Ford Motor Company will partner with Coulomb Technologies to provide nearly 5,000 free in-home charging stations for some of the automaker's first electric vehicle customers.
Under the Ford Blue Oval ChargePoint Program, residents in nine designated markets could receive a free ChargePoint® Networked Charging Station with the purchase of a Ford Transit Connect Electric vehicle. The nine markets designated by Coulomb Technologies include Austin, Detroit, Los Angeles, New York, Orlando, Sacramento, the San Jose/San Francisco Bay Area, Redmond, Wash., and Washington D.C. The installation of ChargePoint charging stations will begin immediately.
The Ford Blue Oval ChargePoint Program is part of Coulomb Technologies' $37 million ChargePoint America charging station infrastructure project made possible by a $15 million grant funded by the American Recovery and Reinvestment Act through the Transportation Electrification Initiative administered by the Department of Energy.
"Both the ChargePoint America and Ford Blue Oval ChargePoint Programs help build the necessary infrastructure to make the electric vehicle a more viable option for American consumers," said Sue Cischke, global vice president, Sustainability, Environment and Safety Engineering, Ford Motor Company. "Ford's electrification strategy focuses on providing real world value to customers with a range of driving behaviors and conditions. These programs and charging stations help us deliver an added value to our future electric vehicle owners."
Ford plans to introduce five new electrified vehicles in North America by 2012, providing a range of products to meet a variety of customer needs. These include:
A Transit Connect Electric small commercial van debuting later this year
A Ford Focus Electric passenger car debuting in 2011
Two next-generation lithium-ion battery hybrid-electric vehicles and a plug-in hybrid by 2012.
ChargePoint America will offer home and public charging stations to individuals and businesses. Businesses interested in applying for free public charging stations or consumers exploring an electric vehicle purchase can visit www.chargepointamerica.com for more information.
"ChargePoint America builds upon our established and growing network of charging stations and will in turn encourage consumers to buy electric vehicles," said Richard Lowenthal, CEO of Coulomb Technologies. "Our Department of Energy grant was funded by the American Recovery and Reinvestment Act, also known as the stimulus bill, to provide jobs for Americans. Our products are built and installed with American labor. Every time we ship a ChargePoint charging station, three Americans go to work for a day."
Coulomb's ChargePoint® Network, is open to all plug-in electric vehicle drivers and provides authentication, management and real-time control for the networked electric vehicle charging stations. The network of electric vehicle charging stations is accessible to all plug-in drivers by making a toll-free call to the 24/7 number on each charging station, or signing up for a ChargePoint Network monthly access plan and obtaining a ChargePass™ smart card. Other future payment options include using any smart (RFID) credit/debit card to authorize a session or using a standard credit or debit card at a remote payment station (RPS) to pay for charging sessions. To locate available charging stations, visit mychargepoint.net and click "Find Stations."
Jun 3, 2010
May 15, 2010
Fiscal Year 2009 Financial Results Press conference Carlos Ghosn, President and CEO, Nissan Motor Co., Ltd. Toshiyuki Shiga, Chief Operating Officer
Carlos Ghosn:
Fiscal year 2009 was an extremely challenging year. At no other time in history has the global automotive industry faced such threatening impacts from the financial crisis, widespread economic recession, a distressed supply base and volatile foreign exchange rates. Within Nissan, we have kept our focus on recovery, guided by our recovery plan. Though we are still operating in crisis mode, we are well on track toward complete recovery. At the close of fiscal year 2009, our consolidated net revenues reached 7.517 trillion yen. Full-year operating profits reached 311.6 billion yen, and net income amounted to 42.4 billion yen. Free cash flow for our auto business resulted in a positive 375.5 billion yen. As a result, net debt for the auto business was reduced to 29.7 billion yen, showing a significant improvement compared to last year's level of 387.9 billion yen. Our core business benefited from the launch of eight all-new models globally, and customers responded positively to our product offer. Consequently, Nissan maintained or increased its market share in Japan, Europe and the United States, and our sales in China increased substantially. As we managed through the financial crisis and recession, Nissan did not compromise its strategic priorities. We did not slow our investments to contribute to a zero-emission society. When the Nissan LEAF goes on sale this year - as the first of the eight all-electric models to launch - the Renault-Nissan Alliance will be the first to mass-market affordable zero-emission vehicles, backed by battery capacity of 500,000 units. No other automaker will be producing electric batteries or cars at such a scale. And customers are ready. To date, 130,000 consumers in the U.S. have registered their interest in buying a Nissan LEAF. With sales starting this December, 13,000 pre-orders have been submitted in just over one month in the U.S. and Japan, largely driven by individual customer demand. This amount already surpasses our available production capacity for fiscal year 2010. Another focus of investments has been our emphasis on very affordable transportation. Entry segments today account for more than 25% of the global TIV of 64 million units, and the segment is growing. We will offer maximum value at affordable prices, beginning with a lineup of global compact cars based on Nissan's new V-platform, which will represent 1 million unit sales at full launch. Importantly, these compact cars' new engines will make eco-friendliness accessible to everyone as they set a new standard for fuel efficiency worldwide. Nissan is moving forward with many actions in emerging markets:
• In China, we will be able to produce more than 1 million cars a year in 2012, based on two shifts at our Huadu, Xiangfang and Zhengzhou plants, and we will expand our capacity further in line with market growth. Our intention is to grow our market share from 6% today to 10% as soon as possible.
• Our Alliance plant in Chennai, India, has started production with a 200,000-unit capacity and plans to increase to 400,000 units at full ramp-up in order to supply the Indian market and to export to more than 100 countries in Europe, Africa and the Middle East. We are also partnering with Ashok Leyland to start LCV production and with Bajaj for an Alliance ultra-low-cost car.
• In Brazil, where TIV grew by 16% this year, our market share stood at less than 1%. Through our growing product portfolio and network coverage, we plan to achieve 5% share in the midterm, contributing to the Alliance share objective of more than 10%.
• In Russia, we will introduce the Murano in early 2011 in our new St. Petersburg factory, in addition to the X-TRAIL and Teana. Nissan's market share stands at 4% today. Using Renault and Avtovaz platforms and production sites and optimizing our capacity, the Renault, Nissan and Avtovaz market share will increase from one-third to 40% as the Russian market recovers.
• In the Middle East, we are on the offensive in GCC with a revitalized network of national sales companies and distributors and the introduction of our large SUV flagship, the all-new Nissan Patrol.
• We are also positioning ourselves for the next wave of emerging countries, such as Indonesia.
Going forward, we believe 2010 will be another difficult year. Global economic conditions are improving, but they are not yet robust. Consumer spending still reflects a shaky confidence in most Western markets as well as in Japan. Commodity prices will be rising with economic recovery. We know the worst of the crisis is behind us, and our plan of action is to emerge from the crisis completely in this fiscal year and start a new mid-term plan in fiscal year 2011. Nissan is heading in the right direction, and we are eager to move forward with clear priorities.
