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BUSINESS

German new car registrations rebound in April

German automakers led a continued rebound in new car registrations in April following a dismal previous year, figures released on Monday by the VDA automobile federation showed.

German new car registrations rebound in April
Smart car registrations grew 70 percent in April. Photo: DPA

A total of 317,960 new cars were registered, a jump of 20 percent over the same month last year, VDA said.

With the exception of Audi and Porsche, which posted 9.1 percent and 13.5 percent growth, respectively, every German automaker saw registrations outpace the overall growth rate.

Volkswagen led the way with 64,428 new car registrations, 25 percent growth over April 2007. Daimler luxury brand Mercedes-Benz saw 26 percent growth, with 36,038 new registrations, while the carmaker’s subcompact Smart model saw 69.8 percent growth over April 2007, with 3,858 registrations.

With Mini, BMW saw 27.7 percent growth over last year to 30,689 new registrations. GM subsidiary Opel showed 25.5 percent growth to 27,994 new cars registered.

“The domestic market is on the path to stabilization,” a VDA statement said.

The federation pointed to a drop in unemployment and improved prospects for a pick-up in consumer spending as factors that contributed to the results.

The April figures are an upturn over March, which most automakers saw declining new car registrations – attributed in part to early Easter holidays. There were three more working days in April this year than in 2007.

In the first four months of 2008, new car registrations have increased by an annualized 7.0 percent, with more than one million deliveries.

“That gives hope for a more stable year than in 2007, even though a vigorous rebound is not yet underway,” VDA president Matthias Wissmann was quoted as saying.

Last year was the worst for the German car market since the country was reunified in 1990.

A study by management consulting firm McKinsey & Co. summarized on Sunday in the German newspaper Die Welt predicted Germany’s auto industry would no longer be a leading driver of new jobs.

Titled Deutschland 2020, the report predicted a maximal annual growth potential of 1.3 percent through 2020 for Germany’s auto industry, the lowest among 11 industries surveyed in the report. Without economic reforms, the report predicted auto industry growth of only 0.3 percent through 2020 and a loss of 100,000 industry jobs.

dpa/afp

ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

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The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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