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Brabus embarks on ultra-luxury real estate venture

Brabus embarks on ultra-luxury real estate venture

The Sun11-05-2025

Brabus, the German brand globally renowned for its high-performance automotive creations, has officially unveiled its most ambitious project yet – Brabus Island. The unveiling, held during a private, invitation-only event in Abu Dhabi, marks a significant milestone as the company steps into the realm of luxury real estate for the first time in its nearly 50-year history.
Situated in the exclusive Al Seef District of Al Raha Beach, Brabus Island occupies approximately 100,000 square metres of prime waterfront property. Just minutes from Zayed International Airport and the city centre of Abu Dhabi, and an hour's drive from Dubai, the Island is poised to become a prestigious landmark in the Emirate.
Described as a bold new expression of the brand's identity, Brabus Island embodies the essence of its design language through architecture, offering a living experience that mirrors the distinctiveness of its vehicles. This transition from automotive design to residential living is viewed as a natural evolution of the Brabus ethos.
Chief Executive Officer Constantin Buschmann described the venture as both a milestone and a logical step forward. He noted that while Brabus has long crafted vehicles that stir emotions and elevate lifestyles, Brabus Island now allows the company to create the lifestyle itself. Abu Dhabi, with its blend of opulence and innovation, provides the ideal setting for this expansion.
Architecturally, the development features sleek, minimalist silhouettes that are immediately recognisable as an extension of Brabus's progressive design DNA. The result is a striking visual addition to the Abu Dhabi skyline – one that asserts the brand's presence beyond the automotive world.
The residences on Brabus Island are fully customisable, using a modular design system inspired by the brand's made-to-order supercars.
Homeowners can choose from three curated aesthetic themes: Black and Bold, White Bliss, and Gray Haven — each offering a unique interpretation of the Brabus lifestyle. From there, clients are invited to personalise every detail to reflect their individual style, effectively creating a Brabus Masterpiece to live in.
This uncompromising commitment to bespoke luxury culminates in what the brand refers to as the Brabus 1-Second-Wow – an immediate, visceral sense of impact that characterises every element of the Island's design and experience.
With the introduction of Brabus Island, the brand has redefined the boundaries of its influence. No longer confined to vehicles, Brabus is now shaping entire environments, turning its signature aesthetic into a fully immersive, architectural reality.

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KNM proposes RM3.16b debt restructuring, sets creditors' meeting for Aug 11
KNM proposes RM3.16b debt restructuring, sets creditors' meeting for Aug 11

