| Sutanuka Ghosal & Tapash Talukdar (May 08)
Kolkata/Ahmedabad: With Nano bookings racing past the two-lakh mark, Tata Motors has just decided to allot land to its 55-odd vendors at Sanand in Gujarat. The company has asked its vendors to set up facilities by October so that it can roll out the Nano smoothly from the Sanand factory by January 2010. The Narendra Modi government has allocated some 1,100 acres at Sanand to Tata Motors, right along the National Highway 8 that connects Kandla, Mundra and Dholera ports. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/
UK APPLIES BRAKES ON JAGUAR FINANCIAL PACKAGE The Hindu Business Line (Web & Print Edition) See similar story in: The Economic Times (Web & Print Edition), The Financial Express (Web & Print Edition), Business Standard (Web & Print Edition), The Tribune (Web Edition), The Indian Express (Web & Print Edition), The Telegraph (Web Edition), Asian Age (Web & Print Edition), The Pioneer (Web & Print Edition) (May 08)
The British press has been agog with reports of a potential collapse for the Tata Motors-owned company with the UK Government apparently not too inclined to support a financial package.
Tata Motors has sought a loan of 340 million from the European Investment Bank (EIB) which can be facilitated by the UK Government (in the form of a guarantee) but is reportedly being stonewalled.
According to the Birmingham Post of May 7, the Government has instead told Tata Motors that it will only guarantee 175 million of the EIB money that is intended for use on green technology developments.
In doing so, the Government has told Tata/JLR that if this loan is taken up, they must immediately pay 15 per cent to the UK Government in the form of a charge, thus reducing the loan guarantee to less than one half of the loan available from the EIB, the Post writes.
Talks on A Tata Motors spokesman said in an email response: Tata Motors does not have any comments to make. However, reliable sources said that talks were on between the company and representatives of the UK Government to work out a solution.
The Financial Times had also been quoted saying: The Government was accused of trying covertly to nationalise Jaguar Land Rover after it emerged that ministers had demanded the right to choose a chairman and veto redundancies at the troubled carmaker during bail-out negotiations.
FT further said that the demands, which were part of a deal under which Jaguar would have received 175 million in government loan guarantees, were rejected by the groups Indian owner, Tata.
It is this attitude of the UK government that has come for harsh criticism. The Birmingham Post continues, Turning its back on JLR and effectively writing the company off in such a manner demonstrates that this already failed Government has now completely lost its way. Either that or perhaps this could be an attempt at backdoor nationalisation
The financial support package sought by the Tatas has been prompted by the need for JLRs working capital requirements. The company has already pumped in 900 million over the last six months and requires another 500 million, in the form of a Government guarantee to be able to borrow from banks, to keep operations going at JLR.
When all borrowing options have dried up, the Tatas believe that the only way forward is to seek the UK Governments intervention in the matter, sources said.
The Telegraph reports that the future of JLR is under threat as talks with the Government about a financial support package were on the brink of collapse.
Tying up in knots A UK-based observer of the automobile industry told Business Line from London that the British Government was needlessly getting wrapped up in knots over an issue where it should logically be bailing out the Tatas.
I wonder if they are trying to emulate the Obama administration in the US where the State is throwing a lifeline to Chrysler and General Motors. The solution to JLR is not Government control but to let an efficient Indian company work out a business plan in these troubled times, he said.
It is also believed that the UK Government would be prepared to underwrite the three-year EIB loan for only six months. It is this attitude that has prompted the Birmingham Post to say, Tata Motors certainly does not deserve to be treated by the UK Government in this way tantamount to being a leper.
That the Government has chosen to effectively walk away from guaranteeing an already fully agreed and justifiable EIB loan to JLR is unacceptable, the report adds.
The fear of plant closures and layoffs could just become a reality should there be no progress on the EIB loan and subsequent guarantees for JLR to stay afloat and get stronger in the coming years. http://www.thehindubusinessline.com/2009/05/08/stories/2009050851680100.htm http://www.financialexpress.com/news/jlrs-talks-with-uk-govt-close-to-collapse/455920/ http://www.business-standard.com/india/news/talks-stillfor-securing-jlr-loan-uk/357462/ http://www.tribuneindia.com/2009/20090508/biz.htm#6 http://www.indianexpress.com/news/jlrs-talks-with-uk-govt-close-to-collapse/455920/ http://www.telegraphindia.com/1090508/jsp/business/story_10934133.jsp http://www.dailypioneer.com/174621/JLRs-fate-dwindling;-talks-with-govt-nearing-collapse.html
ASIAN CAR MAKERS SLAM ON THE BRAKES, BUT RIVALS SHIFT GEARS Janaki Krishnan Mint (Delhi Print Edition) (May 08)
Mumbai: The US and European auto makers should be better placed to meet pent-up demand for cars in India by the year-end, as they go ahead with expansion plans, while Asian rivals delay investments due to the crippling financial crisis.
General Motors Corp. (GM), Ford Motor Co. and Volkswagen AG, buffeted by the crisis and reeling from the worst downturn in car and truck sales, are pinning their hopes on emerging markets such as India to take up some of the demand slack.
Asian rivals such as Toyota Motor Corp., Nissan Motor Co. Ltd and Honda Motor Co. Ltd, who had ambitious plans for India, have quickly changed strategies as they look to conserve cash in the face of the industry downturn.
Japanese auto makers, and particularly Toyota, have decided to reduce the amount of capex (capital expenditure) theyll spend globally over the next couple of years as they see out this downside, rather than continuing investment for when an upswing takes place, said Ian Fletcher, auto analyst at IHS Global Insight, a forecasting and research agency.
India is one place where they should probably be continuing investment as it will probably be one of the markets in which a faster recovery in vehicle sales takes place given the low numbers of vehicles on the road already, he said.
Car sales are forecast to grow 3-5% in the year to next March, after just 1% growth in the year just ended, according to the Society of Indian Automobile Manufacturers data.
Sales of trucks and buses, which have been harder hit by the downturn, fell 26% last year, but could grow at 7-10% this year. April data showed Tata Motors Ltds first rise in truck sales in annual terms since September.
But Asias top car makers are reassessing their capital investments worldwide.
Toyota, Nissan and Honda have been hit pretty significantly by the US downturn as they had a strong presence there, said IHS Global Insights Deepesh Rathore.
Latest data from Japanese auto makers show sales continuing their downtrend. Japans industry-wide auto sales fell 23% in January-March from a year ago, and their US sales were down in April, too.
Nissan, which said it was on track to roll out a small car by mid-2010 in a venture with Bajaj Auto Ltd and Renault SA, is dithering over making light trucks in a venture with Ashok Leyland Ltd.
