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

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

Not just 'our logo on a sail': Automakers gain technology from America's Cup

HAMILTON, Bermuda - From water taxis that "fly" on hydrofoils to aircraft wings and cutting-edge car steering wheels, the America's Cup has produced technology with potential far beyond its "foiling" catamarans. With their focus on carbon fiber and aerodynamics, the teams that fought for the America's Cup attracted partners including planemaker Airbus and automotive groups BMW and Land Rover, who were keen to learn from them. One area where this is likely to have an impact is in harnessing "foiling" technology, where the America's Cup boats "fly" above the water on foils, cutting water resistance. "Foiling in small electric boats will most likely appear on rivers in major cities. We are just at the beginning of the foiling adventure," Pierre Marie Belleau, head of Airbus Business Development, who managed its partnership with Larry Ellison's Oracle Team USA, told Reuters. The space-age catamarans used in the 35th America's Cup, which ended in victory for Emirates Team New Zealand this week, can sail at maximum speeds of 50 knots (57 mph) and have more in common with flying than sailing."CARBON FIBER RELATIONSHIP" For Jaguar Land Rover, which sponsored British sailor Ben Ainslie's attempt to win the cup, the relationship is a strategic one with a focus on technology and innovation. "We don't just get our logo onto a sail," Mark Cameron, JLR's Experiential Marketing Director, said by telephone, adding that the carmaker would be providing more designers to help Land Rover BAR with technology for their next campaign. "This is a dynamic sport that is developing fast. ... It's moving quickly just like the car industry is moving quickly. It's all changing," Land Rover produced a special steering wheel for Ainslie to use in the America's Cup, with in-built gear shift paddles that allowed him to adjust the catamaran's "flight" levels. The relationship is similar between BMW and Oracle Team USA, with the German automaker focused on areas including the electronics in the wheel used by skipper Jimmy Spithill, the development of carbon fiber used to make the boat and its components, and the aerodynamic testing. "We like to think of ourselves more as a partner than a sponsor. We have a very strong carbon fiber relationship," Ian Robertson, who is the BMW management board member responsible for sales and brand, told Reuters between races. "This is a dynamic sport that is developing fast. ... It's moving quickly just like the car industry is moving quickly.

Chairman says BMW will make 100,000 electric vehicles a year by 2020

We know demand for the BMW i3 has been high, both in the US and Europe. It appears that BMW's crystal ball is showing a steady increase in interest between now and 2020. By that year, according to Norbert Reithofer, chairman of the board of management for BMW AG, the company expects to build 100,000 units a year. That's not quite as EVs many as Tesla is talking about for 2020 (500,000), but it would represent quite an increase from the roughly 20,000 units that the best-selling plug-in vehicles moved in 2013. Reithofer told Automotive News that plug-in vehicle production would steadily increase by 2018 before hitting full stride at the end of the decade. He also made sure to clarify that there was external pressure to make 100,000 EVs a year: "we will be forced to build them in a six digits figure to comply with stricter emission rules." The plug-in electric vehicles are just one part of BMW's effort to reduce emissions. In prepared remarks delivered at the company's annual accounts press conference (available in full below), Reithofer said, "Customer demand [for i3] is exceeding our expectations. ... We believe the electric motor is a future technology for zero-emission driving in urban areas. Battery technology will continue to progress. ... When it comes to emission-free long-distance driving, however, electric cars featuring hydrogen fuel cell technology offer great potential." He didn't say how many fuel cell cars BMW expects to make and sell in 2020, but BMW's collaboration with Daimler and Renault-Nissan is supposed to launch the "world's first affordable, mass-market fuel cell electric vehicles as early as 2017." Statement and presentation by Dr. Norbert Reithofer, Chairman of the Board of Management of BMW AG, Annual Accounts Press Conference 2014 19.03.2014 Good morning, Ladies and Gentlemen! The core task of a company is to safeguard its future. This means we must ensure that our products and services are always inspiring our customers. We need to think ahead and continually take our business model to the next level. We also have to remain profitable so we can invest and bring new ideas to life. Our ambition of the BMW Group is: Always to consider the long term in all our planning, to follow our own path successfully, and to be a pioneer in our industry. Our business model is clear: Individual mobility in the premium segment.