Malaysian Reserve

time8 hours ago

  • Malaysian Reserve

KNM proposes RM3.16b debt restructuring, sets creditors' meeting for Aug 11

DEBT-LADEN KNM Group Bhd has issued formal notice to its creditors to convene a court-sanctioned meeting on August 11, 2025, to vote on a proposed scheme of arrangement that forms a central component of the group's wider regularisation plan to exit Practice Note 17 (PN17) status. The scheme – which involves both KNM and its wholly owned unit KNM Process Systems Sdn Bhd (KNMPS) – aims to restructure a combined RM3.16 billion in liabilities as of the June 30, 2023 cut-off date. The Kuala Lumpur High Court has granted the company an order to hold the meeting and extended a restraining order until August 12 to shield the group from legal action by creditors while the restructuring process unfolds. Under the proposed arrangement, creditors will be repaid through a combination of immediate cash proceeds and deferred instruments. The bulk of the initial cash will be sourced from the proposed RM1.3 billion disposal of German-based Deutsche KNM GmbH to Japan's NGK Insulators Ltd. KNM expects RM983.5 million in net proceeds from the sale after deducting transaction costs, escrow requirements and working capital needs. Secured creditors of KNMPS are to be repaid in full in cash upon implementation of the scheme. Unsecured creditors will receive approximately 80.94% of their admitted claims in cash, with the remaining 19.06% to be settled through the issuance of five-year zero-coupon redeemable unsecured loan stocks (RULS). These bonds will not bear interest and will be repaid progressively over five years via a mix of escrowed funds, asset disposals, and internally generated cash. KNM has classified creditors into three groups: secured, unsecured, and intercompany. While secured and unsecured creditors are expected to receive settlements, intercompany balances will only be addressed after other classes are resolved. Some of these balances may ultimately be waived, according to the scheme's terms. The RULS will be listed on the Main Market of Bursa Malaysia under the Exempt Regime, which allows for over-the-counter transfers but not public trading. Redemption will follow a semi-annual waterfall mechanism, using excess cash generated by KNMPS after meeting its six-month working capital needs. Additional funding will come from the potential release of RM156.6 million held in escrow from the German asset sale, along with proposed disposals of other non-core assets in Italy, the UK and Thailand. As part of its restructuring, KNM proposes that the liabilities under the holding company – amounting to RM1.23 billion – be substantially settled via KNMPS. Only RM4.2 million in unsecured claims and RM10.8 million in intercompany dues will be directly addressed by KNMG under the scheme. The proposed arrangement remains subject to the approval of creditors at the August 11 meeting, sanction by the High Court, Bursa Malaysia's clearance for the regularisation plan and bond listing, and shareholders' endorsement of both the restructuring and asset disposal. The group fell into PN17 status in 2022 following severe liquidity challenges, operational delays and audit concerns. It said a comprehensive regularisation plan is in the final stages of formulation and will incorporate both the scheme of arrangement and the German asset disposal. The Court of Appeal is scheduled to hear KNM's appeal for a longer restraining order on September 18. The company's current ad-interim order will remain in place until then, providing a temporary buffer from enforcement actions. –TMR

Global auto giants look to China for future vision
Global auto giants look to China for future vision

