Paul Tan's Automotive Industry News

VIDEO: 400 meter slot car track in a W212 Mercedes-Benz E-Class Estate

W212 Estate

Mercedes-Benz decided to showcase its new E-Class Estate’s interior capacity by building a 400 meter long slot car track inside it. A publicity stunt no doubt but still makes an interesting watch. Look for the video after the jump.

Click here to read the rest of VIDEO: 400 meter slot car track in a W212 Mercedes-Benz E-Class Estate

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Annual vehicle inspection for road tax renewal implementation start date not set yet for now

MITI has posted a statement on its new MITI blog clarifying a few points in the NAP Review, specifically the end-of-life policy and the annual inspection for road tax renewal. Hopefully this will clear some of your doubts on the exact timelines of certain things to be implemented.

Firstly, I think the most feared part of the review for all of us is the announcement of an impending vehicle end-of-life policy. There have been plenty of comments from readers on how this policy will negatively affect them and their qualify of life. I particularly like this story about the old atuk who drives a Pajero diesel to his surau.

MITI has revealed that the government has not set a Vehicle End-of-Life Policy in stone yet. It has merely announced intentions to develop one, and they (Ministry of Transport who are in charge of developing the policy) claim they will take into consideration views of all parties through consultations with consumer associations and NGOs. There is no mention which associations and NGOs these are, but I sure hope they fight for us. I hope we end up with a reasonable end of life policy with the option of extending your vehicle lifespan at a cost, similiar to the act of buying a new COE for your car in Singapore.

Though the NAP review document seemed to lead us to believe 2010 is the start point of our yearly Puspakom nightmares, MITI has clarified that a start date for the annual vehicle inspection for road tax renewal has not been fixed yet, so it will not be 1st January 2010. An effective date will be announced later.

In the statement, MITI Secretary General Tan Sri Abdul Rahman Mamat said the whole idea of the annual inspection was to ensure vehicles over 15 years of age are safe and roadworthy. He compared the inspection to the current rule where commercial vehicles have to go for an inspection every time their road tax is due for renewal. Commercial vans, pick-ups, 4X4s and etc are currently charged between RM50 to RM70 for inspections, and RM25 for reinspections.

So all in all, the NAP has given no allowance for a drop in car prices except at the higher end of the market, and that is only if the manufacturers decide to take up the carrots offered, but that looks a little unlikely at this point of time. Even the premium boys have set up shop in Thailand – did you know some CBU BMWs come from BMW’s Thailand plant in Rayong?

We will now lose the option to use good condition used parts for our cars, have to spend extra cash on annual car inspections, and finally the big bang is face the possibility of a reduced fuel subsidy once the Mykad subsidy system is implemented, together with high car prices. That wraps up what the NAP Review 2009 and Budget 2010 is all about for the common motorist.

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NAP Review: 15 year old car annual inspection precursor to full Vehicle End of Life Policy

Under Section E Part VI of the NAP Review, the government revealed that it would be implementing a full Vehicle End of Life policy which would come in stages. A roadmap will be formulated by the Ministry of Transport to lay out the steps towards the scrap policy implementation, but the first step is already here – a mandatory yearly inspection for cars older than 15 years in order to get their road tax renewed. Why 15 years? Could that be the vehicle age that they are looking at to enforce scrapping in the future?

According to the NAP review, Malaysia currently has 2.7 million cars on the road that are 10 years or older and the country has a very low vehicle scrap rate and a relatively high average vehicle age. With so many people having to go for 7 to 9 year loans to buy their vehicles, is this really a surprise that after suffering financial burden for so long, you would want to reap the benefit of your transportation longer?

There are currently a few situations where we go to Puspakom for their dreaded tests. It is an open secret what kind of environment that place is. A friend of mine had his tint test failed repeatedly even though his car windscreen was clear and had absolutely no tint. He argued that he should not be failed and somehow he ended up passing but with some rubber parts of his car damaged. When my E30 was sent for an ownership change inspection (B5 test), it came back with a broken glovebox latch and all the rubber trim around the door utterly raped.