Nissan and Leyland are currently studying ways to optimize production plans in line with the joint venture agreements due to the economic crisis. The LCV (light commercial vehicle) production in Chennai is currently under study, a Nissan spokeswoman said.
The truck market in India has collapsed in the last six months as a slowing economy slammed the brakes on freight movement across the country.
Id say its natural for any company to review, revisit their plans, Rathore said.
Toyota, scheduled to start operations from its second assembly plant at the start of next year, will roll out its compact car at the end of the year, while its existing plant will continue to make its Corolla sedan.
A spokeswoman for its Indian unit, Toyota Kirloskar Motors Ltd (TKM), told Reuters: TKM will, of course, carefully monitor the trend of demand in the market as we make our decisions on what to produce and how much to produce from month to month. In contrast, American and European auto makers are confident their investments will be justified when demand picks up. Investments in India would have adequate payback... I wouldnt be doing it if I didnt think so, Fords India chief Michael Boneham told Reuters recently. I wouldnt make decisions that cost the company these investments.
Demand will be greater for 2010 than we had originally thought. Ford is investing $500 million (Rs2,475 crore) to expand capacity in India and introduce a small car in the first quarter of 2010.
Analysts said GM and Ford, whose market share is eroding at home, see India as one of few growth markets.
Earlier this year, Germanys Volkswagen opened a new $770 million facility in India to make the Skoda Fabia this year and its Polo supermini next year, while Daimler AGs luxury unit Mercedes-Benz, which used to make cars in a plant leased from Tata Motors, has opened its own unit.
Despite the slowdown, officials of both German auto makers said demand in India would take off once the recovery started and they wanted to be ready for that.
Daimler showed its confidence in the Indian market by going it alone on a project to make trucks even after local partner Hero Group unexpectedly pulled out of the venture.
Analysts said China and India had become more powerful players as consumer incomes have risen.
Although both have suffered in the downturn, their growth potential is much stronger than in Europe and other markets, where there is overcapacity.
It doesnt surprise me that a lot of the European brands are looking to markets like India and China as the obvious places to continue making investments, said Peter Haynes, di rector, JATO.
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| INTERVIEWS/FEATURES Go To Top |
| CARS, SUVs, MUVs Go To Top Pankaj Doval The Times of India (Web & Print Edition) (May 08)
New Delhi: To cut down dependence on imports and trim losses on account of currency fluctuations, automobile companies are looking inwards to boost indigenisation and increase local sourcing of parts. Companies ranging from volume player like Maruti to luxury vehicle makers Honda and Toyota are looking at ways to further increase local content on their cars, to bring down rising costs.
"The cumulative impact of adverse foreign exchange movement on our direct and vendor imports, including the lag of previous quarters, impacted our profit in the last quarter," Maruti MD S Nakanishi said. "We are increasing our focus on localisation of inner parts imported by our vendors. This will reduce costs and, more importantly, bring down our exposure to fluctuations in currency," he said.
Nakanishi said Maruti's engineering department was taking steps towards this end, though adding that it was still not possible to achieve full localisation even on cars that had high volumes and are present in India for decades. "Even on cars like Maruti800 and Alto, we have not achieved full localisation and it is still at around 95%. Some components, like catalyser parts and ECU, are not available here," he pointed out.
While Maruti may have still managed to shield itself from the heat of expensive imported content due to heavy localisation levels, Honda and Toyota could not protect themselves and were forced to pass on the higher cost to consumers by increasing prices at a time when the market battled a slowdown. Depreciation of the rupee and strengthening of the yen against dollar proved to be a double whammy for these companies whose cars carry significantly high imported content.
For Honda, imported content on its Accord sedan is about 75%, while on Civic it is around 22%. The new City has about 24% imported parts. For Toyota too, the imported content varies between 40-45%, which is high and exposes the company to the risk of currency fluctuations.
A Honda official said the company had set up a R&D team in India to interact more with local suppliers and tap them for parts. "The main objective of this team is to find ways to increase domestic sourcing and work with vendors to develop high quality local sourcing," the official said.
"Our engineering and R&D teams are working on ways to boost localisation. However, we believe that this cannot be done in a short period of time as we require high volumes for this," Sandeep Singh, Deputy MD of Toyota Kirloskar Motors, said.
AUTO COS TO RIDE SMALL CAR WAVE Chanchal Pal Chauhan (May 08)
New Delhi: India, the worlds largest small car producer, is set to gain from the recent decisions of Germany, France, the UK, Italy and South Korea to give tax breaks and fiscal incentives to people buying small fuel-efficient cars. Bangalore-based electric car maker Reva is the largest supplier of compact electric cars to the UK and has exported around 1,200 cars till date. The South Korean government, too, offers 70% rebate on automobile taxes to customers swapping their 10-year old cars for smaller or hybrid cars . According to research firm CNI Research CMD Kishor Ostwal, more than 55-lakh cars in South Korea alone have crossed 10 years of age and will have to be replaced with fuel-efficient cars. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
MARUTI, HERO HONDA SAVE AUTO-COMP MAKERS THE BLUES Neha Rishi Daily News & Analysis (Web Edition) (May 08)
Krishna Mathur, general secretary, auto component manufactures' association, said, "The quarter turned out relatively better for us. This is attributed to the pick in sales for passenger cars and two-wheelers. These segments have shown some growth over the previous quarter."
He added that there has been some improvement in the light commercial vehicle segment, a refreshing change as the medium and heavy commercial vehicles segments are showing no signs of recovery.
A source who did not wish to be named said Maruti Suzuki and Hyundai Motor have been the growth drivers in the passenger car segment, while the growth in the two-wheeler market is primarily owing to a remarkable performance by Hero Honda.
V K Vishwanathan, managing director, Bosch India, agreed the passenger cars segment kept their furnaces burning. "In February and March, passenger cars gave a boost to our business. Light commercial vehicles started to revive from March onwards. In January, our decline stood at 34%, which came down to 22% in February. In March, it was down to 10% decline, but a 10% decline is still not good enough as the auto industry is expected to grow at 15-20%," Vishwanathan told DNA.
According to Deepak Jain, executive director, Lumax Industries, the fourth quarter saw a 35% increase in business over Q3 as carmakers produced more cars and new models kicked in.
"We cannot say that all is hunky dory, as only those companies with the right product mix are doing well. The ones in the commercial vehicle space are still under water. Though companies such as Hero Honda, Mahindra & Mahindra, Maruti have done well, we cannot say there is a revival in the auto industry. There won't be negative growth in the coming months, but it will not be as good as the corresponding period last year," added Jain. Auto component makers are hopeful the passenger car, light commercial vehicle and aftermarket will continue to do well in Q1 of this fiscal as well.
Furthermore, save Hero Honda, the volumes of other two- wheeler manufacturers are yet to pick up. While January was flat, February and March saw a growth of 10% over the Q3."