Toshiyuki Shiga:
I will begin the summary of our performance during the past year with a review of global sales. The global TIV was 64.1 million units, an increase from the 61.6 million units sold in fiscal year 2008, mainly due to increases coming from government-led stimulus programs around the world and the increased demand in emerging markets, especially in China. Nissan's global sales amounted to 3.515 million units, a 3% increase year-on-year. Our sales evolution was in line with the TIV change in volatile market conditions, and our overall market share was 5.5%. In the fourth quarter alone, global sales totaled 1,010,000 units, up 29.7% from the same period in fiscal 2008. As in the third quarter, the increase was primarily due to the strong growth in China and the recovery in most of the mature markets. We launched eight new models globally, including the PIXO in Europe; Patrol in the Middle East; NV200 Vanette, Fuga and Roox in Japan; Infiniti G Convertible and 370Z Roadster in the United States; and the new March in Thailand, the first in our global compact car series. Let me give the sales breakdown by region. In Japan, supported by the eco-car tax reductions and incentives offered by the government, the TIV increased 3.8% year-on-year. Our sales reached 630,000 units, 2.9% above the previous year. Nissan's market share remained stable at 12.9%. The NECO series of fuel-efficient models contributed to our sales. Serena was the number-one minivan for the second year in a row, and X-TRAIL ranked first in the SUV segment for the third consecutive year. In the United States, the TIV dropped 9.3% to 10.8 million units. We sold 824,000 units, down 3.8%, while our market share increased four-tenths of a percentage point, to 7.6%. In the fourth quarter alone, sales in the U.S. increased 30.6%, resulting in a record market share of 9%, with strong contributions from the sales of Versa and Altima. In Europe, where the TIV decreased 6.4%, we sold 517,000 units, down 2.4% from the prior year, but our market share increased slightly to 2.8%. Government scrap incentives contributed to our sales increase of 24.5% in Western Europe, but the sales gain was offset by the 60.6% decline in sales in Russia. The light commercial vehicle segment in Europe is still in a very tough position, but we were pleased that our NV200 small van was named the "International Van of the Year 2010." In China, our sales grew 38.7% to 756,000 units. Our market share was 6%, down four-tenths of a percentage point from the prior year because our supply could not meet the strong market demand. In the fourth quarter of fiscal year 2009, sales in China increased 48.1% to 214,000 units, thanks to the strong offensive coming from Sylphy, Teana and Livina. Sales in the first quarter of fiscal year 2010 showed continuous growth, increasing 68.2% to 243,200 units. In other markets, sales in Thailand increased 24.2% to 34,600 units, and the March was named the "Most Environmentally Friendly Car of the Year." In the Middle East, sales dropped 19.7% to 179,100 units. In Australia, sales decreased 1.2% to 55,600 units.
FY09 financial performance Recovery plan actions taken to preserve cash and recover profits contributed to our financial performance in fiscal year 2009. Consolidated net revenues decreased 10.9%, to 7.517 trillion yen, which reflects the stronger yen offsetting the increase in sales volume. Consolidated operating profit totaled 311.6 billion yen, compared to a negative 137.9 billion yen in fiscal 2008. Net income reached 42.4 billion yen, compared to a negative 233.7 billion yen in fiscal 2008. Explaining the operating profit variance analysis:
• The 162.5 billion yen negative impact from foreign exchange came from the appreciation of the yen against all currencies. By currency, the majority of this variance was due to the impact of the U.S. dollar at 86 billion yen, the Russian ruble at 28 billion yen, and the Canadian dollar at 14 billion yen.
• The net impact from purchasing cost reduction was a positive 215.4 billion yen. This amount included a positive impact from the decrease in raw material and energy costs by 81 billion yen. Even though the current market price on raw materials is rapidly increasing, the impact on our results was positive in fiscal year 2009.
• Volume and mix produced a positive impact of 26.9 billion yen as a result of the increase in global sales volume. The fourth quarter of fiscal 2009 was positive by 153.1 billion yen due to the volume recovery in most countries.
• The reduction in Marketing and Sales expense was a positive 27.1 billion yen due mainly to savings in fixed expenses, such as advertising. Incentive spending was increased in Europe due to its tough market conditions.
• The provisions for the residual risk on leased vehicles in North America resulted in a positive variance of 141.7 billion yen, including gains on disposal because of improved used-car prices in our lease portfolio.
• R&D costs decreased 64.5 billion yen.
• Sales financing contributed a positive 50.1 billion yen. This was due mainly to better borrowing costs across the globe and lower loss provisions compared to fiscal year 2008.
• The remaining variance was a positive 86.3 billion yen, due mainly to savings in fixed expenses for all areas, including manufacturing costs and G&A expenses, as well as the profit recovery from affiliate companies, such as Jatco.
For the fourth quarter, global production volume totaled 951,000 units. Our flexible production network responded quickly to adjust production volumes in line with demand. Due to careful inventory management, our inventory of new vehicles remains at a low level, at 470,000 units at the end of fiscal year 2009. We continue to manage inventory carefully to limit its impact on our free cash flow.
FY10 outlook Let's move to our outlook for fiscal year 2010. With a TIV assumption of 66 million units, we expect our global sales to reach 3.8 million units, an increase of 8%, and a record level for Nissan. Our market share will stand at 5.8%. Our global production volume is forecast to be 3.75 million units. We will launch 10 new models globally, with more than 10 regional product launches. Our plan includes the launches of:
• Juke, Elgrand, a new minivan and a new minicar in Japan;
• Infiniti QX in the United States, followed by GCC and Russia;
• the NV series of commercial vans and a convertible crossover in the United States, along with the new Quest minivan for both the U.S. and Canadian markets;
• the Nissan LEAF zero-emission car in the United States and Japan, followed by Europe; and
• the second car in our global compact car series: an affordable sedan.
In fiscal year 2010, we will introduce more than 15 new technologies. "Zero emission" and "PURE DRIVE" are the two key pillars of our environment technology. Our zero-emission technologies will be highlighted by the launch of our EV, Nissan LEAF. In addition to EV, for our internal combustion engine vehicles, we will push hard on a range of low-carbon and low-emission technologies called "PURE DRIVE." These advances include Nissan's original hybrid and clean diesels in association with Renault, which will provide greater fuel efficiency. In addition, we are placing low-emission technologies in an increasing number of our new vehicles. For example, we'll apply idle stop to a wider range of models, starting with compact cars. With so many innovative technologies and products to come, 2010 will be a year to reinforce the image of "Nissan of Technology" in our customers' minds.
Each new year brings risks and opportunities. In fiscal 2010, risks include the continuing strong yen, increasing raw material costs, ongoing uncertainty in world markets, and instability and volatility within the euro-zone. Opportunities include a better-than-expected foreign exchange rate, sales increase in emerging markets, acceleration of Alliance synergies with Renault and further strategic cooperation with Daimler. In light of these factors, we have filed our forecast with the Tokyo Stock Exchange, using a foreign exchange rate assumption for the year of 90 yen to the dollar and 120 yen to the euro. For fiscal year 2010, we forecast the following:
• Net revenue is forecast to be 8.2 trillion yen.
• Operating profit is expected to be 350 billion yen.
• Net income is forecast to be 150 billion yen.
• Capital expenditures are expected to reach 360 billion yen.
• R&D expenses will amount to 430 billion yen.
• Free cash flow will be positive.
• Net auto debt will be eliminated at the end of fiscal year 2010.
