GM holding distributorship talks with Naza group

Thursday December 31, 2009 GM holding distributorship talks with Naza group By EUGENE MAHALINGAM

PETALING JAYA: US car manufacturer General Motors Corp (GM) is in talks with several potential parties, including the Naza group, for the exclusive distribution of Chevrolet vehicles in Malaysia, according to an industry source.

�GM is already talking to a few parties. They are also in the process of discussing with Naza and (GM) will have something to announce by the second week of January,� he told StarBiz yesterday.

The source said GM had �excellent plans� for the Malaysian automotive market, adding that there would be new Chevrolet model launches for 2010, including the Chevrolet Cruze which was supposed to make its debut in the second half of this year.

�Yes, we are working on that (introduction of the Cruze) also,� he said.

In a joint statement on Tuesday, DRB-HICOM Bhd and General Motors Asia Pacific Holdings Co LLC said they had mutually agreed to discontinue their existing joint venture agreement to import and distribute Chevrolet vehicles in Malaysia effective Jan 1, 2010.

In the interim period, the source said GM had turned to listed Permaju Industries Bhd�s outfit, Cergazam Sdn Bhd, to manage the franchise until a new partner was found.

DRB-HICOM Bhd group director for automotive Datuk Nik Hamdan Nik Hassan said at a press conference yesterday that the partnership had ended mainly because both parties (GM and DRB-HICOM) had very different business models.

�When both GM and DRB-HICOM started reviewing the partnership between August and September, we had difficulty agreeing on certain business models. They have their own plans, we have our own.

�We have successful business plans with Honda and Suzuki that have been working well (for the Malaysian market). With that, (we felt that) the best way was to part ways,� he said.

DRB-HICOM distributes and assembles foreign marques such as Audi, Mercedes Benz, Honda, Suzuki, Mitsubishi, Isuzu, Mahindra as well as local marques such as Proton, HICOM Perkasa and Modenas.

Nik Hamdan declined to comment when asked if GM was in talks with Naza.

DRB-HICOM originally handled the Chevrolet franchise via wholly-owned Hicomobil Sdn Bhd in 2003.

The set-up was superseded in 2007 by HICOM-Chevrolet Sdn Bhd, a 51:49 joint venture (JV) in favour of GM via General Motors Asia Pacific Holdings LLC.

One business model that did not sit too well with DRB-HICOM was that GM wanted to convert all Chevrolet outlets into 3S (sales, service and spare parts) centres, Nik Hamdan said. �It�s good to have 3S but we felt it would be better to have separate (sales, service and spare parts) centres (within close proximity of each other) rather than to have everything under one roof. It depends on the strength of the brand and it costs a lot of money to set up these centres.

�It takes time for the dealer to invest in a 3S centre. As the dealer gets more involved with the brand, only then can the dealer invest more money in turning the outlet into a 3S centre,� he said.

There are currently seven Chevrolet outlets in Malaysia.

Nik Hamdan also said the termination of the JV would not have an impact on DRB-HICOM�s earnings as contribution from the Chevrolet marque was minimal.

�Contribution in terms of sales in the past one year has been minimal. In fact, when we had 100% distributorship (under Hicomobil) we sold nearly 14,000 cars.

�When the JV came in, we only sold 1,300 vehicles over the past year and a half, averaging just 65 units to 70 units a month. So it would not have a significant impact on the group,� he said, adding that there were currently about 15,000 Chevrolet vehicles on the road since 2003, comprising three main models � Aveo, Optra and Captiva.

� DRBHCOM :� [Stock Watch]� [News]

DRB-Hicom to have hybrid cars by 2012

MALAYSIAN automotive conglomerate, DRB-HICOM Bhd, aims to introduce its own hybrid car by 2012 in line with the government’s objective to promote hybrid and electric vehicles and development of related infrastructure. Group director of automotive, Datuk Nik Hamdam Nik Hassan, said the company was currently in talks with three potential partners to manufacture the car and hoped to finalise the deal next year. "Besides the assemble, we want to have our own hybrid car that we can call it HICOM hybrid. It will take 18 to 24 months to have this car to come on stream," he told a media briefing on the company’s automotive business in Shah Alam today. Nik Hamdam, who declined to name the parties, however, said one of them was DRB-HICOM’s existing partner. He said the group’s 70 per cent-owned subsidiary, Motosikal dan Enjin Nasional Sdn Bhd (Modenas), has collaborated with both Petronas Research and Universiti Sains Malaysia to manufacture its electric motorcyle. It is targeted for commercialisation by 2011, he said. Nik Hamdam said demand for hybrid car was increasing although the price was a little bit expensive compared to conventional car as the people's interests were now towards eco-friendly vehicle. DRB-HICOM is a distributor and assembler of prime foreign marques such as Audi, Mercedes-Benz, Honda, Suzuki, Mitsubishi, Isuzu, Mahindra as well as local vehicle such as Proton, HICOM Perkasa and Modenas. He said the company targeted to increase its market share to 22 per cent in 2010 from 19 per cent now with the focus on enhancing performance, especially in the after-sales and service activities. Nik Hamdam said the country’s total industry volume of vehicles was forecast to reach 540,000 units in 2010 from 525,000 units estimated in 2009. The company planned to launch at least 10 new models and upgrades of its various marques and this expected to spur its automotive business next year, he said. "Among them would be the Audi A5 and Audi R8, including two new models from Suzuki," he said. He said DRB-HICOM would pump in RM10 million for advertising and promotion activities by next year to strengthen the Audi brand presence. On the discontinuance of existing joint venture between DRB-HICOM and GM, Nik Hamdam said: "We are having difficulty to agree on certain point of their business model. Both of us have different objectives." Nik Hamdam said although the parties had now agreed to amicably part ways effective Jan 1, DRB-HICOM would continue to supply the spare parts of Chevrolet vehicles until the appointment of a new distributor by GM. "The termination will not have a significant impact on DRB-HICOM's performance as sales contribution from Chevrolet was small at about 1,000-1,300 units per annum compared with its total volume of close to 100,000 vehicles annually," he said. He said DRB-HICOM was looking to bid for stake in Proton once the opportunity arose. "This is something that we always look out for because we are much involved in Proton business," he said. BERNAMA

Slow Nano delivery leading to cancelled bookings

The Tata Nano was launched to great reception back in March, but around 15% of the 207,000 Indians who put down names in the order book have cancelled their bookings, as delivery of the “Rs 1 lakh car” is taking too long, according to Hindustan Times. 100,000 initial applicants were chosen randomly to be first for deliveries from July on.

“A number of those who expect to get their Nanos around March 2010 or later are cancelling bookings,” said Krishan Bansal, proprietor of Raghuvanshi Enterprises in New Delhi. “There are other new cars in the market for which people don’t have to wait,” said another dealer. “People don’t mind shelling out a bit more to get their car immediately.”

Tata shrugged off concerns, saying that some cancelled bookings was not unusual. “The capacity of our Pantnagar plant is limited but we plan to deliver 100,000 cars by the last quarter of 2010,” said a spokesman.

Indian consumers looking for a small car have plenty of options on the way. Honda will launch its New Small Concept and Toyota has promised a compact car for the upcoming India Auto Expo. Of course, there are also current favourites from Maruti Suzuki and Hyundai.

Source

Petronas deal to sponsor Mercedes GP was a business decision

KUALA LUMPUR, Dec 28 — The controversial decision by national oil company Petronas to sponsor the Mercedes Formula One team instead of the Malaysian-backed Lotus F1 racing team was not made without sanction from the administration of Datuk Seri Najib Razak, The Malaysian Insider understands.

Since last week's announcement of the Mercedes sponsorship, speculation has been rife about the future of Petronas chief executive Tan Sri Hassan Merican.

Conservative hawks within Umno have also been questioning the patriotism of the move by Petronas to back Mercedes instead of Lotus F1, which has been touted here as the 1 Malaysia F1 team after the prime minister's political slogan.

But according to industry sources familiar with the deal, Hassan, who is slated to retire in February, had made a strong argument for backing Mercedes to the government.

"Tan Sri Hassan would not have done this without sanction," a source told The Malaysian Insider about the decision.

It is understood that Petronas had considered the relative value to the company's future plans and decided Mercedes would fit into its plans better than Lotus.

Petronas is hoping that through its collaboration with Mercedes Formula One, it will be able generate business growth in the lubricants market.

Hassan and the Petronas management are understood to have argued that while the Lotus brand had huge historical significance, it did not sell many cars compared with Mercedes.

The Malaysian Insider understands that Petronas, which has been involved in Formula One for more than a decade now, was not looking at just establishing a brand presence through its motorsports sponsorship.

"It is about building a market for lubricants, and that can be achieved better with Mercedes and Michael Schumacher," a source told The Malaysian Insider, in reference to the return to racing of the legend in the Mercedes team.

Another factor that was considered in Petronas' decision was the fact that despite the government's backing, the Lotus F1 team would not be known as the 1 Malaysia F1 team. It has been officially entered as the Lotus F1 team.

The Petronas decision has piled the pressure on Lotus F1 boss Datuk Seri Tony Fernandes, who also controls AirAsia, to bring in the funds needed for his team.

Fernandes had hoped to bring Petronas on board given that his team has government support and his airline is a major purchaser of aviation fuel. The Lotus car company is also owned by Proton.

With no other local company either having the funds or seeking a global presence, Lotus F1 is likely to have to go global in its search for a major sponsor.

Lotus F1 was understood to have been seeking US$85 million (RM297 million) in funds from Petronas.

Eco-cars set to shake up domestic market

 

 

 

Initially, when the eco-car project was bought to the discussion table several years ago by the government, some auto companies and analysts believed it would damage the pickup market. So the project was postponed until 2007.

Auto-makers are however beginning to change the way they look at things now, and many are talking about how the eco-car will actually boost the size of the market. The total domestic market this year is estimated at close to 520,000 vehicles, while in past years sales have been as high as 700,000-plus.

"Two players will enter the eco-car segment next year, Nissan and Honda. While Nissan is set to launch in March, Honda is expected to launch in the last quarter of 2010. With a few months of sales, eco-cars will boost the market by about 5 per cent.

"They will take some sales away from the pickup segment and the 'B' passenger-car segment, not to mention smaller brands like Proton, Chery and Naza. A majority of the new customers, however, will be new, meaning first-time car buyers. Expect the total market to reach 600,000 units next year," said an industry insider.

