Michael McAleer on what's happening in the industry
FORD AND LEXUS BITE THE TAX BULLET: Ford and Lexus have reacted to the Minister of Finance's decision to increase the rate of Vehicle Registration Tax to 30 per cent for cars over 1,900 cc. They say they will absorb the increase on some of their models. Ford has said it will absorb the tax increase on all 2-litre diesel models. In the case of a 2 litre 4-door Mondeo LX diesel this amounts to an effective saving of €1,877. The offer applies with immediate effect until stocks last.
Lexus Ireland has announced that it will hold the prices of its IS200 range for the first quarter of 2003 at the pre-Budget level and not pass on the VRT hike of €3,032 (entry model) until April. The fully equipped IS200 will therefore continue to cost €39,080.
LOTUS ELISE FOR US: Lotus, a unit of Malaysian carmaker Proton, plans to expand its presence in the US market with the launch of a new sports car next year. Lotus is reported to be preparing to introduce a special version of its Lotus Elise in the US in mid-2004. The Elise will have to be adapted to meet US regulations. Production of the current Lotus Esprit sports car will cease at the end of this year but a new Esprit model is likely to be launched in a few years' time.
NOT-SO-CHARMING PRINCE: Britain's Prince Charles has been accused of "hypocrisy" for making a passionate buy-British appeal after signing a deal with German car firm Audi. Details of the contracts emerged after the Prince said British schools, hospitals and the army should buy British. An Audi spokesman thought the "open-ended" lease deal, worth around £100,000 (€153,000), involved four cars.
FORD GOES A-HEAD-HUNTING: Ford is seeking a replacement for chief financial officer Allan Gilmour seven months after he came out of retirement to take the job, according to the Financial Times. Gilmour is likely to remain with the company in the short term to help groom a successor.
MITSUBISHI TO CONCENTRATE ON CARS: Mitsubishi Motors spun off its truck and bus operations into a new company on Monday to concentrate on making passenger cars and reducing debt. The new firm, Mitsubishi Fuso Truck and Bus, is a wholly owned subsidiary, but a major stake will later be sold to DaimlerChrysler.
CHINA'S CAR BOOM: Chine is set to continue its rapid growth in car sales this year. Sales topped one million last year for the first time. Already most major marques are involved in joint ventures with Chinese partners. Last week PSA Peugeot Citroën and joint venture partner Dongfeng Motors stated its ambitious aim to triple sales there by 2006 as new models are introduced.
AUDI SALES GROW WORLDWIDE: Audi says it sold a total 741,700 vehicles worldwide in 2002, 2.1 per cent more than in 2001. The figure represented a new record for the seventh consecutive year, according to the German marque. In western Europe, Audi's main market, the luxury car maker sold a total 549,800 cars last year, 0.3 per cent more than in 2001.