The Star

time11 hours ago

  • The Star

Global auto giants look to China for future vision

At the Auto Shanghai show in April, an executive of Volkswagen — one of the world's biggest auto manufacturers — made a frank admission that the German giant had misfired on its country strategy for China. "To be very honest, we didn't have the right product strategy or the right approach to drive the business in China," Oliver Blume, chairman of the board of management of the Volkswagen Group, told China Daily. He was referring to the situation when the same event was held two years ago. "But at this auto show, we're not just talking about strategy or plans on paper — we're showcasing real results, and that makes me very proud of what the teams have accomplished," said Blume. The German automaker's long and profitable association with China began in October 1984 when it inked a deal with the Shanghai Automobile & Tractor Company to begin a joint venture, Shanghai Volkswagen. Now known as SAIC Volkswagen, it is the oldest extant automotive partnership in China. Despite the Germans' initial concerns that the fledgling China operation could not produce even "one Volkswagen-standard car" the first model of the joint venture, the Santana, rolled off the assembly line in late 1985. German technology and management, coupled with China's reform and opening-up and local workers' diligence, was the right formula for success. The Santana was a triumph, and for more than 30 years Volkswagen — joined by other foreign automakers such as Peugeot, Fiat, Toyota and Hyundai — rode on the path of prosperity created by China's ongoing development and modernization. By 2009, China had become the world's largest vehicle market, and non-Chinese brands accounted for 56 percent of total vehicle sales, according to the China Association of Automobile Manufacturers. But, the peak for overseas auto manufacturers in China was followed by a decline as the industry entered the era of NEVs. Volkswagen sales tumbled from 3.85 million units in 2020 to 2.92 million units in 2024. In the meantime, Chinese automaker BYD's sales skyrocketed from 427,000 units in 2020 to 4.27 million units in 2024. Volkswagen wasn't alone. South Korean automaker Hyundai, the world's third-largest carmaker, delivered 507,000 units in China in 2020, but last year its sales shrank to 157,000 units. General Motors, the No 1 carmaker in the United States, saw its sales in China plunge from 2.9 million units to 1.83 million units over the same period. Strategic rethink In recent years, Volkswagen has come to realize that developing cars in Europe and bringing them into China no longer works, as local rivals are coming up with completely new products at a super fast speed and car buyers are young and tech-savvy. Ralf Brandstaetter, CEO of Volkswagen Group China, expressed those ideas in late 2023 in Hefei, capital of East China's Anhui province, where the German company has built an R&D facility dedicated to smart new energy vehicles (NEVs). With an investment of 1 billion euros ($1.09 billion), Volkswagen China Technology Company is the carmaker's largest development center outside Germany. The center is creating an electric vehicle (EV) platform specifically for the Chinese market and to meet the demands of Chinese customers, The first model is scheduled to roll out in 2026. "We will bring the platform to market maturity in just 36 months. This means that we are reducing the development time by around a third," Brandstaetter said. One key driver of efficiency is greater involvement of local suppliers. Volkswagen said around 1,100 Chinese suppliers are involved, and the localization rate will gradually be increased to 100 percent. Volkswagen calls it the second wave of "localization" in the country. In the first wave, the company purchased components from international suppliers' plants in China, which nevertheless required going back and forth with the automaker's headquarters in Germany, a company executive explained. But now, Volkswagen sources components directly from Chinese companies and involves them in the early stages of development, which saves time and improves integration. This year's Auto Shanghai show saw several new Volkswagen models — including the ID. AURA, the and the ID. EVO — on display that offered a glimpse into the company's electric vehicle-focused future. Starting from 2026, over 20 state-of-the-art NEVs will be launched, including battery electric vehicles, plug-in hybrid electric vehicles and extended-range electric vehicles, to suit differing customer demands in China, said the carmaker. More importantly, these models are not engineered in Germany, but developed with "Chinese solutions", making them more appealing to local customers. The carmaker launched its "in China for China" strategy in 2023. "For us, 'in China, for China' is not just a slogan — it's our execution mode," Brandstaetter told China Daily at the auto show. Despite Volkswagen's renewed confidence, the challenges ahead remain formidable and Brandstaetter is acutely aware of the realities, especially the fierce competition faced from Chinese automakers. While the new generation of Volkswagen models tailored for the Chinese market is just around the corner, Brandstaetter remains cautious. "We are confident, but I think the competition is tough here in China, and this will be an ongoing challenge in the coming year," he said. 