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Wednesday, April 29, 2009

Recall on China Market Toyota Camry - Defective Brakes





After being rocked by a series of tainted food and medicine scandals that has tarnished the image of Chinese products overseas, the Chinese government has since created a body called General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) as the people's custodian of health, safety, environment and quality.

Last week, Guangzhou Toyota (one of the two Toyota JV in China) is the first high profile car maker to experience first-hand of wrath of China's AQSIQ. Beginning last Friday, Guangzhou Toyota was indirectly "forced" by AQSIQ to recall 259,119 Camry models manufactured between March 2006 to March 2008. Read the figures again, that's over quarter of a million cars! More than half of total new vehicle sales in Malaysia in one year! The cost of the recall is estimated to between USD 117 million to USD 190 million.

The related faulty part is the car's brake vacuum pump, which may fail when operated at high temperature.

The drama started back in March 2nd. As a required by the new set of Chinese industrial regulation, manufacturers must report any known product defects. Guangzhou Toyota submitted a "Market-Technology-Service" report to the Defective Products Management Center of AQSIQ on March 2nd, stating that the company will change the defective brake vacuum pump free, for six months. The term "Market Technology Service" sounds very weird but it can be understood in general terms as a technical service bulletin or TSB, an internally circulated technical memo instructing service centers to do specific repairs on any affected models that comes in for their regular servicing.

Apparently AQSIQ is not satisfied with this and rightly so. Quarter of a million cars on the road with defective brakes and all the company is going to do is just to rely on the owners to voluntarily bring their cars back to the service centers at their next service appointment?

On April 21st, after observing the company's response (or a lack of it), AQSIQ went public on the Toyota Camry's defective brakes. Flooded with queries from concerned (and angry) owners, Guangzhou Toyota immediately applied for a product recall to AQSIQ on April 22nd. According to Chinese media circles, the AQSIQ have never gone public on such matters. Thus, it could be intepreted that this is AQSIQ way of saying "you can't just offer a free fix for six months and force the remaining customers to pay for the job. And we gave you one and a half month but nothing was done. We had to go public to get your attention. Obviously that worked well."

Guangzhou Toyota released the press statement below on the same day (please forgive the poor translation) :

Dear Friends from media:
近两天来,我们接到了一些媒体朋友就凯美瑞刹车真空助力泵问题的询问,在此对大家的关心表示衷心的感谢!同 时,也就相关问题和媒体朋友进行沟通。
In the pass 2 days, we received a lot of questions about the Camry's brake vacuum pump problem from the friends in the media field, thanks for all your concerns. We would like to take this opportunity to communicate with you regarding this issue.
凯美瑞刹车真空助力泵存在的问题主要体现在:在高气温或刹车使用频率高的极端使用情况下,真空助力泵内部的 配件可能产生变化,导致刹车踏板变硬、出现漏气异音、发动机故障灯亮等情况。出现这种情况时,要获得充分的 制动力,就需要比以前更大的刹车踏板踩踏力。
The main problem of Camry's brake vacuum pump is, when operated in high temperature or high frequency, some internal parts of the pump may fail, which results in a hard of brake pedal, abnormal noise or leakage, engine fault light to come on, etc. When the problem happens, if the driver needs enough braking force, he / she has to step the brake pedal with greater pressure than normal.
针对以上问题,我们在3月2日向国家质检总局缺陷产品管理中心递交了申请市场技术服务活动的报告。之所以申 请采用市场技术服务活动,而未采用召回的方式,是基于两点依据:
Concerned by this, we applied a Market-Technology-Service to the Defective Products Management Center, AQSIQ on March 2nd. The reason we used Market-Technology-Service instead of a recall is based on:
一是不良发生时有异音产生,可预见到异常并 能做出对策;
1. The driver can predict and properly handle the danger while he / she hears any abnormal noise.
二是最差状态时的制动力满足法定的制动力标准。
2. Even the worst braking power meets minimum braking force requirements
(Autoindustrie editor : that's the most ridiculous statement ever! I want my brakes to work at 100% performance, 100% of the time. Maybe Chinese drivers have different uses for brakes from myself.)
3月3日,我们收到国家质检总局缺陷产品管理中心的邮件答复,“关于此问题我中心需要组织专家进行缺陷调查 和判定,在结果确定之前,我中心不同意你们的技术服务活动”。在我们正在等待国家质检总局缺陷产品管理中心 的最终结果过程中,4月21日,我们突然看到媒体针对此事的报道,也第一次通过报道了解到国家质检总局缺陷 产品管理中心工作人员针对此事的表态,我们认为这应该代表了国家质检总局缺陷产品管理中心的意见。为尽快消 除凯美瑞用户的不安和焦虑情绪,本着对广大消费者高度负责的态度,经丰田汽车公司同意,我们于4月22日向 国家质检总局缺陷产品管理中心提出主动召回申请。
On March, 3rd. we received acknowlegement from AQSIQ, saying that they would do an investigation and judgement on the problem, but before that, they would not agree to our Market-Technology-Service application. While we were waiting for the final decision, on April 21st, we saw the reports on this problem from the media, and this is the first time that we understood AQSIQ's position on this issue. In order to address our customer's concern about this and to assume our responsibility under agreement with Toyota Co. We applied for a recall on these products to the Defective Products Management Center, AQSIQ. on April, 22nd.
目前,我们已经做好了全面的准备,并组织全国所有的广汽丰田销售店竭尽所能,力争用最短的时间为用户免费更 换真空助力泵。
Currently we are properly prepared , and we will organize all the distribution units, to change the brake vacuum pump for the customer free of charge.
广汽丰田汽车有限公司
Toyota (Guangzhou) Auto Co.Ltd.
2009年4月22日2009.4.22

This case highlights the importance of having a strong, independent consumer protection watch group. Many developing countries, including Malaysia, continue to rely on inadequate consumer tribunal court to sort such matters on a case by case basis. One can't rely on the industry to regulate itself and to do good, more so in the case of a powerful multi-national corporation operating in an environment with inadequate law and enforcement.


