| INDUSTRY Go To Top Manu P. Toms & Priya Nair The Hindu Business Line (Web & Print Edition) See similar story in: The Economic Times (Web & Print Edition), Business Standard (Web & Print Edition) (Apr 26)
Mumbai: The final tally will be made public early next week but the guessing game for the number of Nano bookings continues unabated.
Will it be only two lakh? Or, as the optimists suggest, over five lakh? Dealers Business Line spoke to had little clue about what was happening across the country. What they did notice though was that queues were larger than usual on Saturday since it was the last day.
While a section of dealers insisted that the response had been good, others were not as enthusiastic.
Bookings for the Nano were also done online and experts said that this would also constitute a significant share of the overall number. A Mumbai-based dealer reported over 3,500 bookings from the time it began on April 9. We are given to understand that it will exceed eight lakh across the country, he said.
A dealer in New Delhi said that more than 1,000 customers had booked the Nano from his outlet. Though I would have been happier with more, I still think it is a fairly good number. My forecast is that it will be anything between 4 and 5 lakh across the country, he added.
Site crashes The last-day rush for online bookings literally clogged the Tata Nano Web site causing it to crash for a brief period. As a result, buyers had to rush to the dealerships to complete the formalities. A few dealers said that they would keep their outlets open till the midnight of April 25 to ensure optimal bookings. Most of the public sector banks involved in the booking process were not exactly enthusiastic about the response, describing it as lukewarm and disappointing.
Union Bank of India has seen only about 3,000-4,000 bookings so far, according to an official. The response from rural and semi-urban centres was not as much as we expected while big centres like Mumbai hardly showed any interest, he said.
It was the same story at Corporation Bank which, going by what one of its executives said, had only garnered a few thousand bookings.
However, State Bank of India had little reason to complain. We sold a good number of forms and saw a good response, an official said.
Interestingly, the Nano Web site had a poll to predict the total number of bookings where a near identical percentage (41) believed that it would be either in the range of 1-5 lakh or 5-15 lakh. Only 18 per cent thought it would exceed 15 lakh.
As far as we are concerned, the overall response has been overwhelming and we are happy. It is customers who will eventually determine the numbers, said a Tata Motors spokesman.
He reiterated that the company did not plan to extend the booking period. The total number will be compiled by Tuesday and then made public.
Challenges From Tata Motors point of view, what could be the limiting factor is that the first year of production will see only 50,000 cars because the mother plant at Sanand in Gujarat is expected to be fully operational only by January 2010 with a full capacity of 2.50 lakh units. The plant at Pantnagar in Uttarakhand has an annual capacity of 50,000 cars.
The other challenge is to ensure that there are absolutely no glitches from the batch being produced in Pantnagar.
The present arrangement involves select engine components being assembled at the Pune plant and then transported to Pantnagar for final fitting. http://www.thehindubusinessline.com/2009/04/26/stories/2009042650810200.htm http://www.business-standard.com/india/news/nano-bookings-expected-to-touchmillion/356240/
TATA MOTORS STILL COUNTING NANO BOOKING NUMBERS PTI See this story in: The Hindu Business Line (Web & Print Edition), The Tribune (Web Edition), Daily News & Analysis (Web Edition) (Apr 26)
Mumbai: The booking for the world's cheapest car Nano launched by the Tatas has ended but the numbers are still being counted, a Tata Motors spokesperson said. The market estimates on the bookings vary from as few as a couple of lakhs to over one million. Tata motors itself has not given any information so far.
The spokesperson said the company is still compiling the number and the exercise may take a few days. Enquiries with some of the banks with which the company has tied up for booking and financing of the car also failed to reveal any information on the number of bookings.
However, carwale.com, one of the Web sites which accepted online booking for Nano, said it has done 10,000 bookings of Tata's Nano car. We have secured 10,000 bookings of Nano across 500 cities, carwale.com Vice-President, Mr Tufail Khan said.