Exports still look bleak as US companies are still inventory conscious. Though orders are coming in, the schedules are highly uncertain. http://www.dnaindia.com/report.asp?newsid=1253956
MARUTI SETS UP ITS FIRST EDUCATION & TRAINING CENTRE IN NORTH Charanjit Ahuja The Financial Express (Web & Print Edition) (May 08)
Kulvinder Singh Bawa managing director of BGS signed an MoU with Maruti Suzuki in the presence of P Agarwal, general manager services, BS Soni zonal service head north and Ankur Sharma, regional manager Maruti.
The training courses will be run in Mohali and Banglore campus of BGS. Aggarwal said that this is first of its kind certificate courses started by Maruti to meet the job requirement of mechanic, supervisor, office administrator in Maruti dealer network offices.
He said that those keen to make career in automobile industry could join the courses starting from June, 2009.
Aggarwal said although the company was not issuing any guarantee that all trainees would be provided jobs, but there was ample scope for them to get jobs in Maruti outlets across the country.
MARUTI SUZUKI TO LAUNCH A 600 CC CAR Business Standard (Delhi Print Edition) (May 08)
Maruti Suzuki says it has no plans to launch a 600 cc car or introduce Kizashi an executive sedan, in the Indian market. A Business Standard report on Tuesday had quoted Maruti Suzukis managing director, Shinzo Nakanishi, as stating that the launch of the small car would take some years, and only after the company recovered the large investment it had already made.
ALTERNATIVE FUEL VARIANTS, BANK TIE-UPS TO HELP HYUNDAI GROW 5% Yahoo India (Web Edition) (May 07)
Just after Maruti Suzuki India announced that it is eyeing up to 5% growth in 2009-10, Hyundai Motor India (HMIL) said the company will grow by 3-5% in 2009, driven by the alternative fuel variants of some of its existing models as well as company's aggressive tieups with public-sector banks in the recent past for car finance.
"We want to retain our market share, for which our sales have to grow according to the industry growth. Industry has been projected to grow by 3-5% and we will also grow by the same rate," Arvind Saxena, senior vice-president (sales and marketing), HMIL said.
According to Saxena, Hyundai enjoyed a market share of 20.1% in the domestic passenger car segment in 2008, on the backdrop of 22.4% jump in the company's domestic sales at 2,45,397 units. Robust demand for i10 pushed up the company's exports by 92.5% last year at 2,43,931 units, resulting in a cumulative growth of 49.6% at 4,89,328 units.
However, an industry analyst feels it would be a tough year for Hyundai if the labour problem worsens at the company's plant in Chennai. "This is not for the first time that Hyundai's production has been hit by labour problems at its plants. If the ongoing trouble continues for long, the company's growth projections might take a hit," Saxena said.
The company, however, says the impact has been marginal so far. "Only a few people have joined the strike at the plant in Chennai and daily production at the facility has been affected by 3-4%, which is marginal," Saxena said, adding that the management is talking to them and we should solve it in a few days.
Like Maruti, who is looking at Ritz to drive growth this year, Hyundai feels the upcoming variants will give it a boost in 2009. "We will launch LPG variant of Accent by June, while the diesel version of i20 will hit the roads by the end of this year," he said.
The company has tied up with seven to eight nationalised banks, including Syndicate Bank, Punjab National Bank, Canara Bank, Bank of India, Bank of Baroda, Union Bank and State Bank of Travancore, in the last three months to expand its reach to semi-urban and rural areas.
"Hyundai is keen to expand its presence in rural and semi-urban markets. Since car finance needs personalised focus and attention, such tieups would help us achieve the objective of greater penetration," Saxena added. http://in.biz.yahoo.com/090506/50/batja5.html
HYUNDAI PLANS SANTRO FACELIFT BY YEAR END Garima Singh Neogy The Telegraph (Web Edition) (May 08)
New Delhi: Hyundai Motor India Ltd plans to roll out another variant of the Santro by the end of this year.
The Santro has been a very successful car for us. We may refresh the car by the year end, said a senior Hyundai official.
Earlier in 2003, the Korean firm had launched the Santro Xing, albeit with cosmetic changes.
Two years later, the Santro got the eRLX technology. The CNG variant was introduced in 2007, and the LNG version in 2008.
According to sources, there will be some stylistic changes, but the price of the new variant may not vary much.
Of course there will be some tweaking done in the overall appearance of the car, but no engine change is on the cards, sources said.
At present, the Santro is available in three variants petrol, LPG and CNG and is priced between Rs 2,59,900 and Rs 3,69,059 (ex-showroom, Delhi).
Hyundai exports the car to Columbia, Mexico, Sudan, South Africa and Algeria. Till April, the company has exported 4,39,541 units. Since its launch in India in September 1998, Hyundai has sold 9,84,418 units in the domestic market.
The Santro and the i10 constitute nearly 75 per cent of the 22,000-23,000 units that Hyundai sells each month in the domestic market.
No break-up was available for Santro and i10 sales. Officials, however, said i10 sales were higher.
In April, Hyundai sold 44,371 cars against 40,000 a year ago. Within the country, the sales were higher at 22,247 units against 21,501 a year ago, while exports stood at 22,124 units against 18,499 units.
Hyundai expects sales in India to grow up to five per cent this year with the diesel and LPG variants of the i20 and the Accent lined up for a launch.
It has joined hands with the Union Bank of India to provide retail finance to customers.
We want to retain our market share, for which our sales have to grow according to the industry growth. Industry has been projected to grow 3-5 per cent and we will also grow by the same rate, said Arvind Saxena, senior vice-president (marketing and sales), Hyundai Motors India Ltd.
The company enjoyed a 20.4 per cent share in the domestic passenger car segment, which recorded sales of 12,19,473 units in 2008.
Strike called off Hyundai said the 18-day-old strike by workers at its Chennai plant had been called off with immediate effect and normal production would resume from tomorrow.
The company will take back 20 out of 75 suspended workers, corporate communications head Rajiv Mitra said. http://www.telegraphindia.com/1090508/jsp/business/story_10934049.jsp
HYUNDAI MAY SHIFT i20 PRODUCTION ON LABOUR UNREST Pankaj Doval The Economic Times (Web Edition) (May 08)
Go To Top T E Narasimhan Business Standard (Web & Print Edition) (May 07)
The workers went on strike on April 20 seeking recognition for their union and went on fast on May 2.
Tuesdays talks involving the management, the labour board and workers failed, according to a representative of the workers.
A spokesperson for the company said the factory used to work at 97-98 per cent capacity, but had now come down to 90-93 per cent.