It is such a shame to see two different set of standards made by Toyota - one for a first world country like USA and another for a developing nation like China. In the late 80s Lexus, Toyota's luxury sub-brand was just launched in the United States, with Toyota's famed quality and reliability as its selling point. In 1990, a little more than a year after the LS400 was launched in USA, Toyota discovered two minor defects with the cars. It was clear that a recall had to be made. United States have very strict consumer protection laws, and there are even so-called "lemon car laws," which required manufacturers to buy back the vehicle from the customers if repeated efforts are not able to solve a reported defect.

Lexus approached the recall slightly differently from BMW or Mercedes-Benz, who will usually contact the owners via mails or press announcements. Instead, Lexus staff personally called up the owners explaining the problem and assured them the problem will be rectified once they send their cars to the service centers. When the cars were ready for collection, they were all washed and filled up with a full tank of fuel. Owners who lived faraway had Lexus technicians sent to them to do the repairs on their driveway.

In Malcolm Gladwell's book the Tipping Point, he points to this story as a pivotal point in turning Lexus into an automotive luxury powerhouse. Because the early group of customers were termed by the author as "mavens" of the automotive world, people whom friends go to for advice on cars. Lexus turned a problem into an opportunity. These people went against the common wisdom of buying a German luxury make. These are people who knows a good car when they see one, took a risk and looked beyond the Japanese badge, at a time when the idea of a Japanese luxury car is more like a joke. The maven's positive experience helped spread the word about Lexus. And within the social circle of these mavens, their opinions on cars carry more weight than any advertorials.

Of course one can argue that the number of vehicles affected were so small, it is easy to deal with them. But it also meant that they were quick to react and quick to decide that a problem should be nipped in the butt. After-all, isn't the Toyota Way about stopping a problem from being passed down to the next guy on the line? So how is this known defect, being allowed to propagate for 3 years is part of Toyota Way? Isn't Toyota known for their famed problem solving methodology and empowering employees to make decisions? But this is clearly not being practised here. I am sure there were many customer complaints prior to this and front line after-sales staff are well aware of these cases.

The Camry models referred here have no relation to the "Global Camry" models sold in USA or Japan or Middle East. This is the "Flagship Camry" sold in ASEAN grouping markets, China, Taiwan and in Australia as the Aurion. The faulty parts installed on the Chinese market cars are most likely to be sourced from a China plant and should not affect the cars sold outside of China.

Toyota Motor Corp has two joint-venture operations in China - Guangzhou Toyota which manufactures the Camry, and FAW-Toyota, which manufactures other remaining Toyota models in China including Reiz (Mark X), Corolla, Vios, Land Cruiser, Land Cruiser Prado and Prius.

Related Link
Product Recalls
2009 Camry Minor Change (Facelift) Launched in China

Wednesday, April 22, 2009

Piloti Racing shoes - that you can actually wear off the track




This would probably interest an idiot friend of mine, who on a recent hiking trip to the hills of Sapa in Vietnam, decided with his amazing sense of wisdom and logic to wear a pair of racing shoes instead of a conventional pair of sneakers.

I came across this California based company by the name Piloti who makes racing shoes that you can actually wear to work (provided you don't work in one of those stiffies financial services and law firms). Racing shoes that don't make you look like an out of place car geek or a wanabe. Internet orders are accepted.

Visit Piloti.com.

Tuesday, April 21, 2009

EV Porsche




So we know that a flat-four cylinder Porsche is in the plans. We also know that Porsche is seriously considering engine downsizing and greater use of forced induction to meet the current environmental concerns of those EU bureaucrats in Brussels. Interestingly, these EU politicians talk about CO2 reduction and addressing climate change, but take a look the official cars parked at the EU Parliament - you will see rows and rows of Bentleys, 7-series and S-class limousines.

Anyway, the reality is that Porsche is the largest sports car company by volume. That makes them an easy target for legislators. Being an independent sports car company (irrespective of the VW-Porsche merger, VW is already related to Porsche on historical grounds), they can't scale back their volume without affecting Porsche's business case.

Porsche needs to fight back and stay relevant in the future with alternative powertrains. The challenge is to do so without negatively affecting Porsche's core identity. Late last year, I remember reading an interview with the 911 Product-line Manager August Achleitner saying that an electric 911 is not a possible due to an obvious mismatch between the 911's iconic character and the characteristics of an EV. He is not talking in terms of driving dynamics, as electric motors produce ridiculously high torque so performance of electric cars is no longer an issue. Just look at Tesla! But Herr August is referring to more emotional elements like a unique exhaust note and the "feel" of a petrol internal combustion engine.

However within a span of less than 6 months Porsche seems to be singing a slightly different tune now. The company is rumoured to have taken a very serious interest in the electric Tesla Roadster. Also, in an interview with Australian GoAuto, the Managing Director of Porsche Cars Australia said,

“The harsh reality is that fossil fuels are going to run out one day and we will
still all want individual transport, so we have to look at alternatives. If you
want to be in business, you have to.

I can assure you at this point there are no plans to make an electric car. Those plans do not exist. What does exist … every car company and every development centre has a group of people who try to think 20 or 30 years into the future and do what they call pre-development, and those guys think of every possibility.