If you are a straight shooter the only cash you will have to pay during these annual road tax inspections are the Puspakom fees itself. Right now there are two tests for private motorcars – the transfer of ownership test and a voluntary test which most of the time is not really voluntary – you may need certificates from these tests to renew your insurance these days. The ownership transfer test involves checking your vehicle identity (chassis and engine), chassis frame condition, and tinted glass. The voluntary inspection checks more stuff – identity, above carriage, emissions, brakes, suspension, side slip, speedometer, headlamps, undercarriage and tinted glass.

The voluntary test goes for RM50 (according to this Puspakom pricelist) and the transfer test costs RM30. So you can expect this annual inspection for road tax renewal to probably cost around these prices as well.

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Juicy details about Proton’s future plans revealed

ProtonThe Edge as always has a very interesting and revealing interview with Proton’s managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir. The ex-Perodua man has been at Proton’s helm for about 4 years now and I think most of us agree that under his leadership Proton has taken a turn for the better.

Here are some key points in the story:

  • Chinese automaker Youngman’s Europestar brand is building a new car, engineered by Lotus. It uses components carried over from the GEN2. Lotus is being paid about US$20 million for the work, and Proton also gets licensing for this new car’s platform once it rolls out. This could be the car we saw yesterday.
  • Proton’s new model investments will be in core models. Models with lower volumes such as a Perdana replacement will be through collaborations. There is no sense in spending half a million ringgit investing in a Perdana when it will not get the kind of sales the Saga (5.5k to 6k) and Persona (3.5k to 4k) currently gets.
  • The Campro’s lifecycle will end in 2014, after of which a new engine will replace it. Proton is currently looking at two different options, but are still looking at other OEMs. They hope to decide where the new engine will come from by next year.
  • Proton will be consolidating its plants to Tanjung Malim in 3 years time. The Shah Alam plant’s land can be utilised better than its current use as it is appreciating in price now. A sale to Sime Darby?
  • The Waja replacement model will be coming next year. The Perdana will come in 2011. We will get an all-new global model to replace the Persona in 2012. That would mean the Persona will be replaced after a 5 year lifecycle (well, it’s longer actually if you consider the Persona a GEN2). Proton plans to continue a typical Japanese 5 year lifecycle for all its products, but this could go to 7 years (like premium conti lifecycles) at most.
  • The new 2012 Persona replacement model will be styled by an Italian company instead of Proton’s design team led by Azlan Othman.

Read the full interview here.

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Kamui Kobayashi: next Schumacher from Japan?

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If you were able to catch the final two rounds of the 2009 Formula 1 World Championship then you should be familiar with a Japanese driver by the name of Kamui Kobayashi. Kobayashi has been serving as the third driver at Toyota’s Formula 1 outfit since November 2007, after replacing Franck Montagny. The Toyota F1 driver is also competing in the GP2 series which is another feeder series for Formula 1.

Kobayashi’s non-testing driving role in the Toyota F1 team actually started at this year’s Japanese Grand Prix when he replaced Timo Glock for the first two practice sessions, following Glock’s health-related issues. Glock then had a crash during qualifying and did not compete in the race the next day.

Glock’s health advisers then recommended the German not to take part in the remaining two races of the season. Glock’s misfortune was a blessing for Kobayashi as he was then summoned to race in Brazil and in last weekend’s Abu Dhabi Grand Prix. In his first qualifying session, he managed to secure 11th place although his team mate Jarno Trulli was fourth fastest.

During the race at the Interlagos track in Sao Paulo, he drove a clean race most of the time and spectators started to notice more of him when the Japanese driver performed some gutsy wheel to wheel racing with his competitors on track.

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Kobayashi successfully defended against championship contenders Jenson Button from Brawn and Sebastian Vettel from Red Bull during race. Button even labeled the Japanese driver ‘crazy’. The highlight of his race debut was the battle he had with fellow Japanese driver Kazuki Nakajima from Williams. Kobayashi was exiting the pits following a routine pit stop and came out right in front of the Williams driver.