He said 50 per cent of the booking has been done through credit cards and the rest through cheque payment. About 55 per cent of the bookings have been for the top- end version of the Nano, 25 per cent for the middle version and the remaining 20 per cent is for the base model. http://www.thehindubusinessline.com/blnus/02261806.htm http://www.tribuneindia.com/2009/20090427/biz.htm#4 http://www.dnaindia.com/report.asp?newsid=1250726
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| INTERVIEWS/FEATURES Go To Top |
| CARS, SUVs, MUVs Go To Top PTI See this story in: The Economic Times (Web & Print Edition), The Hindu Business Line (Web & Print Edition), Hindustan Times (Web Edition), The Pioneer (Web & Print Edition), The Times of India (Web Edition), Business Standard (Delhi Print Edition) (Apr 27)
New Delhi: French car maker Renault is looking to introduce up to two new models in India with its partner Mahindra & Mahindra this year, although it has indefinitely postponed plans to launch products from its Chennai facility. http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/ http://www.thehindubusinessline.com/blnus/19261206.htm http://www.hindustantimes.com/redir.aspx?ID=51fe0d34-1ded-4abe-8ac1-ba2906aa12bc http://www.dailypioneer.com/172240/Snapshots.html
'GM INDIA INSULATED FROM ALL TROUBLES': KARL SLYM Shalini Sengupta The Times of India (Web & Print Edition) (Apr 27)
New Delhi : Despite bankruptcy looming large on the parent company, General Motors India is bullish on the Indian market, driving home a message that operations in the country are insulated from all the troubles at home. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
NEW COMPACT CARS REV UP COMPONENT FIRMS Garima Singh Neogy The Telegraph (Web Edition) (Apr 27)
New Delhi: Foreign car companies plans to make compact models in the country are expected to improve the fortunes of the local component makers.
Companies such as Toyota, Volkswagen (VW), Ford, BMW and Skoda want to launch small cars in the domestic market first and then export them. Firms can keep the prices competitive by using local components.
If manufacturers plan to develop new platforms for their plants in India, it means good business for component makers. This will not only get them more work, but will also allow them to participate in a high level of value creation, said Vishnu Mathur, president of the Auto Component Manufacturers Association.
European car major VW plans to roll out the hatchback version of the Polo by March 2010. A company official said VW India was keen to source 70-80 per cent of the auto parts locally for the Polo. Such a strategy would not only bring down the overall cost of the vehicle but also help keep the running cost modest, he said.
Skoda Auto India part of the Volkswagen group will begin production of the Fabia from June. The firm is betting big on local component makers for the Rs 3-lakh car to lower the cost of production.
We source components from the local vendors and are looking to take this up to over 50 per cent in the next two years, said Thomas Kuehl, member, board of directors (sales and marketing), Skoda India. At present, around five per cent of the Fabias components are sourced locally.
Most component manufacturers believe that the market has bottomed out and an upswing is on the cards. There is a feeling that the worst has probably passed. However, we are working on operating plans that also factor in severe fluctuations in the market, said Arvind Balaji, joint managing director of Lucas-TVS. http://www.telegraphindia.com/1090427/jsp/business/story_10881342.jsp
INDIAN CARMAKERS MISS THE HIGHWAY TO CHINA Pankaj Doval See similar story in: The Times of India (Web Edition) (Apr 26)
In contrast to Chinas new-frontier status, Indian companies seem all but absent from China, one of the few countries in the world where the automobile market is growing. This is at odds with Tata Motors and Mahindras proclaimed strategies of expanding beyond India. Automakers from around the world including ailing ones such as General Motors and Chrysler put 870 cars on display in Shanghai. Why did the Indians stay away? Is there a China phobia because of all the stiff competition that comes with a rapidly growing market? Or, are the Indians deterred by stiff entry barriers? Or, are they failing to recognize the new world order for the car industry?
Industry analysts say it is not lack of ambition that is keeping the Indians away. Tata Motors near-finalized entry three years ago fell throughat the last minute because China announced new policy. Tata stayed away ever since though it has an indirect presence there through Jaguar, Land Rover and Tata-Daewoo Commercial Vehicles subsidiary. http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/
The Hindu, Metro Plus (Apr 27)
Open-top motoring isnt exactly practical in India a country where people cannot do without hitting the AC button. However, its the exclusivity that makes these convertibles so desirable. Theres no denying the charm of dri ving topless in the right weather and it is sheer desirability that forms the aura of the BMW 650i convertible. It looks stunning, especially with the hood down, and with the long silhouette, those mean-looking hooded brows, the super-wide V on the bonnet and the gorgeous skinning results in the perfect interplay of curves and surfaces. The soft-top doesnt take too much away from the design and the 6-series looks great even with the roof up.