The company produces 900 to 1,000 vehicles a day at Sriperumbudur. A Sounderrajan, president of Centre for Indian Trade Unions Tamil Nadu unit, told Business Standard the Hyundai management had not recognised the union, a registered body formed in 2007 and the only union there, and had dismissed 65 people, suspended 34 and transferred some others for enrolling as members of the union.
The management, he said, was hiring contract workers for direct manufacturing and denying leave benefits to workers.
The Hyundai spokesperson said there was no union in the company, and that of the 800 striking workers, hardly 150-200 were from Hyundai, of which 75 had already been suspended.
The spokesperson called the strike illegal and motivated by political parties, since Sriperumbudur had become a parliamentary constituency.
He added that the company would consider recognising a union of it was proved that the majority of the employees were part of it. http://www.business-standard.com/india/news/800-arrested-for-strike-at-hyundai/357343/
HYUNDAI EXPECTS STRIKE AT CHENNAI TO END SOON PTI See this story in: mint (Delhi Print Edition) (May 07)
New Delhi: The countrys second-largest car maker, Hyundai Motor India, is expecting to end the deadlock at its Chennai facility within a few days, while admitting that the strike by its employees at the unit has impacted production.
Only a few people have joined the strike at the plant in Chennai. Daily production at the facility has been affected by 3-4%, which is marginal, Hyundai Motor India Ltd (HMIL) senior vice-president (Marketing and Sales) Arvind Saxena said.
T E Narasimhan Business Standard (Web & Print Edition) See similar story in: The Economic Times (Web & Print Edition), The Financial Express (Web & Print Edition), Asian Age (Web & Print Edition), The Times of India (Web & Print Edition)
Chennai: The 17-day strike by workers at Hyundai Motor Indias Sriperumbudur factory ended after a meeting of workers' representatives, the company management and the labour board in Chennai.
A Sounderrajan, president of Centre for Indian Trade Unions Tamil Nadu arm, said the workers had decided to call the strike off after the management agreed that it would not come to any wage revision settlement with the working committee till May 20, give item-wise reply on the 45 demands of workers, and not take action against workers after they return to work.
One of the main demands, that the management recognise the employees union, has not been conceded, according to Sounderrajan, who is also the honorary of the workers body seeking recognition as the union.
Speaking about the wage revision, he said the company used to give increments every three years. The previous wage structure ended on March 31 this year, and the new one was to come into force on April 1. He refused to comment on the course of action on the wage issue, saying, We will do something.
The demands include an increase in the minimum wage, which is Rs 8,000, and explanations for dismissing 65 workers and suspending another 34. http://www.business-standard.com/india/news/hyundai-strike-ends/357456/
M&M UTILITY VEHICLES OVERTAKE TOYOTA & TATA The Economic Times (Web Edition) (May 07)
Their combined market share stood at 65% last month against 47% a year ago. After the launch of the Xylo, company officials maintain that some amount of cannabalisation would occur among its UV products. Since Xylos launch, M&M has witnessed around 15% cannibalisation between the SUVs. The three UV products at different price points have managed to hold a niche for themselves, said Mr Goenka. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
M&M TO EXPORT CUSTOMISED VEHICLES Sohini Das Business Standard (Web & Print Edition) (May 08)
Kolkata: Mahindra & Mahindra (M&M), the market leader in the utility vehicles(UV) segment with a 57 per cent share, is now looking at exporting customised UVs as collectors items.
It offers customisation on its existing platforms like the Scorpio, Bolero and the Classic and can eventually offer value-adds on the newly launched Xylo. The range include the Bolero Inspira, Bolero Stinger, Bolero Limited Edition, Scorpio First, Scorpio Body Kit, Scorpio Gateaway Lifestyle, and the Souvenir Concept, which is an adaptation of the Jeep-look alike vintage UV called the Classic as M&M does not own the Jeep brand.
Some of these vehicles have a significant demand in Saarc countries, South Africa and Egypt, said J S Nanda, deputy general manager, automotive sector and the head of customisation, M&M. Mahindra, however, does not plan to export huge volumes as that would spoil the niche value of the cars. We can export may be 10-20 vehicles of a type as collectors items across the globe according to dealer requirements, Nanda added.
Besides exports, the company has plans to leverage the vintage value of some its cars like the Classic and sell them to resorts and boutique hotels for desert and wildlife safaris. The CL 550 Major, that is an offshoot of the of the Mahindra CL series or the Mahindra Jeep, is still in production and we are keen to leverage the cult value of the brand, Nanda said.
It is present in this customisation segment for the last two years and has already supplied customised fleet to companies like Kingfisher Airlines, Bayer India, apart from car rental companies, police and municipal and forest departments. We are the only player in the UV segment to offer customised solutions to our customers, said a Mahindra spokesperson.
To popularise the concept of collectors edition of vehicles, M&M also makes custom-made deliveries to celebrities. It recently designed a customised Bolero Stinger to Indian cricket team opener Gautam Gambhir in Delhi last week. It delivered a tailor-made Scorpio Gateaway Lifestyle to Bhaichung Bhutia, Indian football team skipper that has a motorised sun-roof, stainless steel guards all over, a cargo bay with a motorised cover as well a BB15 etched on the cars seats and the sides. It is a way of connecting with the customers, said Vivek Nayer, senior vice-president, marketing, automotive sector of M&M. He also informed that while the price premium depended on the degree of customisation, these were typically priced around Rs 3.5 lakh above the base models. http://www.business-standard.com/india/news/mm-to-export-customised-vehicles/357446/
STRIKE-HIT M&M HAS A MONTHS STOCK The Financial Express (Web & Print Edition) See similar story in: Business Standard (May 08)
Mumbai: Even as the ongoing strike at the Mahindra & Mahindra (M&M) Nashik plant enters its fourth consecutive day on Friday, the company on Thursday said that it has a stock in the pipeline of up to a month and hence retail sales will not be immediately affected. The Nashik plant produces M&Ms flagship Scorpio and utility vehicles Bolero and multi-purpose vehicle Xylo, besides Mahindra Renaults sedan Logan. The plant has an annual production capacity of 1.5 lakh units. A short-term loss of production can be recouped by refilling the inventory, M&M said in a release.
Around 4,000 workers at the plant on May 5 resorted to a tools down agitation against disciplinary action initiated against the employees union president and are demanding his reinstatement. The suspension of the union president was purely a disciplinary action against the individual and is in no way linked to any other issue mentioned in a section of the media, it added. The company said that there will be production loss due to the ongoing strike, loss of wage by the workers and hence impact all shareholders. On Thursday, M&M shares closed at Rs 516.35, down 2.83% on the BSE.