Operating profit analysis As I said earlier, we expect the environment in the fiscal year 2010 to continue to be very tough. Even so, our operating profit forecast is expected to be better than last year's performance by 38.4 billion yen - from 311.6 billion yen to 350 billion yen - due to several factors:
• The impact from foreign exchange is a negative 30 billion yen, with the U.S. dollar accounting for the majority of this variance.
• The provisions for the residual risk on leased vehicles in North America result in a negative variance of 40 billion yen, due mainly to the gains on disposal in the last fiscal year because of improved used-car prices in our lease portfolio.
• The net impact from purchasing cost reduction is a positive 60 billion yen. This amount includes a negative impact from the significant increase in raw material and energy costs.
• Volume and mix will produce a positive impact of 270 billion yen as a result of the growth in global sales volume.
• The increase of Marketing and Sales expenses is a negative 140 billion yen due to the normalization of fixed expenses, such as advertising, and the rise in incentives as our volume increases.
• R&D costs are expected to increase by 45 billion yen.
• Others are negative 36.6 billion yen, due mainly to an increase in manufacturing costs and a partial normalization of labor costs to a pre-crisis level.
Direction on recovery Ending fiscal year 2009 with better-than-expected results is good, but market conditions are still volatile. Nissan employees continue to be fully engaged in our company's recovery plan. Our efforts are focused around three core pillars - namely, revenue growth, tight cost management and free cash flow generation. Let me describe each one. First is revenue growth. Though some of our volume will always be linked to external factors, such as shifts in TIV, increases in sales volume are also the result of our own internal efforts. In each major market, we have concrete actions to increase market share, leveraging the planned launches of our 10 new models. For example:
• In the United States, dealer network enhancement activities are supporting performance improvement.
• In China, we intend to secure adequate supply to keep pace with the speed of market growth.
• In Europe, we established a Share Improvement Program that includes detailed steps, such as identifying opportunities through internal benchmarking, setting action plans, allocating resources and reviewing progress on a monthly basis. The improved performance that began in the middle of 2009 is continuing.
On an ongoing basis, we monitor our global car-flow situation closely every month, and we look for ways to optimize opportunities. In addition to vehicle sales, we continue to pursue the growth of associated business, such as after-sales, sales financing and OEM business. In fiscal year 2010, teams will be working on enhancing our conversion and accessory business as well as service business... expanding sales financing activities regionally... and developing business deals around vehicles, powertrains and technologies, including IP licensing of Nissan's technical strengths. Second is tight cost management. Cost reduction within the monozukuri team will continue to be the main pillar of our 2010 recovery plan. Our monozukuri functions - Engineering, Purchasing, Manufacturing and Supply Chain Management - will continue to focus on our action plans linked to technical cost reduction, parts diversity and complexity reduction, and change of material usage. For cost reduction and to neutralize foreign exchange volatility, we will continue resourcing vehicles, parts and powertrains and the localization of parts. In addition to monozukuri cost reduction, we will continue our frugal policy in expenses, such as marketing, manufacturing, R&D, overtime, travel and G&A. We will eliminate some unsustainable measures put in place during the crisis, but we will adopt the new mindset related to all expenses, based on our new standards. In other words, some of the measures put in place throughout our company will become the new normal. The third pillar of our plan is free cash flow generation. In fiscal year 2009, we achieved our positive free cash flow objective, driven largely by cash generation from profit and strictly managed working capital, which includes inventory, accounts payable and receivable. In fiscal year 2010, due to the expected increase in sales and additional sourcing from India and Thailand, working capital will have a negative effect on free cash flow. However, we will minimize this impact through continued strict inventory management, such as ongoing complexity reduction. We will also continue to control all major components of free cash flow other than working capital, such as investing activities. By achieving the three core pillars - revenue growth, disciplined cost management and free cash flow generation - Nissan will be able to complete its recovery this year.
Carlos Ghosn:
The strategic actions we have described today not only reflect our long-term vision of Nissan as a global company that creates sustainable value, but they also show our commitment to maximizing total shareholder return. Based on the current state of our business and weighing the risks and opportunities for this year, we are planning to reinstate dividend payments for fiscal year 2010 at 10 yen for the full year: 5 yen for the interim dividend and 5 yen for the year-end dividend. We will elaborate on future dividend policies when we announce our midterm plan. At the foundation of Nissan's strategy lies the Renault-Nissan Alliance, which is now in its 11th year. The Alliance is a constant lever for creating value and improving performance. Supported by the dedicated team within Renault Nissan BV, compared to our objective of 180 billion yen, we achieved 228 billion yen worth of synergies for the Alliance in 2009, contributing to the free cash flow of both companies for their respective fiscal years. Nissan alone achieved 116 billion yen worth of synergies, primarily through pure cost and CAPEX savings as well as cost and CAPEX avoidance. In 2010 the Alliance should generate 120 billion yen in savings in new synergies. If we include carryover of previous years' synergies, the effect on 2010 free cash flow will be more than 240 billion yen for both Renault and Nissan. The scope of synergies will include joint revenue opportunities in addition to cost and CAPEX savings and avoidance. With more upstream involvement in the decision-making process, the Alliance will be able to identify and integrate synergies into the future plans of both companies. The pursuit of synergies is also behind our strategic cooperation with Daimler, with whom the Alliance will work on small cars, powertrain sharing - including Daimler's 4-cylinder gasoline and diesel engines and a 6-cylinder diesel engine for Infiniti - light commercial vehicles, electric vehicles and batteries, and other areas of common interest. The synergies with Daimler have a projected net present value of at least 2 billion euros for the Alliance. The Renault-Nissan Alliance has established an effective model within our industry. We have shown how large, complex organizations can work together to use scale effectively while maintaining separate corporate identities and autonomy of action. We have demonstrated that strategic partnerships allow each partner to realize more opportunities than either could ever achieve on its own. The synergies Nissan achieves with Renault and, now, with Daimler will contribute to our company's complete recovery and enable future growth. This means growing and being sustainable in a new era that requires meeting the growing demand for affordable mobility while being conscious of and responsive to environmental requirements. A year ago, I said Nissan knows how to adapt and face a crisis. Today, you can see how we have progressed and where we are headed. The lessons learned from our revival experience in 1999 and our recovery actions in 2009 are now built or being built into our global business practices. We will emerge from this crisis more competitive and stronger. Our commitment to our customers and our stakeholders is that - no matter what the obstacles - you can expect the best from Nissan.