The long doors of this car are made of aluminium while the fenders and boot lid are made of plastic to keep overall weight low. But at 1,935 kg, its far from the definition of being lightweight. This 6-series is powered by a large-capacity 4.8-litre V8 that produces 367bhp at 6300rpm through the rear wheels. It is built on a slightly shortened 5-series platform, with struts and a lower wishbone up front and a multi-link at the rear.
The 650i gets into its stride at around 60 or 70kph, after which acceleration gets progressively stronger, touching the 100kph in 7.3 seconds, 150kph in 14.1sec and 200kph in 25.8 sec. In reality, the 650i is more of a Grand Tourer than a speedy sportscar, and does an amazing job at it. It attains high velocities effortlessly, often even on less-than-full throttle, it has massive lungs and never runs out of breath and the sometimes lazy six-speed auto-box syncs perfectly too. You initially feel disappointed by the lack of punch and tend to ignore the build-up of power and speed till you look at the ludicrous figures on the speedo.
Incredible grip The 650i is very mannered on the road with its near-perfect weight distribution, incredible grip and well-contained roll and pitch. With accurate, bristling steering feel, and the perfectly-weighted brakes, you feel compelled to push the car harder and harder.
Thump and a bit of kick can be felt over sharp-edged holes, but you are comfortable in the cabin for the most part and ride quality is actually quite good.
With the suspension not being raised to deal with Indian roads, the cars belly is closer to the ground, meaning that youll have to exercise caution when going over big speedbreakers.
With the roof up, the 650is not too far away from a being a coup. At high speeds theres a bit of buffeting and wind noise but not enough for you to have to raise your voice to have a conversation. The roof drops at the touch of a button (below 32 kph) and the character of the car changes completely. Country roads with trees fluttering past feel magical, the air rushes past at hurricane speeds without entering the cabin and long drives over country roads in cooler weather are nothing short of Bavarian heaven. Though legroom is tight at the rear, the seats are quite comfortable.
The large XXL-sized front seats are exceptionally comfy and interior quality levels are top-notch too. Interior wise, everything is solidly built except for wood inserts that for some reason look out of place. Luggage space, despite the folded roof, is an impressive 300 litres.
Fuel economy figures of 3.8 kpl in the city and 6.9 kpl on the highway shouldnt burst the happiness bubbles of individuals with heavy wallets who spend five times the amount of a regular car and buy the BMW 650i.
Verdict The BMW 650i is one of the finest Grand Touring cars there is. It packages effortless performance, high levels of comfort and luxury that can only be rivalled by full-fledged limos, and an electronic canvas top that is nigh on perfect, giving you near-hard-top security or total exposure to the elements at the touch of a button. Refinement levels are excellent, the car has a presence that just cant be ignored and the rear seats are usable for short journeys. The 650i is also pretty comfortable being driven on our roads and in our conditions, making it a car you can use often. It may lack the agility of an out-and-out sports car and straight-line performance may not be frenzied enough if ultimate performance is what you are looking for. But then youre looking in the wrong place. The biggest downer, however, is the sticker price, a distinctly unfriendly Rs. 1.02 crore. Likely to make you think thrice, whoever you are. http://www.hindu.com/mp/2009/04/22/stories/2009042250070200.htm
The Hindu, Metro plus (Apr 27)
The 101EX experimental car that was shown by Rolls-Royce for the first time at the Geneva Motor show in 2006 has come to life as the Phantom Coupe. The Coupe will round off the Phantom range which includes the Phantom, Phantom EWB and the Drophead Coupe.
The Phantom Coupe is based on a shortened Phantom platform the wheelbase is 250mm shorter and features two rear-hinged coach doors. Most of the cars construction features aluminium to save weight. The bonnet, A-pillar and boot are still made of steel, though. The car also features retuned suspension with stiffer springs and a thicker rear anti-roll bar to make it more involving to drive. A sport function which makes the transmission hold on to gears for longer and quickens the shifts has also been added.
In addition to this, throttle response has been sharpened. Power is provided by the Phantoms 6.75-litre V12 that produces 453bhp and 73.4kgm of torque.