Aside from eco-cars, elevating the market will be the B-car (subcompact) segment, which also promises lower fuel costs.

During its launch month of November, the Mazda2 sold 1,015 units. Sales have been so strong that Mazda Sales Thailand has asked AutoAlliance Thailand - operator of the Ford-Mazda joint-venture plant in Rayong - to increase output to keep pace with soaring bookings.

Mazda Sales Thailand managing director John Ray expects the B-car segment to grow 9-10 per cent this year, and by a similar amount next year. It is expected to account for 115,000 vehicles this year.

B-segment cars represent 22 per cent of automobile sales in the Kingdom. They also make up 40 per cent of all passenger cars sold in the country.

As the focus is on small cars, this could lead to a change in the market ratio between pickups and passenger cars. The eco-car is set to draw low-end pickup buyers, who usually pay about Bt380,000 for a vehicle and can now turn to a new sedan.

"The eco-car will takes sales from pickups and could effect the cheaper B-segment sedans," said Ray. "But it's unlikely to affect higher-up products like the Mazda2, Honda Jazz, Toyota Yaris and the soon-to-come Ford Fiesta. These customers wouldn't buy these vehicles if they were so worried about price. It's a different class altogether."

Market analysts at Mazda and Chevrolet expect the Thai market to even reach a balance of 50:50 between pickups and passenger cars in the next two years, against the 60-per-cent pickup share of previous years.

Besides the pickup market, the eco-car will also affect the second-hand car market. People who currently cannot afford a new vehicle have to turn to the used-car market. Prices for used B-segment cars are likely to drop after the launch of the first eco-car.

The auto market next year is not expected witness the same turbulence as in 2009, when sales fell heavily in the first quarter - bottoming out at a year-on-year contraction of 33.4 per cent.

Thanks to stimulus packages, the market picked up strongly. The overall market in the first 11 months reached 476,786 units, down 14.3 per cent, which is the lowest contraction this year. The decline in the passenger-car market is now down to only 1.7 per cent, while the pickup market is down by 20.7 per cent.

Shedding light on the industry's revival is also the fact that in November, auto production marked the first annualised increase in 13 months, according to the Federation of Thai Industries' Automotive Industry Club.

Although output in the first 11 months of the year was only 887,656 units - a 32.21-per-cent drop from the same period last year - all players are now more positive about the outlook.

While passenger-car production from September to November reached 339,418 vehicles, output during the December to February period is forecast to rise to 345,880 units.

Auto analysts are now looking at a 570,000-unit domestic sales figure for 2010, which would be equivalent to 10-per-cent growth, but some say sales could reach 600,000 units if there were nothing of a major nature stalling economic recovery.

Along with the decline in the domestic market, export markets for Thai automobiles have also been heavily affected. But along with the local market's recovery, exports have also started to pick up.

October exports were the highest since December last year and 20 per cent higher than in September, while export value was down by just 5 per cent compared to the same month last year.

As overall auto output is expected to hit 1.2 million units next year, the eco-car will further boost Thailand's position as the "Detroit of Asia". Under Board of Investment rules, each producer has to meet the 100,000-unit annual output target within five years.

Everyone is watching carefully developments on stimulus measures here and elsewhere, as these will be the key to boosting auto demand in the year to come.

 

 

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Historical kopitiam

A plum place for a good, quick meal: The coffee shop has a lineup of traditional hawker favourites (below, right).

At Lai Foong, it is the tantalising claims of the beef noodles� aphrodisiac qualities that take centrestage. From the tongue to the penis, right up to the slivers of tendons and brisket, the diner will find some very exotic parts of the cow in the aromatic broth.

Whether the claim is true or not, the reputation of Lai Foong�s beef noodles for being able to give �strength� is almost as old as the building.

Surprisingly, Thomas Tan, 44, the beef noodle man, is blissfully unaware of the Viagra-like properties attributed to his popular fare. The only thing he will vouch for is the stamina-giving effect of the soup which is based on an authentic 80-year-old Hainanese recipe passed down by his late grandfather, Chou Jou.

Thomas surmises that it is the constant tasting of this vintage brew that has enabled the beef noodle stall to open every day without fail since his father, Len Chuan, started business at Lai Foong in 1956.

�My father was a disciplined man in the sense that he never missed a day of work until he retired 15 years ago,� reveals Thomas who started helping at the stall during his primary school years.

�There were three things my father always observed. The first is to be at the stall by 4am every day for the preparations. The second is to be punctual with the opening and closing times. The third is to maintain consistency in taste and quality. There was no such thing as �Aiyah, nevermind-lah. I�ll take a rest today and open tomorrow�. He would never tolerate such behaviour from any of us,� says Thomas, the seventh of 11 siblings.

Recalling the earlier days, Thomas reveals that Len Chuan had left the island of Hainan and had come to Malaya by boat in 1953.

�My father�s first job was at a tin mine in Perak. After three months, it dawned on him that there might be better fortune to be made in Kuala Lumpur. I guess it was also due to my grandfather�s influence as he was a firm believer that it is always better to be one�s own boss,� says Thomas.

Recalling how his father came to settle at the present location, Thomas says he had chanced upon an advertisement offering the rental of stall space at the then newly-built Lai Foong coffee shop while he was scouting around for a place to set up his business.

Today, this old world coffee shop is run by Len Chuan�s children. One is Daniel, 40, Thomas� younger brother. Both are former students of SM Vivekananda in Brickfields.

Daniel who entered the business in the 80s, reveals that the coffee shop is named after the original owner before his father took over the lease of the shop from The Rubber Trade Association of Selangor and Pahang.

Though Daniel does not know the current whereabouts of the owner�s family, he remembers meeting a Wong Lai Cheong, believed to be the owner�s daughter who managed the shop and ran a dim sum stall within the premises. Three other hawkers who sold fish ball soup, prawn noodles and chicken rice beside Len Chuan�s beef noodle stall when he started in 1956 have also retired due to old age.

Still, there was no doubt that Lai Foong had been a �happening� place back then and it was rumoured that famous names like Yeoh Tiong Lay and Teng Peck Kheng would eat here.

The 80s also saw visits from Hong Kong film star Liu Wai Hung (better known as Ah Charn) who was a popular name in the 80s and 90s.

Expectedly, the hawker menu has retained much of its reasonable pricing and traditional flavour with offerings like fried kway teow, pork noodles, chicken rice and wan tan noodles with thick slices of char siew.

There is a personal endearment to the wan tan mee here as Loo Yoke Ying, 45, the wan tan lady, makes the loveliest meat dumplings. There is also a certain springiness to the egg noodles, which are best savoured dry with black sauce.

Sharing star billing with the beef noodles is the peppered pork stomach soup. Yeow Peck Sze, 56, the stomach soup lady who has been at Lai Foong for the past 10 years, says this traditional dish is becoming rarer in hawker food circles due to the complicated cleaning process of the pig stomach. But it is still much sought after by diners as it is believed to improve vitality and stomach functions.

Interestingly, it is a Chinese belief that eating a certain part of an animal�s internal organ holds parallel benefits for the diner�s inner functions as well.

The chicken rice stall run by Wooi Juin Kit, 22, is also notorious for long queues at lunch time. This can be attributed to the flavourful roasted meats. Naturally, the crackly skin of the roasted pork is a delicious but sinful indulgence.

The tiger prawn yee mee is another yum yum. Lathered with egg sauce, the tiger prawns come with thick, rich orangey roes. There is much to look forward to from this talented sei chow cook, Lee Yong Cheng, 25. From observation, he also does great Hokkien noodles as well.

Proton to unveil new design direction in 2010

Proton’s head designer Azlan Othman tweeted the above on his Twitter account a few days ago – it looks like we’ll be able to look forward to a showcase of a new look for Proton cars next year!

It was reported earlier this year that Italdesign-Giugiaro (which recently penned the Ssangyong C200 Concept) was hired to help Proton out with the new global Persona full replacement model and a clay model of the new car already exists at the design house’s HQ in Italy. They could also be helping Proton out with its new family design language?

We assure you Azlan, we’re definitely looking out for an announcement soon!

Camaro exterior designer leaves for Volkswagen

The Chevy Camaro is one of the most desirable (and well known) American cars on sale now, and the genius who penned its exterior design has left General Motors – to join Volkswagen. South Korean born Sangyup Lee has recently resigned from General Motors to be Chief Designer of Exterior at the Volkswagen/Audi Advanced studio in Santa Monica, California.

Lee leaves after 10 years at GM. Besides designing Bumblebee, his work also included the 50th Anniversary Stingray concept and had a hand in the C6 Corvette. Lee’s tenure included several international postings such as the Camaro production program for Holden Australia; a joint venture program for Subaru and GM in Japan; and a project between Bertone and GM in Italy where he developed the 2004 Buick Velite Concept car. The Velite project established the signature look of current Buick products.

With this, can we now expect bold, chunky and muscular designs to come out from VW/Audi’s US studio?

Source

JMW to lead Aston GT2 programme

Thursday, December 24th 2009, 10:06 GMT

Le Mans Series GT2 runner-up squad JMW Motorsport will switch from Ferrari to Aston Martin from the 2010 season.

JMW has completed a two-year deal to become the official development squad for the GT2 Aston, which was run by the LMP1-bound Drayson Racing in 2009.

In the team's first season of competition this year, JMW Ferrari duo Rob Bell and Gianmaria Bruni missed out on the LMS GT2 crown to Felbermayr-Proton Porsche drivers Marc Lieb and Richard Lietz by just one point.

Double LMS GT2 champion Bell will stay on with JMW - which has yet to announce the rest of its line-up - and is looking forward to racing the Aston.

"I am so excited about this new challenge, the only way I can describe it is I feel rejuvenated," he said. "As a driver, the opportunity not only to race the Aston Martin Vantage GT2 but to play such an integral part in the development of the car fires me up."

Aston Martin Racing boss George Howard-Chappell said his company knew it had to improve the GT2 Vantage's performance as the car had not yet been a frontrunner in the ultra-competitive class. But he believes the JMW partnership will bring a big step forward.

"We have focused considerable engineering resource on improving the performance of the Vantage GT2," he said.

"While we offer cars in every class from LMP1 to GT4, the GT2 car is probably the most important customer car and the one where we can make the most improvements.

