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Ford, GM still doing new business with Takata amidst airbag crisis

Lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. You might expect automakers to be fleeing any connection with beleaguered supplier Takata in the wake of the company's exploding airbag inflator crisis. After all, with a Senate hearing, pending lawsuit, plummeting stock value and demand for a national recall, the tier-one supplier isn't at its strongest right now. However, years of cooperation mean that automakers are standing by Takata, and necessity may be playing a role, as well. About 39 percent of Takata's business comes from airbags, and seatbelts make up another significant chunk of the operation too, says Bloomberg. The long-term relationships and lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. "Takata has so much product breadth that I don't really see that they could just disappear," said AutoPacific analyst Dave Sullivan to Bloomberg. For example, Takata helped develop the unique front center airbag with General Motors in models like the Chevrolet Traverse and Buick Enclave. Outside of safety tech, it is also a partner with Ford on the adaptive steering system available on the upcoming 2015 Edge. These long-lasting partnerships make change difficult now that there's a problem. According to Reuters, automakers claim it would take a year or longer to set up with a different supplier for replacement airbag inflators. Switching to a completely different part for the repairs might not be a viable option either, because of the engineering time needed. BMW is taking action, though. According to Reuters, the Bavarian brand is working with the supplier to move inflator production from Monclova, Mexico, to a Takata factory in Freiburg, Germany. The Mexican plant may be the source of some of the faulty parts. News Source: Bloomberg, ReutersImage Credit: Jens Meyer / AP Photo BMW Ford GM Safety Takata airbag recall

Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury

Recharge Wrap-up: Renault e.dams wins Formula E Marrakesh ePrix, S. Korean Tesla store opens this month

Renault e.dams has won the 2016 Formula E Marrakesh ePrix. The win at the season's second round gives the team a strong lead with 74 points. ABT Schaeffler Audi Sport and Mahindra Racing are tied in second place with 36 points. Renault e.dams driver Sebastien Buemi took first place in the race, with teammate Nico Prost finishing fourth. "We know we have an efficient car and we had to take advantage of that after we started further back on the grid than we wanted," says Buemi. "I was able to extract everything I needed from the car and it shows the team is working really well, so it's been a very positive start to the season." Read more at Green Car Congress, or from Renault. Navigant Research has ranked the EV charging companies. Of the 12 companies providing public charging networks and services, Navigant has named The New Motion, ChargePoint, and EV-Box as "leaders" in the field based on market share, breadth of products, and market adaptability. Following that group of three are a group of "contenders," including Chargemaster, Fortum, Innology SE, Greenlots, Clever A/S, EVgo, POD Point, and SemaConnect. Trailing those is Car Charging Group in the "challengers" category. Read more at Green Car Congress. BMW has entered the second phase of its ChargeForward program to study advanced EV charging. In partnership with Pacific Gas and Electric Company, BMW is inviting i3 and i8 owners in the San Francisco Bay Area to apply to participate in the second phase of the smart charging project, which aims to test technology that optimizes charging for the benefit of the electric grid. "By managing charging when a BMW i or iPerformance vehicle is plugged in – wherever the vehicle is plugged in – BMW can ensure that vehicles are efficiently charged to meet driver's communicated mobility needs while helping the grid reach greater levels of efficiency and sustainability," says BMW's Manager of Connected eMobility, Cliff Fietzek. Read more from BMW. Tesla will open its first Korean retail location this month. On November 29, Tesla plans to open a store in Starfield Hanam, South Korea's largest mall, in Gyeonggi Province. Tesla has also finished ground construction of a Supercharger station in the mall's parking area. Tesla is working to open another store in Seoul's Gangnam District, as well as charging stations around the country. Read more from The Country Caller.