Wednesday, January 27, 2016

Toyota keeps top global automaker crown, sells 10.15 million in 2015

Toyota keeps top global automaker crown, sells 10.15 million in 2015

[TOKYO] Toyota kept its title as the world's biggest automaker on Wednesday after posting global sales of 10.15 million vehicles for 2015, outpacing scandal-hit Volkswagen and US rival General Motors.
Struggling to move past a pollution-cheating scandal, Volkswagen earlier said it logged sales of 9.93 million vehicles worldwide last year, while Chevrolet and Cadillac maker GM moved 9.8 million.
In the first half of the year, the German giant was in pole position, outpacing Toyota as it rode momentum in emerging economies.
But then it posted its first drop in annual sales for more than a decade, as it was hammered by a massive pollution cheating scandal.
Volkswagen sank into its biggest crisis over stunning revelations in September that it had fitted 11 million of its vehicles with devices designed to dodge pollution tests.
The US government has said it was suing VW for US$20 billion in civil penalties over the scandal.
Toyota broke GM's decades-long reign as the world's top automaker in 2008 but lost it three years later to the US firm, as Japan's earthquake-tsunami disaster dented production and disrupted the supply chains.
However, in 2012 it once again overtook its Detroit rival and has remained on top since, despite slowing sales in its home market where a weak economy has taken a bite out of demand.
Toyota's overall sales - which include its Daihatsu and Hino brands - edged down 0.8 per cent from a year ago.
Rival Nissan said Wednesday its global sales hit a calendar-year record 5.42 million units, up 2.1 per cent from 2014.
Toyota's upbeat announcement comes despite the firm struggling to recover its reputation for safety after the recall of millions of cars around the world for various problems, including an exploding air bag crisis at supplier Takata.
At least 10 deaths globally and scores of injuries have been linked to the faulty airbags fitted in cars made by some of the world's leading auto giants.
Toyota, maker of the Camry sedan and Prius hybrid, had stopped building new plants for several years, and turned its focus to quality rather than sales volume.
The company is also overhauling its production methods, vowing to slash development costs to try to offset any downturn in the market and squeeze more productivity out of existing plants.
Toyota is pushing further into the fast-growing market for environmentally friendly cars, especially in China where officials are struggling to contain an air pollution crisis.
It has also released its first mass-market hydrogen fuel-cell car, the Mirai, in a bid to tap the green market.
Volkswagen's new chief executive, meanwhile, has said his firm was abandoning its ambition to become the world's biggest carmaker.
"For me, this obsession with unit sales and the ambition to constantly reach new records makes no sense," Matthias Mueller told the weekly WirtschaftsWoche in an interview published in December.
"I'm not going declare sheer size as an end in itself." His predecessor Martin Winterkorn had focused on VW overtaking Toyota as the world's biggest carmaker by 2018.
AFP

In coal-powered China, electric car surge fuels fear of worsening smog

In coal-powered China, electric car surge fuels fear of worsening smog

[BEIJING] Automakers' latest projections for rapid growth of China's green car market have added to concerns of worsening smog as the uptake of electric vehicles powered by coal-fired grids races ahead of a switch to cleaner energy.
Volkswagen AG plans 15 new-energy models over 3-5 years, its China chief told a green car conference in Beijing on Saturday, predicting - like the government - that Chinese production of electric and plug-in hybrid vehicles would grow almost six times to 2 million annually by 2020.
At the same event, BYD Co Ltd's chairman told media that the Chinese automaker's electric vehicle sales would double in each of the next three years.
The government has been promoting electric vehicles to cut the smog that frequently envelops Chinese cities, helping sales quadruple last year and making China the biggest market, the finance minister said at the conference. Less than 1 per cent of passenger cars are now new energy, but the pace of growth raises their potential to worsen smog.
A series of studies by Tsinghua University, whose alumni includes the incumbent president, showed electric vehicles charged in China produce two to five times as much particulate matter and chemicals that contribute to smog versus petrol-engine cars. Hybrid vehicles fare little better.
"International experience shows that cleaning up the air doesn't need to rely on electric vehicles," said Los Angeles-based An Feng, director of the Innovation Center for Energy and Transportation. "Clean up the power plants." China plans to convert the grid to renewable fuel or clean-coal technology as part of efforts to cut carbon emissions by 60 per cent by 2020.
That will speed the green impact of electric vehicles, said environmental science professor Huo Hong at the elite Tsinghua university. But that goal will be "really difficult to achieve." Tsinghua's studies call into question the wisdom of aggressively promoting vehicles which the university said could not be considered environmentally friendly for at least a decade in many areas of China unless grid reform accelerates.
China's industry, environment and science ministries, which devise most new energy vehicle policies, did not respond to requests for comment. BYD and Volkswagen declined to immediately comment.
POLICY MISMATCH To promote new-energy vehicles, the government has offered various incentives in recent years including tax breaks, and set targets such as having 5 million new-energy vehicles on the road by 2020 - more than 8 times the current number.
Authorities in some cities particularly affected by smog have gone further. Beijing and Tianjin, for instance, have exempted new-energy vehicles from limits on the number of new cars granted licence plates, and exempted them from driving restrictions that other cars face on certain days of the week.
This month, the industrial Hebei province decreed that all new residential complexes must have car-charging facilities.
In western Beijing, 62-year-old retired truck and taxi driver Zhang Zhijun bought a BYD Tang hybrid last month and plans to trade in his petrol-engine Toyota Corolla for an electric car for short rides like taking his grandson to school. "Right now smog is very heavy in China. This way, if everyone does their part, it will definitely cut down on pollution," Zhang said.
But Beijing, Tianjin and Hebei are all more than 90 per cent reliant on coal for energy, Tsinghua's research showed.
Huo and academics point out that, at the very least, the proliferation of electric vehicles pushes more sources of pollution away from heavily populated urban centres.
Whatever the impact, Qin Lihong, president of startup electric automaker NextEV, said cleaning the grid would be the quickest route to clear skies. "It's much easier for society to make hundreds of power plants better than change the hundreds of millions of cars in thousands of cities," he said.
REUTERS