"Working with a top professional team like JMW with their resources and commitment will mean we will be able to really challenge for GT2 honours in 2010."

Detroit Electric to offer affordable electric cars

By Samuel Ee

ELECTRIC vehicles (EVs) will start rolling silently into Singapore next year and among the most affordable could be those from Detroit Electric.

The American company makes pure electric vehicles and has partnered Malaysia's Proton to introduce more affordably priced electric cars.

Because of the technology involved, EVs are expensive to develop and produce. In recent times, prices have decreased but they are still not as competitive as those of conventional cars. It is estimated that there are only about 10,000 EVs being driven worldwide. These cars run purely on electricity, as opposed to petrol-electric hybrids like those from Toyota and Honda, which are powered by a combination of petrol engine and electric motor.

'Detroit Electric's pure electric vehicles will be introduced in Asia towards the end of 2010,' said Albert Lam, chairman and CEO of Detroit Electric. 'They will be priced between US$23,000 and US$26,000 for the city range model and between US$28,000 and US$33,000 for an extended range model.'

Mr Lam explained that the core strength of Detroit Electric's vehicle plan is its patented Magnetic Flux Motor Technology and Motor Controller Programme. This allows the vehicle to achieve a range of 180 km on a single charge for the city model and 320 km for the extended range model.

He added that the plan is to launch the vehicles in Singapore in Q3 or Q4 next year, with the first deliveries taking place in early 2011.

'We will supply 400 to 500 vehicles at this time, 30 of which will be the Lotus Elise SP1 and the rest evenly split between the two sedan models,' said Mr Lam. The former is a two-seater sports coupe based on the British marque's mid-engined model. Lotus is owned by Proton.

More interestingly, Detroit Electric's list prices are significantly lower than that of the very first EV model bound for Singapore - the Mitsubishi i-MiEV. This electric version of the Mitsubishi i minicar has an open market value of about $85,000. The OMV does not include registration taxes or the distributor's profit margin.

The i-MiEV is part of a $20 million programme to support infrastructure development and test-bed EVs in Singapore. The project is being driven by the EV Taskforce, which is co-chaired by the Energy Market Authority (EMA) and the Land Transport Authority (LTA).

The first 10 units of the i-MiEV will arrive in July, with the rest of the 50 cars to follow by end-September. They will be sold to corporate customers and although tax incentive plans have not been firmed up yet, the electric Mitsubishis may not cost much more than the OMV if registered under a special scheme for the testing of new technologies.

As for the Detroit Electric EVs, they should be subject to the usual registration taxes although they will at least qualify for the green vehicle rebate of 40 per cent of OMV.

'The strength of our vehicle is that it will be a low cost and practical solution to zero emissions motoring,' said Detroit Electric EVP Ben Boycott. 'It will not require any compromises in driving style, load capacity or function.'

Mr Boycott said his company's vehicles will also be fun to drive 'with a light and dynamic chassis combined with a very accessible performance'.

'The electric motor has maximum torque available from zero rpm and there is no need for gear changes. This will make city driving relaxing yet fun,' he said.

This article was first published in The Business Times.

F1: Surprise deal as Petronas become title sponsor of Mercedes GP

The deal is a surprise: Petronas has been involved in motorsport for a long time: it even developed a superbike several years ago - and its name has spent the last season splashed across the, er, lower back of Valentino Rossi and his team.

And for a long time, it has been a major sponsor of the Sauber, then BMW-Sauber team. Under the earlier incarnation, Malaysians gained good work experience with the Sauber team.

But the general expectation was that now the BMW deal was dead, that Petronas would put its financial muscle behind its sister company Proton's efforts.

To be fair, Team Lotus F1 is not really a Proton company: it's run by a few well connected Malaysians and some serious talent amongst the hired help, but it's got the Lotus name and Proton own Lotus engineering and the road and sports car divisions. There were criticisms that state money may be being put into the Lotus team.

And so Petronas may have been scared off by the criticism.

Or it might have decided that it has, at last, the chance to put its name on a car that wins.

So, now the team that was once BrawnGP and had no stickers on their cars will go by the name "Mercedes GP PETRONAS Formula One Team"

The new livery will be formally unveiled in February at the Valencia test, which is when - in theory at least - all teams will roll out their new cars.

The hero of formula one in recent years, Ross Brawn, said "The collaboration of the premium automotive brand Mercedes-Benz and a company as prestigious as PETRONAS gives our team a fantastic base from which to achieve our ambitions of competing at the top level of Formula One and building on the success of 2009 which saw the team achieve the Constructors� and Drivers� Championships. Our plans for the new season are progressing well, as is the development of our 2010 challenger, and we look forward to seeing the car run in the new Silver Arrows and PETRONAS livery at the Valencia test in February.�

But for Petronas there might have been a specific reason for going to Mercedes rather than any other team: the German manufacturer has already made it clear that it has no intention of writing blank cheques and that one of the attractions of Brawn GP is that it had costs under control. For Petronas, that might mean that it got a somewhat better deal that it might have expected from some other leading teams.

And with its name on last year's MotoGP champion, it will be hoping for more of the same.

But there is another thing: there's an increasing buzz that Michael Schumacher has rebuilt his injured neck and is eyeing a return to F1. Ferrari have said they will not stand in his way if he joins another team, despite his extensive consulting role with them. Rumours say that Schumacher has personally told his former bosses at Ferrari that there is "a strong possibility" that he will be in a Mercedes F1 car next year."

Focus, a German magazine, reports that a deal has been done - for one year only and subject to an FIA medical.

With the guaranteed coverage that will provide, even if he's rubbish which isn't likely, Petronas might just have secured the sponsorship profile deal of the next decade.

Proton should name car after Dr M

Friday December 18, 2009 Proton should name car after Dr M

THE Malay proverb, �Harimau mati meninggalkan belang, manusia mati meninggalkan nama� conveys the meaning �One�s good deeds will never be forgotten.�

With this in mind, I would like to suggest that the new Proton model be named after Tun Dr Mahathir Mohamad, the man who so brilliantly inspired the automotive industry in the country. I would like to mention some famous companies in the global automotive industry to emphasise my suggestion.

Henry Ford (1863-1947), the founder and manufacturer of the Ford motor car. He started the Ford production company in 1901, which was later known as the Ford Motor Company in 1903.

Sakichi Toyoda (1894-1952) started the Toyoda Automatic Loom Works Ltd company, and the first car was produced in 1935 by his son Kiichiro Toyoda. Eventually the company was named Toyota Motor Company in 1937.

Sachiro Honda (1906-1991) was a mechanic and mainly produced motorcycles at the beginning, and successfully launched the Honda Company in 1948. His first car, called a Honda, was made in 1948.

Michio Suzuki was the inventor of the Suzuki motor car, and founded the Suzuki Motor Company in 1954. It was later known as the Suzuki Motor Corporation. Suzuki is the ninth-biggest automotive company in the world and has 133 delivery companies in 192 countries.

Walter P. Chrysler changed the name from Maxwell Motor Company to Chrysler after he bought the corresponding companies� shares in 1925. Since then, the name Chrysler is being used in all his company products.

If all these companies named themselves and their cars after their founders, then it is only apt that we honour Dr M by using his name on our Proton cars. He was the backbone of the automotive industry in Malaysia, and without him we might not have achieved the brilliant success in this industry.

In light of this, I suggest that the Government organise a competition to name a future model after Dr M. It is important because by doing this, future generations will remember his contributions in the national automotive industry.

It has been 26 years since Proton was born, and it is time for us to honour Dr M�s contributions. Today we can hold our heads high that Proton is on par with other international names.

Dr M�s thoughts and actions have always been advanced, enabling us to �kaizen� (continuously improve and always learn to achieve). Hence we should always think positively and cultivate big ambitions for ourselves.

Dr M has done a lot for us and our country. As the father of modernisation, he is a most esteemed �engineer� and �architect� who has put Malaysia on the map.

We should not repeat the mistake with P. Ramlee. That is, honouring him with the Tan Sri title only after 17 years of his passing. Now is the time for us to take our hats off to honour Dr M.

A. MUTHU,

Alor Setar.

Anniversary turns tragic as couple and baby die in crash

Thursday December 24, 2009 Anniversary turns tragic as couple and baby die in crash Story and pic by G. C. TAN

JITRA: What was supposed to have been a happy first wedding anniversary celebration turned out to be a tragic outing for a family of three who died after the car they were travelling in collided with a lorry laden with sand and gravel.

Textile trader Benyamin Yaakub, 30, his wife Normah Isa, 29, and their six-month-old baby girl Ilnu Balkis Benyamin, were on the way to Jitra town from Normah’s mother’s house in Kampung Permatang Bongor about 20km away when the accident happened at about 5pm yesterday

Kubang Pasu OCPD Supt Sawaluddin Haminuddin said yesterday the couple and their baby girl were travelling in a Proton Wira and had stopped at the Jalan Kodiang-Jalan Jitra traffic lights. A Naza Sutera car was behind them.

“The lorry coming from the Jitra Hospital roundabout is believed to have encountered problems and rammed into several cars before jumping a divider and hitting both the cars waiting at the traffic lights junction.

“The Proton Wira was dragged for about 50m before both vehicles came to a halt after hitting the retaining wall of the Bazaar Mara Jitra building at Jalan Kodiang,” he said. The Proton Wira was a complete wreck.

The bazaar is a two-storey building with a coffee-shop located on the ground floor.

Supt Sawaluddin said the Naza Sutera, in which couple Othman Bakar, 50, and his wife Noor Zarena Bakar, 47, were travelling in had overturned near the traffic lights junction after being hit by the lorry.

“Othman, who was driving, is in coma at the Alor Star Hospital while his wife received treatment for minor injuries,” he said.

The 34-year-old lorry driver, who sustained minor injuries, has been detained for questioning.

Supt Sawaluddin said a total of five cars were involved in the accident.

Jitra Fire and Rescue Services Department chief Lee Ah Hing said the department received a call about the accident at 5.20pm and it took firemen 30 minutes to extricate the bodies from the wreckage.

An eye-witness Nur Azelin Mansor, 42, who was having tea at the bazaar, said she heard two loud crashes.

“I ran out and was shocked to see what looked like half a car stuck to the front of a lorry at the bazaar’s retaining wall,” she said.

Normah’s mother Siti Bedah Huzin, 48, who rushed to the hospital mortuary after being informed of the accident by a relative, said she last spoke to her daughter at about 4pm yesterday.