The coupe is expected to cost 20 per cent less than the traditional Phantom and will retail for approximately Rs. 3 crore in India. http://www.hindu.com/mp/2008/03/26/stories/2008032650220300.htm
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| COMMERCIAL VEHICLES Go To Top |
| CONSTRUCTION & AGRI MACHINERY Go To Top |
| 2/3 WHEELERS Go To Top Sindhu Bhattacharya Daily News & Analysis
New Delhi: Pawan Munjal is understandably proud with the financial performance of Hero Honda Motors in an otherwise declining two-wheeler market last fiscal. Enhanced focus on rural markets, continued marketing spends and new launches have helped the company gain market share and volumes. But the new fiscal could bring several challenges: A self goal of selling over 4million units in the challenging market, the imminent entry of Honda Motorcycle & Scooter India (HMSI) into the bread and butter 100 cc segment and continued paucity of vehicle finance. Excerpts from an interview with DNA:
On sustained growth in 2008-09 despite adverse market conditions: We did not expect the company to generate this kind of growth. Firstly, we saw a good response to our promotional activities and, sensing this as an opportunity, did not cut back on marketing budget. Going forward, the marketing and promotion spend will go up. Then, we tapped the opportunity in rural markets where the government's focus over the last two-and-a-half years is bearing fruit. We will be adding another 500 touch points to the 3,500 already in existence, and a majority of the new ones would be in rural and semi-urban markets. We see demand coming from all segments (entry, deluxe and premium) but rural markets will continue to provide a bigger spurt because they are less dependent on organised finance.
On two-wheeler market situation going forward:
On continued focus on the entry level segment:
On sister company Honda Motorcycle & Scooter India (HMSI) getting into 100 cc and cannibalisation:
We try and avoid competition through discussions under a joint model committee......at the end of the day, HMSI's 100 cc will be just one more model in the market.
On plans to jointly marketing, distribution of bikes with HMSI:
On reports that Hero Honda will be focusing more on rural markets, letting HMSI make urban inroads:
Let's look at our premium bike market share - this segment needs more financing but we grew here too. We have already narrowed the gap with the market leader (read Bajaj Auto) and are now aiming for leadership position in this segment as well.
On a low cost, 'Nano' bike:
Also, people presume that because we service rural markets, we should launch a moped like product at low prices. But rural roads actually need a sturdier vehicle. We have experienced mopeds before -- they are nothing more than glorified cycles. Performance should not be compromised because of price. http://www.dnaindia.com/report.asp?newsid=1250847
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| COMPONENTS Go To Top PTI
The duty will adversely affect the exhaust system makers, who import high-grade stainless steel, International Tube Association vice-president Yogesh Bhatia said.
SKF TO INVEST RS 150 CR IN HARIDWAR UNIT Chanchal Pal Chauhan The Economic Times (Apr 27)
New Delhi: Indian arm of Swedish automotive component maker SKF is investing Rs 150 crore in a new ball bearings manufacturing plant at Haridwar, a senior executive of the company said. Mumbai-based SKF India, 51% owned by SKF, had put the investment on hold for the past two years due to slowing demand. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/SKF-to-invest-Rs-150-cr-in-Haridwar-unit/articleshow/4452526.cms
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| ALLIED INDUSTRY Go To Top Rajesh Ravi The Financial Express (Apr 27)
Kochi: Increasing consumption of rubber in India not matched with adequate response on the supply side is a matter of concern, say officials of Automotive Tyre Manufacturers Association (ATMA). Experts also concur with the concern saying that the area under rubber production in India is likely to remain stable in the long run, as new planting area will hardly compensate for the area discarded.
India is likely to become the second largest consumer of rubber in the world due to an increased appetite for the commodity, while the rest of the world slows down on consuming rubber, according to reports of the International Rubber Study Group (IRSG). ATMA says that the share of tyre sector in consumption of natural rubber is seen increasing in India. In 2002-03, the tyre sector consumed 51% of the total rubber produced in the country and by 2008-09, the share of the tyre sector increased to almost 58%.
Rubber consumption by the fast growing automobile sector would rally in the coming years with India becoming the hub for car exports. India has the fastest growing automobile sector in the world. ATMA reports that the new-planted area in 2008 was just 3.1% of the total area while the re-planted area for the year stands at 1.3% of the total area. For 2009, the new-planted area is estimated to drop to 1.9%.