Kobayashi was so determined not to give the position away that Nakajima hit the back of Kobayashi’s car and subsequently lost front wing and eventually hit a tire barrier at Turn 4. Kobayashi managed to finish in ninth place, just a place away from a point finish.

At the season finale Abu Dhabi Grand Prix, he managed to qualify in 12th place and it was later revealed that he did so with a very heavy fuel load. During the race, he was running based on a one stop strategy. He started to shine when everyone else who were running on two stop strategies made their first pit stops. With a lighter car, Kobayashi was charging forward and even made a successful, sensational pass on newly-crowned World Champion Jenson Button.

Although he had a lighter car underneath him, Kobayashi’s aggressive driving style and raw talent were evident. He kept his nose clean through out the race and managed to cross the finish line in sixth place and earned three valuable points. He even finished ahead of his more experienced team mate Jarno Trulli.

I have been following Formula 1 for the past decade and only a handful of drivers managed to push me to the edge of my seat with ballsy moves while being able to keep on racing till the checkered flag is waived. Those few include Michael Schumacher, Mika Hakkinen as well as Fernando Alonso. I must admit that Kobayashi is looking good to be included in that list. With just two races, he has quickly became the talk of town. Furthermore, it is very likely that he will be named as one of the 2010 drivers for Toyota.

I hope he manages to secure a race seat as I would love to see him more in action. Its about time that Japan gets its first Formula 1 World Champion. Recent Formula 1 drivers from the Land of Rising Sun have failed to really shine, but that may change with Kobayashi. So will he be considered as the next Schumacher from Japan? Judging from his performance so far, my answer is: Most likely!

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Europestar develops own styling for GEN2

Proton Rover 75

The sohu source seems quite certain that this is a Proton/Europestar car. One possibility that I can think of is this could be a Chinese market only car that Proton, Lotus and Europestar are working on together.

UPDATE: Thanks to all readers that pointed this out – this is a restyled Proton GEN2 for Europestar. More updates later – Source

Click here to read the rest of Europestar develops own styling for GEN2

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Import of used parts to end June 2011

The hot topic for last week was the new National Automotive Policy Review, a so-called ‘facelift’ for the National Automotive Policy that was first born on the 22nd of March 2006.

The NAP review is a disappointing one, with the prices of cars to be pretty much the status quo for a long time to come. In fact, the prices of hybrid cars are sure to go up once the 50% excise duty rebate ends. But there are parts of the NAP that have significant negative impact on us as motorists, one of which is the announcement that the import of used parts will be prohibited from June 2011 onwards.

Car companies and parts manufacturers do not survive on just selling you your car, which is a sum of parts from various OEMs. They also earn a significant portion from the sale of replacement parts, which you will inevitably need as parts are not designed to last forever. Not sure if the word greedy is justifiable but sometimes these new parts can be priced quite exhorbitantly. Which means used parts are very popular and are pretty much key to the sustainability and/or viability of keeping an old car running.

Banning the imports of used parts and the halfcuts which contain them would mean if your City’s CVT transmission dies, you are unable to source a good condition used one from a Honda Fit Aria halfcut that had been scrapped in Japan due to the country’s scrap policies. It means that when my Proton Perdana transmission finally dies and is beyond a refurbishment, a used one sourced from a Mitsubishi Eterna will not be an option – I will have to buy a 2nd hand Proton one or a NEW one, which I probably will not be able to afford as I am not the Perak or Terengganu Mentri Besar(s).

Of course, these situations will not happen right after June 2011 as there is bound to be existing stock in the country, but that will run out sooner or later. And then what? We cannibalise each other’s cars for used parts, whether willingly (scrap) or not (theft)?

And then there is the total disregard for the livelihoods of the chop shop businesses which have been run for decades and suddenly have their main source of income taken away from them. I visited a few chop shops and interviewed their owners over the weekend, curious to see how they were reacting to this piece of bad news.