“I advised both my daughter and son-in-law not to take their baby girl out because it was too hot but they insisted on going out,” she sobbed.

Siti Bedah said the couple who were staying in Cherating, Pahang, had come to her house a few days ago for a holiday.

Porsche Motorsport newsletter 2009-11-10

Porsche Motorsport newsletter 2009-11-10 Racing series   FIA-GT GT PCC PSC ALMS ENDURANCE Date 2009-11-10

Porsche Motorsport around the world

FIA GT Championship: Richard Westbrook clinches title with 911 GT3 RSR

With victory at the eighth and final round in Zolder (Oct. 25), Richard Westbrook from Great Britain secured the GT2 drivers' title of the FIA GT Championship. Westbrook and Porsche works driver Emmanuel Collard had won the first two races in their 911 GT3 RSR fielded by the Belgian Prospeed team and held the lead until the seventh round. At the finale, the Briton shared the cockpit with Porsche-Junior Marco Holzer, who impressed with his faultless drive. Collard shared the 911 with Porsche-Junior Martin Ragginger, saw the chequered flag in sixth, and concluded his season in third.

Italian GT Championship: Francisco Cruz-Martins is the new champion

The fight for the title of the Campionato Italiano Gran Turismo went on until the final race weekend. Fifth position at race one of two in Monza (Oct. 17 - 18) was enough for Portugal's Francisco Cruz-Martins to win the championship's top class with Autorlando Sport's 911 GT3 RSR. Team honours went to Autorlando Sport. Cruz-Martins shared the cockpit with Porsche works driver Sascha Maassen at all rounds with the exception of one race at Mugello.

International GT Open: Autorlando Sport team champion with Lietz and Roda

Triumph for Porsche teams at the finale of the International GT Open on the Circuito do Algarve (Nov. 8) in Portugal. IMSA Performance Matmut pilots Patrick Pilet and Raymond Narac won ahead of their teammates Richard Balandras and Jean-Philippe Beloc, with Richard Lietz and Gianluca Roda finishing third in an Autorlando Sport 911 GT3 RSR. The Italian squad wrapped up the Super GT title. Lietz and Roda took the drivers' vice-championship ahead of Pilet/Narac.

Spanish GT Championship: Jesus Diez and Antonio Castro GTS champions

Four wins and five further podium results from twelve races: Jesus Diez and Antonio Castro (911 GT3 Cup S) topped off this performance in the Campeonato de Espana GT on the Circuito do Algarve (Nov. 7 - 8) with the GTS championship. In the Super GT category, the highest class, Miguel Angel de Castro narrowly missed out on the title to conclude the season as runner-up with Drivex's 911 GT3 RSR.

Belgian GT Championship: First Motorsport wins team classification

Final spurt yields title: Francois Verbist and Bert Longin secured their second win of the season at the penultimate race (24 Oct.) and claimed the final podium spot the following day at the eleventh and last race of the Belgian GT Championship in Zolder with the Porsche 911 GT3 Cup S run by First Motorsport. With this, First Motorsport claimed the team title. Longin and Verbist concluded their successful season ranking third in the drivers' classification.

Long Distance Championship Nurburgring: Ten races, nine Porsche wins

Top results for Porsche on the world's toughest race track: Christian Mamerow and Dirk Werner won the ninth as well as the tenth and final race of the BF Goodrich Long Distance Championship Nurburgring (Oct. 17 and Oct. 31 respectively) with Mamerow Racing's 911 GT3 Cup S. Mamerow Racing clinched four overall wins in 2009. However, the team to take the most overall victories at the long distance races on the 24.4 kilometre combination of the Nordschleife and Grand Prix circuit was Manthey Racing. Supported by Porsche works drivers Timo Bernhard, Emmanuel Collard and Romain Dumas, the Manthey squad secured five wins with a 911 GT3 RSR. Since 1983, Porsche has reeled off 150 wins at the long distance championship - more than all other manufacturers combined.

24 hour slot-car race Nurburgring: Porsche-Juniors pushing it hard

On Nov. 7 - 8, Porsche-Juniors Martin Ragginger and Marco Holzer took part in arguably their craziest 24 hour race to now. On a six-track model autobahn at the Nurburgring they piloted a Porsche Cayman. The two juniors' talent impressed the slot-car professionals. However, repairs after an electrical problem took an hour and robbed the team of all hopes.

Asian Le Mans Series: Two podiums for Porsche

Strong Porsche showing at the premiere race of the Asian Le Mans Series in Japan's Okayama (Oct. 31 - Nov. 1). Marc Lieb turned the quickest GT2 qualifying lap in the Felbermayr-Proton 911 GT3 RSR to yield second place from the first 500 kilometre race with Wolf Henzler - three-tenths of a second behind the winner. At the second 500 kilometre race, Christian Ried and Porsche-Junior Marco Holzer saw the flag in second at the wheel of the sister Felbermayr-Proton Porsche.

Porsche Mobil1 Supercup: Jeroen Bleekemolen defends championship

Enthralling premiere of the Porsche Mobil1 Supercup on the Grand Prix circuit of Abu Dhabi: At the twelfth race of the series (Oct. 31), Jeroen Bleekemolen defended his title with third place in the 911 GT3 Cup of Konrad Motorsport. His arch rival Rene Rast brought home his sixth win. At the final race the following day, Bleekemolen notched up win number five, with Rast running a close second. New Zealander Matt Halliday won the Rookie Classification.

Carrera Cup Deutschland: Thomas Jager takes title at final

The fight for championship honours of the Carrera Cup Deutschland between two former DTM pilots, Thomas Jager and Jeroen Bleekemolen, raged until the ninth and final race on the Hockenheimring (Oct. 25). Finishing fourth, Jager (MS Racing PZ Hamburg Nord-West) pocketed the trophy after three wins and three more podium results in 2009. Bleekemolen claimed his fourth win to become runner-up.

Porsche Matmut Carrera Cup France: Renaud Derlot is the champion

Consistency and four victories gave Renaud Derlot (Graff Racing) the championship title of the Carrera Cup France. Derlot was celebrated as the new champion after the 13th of 14 races on the final weekend in Ledenon (Oct. 17 - 18). Triple champion Anthony Beltoise was narrowly beaten to the title by six points.

Carrera Cup Great Britain: Two come out on top

Porsche Cars Great Britain gave six young hopefuls the chance to fight for two 50,000 GBP race scholarships towards the 2010 Carrera Cup at a rigorous evaluation process in Silverstone. After two days packed with track tests, media training, interviews and physicals, 22-year-old Euan Hankey and 21-year-old Michael Meadows were confirmed as the winners of the Carrera Cup Great Britain Scholarship Programme.

Race notes: Notching up his fifth and sixth wins of the season, Christian Menzel defended his points' lead in Shanghai (Nov. 7 - 8) against Tim Sugden. Title decision pending at the finale in Sepang (5/6 Dec.). +++ Season start of the GT3 Cup Challenge New Zealand in Pukekohe Park south of Auckland. Title defender Craig Baird won the 100 kilometre race on Saturday (Nov. 7) as well as Sprint 1 on Sunday. Sprint 2 went to Matt Halliday. +++ Miguel Paludo is the old and new champion of the GT3 Cup Challenge Brasil. Vice-championship honours - like in 2008 - went to Constantino Junior.

-credit: porsche

 

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Scotland entry revealed

From Jouni Tikanen [ 6/13/2001 ]. Click to read all other Rally News.
 

This introduction is meant for both those who don't yet know World Rally Championship but can also give something to more experienced fans. It is a complement to the Rally Glossary in which certain things are explained in depth.

The WRC

If you're new to the FIA World Rally Championship (acronym: WRC), this

article is a perfect place to start with. Since I don't believe that too many genuinely new people find their way first into my site, I try to include a bit of more advanced material into this too. So unless you're real expert you might find something interesting here. Also note that while this article covers some basics, more info can be found at glossary of rally terms and if you still have questions after reading these, don't hesitate to ask on via the general message board. There will surely be someone there that will be glad to answer your question.

What is it all about?

Rallying is a form of motorsports that is run over ordinary roads rather than in specialized circuits used in Formula One or off-road environment used in endurance events like Paris-Dakar.

In distinction to rallycross in rallying drivers compete against the clock, not directly against the other drivers.

And in distinction to rally-sprints, stages used in rallying are much longer (up to 40 to 50 km, average being 10 to 30 km) and special co-drivers are used to call pace notes.

Under current rules, each competitor starts into the stages with two minute intervals (applies to works drivers only, private drivers start with one minute intervals) so under normal circumstancies competitors see each others only at the start and finish of the stage.

Who runs the show?

There are four important parties involved. First one is FIA, the ruling body. It's the same body that makes also rules for Formula One, for example. Their role is only to make rules and govern, they do nothing else. Commercial rights to the WRC has been sold to International Sportsworld Communicators (ISC) which is owned by David Richards. They do all promotion, filming and distribution in relation to whole championship.

Thirdly there are manufacturers or teams, who design, build and run cars in the championship.

They are required to enter two cars in every event (but can enter more if they wish) but may name different drivers in each event. There are rules for new teams who have option to contest 25% of events in their first year, 50% in second year and all in third and subsequent seasons. Fourth party are event organizers who are independent organisations around the world and it is their job to organise event under FIA rules. There are as many ways of accomplishing this as there are events, some are free for the spectators while some use tickets. Some attract up to 150 entries while some are restricted to 60 entries (a trend for smaller entries is FIA's current wish).

Click here to read the next page

 

Proton S16 'cheapest car' to be launched in December

The Proton S16 sedan will become Australia’s cheapest car when it goes on sale in December for $11,990 drive away.

The four-door sedan is powered by a 1.6-litre twin cam petrol engine, producing 82kW and averaging 6.3 litres/100km.

Proton Cars Australia general manager of sales and operations Billy Falconer says the S16 is a unique prospect and offers great value for Australian motorists.

“S16 will be the only new four-door sedan available in Australia for less than $16,000 and will outpoint low-cost hatches and three-door models by offering a 1.6-litre engine and great equipment levels,” said Mr Falconer.

But the sub-$12,000 price tag is for a limited time only, with the manual GX model due for an upgrade in July 2010.

Despite this, Mr Falconer says interest in the new baby sedan has been strong.