Rubber expert S Sivakumaran of Greenyeild Berhad, Malaysia, said in a presentation made at the 'Rubber Summit' in Kochi that the area under rubber farming was likely to decline marginally to 606,200 hectare by 2020. His estimate is based on a study conducted by the International Rubber Study Group (IRSG) in 2006, which says that area under rubber will be 601,800 hectare by 2010.
Presently, India is the fifth largest in the world for area under rubber farming with 630,000 hectare and fourth in natural rubber production with 865,005 tonne.
Sivakumar forecasts that for the 15-year period of 2005-2020, 74,000 hectare of land will be freshly planted or re-planted in India. During the same period due to economic reasons, 66,400 hectare will be discarded from rubber farming. Rubber production in the meantime is estimated to fall 789,000 tonne by 2015 and then recoup to 803,000 tonne by 2020. The concerns of the rubber sector are uneconomic land holdings, dependence on a single clone and limitations of the non-traditional areas. Kerala accounts for 92% of natural rubber output and experts feel that it is saturated. Sivakumar asserts that Kerala does not have fresh land for rubber cultivation. http://www.financialexpress.com/news/demandsupply-mismatch-to-rise-on-fall-in-rubber-acreage/451405/2
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| FINANCE & INSURANCE Go To Top Vidhi Godiawala Mint (Apr 27)
Mumbai: Faced with onerous expenses, Tata Motors Ltd has hit upon a novel fund in raising plan. The countrys biggest automobile maker is looking to come out with Indias first ever guaranteed non-convertible debenture (NCD) issue, and is in talks with State Bank of India (SBI), according to people familiar with the development.
If the talks are successful, SBI will stand guarantee to Tata Motors planned Rs2,000 crore NCD issue, allowing the company to offer a lower coupon rate. Without a bank guarantee, analysts say the coupon rate could be as high as 11% given that Tata Motors does not have an AAA credit rating given to top-rated borrowers.
The issue of NCDs, with a tenure of five-seven years, is likely within a couple of months, according to the people close to the matter, who didnt want to be named. Mutual funds and insurance companies are likely to subscribe to the issue, the people say, as it may become more attractive with SBI backing.
Experts say that since such a product has never been available before, the terms and conditions of the issue will be known only when the product is officially announced, and no call can be taken at this point of time on the attractiveness of the issue, or any risk it may entail.
Top officials at Tata Motors, when contacted by CNBC-TV18, refused to either confirm or deny both the likelihood of a bank-guaranteed NCD issue and that talks were under way with SBI. http://www.livemint.com/2009/04/26221029/SBI-may-guarantee-Tata-Motors.html
POPULAR VEHICLES MAY GET RS 110-CR PE FUNDING Boby Kurian & S Sanandkumar The Economic Times (Apr 27)
Bangalore/Kochi: New Silk Route (NSR) private equity is likely to invest about Rs 110 crore in Kochi-based Popular Vehicles and Services, one of Maruti Udyogs largest dealerships in the country, for a significant minority stake, said sources close to the development. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Banking-Finance-/Popular-Vehicles-may-get-Rs-110-cr-PE-funding/articleshow/4452819.cms
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| LUBRICANTS & ALTERNATIVE FUELS Go To Top |
| INTERNATIONAL NEWS Go To Top AP
General Motors revealed in a regulatory filing late Friday that its employee stock-purchase plan has unloaded all shares of the company in favor of short-term and money market investments. The plan's financial manager, State Street Bank and Trust Co., said it began selling off shares of the Detroit automaker in late March "due to the economic climate and the circumstances surrounding GM's business." GM disclosed the development in a filing with the Securities and Exchange Commission.
State Street said the General Motors Savings Plan now consists entirely of short-term, cash-based investments. By the end of May, the GM Common Stock Fund will be eliminated as an option for company employees, the investment manager said.
The selloff underscores the grim outlook for GM, which plans to shut down more than a dozen plants over the summer to conserve cash, slash costs and align production levels with demand. The company is racing against the federal government's June 1 deadline to squeeze larger concessions from bondholders and the United Auto Workers union.