However, if the strike continues for few more days, M&M will have to press the alarm bell, said industry experts, adding that the workmen trouble at Hyundais Chennai plant and M&Ms Nasik was so not needed at a time when the Indian automobile industry was showing signs of improvement. After a more or less flat growth last year, the industry has seen improvement since January, with month-on-month figures showing an upturn. April stood out with all leading passenger carmakers seeing growth in sales on the back of stimulus package and lower interest rates. In a release on Tuesday, the company had said, The management is in dialogue with the union and workmen to resolve this impasse and the company is hopeful that wiser counsel will prevail upon the union as well as the workmen so that normalcy is restored at the earliest and the loss of production will be made good soon.
M&Ms total domestic volumes (including joint ventures) saw a growth of 16.6% in April at 22,617 units as against 19,392 units in the corresponding period last year.
This includes the monthly sales for the Scorpio, Bolero, Xylo and the Pik-Up which stood at 18,447 units for April 2009 as against 13,560 units for the same period last year. M&M total sales for April (domestic and exports) stood at 23,004 units as against 20,030 units in April 2008. the exports fell 39% in April. http://www.financialexpress.com/news/strikehit-m&m-has-a-months-stock/456001/0
The Hindu Business Line (Web & Print Edition) (May 08)
Coimbatore: Mahindra Renault Pvt Ltd has redefined the Logan Edge brand with the launch of Logan Edge Connect. The company is hoping that this extension of the Logan Edge brand, developed on the basis of evolving customer needs would surpass the demand for Logan Edge. A company release said that the demand for the Logan Edge exceeded supply with all 500 units of this limited edition being sold within two months. The Chief Executive Officer, Mr Nalin Mehta, said the Logan Edge Connect redefined luxury for the Indian car buyer. An in-built Bluetooth device provides the driver with a hands-free option for his mobile handset, to stay in touch while on the move, conduct conference calls with multiple people. The car is iPod compatible, is equipped with the Driver Information System, anti-lock braking system, an anti-theft electronic encoded safety system activated by a transponder, which immobilises the engine, to prevent possible theft are some of the features of this car, Mr Mehta said. http://www.thehindubusinessline.com/2009/05/08/stories/2009050850720200.htm
FORDS NEW FOCUS (May 07)
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| COMMERCIAL VEHICLES Go To Top The Hindu (Web & Print Edition) (May 07)
http://www.hindu.com/2009/05/07/stories/2009050756021400.htm |
| CONSTRUCTION & AGRI MACHINERY Go To Top |
| 2/3 WHEELERS Go To Top Sumantra Barooah mint (May 08)
Mumbai: Indias third largest two-wheeler maker, TVS Motor Co. Ltd, has lined up product launches to increase its footprint in the local market that is recovering from a slump.
The company will soon introduce a new model called Apache 180, followed by another model named Sport, which it has recreated from an earlier brand, Star Sport.
It will also re-launch its Flame motorcycle in a new avatar, with a more refined engine. Flame will be the only 125cc bike in its portfolio, and TVS Motors hopes to initially sell 7,000 units of it a month and ratchet it up to 10,000 units a month by December.
The company expects these launches would help it increase market share. Its safe to assume that we are looking at increasing market share by about 2% for the year, said H.S Goindi, head of sales and marketing. So, to that extent these brands will help us in giving us the volume and drive growth.
The firm also said it is discontinuing its first indigenous brand, Victor, at least in the domestic market.
TVS Motor has said vehicle sales rose about 3% in April on year to 113,119 units. April motorcycle sales stood at 53,235 units compared with 58,237 units a year ago. http://www.livemint.com/2009/05/07223541/TVS-revamps-lineup-to-boost-m.html
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| COMPONENTS Go To Top PTI See this story in: The Economic Times, The Financial Express, The Statesman (May 08)
South Korea: South Korean auto major Hyundai Motor Company is looking at increasing sourcing components from India for its global operations. Currently Hyundai sources only a negligible percentage of components from India for its global needs but wants to increase the level. http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=253599 http://174.133.94.26/content/1287/hyundai-looks-increase-sourcing-components.html
RASANDIK TO SET UP THREE-WHEELER PLANT NEAR MYSORE Business Standard (May 08)
Chennai/ Mysore: Haryana-based Rasandik Motors Pvt. Ltd., an arm of the Rasandik Engineering Industries India Ltd. manufacturing automobile components, will set up a plant near Mysore to assemble and subsequently manufacture three-wheelers at the Nanjangud industrial estate.
We are planning the three-wheeler plant by year-end. We have 20 acres for the purpose, Rasandik vice-president (commercial) Mohan Lal Sukhal told Business Standard on the eve of showcasing the companys seven variants of three wheelers, consisting of one passenger and six commercial vehicles.
The three-year-old 170-employee plant at Nanjangud manufactures around 500 frames per day for the TVS Apache motorcycles.
Assembling the spares procured from the Greater Noida plant at Delhi will be the first phase of the Najangud project. This will offer us a logistic advantage of saving costs. Instead of getting six three-wheelers in a vehicle paying Rs 30,000 transport charges, getting spares would cost us only about Rs 5,000 and assembling cost around Rs 1,000, besides direct supervision of quality control and sales, director M S Ramaprasad said.
Earlier also Rasandik, he said, was procuring frames from its Gurgaon plant and supplying to the TVS at Kadakola (Nanjangud).
Subsequently, we took up the manufacture of frames in Nanjangud alone. Now cent per cent supply to TVS is made from the Nanjangud plant. This has provided employment for about 250 people. Almost all of them are locals. We are adopting the same strategy in respect of vehicles too now. In the second phase, we propose manufacturing as well, excepting the engine, Ramaprasad said.
The Rs 300 crore and 1,200 employee Rasandik Engineering Industries is manufacturing a variety of automobile components at its four plants at Sohna, Greater Noida, Pune and Nanjangud. Its client list comprises tier one to almost all major auto giants like Maruti, Tata, General Motors India, Volkswagen, Mahindra Renault, Toyota, Honda, Fiat India, Cummins, TVS, New Holland Tractors etc.
We are involved in the low-cost Nano cars also. We have supplied fuel tanks and 3-4 other components, Sukhal said.
After graduating from automobile parts to manufacturing Rasandik Motors is launching its second event in Mysore displaying all the seven variants of the three wheelers 3+1, 6+1 and 7+1 passenger auto, loader, delivery van, mobile shop van, garbage collector, garbage tipper and chassis, he said. http://www.business-standard.com/india/news/rasandik-to-setthree-wheeler-plant-near-mysore/357410/
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| ALLIED INDUSTRY Go To Top Sumant Banerji Hindustan Times
New Delhi: In one of the biggest acquisitions in the industry, the countrys largest tyre maker, Apollo Tyres, is all set to fully acquire Dutch company Vredestein Banden. The deal is expected to be closed in a fortnight for a consideration of around $300 million ($Rs 1,500 crore).