“Our dealer network has embraced the new S16 already and there is a two month waiting list on dealer stock.”

The GX manual will be joined by an automatic in February, both cars coming standard with power steering, drivers SRS airbag, remote central locking with immobiliser and alarm and a CD player.

The refreshed line-up in July will welcome the higher-spec GXR model, which scores dual SRS airbags and ABS as well as alloy wheels, reverse sensors and fog lamps.

Alister McRae newsletter 2009-11-10

Alister McRae newsletter 2009-11-10 Racing series   RALLY Date 2009-11-10

Busy two weeks for Alister McRae

The next two weeks will be flat-out in more ways than one for former British Rally Champion and works WRC driver Alister McRae. The Scot is competing in Rally China this weekend, the final round of the Asia-Pacific Rally Championship before literally boarding a plane to the UK the moment the event finishes, to contest the Rally of Scotland, his home event and final round of the Intercontinental Rally Challenge.

Following last month's positive outing in the works Proton Satria Super 2000 rally car, McRae is again driving the official Satria on both events. While the team suffered technical issues on the extremely rough stages in Indonesia, it has modified several key components for this weekend's event in China, which will use the same car as in Indonesia.

A one-day test prior to the start of the recce in China showed that revised dampers gave the car a more balanced and stable feeling over the rough test road while modified steering components have also been fitted.

While the conditions in China in the run-up to the event are wet, according to McRae, the roads appear to be harder and less likely to become rough than in Indonesia, with a compacted rocky base. However, despite this, he still feels it will be a tricky event.

"I've been to China for the rally three times before but never to this event in this region. Looking at on-board videos from previous years and the test road, while it looks to be a reasonably solid base, the roads are very narrow and twisty, so it's going to be hard work.

"The aim this weekend is to get a solid finish for Proton. The Mellors Elliot Motorsport team has done a fantastic job of developing new parts in light of what we learned in Indonesia and I'm looking forward to the weekend. I hope that perhaps the weather will improve, it'll stop raining and we'll have a clean run to show what the car is capable of and get a solid result.

"It's not going to be easy though; there's a very strong top ten this weekend. There's Cody Crocker, Katsu Taguchi, Emma Gilmour, Dean Herridge, David Higgins, Jusso Valimaki and Juha Salo, so I think there will be some good scraps."

The event begins with a superspecial stage in the evening of Friday 12 November, before two full days of action on Saturday and Sunday. The first cars are expected to finish the event at around 4pm on Sunday afternoon, which is where Alister's next round of activity begins.

As soon as he has completed the event, he begins a five-hour drive to Shanghai to catch a plane to the UK, to arrive in Perth, Scotland just in time to begin the recce for the final round of the IRC, the RACMSA Rally of Scotland. He will again be driving the Proton Satria S2000 but this time, on home soil and the prospect understandably has him excited.

"I'm really looking forward to competing at home again," he said. "I've done some of the stages that make up the event as they formed part of the McRae Stages rally and some were also part of the British Rally Championship when I competed in the mid 1990s.

"MEM is putting the finishing touches to the car for Scotland in the UK now and hopefully, we'll have a chance to carry out a small test before the event but realistically, I think it'll be little more than a shakedown, because of the tight deadlines with me arriving. Again, this car will use the revised components and a few more changes as we move forward in what is effectively the car's first year of competition and development."

The event begins with a double-run of the superspecial stage at Scone Castle on the evening of Thursday 19 November before two days of action in the Scottish Forests on Friday and Saturday 20 and 21. The first car is expected over the finish ramp at Stirling Castle at around 4.30pm on Saturday 21 November.

-credit: alistermcrae.com

Proton Launches Australia's Lowest Priced New Car - S16 Delivers Economy ...

MILPERRA, AUSTRALIA – November 10, 2009: Proton has launched Australia's lowest priced new car with the arrival of the 1.6 litre Proton S16 sedan, which will go on sale December 1st with free on road costs providing a retail price of $11,990 drive away.

Proton originally forecast the S16 as potentially Australia's lowest priced sedan however with favourable currency trends the S16 will now be the lowest price new car available here.

The Proton S16 is a four-door sedan powered by a 1.6 litre twin cam engine with a full suite of standard equipment including AM/FM/CD audio system, power steering, air conditioning, remote central locking with immobiliser and alarm, drivers SRS airbag and seating for five, including 5 cup holders.

According to Proton Cars Australia general manager sales and operations Billy Falconer the S16 represents exceptional value for money in a package that redefines the entry level for new car buyers.

"S16 will be the only new four door sedan available in Australia for less than $16,000 and will outpoint low-cost hatches and three-door models by offering a 1.6 litre engine and great equipment levels," said Mr Falconer.

"Proton is known for its Lotus engineered ride and handling and strong styling and will now also be known for its market leading value.

"Our dealer network has embraced the new S16 already and there is a two month waiting list on dealer stock however customers can book a test drive ahead of the on sale date.

"Miss Universe Australia 2009 winner Rachel Finch will be the face of the new Proton S16 and will be featured in TV commercials and print advertising campaigns," he added

Along with a low purchase price the Proton S16 will be economical to own and run with excellent fuel economy sipping an average of just 6.3 litres/100km as per ADR 81/02 while producing 82kW at 6,000 rpm from its 1.6 litre Campro IAFM engine.

As a four-door sedan the S16 offers exceptional space efficiency particularly compared with entry-level three door hatches in a similar price range.

S16 boasts a capacious 413-litre boot significantly bigger than many larger and more expensive rivals.

Like all Proton passenger cars the S16 will be covered by a full three year unlimited kilometre warranty along with three years free roadside assistance and a seven-year anti-corrosion warranty.

It will be available in five colours including solid white, solid red, mountain blue, tranquility black and genetic silver along with a range of accessories including body kits, spoilers, alloy wheels, boot liners and reverse sensors.

The Proton S16 will be launched in GX manual form only however a GX auto variant will arrive in early 2010.

The initial S16 GX will only be available for a limited time in its current spec at the price of $11,990 drive away.

July 2010 will see the introduction of the new S16 GX with increased specifications and also a GXR variant both in automatic and manual form, which will include additional features such as dual SRS airbags and ABS as standard on all variants. The high spec GXR will also have alloy wheels, reverse sensors and fog lamps as standard

End of road for GM-DRB tie-up to distribute Chevys?

KUALA LUMPUR, Nov 10 — A two-year partnership between General Motors (GM) and DRB-Hicom to distribute the US carmaker’s Chevrolet brand in Malaysia could be terminated by next month following an apparent breakdown in relations between the two parties.

According to car industry executives, the disagreements between the two are widely known. Indeed, in September a local daily reported that GM had terminated the partnership, but the report was refuted by DRB-Hicom in an announcement to the stock exchange.

But the car executives said that they had heard that GM had made up its mind last week.

Whether the recently announced National Auto Policy (NAP) has anything to do with influencing GM is not clear.

The NAP allows foreign carmakers to manufacture cars — either by themselves or through contract manufacturing — without any equity restrictions, which means GM could conceivably begin assembling its cars in Malaysia — or, say, pay Proton Holdings to do it — without any bumiputra partner.

Even so, that would apply only to GM’s best-selling brands and not, say, the Captiva sports utility vehicle which sells too little to justify being assembled locally.

That would still require GM to team up with a suitable Bumiputera partner who would be eligible to apply for the necessary Approved Permits, the import licences that are required to bring in completely built-up vehicles.

Analysts note, however, that the latter scenario would hold true if GM only intended to sell in Malaysia. “If it wanted to make Malaysia its regional hub, that’s a completely different story,” a car industry executive told BT.

For its part DRB-Hicom, which is controlled by tycoon Syed Mokhtar Al-Bukhary, seems to have done well only in those areas where its foreign partner both controls and manages the joint venture.

In its Suzuki business, which is doing well, DRB-Hicom has moved to a minority stake from a majority interest. In Mitsubishi, DRB-Hicom has a 48 per cent stake.

Even at Isuzu, the conglomerate has had to accept a minority interest where it used to run the show previously. The new joint venture is said to be profitable.

DRB-Hicom’s most successful joint venture is with Honda where it has a 34 per cent interest. It also assembles Mercedes Benz at its plant in Pahang in operations that are largely managed by the Germans, say car executives.

Even so, analysts do not think its split with GM will harm DRB-Hicom significantly. Slightly less than a thousand Chevys were sold in Malaysia last year. — Business Times Singapore

 

Wilks aiming for win on IRC return

Wilks aiming for win on IRC return In association with Monday, November 9th 2009, 06:09 GMT

Guy Wilks has promised a no nonsense approach to his maiden Skoda Fabia S2000 drive on the Rally of Scotland later this month - with the double British Rally champion planning to push for victory on the Stirling-based event.

Wilks is no stranger to the Intercontinental Rally Challenge, having competed in a Proton since the middle of the season, but the Darlington driver is not phased by having a new car for the final round of the series in a fortnight.

"This is a great opportunity for me and I'm really looking forward to driving for Skoda UK," he said. "The fact that we are competing on home soil in front of the British fans makes it a really special occasion and I'll definitely be going all out for the win."

Wilks' Skoda will be prepared by Belgian firm Rene George Rally Sport, but it will run to the same specification as the factory cars which have won in the hands of Juho Hanninen and Jan Kopecky this season.

Skoda UK is backing the drive and the Czech firm's UK brand director Robert Hazlewood said: "The Skoda Fabia Super 2000 has proved itself to be one of the best performing cars in the IRC and delivered fantastic results for our motorsport team. We are thrilled that Guy is competing for us and expect to see him pushing hard for the lead."

Win a WRC passenger ride and a VIP trip to a World Rally Event with Castrol Click here to read Peugeot's IRC blog   ADS BY GOOGLE

Italdesign-Giugiaro hired for Persona Replacement

Proton MD Datuk Syed Zainal Abidin has revealed in an interview with Business Times that the Italian design company contracted to develop Proton’s next C-segment sedan is in fact Italdesign-Giugiaro SpA.

Giugiaro (founded 1968) has designed a lot of vehicles in the past, including the Mk1 Volkswagen Scirocco (not the modern one that’s just launched in Malaysia). It even had a big part in the development of the R56 MINI. Here are some of Giugiaro’s recent work:

Ssangyong C200 Concept and Suzuki SX4

The Business Times report revealed that a clay model of the car already exists at the design house’s headquarters in Turin, Italy. It definitely has to be, considering the new Persona replacement car was previously mentioned to be out by 2012, after the Waja replacement in 2010 and the Perdana replacement in 2011.