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One chop shop did not even know that such an announcement had been made. Danny of Soon Loi Sdn Bhd in Batu 11 1/2 Cheras said that he had been unaware that the government was planning such a thing and he and his wife was clearly in shock. I felt really bad watching their reaction. At first they were talking normally and keeping their cool but after awhile you could see they were quite emotional about it.

Their chop shop is a family business and has been running since the 70s. Danny is now the 2nd generation, taking over from his parents. He said chop shops have been around since before he was born and did not understand why the government suddenly wanted to stop the import of used parts.

The government’s justifications for this move are ’safety and environmental’ concerns. From my view I see it more as yet another way to discourage us from using our old and hardy classics, instead driving us to buy new budget cars instead of that RM20k Toyota Corolla AE101 which alot of people are much more comfortable driving as a daily driver than a new car. The common sentiment is that old cars tend to last longer and have better plastics than new cars today and in many cases I find that to be true.

According to Danny, the parts in his stock consist of over 80% overseas imports and only about 20% local parts. I asked him what was he going to do when the new rule is implemented. He said he could not do anything but to look for local cars to ‘cut’ instead of getting halfcuts from overseas.

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From a consumer perspective this means certain ‘upgrades’ such as fitting a Cortina 4-speed with a 5-speed manual from a Ford Sierra would be impossible as the Sierra was never really sold here. From the chop shop owner’s perspective, business will be A LOT tougher than usual. To quote his wife’s exact words, “Mati loh!”

I tried looking for a more premium chop shop and found Happy Auto Parts in Sungai Besi which specialises in continental parts. This is near the Auto Bavaria Sungai Besi showroom. There were plenty of BMW E34 front clips there, and there was even an E39 pre-facelift front clip. The owner CM Tan also operates a workshop in the same premise so at least he has something to fall back on when his chop shop business runs dry. Being a specialist BMW used parts center, 100% of his inventory are from overseas.

CM Tan says that the business of a chop shop is not easy to do. You have to build your relationship with your overseas suppliers over a long time – this can be years and years. According to Tan, sometimes even when you find some good cars to be clipped, it doesn’t mean the overseas supplier will sell them to you. There are so many chop shops from so many countries fighting for these cars.

You also need to have a trained sharp eye to judge what cars are suitable to be clipped and he claims that with the 1 week warranty that most used parts have, the return rate for a lemon clip can be so high that you can potentially even lose money on it, or just break even.

He likened the government’s new rule to telling medical students that have given their life to training to be a doctor for many many years that they suddenly are banned from practicing medicine. He has been in this business all his life, what else can he do?

It’s really quite unfair, when you consider that in another segment of the industry, Open AP holders have gotten hints of the system being scrapped for many years now. Only when this NAP review was released have the government somewhat put their foot down and said the system will be terminated by 31st December 2015.

That’s over 5 years of lead time for them on top of the many ‘hints’ that they’ve been getting for quite sometime now, and the RM10k per AP to be charged from 2010 onwards was to go to a special Entrepreneurship Fund that will help these ex-Open AP holders diversify into other businesses.

So much lead time for these Open AP holders to move on to other things, and so much help for them to start new businesses (on top of the money they’ve been earning from the APs so far), but on the other side of the spectrum, used parts dealers only get less than 2 years! I asked both CM Tan and Danny what they would be doing now that they’ve learned about the news – would they bring in more inventory so that stocks would last longer while they figure out what to do with their lives?

They feel it is hard for them to make a decision like that as the government and/or relevant ministry has not released any hard details on how and when exactly this used parts import ban would take place.

It remains a small paragraph in a long document for now, but one that will cause them sleepless nights until the picture is made clearer for them.

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Prices for Volkswagen Passat CC and Scirocco officially unveiled; both cars in showrooms

my-scirocco

Two new Volkswagen cars have been added to the Volkswagen Malaysia range – the Passat CC and the Scirocco. The Passat CC is available at the showroom today, while the Scirocco is said to be at all showrooms next week onwards.