Fiscal year 2009 was an extremely challenging year. At no other time in history has the global automotive industry faced such threatening impacts from the financial crisis, widespread economic recession, a distressed supply base and volatile foreign exchange rates. Within Nissan, we have kept our focus on recovery, guided by our recovery plan. Though we are still operating in crisis mode, we are well on track toward complete recovery. At the close of fiscal year 2009, our consolidated net revenues reached 7.517 trillion yen. Full-year operating profits reached 311.6 billion yen, and net income amounted to 42.4 billion yen. Free cash flow for our auto business resulted in a positive 375.5 billion yen. As a result, net debt for the auto business was reduced to 29.7 billion yen, showing a significant improvement compared to last year's level of 387.9 billion yen. Our core business benefited from the launch of eight all-new models globally, and customers responded positively to our product offer. Consequently, Nissan maintained or increased its market share in Japan, Europe and the United States, and our sales in China increased substantially. As we managed through the financial crisis and recession, Nissan did not compromise its strategic priorities. We did not slow our investments to contribute to a zero-emission society. When the Nissan LEAF goes on sale this year - as the first of the eight all-electric models to launch - the Renault-Nissan Alliance will be the first to mass-market affordable zero-emission vehicles, backed by battery capacity of 500,000 units. No other automaker will be producing electric batteries or cars at such a scale. And customers are ready. To date, 130,000 consumers in the U.S. have registered their interest in buying a Nissan LEAF. With sales starting this December, 13,000 pre-orders have been submitted in just over one month in the U.S. and Japan, largely driven by individual customer demand. This amount already surpasses our available production capacity for fiscal year 2010. Another focus of investments has been our emphasis on very affordable transportation. Entry segments today account for more than 25% of the global TIV of 64 million units, and the segment is growing. We will offer maximum value at affordable prices, beginning with a lineup of global compact cars based on Nissan's new V-platform, which will represent 1 million unit sales at full launch. Importantly, these compact cars' new engines will make eco-friendliness accessible to everyone as they set a new standard for fuel efficiency worldwide. Nissan is moving forward with many actions in emerging markets:
• In China, we will be able to produce more than 1 million cars a year in 2012, based on two shifts at our Huadu, Xiangfang and Zhengzhou plants, and we will expand our capacity further in line with market growth. Our intention is to grow our market share from 6% today to 10% as soon as possible.
• Our Alliance plant in Chennai, India, has started production with a 200,000-unit capacity and plans to increase to 400,000 units at full ramp-up in order to supply the Indian market and to export to more than 100 countries in Europe, Africa and the Middle East. We are also partnering with Ashok Leyland to start LCV production and with Bajaj for an Alliance ultra-low-cost car.
• In Brazil, where TIV grew by 16% this year, our market share stood at less than 1%. Through our growing product portfolio and network coverage, we plan to achieve 5% share in the midterm, contributing to the Alliance share objective of more than 10%.
• In Russia, we will introduce the Murano in early 2011 in our new St. Petersburg factory, in addition to the X-TRAIL and Teana. Nissan's market share stands at 4% today. Using Renault and Avtovaz platforms and production sites and optimizing our capacity, the Renault, Nissan and Avtovaz market share will increase from one-third to 40% as the Russian market recovers.
• In the Middle East, we are on the offensive in GCC with a revitalized network of national sales companies and distributors and the introduction of our large SUV flagship, the all-new Nissan Patrol.
• We are also positioning ourselves for the next wave of emerging countries, such as Indonesia.
Going forward, we believe 2010 will be another difficult year. Global economic conditions are improving, but they are not yet robust. Consumer spending still reflects a shaky confidence in most Western markets as well as in Japan. Commodity prices will be rising with economic recovery. We know the worst of the crisis is behind us, and our plan of action is to emerge from the crisis completely in this fiscal year and start a new mid-term plan in fiscal year 2011. Nissan is heading in the right direction, and we are eager to move forward with clear priorities.
Toshiyuki Shiga:
I will begin the summary of our performance during the past year with a review of global sales. The global TIV was 64.1 million units, an increase from the 61.6 million units sold in fiscal year 2008, mainly due to increases coming from government-led stimulus programs around the world and the increased demand in emerging markets, especially in China. Nissan's global sales amounted to 3.515 million units, a 3% increase year-on-year. Our sales evolution was in line with the TIV change in volatile market conditions, and our overall market share was 5.5%. In the fourth quarter alone, global sales totaled 1,010,000 units, up 29.7% from the same period in fiscal 2008. As in the third quarter, the increase was primarily due to the strong growth in China and the recovery in most of the mature markets. We launched eight new models globally, including the PIXO in Europe; Patrol in the Middle East; NV200 Vanette, Fuga and Roox in Japan; Infiniti G Convertible and 370Z Roadster in the United States; and the new March in Thailand, the first in our global compact car series. Let me give the sales breakdown by region. In Japan, supported by the eco-car tax reductions and incentives offered by the government, the TIV increased 3.8% year-on-year. Our sales reached 630,000 units, 2.9% above the previous year. Nissan's market share remained stable at 12.9%. The NECO series of fuel-efficient models contributed to our sales. Serena was the number-one minivan for the second year in a row, and X-TRAIL ranked first in the SUV segment for the third consecutive year. In the United States, the TIV dropped 9.3% to 10.8 million units. We sold 824,000 units, down 3.8%, while our market share increased four-tenths of a percentage point, to 7.6%. In the fourth quarter alone, sales in the U.S. increased 30.6%, resulting in a record market share of 9%, with strong contributions from the sales of Versa and Altima. In Europe, where the TIV decreased 6.4%, we sold 517,000 units, down 2.4% from the prior year, but our market share increased slightly to 2.8%. Government scrap incentives contributed to our sales increase of 24.5% in Western Europe, but the sales gain was offset by the 60.6% decline in sales in Russia. The light commercial vehicle segment in Europe is still in a very tough position, but we were pleased that our NV200 small van was named the "International Van of the Year 2010." In China, our sales grew 38.7% to 756,000 units. Our market share was 6%, down four-tenths of a percentage point from the prior year because our supply could not meet the strong market demand. In the fourth quarter of fiscal year 2009, sales in China increased 48.1% to 214,000 units, thanks to the strong offensive coming from Sylphy, Teana and Livina. Sales in the first quarter of fiscal year 2010 showed continuous growth, increasing 68.2% to 243,200 units. In other markets, sales in Thailand increased 24.2% to 34,600 units, and the March was named the "Most Environmentally Friendly Car of the Year." In the Middle East, sales dropped 19.7% to 179,100 units. In Australia, sales decreased 1.2% to 55,600 units.
FY09 financial performance Recovery plan actions taken to preserve cash and recover profits contributed to our financial performance in fiscal year 2009. Consolidated net revenues decreased 10.9%, to 7.517 trillion yen, which reflects the stronger yen offsetting the increase in sales volume. Consolidated operating profit totaled 311.6 billion yen, compared to a negative 137.9 billion yen in fiscal 2008. Net income reached 42.4 billion yen, compared to a negative 233.7 billion yen in fiscal 2008. Explaining the operating profit variance analysis:
• The 162.5 billion yen negative impact from foreign exchange came from the appreciation of the yen against all currencies. By currency, the majority of this variance was due to the impact of the U.S. dollar at 86 billion yen, the Russian ruble at 28 billion yen, and the Canadian dollar at 14 billion yen.
• The net impact from purchasing cost reduction was a positive 215.4 billion yen. This amount included a positive impact from the decrease in raw material and energy costs by 81 billion yen. Even though the current market price on raw materials is rapidly increasing, the impact on our results was positive in fiscal year 2009.
• Volume and mix produced a positive impact of 26.9 billion yen as a result of the increase in global sales volume. The fourth quarter of fiscal 2009 was positive by 153.1 billion yen due to the volume recovery in most countries.
• The reduction in Marketing and Sales expense was a positive 27.1 billion yen due mainly to savings in fixed expenses, such as advertising. Incentive spending was increased in Europe due to its tough market conditions.
• The provisions for the residual risk on leased vehicles in North America resulted in a positive variance of 141.7 billion yen, including gains on disposal because of improved used-car prices in our lease portfolio.