The car will be engineered to meet tougher European and North American standards. Proton’s North American entry is still a hazy area at the moment but there was talk earlier this year that Detroit Electric would be helping with getting the cars registered with whatever authorities there are there. Not sure what happened with that whole project.

The Exora introduced new technologies in Protons that were not used before – more sensors for the airbag system and a Body Control Module. Datuk Syed Zainal says the new C-segment Persona replacement will implement these new features and add even more features to bring the new Proton up to international standards. Proton is currently in talks with various vendors on what can be implemented.

It is also in exploratory talks with some parties including a Chinese company (Europestar, SAIC-Roewe?) on collaborating on an SUV, and in talks via Lotus with a South Korean battery company and an electric motor supplier regarding EVs (what happened to Detroit Electric?).

No Proton, no car industry?

NOV 8 — Tun Dr Mahathir Mohamad, the man behind Proton, infers that without the national car company, there would be no car industry in Malaysia. Can that really be true? And can it really be so simple? No Proton equals no automotive industry? After all, it wasn’t as if Malaysians only walked before the Saga came along.

On the flipside, we also have people who continue to spend time trying to determine if, had there never been a Proton, we would not be better off than where we are right now. The answer from them, as I’m sure you can imagine, is often a resounding yes.

The problem is, however, people generally suck at determining causality. Whether you choose to view it as an inherent human flaw or endearing characteristic, people are prone to seeing what they choose to see. Sometimes even to the point of doing so in the face of contrary evidence.

Often, people confuse an accompanying sign or condition as the cause of an occurrence. Take for example the classic lesson in determining causality: Do storks bring babies or do babies bring storks?

Following the end of the second World War, population in Western European cities rose steadily. As it happens, this was accompanied by a similar increase in the population of storks in these areas. To the casual observer, it would appear that there is a strong correlation between the rate of growth for humans and a similar rate in storks.

Having observed that link, you’re tempted to ask whether there are more babies because there are more storks or more storks because there are more babies. The answer, of course, is neither.

What happened was post-war Europe saw a migration trend towards built-up areas, which resulted in higher urban population densities and increased birth-rates. So although there was an apparent connection between the numbers of babies and storks being born, the cause of both was determined to be the increased rate of urbanisation.

Storks, therefore, didn’t bring more babies. People did. The same went for storks. With a growing populace came the need for additional housing, which subsequently provided more nesting area for the storks. Which meant babies didn’t bring more storks. Again, people did.

Once someone points out the actual causality, the earlier assumption that there is causality in the correlation between the number of storks and the number of babies becomes preposterous. Yet people had no qualms spending time trying to determine causality where there was none.

Having revisited correlation and causality, is Dr Mahathir still right? Would Malaysia really have no automotive industry if the national car policy was not implemented back in the 1980s? But before you even go there, it’s important to define what constitutes an automotive industry.

Dr Mahathir likely (I’m guessing) considers an automotive industry to mean automotive manufacturing — cars and parts. The inference then is that sans Proton it would not have been possible for the ancillary industry to take root and flourish. The probable logic being with no national car company to supply parts to, nobody would bother to set up companies to supply parts.

Of course, you could also choose to define an automotive industry as everything that concerns vehicles minus the manufacturing. There’s still a lot of money to be spent — and made — long after buyers sign on the dotted line.

If you take the first definition, then Thailand serves as the counterpoint of just how possible it is to have not only an automotive industry, but a thriving one at that, without the hassle of setting up your own national car company.

Detroit of the East may be a little flattering for Rayong, but there is no hiding from the reality that Thailand has far surpassed Malaysia as the preferred destination for foreign car manufacturers planning to set up shop in the region.

At nearly 1.5 million vehicles, Thailand’s vehicle assembly plants churn out three times as many vehicles as their Malaysian counterparts do, all the while supplied by parts suppliers who never had a national car company to supply to. So no Proton means no automotive industry, still?

If you prefer the definition that omits the manufacturing side of things, then Singapore provides a prime example of a thriving automotive industry that has little involvement with factories and assembly lines.

Before you dismiss the little red dot as an automotive industry, know that Singapore car sales practically match our own, with over half a million cars sold a year in the tiny island-state. Half a million cars that need spare parts, accessories, car care, prestige parts, and more. There must be money in all that.

Not only does Singapore not have a national car company, it doesn’t even have all that many roads to drive on. Not even remotely as many kilometres upon kilometres of shiny highways as we do. So no Proton, no automotive industry still?

This is not to say Dr Mahathir’s inference is categorically wrong; it could really have been that Malaysia was so hamstrung that without the catalyst of Proton’s inception, we would have continued grinding away in neutral while our neighbours passed us by. Who knows for certain if that truly was not the case? Now, at least we’re in first gear, even if our neighbours are still passing us by.

My intention is to point out that without Proton or a national car company or protectionism, it would have still been possible for Malaysia to have a successful auto industry. Our neighbours to the north and to the south show us that this is so. Just because we have Proton doesn’t render all other possible outcomes null and void.

The only thing that is truly certain if we did not have Proton, is that there would be no Proton. Nothing more, nothing less.

Anything else and you’re just making things up.

The Diary: Martha Kearney

A proton bomb and an artillery shell are waiting to explode at the bottom of my garden. They are joining the Graveshaker and Howling She Devil in my husband’s box of tricks for our bonfire party this Saturday evening. Do you think, by any chance, that firework manufacturers have the male customer in mind when they choose the names for their pyrotechnics? Personally, I used to like the pretty little Snowdrop, with its white sparks – but that certainly doesn’t light my husband’s fuse. To accompany the display, he’s bought a giant polystyrene skull of Easter Island proportions (half-price after Halloween) to perch on top of his shrine to fire.

We broadcasters like to comfort ourselves after making mistakes on air with the thought: “Oh, the listeners or viewers love it when we make a mess of things.” I hope they do after a recent edition of The World at One. I read an introduction to an interview with army chief of staff General Sir Mike Jackson, who turned out not to be there. The producer had tried to tell me in my headphones just before we went on air. She thought the reason I hadn’t flinched was that I was super-cool. If only. In fact what happened was that she had pressed the wrong “talkback” button as the Sellotape with my name on it had slipped. Do you think Nasa has these problems in their control room?

Mind you, incidents like that were pretty run-of-the-mill at the first radio station I ever worked for – LBC in Gough Square just behind Fleet Street in London. I remember one news bulletin being interrupted by a woman entering the studio with a vacuum cleaner. This week I met up with some of the other women who worked there for a meal and to exchange some reminiscences. Many are far too scurrilous to repeat but I do love the story about the presenter (once a nationally known DJ) who used to fall asleep regularly on air during his live phone-in. The producer used to have to dash into the studio to wake him up. At least that’s never happened to me on The World at One.

Several of my male friends have taken to cycling in a symptom of the kind of midlife crisis that used to be reserved for fast cars and trophy wives. One has eight bikes, including a gold one that is “too good to ride”. All he does is stroke it and lift it up by one finger to show how light it is. Then there’s the Lycra. Another friend is a GP and a watchword for his conservative attire. Yet at the weekends he proudly squeezes himself into black-and-yellow cycling gear and terrorises the Suffolk countryside by turning into his alter-ego The Wasp.

I have a bike myself and, after I’ve checked several weather forecasts to be sure there won’t be a drop of rain, do enjoy going out for the odd ride, needless to say, not dressed in Lycra. My main problem in cycling, though, hasn’t been the dress code but the aches caused in my backside after any length of time in the saddle. The aforementioned male friends all claim that those pencil-thin leather saddles are really comfortable “once you get used to them”. In the same way, I suppose, that prisoners of the Inquisition got used to the Iron Maiden.

But I made a wonderful discovery this year on a short break to Le Touquet, on the northern coast of France. While we were there, we hired bikes with the most comfortable saddles I have ever experienced. These couldn’t be further from the Masoch model beloved of my friends. In fact I would describe them as the La-Z- Boy of saddles, fully padded and perfectly suited to my Miss Marple style of pedalling, which is at the other end of the spectrum to The Wasp.

I once spotted the wife of a Conservative MP dressed in full ball gown cycling out of the House of Commons. “Just off to Buckingham Palace!” she cried. I certainly wouldn’t risk cycling either to a posh event or wobbling home afterwards. So I went by cab to the National Liberal Club, a splendid late 19th-century neo-Gothic building just off Whitehall, to celebrate the 30th anniversary of the London Review of Books.

I had that awful moment when I arrived and didn’t recognise anyone I knew, so had to pretend to be very interested in the panelling of the library. Eventually, some old mates turned up and I ended up meeting an eclectic group of people, including the poets Hugo Williams and David Harsent and a Serbian academic who is a cousin of Radovan Karadzic.

There was also one of those scenes that form a familiar motif at literary parties. I witnessed a Booker judge apologising to an author for not including him on the shortlist. I am judging the Guardian First Book prize at the moment so will have that particular guilt trip to face soon.

There was one very dramatic moment at the LRB party. I was utterly surprised when writer and political campaigner Tariq Ali leapt athletically on to a table and thrust his arm into the air. Luckily this wasn’t the start of a long political denunciation of our Liberal surroundings but a vote of thanks to the LRB’s editors. I remarked on that to one of the Review’s staff on my way out. “Oh he always does that at our dos,” came the reply. “He’s a serial table climber.” No harm in keeping your hand in, I suppose, in case the barricades are piled up again.

That same evening, I also went to a reception at Lambeth Palace. No one leapt on the table there – possibly deterred by the stern glances of various archbishops of Canterbury through the ages, whose portraits line the walls. I had a brief chat with the current holder of the office, who told me that he’d hosted parties every night that week for several charities. This reception was for a charity called Five Talents, which provides microfinance for people who want to start small businesses in the developing world.