We are looking at closing the deal by the middle of this month, said Neeraj Kanwar, vice chairman and joint MD, Apollo Tyres. Vredestein is a premium Tier 1 tyre manufacturer with a portfolio of high-end, high speed-rated passenger car tyres going up to a speed of 300 km per hour. We have a high synergy, but I will be able to give you details on this only once we achieve closure.
CEAT LAUNCHES FIRST WHEEL MANAGEMENT CENTRE PTI (May 08)
Chennai: Tyre manufacturer CEAT launched its first wheel management centre in the country for truck and bus tyres at Namakkal district in Tamil Nadu.
"With this launch, CEAT has further enhanced its reach to the masses in Tamil Nadu and the company is looking forward to launch 20 stores in India by 2010," a company press release here said.
Sankagiri has the potential of 7,000 new tyres per month of which 30 per cent would be radial tyres, it said.
"Tamil Nadu is a very competitive market for radial tyres and we are pleased to launch our first wheel management centre for truck and bus radial tyres in Sankagiri. The launch of this facility will help CEAT reach the masses and achieve its targets,"CEAT Vice-President (Sales and Marketing) Arnab Banerjee said.
CEAT Wheel Management Centre would be set up in 3,000 to 5,000 square feet area and each store would provide new CEAT tyres, wheel alignment, greasing, nitrogen inflation and also act as a collection centre for retreading of tyres, it said.
CEAT, at present, has manufacturing plants in Mumbai, Nasik and Sri Lanka. The company manufactures over 10 million tyres every year and exports to nearly 110 countries, the release added. http://www.business-standard.com/india/news/ceat- |
| FINANCE & INSURANCE Go To Top Abhineet Kumar Business Standard See similar story in: The Telegraph (May 08)
Sources associated with the fund-raising exercise said State Bank of India (SBI), along with several other banks, was providing a guarantee. SBI Caps, the capital markets division of the bank, is the lead manager.
A banker familiar with the development confirmed that the bonds would be issued this month. SBI Caps, the source said, was in talks with institutional players like Life Insurance Corporation of India as potential buyers. Bankers said the bonds would have a maturity ranging between two and seven years.
In response to a questionnaire, a Tata Motors spokesperson said: Tata Motors does not have any comments to make.
While half the repayment requirement will be met through the bond issue, the remaining amount is expected to come by way of rupee- and dollar-denominated term loans, a banker said.
Last June, the auto maker availed of a $3 billion (around Rs 15,000 crore based at todays exchange rate) bridge loan to finance its acquisition of the two marquee brands from Ford Motor Company. In January, it said it had repaid $1 billion (around Rs 5,000 crore) from the proceeds of a rights issue and stake sale in Tata Steel and Tata Teleservices to other group companies. The remaining amount is due for repayment on June 1.
While the company had initially planned to raise funds through an overseas equity issue and sale of more of companys investments, the plans did not materialise due to adverse market conditions. This prompted Tata Motors to seek refinancing from its lenders to whom it had sent a term sheet last month and was negotiating the interest rate.
However, the plans have been reworked now with a large portion coming by way of bonds, a banker said.
Though the Libor has eased, credit spreads continue to be high making overseas fund raising difficult for Indian companies.
Citigroup and JP Morgan were the lead managers to the $3 billion loan, which was raised with the help of other banks such as SBI, Standard Chartered, BNP Paribas and Tokyo Mitsubishi UFH.
The companys shares gained 3.05 per cent on the Bombay Stock Exchange (BSE) to close at Rs 272.10, while the BSE Sensex gained 1.37 per cent. http://www.telegraphindia.com/1090508/jsp/business/story_10934153.jsp
TATA AIG EYES 10% GROWTH IN MOTOR INSURANCE BIZ PTI (May 08)
Mumbai: With pick-up on auto sales and launch of small-car Nano, Tata AIG General Insurance is looking at around 10 per cent growth in motor insurance business this fiscal.
Motor insurance is an important part of our business. We will be looking at more aggressively into this area in the current fiscal with the aim of growing by around 10 per cent,'' Tata AIG General Insurance's Managing Director Gaurav Garg told PTI here.
Motor insurance had contributed around 25 per cent of the company's total premium income which stood at Rs 950 crore in the last fiscal. The growth in motor insurance sector was flat last fiscal, he said.
The auto industry had suffered badly last year due to lack of retail finance amidst high interest rates. The situation, however, started looking up after the Government announced two stimulus packages in December and Januray. Auto sales started picking up from January itself.
The industry posted impressive growth in sales in April led by car market leader Maruti Suzuki and biggest two-wheeler maker Hero Honda. Garg said that Tata AIG General Insurance might soon come out with three more add-on covers in its motor insurance b asket, Auto Secure,after securing approval from the Insurance Regulatory and Development Authoirty (IRDA). http://www.thehindubusinessline.com/blnus/17071604.htm http://www.financialexpress.com/news/tata-aig-eyes-10-growth-in-motor-insurance-biz/455943/
M&M TIES UP WITH STATE BANK OF INDORE FOR RETAIL FINANCE PTI See this story in: Daily News & Analysis
New Delhi: Auto major Mahindra & Mahindra (M&M) said it has signed an agreement with public sector lender State Bank of Indore for providing retail financing facilities to its consumers.
"We are pleased to partner with the State Bank of Indore as it will provide our customers with additional retail finance options. Low interest rates for both passenger and commercial vehicles are just one of the benefits of opting for State Bank of Indore as a preferred financier," M&M senior vice president (sales and customer care -- automotive sector) Arun Malhotra said in a statement.
As part of the MoU signed between the two firms, auto buyers could avail loans up to 85 per cent of the on-road price of the vehicle at an interest rate of up to 11.75 per cent for passenger vehicles and 13 per cent for commercial vehicles. http://www.dnaindia.com/report.asp?newsid=1253873
UNION BANK OF INDIA AND HYUNDAI MOTOR INK PACT FOR CAR FINANCE Agencies See this story in: The Financial Express, The Hindu Business Line (May 08)
New Delhi: Union Bank of India, Indias one of the leading public sector Banks inked a Memorandum of Understanding (MOU) with Hyundai Motor India Ltd the countrys second largest car manufacturer and the largest passenger car exporter, to offer easy, transparent and hassle free car finance to customers.
The MOU was signed by A.K. Bansal, Field General Manager, (Delhi), Union Bank of India and Arvind Saxena, Sr. Vice President, Marketing & Sales, Hyundai Motor India Ltd.
The tie-up with HMIL confers Union bank of India with the status of preferred financier of Hyundai, which will benefit the large customer base of the bank in urban, semi-urban and rural areas. The maximum loan offered by the Bank per vehicle is Rs 15 lacs with minimum margin of 15 percent on road price and repayment upto 72 months. Union Bank will process customers' requests within two working days after receipt of duly completed application forms with the necessary supporting documents.