The cost-cutting efforts are expected to lead to thousands more layoffs and temporary factory closures. http://hosted.ap.org/dynamic/stories/G/GM_EMPLOYEE_STOCK?SITE=
TREASURY LOANS GM $2 B MORE (Apr 26)
GERMANY TO EXAMINE POSSIBLE MAGNA STAKE IN OPEL Reuters See this story in: Yahoo India (Apr 27)
German Economy Minister Karl-Theodor zu Guttenberg said on Saturday Austrian-Canadian auto parts supplier Magna is a potential investor in General Motors' struggling German unit Opel.
"Magna is a potential interested partner," he told Der Spiegel news magazine, in comments released on Saturday ahead of the magazine's publication. "We'll obviously examine their possible entry quite seriously."
The Economy Ministry said Guttenberg would take a closer look at Magna's possible interest at the start of next week. A spokesman said there were several other potential investors interested in Opel with whom the ministry would be talking.
GM must sell a significant stake in Opel to convince German politicians to use taxpayers money for 3.3 billion euros ($4.30 billion) in loan guarantees.
GM Chief Executive Fritz Henderson said last week the carmaker had "reached out" to more than six potential buyers, many of whom were financial investors.
But private equity firms are giving Opel the cold shoulder, leaving sovereign wealth funds from the Gulf or Asia as the most interested private investors, managers at buyout firms have told Reuters.
Fiat SpA has emerged as another possible suitor for Opel, whose future depends on GM and the German government finding an investor. But Fiat has sought to play down expectations of an imminent offer for Opel.
Opel Chief Executive Hans Demant said he was pleased about the interest from investors in the troubled car maker and pledged to keep these parties informed of the situation. http://news.yahoo.com/s/nm/20090425/bs_nm/us_opel_germany
CHRYSLER CREDITORS URGED TO MAKE CONCESSIONS (Apr 27)
With just days to go for Chrysler LLC to reach agreements to cut labor and debt costs or face bankruptcy, members of Michigan's Democratic congressional delegation said on Saturday the onus was now on the U.S. automaker's creditors to make concessions.
"The unions have come to the table over and over and over again and have taken huge cuts," said Senator Debbie Stabenow on the sidelines of a Michigan Democratic Party fundraising event in Detroit, the heart of the beleaguered U.S. auto industry.
"It is now incumbent on the creditors, in particular those that have taken public funds, to make some concessions and be a part of the solution," Stabenow said.
Chrysler, which is about 80 percent-controlled by private-equity firm Cerberus Capital Management LP , faces a Thursday deadline by the Obama administration to reach cost-cutting deals and cement an alliance with Italian carmaker Fiat SpA.
If the automaker fails to do that, Chrysler could see further U.S. government support withheld and face potential liquidation.
Michigan Democrats said the announcement on Friday of a tentative concession deal between the Canadian Auto Workers union and Chrysler showed the unions were acting in good faith and it was now up to the creditors to follow suit.
The CAW deal would reduce hourly labor costs by C$19 ($15.70) and save Chrysler about C$240 million annually in benefits, time off, "legacy costs" and improved productivity, but not through lower base wages or reduced pensions, that deal will be put to CAW-represented workers for ratification this weekend.
Talks on concessions between the United Auto Workers union and Chrysler continued on Saturday. UAW President Ron Gettelfinger had been due to attend the fundraising event, but canceled his appearance because of the talks with Chrysler.
'New battle lines' The U.S. auto industry has suffered from its worst sales in decades, with the recession and the credit crunch taking a heavy toll. Like Chrysler, General Motors Corp has received government aid. Ford Motor Co, the third member of the storied Big Three U.S. auto makers, has said it can restructure its business without government help.
"The unions have made a number of concessions to ensure the survival of Chrysler," said Representative Mark Schauer. "The question now is what the company's creditors will do."
"They have to look at the broad economic impact (of Chrysler collapsing) and not just their own short-term financial interest," he said.
In an impassioned speech to cheering attendees at the fundraising dinner, Michigan Democratic Governor Jennifer Granholm criticized Chrysler creditors that had received bailout money as part of the U.S. government's efforts to prevent a collapse of the financial system.
Those same banks and hedge funds have reported profits for the past few months, she said.
"This is going to be a tough week and new battle lines have been drawn," Granholm said. "Who knew they (Chrysler's creditors) would take that bailout money and then kill this great industry?"
