Text D Toyota and How Could This Affect the Car Industry

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1 Text A Rolls-Royce has unveiled an electric Phantom at the Geneva motor show. It is a one-off, an attempt to both test and change consumer habits rather than a test of technology, according to Rolls-Royce s boss. "It is a market research project," chief executive Torsten Muller-Otvos told BBC News. The experimental car also aims to change customers' attitudes by making them aware that even ultra-luxury cars will have to move with the times. "We can't use 12-cylinder engines for ever," Mr Muller-Otvos said. Rival responses Rivals at Bentley and Daimler-owned brand Maybach watched the unveiling of the electric luxury car with great interest. Bentley's chief executive Wolfgang Durheimer told BBC News that the Crewe-based carmaker would "conduct a deep evaluation of future power trains". "Electrification and hybridisation were among the key technologies I introduced at Porsche and I think there is potential for these technologies in Bentleys too," he said. Dieter Zetsche, chief executive of Daimler, told BBC News there was no demand for electric Maybachs so it would not follow suit. "The number of ultra-luxurious cars being made is already very low, so it would be far too costly to introduce a wide choice of engines and other solutions," he said. Attractive research programme The electric Rolls-Royce uses "tried and tested electric technology", Mr Muller-Otvos said. Though unlike most electric cars, it does not require owners to plug it in every day. Instead, the car uses an inductive charging system, with a panel fixed under the car connecting remotely to a panel on the garage floor. "We will now travel around the world with it to ask our customers what they think about it," Mr Muller-Otvos said. "You can't do normal market research with our customers. You've got to create an environment that makes it attractive for them to attend." 3. What is so special about the Rolls-Royce electric Phantom? 4. Are other luxury car manufactures likely to produce their own electric models? 5. In your opinion, is the Phantom likely to be a success?

2 Text B UK rejects EU call for city centre ban on petrol cars The UK has rejected proposals from the EU which call for a ban on petrol and diesel cars from city centres by The European Commission said phasing out "conventionally fuelled" cars from urban areas would cut reliance on oil and help cut carbon emissions by 60%. But UK Transport Minister Norman Baker said it should not be "involved" in individual cities' transport choices. "We will not be banning cars from city centres any more than we will be having rectangular bananas," he said. Travel shift The Commission said there needed to be a "profound shift" in travel patterns to reduce reliance on oil and to lower emissions from transport by 60% by As part of this, it wants half of "middle distance journeys" between cities - above approximately 186 miles - to shift from road to rail. Announcing a series of "challenging" targets, Mr Kallas said there should be a 50% reduction in conventionally-fuelled cars in city centres by 2030, disappearing altogether 20 years later. The Commission also hopes to "move close" to eliminating deaths by road accidents by 2050, halving current fatality rates by Other objectives would see all major "hub" airports connected by rail by 2050, freight vehicles in cities becoming "carbon-free" by 2030 while 30% of road freight traveling "medium distances" would move to rail or water-borne modes by that point. While the majority of long-distance and inter-continental journeys will still be undertaken by plane or by ship, the Commission says airlines should steadily increase their use of low-carbon fuels - hitting a 40% target by It also wants Europe's air traffic control operations to be modernised with the introduction of a single integrated system. 'Wrong direction' The centrepiece of the UK's transport plans is a 17bn high-speed rail between London and Birmingham, while ministers are also seeking to encourage greater take-up of electric cars by offering a 5,000 discount to buyers. But ministers indicated they would not be adopting the main plank of the EU plan. "It is right that the EU sets high-level targets for carbon reduction, however it is not right for them to get involved in how this is delivered in individual cities," Mr Baker said. "We are committed to decarbonising road transport by, for example, investing more than 400m over the next four years to support electric vehicles and promoting alternatives to car travel like walking and cycling." 3. What are the main goals of the EU regarding transport as outlined in this article? 4. What are the main goals of the UK? 5. Why, in your opinion, might UK goals differ from EU goals?

