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Date: 2013-05-02 18:37:15
Vol 8 Issue 18 6 Mayl 2013

Dear [NAME]
JHC Jeff Heselwood Communications
Insight into the Global Motor Industry
Vol 8 Issue 18 6 May 2013
This Week: Volvo ends production; Williams’ results; Rolls-Royce Wraith; Audi’s first-quarter results;
Volvo: end of an era
On May 5, 2013, it is 20 years since Volvo's single best-selling model, the 240 series, went out of production. Almost 2.9 million cars were made during the 19 years the 240 was produced; the car that first was criticized for its boring and boxy appearance, but during its lifetime managed to set the international standard for both safety and environment, win the European Touring Car Championship and achieve the status of yuppie cult car before it was discontinued in May 1993.
The Volvo 240 was introduced in August 1974 as a logical continuation and development of the popular 140 series of cars, featuring a number of new and innovative technical solutions in many areas. This was especially emphasised by the very high level of safety and the car bore a strong visual resemblance to the VESC safety concept car that Volvo had showed two years earlier. This, among many other details, meant very large bumpers which gave the 240 its characteristic protruding jaw up front. The 240's dynamic and safety properties were well received but less so its aesthetic values. The design was considered boring and perpendicular.
Like the 140 series some years before, the 240 was also marketed in a more luxurious version with a six-cylinder engine, the 260, and as an estate; Volvo's pièce de resistance. The Volvo 245 almost became synonymous with the very concept of estate cars or station wagons in general. A truly versatile car that swallowed everything imaginable while at the same time, was both fun to drive and comfortable, and featuring the highest safety level on the automotive market at the time.
After a long series of crash tests carried out by the US traffic safety authority NHTSA, using 240 and its competitors, it became clear that the Volvo 244 by far provided the best occupant protection. The results were therefore used to form the basis for the future US safety legislation for all cars that were going to be sold on the American market.
At the same time, Volvo also worked intensively on emission control, trying to control the unregulated oxidizing catalyst that was going to be introduced soon and to make it - under certain conditions - reduce the three harmful substances hydrocarbons (HC), carbon monoxide (CO) and nitric oxides (NOX) to negligible levels. By improving the exhaust cleaning capacity through controlling the fuel/air mixture in the narrow band where the ratio for the catalyst is at its optimum, in 1976, Volvo became the first car manufacture to serve the solution: The Lambda sensor. This genial little piece of engineering enabled the catalyst to cut more than 90 per cent of the harmful hydrocarbon, carbon monoxide and nitric oxide levels that are created as a result of the combustion of the fuel/air mixture.
The year after, California introduced new stricter maximum levels for these substances (hydrocarbons 0.41 g/mile; carbon monoxide 9.0 g/mile; nitric oxides 1.5 g/mile) which by then were the strictest in the world. Volvo cars using three-way catalysts and Lambda sensor emitted considerably less than these levels. The emissions of nitric oxides were very low and as a consequence, Volvo was awarded for its pioneering work by the Carter administration.
Volvo 240 was a step, or more, ahead of the industry in terms of safety and environmental care and was a model that was continuously developed and updated during its existence. The cars were refined and revitalized over the years. New technical solutions were added; turbo-charged and diesel engines were introduced at an early stage. The reputation for being a boring car was efficiently erased when the Volvo 245 showed itself to be the world's quickest estate car and when the "Flying brick" swept the competition off the racing circuits of Europe on its way to become the Group A champion.
During the final stages of its life, the 240 was only offered as five-door estate car and experienced a real renaissance when it suddenly became the car to have among many European so-called yuppies. This was particularly the case in Italy where the 240 Polar, as it was called, was the trendiest car among young conscious people and achieved a cult status. The 240 family was by then handled both product and production wise by a separate company within the company, the 240-bolaget; a separate but integrated unit.
However, on May 5th 1993 it was all over. After 19 very successful years and 2,862,573 cars, of which 177,402 were 260s, the 240 took its final bow, almost at the same time as the chairman of AB Volvo, Pehr G Gyllenhammar did. He had been one of the biggest fans of the 240 over the years and had used many different versions. Several of them were real 'specials'.
