Auto News 5

Honda, announcing its fifth Fit recall in just 12 months, has taken the unprecedented step of appointing its first quality czar to clamp down on the carmaker's problems.

Lotus's design boss, Donato Coco, a former styling chief at Ferrari, will leave the UK sports car maker. Coco, one of a number of star hirings made by former CEO Dany Bahar, will be replaced by the carmaker's current design manager, Russell Carr.

Mercedes-Benz plans to assemble its next generation Sprinter commercial van in North America.

Daimler said it booked strong growth in earnings and record unit sales and revenue in the third quarter of 2014. The group boosted Q3 unit sales 7% year on year to 637,400 cars and commercial vehicles worldwide as Mercedes-Benz Cars set a quarterly record.

A leading Swedish economist says he does not believe simmering tensions surrounding Russia's influence in Eastern Ukraine will escalate into anything more serious.

Hyundai posted a 29 percent decline in third-quarter net profit, the steepest drop in at least six quarters. The automaker was hit by slowing sales growth and a stronger local currency but expects earnings to bounce back in the fourth quarter.

Sergio Marchionne, CEO of Fiat Chrysler Automobiles, bought an additional 335,745 ordinary shares in the group at 7.727 euros apiece, giving him a total of 6.8 million shares in the newly merged carmaker.

Honda Motor is recalling its redesigned Fit [Jazz] hybrid for the fifth time in less than a year in Japan, issuing a recall of 425,825 cars on Thursday (23 October) due to two defects.

News 23 Oct, 2014

Mercedes parent company Daimler has sold its stake in Tesla Motors for £485 million profit, surprising investors

The start of Range Rover Evoque production in China will not reduce output at the UK factory where the SUV is built, the plant's operations director said.

Daimler reported a 21 percent increase in third-quarter profit as deliveries of the Mercedes S class more than doubled. Profit at Mercedes Cars, which also includes the Smart brand, widened to 8.

From Lotus F1 Team

Lotus F1 Team Junior driver Esteban Ocon has completed his two-day test for Lotus F1 Team at the Circuit de la Comunitat Valenciana Ricardo Tormo.

He accumulated over 650 kilometres in the two year-old Lotus F1 Team E20 over the course of the last two days, October 22-23.

Esteban Ocon (Photo: Lotus F1 Team)

Esteban is conducting this test as part of the Lotus F1 Team Junior programme and as a reward for winning the FIA Formula 3 Championship in his rookie season. He impressed the Lotus F1 Team engineers present with his application, feedback and pace.

“The test driving the Lotus F1 Team E20 went really well. I had to adapt to the car quite rapidly which I did very well,” said Ocon.

“I felt comfortable with the team straight away and the same with the E20. The word I'd use to describe the feeling of driving an F1 car is that it is just quicker. The car was easy to drive, stable and very enjoyable; it is a great car. I'm really happy with this two-day test and I hope to the get the opportunity to jump into the F1 car again soon.”

Alan Permane, Trackside Operations Director, Lotus F1 Team declared “Esteban drove exceptionally well over the course of the last two days, completing every task we asked of him. It's clear he has a lot of talent as he was quickly up to speed and looked comfortable in the car. His feedback and aptitude were very promising. I'm sure we will see him in an F1 car again before too long.”

Roush Fenway Racing announced that the Cheez-It brand would serve as a primary partner of Greg Biffle's No. 16 Ford for the 2015 Sprint Cup Series season.

The deal is a multi-year partnership with other Kellogg's brands, such as Frosted Flakes, which have appeared on the No. 99 car of Carl Edwards. With Edwards moving on to Joe Gibbs Racing in 2015, that sponsorship will now be on Biffle's No. 16.

Biffle will also carry sponsorship for Ortho Insect Control next season for approximately half of his races.

Biffle's longtime primary sponsor, 3M, is moving to Hendrick Motorsports next season to sponsor the No. 24 Chevrolet of Jeff Gordon.

Biffle qualified for the 2014 Chase for the NASCAR Sprint Cup but was among the four drivers eliminated following the final race of the opening Challenger Round at Dover. He is currently 14th in the points' standings.

