COMPANY NEWS IN BRIEF
COMPANY NEWS IN BRIEF

COMPANY NEWS IN BRIEF

Phillepus Uusiku
Volkswagen expects autonomous cars on market

The chief executive of Volkswagen, the world's largest vehicle maker by sales, expects autonomous vehicles to be ready for sale between 2025 and 2030, he told a magazine.

Herbert Diess cited the improving performance of computer chips needed in autonomous cars while developments in artificial intelligence are also speeding the process.

"It is foreseeable that the systems will soon be able to master even the complex situations of autonomous driving," Diess told the Wirtschaftswoche weekly magazine.

Diess defected from BMW in 2015 and has helped Volkswagen to reform after its diesel scandal with a 73 billion euro (US$87 billion) electric vehicle investment plan. - Nampa/Reuters

Kia recalls 295 000 US vehicles for fire risks

The Korean automaker said the recall covers some 2012-2013 model year Sorento, 2012-2015 Forte and Forte Koup, 2011-2013 Optima Hybrid, 2014-2015 Soul, and 2012 Sportage vehicles because an engine compartment fire can occur while driving.

Dealers will inspect the engine compartment for fuel or oil leaks, perform an engine test and make any repairs including engine replacement, as necessary. Kia said it is currently developing a Knock Sensor Detection System software update.

Last week, Kia and affiliate Hyundai Motor Co agreed to a record US$210 million civil penalty after US auto safety regulators said they failed to recall 1.6 million vehicles for engine issues in a timely fashion.

The Korean automakers agreed to consent orders after the US National Highway Traffic Safety Administration (NHTSA) said the automakers inaccurately reported some information to the agency regarding the recalls.

Kia’s civil penalty totalled US$70 million, including an upfront payment of US$27 million, requirements to spend US$16 million on specified safety measures, and a potential US$27 million deferred penalty. - Nampa/Reuters

Nissan joins GM in exiting auto group

Japanese automaker Nissan Motor Co joined General Motors Co in exiting a group of automakers that had backed US President Donald Trump in his bid to prevent California from imposing its own vehicle emissions rules.

GM last week reversed course in an ongoing court fight and abandoned the outgoing Republican president, winning praise from Democratic President-elect Joe Biden, who takes office on Jan. 20.

“We are confident that productive conversations among the auto industry, the Biden administration and California can deliver a common-sense set of national standards that increases efficiency and meets the needs of American drivers,” Nissan said in a statement.

GM had joined Nissan, Toyota Motor Corp, Fiat Chrysler Automobiles NV and other automakers in October 2019 in support of Trump effort’s to bar California from setting its own fuel-efficiency rules, or zero-emission requirements, for vehicles separate from federal requirements.

Others still backing Trump include Mazda Motor Corp, Hyundai Motor, Kia Motors Corp Mitsubishi Motors Corp, Subaru Corp and the National Automobile Dealers Association. The industry still remained split on how to move forward after it held a meeting Tuesday. - Nampa/Reuters

Ford delays Bronco SUV launch

Ford Motor Co is delaying the launch of its Bronco SUV next year to the summer from the initial spring target due to coronavirus-related issues with its suppliers, a company spokesman said on Friday.

“Deliveries will begin the summer rather than the spring. That’s being driven by Covid-19 related challenges some of our suppliers are experiencing,” Ford spokesman Said Deep said.

The suppliers, which Ford did not identify, have had development work for tooling delayed by the pandemic, Deep said. Asked whether the launch could face further delays, Deep said Ford was monitoring the outbreak closely.

The pandemic caused the US auto industry to shutter plants for two months earlier in the year, but since production restarted automakers have been largely successful in preventing the spread of the virus within their facilities.

Ford still expects to begin building the Bronco at its Michigan Assembly Plant in Wayne, Michigan in the spring, Deep said. The Dearborn, Michigan-based company is already shipping the smaller Bronco Sport, which is built in Mexico. - Nampa/Reuters

Sinovac secures funding to boost production

China's Sinovac Biotech has secured US$515 million in funding from a local firm to double production capacity of its coronavirus vaccine, the companies said on Monday, as it expects efficacy data of its experimental shot this month.

The investment deal also comes as Sinovac expands supply deals and trials of its experimental Covid-19 vaccine CoronaVac with more countries following positive results from early to mid-stage clinical trials.

China's Sino Biopharmaceutical Limited said yesterday a business unit will invest US$515 million in Sinovac Life Sciences, a subsidiary of Sinovac, to help development and production of CoronaVac.

The investment will give Sino Biopharmaceutical a 15.03% interest in Sinovac Life Sciences, Sino Biopharmaceutical said in a filing to the Hong Kong Stock Exchange.

Sinovac said in a separate statement that it would be able to manufacture 300 million vaccine doses annually and aims to complete construction of a second production facility by the end of 2020 to increase annual Covid-19 vaccine production capacity to 600 million doses. - Nampa/Reuters

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