 seconds, and range of approximately 540 kms. Advanced technologies will allow for 100 kms of driving range on just a 6-minute charge.

A first for Kia, the EV9 will also feature OTA (Over the Air) and FoD (Feature on Demand) services that will allow customers to selectively purchase software functions. In addition, it will be the first model to be equipped with Kia’s advanced AutoMode autonomous driving technology.

*Prototype of the EV9 which will be the flagship of Kia’s EV range when it is launched next year.*

1.2 million BEV sales in 2030
New models like the EV9 will help Kia increase sales of its BEVs from the 160,000 units planned for this year to 807,000 units in 2026, and 1.2 million in 2030. That’s a 36% increase from the 2030 EV target announced during last year’s CEO Investor Day, indicating that the company is going to take a more aggressive approach. Kia projects that over 80% of its BEV sales in 2030 will come from Korea, North America, Europe and China, and a 45 per cent share of total Kia sales will come from these major markets.

To meet the demands of the expanding volume of EVs each year, the roles of individual production sites will evolve. Korea will serve as a global hub for R&D, production and supply of EVs, while other global production sites will produce strategic EVs for each market.

In Europe, for example, small and medium-sized EVs will be produced starting from 2025. In the USA, where mid-sized SUVs and pick-ups are popular, electric versions of these models will be produced locally from 2024. In China, Kia plans to introduce mid-size EV models from next year, and for India, there will be entry and mid-size EV models from 2025 produced there.

*Kia EVs will use the Hyundai Group E-GMP specially developed for Battery Electric Vehicles.*

Batteries are a crucial item for BEVs as they supply energy to power the motors so Kia is planning to upgrade its battery technology, and establish a battery supply and demand strategy. While establishing a stable battery supply and demand system by outsourcing to global battery companies, Kia also plans to get batteries from the Indonesian battery cell joint venture. As crucial a factor as supply will also be cost, and Kia is working towards reducing system costs by 40%t, thereby enhancing price competitiveness.

Autonomous driving technology
Autonomous vehicles will come in future and Kia is actively developing the technologies which will be branded ‘AutoMode’. This will include a Highway Driving Pilot feature which would enable driving without driver intervention on highway sections. It will make its first appearance in the EV9 next year, and by 2026, all new models launched in major markets will be available with AutoMode. The adoption rate is expected to surpass 80% and in the long term, the company plans to further upgrade AutoMode technology and implement fully autonomous driving technology.

Kia Malaysia reveals 5-year plan with 61% of local production to be exported

Honda and Sony to form new company to develop and sell EVs from 2025

Since being established 73 years ago, Honda Motor has been able to remain independent instead of becoming part of a bigger group. On its own, it has been able to successfully manage its business and endure even the most challenging periods without having to surrender its independence. However, the 21^st century sees the auto industry changing and with the move towards electric vehicles (EVs), the cost of developing entirely new technologies is very high. In April, Honda became the first Japanese automaker to declare its intention will stop selling combustion-engines vehicles by 2040.

So even though Honda has preferred to be a ‘lone ranger’, it has been forming strategic alliances with some companies in the area of EVs because it is crucial to remain competitive in the new field, and sharing resources is more realistic. Honda has already agreed with General Motors to jointly develop two all-new EVs for Honda’s range, based on GM’s global EV platform. The EVs will be manufactured at GM plants in North America with sales expected to begin in 2024 for that market.

New joint-venture company
On another front, Honda will be working with Sony Group Corporation to develop EVs as well. The two companies have signed a Memorandum of Understanding (MoU) that outlines their intent to form a joint venture company through which they plan to engage in the joint development and sales of high value-added battery electric vehicles (BEVs) and commercialize them in conjunction with providing mobility services. The new company is expected to be established before the end of this year.

*The Honda e, a fully electric EV model, is already on sale in Europe.*

This alliance aims to bring together Honda’s mobility development capabilities, vehicle body manufacturing technology and aftersales service management experience, while Sony has expertise in the development and application of imaging, sensing, telecommunication, network, and entertainment technologies.

Sony has already developed EVs
Honda has already developed a few EV models for sale, with the Honda e having received a good response in Europe. Sony has also been developing its own EVs, with two prototypes displayed earlier this year at CES 2022 in Las Vegas. The prototypes appear to have reached quite an advanced stage and have been shown in real-world road-testing.

