MOTOR

Nissan to build new hatchback car in Britain

Japanese auto giant Nissan said on Tuesday that it will build a new hatchback compact car in Britain, in a 125-million ($198-million, 150-million-euro) investment that will create 2,000 jobs.

The new vehicle will be built at Nissan's Sunderland plant in northeastern England from mid-2013 in a project which will also be supported by a government grant of 9.3 million, the automaker said in a statement.

“As well as playing a key role in Nissan's market expansion within Europe, the new model will also have a significant benefit in terms of jobs with around 2,000 new posts created at Nissan and amongst its UK supplier base,” it said.

The hatchback car, which will compete models like the Ford Fiesta and the VW Polo, was unveiled on Tuesday at the Geneva Motor Show by Nissan Executive Vice President Andy Palmer.

Business Secretary Vince Cable welcomed the news as a “clear vote of confidence” in Britain's manufacturing industry.

“It is fantastic news that Nissan will be building the new model in Sunderland,” Cable said.

“The investment is a boost for jobs at Nissan's plant as well as the wider supply chain.” Tuesday's announcement will cement Sunderland's place as the largest car factory in Britain -- a position it has held for the last 14 years.

AFP

Peugeot Citroen reveals new share price at 42% discount

Auto group PSA Peugeot Citroen revealed on Tuesday that its new shares under a venture with General Motors will be issued at a 42.0 percent discount, and PSA stock plunged 6.0 percent.

The French group, which reported a current operating loss on auto activities last year of 92 million euros, also said that it would recommend waiving the dividend.

The firm, which has announced a share issue to raise about 1.0 billion euros ($1.32 billion) to enable US group GM to acquire 7.0 percent of its capital, said that the new shares would be issued at 8.27 euros each.

That was 42.0 percent below the price of PSA shares of 14.205 euros at the close of trading on Monday.

The reponse from the market early on Tuesday was to mark down PSA shares by 6.02 percent to 13.14 euros in an overall market that was showing a fall of 0.56 percent in early trading.

AFP

China sales hit record high in February

US auto giant General Motors said Tuesday it sold 240,554 vehicles in China in February, a record for the month and up more than 30 percent on the year, despite an overall slowdown in the Chinese market.

The number of cars and trucks that GM sold was also the third highest number for any month in the company's history in China, according to the statement.

The growth figure may been boosted by the low comparative base in February 2011, when there were fewer working days due to the Chinese Lunar New Year holiday, also known as the Spring Festival.

China's total auto sales rose just 2.5 percent to 18.51 million units last year, according to industry group the China Association of Automobile Manufacturers, against an increase of more than 32 percent in 2010.

The slowdown in the world's largest vehicle market came after China phased out sales incentives and some cities imposed restrictions on car numbers. In January, the nation's auto sales slumped nearly 27 percent year on year to 1.39 million units, though the industry association blamed fewer shopping days due to the unusually early Lunar New Year holiday.

Analysts say foreign automakers have been outperforming their local rivals as Chinese consumers favour better-known brands and higher quality vehicles.

GM sold 487,208 vehicles in China in the first two months of this year, up 7.7 percent from the same period last year, the statement said.

Beijing has grown alarmed at the dominance of foreign car makers, prompting the government last year to slap import tariffs on some US-made vehicles and formally withdraw support for foreign investment in the sector. Last month, China announced a preliminary list of preferred vehicles for government fleet purchases, which did not include any foreign brands.

AFP