Volvo Cars, the premium car maker, has raised SEK5bn from the sale of newly-issued preference shares.

Volvo Cars, the premium car maker, has raised SEK5bn from the sale of newly-issued preference shares to a group of Swedish institutional investors.

The group of investors comprises two Swedish pension funds, AMF and the First Swedish National Pension Fund (AP1), as well as Folksam, a Swedish insurance company.

The preference shares may be repurchased or converted into listed ordinary shares upon the majority shareholder’s decision. At this time, no decision has been taken.

The issuance has been conducted to further diversify Volvo Cars' long term funding sources.

The detailed terms of the sale have not been disclosed, but the transaction will have an immaterial dilutive effect on the current 100 per cent ownership of Volvo Cars by Zhejiang Geely Holdings.

The share sale follows two bond issues earlier this year, a EUR500m bond to global institutional investors in May, and a further SEK3bn to Swedish institutional investors in November. The bonds were issued for general corporate purposes and aimed at increasing the company's financial flexibility.

Today’s move is another step towards Volvo Cars’ long expressed ambition to act as a listed company.

Volvo Cars’ financial performance is strong. It is expected that 2016 will be another record year in terms of sales, with growth coming across the board from its three main sales regions of Europe, China and the US.

Operating profit for the first nine months of the year was SEK7.7bn compared to a full year operating profit for the whole of 2015 of SEK6.6bn, prompting Volvo Cars' expectations for the full year to "substantially improve" profits compared to last year.

Volvo Cars has successfully built a sense of momentum around its transformation since it was acquired by Zhejiang Geely Holdings in 2010, driven by the ongoing renewal of its complete product range, powertrain and chassis technologies and safety and connectivity technologies.

In coming years Volvo Cars will continue to reposition its brand to compete with its global premium rivals, revive its operations in the US and develop its global manufacturing footprint, grow further in China and double its market share in Europe.

It will also introduce an entirely new model range, embed its new engine technologies and maintain its position as the leader in car safety and autonomous drive (AD) technologies.

Volvo Cars is also forging alliances that place it at the forefront of the latest technological developments in the automotive industry developments.

It intends to set up a joint venture with Autoliv, the leading automotive safety technology company, to design and manufacture separately-branded AD and driver assistance software technology packages for sale to third party OEMs.

Volvo Cars has also joined forces with Uber, the ride sharing company, to build and co-develop base vehicles for AD cars.

First employees for new St Athan plant gaining skills at Aston Martin HQ building the All-New DB11 Sports car.

• First employees for new St Athan plant gaining skills at Aston Martin HQ
• Highly skilled technicians to return to Wales to build the Aston Martin crossover

Earlier this year, Aston Martin announced significant new investments in its long term future in the United Kingdom, choosing St Athan in Wales as the location for its second manufacturing facility.

As a specialist luxury manufacturer, Aston Martin requires highly skilled technicians to hand build its cars, so the new employees for the St Athan plant, which will begin full production in 2020, will commence their careers with Aston Martin at Gaydon. 

Over 40 people have begun work across the business where they are being fully trained in the ‘Aston Martin way’ by building the new DB11.

Dr. Andy Palmer CMG, Aston Martin President and CEO said: “We are proud of the fact that we have a world-class team building our cars so it is vital that the new Welsh workforce is equally dedicated and passionate. 

It gives me great satisfaction to be able to employ a workforce that is local to the St Athan plant and bring them here to Gaydon to train them to become the skilled technicians required to build our beautiful hand-crafted cars. We have continued to work closely with the Welsh Government throughout the recruitment process and we are very pleased with the calibre of our new employees.”

A recruitment event held in Cardiff in the Spring attracted over 3,000 applicants for the jobs being created at St Athan, from apprentices at the start of their careers to already highly-skilled workers.

First Minister of Wales, Carwyn Jones said: “We are delighted that Aston Martin chose Wales for its second manufacturing facility and it is a pleasure to see the first group of Welsh employees starting out in their new careers with Aston Martin. The new plant will transform the Ministry of Defence site at St Athan with the economic benefits estimated at half a billion pounds over 30 years.”