3 Text C Nine electric cars will be eligible for subsidies Charging your car overnight could be cheaper than filling it up with petrol, says Transport Secretary Philip Hammond. Details have been released of the first nine electric cars that will be eligible for grants of up to 5,000 in a government subsidy scheme. Under the 43m initiative that starts on 1 January, buyers will get a 25% discount up to the maximum 5,000. However, only three of the nine cars will be immediately ready for delivery, with others following as late as 'Convenience' At the launch of the electric car subsidy, Transport Secretary Philip Hammond spoke of motoring costs of just a couple of pence per mile, echoing claims made in the past about nuclear power "too cheap to measure". But he also acknowledged that there is no point in switching the car fleet to electrics if the power plants emit vast amounts of carbon dioxide. Consequently, electric motoring makes perhaps less sense in the UK now than it might do in the future, once the intended shift towards more renewable energy becomes reality. By then, the low cost of recharging the cars may have become a thing of the past. Of the nine electric cars so far confirmed as qualifying for the subsidy scheme, the three that will be available for delivery in January are the Mitsubishi i-miev, the Smart fortwo electric drive and the Peugeot ion. Where the eligible cars are leased by drivers instead of being bought, the up to 5,000 subsidy will mean a deduction on their monthly leasing fees. The initiative was unveiled by the former Labour administration, with the coalition government announcing in July that its funding would be ring-fenced from any spending cuts. Business Minister Mark Prisk said: "Today's announcement further confirms the UK as a global front runner in the market for ultralow emission cars, and open for business for hi-tech green manufacturing." 3. Why is the government subsidizing the products described in the article? 4. What are the long-term goals of the UK as outlined here with regard to transport policy and how might this affect the car industry?

4 Text D Toyota to curb North America production on parts supply Toyota Motors, the world's biggest carmaker, will slow production at some of its factories in North America due to a shortage of parts. The company said it was not sure how many factories would be affected and how long the slowdown would last. Toyota has already halted production at all of its 12 assembly plants in Japan until 26 March. It has been facing a shortfall in parts after the devastation caused by the earthquake and tsunami in Japan. The company said it was analysing facilities in the US, Canada and Mexico before deciding where the curbs will be implemented. A majority of the parts used for Toyota's North American production lines are delivered by suppliers within the region. The company said that there was ample supply of parts from those regional suppliers, but that it is working with parts makers in Japan to ensure supply chains are restored quickly. "We will continue to work with suppliers in North America and Japan to minimize any disruptions to Toyota's overall North American operations," said Cindy Knight a Toyota spokeswoman. 3. In what way have recent events in Japan affected the car industry in Japan and globally? 4. Can you see any ways in which it might it be risky to replace tried and test suppliers of car parts for a particular model with short-term suppliers?

5 Text E BMW in record profits helped by strong sales in China German carmaker BMW said it made record profits in 2010, helped by strong sales growth in China, and forecast another record-breaking year in Sales to China, Hong Kong and Taiwan jumped by 85.3% over the year. The luxury carmaker's 2010 net profit soared to 3.23bn euros ( 2.75bn, $4.45 billion) from 210m euros in BMW still sells most of its vehicles within Germany, selling 267,160 last year, just ahead of the US with sales of 266,580. China, Hong Kong and Taiwan imported 183,328 vehicles. BMW's revenues were up 19.3% to a record 60.48bn euros. The company's chairman, Norbert Reithofer, said in a statement: "We are extremely pleased with developments over the past financial year." The company is forecasting record sales again this year and is aiming to sell at least 1.5 million vehicles. Its results follow those of rival luxury carmaker Audi, whose results this week also included strong sales in China. Audi was also upbeat about its prospects for In what way might the developments described in the text be significant for the Germany economy as whole? 4. What do the developments in the text suggest about the Chinese economy?

6 Text F General Motors in profit as rebound continues US carmaker General Motors has posted a $510m ( 317m) profit for the fourth quarter, and of $4.7bn for all of The latter figure covers its first full year after bankruptcy, and represents its first full-year profit since 2004 and largest profit since During 2008 GM went into bankruptcy protection and was eventually given $49.5bn in government funding. In 2009 it underwent restructuring, cutting staff and reducing factory capacity as demand for its cars fell. The firm was also helped by reductions in debt and pension liabilities following the bankruptcy process. Now strong sales in China and the US are helping the global car sales market to recover, and GM has benefited. "The story is changing for them and shifting away from the trauma and pain of 2008 and 2009 and to 'How do they compete in a very competitive marketplace?'" said Bernie McGinn, chief investment officer at McGinn Investment Management. The firm made less in the fourth quarter than in the previous three, because of costs associated with launching two new vehicles, the Chevrolet Cruze compact and Chevrolet Volt rechargeable electric car. Meanwhile, revenues for the quarter rose nearly 15% from a year earlier to $37bn. 3. Why might GM s current turnaround be significant for Obama s government? 4. Looking at the sentence The firm was also helped by reductions in debt and pension liabilities following the bankruptcy process, who were probably the real losers in GM s bankruptcy process?