I will always remember interviewing a woman from Nigeria who had been given a small amount of money to buy some chickens who ended up employing several of her neighbours in a flourishing business. I am full of admiration for anyone from whatever background who can make a success of a small business. I used to harbour a secret fantasy about setting up a chutney business. Not after this week. I never thought I would miss a marrow. Normally we have far too many of the things as delicate little courgettes turn into boring tasteless marrows as soon as you turn your back. But at least they do bulk up the chutney. This year we grew a new type of yellow squash that was so inedible that I couldn’t even risk it in heavily spiced chutney. My recipe does get more and more ridiculously lavish every year, so something that is intended to use up spare apples has become a concoction involving balsamic vinegar and posh dates. Delicious except that lacking a marrow, I got the proportions wrong and it’s far too liquid. I don’t think the market is ready for a pouring chutney.

Martha Kearney is the presenter of ‘The World at One’ on BBC Radio 4 and of BBC 2’s ‘Newsnight Review’

Copyright The Financial Times Limited 2009. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

Martha Kearney

A proton bomb and an artillery shell are waiting to explode at the bottom of my garden. They are joining the Graveshaker and Howling She Devil in my husband’s box of tricks for our bonfire party this Saturday evening. Do you think, by any chance, that firework manufacturers have the male customer in mind when they choose the names for their pyrotechnics? Personally, I used to like the pretty little Snowdrop, with its white sparks – but that certainly doesn’t light my husband’s fuse. To accompany the display, he’s bought a giant polystyrene skull of Easter Island proportions (half-price after Halloween) to perch on top of his shrine to fire.

We broadcasters like to comfort ourselves after making mistakes on air with the thought: “Oh, the listeners or viewers love it when we make a mess of things.” I hope they do after a recent edition of The World at One. I read an introduction to an interview with army chief of staff General Sir Mike Jackson, who turned out not to be there. The producer had tried to tell me in my headphones just before we went on air. She thought the reason I hadn’t flinched was that I was super-cool. If only. In fact what happened was that she had pressed the wrong “talkback” button as the Sellotape with my name on it had slipped. Do you think Nasa has these problems in their control room?

Mind you, incidents like that were pretty run-of-the-mill at the first radio station I ever worked for – LBC in Gough Square just behind Fleet Street in London. I remember one news bulletin being interrupted by a woman entering the studio with a vacuum cleaner. This week I met up with some of the other women who worked there for a meal and to exchange some reminiscences. Many are far too scurrilous to repeat but I do love the story about the presenter (once a nationally known DJ) who used to fall asleep regularly on air during his live phone-in. The producer used to have to dash into the studio to wake him up. At least that’s never happened to me on The World at One.

Several of my male friends have taken to cycling in a symptom of the kind of midlife crisis that used to be reserved for fast cars and trophy wives. One has eight bikes, including a gold one that is “too good to ride”. All he does is stroke it and lift it up by one finger to show how light it is. Then there’s the Lycra. Another friend is a GP and a watchword for his conservative attire. Yet at the weekends he proudly squeezes himself into black-and-yellow cycling gear and terrorises the Suffolk countryside by turning into his alter-ego The Wasp.

I have a bike myself and, after I’ve checked several weather forecasts to be sure there won’t be a drop of rain, do enjoy going out for the odd ride, needless to say, not dressed in Lycra. My main problem in cycling, though, hasn’t been the dress code but the aches caused in my backside after any length of time in the saddle. The aforementioned male friends all claim that those pencil-thin leather saddles are really comfortable “once you get used to them”. In the same way, I suppose, that prisoners of the Inquisition got used to the Iron Maiden.

But I made a wonderful discovery this year on a short break to Le Touquet, on the northern coast of France. While we were there, we hired bikes with the most comfortable saddles I have ever experienced. These couldn’t be further from the Masoch model beloved of my friends. In fact I would describe them as the La-Z- Boy of saddles, fully padded and perfectly suited to my Miss Marple style of pedalling, which is at the other end of the spectrum to The Wasp.

I once spotted the wife of a Conservative MP dressed in full ball gown cycling out of the House of Commons. “Just off to Buckingham Palace!” she cried. I certainly wouldn’t risk cycling either to a posh event or wobbling home afterwards. So I went by cab to the National Liberal Club, a splendid late 19th-century neo-Gothic building just off Whitehall, to celebrate the 30th anniversary of the London Review of Books.

I had that awful moment when I arrived and didn’t recognise anyone I knew, so had to pretend to be very interested in the panelling of the library. Eventually, some old mates turned up and I ended up meeting an eclectic group of people, including the poets Hugo Williams and David Harsent and a Serbian academic who is a cousin of Radovan Karadzic.

There was also one of those scenes that form a familiar motif at literary parties. I witnessed a Booker judge apologising to an author for not including him on the shortlist. I am judging the Guardian First Book prize at the moment so will have that particular guilt trip to face soon.

There was one very dramatic moment at the LRB party. I was utterly surprised when writer and political campaigner Tariq Ali leapt athletically on to a table and thrust his arm into the air. Luckily this wasn’t the start of a long political denunciation of our Liberal surroundings but a vote of thanks to the LRB’s editors. I remarked on that to one of the Review’s staff on my way out. “Oh he always does that at our dos,” came the reply. “He’s a serial table climber.” No harm in keeping your hand in, I suppose, in case the barricades are piled up again.

That same evening, I also went to a reception at Lambeth Palace. No one leapt on the table there – possibly deterred by the stern glances of various archbishops of Canterbury through the ages, whose portraits line the walls. I had a brief chat with the current holder of the office, who told me that he’d hosted parties every night that week for several charities. This reception was for a charity called Five Talents, which provides microfinance for people who want to start small businesses in the developing world.

I will always remember interviewing a woman from Nigeria who had been given a small amount of money to buy some chickens who ended up employing several of her neighbours in a flourishing business. I am full of admiration for anyone from whatever background who can make a success of a small business. I used to harbour a secret fantasy about setting up a chutney business. Not after this week. I never thought I would miss a marrow. Normally we have far too many of the things as delicate little courgettes turn into boring tasteless marrows as soon as you turn your back. But at least they do bulk up the chutney. This year we grew a new type of yellow squash that was so inedible that I couldn’t even risk it in heavily spiced chutney. My recipe does get more and more ridiculously lavish every year, so something that is intended to use up spare apples has become a concoction involving balsamic vinegar and posh dates. Delicious except that lacking a marrow, I got the proportions wrong and it’s far too liquid. I don’t think the market is ready for a pouring chutney.

Martha Kearney is the presenter of ‘The World at One’ on BBC Radio 4 and of BBC 2’s ‘Newsnight Review’

Copyright The Financial Times Limited 2009. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

Formula One Insider - Toyota Drops Out... Who's Next?

Formula One Edition

November 6, 2009

TOYOTA OUT. RENAULT NEXT?

Toyota announced this week that it will be pulling out of Formula One racing, effective immediately. While that is not a death blow, it certainly is distressing because you never really want to see manufacturers pulling out of the game. The decision was based on the fact that the F1 team was costing them too much considering that sales have not been what the company expected. It's obviously a reflection of the condition of the auto industry worldwide (Toyota is expecting a $3.8 billion loss for the year, but posted a $242 million profit for the quarter).

Some have actually touted this as being a break for the smaller teams, because they would not have as many manufacturers themselves to contend with. BMW and Honda have pulled out within the last year, but there are others obviously still on the grid. Ferrari is out there, as is Mercedes, which is buying into the defending champion Brawn GP team. Lotus is coming in next season as one of the new entrants, and Lotus Cars' parent company, Proton, is one of the partners.

Renault is the team that is in something of a limbo right now. On the heels of a scandal of major proportions involving former team principal Flavio Briatore and the pre-arranged crash of Nelson Piquet Jr. at Singapore last year, Renault, who employed Fernando Alonso (+225 to win next year's driver's title at BetUS), who has already skipped over to Ferrari, is pondering whether it wants to continue in F1 in 2010, and will come up with a decision by the end of the year. If they continue, they will have to come up with a ay to replace major sponsor IMG, which has pulled out.

The Toyota pullout was surely good news for one team in particular - the Sauber team, which lost the BMW support but picked up financial backing from Qadbak Holdings, was poised to be an "alternate" team, to be inserted in case somebody else pulled out, barring a special ruling that would have allowed 14 teams on the grid. This opens up possibilities for them.

Not so fast though, says the FIA, which will offer a legal challenge to this decision, based on the fact that it came after Toyota had already committed to staying in F1 through the 2012 season.

At the very least, they're going to use it as leverage.

The FIA is using the departure of Toyota as a way to facilitate more conversation on the subject of budget caps. This is not unlike baseball, in that the teams in the smaller markets probably wouldn't mind having a salary cap, but teams like the New York Yankees, Los Angeles Dodgers and Boston Red Sox wouldn't hear of it. Well, think of Ferrari as the Yankees, Red Bull as the Dodgers and McLaren as the Red Sox (okay, Brawn GP is in there somewhere). The "haves" don't want to even the playing field with the "have-nots."

This battle was fought earlier in the season, when the FOTA (Formula One Teams Association) threatened to pull out en masse and start their own circuit. Ferrari blames FIA for the Toyota situation, saying that the organization has "waged war" against major car manufacturers.

At the same time, Ferrari would like to get the rules changed to allow each team to have a third car, because they are contemplating a return of Michael Schumacher in that car for 2010 (as much has been confirmed by Ferrari president Luca di Montezemolo).

It's the silly season, and drivers are now looking for rides. Kamui Kobayashi, who did well in a couple of races for Toyota as he subbed for the injured Timo Glock (100/1 for next year's title at BetUS), is hoping to wind up with the new Lotus team. Kobayashi finished fifth in the season finale at Abu Dhabi, and is almost certain to find a ride somewhere based on his confident efforts. The principals of the Toyota team say they'll help him in any way possible to find a seat.

The Williams team, which used Nico Rosberg (+1200 for next year's title at BetUS) and Kazuki Nakajima this past season as drivers, will have Rubens Barrichello and Nico Hulkenberg in the cockpit in 2010. Barrichello finished third in the world championships with the Brawn GP team this year, while Hulkenberg is the champion of the GP2 series and has been a Williams test driver.

Bruno Senna, nephew of legendary F1 driver Ayrton Senna, will enter Formula One next year as a driver with the new Campos Meta 1 team. Senna would probably have been a member of the Honda team, had it not pulled out before the start of last season.