From Sauber

During the two days of testing on the Circuit de la Comunidad Valenciana Ricardo Tormo, the drivers Adderly Fong and Roy Nissany were able to go through the planned programme.

On Wednesday, Fong was behind the wheel of the Ferrari-powered Sauber C31 while Nissany took over the car on Thursday.

Sauber C31-Ferrari. (Photo: WRi2)

Fong and Nissany completed each 99 laps of the circuit (396km).

“I am very happy that I had the opportunity to test the Sauber C31,” said Fong.

“I have achieved my objective to complete 300 km without making any mistakes and at a good speed. The car was fantastic to drive, it is a brilliant piece of machinery. With so much horse power and high down force, it is a difficult car to learn, but I was able to improve lap by lap. I really want to thank Sauber and Ferrai for providing me such a good package today. It was great being able to test the car at the track in Valencia, having started Formula 3 testing here in 2009.”

Roy Nissany declared “It was an amazing day. It was my first time driving a Formula One car, and it felt great. I was quite excited at the beginning, and I think I feel more experienced now. Going through the fast corners with this high amount of downforce and adapting my driving style to this car was not easy, but I managed to do everything well. I am very happy with today's outcome, not just from my side, but also from the team's side, as everyone works very professionally. I knew the track in Valencia, so I think that was a good advantage.“

From GMM

Romain Grosjean appears set to remain at Lotus in 2015.

Although the French driver has been leaving his future open while Fernando Alonso's move remains unclear, Lotus owner Gerard Lopez has now suggested Enstone is likely to field an identical driver lineup next season.

Romain Grosjean, 28, has been openly unhappy this year as the team and its engine supplier Renault notably struggled.

But Lotus is switching to field-leading Mercedes power for 2015, while Finland's Turun Sanomat newspaper claims Grosjean's key backer Total remains committed to F1 despite the tragic death of its president Christophe de Margerie.

And Grosjean has now been quoted by UOL Sao Paulo: "There are big changes happening here (in Lotus) for next year, so it's not a bad place to be.

"It's not the place to be world champion in 2015, but I think we can score points and reach the podium a few times. In this case, we can build up for 2016," he added.

Romain Grosjean, Lotus E22-Renault. (Photo: WRi2)

From GMM

Spanish grand prix boss Salvador Servia insists reports the capital Madrid is bidding to join the F1 calendar do not worry him.

El Confidencial reported in recent days that Bernie Ecclestone is in advanced talks with private investors who want to organise a city street race.

Ecclestone, however, has already warned that after the decline of Spain's second race at Valencia, there is now room only for one annual race per country.

Held at the Circuit de Catalunya, the existing Spanish grand prix has a contract until 2016, according to El Confidencial.

Barcelona boss Servia said: "We know nothing. Nobody has told us anything.

"For years we have read headlines saying that we will not have the grand prix anymore, that we have to alternate with Valencia.

"Our reality is that we have two years left on our contract. We do not change it. We are proud of our contract and we will fulfil it," he added.

On the other hand, Servia said Barcelona remains open to welcoming a second Spanish race to the calendar.

"We survived with and we even supported Valencia," he said. "To us it seems even good to have two grands prix".

At the same time, he has his doubts. "You would block up the centre of Madrid for three weeks, as happens in Monaco.

"But it's all assumptions. We talk on the basis of a rumour. Today, there is nothing serious and we are calm," said Salavador Servia.

From GMM

Caterham is on the brink of collapse, as the backmarker team loses even the support of F1 supremo Bernie Ecclestone.

"I think it's better they go," said the 83-year-old Briton as the latest developments emerged late on Wednesday.

"I don't want people going around with begging bowls," Ecclestone told the Sun newspaper in an article credited to business journalist Caroline Reid.

His comments follow Caterham's publication of an explosive press release on Wednesday, as administrators of a company based at the Leafield factory refuse to release the race cars just days before the freight deadline for Austin.

In the release, the new owners accused Tony Fernandes of not transferring shares, leaving them "in the invidious position of funding the team without having legal title to the team it had bought".

