It’s tough being an independent automaker; just ask Saab. Although Aston Martin has weathered the storm far better since going it alone, it’s still finding things rather tough in the high-end luxury segment.

One major issue, according to some industry analysts, is having to rely on a single, aging platform for new models. The current crop of Astons (aside from the pint-size, Toyota Aygo/Scion iQ derrived Cygnet and One-77 Supercar), including the four-door Rapide and Vantage coupe, are all based on the same architecture that originally underpinned the 2003 DB9.

While luxury rivals, including Mercedes-Benz and BMW are heavily investing in new research and development ,as well as developing new vehicle platforms and propulsion systems, Aston Martin is having to squeeze every last drop out of the technology and resources it currently has, which means that yet more cars are likely to be built off the same aluminum DB9 chassis, in addition to the new £330,000 ($540,880) Zagato (shown).

Unlike other luxury car makers, the Gaydon concern simply cannot produce any ‘cost no object’ flagship models, purely as prestige exercises. ”All the projects that we are doing have to make a profit, we can’t afford a project that is just a marketing tool,” CEO Ulrich Bez declared during a recent press conference at Aston’s HQ in Warwickshire, UK.

That said, smart moves by the company, including reliance on engines supplied by Ford Motor Company as well as recycling technology, has resulted in Aston Martin being able to produce vehicles with much higher profit margins (around 20 percent) compared than some of the bigger automakers, like Mercedes-Benz, whose  margin on high-end vehicles is often around half that.

This focus on maximizing resources has also put Aston Martin in relatively good financial stead; in June, the company managed to raise some £304 million ($499 million) by selling high-yield bonds, allowing it to pursue future projects as well as expanding into new markets, such as China. An initial public offering of shares is also probably on the horizon which would raise further capital, though CEO Bez says that the idea of an IPO will only be explored when the company sees the “right window.”

So while it might not have the latest in terms of architecture or technology, Aston Martin is proving that in some respects, small can be beautiful (and highly profitable) when it comes to building bespoke luxury cars. And if it’s able to pour a good deal of that profit into new projects and technological developments, then the future is arguably looking very bright for one of the UK’s most famous car makers.

[Source: Automotive News]

German auto giant BMW wants to become a bigger giant, as it looks to expand its annual production volume from 1.5-million vehicles/year to 2-million vehicles by 2020.

Herbert Diess, BMW’s board member in charge of purchasing said in a recent interview that this expansion will come by the way of reducing purchasing costs, while keeping a keen eye on quality. BMW has already cut its annual parts purchasing costs by $5.5-billion, but thanks to good quality parts, their warranty costs have also decreased. Currently, BMW spends $37-billion on parts purchasing alone. Diess says this number will grow with the increase in production numbers.

Diess also said that the type of purchasing will also change. Engines with fewer cylinders are becoming more popular and the electrification of the auto industry is only going to grow over the coming years. To prepare itself for this change, BMW is starting their own sub-brand called “i” which will cater to electric and hybrid vehicles.

The industry is also changing its preferences in materials. Instead of steel, more and more parts are being made from lighter aluminum, and soon carbon-fiber will become available on normal cars, not just high-end exotics.

In order to move forward with its plan, China is an important factor, as 75% of the foreign purchasing BMW does is with the Chinese. America is another benefactor, as the new X3 will also be produced in Spartanburg, South Carolina.

[Source: Automotive News]

Given the current financial struggles plaguing many of the European Union member states, legislators are paying closer attention to aid granted for various programs. In the case of Germany, EU investigators have opened a probe regarding state funding supplied to automakers BMW and Volkswagen.

The former concerns aid of some EUR 46 million, granted to BMW for investment in its Leipzig, Saxony manufacturing facility (shown) where the company plans to produce Electric Vehicles.

In the case of Volkswagen, a grant of some EUR 83.7 million aimed at that company’s manufacturing facility in Zwickau, is under scrutiny.