By the way, here is the initial list of future odds to win the Driver's Championship next season, as posted at BetUS Sportsbook:

Without protection we would not have a car industry — Mahathir Mohamad

written by The Pencil, November 05, 2009 wow, this is just the way of saying that "NAP is not my fault please refer to the correct people"

Yes its true that a homegrown auto industry needs some sort of protection against bigger brands in the start, but that does not mean that they need to be protected INDEFINITELY. Come on, more then 20 damn years in the industry and proton is still giving us half past six products?

in fact, the protons of yesteryear are better built than the protons of now because no proton now is built with passion, or even a keen eye for detail. Loose parts on the first week of purchase, missing items like a boot plug, and even the fact that the centre that sold the cars can't even have the common courtesy to aligned the wheels and steering wheel properly. Many of my friends who have bought new protons like the satria neo and persona all have their own set of complaints - all within the first month of purchase. What kind of competitiveness is that?? How can you win the hearts of the world when you cant even win the hearts of the local nation?

And to add insult to injury, its not like the protons are anything 'affordable'. 50k for a normal sized sedan. wow, thats some load of cash. How can the lower income bracket people afford our local cars?

A small history lesson:
The VW Beetle was herald the 'people's car' in Germany when it was first launched. It was built tough and long lasting and could be bought easily by anyone. That is a 'people's car' where it serves the nation.

Proton seems to be the opposite: give us crap at expensive prices, so we spend more to maintain the crap buying expensive parts, whittling our already dry pockets due to the initial purchase of the car. Best part is, most of us are stuck with that one purchase for more than 10 years due to hire purchase loans.

Highlights From SIRI's Q3 Conference Call: Revenue Grew to $630 Million Record ...

November 5, 2009 12:29 PM EST

SIRIUS XM Radio Inc. (Nasdaq: SIRI) reports Q3 EPS of breakeven, ex-items, 2 cents better than the consensus of a $0.02 loss. Revenues rose 3% to $630 million, above the consensus of $608.7 million. Shares are currently up 3%.

Highlights From SIRI's Q3 Conference Call:
SIRIUS XM affirmed its year 2009 guidance of over $400 million in pro forma full-year adjusted income from operations.
(CEO) We were also pleased this quarter that we grow subscribers and improved churn. Our subscriber base is large, loyal and satisfied, and is expanding again with a net addition of over 100,000 subscribers in the third quarter.
ARPU continues to grow because of the steps we've taken to improve the economics of this business.
Our revenue grew this quarter to a record Q3 revenue, the best ever in Satellite Radio history of $630 million.
Combining revenue growth with expense reduction allowed us to generate 106 million of adjusted EBITDA in Q3 of this year versus negative 37 million for the same quarter last year, a swing of $143 million.
Similarly, free cash flow for the quarter was $27 million versus negative 98 million, a substantial positive swing of approximately $125 million.
Today, we are conforming guidance for the year at over 400 million of adjusted EBITDA. The two satellite radios combined ended 2007 with an adjusted EBITDA loss of $565 million. Before the merger the two companies lost $565 million. After the merger, the company is going to report over $400 million, $1 billion turnaround in two years.
Simply put, our fixed cost base would not materially change whether we are serving 18.5 million, 20 million or 25 million subscribers or even 50 million subscribers for that matter.
The quarter highlights also include an improvement is self paid churn, which dropped below 2% for the first time this year at 196 for the third quarter it represents significant progress from the 2.2 reported for Q1 this year.
We ended the quarter with approximately $380 million in cash with only 82 million of debt due by the end of this year and no maturities next year.
The great thing about our relationship with the automakers is that they are very effective ways for us to market to potential customers. With penetration currently at 55% and conversion rates at 46.8%, we can be highly confident that new subscribers will be joining us as they are introduced to our service.
In addition, we just recently begun to aggressively pursue the used car market and believe that there is a tremendous opportunity to convert already installed, but dormant satellite radios into paying subscriptions.
Cash operating costs for the first nine months of 2009 were down almost $0.5 billion, or almost 25% from last year. We know how to squeeze cost out of the system, and you should look forward to more of that in the quarters to come.
We assumed a conservative estimate for 2010 of 11 million cars and light trucks. In that scenario, we will finish 2010 with an increase in net ads, our revenues growth mid-to-high single digits, we're forecasting growing adjusted EBITDA over 20%, and we will not only be free cash flow positive, we will increase Sirius XM free cash flow over the 2009 results.
In the first nine months of this year, we have now generated, $347 million of adjusted income from operations, a positive swing of 550 million from the first nine months of 2008.
Cash operating expenses year-to-date were $465 million lower than 2008, even if you isolate the impact of lower growth sales resulting from the automotive industry's slump, cash operating expenses were lower by $375 million in just nine months.
With the slight decline in churns in Q2, and an increase in auto sales, we were able to resume subscriber growth in the third quarter adding approximately 102,000 net subscribers to finish the quarter with 18.5 million.
Both our self-paid and commercial subscriber bases have increased since the end Q2, 35,000 and 67,000 respectively.
Our self-pay base was 15.5 million at the end of Q3 compared to 15.2 million a year prior, our paid promotional base is about 3.1 million at the end of Q3 compared to 3.7 million at the end of Q3 of '08 lower by nearly 700,000 subs due to the dramatic fall of with the North American auto sales.
We are particularly pleased with the uptick in our conversion rate in the third quarter moving up to approximately 47% from the 44 to 45%, we have been seen in the previous summer months.
Total revenue grew approximately 3% or $17 million versus the same period a year ago to 630 million primarily driven by a 3% increase in ARPU plus the collection of additional music recovery fee revenues, which are not included in our ARPU.
We achieve this revenue growth despite 1.7% decline in average subscribers versus the same period last year.
SIRIUS XM continues to deliver positive adjusted EBITDA reaching 106 million this quarter. The big driver was a 19% reduction in cash operating expenses bringing it down to $126 million lower than Q3 last year.
Satellite and Transmission declined 26%, programming 29%, Sales and Marketing 32%, G&A 36% and Engineering 8%. Revenue sharing royalties up 2%, slightly less than our revenue growth rate as we saw improvement from the renegotiated GM contract, which partially offset the effect of higher OEM mix and the higher performance royalties versus year ago.
The build of that XM 5 is largely complete and we expect to launch it on a Proton rocket next summer. Completing the refresh of the SIRIUS constellation will be the launch of SIRIUS 6 in late 2011, which will also go into geostationary orbit. Satellite CapEx excluding capitalized interests to support these programs is expected to be approximately 170 million in 2009; 220 million in 2010 and 125 million in 2011.
(Q&A) Couple of questions on the car market. So, one, I was wondering if you could give any sort of metrics on the kind of performance you're getting out of your programs with used car sales? And any sort of good ways to think about how big an opportunity that can be over time? And then you said there are about 600,000 unpaid trail subs at the end of this quarter. Can you give an indication of what that number looks like at the end of may be second quarter and first quarter also? Thank you very much. (A)On the used cars, we are learning quite a bit and frankly the way we forecast the number is, we've gone back and looked at how many cars have been built with satellite radio inception today. We then use kind of a industry-standard curve for when those cars transition. So for instance after four years, we know almost close to 55% to 60% have moved to the second owner. We then overlay that on what's been built, we look forward what things going to be built and we predict both the industry going forward year by year. I can tell you the industry between now and 2014 gross extensively. Our challenge in 2010 is to get our arms around effectively predicting how bif that market is and how to reach those subscribers. And I think you will hear more us in the quarters to come on that particular on. Dave, do you want come on the pay trails? (A)So on the pay trial, the figures that I have handy are a year ago as supposed to sequential quarters. So, what we should think about it is that a year ago we had little bit less than 400,000 unpaid trials and for the growth it's been a little bit more than 200,000 since a year ago. I think, you can expect that most of that growth came on as the automotive industry began rebounding from the lows that it hit at the end of last year, beginning of this year.
Question on the network architecture situation, how long do you think it will be before Sirius is using some one constellation of satellites to service the entire customer base? And has that timeframe changed since you first kind of started contemplating the original merger? (A)The answer to the second
question is that it hasn't changed. When we contemplate the merger and then when we finally announced that and began explain to people what was going to happen, one of the things that we told them is to not expect a -- really any meaningful satellite efficiencies from getting to one constellation for
really long time. And the way that we explained it is that it takes a long time to make changes in what the automakers put in cars. And so we have -- once you pick, I'd say, you were to decide to pick to go to one system, you -- once you made that choice, it will take a few years to roll it into production, and then a few years for them to actually ramp it up and get it through all the -- alter their plants. So it end up with several years before you begin really a meaningful transition of what's in the field, many of [indiscernible] cars in the field. So we've already got the spending out of the way for second-generation
satellite constellations in basically the next 24 months. And then those assets are good until beyond 2020. So we will face the decision from a spend perspective really and sort of about 7, 8 years time and what we want to do with respect to two versus one constellation. So the timing is still -- still what it was -- the time of the merger and it's still pretty far out. But what it does allow us to do is that there were near term savings so that by making the decision for Sirius to operate with two a geostationary satellites instead of three KEO [ph] satellites, that we basically cut one satellite and save a spare, because XM had already build a spare. So relative to the plans we have pre-merger, it takes about 400 million of CapEx out of the near term.
First one follow up on what was just being talked about. Do you use the same repeater system with the new Sirius to geostationary satellites in additions to the XM geostationary satellite? (A)That's a great question. And here also since the merger our engineers have been hard at work and really done, what I consider to be is very clever engineering. We are fully integrated now, the repeaters networks and in fact, we expect going forward to actually be able to operate repeaters that allow us very efficiently to
broadcast both streams. So, we're still working on the numbers, but we're confident that our repeater expenses are under control, and we'll not -- would not grow the way you would expect them to grow if you went to an all GEO versus HEO constellation.
And so do the elliptical orbiting satellites find the back up to the geostationary orbiting rather than the other way around in fact --? (A)I thank what happens is the lives of these are so difficult to predict, and we're actually at a very great situation, where we have a lot of options as to how ultimately that works, but I'll go back to David's comments, we are going to end up with two geostationary Sirius satellites, two geostationary XM satellite, and a spare that we will launch next summer in the middle which gives us a lot of flexibility. (A)Sure I think the way that you should think about it is that, right now since we turned out in Sirius V in September, we're operating there effectively a two GEO -- two HEO, one GEO operating configuration, we're likely to stay in that configuration until at least 2013, and then sometime between 2013 and 2015, which is roughly when the HEO, the first generation HEO constellation reaches it's end of life, we'll flip over to the two GEO mode supplemented by the expanded trust or refuse.

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