Singapore awards first pair of LNG bunkering licences

Singapore awards first pair of LNG bunkering licences

PAVILION Gas and a joint bid by Keppel Offshore & Marine and BG Group emerged as the winners of Singapore's first LNG (liquefied natural gas) bunkering licences.
The Maritime and Port Authority of Singapore said the licences were awarded to two out of 12 submitted bids that best met the set criteria of a request for proposal, which closed on Sept 30.
MPA will work with the two licence holders to develop the necessary infrastructure for them to begin supplying LNG bunker to vessels in the Port of Singapore by early 2017.
Singapore is set to be among the first nations to embark on LNG bunkering. The use of the cleaner burning fossil fuel alternative is also among the options being explored by ports and vessel owners looking to comply with the International Maritime Organization's cap on sulphur emissions due to kick in by 2020.
MPA is also working with stakeholders to develop LNG bunkering standards and procedures at both the national and international levels.
The port authority has also signed memoranda of understanding with the Port of Rotterdam, Antwerp Port Authority and the Port of Zeebrugge to harmonise LNG bunkering standards and procedures.
In addition, MPA is funding up to S$12 million for the building of six LNG-fuelled vessels. To date, MPA has received a total of five applications which are being evaluated.
MPA expects to announce the successful applicants by March 2016. MPA will also be engaging towage service providers in Singapore to consider switching to LNG as a fuel when they commission new tug boats.

Gold's rally just won't last for this forecaster as rates climb

Gold's rally just won't last for this forecaster as rates climb

[SINGAPORE] Gold's stellar start to the year simply won't last as the US jacks up interest rates, according to Richard Jerram, chief economist at Bank of Singapore Ltd.
"People will start looking through the volatility and just focus on the idea that rates are going to go up," Mr Jerram said in an interview in Singapore on Wednesday. "It's going to go down, for a long time." Gold has surged in 2016 after three years of losses as a rout in global equities, prospects for a weaker yuan and sinking commodity prices have reinvigorated demand for a haven. Jerram said that until the US stops increasing rates in another three or four years bullion will actually drop, raising the possibility that it may sink below US$800 an ounce.
"We're advising people, you can own a little bit as a hedge if you really feel worried," said Mr Jerram, who works for the private-banking unit of Oversea-Chinese Banking Corp. "But it's probably going to go down for somewhere between a long time and forever." Bullion for immediate delivery traded at US$1,118.60 an ounce at 3:40 pm in Singapore, according to Bloomberg generic pricing. The metal rallied to US$1,123.06 on Tuesday, its highest since Nov 3, and is up 5.4 per cent this year.
The Federal Reserve is expected to leave rates unchanged when policy makers conclude their two-day meeting in Washington on Wednesday. There's now a 25 per cent chance they will increase rates by March, down from 51 per cent at the start of the year.
BLOOMBERG

Shell shareholders approve US$49b BG takeover

Shell shareholders approve US$49b BG takeover

[THE HAGUE, Netherlands] Shareholders of Royal Dutch Shell approved the company's US$49 billion takeover of smaller rival BG Group at a special stakeholder meeting in The Hague on Wednesday.
As many as 83.08 per cent of shareholders voted in favour of the deal, one of the largest in the energy sector in the past decade.
A total of 16.92 per cent of shareholders opposed the deal. Shell needed a majority of positive shareholder votes to seal the deal.
REUTER
S

US crude inventories reach highest level on record last week: EIA

US crude inventories reach highest level on record last week: EIA

[NEW YORK] US crude inventories rose by 8.4 million barrels last week, climbing to 494.2 million barrels, the highest on record, according to data released Wednesday by the US Energy Information Administration.
US gasoline inventories in the Midwest rose by 433,000 barrels to 58.9 million barrels, the highest overall volumes since February of 2010, federal data shows.
REUTERS

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