In an official line from Brussels, the European Commission has stated, in relation to the funding that it “has doubts whether Germany’s suggestions for the definition of the relevant market… can be accepted.”

[Source: Just Auto]

Albeit just barely. After having languished in the number 38 spot since 2010, thanks to corporate earnings, the General was able to beat out Bank of America Corp, by some $1.4 million in profit to secure its place once again on the Top 20 World’s Largest Corporations list.

However, despite the news, there are those that say GM still has a long way to go to regain its former prominence. As for other automakers, the General’s cross-town rival, Ford Motor Company is ranked number 25 on the list, down two places from last year.

By contrast, Japanese juggernaut Toyota is ranked number 9 on the same list, also making it the top automaker, according to Fortune Magazine. Volkswagen is the only other automaker int he Top 20, placing 13th overall.

As for the top spot? It belongs to none other than Walmart, which raked in revenue of some $421.85 million. For a full rundown of the top 20 list, click on the link below:

[Source: CNN Money]

Since it was sold by Ford Motor Company to a group of private investors back in 2007, Aston Martin has been looking at new avenues for opportunities and growth. Among them, has been the recent expansion into the city car market with the Toyota iQ based Cygnet, as well as strategies to cater to buyers in new and emerging markets.

In particular, Aston Martin is looking towards China as a major center for potential growth. Although the company’s chief commercial officer Michael Van Der Sande said that Aston “came very late to the party in China,”  the firm is making up for lost ground. It expects to sell a few hundred cars in that country this year, through a network of some 14 independent dealers. “We are taking it [China] much more seriously,” he says.

Aston has also been able to raise some £304 million(approximately $486.4 million) to help re-finance outstanding debt, which includes a £200 million  bank loan and £30 million dividend; it also posted earnings of some £97.8 million on revenue of £509.1 million ($814.4 million) in the year ending March 31, 2011, a period which also saw it deliver some 4,299 cars world wide.

Although at present, the company is under no pressure to raise further cash by instigate an Initial Public Offering for shares, Aston Martin CEO Dr. Ulrich Betz has said the idea is being considered. “We will be ready for it if the time is right. You need to pick the right window,” he stated during a recent press conference at the firm’s manufacturing facility in Gaydon, Warwickshire, UK.

[Source: Bloomberg]

Saab‘s parent, Swedish Automobile (formerly Spyker Cars), announced that an unnamed Chinese company will purchase 582 Saab cars at a total value of 13 million Euros ($18.4 million) in order to help the automaker pay wages to its employees and part of the money it owes to suppliers.

“I am pleased to announce this agreement, as it secures part of the necessary short-term funding for Saab Automobile and allows us to pay our employee’s wages before the end of this month,” declared Swedish Automobile CEO Victor Muller.

However, with suppliers facing prospects of only getting 10 percent of what they are owed in the short term, there have been calls for Saab to file for voluntary bankruptcy, the European association of automotive suppliers CLEPA, stating this is the only option in order to allow employees to obtain state aid.

In addition, Saab is still struggling to raise money via leasing and by-back of its real estate. According to an official release by Saab Automobiles, Russian businessman Vladimir Antonov is still very much interested in pour money into the ailing automaker, but was awaiting clearance from the Swedish National Debt Office.

Swedish real estate company Hemfosa, was on Saturday, preparing to buy and lease back Saab’s factory in Trollhattan, to help ease the company’s debt , though the deal still hinged on participation from the European Investment Bank as well as Chinese companies Pang Da and Youngman.

Nevertheless these ‘pending’ agreements have done little to quell fears about Saab’s longer term viability, particularly among CLEPA members. The organization’s CEO Lars Holmqvist believes that the Swedish government’s slow response to intervene with the Saab situation and the automaker’s low volume production, along with what he see as ‘pathetic’ last ditched attempts to secure funding, are only postponing the inevitable.