'Inventing' in China As the world's largest and most fiercely competitive automotive market, China is redefining the global car industry — not just as a sales powerhouse, but increasingly as the epicenter of innovation, research and development, and manufacturing excellence. "The market here is not just the largest in scale — it is the most innovative," said Christophe Perillat, CEO of French auto parts supplier Valeo. His company, which entered China in 1994 and now employs over 18,000 people across 27 production plants and 13 R&D centers, is doubling down on localization efforts. Valeo plans to open a new R&D hub in Shanghai focused on advanced driver-assistance systems and a production facility dedicated to "smart driving" technologies. Perillat stressed that Valeo is "inventing in China" — not merely importing global technologies. Some 4,500 engineers work locally, with a large proportion of software developers, underscoring the growing importance of software and AI in automotive innovation. This trend is echoed by other industry players. Auto parts giant Continental unveiled the name of its new automotive group, Aumovio, at the Shanghai show, signaling a strategic shift to position China at the center of global mobility innovation. Philipp von Hirschheydt, CEO of Aumovio, said "I see (this launch) as a tribute to China and a recognition of the key role this market plays within our global organization." He said the local team has more autonomy because of the need for faster decision-making in a market where development cycles are shorter. German auto parts provider Schaeffler is celebrating its 30th anniversary in China, where it now employs 19,000 people across 17 factories and six research and development centers. "China is no longer just a growth market. It's becoming the epicenter of future automotive technology," said Matthias Zink, CEO of Schaeffler's automotive technologies division. "We believe the future of mobility is being written in China," Zink added. Chinese tech's role One of the most important assets for all global auto companies is China's thriving tech related to the industry. Automotive AI, smart in-car functions, and advanced driver assistance systems (ADAS) have become key battlegrounds where Chinese companies lead, or collaborate closely, with international players. In April, BMW announced integration of the locally developed AI model DeepSeek into its China-made Neue Klasse vehicles from 2026. The move marked a significant milestone in embedding Chinese AI into global products. The Neue Klasse models will also feature AI agents developed in partnership with Alibaba, that will offer digital manual support and travel planning tailored for Chinese consumers. Mercedes-Benz's long-wheelbase CLA — with ByteDance's Doubao large language model — further exemplifies how global brands tap Chinese AI to enhance the user experience. "That is why you have to be in China," said Ola Kaellenius, chairman of the board of management at Mercedes-Benz AG in an interview with China Daily. "You have to be in China not just because of the access to the market but because of the technology, (and) innovation." Kaellenius described China's role as a source of "inspiration not just to delight customers in China, but to use what we learn and innovate here also for the rest of the world". Chinese smart-driving companies like Horizon Robotics, Momenta, and Huawei have become key technology partners. Volkswagen's largest single investment in China was a 2.4 billion euro deal with Horizon Robotics in 2022, followed by the creation of a joint venture, Carizon, which will supply driver-assistance systems from 2026. Volkswagen's premium Audi marque has partnered with Huawei to provide driver-assistance systems for its gasoline-powered A5L sedans and upcoming electric Q6L e-tron SUVs. Honda, meanwhile, is co-developing next-generation ADAS with Momenta, and adopting DeepSeek AI technology for its electric Ye Series, a major pivot to harness Chinese tech capabilities. UBS automotive analyst Paul Gong said: "China has evolved from a market with potential to the largest and most profitable market, then into the most competitive manufacturing hub, and gradually into a training ground and fitness center — and now, into a 'brain', the core of research and development." The rapid localization of R&D and production, combined with deep collaboration with Chinese tech firms, is redefining innovation models for global automakers. Auto manufacturers that harness Chinese innovations in the industry will have a greater chance of restoring their markets and grabbing early advantages of the tech, analysts said. The International Energy Agency predicts that NEVs will account for over 40 percent of global car sales by 2030. In China, the market share could reach 80 percent. It is too early to predict the fate of overseas carmakers in China's NEV era, as most of their new models will not hit the market until 2026, which could be a make-or-break year for many of them. Volkswagen's Blume, nonetheless, said he enjoys competition, likening it to sports, where competition helps improve one's performance. "If you aren't improving week after week, that means you are lazy — and that changes us, and makes us better," he said. Blume said China is like a "fitness center" for the global automotive industry, where global carmakers can sharpen their competitive edge by operating in this market. "Now, we feel fitter than we did two years ago. The customer will decide who wins in the market. You don't need to fear the battlefield when you're prepared," he said. - China Daily/ANN