Speaking on the occasion, A.K Bansal, Field General Manager of Union Bank of India said, Union Bank of India has always been in the fore front of serving the needs of the common man and excels in every area of banking. Union Bank of India has a large base of customers throughout the country. It has 2,614 branches and 74 extension counters across the country to cater to the needs of its customers. It has very competitive financing schemes to suit the requirement of all sections of the society. We have tied up with Hyundai Motor India Ltd. for providing car finance on easy terms. With the above tie-up, prospective buyers of Hyundai cars will get preferred attention at our branches across the country for immediate sanction supported by competitive rate of Interest.
Speaking on the occasion Mr. Saxena, Sr. Vice President, Marketing & Sales, Hyundai Motor India said, Hyundai is keen to expand its presence in rural and semi urban markets. We have the right products and a nationwide sales and service network to support this growth. We feel that car finance needs personalized focus and attention. We are confident that with partners like Union Bank of India, we will win customer confidence and achieve the objective of greater penetration. We are happy that Union Bank of India is partnering with HMIL to offer transparent, hassle free finance to our customers. |
| LUBRICANTS & ALTERNATIVE FUELS Go To Top Sushmi Dey & Rajeev Jayaswal (May 07)
http://economictimes.indiatimes.com/Petrol-ethanol-caught-in-tax-mix-up/articleshow/4493507.cms
OIL RISES TO SIX-MONTH HIGHS ABOVE $58 Agencies See this story in: The Economic Times (May 08)
The US private sector shed 491,000 jobs in April, fewer than expected by analysts, a survey by payrolls firm ADP data showed Wednesday, signalling the prolonged recession may be easing.
ONGC ADDED 284 MT OIL, GAS RESERVES IN 2008-09 PTI (May 07)
With annual production of 47.852 mt of oil and oil equivalent gas, the Reserve-Replacement Ratio (RRR) works out to 1.44. This is the fifth year in running when RRR had exceeded 1, it said.
The reserves had been added in fields operated by ONGC within the country and do not include the assets of its overseas subsidiary, ONGC Videsh Ltd (OVL). This accretion comes from the ONGC-operated areas in the country including NELP blocks and also 12 new prospects and 13 new pool discoveries from the five onland and three offshore sedimentary basins, ONGC said.
Besides, 12.19 mt of reserves have been added in fields ONGC operates in India with private sector firms. OVL, on the other hand, added 114.24 mt of recoverable reserves. Put together, ONGC added 297 mt of in-place reserves, of which 185.96 mt are recoverable.
ONGC Chairman and Managing Director R S Sharma apprised the company board at its meeting yesterday on the reserve accretion saying such commendable exploration results in recent years have been made possible due to intensive technological inputs, association of domain experts and committed team work. http://www.business-standard.com/india/news/ongc-
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| INTERNATIONAL NEWS Go To Top AFP See this story in: The Economic Times (May 08)
Luxury car maker Porsche and Europe's biggest auto producer Volkswagen agreed on Wednesday to forge a merged German car giant, stepping up the momentous changes shaking the industry worldwide. A special meeting of their boards and key shareholders in Salzburg, Austria gave themselves four weeks to agree a tie up. But it said "Volkswagen and Porsche (will now) intensify the talks in a joint working group," it said. "It is the aim to develop a corresponding basis for decision-making on the future structure of the common group within the next four weeks," it added, giving no further details. US car giant Chrysler filed for bankruptcy last week, opening the way for Italian champion Fiat to launch a rescue operation and take a key stake. Fiat has also been linked to a potential takeover of Opel, the German arm of US company General Motors. Fiat's tie-up with Chrysler would put the Italian firm, which just five years ago was on the brink of collapse, on a par with VW as the world's second biggest auto maker after Toyota of Japan. VW has the biggest sales of any car firm in Europe 15 times larger than its smaller German peer, which is 9 billion ($11 billion) in debt.
Reuters See this story in: The Financial Express, The Economic Times, The Tribune, The Indian Express, The Telegraph (May 07)
The automaker on Thursday posted a quarterly net loss of $6 billion, compared with a loss of $3.3 billion a year earlier.
Revenue dropped by almost half to $22.4 billion as sales plunged in North America and fell in Europe, Asia and Latin America.
Excluding $73 million of one-time net charges, GM posted a loss of $9.66 per share. That was within the wide range of analysts' expectations but narrower than the average forecast of a loss per share of $11.05 as tracked by Reuters Estimates.
GM is facing a government-imposed June 1 deadline to reach agreements to overhaul its operations and cut more than $40 billion in debt. The company has taken $15.4 billion in emergency loans from the U.S. Treasury to date.
The first quarter was also marked by GM's failure to win new federal backing for a turnaround plan that the U.S. autos task force concluded was too slow-moving and too cautious to succeed.
The Obama administration ousted Rick Wagoner as GM chief executive at the end of the first quarter.
Creditors have been looking beyond GM's results, focusing instead on whether it succeeds in winning debt concessions from its bondholders and the United Auto Workers union, analysts said.
The automaker said on Thursday that it had not yet reached the deal it needs with the UAW. It also said the Treasury had not yet agreed to convert half of the loans it has extended to GM into stock in a restructured company. http://www.financialexpress.com/news/gm-posts-10-billion-q1-loss/455967/ http://www.financialexpress.com/news/gm-posts-10-billion-q1-loss/455967/ http://www.tribuneindia.com/2009/20090508/biz.htm#4 http://www.indianexpress.com/news/gm-posts-10-billion-q1-loss/455967/ http://www.telegraphindia.com/1090508/jsp/business/story_10933478.jsp
AP See this story in: The Hindu Business Line (May 07)
Frankfurt: German carmaker BMW AG reported on Wednesday a small net loss for the first quarter as the global recession cut deeper into car sales, and said the future of the market remained uncertain for the rest of the year. The Munich-based company said it lost 152 million ($202 million) in the January-March period compared with a net profit of 487 million in the fist quarter of 2008.
TOYOTA PROJECTS LOSSES ON WEAK SALES, STRONG YEN Agencies See this story in: The Economic Times (May 08)
Tokyo: Toyota Motor Corp, the world's top automaker, reports earnings for the fiscal fourth quarter on Friday. The following is a summary of key developments and analyst opinion related to the period.
FORD MAY SUFFER AS CHRYSLER, GM SHUTDOWNS THREATEN SUPPLIERS Bloomberg See this story in: The Financial Express (May 08)
Ford Motor Co, the only self-sufficient US automaker, may be hobbled should prolonged shutdowns at Chrysler LLC and General Motors Corp lead to failures of essential partsmakers.