The following are the launch prices:

  • Volkswagen Scirocco 2.0 TSI – RM243,888
  • Volkswagen Passat CC – RM239,888

my-passat-cc

The Passat CC’s price is a bump up from the Passat’s RM228,888.00 pricetag. The Passat CC has a 200 PS 2.0 liter TSI engine with turbocharging and direct injection but it does not use a DSG gearbox. Instead like the Tiguan it is mated to a 6-speed Tiptronic slushbox automatic. It is based on the Passat platform but with a sportier roofline (think of MB E-Class versus CLS-Class), and is 50mm lower to the ground and 30mm longer. If you need a little more in terms of looks, you can get an Abt kit.

Features are generous – 6 airbags, ABS, traction control, stability control, ISOFIX seat points, and adaptive chassis control which adjusts the suspension damping and power steering assistance characteristics to suit the driving pattern.

Look after the jump for e-brochures for both cars.

Click here to read the rest of Prices for Volkswagen Passat CC and Scirocco officially unveiled; both cars in showrooms

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Naza Picanto: latest facelift now in Malaysia

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This is the new Naza Picanto, just launched by Naza Kia Sdn Bhd a few days ago at The Curve. Yes, this is the CKD Picanto that was previously called the Naza Suria, but now the Suria name has been dropped and replaced by the Kia name, though the Naza badge remains. The Suria name was probably inspired by the Picanto’s Korean market name, which is the Kia Morning.

The most obvious change is of course the aesthetic update to the latest look that has been available from Kia internationally. With the latest facelift in Korea, there were actually two different front ends available but Naza has picked the version with the rounded foglamps to sell here. There is another one with leaf-shaped look foglamps and funkier alloy wheels, probably some kind of special edition.

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On the inside, the interior has been updated with orange backlighting for the controls and meter cluster. The meter cluster is complete with an RPM meter but there is no water temp meter. The head unit provided is a 1-DIN design with USB support so you can read your MP3 files off a USB thumbdrive and do away with carrying CDs in your Picanto. The 1.1 liter engine revs up to 6k RPM and puts out a peak of 64 PS at 5,500rpm and 96Nm of torque at 2,800rpm. I like the fact that peak torque is made under 3,000rpm, which is usually the point an automatic car would shift gears if driven gently. But in any case acceleration from 0 to 100km/h will take a long 15.1 seconds.

In terms of safety, the front passenger and driver get two airbags – one each. The airbags are only available on the more expensive EX model. None of the models have ABS. There are four 3-point belts and a lap belt for the rear center. Wheels are 14 inch steels for the LS and 15 inch alloys for the EX, wrapped with 165/60R14 and 175/50R15 tyres respectively. The EX goes for RM46,800 while the LS goes for RM44,500. If you are in the market for one I’d recommend you just go for the EX since you get alloys and two airbags for a premium of RM2,300.

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Also note that the Picanto is basically the original car that the Hyundai i10 was based on, and the i10 is sold at a higher price of RM48,888 in Malaysia. But the i10 comes with ABS brakes and a 5-year warranty while from the Naza Kia website it appears the Picanto gets 2 years, though it looks like a (optional?) 2 year extended warranty program is also available. Also, the i10’s CKD packs come from India, while the Picanto’s CKD packs probably come from Korea.

Look after the jump for an E-Brochure and a gallery of the Picanto.

Click here to read the rest of Naza Picanto: latest facelift now in Malaysia

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First sketch of production Mitsubishi Compact Crossover based on the Concept-cX

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Click for enlarged image

Mitsubishi has released a sketch of a new “Compact Crossover” based on the Mitsubishi Concept-cX concept car that it displayed two years ago. Mitsubishi claims it will be a game changer for it in the European market. They say they’ve been associated mostly with SUVs in the past, mostly thanks to the Pajero and now the Outlander. The new vehicle continues to have the same family look that they’re slapping on every car they have out there including the Colt, and will be the firm’s first ‘crossover’. The new car will go on sale in Japan from February 2010 onwards, and will make its European debut at the 2010 Geneva Motor Show.

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