Construction work is scheduled to start at St Athan in 2017, centering on the transformation of three super-hangers at MOD St Athan.

USA - FCA invests over $1.5 billion to upgrade the Sterling Heights Assembly Plant to prepare for the New RAM 1500.

• Plant to be retooled to build next generation Ram 1500
• Brings total U.S. investment to more than $8.3 billion with nearly 25,000 jobs created since June 2009

FCA US today announced that it will invest $1.48 billion in its Sterling Heights Assembly Plant (Mich.) to retool it to build the next generation Ram 1500 and support the future growth of the Ram brand.

The Company also confirmed that production of the Chrysler 200 will end in December 2016 in order to begin the transformation of the plant.

Future plans for the Warren Truck Assembly Plant (Mich.), which currently builds the Ram 1500, will be announced at a later date.

This production action is subject to the formal approval of incentives by state and local entities.

On July 14, 2016, FCA US announced a total $1 billion investment in its Toledo, Ohio, and Belvidere, Ill., assembly plants to support the future growth of the Jeep_® brand.

Since 2009, FCA US has announced investments of more than $8.3 billion and added more than 25,000 (including nearly 18,000 hourly) people in its U.S. operations.

Volvo Cars UK introduces a new initiative to give talented people the opportunity to set up and run their own dealerships.

• Volvo Car UK launches initiative for talented motor trade professionals to set up and run new dealerships
• Sponsored Dealers’ to integrate into the Volvo dealer network over the next three years

With 2015 marking Volvo Car UK’s most successful sales year for more than 20 years, and with the Swedish brand registering more than half a million cars globally for the first time in its history, Volvo Car UK (VCUK) is planning to further invest in the brand and its network of dealers with the launch of its Sponsored Dealer Programme.

While not a unique concept by the Swedish manufacturer, the Volvo Sponsored Dealer Programme is a first for Volvo in the UK and will play a pivotal part in meeting its target of 60,000 UK car sales by 2020.

Volvo will give talented motor trade professionals with a proven track record of running successful individual or small group dealerships the opportunity to set up their own Volvo dealership, with the support of Volvo Car UK. This support includes securing the site and providing backing that will enable the individual to access credit facilities that may otherwise be out of reach.

Volvo plans for six sponsored dealers to go live over the coming years, with work on the first dealership, located in the Midlands, already underway at a new-build site which incorporates the brand’s latest Scandinavian-inspired showroom design cues. Volvo will take on the leases for the properties and each site will be set up as a Volvo Retail Experience (VRE) dealer from day one.a

As part of Volvo’s human-centric approach, the dealers will be hand-picked and will gain ownership of a Volvo franchise. Volvo will support the dealership to nurture the business in line with brand strategy requirements and to support individuals in getting up to speed with operating a multi-million-pound business.

Following the hugely successful launch of Volvo’s all-new XC90, a positive reception for the S90 and V90, and the ongoing transformation of the brand, the Sponsored Dealer Programme provides a great opportunity to join the premium brand as it goes from strength to strength.

“The Sponsored Dealer Programme has been introduced to find talented motor trade business people who will become advocates of the Volvo brand at a truly exciting time for the company,” comments Phil Hand, Volvo Car UK’s Head of Network Development.

“Following the ongoing success of our Volvo Retail Experience initiative, with 12 dealers now operational, the Sponsored Dealer Programme is part of our move to continually improve the quality of our dealer network’s customer experience,” Phil Hand continues.

Volvo reported a six per cent year-on-year sales increase in 2015, and with a completely new Volvo range to be implemented within three years, the sponsored dealer sites will occupy territories that have the potential for growth to support the brand’s anticipated volume increases. 

Porsche pushes out the boat with the World Premiere of the new Panamera Sports Saloon.

Porsche CEO Oliver Blume presents the latest generation in Berlin

On Tuesday, June 28th, Porsche celebrated the world premiere of the new 2017 Panamera in Berlin accompanied by a spectacular display of lights, music and choreography. Over 300 international media representatives – as well as guests from business, sports and the entertainment industry – were able to view the second generation of the sports sedan for the first time. 