That is one of the key reasons for (Porsche’s) investment in the Volkswagen company, realising that developing new technologies like that is so immensely expensive that a small company like ours would be struggling to do that on its own.

The core technology is very expensive to develop and the synergies you
get with an investment like that (in VW) is a huge advantage for us."
On hybrid Porsches, he explained

"The principles for those sort of alternative systems are not important to our
customer – I don’t think our customer cares about the way the electric motor is
hooked to the petrol motor (in a hybrid) – but that mechanism needs to be
specifically Porsche. It’s more about what the characteristics are like in the
actual application of those systems.”

Actually, EV Porsches already exist. There are a number of EV specialists, especially in the Bay Area and state of California in the USA doing EV conversions for old 911s. In Germany, Porsche tuning specialist Ruf has already unveiled the EV Ruf Greenster concept in this year's Geneva Motor Show. This little green monster has an equivalent of 360bhp power but what is more amazing is the 950Nm of torque! Try beating that!



Image from Autoblog Green.

Being a manufacturer, Porsche will not be able to respond to such change as fast as an independent tuner. Ruf is just swooping in to fill in the void for niche EV sports cars. There is an increasing demand for EV sports cars, not for their environmental credentials but because being green is the new cool. This is especially true in state side, as reflected by the choice of cars for Hollywood celebrities.

EuroNCAP Controversies




EuroNCAP scores have become a frequently mentioned term among new car buyers. Since its inception more than 10 years ago, EuroNCAP has become a trusted household name when it comes to vehicle crash safety performance. However many are just casually dropping the EuroNCAP name in their everyday conversations without having any understanding on the test methodologies and what do these scores really mean.

To answer the usual questions above, EuroNCAP is an independent EU based vehicle safety advocacy group. It is made up and funded by various EU member country governments, motor insurance groups and the German AA club ADAC. Cars tested are usually purchased off the market. However some manufacturers do sponsor their vehicles but they will not be able to influence the test / publication of test results. Being an EU based organization, the cars tested are usually popular models sold in Europe. Cars which are not sold in Europe will not be tested, for obvious reasons. There will not be any EuroNCAP scores for a Toyota Camry, or even a Crown. Which is why it's rather annoying to hear some criticisms targetted at Proton's newly launched Exora, which the manufacturer claims should get a 4-star score. Some people, ignorant on EuroNCAP methods, were quick to jump to the conclusion that Proton could not obtain any actual results but instead just published an "estimated result." Advanced computer simulations are able to do fairly good predictions on the test results and since EuroNCAP's methodologies are made public, manufacturers can replicate the tests on their own.


There are some controversies surrounding EuroNCAP methodologies though. Some years ago some models were not awarded 5-stars but manufacturers commented that they should be awarded points for fitment of more sophisticated active safety devices like Brake Assist, Electronic Stability Control, Lane Departure warning system etc etc, which plays a crucial role in avoiding a crash in the first place.

It is only until this year did EuroNCAP decided to modify their points rating system. And this comes only after ESC is declared compulsory for all cars from 2012 onwards when the UNECE WP29 group adopted the Global Technical Regulation (GTR) on ESC. The UNECE (United Nations Economic Commission for Europe) laws are a legal requirement for all cars sold in Europe. EuroNCAP however is not a legal requirement.

Starting from 2009, ESC must be offered on at least 85% of all models sold to be considered for a complete 5-star score. So starting from March 2009, all car manufacturers can no longer use their existing EuroNCAP scores in any marketing materials.

To obtain 5-stars, cars need to score a minimum of 32.5 points (out of a maximum of 37 points). Additional points are given for seatbelt reminders (2 points), if this is extended to include rear seats 1 more point will be awarded but manufacturers are very hesitant to do this due to higher wiring cost. The Renault Grand Espace is one of the few cars to offer this feature. Other features considered include speed limiter warning, lane departure warning and Pre-Crash like functionalities. But because these features work very differently from model to model, it is difficult to agree on a standard test agreeable by all.

But EuroNCAP does not do any dynamic test evaluation. They just crash the cars. What good is a 5-star car if a 4-star model is able to steer away from a collision better, maintains better control, stops faster and avoided the crash in the first place? Also, not all ESC are created equal. Intervention points for ESC vary from model to model.

But the most serious problem related to this high emphasis on EuroNCAP scores is increasingly large A, B and C pillars, which results in a larger blind spot area for the driver. So now we are in a catch-22 situation where we modern cars that do better in a crash, but are harder to look out from. Common sense will tell you that the most important criteria in any vehicle safety measurements is visibility / driver's vision.

Australia's leading motor insurance company NRMA has conducted an independent study called "Driver Vision Index" to evaluate a car's driver visibility. The test is conducted using a laser pointing device and a dummy to represent an average adult size. The laser is aimed around forward facing 180 degrees of the vehicle's cabin. Thickness of each pillar is measured in degrees of rotation.

Many cars fared very poorly and the highest scores were obtained by the 6th generation VW Golf and Citroen C4 Picasso (4 stars each, out of maximum 5).

Results of some popular models are as below :
Honda Jazz : 2 star
Honda City : 1 star
Honda Civic : 2 star
Toyota Corolla : 3 star
Proton Gen2 : 2 star
Proton Persona : 2 star
Mazda 6 : 3 star
Toyota Aurion (ASEAN Camry) : 2 star
Honda Accord : 1 star
Go here for more results.


Manufacturers like Volvo have long knew this negative effect of EuroNCAP tests and the new S80 sedan comes with an optional Blind Spot Indication System (BLIS). In typical Scandinavian fashion, they do the necessary to preserve human lives and not wait for legislators to tell them what to do. They do live up to the Volvo For Life philosophy.