The very last 240 to be built was also a special, a shortened version made just for fun by the project. This short 240 was a thank you for the efforts done by the entire 240 crew and symbolized shortened leadtimes. The last 245 to reach a customer went to a Swedish lady who were handed her keys by P G Gyllenhammar at a small ceremony beside Line 2:4-2 under the motto "The last 240 and the best".
There are still plenty of Volvo 240 cars on the road all around the world, at least 20 years old and still used as faithful everyday cars. There are even dedicated clubs that work actively to preserve the 240 and to secure its future, just like the 240 for many years worked to secure the future of Volvo Cars.

Williams’results
Williams Grand Prix Holdings PLC (WGPH, Ticker: WGF1) today announced the Group’s financial results for the year ended 31 December 2012. WGPH is the holding company of the Williams group of companies, which includes Williams Grand Prix Engineering Limited and Williams Hybrid Power Limited.
The core business, which combines the traditional Formula One business and activity that commercialises Formula One derived IP, has seen turnover increase from £102.3m to £124.3m. This has led to an increase in overall Group turnover of 22% to £127m (2011: £104.5m). The Group, however, made a loss before taxation in the year of £5.0m (2011: profit £7.4m) as a result of the impact of a technical accounting treatment of one of the Group’s key receipts during the year.
Williams Hybrid Power and Williams Technology Centre Qatar, continue to grow as expected and their losses reflect the investments made in these businesses for long term growth and value and are in line with the board’s business plan.
Our key figures are:
Overall Group results:
• Turnover increased by 22% to £127m (2011: £104.5m)
• Loss before taxation of £5.0m (2011: profit £7.4m)
• Loss per share of 47.39 pence (2011: Earnings per share of 81.10 pence)
Core business results:
• Turnover increased by 21.5% to £124.3m (2011: £102.3m)
• Loss before taxation of £0.6m (2011: profit £9.7m)
Investment business results:
• The Williams Technology Centre Qatar (WTCQ) turnover improved to £0.3m (2011: £0.1m). Loss before taxation of £1.8m (2011: £0.4m)
• Williams Hybrid Power (WHP) turnover up from £2.1m (2011) to £2.4m. Loss before taxation stands at £2.6m (2011: £1.9m)
Founder and Team Principal of the Williams F1 Team, Sir Frank Williams, said; “2012 saw Williams make encouraging progress on and off the track and we are determined to continue that upward trend in 2013. The win at the 2012 Spanish Grand Prix was a particular highlight and we continue to develop strong sponsorship partnerships and engineering relationships. At the end of the year the Williams F1 Team finished 8th in the FIA Formula One World Constructors’ Championship. There is still a way to go for the team to get to where we should be, but improvements on previous seasons are evident.”
Alex Burns, Chief Executive Officer, added; “Williams has embarked on a long term strategy that combines visible success on the track with an ambitious diversification programme. The Williams brand and the intellectual property built up over many years of performing at the cutting edge of technological developments gives the Group a unique position in the global marketplace. Strong turnover in the year of £127.0 million reflects our revenue from Formula One and our ability to earn commercial returns from diversification. During the year the Group made an overall loss before taxation of £5.0 million. Revenue of £9.4 million, received under the Bilateral Agreement with Formula One World Championship Limited, the sport’s commercial rights holder, has not been included in these results because of the technical interpretation of today’s accounting standards.
“Highlights for Williams Hybrid Power included its flywheel technology being used in the winning Audi Le Mans entry, an agreement with Go-Ahead Group to develop flywheel technology for buses and a similar agreement with Alstom to develop a system for trams. Another milestone was the Group’s fulfillment of its agreement with Jaguar Cars Limited to provide the motorsport expertise behind the development of the C-X75 hybrid supercar prototype. To accommodate the Group’s plans to exploit the commercial applications of its technologies, 2012 also saw the start of construction of a new Williams Advanced Engineering facility at the Oxfordshire site. The growth of these new investment businesses at a time of global financial instability, evidenced by a rapid increase in revenue under the Williams Advanced Engineering brand from £16m (2011) to £38m (2012), puts us on a sound footing to deliver to our long term strategy.”