*Sony’s two EVs which were shown at CES 2022 earlier this year.*

While Sony announced in January that it would start a new unit called Sony Mobility which would handle commercialization of EVs, this move may well have been too challenging for the company which does not have experience in making cars. Honda, on the other hand, has been producing many fine cars with its decades of experience. As Sony would have vast experience in electronics, which are dominant in EVs, its expertise will be very useful.

So it remains to be seen whether Honda will adopt Sony’s concepts – called VISION-S – or come out with a new design. If they want to do a new design, they have less than 3 years to do so as the plan is to start sales of the first model from the new company in 2025.

A new brand name?
There is also a possibility that the new EVs will have separate branding rather than be sold as Honda or Sony products. This is because the agreement is for the new company ‘to plan, design, develop, and sell the EVs’. It is agreed that Honda will be responsible for manufacturing the first EV model at its own factory.

*Honda has had many decades of experience manufacturing cars. not only in Japan but also in other countries.*

“The New Company will aim to stand at the forefront of innovation, evolution, and expansion of mobility around the world, by taking a broad and ambitious approach to creating value that exceeds the expectations and imagination of customers. We will do so by leveraging Honda’s cutting-edge technology and know-how in relation to the environment and safety, while aligning the technological assets of both companies. Although Sony and Honda are companies that share many historical and cultural similarities, our areas of technological expertise are very different. Therefore, I believe this alliance which brings together the strengths of our two companies offers great possibilities for the future of mobility,” said Toshihiro Mibe, Director, President, Representative Executive Officer & CEO of Honda Motor.

Russian F1 GP cancelled permanently; FIA also announces decisions preventing Russians from taking part in motorsports

The actions of Russia in the conflict in Ukraine have been condemned by much of the world community and where, in the past, military actions by other countries would have been initiated – making the conflict even worse – the approach today is to use other non-military means to ‘persuade’ Russia to stop. Economic sanctions are one powerful approach which has had an effect on Russia and various organisations have also taken actions to alienate the country.

The motorsports community has also taken a stand, which started with many of the drivers in Formula 1 expressing an unwillingness to take part in the Russian Grand Prix scheduled as Round 17 in September. The Formula 1 organisation has gone further and terminated the contract with the organisers of the Russian Grand Prix – and not just for this year. The official position is that there will no longer be a F1 event held in Russia although that can well change in future.

The Russian Grand Prix was first run in 2014 and held for 8 years until 2021. The races have been run on a street circuit in Sochi, the host city of the 2014 Winter Olympics. The Mercedes-AMG team has won every year, with Lewis Hamilton winning 5 times, Valtteri Bottas twice and Nico Rosberg once.

Will there be a replacement?
The slot for the cancelled Russian Grand Prix could either be left empty, which means a 2-week gap betwee the Italian GP in Monza and the Singapore Grand Prix. If the organisers must have their 23 rounds, then they would either look for another venue in Europe or even consider one in Asia. Vietnam was preparing for its first-ever F1 race but the COVID-19 pandemic prevented it and it may well try again to be a host. And don’t forget Malaysia also has a F1-ready track…

FIA’s decisions
The FIA – the governing body of international motorsport – has also announced a number of decisions made in relation to the Ukraine conflict. In accordance with the International Olympic Committee recommendations, motorsport events will not be allowed (until further notice) to take place in Russia and Belarus, and no flag/symbol or anthem of Russia/Belarus is to be used in international/zone competitions.

Drivers, competitors and officials are also affected by the same decisions as no Russian/Belarusian national teams can participate in international/zone competitions (eg FIA Motorsport Games). However, Russian/Belarusian drivers, individual competitors and officials are still allowed to participate in international/zone competitions only in their neutral capacity and under the ‘FIA flag’, subject to specific commitment and adherence to the FIA’s principles of peace and political neutrality. The FIA also forbids any display of Russian/Belarusian national symbols, colours, flags (uniform, equipment and car) or the playing of associated anthems at events.

Additionally, representatives from Russian/Belarusian FIA Members are to step aside temporarily from their roles and responsibilities of elected officers/commissions’ members. No FIA grant will be awarded to the Russian/Belarusian FIA Members, and no existing FIA grant funding will be paid to them as well.

