Thursday, January 6, 2005

Global Auto Report

Detroit News staff, wire and Bloomberg News reports

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VW won't build U.S. manufacturing plant

Volkswagen AG, Europe's biggest carmaker, won't build a manufacturing plant in the United States and instead will rely on increased production from factories in Mexico and Brazil, the company's chief executive said. The company in December said it would be "careless" not to consider building in the United States, particularly for models conceived for the U.S. market, Frankfurter Allgemeine Zeitung reported, citing Georg Flandorfer, marketing and sales head for the Volkswagen brand. Volkswagen lost as much as 1.2 billion euros ($1.6 billion) in the United States last year, said Frank Witter, chief executive of Volkswagen of America, in an interview today at the Los Angeles show. He cited the dollar's decline against the euro, which makes imports from Europe to the United States more expensive, as one reason

 

Fiat's share of Italian market hits new low

Fiat SpA's share of Italy's new car market fell to a record low in December as Renault SA and Hyundai Motor Co. increased sales. Fiat, the country's largest manufacturer, last month controlled 26.6 percent of the Italian market, compared with 27.3 percent a year ago. The Turin-based carmaker boosted sales by 2.4 percent in December to 39,920 vehicles. Industrywide sales grew by 5.2 percent last month, the government said Wednesday. The decline puts pressure on CEO Sergio Marchionne, who aims to end three years of losses at Fiat Auto by returning the business to profit next year. Italy is Fiat's biggest market, accounting for 40 percent of its auto sales.

 

Toyota will introduce Lexus in Japan

Toyota Motor Co.p., the biggest seller of luxury cars in the United States, will introduce its Lexus brand in Japan in August, competing in its home market against DaimlerChrysler AG and Bayerische Motoren Werke AG. Toyota will rename four existing sedan models under the Lexus brand by 2006, aiming to sell up to 60,000 units a year through 180 dealers in Japan, Executive Vice President Kazushi Iwatsuki said. The Lexus RX330 sport utility vehicle, which analysts say may also be sold in Japan, will be displayed next week at the North American International Auto Show in Detroit.