Auto companies 'in full panic' over rare-earths bottleneck
Auto companies 'in full panic' over rare-earths bottleneck

New Straits Times

time12 hours ago

  • New Straits Times

Auto companies 'in full panic' over rare-earths bottleneck

BERLIN/LONDON/DETROIT: Frank Eckard, CEO of a German magnet maker, has been fielding a flood of calls in recent weeks. Exasperated automakers and parts suppliers have been desperate to find alternative sources of magnets, which are in short supply due to Chinese export curbs. Some told Eckard their factories could be idled by mid-July without backup magnet supplies. "The whole car industry is in full panic," said Eckard, CEO of Magnosphere, based in Troisdorf, Germany. "They are willing to pay any price." Car executives have once again been driven into their war rooms, concerned that China's tight export controls on rare-earth magnets – crucially needed to make cars – could cripple production. US President Donald Trump said Friday that Chinese President Xi Jinping agreed to let rare earths minerals and magnets flow to the United States. A US trade team is scheduled to meet Chinese counterparts for talks in London on Monday. The industry worries that the rare-earths situation could cascade into the third massive supply chain shock in five years. A semiconductor shortage wiped away millions of cars from automakers' production plans, from roughly 2021 to 2023. Before that, the coronavirus pandemic in 2020 shut factories for weeks. Those crises prompted the industry to fortify supply chain strategies. Executives have prioritised backup supplies for key components and reexamined the use of just-in-time inventories, which save money but can leave them without stockpiles when a crisis unfurls. Judging from Eckard's inbound calls, though, "nobody has learned from the past," he said. This time, as the rare-earths bottleneck tightens, the industry has few good options, given the extent to which China dominates the market. The fate of automakers' assembly lines has been left to a small team of Chinese bureaucrats as it reviews hundreds of applications for export permits. Several European auto-supplier plants have already shut down, with more outages coming, said the region's auto supplier association, CLEPA. "Sooner or later, this will confront everyone," said CLEPA Secretary-General Benjamin Krieger. Cars today use rare-earths-based motors in dozens of components – side mirrors, stereo speakers, oil pumps, windshield wipers, and sensors for fuel leakage and braking sensors. China controls up to 70 per cent of global rare-earths mining, 85 per cent of refining capacity and about 90 per cent of rare-earths metal alloy and magnet production, consultancy AlixPartners said. The average electric vehicle uses about .5 kg (just over 1 pound) of rare earths elements, and a fossil-fuel car uses just half that, according to the International Energy Agency. China has clamped down before, including in a 2010 dispute with Japan, during which it curbed rare-earths exports. Japan had to find alternative suppliers, and by 2018, China accounted for only 58 per cent of its rare earth imports. "China has had a rare-earth card to play whenever they wanted to," said Mark Smith, CEO of mining company NioCorp, which is developing a rare-earth project in Nebraska scheduled to start production within three years. Across the industry, automakers have been trying to wean off China for rare-earth magnets, or even develop magnets that do not need those elements. But most efforts are years away from the scale needed. "It's really about identifying ... and finding alternative solutions" outside China, Joseph Palmieri, head of supply chain management at supplier Aptiv, said at a conference in Detroit last week. Automakers including General Motors and BMW and major suppliers such as ZF and BorgWarner are working on motors with low-to-zero rare-earth content, but few have managed to scale production enough to cut costs. The EU has launched initiatives including the Critical Raw Materials Act to boost European rare-earth sources. But it has not moved fast enough, said Noah Barkin, a senior advisor at Rhodium Group, a China-focused US think tank. Even players that have developed marketable products struggle to compete with Chinese producers on price. David Bender, co-head of German metal specialist Heraeus' magnet recycling business, said it is only operating at 1 per cent capacity and will have to close next year if sales do not increase. Minneapolis-based Niron has developed rare-earth free magnets and has raised more than US$250 million from investors including GM, Stellantis and auto supplier Magna. "We've seen a step change in interest from investors and customers" since China's export controls took effect, CEO Jonathan Rowntree said. It is planning a US$1 billion plant scheduled to start production in 2029. England-based Warwick Acoustics has developed rare-earth-free speakers expected to appear in a luxury car later this year. CEO Mike Grant said the company has been in talks with another dozen automakers, although the speakers are not expected to be available in mainstream models for about five years. As auto companies scout longer-term solutions, they are left scrambling to avert imminent factory shutdowns. Automakers must figure out which of their suppliers – and smaller ones a few links up the supply chain – need export permits. Mercedes-Benz, for example, is talking to suppliers about building rare-earth stockpiles. Analysts said the constraints could force automakers to make cars without certain parts and park them until they become available, as GM and others did during the semiconductor crisis. Automakers' reliance on China does not end with rare earth elements. A 2024 European Commission report said China controls more than 50 per cent of global supply of 19 key raw materials, including manganese, graphite and aluminum. Andy Leyland, co-founder of supply chain specialist SC Insights, said any of those elements could be used as leverage by China. "This just is a warning shot," he said.

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