In short, EuroNCAP is not a be-all end-all authority when it comes to vehicle safety. A 3-star car can become a 5-star car with just some slight modification in the test methodologies. Likewise a 5-star car from 3 years ago can be demoted under the new test structure. But generally, EuroNCAP has done a lot in pushing for better vehicle safety.

Related Link :
The case of ESP and Corporate Social Responsibility

Monday, April 20, 2009

Chevy Cruze and the Korean Stigma




Prison Break star Wentworth Miller has been contracted by GM China as its ambassador for the new C-segment Chevy Cruze. Watch the TVC below.


The Cruze is expected to be launched in ASEAN markets by the second half of 2009, with Malaysia launch by July 2009. The Cruze will be up against C-segment dominating Civic and Corolla models. The Cruze's unique selling point is said to be its class leading 6-speed automatic transmission, one of the best interior layout and design and European handling. Pricing will be around RM1k less than an equivalent Civic 1.8. Early models are rumoured to be imported CBU from Korea but it is understood that domestic assembly is in the cards - either in Thailand or Malaysia.

Update : The Cruze (and Epica) was delayed due to conflicts between GM ASEAN and its local partner DRB-HICOM. However, GM-ASEAN has recently released a press statement, saying that plans will be resumed again this year.


Besides the Cruze, a D-segment Epica is also slated for launch later this year and is targetted at the Camry-Accord duoploy. But between the Cruze and Epica, the Cruze is expected to be a better commercial success. The Epica has not been very well received in most markets. In Australia, the Aussie Holden badged Epica is a Korean sourced replacement for the Holden Vectra, whose cost has creeped up over the years and can no longer be priced competitively. But Aussies resented the Epica, mainly due to its looks and a prejudice against its Korean origin.

It's easy to see why Aussies never warmed up to the Epica. Just look at the sharp looking Vectra that preceeded it!


The Cruze also has Korean origins but unlike earlier GM-DAT models, the Cruze is the first car to be completely developed under the supervision of GM. Previous Daewoo sourced GM models were either existing Daewoo models or are already well into advanced stages of their product development.

With the Cruze, GM was able to start on a clean sheet and leverage on its European arm's Opel resources. Which should be good news considering how good the new European market Insignia sedan and Corsa hatchback is. In fact, providing a European vehicle's handling feel is one of the key design brief given for the Cruze.

The Cruze is sold as a Daweoo Lacetti in South Korea while the Epica's equivalent is the Daewoo Tosca. The Chevy Captiva is also known Daewoo Winstorm. GM purchased Daewoo Auto Technology in the late 90s following the '97 Asian financial crisis.

It is a pity that some are put off by Korean origin in GM cars. But there is nothing particularly wrong with the cars. The problem is just branding.

To illustrate a point, how many people realise that the Asian Nissan Sentra / Sunny, Cefiro, Teana and Qashqai / Dualis were all Korean cars with a Japanese Nissan badge? That's right. All the cars above were developed by Samsung Motors, a subsidiary of the Renault-Nissan group.


Sentra = Samsung SM3


Cefiro = previous generation generation Samsung SM5


Teana = Samsung SM7


Qashqai / Dualis / Renault Koleos = Samsung QM5

Nissan never had much problems shifting these cars. The Asian Sentra was one of the market leaders in its segment, especially in Taiwan, Singapore and Malaysia. So is the Cefiro, which at one time was giving the Accord and Camry a real good run for their money. Not many knew about the Korean origins of these cars and owners perceived them to be Japanese cars, which is not entirely untrue but it is not entirely true either. It's designed and engineered by Koreans with Japanese (and later French) money.

Owners of these cars, maybe it's time to stop sniggering at other people for driving Korean cars. You are driving one yourself. And this is not a case a Daewoo rebadging Japanese cars. No these cars were developed entirely using Samsung Motors resources, funded by Renault-Nissan money, because Korean engineering costs are lower and they do come out with really good stuff if given the right resources.

Thursday, April 16, 2009

China to overtake Germany as VW's largest market.





Martin Winterkorn, CEO of Volkswagen AG has said that he expects China to overtake VW's domestic Germany home market as its largest market by the end of this year. In March, sales of VW Group branded cars (Volkswagen, Audi, Skoda) in China broke a new sales record by selling 112,466 cars, breaking the psychological 100,000 cars a month barrier.

VW's rapid rise in China car sales has a lot to do with the overall rise in China car sales, which for the third time in a row since January 2009, has exceeded vehicle sales in United States of America. The spurt in overall Chinese car sales comes after an economic stimulus package unveiled by the Chinese government early this year to boost consumer spending and also to encourage adoption of new and cleaner smaller capacity cars. The Chinese government has halved purchase taxes on cars with engine capacities less or equal to 1.6 liters. A 5-billion yuan subsidy package is also in the pipeline to boost vehicle sales in rural regions.

However, China's domestic car market boom seems more like an oasis in the desert of plunging car sales. China's car exports in Q1 2009 fell 62% from the corresponding quarter last year.

VW vehicles in China are made by its two joint venture partners; Shanghai Volkswagen and FAW-Volkswagen.

Related link :
China Is Officially The Largest Car Market In The World

Wednesday, April 15, 2009

Proton Exora - First Looks




For a comprehensive review, go to MTM. As with all new product launches, I will not repeat much of what veteran motoring journos have mentioned. On the surface level, I am very impressed with the latest effort by Proton.



There is a video posted by PaulTan.org. It is obviously taken from a sales training material and these are usually meant for internal use only. Not sure how he got it or whether Proton will be too pleased to see it being circulated. But as far as we are concerned, we have him to thank and take a look at it while you still can.