• R&D costs decreased 64.5 billion yen.
• Sales financing contributed a positive 50.1 billion yen. This was due mainly to better borrowing costs across the globe and lower loss provisions compared to fiscal year 2008.
• The remaining variance was a positive 86.3 billion yen, due mainly to savings in fixed expenses for all areas, including manufacturing costs and G&A expenses, as well as the profit recovery from affiliate companies, such as Jatco.
For the fourth quarter, global production volume totaled 951,000 units. Our flexible production network responded quickly to adjust production volumes in line with demand. Due to careful inventory management, our inventory of new vehicles remains at a low level, at 470,000 units at the end of fiscal year 2009. We continue to manage inventory carefully to limit its impact on our free cash flow.
FY10 outlook Let's move to our outlook for fiscal year 2010. With a TIV assumption of 66 million units, we expect our global sales to reach 3.8 million units, an increase of 8%, and a record level for Nissan. Our market share will stand at 5.8%. Our global production volume is forecast to be 3.75 million units. We will launch 10 new models globally, with more than 10 regional product launches. Our plan includes the launches of:
• Juke, Elgrand, a new minivan and a new minicar in Japan;
• Infiniti QX in the United States, followed by GCC and Russia;
• the NV series of commercial vans and a convertible crossover in the United States, along with the new Quest minivan for both the U.S. and Canadian markets;
• the Nissan LEAF zero-emission car in the United States and Japan, followed by Europe; and
• the second car in our global compact car series: an affordable sedan.
In fiscal year 2010, we will introduce more than 15 new technologies. "Zero emission" and "PURE DRIVE" are the two key pillars of our environment technology. Our zero-emission technologies will be highlighted by the launch of our EV, Nissan LEAF. In addition to EV, for our internal combustion engine vehicles, we will push hard on a range of low-carbon and low-emission technologies called "PURE DRIVE." These advances include Nissan's original hybrid and clean diesels in association with Renault, which will provide greater fuel efficiency. In addition, we are placing low-emission technologies in an increasing number of our new vehicles. For example, we'll apply idle stop to a wider range of models, starting with compact cars. With so many innovative technologies and products to come, 2010 will be a year to reinforce the image of "Nissan of Technology" in our customers' minds.
Each new year brings risks and opportunities. In fiscal 2010, risks include the continuing strong yen, increasing raw material costs, ongoing uncertainty in world markets, and instability and volatility within the euro-zone. Opportunities include a better-than-expected foreign exchange rate, sales increase in emerging markets, acceleration of Alliance synergies with Renault and further strategic cooperation with Daimler. In light of these factors, we have filed our forecast with the Tokyo Stock Exchange, using a foreign exchange rate assumption for the year of 90 yen to the dollar and 120 yen to the euro. For fiscal year 2010, we forecast the following:
• Net revenue is forecast to be 8.2 trillion yen.
• Operating profit is expected to be 350 billion yen.
• Net income is forecast to be 150 billion yen.
• Capital expenditures are expected to reach 360 billion yen.
• R&D expenses will amount to 430 billion yen.
• Free cash flow will be positive.
• Net auto debt will be eliminated at the end of fiscal year 2010.
Operating profit analysis As I said earlier, we expect the environment in the fiscal year 2010 to continue to be very tough. Even so, our operating profit forecast is expected to be better than last year's performance by 38.4 billion yen - from 311.6 billion yen to 350 billion yen - due to several factors:
• The impact from foreign exchange is a negative 30 billion yen, with the U.S. dollar accounting for the majority of this variance.
• The provisions for the residual risk on leased vehicles in North America result in a negative variance of 40 billion yen, due mainly to the gains on disposal in the last fiscal year because of improved used-car prices in our lease portfolio.
• The net impact from purchasing cost reduction is a positive 60 billion yen. This amount includes a negative impact from the significant increase in raw material and energy costs.
• Volume and mix will produce a positive impact of 270 billion yen as a result of the growth in global sales volume.
• The increase of Marketing and Sales expenses is a negative 140 billion yen due to the normalization of fixed expenses, such as advertising, and the rise in incentives as our volume increases.
• R&D costs are expected to increase by 45 billion yen.
• Others are negative 36.6 billion yen, due mainly to an increase in manufacturing costs and a partial normalization of labor costs to a pre-crisis level.
Direction on recovery Ending fiscal year 2009 with better-than-expected results is good, but market conditions are still volatile. Nissan employees continue to be fully engaged in our company's recovery plan. Our efforts are focused around three core pillars - namely, revenue growth, tight cost management and free cash flow generation. Let me describe each one. First is revenue growth. Though some of our volume will always be linked to external factors, such as shifts in TIV, increases in sales volume are also the result of our own internal efforts. In each major market, we have concrete actions to increase market share, leveraging the planned launches of our 10 new models. For example:
• In the United States, dealer network enhancement activities are supporting performance improvement.
• In China, we intend to secure adequate supply to keep pace with the speed of market growth.
• In Europe, we established a Share Improvement Program that includes detailed steps, such as identifying opportunities through internal benchmarking, setting action plans, allocating resources and reviewing progress on a monthly basis. The improved performance that began in the middle of 2009 is continuing.
On an ongoing basis, we monitor our global car-flow situation closely every month, and we look for ways to optimize opportunities. In addition to vehicle sales, we continue to pursue the growth of associated business, such as after-sales, sales financing and OEM business. In fiscal year 2010, teams will be working on enhancing our conversion and accessory business as well as service business... expanding sales financing activities regionally... and developing business deals around vehicles, powertrains and technologies, including IP licensing of Nissan's technical strengths. Second is tight cost management. Cost reduction within the monozukuri team will continue to be the main pillar of our 2010 recovery plan. Our monozukuri functions - Engineering, Purchasing, Manufacturing and Supply Chain Management - will continue to focus on our action plans linked to technical cost reduction, parts diversity and complexity reduction, and change of material usage. For cost reduction and to neutralize foreign exchange volatility, we will continue resourcing vehicles, parts and powertrains and the localization of parts. In addition to monozukuri cost reduction, we will continue our frugal policy in expenses, such as marketing, manufacturing, R&D, overtime, travel and G&A. We will eliminate some unsustainable measures put in place during the crisis, but we will adopt the new mindset related to all expenses, based on our new standards. In other words, some of the measures put in place throughout our company will become the new normal. The third pillar of our plan is free cash flow generation. In fiscal year 2009, we achieved our positive free cash flow objective, driven largely by cash generation from profit and strictly managed working capital, which includes inventory, accounts payable and receivable. In fiscal year 2010, due to the expected increase in sales and additional sourcing from India and Thailand, working capital will have a negative effect on free cash flow. However, we will minimize this impact through continued strict inventory management, such as ongoing complexity reduction. We will also continue to control all major components of free cash flow other than working capital, such as investing activities. By achieving the three core pillars - revenue growth, disciplined cost management and free cash flow generation - Nissan will be able to complete its recovery this year.