The new 2017 Porsche Panamera, which has been redeveloped from the ground up, combines two contrasting characteristics better than ever before: it offers both the performance of a sports car and the comfort of a luxury sedan.

"We have tapped into the segment of luxury sport sedans with the Panamera. Since it launched in 2009, over 150,000 units of the Panamera have been sold. 

The new model represents a completely redeveloped automobile – with new engines, a new design and new technologies. Furthermore, we are now manufacturing the second generation of the vehicle entirely at our Leipzig production site. 

To this end, we have invested a sum of 500 million Euros – which includes a completely new body manufacturing facility," Oliver Blume, Chairman of the Executive Board of Porsche AG, emphasized.

The design language of the new Panamera creates a link to the Porsche 911 through its even more dynamic flyline and by using specific design elements of the iconic sports car. 

"An observer will immediately recognize the coupé-like roof line, but it is much 'faster', even more dynamic and includes a new side window look that emphasizes the coupe-like side view even more," said Michael Mauer, Head of Style Porsche AG, who explained the design objectives that were set for the new model. 

"The new Panamera can be identified as a Panamera at first glance, but also as the new Panamera. 

Its strengths have been reinforced, its weaknesses have been eradicated and above all its distinctive character has been preserved."

The new twin-turbo engines of the Panamera are more powerful than before, and thanks to the new eight-speed dual-clutch transmission (PDK II) they are up to 16 percent more fuel-efficient according to the New European Driving Cycle. 

The Panamera will launch with two engines: the 550 hp Panamera Turbo and the 440 hp Panamera 4S. Both models will be equipped with all-wheel drive as standard.

To provide an even larger spread between supple ride comfort and agile handling, the Panamera now offers features such as the new three-chamber air suspension, rear axle steering and the new electronic 4D Chassis Control chassis management sys-tem. Many new assistance systems also enhance ride comfort as well as safety.

In the new Panamera, Porsche is also introducing a future-oriented display and control concept. The new Porsche Advanced Cockpit with its smartphone-like user interfaces and configurable LED screens impresses with its intuitive functionality. 

Furthermore, the new Porsche Communication Management (PCM 4.1) offers an entirely new range of connectivity by its intelligent digital functions and online services. 

In the new Panamera, Porsche Connect is being introduced in all models. It extends existing vehicle functions by adding digital services and apps such as those used to control certain vehicle functions remotely by smartphone – and others to make more efficient use of the driver's time on the go.

About Porsche Cars North America, Inc. | One Porsche Drive, Atlanta, GA 30354 USA

Established in 1984, Porsche Cars North America, Inc. (PCNA) is the exclusive U.S. importer of Porsche 911, Boxster, and Cayman sports cars, the Macan and Cayenne SUVs, and Panamera sports sedans. 

Headquartered in Atlanta, Georgia since 1998, PCNA is also home to the first Porsche Experience Center in North America featuring a module-based 1.6 mile driver development track, business center, human performance center, and fine dining restaurant. PCNA employs approximately 300 people who provide parts, service, marketing, and training for 188 dealers. 

They, in turn, work to provide Porsche customers with a best-in-class experience that is in keeping with the brand's 65-plus year history and leadership in the advancement of vehicle performance, safety and efficiency. PCNA is a wholly-owned subsidiary of Porsche AG, which is headquartered in Stuttgart, Germany.

At the core of this success is Porsche's proud racing heritage that boasts some 30,000-plus motorsport wins to date.

USA - Volkswagen continues to invest in new distribution and training centre's in the USA.

• -Opening of new $6.8M Parts Distribution Center in Rocklin-
• -$4.5M investment in new Southern California Training Center-

Volkswagen Group of America, Inc. (VWGoA) today announced the grand opening of its new $6.8 million Pacific Northwest Parts Distribution Center (PDC) in Rocklin, Calif. 

The company also confirmed that it will invest an estimated $4.5 million to open a new training center in Eastvale, Calif., just outside of Los Angeles. 