Take a look at the Avanza section at the 1 minute mark. Notice that the person in the video have to go over to the driver's side to open the tailgate. This is because the Avanza is the only model here that lacks a tailgate release handle. I remember this very well because there was once I had to do some house moving with the help of an Avanza. And boy was I cursing everytime I had to lug my boxes AND fumble with the keys in my pocket to open the driver's door and then deciding to either to do a balancing act with the heavy boxes and bend down to reach the tailgate release or hurt my back more by having to put the boxes on the ground, push to tailgate release lever, close the door, pick up the boxes again and move to the back of the car. Try repeating that in multiples of ten. How is it possible for a MPV, a utility use centric vehicle come without a tailgate release handle!

This blog has touched a bit on the Body Control Module (BCM, also known as Body Control Unit) in an earlier entry here. Contrary to the earlier speculation made, the Exora's BCM is actually sourced not from a Japanese supplier but from a German one, Siemens VDO. However, I need to point out that late last year Siemens VDO was sold to Continental AG, which was in turn was bought over by Schaeffler Grouppe early this year. An earlier post here has covered a bit on this ensuing drama.


Example of a Body Control Unit made by Continental Automotive (now owned by Schaeffler)

I am not sure if the senior management of Proton was thinking along the line as what I am seeing when they decided to push the standards / norms of what constitutes a "common specs" for a vehicle in this class or price range. The functions offered in the BCM is not even available in higher end luxury MPVs costing twice its price. Beyond the physical functions and reduction in wire harness complexity offered by the BCM, functions offered by the BCM allows the Exora to differentiate itself from its competitors beyond the conventional design elements.

Many auto industry analysts have been predicting that in the future, cars are going to look increasingly similar, due to greater cost pressures necessitating greater sharing of common parts with other models or even other vehicle makes. Also, increasingly tough crash safety and exhaust emission regulations meant that all crash safety engineers and aerodynamicists have to work within a small regulatory window. The end result is that cars of the future are going to look very similar.

The next level of product differentiation is expected to come from software enabled functions, like those offered in the Exora's BCM. The other types of differentiation will come from electronic human-vehicle interface. Physical differentiation is going to become even more costly in the future and may only be reserved for high end luxury models. As cross-branding becomes more common, compact / minicars will have to rely on things like a different chassis tuning, electronic engine management mapping, integrated Sat-Nav, climate control, entertainment and communication modules to differentiate themselves. We are starting to see such trends happening in saturated markets like Western Europe and Japan. Think of Toyota-PSA collaboration in Europe, Nissan-Suzuki-Mazda OEM arrangement in Japan and a similar Mitsubishi-PSA's CUV agreement in Europe.


I appreciate that a small bag hook is provided at the front passenger area. Most cars only offer them at the rear, below the headrest which doesn't really make sense when you consider how most of us deal with take-away foods. But I would much prefer the "slide-in and slide-out" type offered in Toyota models. I cringe at the thought how these pointy hooks will affect occupants in the event of a bad crash.


Speaking of crash, Proton has mentioned that it has benchmark their passive safety performance against EuroNCAP standards, and it is expect to perform to a 4-stars level (out of a maximum of 5). We would not know the actual EuroNCAP scores as though it is often cited by consumers, EuroNCAP is actually not a legal requirement in Europe or any other country. It is an independent body funded by the German AA (ADAC) and European insurance companies and cars are selected based on their availability in Europe. So unless the Exora is sold widely in Europe there will not be any official EuroNCAP results.

Assuming that the EuroNCAP standards mentioned by Proton are of the latest ESC and Pedestrian Protection Directive 2, 4-stars is the maximum scores the Exora can obtain as far as crash safety performance is concerned. The last 5th star can only be awarded to cars that are fitted with ESC (electronic stability control) on at least "85% of models sold." EuroNCAP considers ESC to be the most important safety feature after seatbelts, far more important than airbags which many misguided consumers seem to think as very important.

The dramatic roll-over crash shown in the image above, I would much rather have Proton offer me an ESC function that avoids such a crash in the first place, rather than telling me how strong is the body. I rather avoid a crash than to be in one in the first place. More on why I think ESC must be fitted as standard.

Related link :
Proton Exora MPV - it flashes under hard braking
Stupid Rich Chinese Drivers
The case of ESP and Corporate Social Responsibility

Double Decker Diffusers are legal



A follow-up from an earlier entry here. Yes the double decker diffusers are deemed legal by the FIA's International Court of Appeal. Good. Let's the get the legal bullshit out of the way and back to real racing on the track. We have already seen 2 motorsports court room dramas after just 2 races, it's more than enough for the fans.

I find the two images below quite amusing. Ross Brawn, team principal of Brawn GP is just strolling casually to the court while Pat Symonds, technical director at Renault F1's team is lugging stacks and stacks of documents to support their case.


Images from F1-Live.

Some interesting comments from F1 personalities on the whole diffuser drama :
"It would be possible to have something done to our car by the first race in Europe. But in order to find the other two or three tenths necessary to put us on a par with the three cars carrying what I believed to be an illegal diffuser will require a substantial reworking of the rear of the car. Ironically, the three would have had a much easier job converting the other way,"
Pat Symonds of Renault F1.
"What some did in nine months cannot be done by others in nine weeks. Our sporting spirit tells us: 'it is time to get to work, we accept the challenge' but we are going to need some time,"
Nobert Haug of Mercedes Motorsports.
"Only a person of supreme arrogance would think he is right when so many of his esteemed colleagues would disagree...Anyone with a command of English will tell you it’s a hole, so do not let someone attempting to be clever with words defeat the express purpose of the rules,"
Nigel Tozzi, Ferrari F1's lawyer on Ross Brawn's insistence that his designs are legal.