Ford, launching three critical models, is at risk of periodic shutdowns if suppliers it shares with GM and Chrysler collapse, analysts said. GM is closing 14 North American plants for as much as nine weeks this summer and Chrysler, which filed for court protection from creditors on April 30, plans to close its factories until emerging from Chapter 11 in a month or two.
Theres definitely potential for sporadic shutdowns at Ford, said Mike Wall, supplier analyst at industry consultant CSM Worldwide in Northville, Michigan. The idling of plants at Chrysler and GM is going to shoot a significant amount of stress through the supply chain.
Ford is vulnerable because of the interwoven nature of the auto-supply network. Ford shares 70% of its suppliers with GM and 64% with Chrysler, according to CSM. Asian- based automakers share 59% with Chrysler and 58% with GM. The loss of a single part can close a plant, Wall said. Toyota Motor Corp and Honda Motor Co could also be hit by production interruptions if suppliers who lose business during the GM and Chrysler shutdowns can no longer afford to stay in business, said Craig Fitzgerald, a supplier consultant at Plante & Moran in Southfield, Michigan.
Chrysler purchasing chief Scott Garberding said in court documents that the failure of suppliers to the Auburn Hills, Michigan-based automaker would cause severe production problems for other carmakers, including GM and Ford.
Ford doesnt anticipate production disruptions in the next 30 days, said Todd Nissen, a spokesman for the Dearborn, Michigan-based automaker
CHRYSLER AUCTION APPROVED, FIAT LEAD BIDDER Bloomberg See this story in: Business Standard, Hindustan Times
The court concludes the bidding procedures are appropriate and necessary, Gonzalez said in a ruling from the bench at about 11 pm.
Chrysler proposes to sell itself to an entity owned by Fiat, a union benefit trust, the US Treasury and the Canadian government. Auburn Hills, Michigan-based Chrysler wasnt able to close the merger outside bankruptcy protection because of opposition by some of the lenders holding $6.9 billion in secured debt.
Fiats $2 billion offer for most of Chryslers assets will be the lead bid in an auction, which is typically required for assets sold in bankruptcy. Chrysler extended the sale process at the request of its creditors committee, putting the deadline for competing bids at May 20 and setting a May 27 hearing to approve the winning bid, said Corinne Ball, a lawyer for the company.
Gonzalez also approved a $35 million breakup fee for Fiat if its outbid at the auction.
Chryslers financial adviser, Greenhill & Co, said the Fiat offer was fair and the only deal available to Chrysler. Fiats 20 per cent stake in the new company could be increased to 35 per cent if certain milestones are met, the company has said.
The US Treasury is providing a $4.5 billion bankruptcy loan to help Chrysler reorganize. Loan terms require the company to complete an asset sale to Turin-based Fiat or close another comparable deal in less than 60 days, a deadline set by Obama.
Following the auction, the sale must be closed by June 15, with a 30-day extension for lack of regulatory approvals, according to court filings.
The dissident lenders argued the auction process was moving too quickly and the judge should extend deadlines set by the US Treasury to allow for potential bidders to investigate Chrysler.
Theres no evidence regarding the reasonableness of the bidding procedures, Thomas Lauria, a lawyer for the lender group, said in court. He said the auction process should be rejected as facially inadequate.
Robert Manzo of Capstone Advisory Group LLC, a Chrysler financial adviser, testified the company has essentially been for sale for more than a year, as Chrysler executives sought partnership with automakers around the world and no bidders had surfaced.
Without the Fiat alliance, secured creditors may not receive any recovery, he said.
Ball said distressed assets were often sold quickly, pointing to asset sales by Lehman Brothers Holdings Inc, Bear Stearns and Refco Inc.
Its not perfect, she told Gonzalez. No one is saying it is perfect. We are doing what is necessary. Time isnt our friend here.
The automaker filed for Chapter 11 bankruptcy on April 30 after a group of 20 secured lenders rejected an offer by the US government that would have paid unsecured lenders $2.25 billion for $6.9 billion of debt, or 28 cents on the dollar. http://www.business-standard.com/india/news/fiat-plans-to-shut-five-plants-in-europe-report/60889/on http://www.hindustantimes.com/redir.aspx?ID=f483cf50-be1d-4007-918f-f3f0e14ffef7 FIAT PLANS TO SHUT FIVE PLANTS IN EUROPE: REPORT AFP/ PTI See this story in: Business Standard, Hindustan Times
Berlin: Italian auto group Fiat could shut plants in Austria, Britain, Germany and Italy as part of its plans to take over General Motors' European operations, a German newspaper reported.
Quoting from a proposal it said had been presented by Fiat to the German government, the Handelsblatt daily listed five factories that could be shut down and three others that would have their capacity reduced.
The list of shutdowns includes an Opel plant in Kaiserslautern in western Germany, two GM Europe plants in Luton in Britain and a factory in Graz in Austria, as well as two Fiat plants in Italy, the report said.
Plants that will see their capacity reduced are Zaragoza in Spain, Trollhaettan in Sweden and Antwerp in Belgium, it added.
On Tuesday, Fiat denied a separate report that said it planned to slash 18,000 jobs and close or scale down 10 factories in Europe.
Trade unions have voiced fears about Fiat's plans to create a global car giant from the remnants of General Motors in Europe and Chrysler. http://www.business-standard.com/india/news/fiat-plans-to-shut-five-plants-in-europe-report/60889/on http://www.hindustantimes.com/redir.aspx?ID=f483cf50-be1d-4007-918f-f3f0e14ffef7
FIAT CHIEF MARCHIONNE WILL HEAD CHRYSLER AFP See this story in: The Times of India (May 08)
Milan: Fiat chief executive Sergio Marchionne will head up US automaker Chrysler after its bankruptcy procedure and tie-up with the Italian group are completed, a spokesman for Fiat said on Thursday. "Marchionne will be the new chief executive of Chrysler after the procedure," the spokesman said after Chrysler last week filed for bankruptcy protection and said it would partner with Fiat. Chrysler chairman Robert Nardelli announced earlier that he would stay on only to oversee the bankruptcy procedure and that he should be replaced by a figure from the Italian automaker. In mid-April, Marchionne had already said it was "possible" that he would head both companies. "Fundamentally, that's possible, but the title isn't important. What's important is that they hear me" at Chrysler," Marchionne told the Canadian daily the Globe and Mail. "It's possible that I will have to divide my time between running Fiat and running Chrysler," the maverick industry chief added. Chrysler's new board of directors, which will have six members chosen by the US government and three by Fiat, is expected to name an American chairman, press reports said. With his new portfolio, Marchionne follows the example of Carlos Ghosn, who heads bother Renault and Nissan.
SAAB OPEN TO TALKS WITH FIAT See this story in: The Economic Times (May 07)
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