“I want to thank the Council members for their prompt action in deciding these measures in the interests of sport and peace. We stand in solidarity with Leonid Kostyuchenko, the President of the Federation Automobile d’Ukraine (FAU) and the wider FIA family in the country. The measures taken today recognise the authority of the FAU in Ukraine and are also aligned with the recommendations recently made by the International Olympic Committee. We are in active discussions with our members as we continue to extend our compassion and support in their time of need. We sincerely hope for a peaceful resolution to their intolerable hardship,” said the new FIA President, Mohammed Ben Sulayem, after chairing an extraordinary meeting of the World Motor Sport Council.

URAKALI and Nikita Mazepin
Among the current teams taking part in Formula 1, there is one Russian driver and one major sponsor – Nikita Mazepin and Urakali, which is a major sponsor of his American-owned team, Haas F1. Understanding the sensitivity of association with anything Russian, Haas removed Urakali’s name from its racing cars before the final day of testing in Spain. Incidentally, Urakali, a fertilizer company in Russia, is owned by Mazepin’s father.

*The URAKALI name disappeared (below) from the Haas F1 racing car on the final day of testing in Spain. URAKALI is a Russian fertilizer company owned by Nikita Mazepin’s father.*

*Nikita Mazein, 23, may not get a chance to continue racing in F1 after having started last year.*

Mazepin’s future with the team has also been uncertain. There are rumours that the 23-year old driver who began driving in F1 last year will likely be dropped by the team although the FIA has stated that it is possible for him to race as a ‘neutral’ party. If he is removed, his place alongside Mick Schumacher could be taken by Pietro Fittipaldi, the team’s reserve driver.

A chance to become a ‘millionaire’ when purchasing a new Nissan vehicle in March

This March, purchasers of new Nissan vehicles from an authorized Nissan showroom can become millionaires… BoostStar millionaires. For a new campaign, ‘March Deal Boosters’, by Edaran Tan Chong Motor (ETCM), up to 20 million Boost Stars are to be given out during the campaign period from March 1 to 31, 2022.

The Boost Stars, normally accumulated through transactions using the Boost app, can be redeemed for many different rewards from the BoostUP catalogue so customers have a wider choice of rewards to choose from.

Applicable to all new Nissan models
All new Nissan models will qualify customers for the BoostStars, including the Almera 1.0L Turbo, Navara 2.5L Turbo 4WD, X-Trail and Serena S-Hybrid. Additionally, free accessories packages and free maintenance service are also offered for even better value for money. And apart from the pick-up truck models, exemption of sales tax is available so there are additional savings.

RM30 voucher for test-drive
Also during the month of March 2022, visitors to Nissan showrooms who test-drive the latest Almera Turbo will receive a Watsons Voucher worth RM30 in appreciation of their interest. They can make use of the test-drive opportunity to experience the performance of the turbocharged engine as well as its fuel efficiency. In a charity event organized by ETCM last year, one owner was able to get fuel consumption of up to 18.4 kms a litre which would give a range of up to 650 kms on a full tank.

The Almera also comes with Nissan Intelligent Mobility and Nissan Safety Shield 360 to provide pro-active action in avoiding accidents or reducing the damage if an accident occurs. Up to 6 airbags are present and to assist the driver are active safety systems such as Blind Spot warning Rear Cross Traffic Alert and an Intelligent Around View Monitor 360^ocamera.

The dominating Navara PRO-4X comes with a proven 2.5-litre turbodiesel engine with 7-speed transmission and robust 4×4 system can tackle any terrain, while Nissan Intelligent Mobility Technologies provide a 360-degree Safety Shield for the vehicle and occupants.

All new Nissan vehicles come with a 5-year warranty covering manufacturing defects and other than the Navara, there is no limit on mileage travelled after registration. For the Navara, the mileage limit is 150,000 kms or 5 years, whichever comes first.

24-hour Nissan showroom
For customers who are not able to visit Nissan showroom, information is also available at the 24-hour Nissan Online Showroom and test-drives can even be arranged at their premises if they wish. And if a purchase decision is made. a low-booking fee payment online (via the Lazada Nissan Flagship store) is now available and a Sales Representative will be in touch to assist in completing the purchase process.

For more information, www.nissan.com.my, or contact the Nissan Customer Care Centre hotline at 1800-88-3838.

FEATURE: A closer look at the Nissan Almera Turbo engine

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Ford to create separate business units for EVs and for combustion vehicles

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A chance to become a ‘millionaire’ when purchasing a new Nissan vehicle in March

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