Monday, April 13, 2009

The Triple Ds - Double Decker Diffuser





We are just hours away from the showdown between Renault, BMW and Red Bull, Ferrari vs Williams, Toyota and Brawn GP on the controversial rear diffuser design. Without going too much into complicated mathematics and the physics of fluid and aerodynamics, the images below are a simple illustration of the areas under dispute.
Illustrations by F1-live.

Williams-Toyota's design.



Toyota F1's design

Brawn GP


They all feature a variation of an additional opening that is said to allow a greater volume of airflow into the rear diffuser, thus generating higher downforce pressure.

The simple summary of designing a good F1 car is that it is a game of exploiting the loopholes in the governing body FIA's regulations. The rule books will only say what you can't do. It doesn't say what you can do. Thus, Formula One has always been a game of interpreting the regulations to your advantage of building a faster car.

Now the issue with DDDs are slightly more complicated because it sits on a very grey area. Ross Brawn has previously mentioned that he is absolutely sure the diffusers are within regulation, but for obvious reason he can't reveal how do they work until the FIA appeal hearing.

Whatever it the outcome is, I am not too concerned about whether DDDs are legal or not. My own gripe in this whole issue is that as a motorsport enthusiast and a paying spectator, I want to see racing. Real wheel to wheel racing fought out on the track, not in the court room! Bring back the sort of driving between Gilles Villenueve and Rene Arnoux in Dijon at '79 or Nigel Mansell and the late Aryton Senna in Jerez of '86.




If the diffusers are approved for use then why bend under pressure mid-season, after some low performing teams grumble that they are not as fast as the winning cars? What does this say about the FIA's technical director's ability to discern what is within the rules and what is not?

Results of the Australian GP is already a joke. First Trulli was awarded a 3rd place finish, then he was stripped of his points after some idiot by the name of Hamilton tried to be funny with FIA and reported that Trulli overtook under safety car lap. And then FIA realised they were duped and reinstated his points. Fans are fed-up of race results being announced in the court room rather at the finish line.

If the DDDs were ruled illegal what happens to the race results in Australia and Malaysia? In the old days, this is not an issue as mid-season testing was allowed. FIA banned mid season testing in an effort to contain spiraling up cost. But this has almost no effect in keeping a lid on F1 competition cost as teams merely spent their money elsewhere to shave off that few more miliseconds off their lap time.

Tuesday, April 7, 2009

VW-Porsche 914 Celebrates Anniversary




Today, Porsche AG sent out a press release on the 914's 40th anniversary. I thought that's a bit odd, given that the 914 is a slightly controversial topic among Porsche's corporate circles. The 914 had a very difficult gestation period and Porsche bosses at one time tried to kill the project but was unable to do so due to historical reasons. To understand how Porsche quietly steered clear away from the 914, one only needs to look at the Boxster launch back in the 90s. Porsches have always been very proud of their heritage, well most of it at least. In almost every major new Porsche model launch, especially 911s, there will always be mention about their spiritual predecessors. When Porsche started going to hybrids, they were quick to point back to the 1900 Lohner-Porsche with 4 electric wheel hubs. But there wasn't any mention of the 914 in the Boxster's press materials. It was Porsche fans who pointed out that the 914 was the spiritual predecessor of a modern Boxster.

Among Porsche-philes, the 914 is a bit of an unloved child. Many don't see it as a true Porsche due to its link with VW. Think of it as Porsche's equivalent of the unloved Dino 246GT among Ferrari circles. I can understand the arguments against the Dino, but I am not so sure about the 914. A certain fat British bloke once said that he considers Ferraris as scaled down versions of God while all Porsche 911 are jumped-up Volkswagen Beetle.



Read more on Porsche's press release VW-Porsche 914 Celebrates Anniversary.

There can only be one reason for Porsche to do so. A flat-four cylinder Porsche is coming! Either in a sub-Boxster model or a flat-four engine entry level Boxster, or even both. The 914 is the only flat-four engined Porsche in history.

It's a sign of times - I am referring to both economic and environmental context. Maybe finally, the 914 got the vindication it so deserved all this while. It took Porsche 40 years to recognise this unloved baby. There should no longer be any issue with the VW link now that Porsche owns 50.8% of VW, according to their financial report as of 31-March 2009.




For more info the next generation 988 series Boxster and Cayman, go here.

Related link
Porsche - upcoming future models (2009 - 2012)

Monday, April 6, 2009

Civic Hybrid CKD Thailand and Prius Malaysia launch




There have been some rumours circulating among the Thai automotive press that Honda Automobile Thailand is considering to domestically assemble the Civic Hybrid under the Thailand Eco-Car incentive drawn up by the Thai Board of Investment (BOI).

Currently, the only countries in the ASEAN region that sells the Civic Hybrid are Malaysia and Singapore. In Malaysia, the fully imported from Japan (Suzuka plant) Civic Hybrid sells at a very attractive RM129,980 - exactly the same as a domestically assembled (in Pegoh, Melaka) Civic 2.0S. But Honda does not expect a lot of interest in the Civic Hybrid for now, as it has set a lowly 300 units per year sales target. In Singapore, the Civic Hybrid retails at SGD79,200, just like a Civic 2.0, but Singaporean hybrid buyers are entitled a tax rebate of 40 percent of the Open Market Value of the car which can be used to offset the Additional Registration Fee (ARF). But like Malaysia, response to the car has been lukewarm. Unlike markets like Europe or USA, environmental consciousness is not really an in thing in developing markets in the ASEAN grouping, not even in the developed island state of Singapore.