Rolls-Royce Wraith
This week marks the UK debut of Rolls-Royce Motor Cars’ latest model, Wraith. The most powerful and dynamic Rolls-Royce in history will be showcased in the window display of luxury department store Harrods in Knightsbridge, London for one week.
At launch in Geneva this March, Torsten Müller-Ötvös, CEO Rolls-Royce Motor Cars, remarked that “Wraith promises the sense of adventure and speed that drove our founding forefather. But of course, Wraith’s starting point is luxury, refinement and quality, traits that remain as important to Rolls-Royce customers today as they were more than a century ago.”
It is these traits of luxury, refinement and quality that made Harrods the natural choice for Wraith’s UK debut. Renowned globally as purveyors of the world’s finest goods, both Harrods and Rolls-Royce have exceeded client expectations for over a century.
Harrods Media Sales Director, Guy Cheston, said, “Harrods is at the forefront of promotional opportunities for the world’s most esteemed automotive brands, and we are delighted to have on display the most anticipated car release of 2013. The Rolls-Royce Wraith epitomises luxury, style and innovation, and is certain to attract attention from our international clientele.”
The Wraith on display features Midnight Sapphire paintwork with an upper two-tone in Cassiopeia Silver, accentuating Wraith’s purposeful fastback profile.
The interior is finished with an Arctic White and Navy Blue leather scheme, with intertwined RRs embroidered in the headrests in Navy and, unique for this model, the striking new Canadel Panelling in Santos Palisander. Completing this spectacular interior is a starlight headliner, casting a glow from hundreds of individual ‘stars’ in the roof lining at the press of a button.

Audi’s first-quarter results
Although the economic climate has deteriorated further in a number of European countries, Audi enjoyed a very successful opening quarter with some 369,500 deliveries to customers. With €11.734 billion revenue for the first three months of 2013 the Ingolstadt-based carmaker nearly matched the previous year’s record level. The operating profit of €1.307 billion translates into an operating return on sales of 11.1 percent – well above the strategic target corridor of eight to ten percent. Despite ongoing economic uncertainties, Audi is pushing ahead with its growth strategy and investing heavily in the future. The company all the while remains committed to its target corridor for operating return on sales.
“Despite the difficult economic environment and our substantial advance payments, we have achieved an operating return on sales of 11.1 percent,” declared Axel Strotbek, AUDI AG Board Member for Finance and Organization, upon release of the Q1 Interim Report in Ingolstadt. He added that Audi plans on spending a substantial amount on new products and technologies throughout 2013. Moreover, according to Mr. Strotbek, the brand with the four rings will expand its worldwide production network to pave the way for further growth.
From January through March 2013, the Audi brand delivered 369,494
(2012: 346,105) vehicles worldwide, besting the previous year’s record total by 6.8 percent. Audi enjoyed sales growth in Europe, Asia and North America alike. Models that generated considerable interest among customers included the new A3, the A1 Sportback and the A4 model line as well as the Q3 and Q5 SUVs.
At €11.734 billion, Q1 2013 revenue for the Audi Group almost equaled the record of €12.389 billion set in 2012. Against a backdrop of increased expenditures for new products and technologies – as well as considerable advance payments toward expanding Audi’s international production network – the Audi Group achieved an operating profit of €1.307 (2012: 1.410) billion. This equates to a year-on-year drop of 7.3 percent. Nevertheless, the operating return on sales of 11.1 (2012: 11.4) percent once again exceeded the strategic target corridor of eight to ten percent.
The first three months of the year saw the Audi Group earn €1.432 (2012: €1.511) billion pre-tax – almost on par with the corresponding period of the previous year. This resulted in a pre-tax return on sales of 12.2 (2012: 12.2) percent.
Audi intends to sell even more vehicles this year than in 2012. Sales will likely rise once more thanks to the new A3 and the A3 Sportback as well as the A3 Sedan, which made its world debut just a few days ago in Shanghai. The Audi Group anticipates that more deliveries will lead to slight revenue growth. Due to increased expenditures for new products and the expansion of Audi’s worldwide production network, the company expects an operating return on sales of nearly ten percent for this fiscal year.
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