These facilities, which represent an estimated $11.3 million investment, are part of the company’s long-term commitment to the U.S. market and a broader strategy to invest more than $7 billion in North America through 2019.

“The new parts distribution center and upcoming training center in California is a testament to Volkswagen Group of America’s continued investment and commitment to the U.S market, our customers, and dealers,” said Hinrich J. Woebcken, president and CEO, Volkswagen Group of America, Inc. 

“The company remains focused on these types of strategic investments that will enable long-term growth in the United States.”

Pacific Northwest Parts and Distribution Center

The newly expanded facility in Rocklin completes a U.S. network of seven Volkswagen Group parts distribution facilities across the United States. 

The 143,000 square-foot facility holds 40,000 automotive service part numbers and approximately $13 million in inventory, with distribution to 94 Volkswagen and Audi dealers across six states in the Pacific Northwest and Northern California.

“The new Rocklin facility plays a vital role in our commitment to providing quality service to our customers and dealer network in Northern California and the Pacific Northwest,” said Jan Bures, Executive Vice President Group After Sales and Services, Volkswagen Group of America, Inc. 

“We are especially excited to increase our presence in California, a priority market for both Volkswagen and Audi brands.”

VWGoA took possession of the building in June 2015 and began shipping parts to dealers in April 2016, the facility is now fully operational. 

This seventh VWGoA PDC in the United States will enable improved efficiency in Volkswagen and Audi service parts deliveries and employ 30-plus people. This is the second VWGoA PDC in California, with another 310,000 square-foot facility in Los Angeles.

Eastvale Training Center

Volkswagen Group of America also announced today that it will invest an estimated $4.5 million to create a state-of-the-art training facility at the Goodman Commerce Center in Eastvale. 

The new Center will house Volkswagen, Audi and Porsche training facilities for the purposes of technical, collision repair and sales training. This is the first training facility to support all three brands and is expected to open in the first quarter of 2017.

Volkswagen Group has committed more than $7 billion in North America between 2015 and 2019. These new additions to Volkswagen Group’s California presence are among seven locations where the company operates in the state. 

Other sites include the Volkswagen Group of America Electronic Research Laboratory in Silicon Valley, a regional sales operations office in Woodland Hills, and the Test Center California in Oxnard.

PSA Group will invest 700 million euros in Spain over the next four years & build a new car in its Vigo factory

PSA Group will invest 700 million euros ($785 million) in Spain over the next four years and will build a new car in its Vigo factory in northern Spain starting in 2020, a company spokesman said.

PSA did not give any details of the new model, but local media reported that it will likely be a compact SUV for the Peugeot brand.

The bulk of the investment -- 640 million euros -- will go to Vigo, the spokesman said, confirming comments made by CEO Carlos Tavares during a visit to the region on Wednesday and picked up by Spanish media.

Vigo builds the Citroen Picasso, Citroen Elysee and Citroen Berlingo models alongside the Peugeot 301, according to the Automotive News Europe's European vehicle assembly plant map.

The rest of PSA's investment will be destined for the company's plant in Madrid-Villaverde, which builds the Citroen C4 Cactus.

PSA employs close to 8,000 people in Spain, three quarters of whom are based in Vigo.

PSA's announcement comes after French rival Renault said earlier in May that it will invest over 600 million euros in Spain and produce a new vehicle there too.

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SOUTH AFRICA - Ford invests $170 Million to expand production with the All-New Everest SUV & Ranger Pick-Up.

• Ford invests R2.5 billion ($170 million U.S. dollars) in local production of the all-new Ford Everest seven-seat SUV and expansion of the new Ranger pickup program
• Expansion will create 1,200 new jobs in South Africa
• All-new Everest extended range to include 2.2 and 3.2 derivatives, production commences at Silverton Assembly Plant in Pretoria in third quarter 2016
• Ford will export all-new Everest into Sub-Saharan Africa countries

Ford Motor Company is investing R2.5-billion ($170 million U.S. dollars) to expand operations in South Africa at its Silverton Assembly Plant in Pretoria, South Africa, to produce the all-new Ford Everest, along with the new Ford Ranger that was launched at the end of last year.