If a CKD Civic Hybrid does materialise, prices might drop even further.

Besides lower car prices, under the Eco-Car plan, car manufacturers are entitled of a corporate income tax exemption of 8 years, regardless of the projects location in the country, along with duty-free importation of machinery. On top of that, the Thai Finance Ministry is also offering a 17% excise tax rate on eco-cars that have engines smaller than 1,300cc for petrol engines and 1,400cc for diesel engines (current excise tax rate is between 30%-50% for normal passenger cars).

The requirements of the Thai Board of Investment Eco-Car plan are :
1. Minimum investment value of approximately US$ 144 million
2. Actual production capacity must not be lower than 100,000 units per year from the fifth year of the projects operation.
3. Fuel economy rating of not over 5 litres per 100 kilometers (unspecified test methodology).
4. Comply to at least EU4 emission standard with CO2 emission below 120g/km.
5. Comply to UNECE Reg. 94 and Reg. 95 frontal and side impact crash safety standards.

US market LHD model shown.
Meanwhile, the Malaysian distributor of Toyota and Lexus vehicles UMW Toyota Motor has confirmed in an interview with NST CBT that the 3rd generation Prius will be launched in Malaysia by the second half of this year. Word has it that initially the car was planned to be launched in the KL International Motor Show 2009, but like the British Motor Show, KLIMS was canned as a result of the gloomy car market. KLIMS 2009 was initially planned to be held between June and July. So expect the launch date to be not far away from those dates.

EV mode is previously not available on US market models (standard on EU and Japan models) due to litigation concerns. Eco-mode and Power-mode alters the electronic throttle mapping for optimal fuel economy vs performance trade-off, and it is self explanatory which does which. Roof-top mounted solar panels are used to cool down the cabin and reduce load on the electric motor driven air-conditioner (not available as standard item in all markets).

Under the new 2009 budget, hybrid cars imported into Malaysia are entitled of exemption from the 100% excise duty and 50% import duty, but it is only applicable to petrol-electric hybrid vehicles whose internal combustion engine is below 2000cc. The exemption however is not indefinites, and will only last for two years, after which the government expects local assembly operations of such cars. Whatever that means. I am not sure how is UMW Toyota interpreting the last part of the sentence. It is obviously not practical to begin local assembly of such niche market low volume vehicles.


Prices can be estimated by looking at the range of retail prices of the Prius in other countries. In Singapore, the second generation Prius retails at SGD76,988. In comparison, a Corolla Altis 1.8 retails at SGD68,988 while a Camry 2.0 starts at SGD 82,988. There have been no news yet in Singapore regarding introduction of the 3rd generation Prius.

Thursday, April 2, 2009

EVs - the great leveller for the auto industry?




In the latest development on the deal between Dutch based Detroit Electric and Malaysian car maker Proton, Detroit Electric has appointed Proton as a contract assembler for Detroit Electric and vehicle platform donor for its own EVs.
The link between Detroit Electric and various other partners is a little complicated. The new EV maker upstart is cobbled together by British national Albert Lam with US Bay area based EV maker Zap and China based truck and bus maker Youngman Automobile as its initial strategic partners. Proton is an OEM vehicle supplier for Youngman Automobile, which sells rebadged Proton models in China under the Youngman-Lotus brand. And of course, Lotus is owned by Proton.


EVs are starting to look like a great leveller for the industry. Easily half of all vehicle manufacturers' income is derived from after-sales - maintenance and parts. An average car has between 50,000 to 80,000 parts depending on model. In an EV, things are much less complicated. The only main moving parts are the electric motor and transmission. In some cases, a transmission is not even necessary due to the high torque nature of electric motors. So how does a car company survives with a product that requires almost zero maintenance other than tire replacement and maybe the occasional software updates, which can be done online? So do you see why car companies are so reluctant to push for EVs, other than wowing the public every once in a while with their fancy eco-friendly concepts. We have the technology to build EVs since the 1990s. And the cost required to build / adapt the necessary infrastructure to support EVs is not really that high when you consider how much it costs to explore, drill, refine and transport fossil fuel. The whole talk about EVs pushing pollution from the car to power plants is just based on bad science and is a non-issue to start first. Electricity can be generated by various ways, not just from fossil fuel and secondly, electricity cannot be stored like water. Most of the power generated in the night goes unused anyway.
Contrary to popular perception, mechanical parts are the ones that wear out and need regular maintenance. Non-moving parts like electronic components rarely go wrong. The perception of unreliable electronic vehicle components have more to do with the way automotive electronic components are developed, integrated and tested with the rest of the car. The aviation industry relies a lot of aviation electronics and nobody questions the reliability of these electronic components. Probably due to its mainly mechanical background and lack of project management best practices adopted by the aviation industry, automotive electronics tend to be unreliable in the real world.

Also, EVs are easier to build in many sense. There are less high precision engineered mechanical parts. EVs in contrast have a lot less individual parts. To build one EV is a far more simpler affair than building a conventional car. The reason EVs are finding hard to break into the market place is due to negative consumer perception and a lack of experience in terms of vehicle manufacturing control and management, vehicle financing and marketing channels and also the highly complicated regulation compliance around the world and the biggest hurdle of all - the energy supply infrastructure.

This reminds me of the comments made by founder and chairman Chinese car maker BYD,
Wang Chuanfu. Early this year, BYD beat Toyota and GM by launching the F3DM model, the world's first plug-in hybrid vehicle. BYD's achievement went unnoticed by many, mainly due to the poor perception towards Chinese cars. But many don't realise that BYD is also the second largest producer of lithium-ion batteries, thus giving them a strong comparative advantage in the new EV push.