Although Senator Carl Levin promised the audience that "we're doing everything we can to make sure they (auto workers) don't get sold out, Michigan Democrats said bankruptcy for the automaker could not be ruled out.
"If it comes to the liquidation of Chrysler as we know it, then we will push urgently for a rapid restructuring of the company," Schauer said. "There are too many jobs at stake." http://in.us.biz.yahoo.com/rb/090425/business_us_autos_democrats_michigan.html?.v=1
CHRYSLER PACT WITH CANADIAN UNION See this story in: The Hindu Business Line (Apr 26)
FIAT CEO FINALISING DETAILS OF CHRYSLER DEAL Dominic OConnell / Sunday Times See this story in: The Times of India (Apr 27)
Senior sources at the Italian group said the two companies were hopeful of securing an agreement early this week. If they do not, Chrysler is expected to file for protection from its creditors under Chapter 11 of the US bankruptcy law, the first step towards liquidation. The sources said, however, that Chapter 11 could feature as part of the Fiat agreement. The deal under discussion will see Fiat take a 20% stake in Chrysler. It will pay nothing for the holding, but give the American group small car designs and other technology. Marchionne, who has turned Fiat round in past two years, is expected to become CEO, replacing Bob Nardelli, the former Home Depot boss who took over when private-equity group Cerberus bought Chrysler two years ago. The Obama administration will underwrite the rescue. If it is satisfied with the terms of Fiat-Chrysler alliance, it will provide the group with $6 billion in soft loans.
FORD EXPECTS TO AVOID BAILOUT DESPITE LOSS (Apr 26)
Ford shares surged by 16 per cent during early trading on Wall Street as the second largest US motor manufacturer beat analysts forecasts with its first-quarter earnings and reduced the rate at which its operations are burning through cash.
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| ECONOMY & FINANCE Go To Top Sapna Dogra Singh Business Standard (Apr 27)
New Delhi: Net direct tax collections are likely to grow at a much slower rate of 5-7 per cent in the current fiscal 2009-10 because of the global economic crisis adversely affecting the Indian economy, said a senior finance ministry official. Even for this growth, the revenue department is planning to collect through tightening of Tax Deducted at Source (TDS) and also through increased scrutiny of tax returns filed with the department.
It would be very difficult to achieve growth this year due to the ongoing global financial meltdown. However, focusing on investigating approach that we adopted last fiscal would help us reach the target of Rs 3,60,000 crore, said the official.
At this level, the new estimate by the revenue department is nearly Rs 20,000 crore less than earlier target fixed in the interim budget 2009-10. Incidentally, this year, the governments net direct tax collections are expected to be around Rs 3,40,000 crore, which has mainly come from TDS collection through concerted efforts.
Property transactions to be under scanner:
Income Tax authorities are now trying to map the property transactions from the local authorities and see whether tax has been paid on them or not. This exercise is likely to yield revenues, but a number could not be quantified.
The department is also looking at capital gains made when a property is taken over under land acquisition. Here, too, it was found that in many transactions tax have not been paid. Earlier, the revenue department found many realtors misusing Section 80 IB provisions that deal with exemption for developing homes for the poor. Many firms had violated this provision and the department had raised tax demand on such violations.
Apart from these, the I-T Department is planning to continue the best practices that yielded results in fiscal 2008-09. Among them is checking whether companies that have deducted tax under TDS have actually paid the tax to the I-T Department or not.
Last fiscal, the department was able to identify more than 100,000 cases in one quarter, the official said. A list of top 1,000 TDS payers has been prepared under both corporate and direct tax heads. From this list, the I-T Department would look out for firms that do not come in the top 1,000 list and do a scrutiny on those companies for any under payment. http://www.business-standard.com/india/news/direct-tax-collections-may-grow-7-in-fy10/356351/
ECONOMY MAY RECOVER BY SEPT: ICICI PRUDENTIAL Business Standard (Apr 27)
Ahmedabad: Offering atleast three pre-requisites, Nilesh Shah, deputy managing director of ICICI Prudential Asset Management Company said the economy may recover by September this year. According to Shah, if the next few months witness a good monsoon, capital flows from abroad and further rate cuts by RBI, Indian economy may come out of the current slowdown. http://www.business-standard.com/india/news/economy-may-recover-by-sept-icici-prudential/59386/on |
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