[Source: WSJ]

Given its recent financial performance and the fact that that GM’s CEO isn’t happy about the situation, nor the time it’s taking to re-structure Vauxhall/Opel; rumors have been flying once again that the General’s European operations might be up for sale.

However, during a recent phone conversation between Dan Akerson and Opel boss Karl-Fredrich Strake, the former assured the latter that GM isn’t in talks to sell Opel.

Nevertheless, speculation, particularly in the German media continues, with reports that GM is ‘reviewing options’ for its European unit, with possibly Volkswagen AG and Bejing Automotive Industry Holding Co being named as potential buyers.

German Chancellor Angela Merkel and local labor groups have asked GM to go on the record and comment on the rumors that Opel might be for sale, though so far, the automaker has declined.

[Source: Automotive News]

Still struggling in the wake of the March 11 earthquake and tsunami in Japan, which severely disrupted production, Toyota Motor Co has said that it expects it’s full-year profit for 2011 to fall some 31 percent short of original projections.

Net income is expected to decline to some 280 billion yen ($3.5 billion) for the 12 month period ending in March, versus income of some 480 billion yen ($6 billion) for the same period a year earlier. Global vehicle sales are predicted to shrink to some 7.24 million units, versus 7.31 million last year. A strengthening yen is also eating into the company’s revenue.

Nevertheless, Toyota is trying to be optimistic about the future. In Tokyo today, the company’s Chief Financial Officer, Satoshi Ozawa, said “Toyota will do it’s best to recover from the delays in delivery.”

However, there still remain some significant obstacles on the way to recovery. The high value of the yen, almost reaching post World War II levels, is making Japanese industry less competitive against South Korean and European rivals; not helping matters is the fact that  Toyota boasts a greater ratio of vehicle manufacturing in Japan than it’s main competitors such as Honda and Nissan.

[Source: Automotive News]

Although it’s currently the largest market for auto sales in the world, China’s voracious appetite for automobiles looks likely to slow in the coming months, according to the China Association of Automobile Manufacturers.

In 2009, the country’s auto sales grew by a whopping 46 percent, allowing it surpass the U.S. as the largest automobile market for the first time in history. Last year, sales were also robust, China witnessing a further 33 percent increase, to a total of 13.76 million passenger cars, fueled by government incentives.

However, that red hot growth may be set to taper off; the Chinese government has said that it will shortly announce new measures designed to curtail car congestion, including a decision by Beijing to significantly reduce the number of vehicle registrations it will issue for capital city residents (approximately 240,000, down from 750,000 last year), other major cities in China are set to follow Beijing’s lead.

Other factors that are likely to contribute to a cooling off in vehicle sales, include a higher purchase tax on cars with small displacement engines (which currently account for around 69 percent of total auto sales in China), along with scaling back excess capacity production and new policies designed to promote the development of more fuel efficient and alternative energy vehicles.

[Source: The Wall Street Journal]

It has styled some of the most memorable cars in history, including scores of Ferraris, but more recently the famed design house Pininfarina, has fallen on hard times. It’s been up for sale for several months, though now, might have a potential buyer, in the shape of Bejing Automotive Industry Corp (BAIC).

Fueling the speculation that BAIC is in the process of a serious bid for Pininfarina, are quotes from a Chinese website (ee0.com) which said that an unnamed BAIC executive recently returned from Italy where he was in discussion with Pininfarina regarding collaboration on a new car based on the Saab 9-3.

BAIC currently owns the tooling, intellectual property and powertrain technology from the current Saab 9-3, which it purchased from General Motors and is already working on several new cars based on this platform, a new Pininfarina styled 9-3 could be one of them. If such a car does indeed materialize, it will probably make its debut at the 2011 Beijing Auto Show.

However, besides BAIC, that same media website (eeo.com), also reported that other Chinese firms, Anhui Jiangling and Brilliance, have also expressed interest in acquiring Pininfarina, along with India’s Mahindra and Canada’s Magna International. It’ll be interesting to see what happens.

[Source: Inside Line]