Carlos Ghosn:
The strategic actions we have described today not only reflect our long-term vision of Nissan as a global company that creates sustainable value, but they also show our commitment to maximizing total shareholder return. Based on the current state of our business and weighing the risks and opportunities for this year, we are planning to reinstate dividend payments for fiscal year 2010 at 10 yen for the full year: 5 yen for the interim dividend and 5 yen for the year-end dividend. We will elaborate on future dividend policies when we announce our midterm plan. At the foundation of Nissan's strategy lies the Renault-Nissan Alliance, which is now in its 11th year. The Alliance is a constant lever for creating value and improving performance. Supported by the dedicated team within Renault Nissan BV, compared to our objective of 180 billion yen, we achieved 228 billion yen worth of synergies for the Alliance in 2009, contributing to the free cash flow of both companies for their respective fiscal years. Nissan alone achieved 116 billion yen worth of synergies, primarily through pure cost and CAPEX savings as well as cost and CAPEX avoidance. In 2010 the Alliance should generate 120 billion yen in savings in new synergies. If we include carryover of previous years' synergies, the effect on 2010 free cash flow will be more than 240 billion yen for both Renault and Nissan. The scope of synergies will include joint revenue opportunities in addition to cost and CAPEX savings and avoidance. With more upstream involvement in the decision-making process, the Alliance will be able to identify and integrate synergies into the future plans of both companies. The pursuit of synergies is also behind our strategic cooperation with Daimler, with whom the Alliance will work on small cars, powertrain sharing - including Daimler's 4-cylinder gasoline and diesel engines and a 6-cylinder diesel engine for Infiniti - light commercial vehicles, electric vehicles and batteries, and other areas of common interest. The synergies with Daimler have a projected net present value of at least 2 billion euros for the Alliance. The Renault-Nissan Alliance has established an effective model within our industry. We have shown how large, complex organizations can work together to use scale effectively while maintaining separate corporate identities and autonomy of action. We have demonstrated that strategic partnerships allow each partner to realize more opportunities than either could ever achieve on its own. The synergies Nissan achieves with Renault and, now, with Daimler will contribute to our company's complete recovery and enable future growth. This means growing and being sustainable in a new era that requires meeting the growing demand for affordable mobility while being conscious of and responsive to environmental requirements. A year ago, I said Nissan knows how to adapt and face a crisis. Today, you can see how we have progressed and where we are headed. The lessons learned from our revival experience in 1999 and our recovery actions in 2009 are now built or being built into our global business practices. We will emerge from this crisis more competitive and stronger. Our commitment to our customers and our stakeholders is that - no matter what the obstacles - you can expect the best from Nissan.
Apr 30, 2010
Audi looks to invest in renewable electricity
AUDI AG is looking to invest in renewable sources of energy. In support of this goal, Audi this week signed an agreement with the international consortium "Desertec Industrial Initiative". The long-term goal of the joint venture is the climate-friendly production of energy in the deserts of North Africa and the Middle East. As an associated partner, Audi will initially work to create the right conditions and to establish the necessary infrastructure.
"When at Audi we speak of sustainable mobility, we are looking at the entire energy balance", said Rupert Stadler, Chairman of the Board of Management of AUDI AG. Audi is looking to introduce its first small-series electric car to the market as early as 2012. In doing so, Stadler said Audi will not only apply the principles of sustainability to the production of the cars, but also to ensure that customers can sustainably operate the cars. "Electric cars from Audi will run on sustainably produced electricity. To achieve this goal we're supporting the development of solar- and wind-driven power plants", Stadler said.
By partnering with Desertec, Audi is joining a unique industrial initiative. It is working to achieve a safe, sustainable and climate-friendly energy supply from the deserts of North Africa and the Middle East. The Desertec Industrial Initiative is working to develop the right conditions for targeted investment in solar and wind energy on the basis of careful analysis. Today the Desertec Industrial Initiative is backed by 16 founding companies, the DESERTEC Foundation and associated partners, who work to support the initiative's objectives.
In its holistic view of the energy balance of its products, AUDI AG includes its production processes. Surpassing the common German mix, an above-average percentage of the energy needed for production is fed into AUDI AG's plants from renewable sources. Novel photovoltaic panels on its roofs actively feed green electricity into the German grid. In the future, roughly an additional 14,000 megawatt hours are to be added to this through wind power; the utilization of biogas is also foreseen. The partnership with Desertec now expands this commitment.
"When at Audi we speak of sustainable mobility, we are looking at the entire energy balance", said Rupert Stadler, Chairman of the Board of Management of AUDI AG. Audi is looking to introduce its first small-series electric car to the market as early as 2012. In doing so, Stadler said Audi will not only apply the principles of sustainability to the production of the cars, but also to ensure that customers can sustainably operate the cars. "Electric cars from Audi will run on sustainably produced electricity. To achieve this goal we're supporting the development of solar- and wind-driven power plants", Stadler said.
By partnering with Desertec, Audi is joining a unique industrial initiative. It is working to achieve a safe, sustainable and climate-friendly energy supply from the deserts of North Africa and the Middle East. The Desertec Industrial Initiative is working to develop the right conditions for targeted investment in solar and wind energy on the basis of careful analysis. Today the Desertec Industrial Initiative is backed by 16 founding companies, the DESERTEC Foundation and associated partners, who work to support the initiative's objectives.
In its holistic view of the energy balance of its products, AUDI AG includes its production processes. Surpassing the common German mix, an above-average percentage of the energy needed for production is fed into AUDI AG's plants from renewable sources. Novel photovoltaic panels on its roofs actively feed green electricity into the German grid. In the future, roughly an additional 14,000 megawatt hours are to be added to this through wind power; the utilization of biogas is also foreseen. The partnership with Desertec now expands this commitment.
Apr 29, 2010
Opel Ampera Passes Production Milestone
The Opel Ampera passed an important milestone Friday, April 23, when the first pre-production Model Year 2012 Ampera rolled off the line at GM's Pre-Production Operations assembly line in Warren, Michigan.
Assembly workers will build more pre-production Amperas in the coming months. These pre-production vehicles will not be sold at dealerships, but used instead for testing and validating the production intent design as well as developing the final vehicle software and controls. Engineers in Europe and the United States also use them to tune the vehicle's overall driving experience. Some of these Amperas will have very short lives as they will be used in safety and structural integrity testing.
"We're right on target for producing the Ampera for European markets later next year," said Andrew Farah, Vehicle Chief Engineer for the Ampera "There's still work to be done, but being able to drive an Opel Ampera off our pre-production line is a great accomplishment for the teams here and in Europe."
The Opel Ampera extended-range electric vehicle delivers up to 60 kilometers of pure electric driving before an engine-generator kicks in to sustain the battery charge and seamlessly extend the range to more than 500 kilometers. The battery can be charged by plugging the vehicle's on-board charge system into a standard household outlet. It is scheduled to go on sale end 2011.
Assembly workers will build more pre-production Amperas in the coming months. These pre-production vehicles will not be sold at dealerships, but used instead for testing and validating the production intent design as well as developing the final vehicle software and controls. Engineers in Europe and the United States also use them to tune the vehicle's overall driving experience. Some of these Amperas will have very short lives as they will be used in safety and structural integrity testing.
"We're right on target for producing the Ampera for European markets later next year," said Andrew Farah, Vehicle Chief Engineer for the Ampera "There's still work to be done, but being able to drive an Opel Ampera off our pre-production line is a great accomplishment for the teams here and in Europe."