It's BYD F3DM uses a more advanced development of lithium-ion batteries, lithium iron phosphate (LiFePO4) battery. Think about it this way, other car makers rely on battery makers to help them develop EVs. BYD has full control over the intellectual property rights to the battery design and power control electronics and software. To put it into perspective, can you imagine if Honda or Toyota relies completely on someone else to come out with the next engine design for them? But this is what is happening to many established car makers - their EVs designs are only as good as their battery partner allows them to. Also, remember that one of the world's richest man Warren Buffett poured money into this Chinese company via his MidAmerican Energy Holdings Co. Maybe he realises something most people don't. People are more likely to laugh or poke fun at BYD's Western rip-off designs.




Yes the car is a rip-off from the front a Corolla (USDM /Altis model sold in Asia outside Japan) and the rear of a Honda City. But fact remains that this is the world's first production plug-in hybrid car. I take it as BYD sucks at designing and building cars - but they do know their EVs very well, if not better than the big boys like GM or Toyota.


Wang likens the established car industry as the Swiss watch and EVs as cheap digital watches. Referring to BYD's EV push, he was once quoted saying
"Anyone can design and produce digital watches, but it's virtually impossible for a newcomer to match the precision of a Swiss wristwatch."
This explains why BYD's strategy to break into the car industry is very much hinged on wider adoption of EVs.

There is a slow tide of change sweeping quietly under the industry. Players are forming new JV and strategic alliances to a future increasingly dominated by EVs.


Conventional automotive part suppliers are slowly adapting themselves to the new paradigm. Bosch, the world's largest automotive parts supplier have established a JV with Samsung SDI to create SB LiMotive. The challenge for them is to quickly established an accepted "architecture / platform / standard" for hybrid and EV electronics and batteries. Their "implied goal" is to tip the control of the industry's EV development more to towards the suppliers rather than the OEMs.  

Fellow German rival, Continental is also increasing their stakes in Enax, a Japanese specialist in EV batteries. The first result of this partnership was the world's first lithium-ion battery on a production car - in the Mercedes S400 BlueHybrid.

Tata too, is teaming up with Canadian EV battery specialist Electrovaya, whose proprietary Lithium-Ion SuperPolymer battery is said to offer the highest energy density in the industry. Tata is looking to a launch an EV version of the Indica Vista hatch in the EV friendly Norway by late 2009, with large scale production to start in 2010.

Wednesday, April 1, 2009

Proton Exora Undisguised Images



The following set of pictures of the Proton Exora MPV were received from an anonymous reader, with no further information. Official launch will be on 15-April 2009.





These are not the first set of undisguised images that I have come across but the one thing that I am curious to know of is why are there two different front grille design? The set of photos below are supposedly pre-production models. Note the different front grille.


These should be the same model grade as both sets of pictures show the same wheel designs, body coloured mirrors and door handles plus front fog lamps, which suggest this to be a high-end "Hi-line" model.


Both the Avanza and the Grand Livina will no doubt face a lot of heat from the Exora. The Avanza is the oldest of the lot, with rather crude interiors. It's unique selling point is now down to its low price 1.3-litre version and the public favourite T-badge. However, contrary to popular perception, the Avanza is actually a Daihatsu developed model (Xenia) mainly for the developing Indonesian market, but the local Toyota distributor fought hard and managed convince TMC group to sell the model locally as a Toyota rather than a Perodua (Daihatsu's local JV partner). You can tell whether a Toyota badged model is a Toyota developed product by simply looking at its engine bay - if the trademark VVT-i badge is stamped on the engine block it is a Toyota developed model. If it's a VVT-i sticker it's a Daihatsu OEM sourced product with a Daihatsu engine.

Salesman of both makes will go into overdrive claiming the Exora will suffer from high fuel consumption and long term engine durability due the small 1.6-litre CamPro CPS engine and the Exora's high kerb weight, which by the way is the heaviest of the lot.

Fair point, but neither the Toyota or the Nissan is the final word in real world fuel economy anyway. Plus, Nissan salesman are quick to claim that the Livina shares the same engine as the Latio / Tiida hatch and sedan sold all over the world. But they seem to conveniently ignore the fact that the 1.6-litre Livina does not have the CVTC variable valve timing feature available in the 1.6-litre Latio.

Anyway fuel economy is more dependent on your right foot than anything else. Best is to try the vehicle for yourself, though I highly doubt that 80% of the potential buyers who are really in the market for an affordable MPV are put off by the engine performance.

On a macro industry level, I wonder if this signals a "Game Over" for non-national makes in the MPV segment, especially when you consider the fact that Perodua too will be launching a locally rebadged version of the Daihatsu Sirion Luminas (Toyota Passo Sette). Foreign car makers have been very patient with the Malaysian government's flip-flop long term policy for the Malaysian car industry and they are not going to sit around very much longer. Budget models like the Avanza and Vios is one of the main reason TMC poured so much investment in Malaysia, including building of a metal stamping plant.

The slightly higher end MPV segment are one of the few segments that non-national makes can compete "fairly" in. With the protectionist measures continue to be imposed and a diminishing market opportunity for these foreign makes, many of these companies will just pack-up and leave for Thailand. It is interesting to note that despite the many political coup that troubles Thailand, it does not seem to affect the confidence of many carmakers who continue to pour in money to Thailand. The thing about Thailand is that although their government may change, their macro policies don't. In contrast, Malaysia have gone through a lot less Prime Ministers in the same period of time, but yet is unable to properly follow through one consistent policy. Aren't APs supposed to be phased out? But we all know what happens after a group of politically groups started making some noises.

Related link
Proton Exora MPV - it flashes under hard braking