This investment will create approximately 1,200 new jobs at Ford South Africa and within the South African supplier network.

“Our customers love the capability and utility offered by the all-new Ford Everest,” said Jim Farley, Ford executive vice president and president of Europe, Middle East and Africa. “By producing the Everest in South Africa, we will be able to make it more readily available, and in a greater variety of models, for customers throughout Sub-Saharan Africa.

“The R2.5-billion investment reaffirms the importance of these markets as part of our growth strategy across the Middle East and Africa,” Farley added. “It further reinforces South Africa’s position as a strategic export base for Ford Motor Company.”

The Silverton facility joins AutoAlliance Thailand in Rayong; Ford’s Chennai plant in India (where it is sold as the Endeavor) and the JMC Xiaolan Plant in Nanchang, China, as production hubs for the Everest. Initial production at Silverton of the Everest will commence in the third quarter of 2016, with the first units expected to come to market in the fourth quarter. South African-produced models will be sold locally and exported to markets across Sub-Saharan Africa.

Part of this investment has been directed towards the production of the new Ranger, which is already running at maximum capacity at the Silverton Assembly Plant – with domestic sales and export demand at an all-time high.

The Silverton Assembly Plant features state-of-the-art automation utilising Ford's global manufacturing processes, and will be equipped to produce 10,000 Everests annually.

“The all-new Everest has been extremely well received since it was launched in September last year, with demand far outstripping supply,” said Jeff Nemeth, president and CEO of Ford Motor Company Sub-Saharan Africa Region.

“This crucial investment will enable us to increase volumes and expand the Everest range to eight derivatives across a broader price range. It will allow customers across Sub-Saharan Africa to choose from two powerful engines mated to robust six-speed automatic or manual transmissions for exceptional capability.”

Currently, the all-new Everest is imported from Thailand, using the locally produced 3.2-liter five-cylinder Duratorq TDCi engine. It is only available in South Africa in 3.2 Automatic guise in two specification levels – XLT and the range-topping Limited. With the commencement of local production, a 2.2-litre Duratorq TDCi four-cylinder diesel engine will be added to the range, along with a wider spread of specification levels.

Built at Ford’s Struandale Engine Plant in Port Elizabeth, the latest-generation Duratorq TDCi diesel engines – which are also used in the new Ranger – offer maximum fuel economy along with exceptional performance.

The all-new Ford Everest is a rugged seven-seat SUV featuring body-on-frame construction, intelligent four-wheel drive and an Advanced Terrain Management System to help navigate challenging terrain with ease.

In recent years, Africa has emerged as an increasingly important region for Ford, with continued investment and growth.

In 2008, Ford announced plans to build the Ford Ranger at its Silverton Assembly Plant with an investment of R3.4 billion. The investment allowed Ford to transform both of its South African plants into world class facilities to produce the Ford Ranger and Duratorq TDCi engines for local consumption and export.

The Ford Ranger is exported to 148 countries in Africa, Middle East and Europe, while engines and machined components are supplied to Argentina, Thailand, North America, India and China.

In 2014, Ford formed its newest business unit, Middle East and Africa comprising 67 markets to support the region with a dedicated focus and clear understanding of the unique conditions and customer needs.

The African growth story continued in 2015, when Ford confirmed that it would assemble the Ford Ranger in Nigeria, using semi knock-down (SKD) kits and components imported from South Africa.

Ford Motor Company’s growth story goes beyond its manufacturing expansion in South Africa. In 2015, Ford sold 78,471 passenger cars and light commercial vehicles in South Africa, the highest number on record. The South African-built Ranger pickup performed particularly well, with an 18.1 percent year-on-year increase in sales and a total of 33,920 Rangers sold in 2015.

“As we continue to grow our business here in South Africa we are committed to improving the skills of our employees and creating new opportunities within the company and the broader supply chain. It is only through the dedication and commitment of our work force, suppliers, dealers, union and government partners that we have been able to secure this investment and expand our operations, broadening our footprint in Africa even further,” Nemeth concluded.