The Opel Ampera extended-range electric vehicle delivers up to 60 kilometers of pure electric driving before an engine-generator kicks in to sustain the battery charge and seamlessly extend the range to more than 500 kilometers. The battery can be charged by plugging the vehicle's on-board charge system into a standard household outlet. It is scheduled to go on sale end 2011.
Apr 22, 2010
Largest gathering of Tesla Roadsters ever
Roadster owners are a fascinating group of people with varied backgrounds and great stories to tell. I’ve had the pleasure of getting to know many of them over the past year delivering cars from our Menlo Park store. After rejoining our headquarters Customer Service team, it’s the daily interaction with our owners I miss most. When asked to help host the March 21st Road Rally for local customers, I didn’t hesitate.
We kicked off the event at the Tesla Store Menlo Park. Once everyone had assembled in the parking lot and enjoyed some coffee and snacks, we had a quick drivers’ meeting and were off. Up Sand Hill Road we went, passing some of the very VCs whose investments made these cars possible in the first place. We hopped on Highway 280, where Roadsters are becoming a familiar sight, then took the 92 towards the coast. Highway 92 is made for the Roadster – its a fun little twisty road that courses over Crystal Springs Reservoir and up into the coastal hills which greet the Pacific fog each evening. From the crest, we made our way down into the sleepy hamlet of Half Moon Bay. We cruised down the coast as the morning fog dissipated, exposing some of the best scenery the Pacific has to offer. After a dozen breathtaking miles on PCH, we stopped at Pomponio State Beach to line up the Roadsters for their photo shoot.
As we pulled in, I tallied up the Roadsters. There were thirty customer cars and four cars from our company fleet. A few of our earliest customers were there touting odometers that read over 20,000 miles. I was driving Validation Prototype 11 which had the highest mileage of any Roadster present, with roughly 67,000 miles on the odometer. Not bad for a car just over two years old! Leading the pack was our beloved VIN 750, the car we watched drive across the country to Detroit for NAIAS in January.
In the parking lot of Pomponio State Beach, we checked out the cars (a great opportunity to see color combos and customizations), and owners traded stories of how they came to be Roadster Owners. We took a group photo to commemorate the largest rally of Roadsters to date (beat that, LA!).
We were able to keep a tight grouping as we motored back up the hills to Skyline Boulevard, the famous ribbon of blacktop running along the hilltop crest of the peninsula south of San Francisco. This crossroads is home to Alice’s Restaurant, a local favorite for anyone who likes to tackle twisty roads on two or four wheels. This was the site of some of our earliest test drives, so this hilltop intersection is certainly a special place for Tesla. As we piled up for the stop sign, we could see restaurant patrons pouring out to have a look and give us a wave. While Roadsters may have become a regular sight in the Bay Area, seeing 34 of them in a row is certainly a spectacle!
After we slid down the hill and made our way into Palo Alto, we pulled into the parking lot of our new Headquarters where lunch was waiting. Since most of the building is still a hardhat zone while we prepare to build electric powertrain components, we ate in the sunshine, discussing the merits of solar power, electric drive, and the special feeling of being a member of the Roadster Owner Community.
I can’t think of a better way of spending a Sunday morning with a Roadster. If you can, let us know, we’re listening.
We kicked off the event at the Tesla Store Menlo Park. Once everyone had assembled in the parking lot and enjoyed some coffee and snacks, we had a quick drivers’ meeting and were off. Up Sand Hill Road we went, passing some of the very VCs whose investments made these cars possible in the first place. We hopped on Highway 280, where Roadsters are becoming a familiar sight, then took the 92 towards the coast. Highway 92 is made for the Roadster – its a fun little twisty road that courses over Crystal Springs Reservoir and up into the coastal hills which greet the Pacific fog each evening. From the crest, we made our way down into the sleepy hamlet of Half Moon Bay. We cruised down the coast as the morning fog dissipated, exposing some of the best scenery the Pacific has to offer. After a dozen breathtaking miles on PCH, we stopped at Pomponio State Beach to line up the Roadsters for their photo shoot.
As we pulled in, I tallied up the Roadsters. There were thirty customer cars and four cars from our company fleet. A few of our earliest customers were there touting odometers that read over 20,000 miles. I was driving Validation Prototype 11 which had the highest mileage of any Roadster present, with roughly 67,000 miles on the odometer. Not bad for a car just over two years old! Leading the pack was our beloved VIN 750, the car we watched drive across the country to Detroit for NAIAS in January.
In the parking lot of Pomponio State Beach, we checked out the cars (a great opportunity to see color combos and customizations), and owners traded stories of how they came to be Roadster Owners. We took a group photo to commemorate the largest rally of Roadsters to date (beat that, LA!).
We were able to keep a tight grouping as we motored back up the hills to Skyline Boulevard, the famous ribbon of blacktop running along the hilltop crest of the peninsula south of San Francisco. This crossroads is home to Alice’s Restaurant, a local favorite for anyone who likes to tackle twisty roads on two or four wheels. This was the site of some of our earliest test drives, so this hilltop intersection is certainly a special place for Tesla. As we piled up for the stop sign, we could see restaurant patrons pouring out to have a look and give us a wave. While Roadsters may have become a regular sight in the Bay Area, seeing 34 of them in a row is certainly a spectacle!
After we slid down the hill and made our way into Palo Alto, we pulled into the parking lot of our new Headquarters where lunch was waiting. Since most of the building is still a hardhat zone while we prepare to build electric powertrain components, we ate in the sunshine, discussing the merits of solar power, electric drive, and the special feeling of being a member of the Roadster Owner Community.
I can’t think of a better way of spending a Sunday morning with a Roadster. If you can, let us know, we’re listening.
Apr 6, 2010
Progressive design for the Audi R15 TDI
Audi wants to surprise the spectators at this year's 24-hour race at Le Mans (France) with a progressive design: the Audi Design Team created a fresh outfit for the innovative diesel race sports car that bears all the hallmarks of "pleasure in efficiency."
Whereas silver was the dominant color of the Audi R15 TDI last year, the 2010 model boasts a radical new design that features more red. In addition, large areas of the Le Mans race sports car that is internally designated as "R15 plus" will be kept in a purist black carbon-fiber look.
"We're happy that we were allowed to give the car such a progressive look," say Markus Auerbach and Tobias Drews from the Audi Design Team. "We wanted to add a dash of surprise when the Audi leaves the pits at Le Mans. We practically opened up the bodywork and are exposing the light-weight construction and its uncompromising technical development - and with a little rock 'n' roll for good measure."
The Audi R15 TDI sporting its new design will make its debut at the Le Castellet 8 Hours on April 11. Audi Sport Team Joest will contest the 2010 season opener of the Le Mans Series in preparation for the Le Mans (France) 24 Hours on June 12/13. Another test race is planned at the 1000-kilometer race at Spa-Francorchamps (Belgium).
"The race at Le Castellet comes at a very early point in time for us and is nothing but a test in racing conditions," stresses Ralf Jüttner, Technical Director of Audi Sport Team Joest. "Even though it's a difficult logistical undertaking, we wanted to gather experiences with the R15 plus at a race as early as possible. Le Castellet offers the opportunity to do this."