Malaysian Fernandes, having earlier distanced himself from the deteriorating situation at Leafield, hit back on Twitter: "If you buy something you should pay for it. Quite simple."

Photo: Caterham F1 Team

Finbarr O'Connell, representing the administrator, is quoted by Speed Week as saying "Obviously, the party Tony Fernandes sold the business to does not have the funds to finance it".

The situation has left Caterham on the verge of collapse, with three grands prix remaining in 2014.

The team admits administrators withholding the cars and guarding the team factory with private security has had "devastating effects on the F1 team's activities".

"After three months of operating the team in good faith, the buyer is now forced to explore all its options including the withdrawal of its management team," said Caterham.

"Lawyers have been instructed by the buyer to bring all necessary claims against all parties, including Mr Fernandes who, as an owner, will run the F1 operation."

Reuters news agency reported that team boss Manfredi Ravetto confirmed that he is no longer running Caterham.

But the harshest blow could be the loss of support of the powerful Ecclestone, who appears in no mind to intervene and keep the grid at 11 teams.

"I don't know who owns them," the F1 chief executive said. "I don't know and I don't care.

"Let me tell you something, they will tell you whatever suits them to tell you."

However, speaking to the BBC, Ecclestobne told something completely different.

"We're trying to help in any way we can, which we do with anybody that has run into a bit of difficulty," Ecclestone told BBC Sport.

"I'd rather not lose the teams," he added.

From GMM

Rumours linking Gerhard Berger with a return to the F1 paddock have resurfaced.

Earlier, McLaren slammed as "complete and utter nonsense" reports the former team driver is a candidate for a prominent role, amid suggestions of unrest between shareholders Ron Dennis and Mansour Ojjeh.

Now, it emerges the Woking team's sporting director Sam Michael is set to depart, while the former BMW chief and Toro Rosso co-owner Berger, 55, suddenly becomes available.

The likeable Austrian, a former teammate at McLaren to the great Ayrton Senna, has reportedly stepped down as president of the FIA's single seater commission.

Italy's Autosprint said Berger informed F3 teams of his plans to vacate the post last weekend at Hockenheim.

"The timing seems to agree with those who had predicted Gerhard Berger's return to formula one," said correspondent Roberto Chinchero.

UPDATE, see below

The Caterham Formula 1 employees have found their factory closed this Thursday morning.

"They (the staff) can't get into the factory today," told Reuters the legal administrator of Caterham Sports Limited (CSL).

"They (1MRT) are using my facilities and haven't paid me," added Finbarr O'Connell, a restructuring and recovery partner with London firm Smith and Williamson.

He said the factory would have been reopened if a deal was reached after meetings on Wednesday with representatives of Caterham and lawyers.

"Effectively 1MRT have been in the building for last few days since I arrived," said the legal administrator. "We are trying to reach an acceptable arrangement for them to be there. We had a meeting yesterday with 1MRT and lawyers and the offer they made was unacceptable. So I've sent them away. Hopefully they can come up with an acceptable proposal."

Photo: Caterham F1 Team

Finbarr O'Connell insisted that despite the air of crisis, there was still time to find a solution.

"I don't think this is gone. It's just a case of who has got the money to make it work," said O'Connell of the team's prospects for survival.

The cars and freight are due to be sent to Texas at the weekend for the U.S. Grand Prix in Austin. Team sources say the race cars are inside the Leafield factory.

Finbarr O'Connell keeps the doors closed and suspects there might be chassis elsewhere and is looking for them.

UPDATE
STATEMENT ON BEHALF OF ENGAVEST SA

23 October 2014

On 29 June 2014 Engavest SA signed a Sale and Purchase Agreement with Tony Fernandes and the Caterham Group to acquire the shares of 1Malaysia Racing Team/Caterham F1.

Engavest SA has fulfilled all the conditions precedent, including paying the purchase price for the shares.

The shares have not been transferred and therefore Mr Fernandes remains the owner of Caterham F1 and is fully responsible for all its activities.