The 2010 version of the Audi R15 TDI completed a roll-out at the Audi test track in Neustadt at the beginning of March. The prototype was subsequently flown to the USA for initial tests which primarily featured aerodynamics trials. A five-day endurance test followed at Sebring (Florida) at which about 5 500 kilometers were reeled off without any technical problems worth mentioning.
In Europe, the final set-up work with a view toward Le Mans is on the agenda. Further track tests will now be followed by the first run in a race at which the result will be of secondary importance for Audi though. "Le Castellet will strictly be about gathering additional experience with the R15 plus," emphasizes Head of Audi Motorsport Dr. Wolfgang Ullrich. "Racing conditions simply can't be simulated in normal track tests; that's why we're contesting a race at such an early stage."
It is planned to field the R15 plus with chassis number 202. Audi Sport Team Joest has nominated Dindo Capello (Italy), Tom Kristensen (Denmark) and Allan McNish (Scotland) as drivers. "However, we will only decide whether all three drivers will actually race at short notice," says Dr. Wolfgang Ullrich.
Since Audi has performed several endurance tests for the Le Mans 24 Hours at Le Castellet in recent years, the team and drivers are intimately familiar with the circuit in southern France.
Audi, by the way, has very good memories of its most recent racing commitment at Le Castellet: in 1995, Frank Biela won the Touring Car World Cup there in the Audi A4 quattro against strong rivals.
The schedule at Le Castellet
Friday, April 9
12:40–13:40 hrs free practice 1
16:10–17:10 hrs free practice 2
Saturday, April 10
09:45–10:45 hrs free practice 3
13:40–14:00 hrs qualifying (GT vehicles)
14:10–14:30 hrs qualifying (prototypes)
Sunday, April 11
08:20–08:40 hrs warm-up
11:00–19:00 hrs race
Whereas silver was the dominant color of the Audi R15 TDI last year, the 2010 model boasts a radical new design that features more red. In addition, large areas of the Le Mans race sports car that is internally designated as "R15 plus" will be kept in a purist black carbon-fiber look.
"We're happy that we were allowed to give the car such a progressive look," say Markus Auerbach and Tobias Drews from the Audi Design Team. "We wanted to add a dash of surprise when the Audi leaves the pits at Le Mans. We practically opened up the bodywork and are exposing the light-weight construction and its uncompromising technical development - and with a little rock 'n' roll for good measure."
The Audi R15 TDI sporting its new design will make its debut at the Le Castellet 8 Hours on April 11. Audi Sport Team Joest will contest the 2010 season opener of the Le Mans Series in preparation for the Le Mans (France) 24 Hours on June 12/13. Another test race is planned at the 1000-kilometer race at Spa-Francorchamps (Belgium).
"The race at Le Castellet comes at a very early point in time for us and is nothing but a test in racing conditions," stresses Ralf Jüttner, Technical Director of Audi Sport Team Joest. "Even though it's a difficult logistical undertaking, we wanted to gather experiences with the R15 plus at a race as early as possible. Le Castellet offers the opportunity to do this."
The 2010 version of the Audi R15 TDI completed a roll-out at the Audi test track in Neustadt at the beginning of March. The prototype was subsequently flown to the USA for initial tests which primarily featured aerodynamics trials. A five-day endurance test followed at Sebring (Florida) at which about 5 500 kilometers were reeled off without any technical problems worth mentioning.
In Europe, the final set-up work with a view toward Le Mans is on the agenda. Further track tests will now be followed by the first run in a race at which the result will be of secondary importance for Audi though. "Le Castellet will strictly be about gathering additional experience with the R15 plus," emphasizes Head of Audi Motorsport Dr. Wolfgang Ullrich. "Racing conditions simply can't be simulated in normal track tests; that's why we're contesting a race at such an early stage."
It is planned to field the R15 plus with chassis number 202. Audi Sport Team Joest has nominated Dindo Capello (Italy), Tom Kristensen (Denmark) and Allan McNish (Scotland) as drivers. "However, we will only decide whether all three drivers will actually race at short notice," says Dr. Wolfgang Ullrich.
Since Audi has performed several endurance tests for the Le Mans 24 Hours at Le Castellet in recent years, the team and drivers are intimately familiar with the circuit in southern France.
Audi, by the way, has very good memories of its most recent racing commitment at Le Castellet: in 1995, Frank Biela won the Touring Car World Cup there in the Audi A4 quattro against strong rivals.
The schedule at Le Castellet
Friday, April 9
12:40–13:40 hrs free practice 1
16:10–17:10 hrs free practice 2
Saturday, April 10
09:45–10:45 hrs free practice 3
13:40–14:00 hrs qualifying (GT vehicles)
14:10–14:30 hrs qualifying (prototypes)
Sunday, April 11
08:20–08:40 hrs warm-up
11:00–19:00 hrs race
Apr 2, 2010
CODA Automotive Battery Joint Venture Secures $394 Million of Committed Capital for Expansion
California-based electric car and battery company CODA Automotive announced today that together with its joint venture partner, Lishen Power Battery, it has secured $394 million of committed capital. Lishen is one of the world’s largest manufacturers of lithium ion cells and a key battery supplier to industry leading companies such as Apple, Motorola, Samsung and Vodafone. The capital will enable the company to rapidly industrialize the all-electric CODA car’s power system for commercial volume production and support its ability to mass manufacture transportation and utility power storage battery systems.
The joint venture has secured $100 million in committed equity capital and has received a commitment for a $294 million line of credit from the Bank of Tianjin Joint-Stock Co., Ltd.
“This capital strengthens the strategic position of our joint venture and allows us to meet the rising global demand for automotive-grade lithium-ion battery and utility power storage systems,” said Kevin Czinger, President and CEO, CODA Automotive. “The U.S. and China face tremendous security and environmental challenges that we intend to address by combining our complementary capabilities and skills. This joint venture will accelerate the adoption of new energy technology while creating jobs in the U.S. and abroad.”
CODA Automotive is slated to begin deliveries of its zero tailpipe emissions, all-electric car in the fourth quarter of this year. The company is headquartered in Santa Monica, California and anticipates that it can deliver more than 14,000 vehicles to customers in California by the end of 2011. To date, CODA has raised in excess of $100 million in capital. Through its joint venture, CODA Automotive plans to establish battery manufacturing capacity in the U.S.
The joint venture has secured $100 million in committed equity capital and has received a commitment for a $294 million line of credit from the Bank of Tianjin Joint-Stock Co., Ltd.
“This capital strengthens the strategic position of our joint venture and allows us to meet the rising global demand for automotive-grade lithium-ion battery and utility power storage systems,” said Kevin Czinger, President and CEO, CODA Automotive. “The U.S. and China face tremendous security and environmental challenges that we intend to address by combining our complementary capabilities and skills. This joint venture will accelerate the adoption of new energy technology while creating jobs in the U.S. and abroad.”
CODA Automotive is slated to begin deliveries of its zero tailpipe emissions, all-electric car in the fourth quarter of this year. The company is headquartered in Santa Monica, California and anticipates that it can deliver more than 14,000 vehicles to customers in California by the end of 2011. To date, CODA has raised in excess of $100 million in capital. Through its joint venture, CODA Automotive plans to establish battery manufacturing capacity in the U.S.
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