| MAHA CMS INTERVENTION FAILS TO REOPEN M&M PLANT Shweta Bhanot, Sanjay Jog The Financial Express (Web & Print Edition) See similar story in: The Hindu Business Line (Web Edition)
Bacchav told FE on phone from Nashik, M&M Employees Union want that the management unconditionally revokes the suspension of its president Madhav Dhatrak and sign a revised MoU with the union before May 30. On the other hand, the management has taken a firm stand that there will not be any compromise on discipline and it will not revoke Dhatraks suspension. I have already briefed the chief minister, twice. I have also appealed to the CM to hold meeting in Mumbai with the concerned persons next week in a bid to resolve the stalemate. At stake is the validity of an MoU signed by the company with the previous workers union. The new union wants the management to cancel the MoU. The previous MoU signed on February 27 had envisaged salary hike of Rs 4,000 and curtailment in holidays and transport allowance. The newly constituted union wants it to be changed. However, the management stuck to the previous MoU. All efforts will be made by the state government to resolve the present crisis, a state government source said. M&M also stated in its release on Thursday, the MoU was a "long-term settlement. This was done in February 27, 2009 despite the difficult economic conditions. The workmen do get a share of the new settlement benefit with retrospective effect from conclusion of last settlement.
When contacted, a company spokesperson said, There is a status quo at Nashik plant. She did not elaborate on the issue. In a release on Thursday, M&M had said that it has a stock in the pipeline of up to a month and hence retail sales to the customers will not be immediately affected. "A short-term loss of production can be recouped by refilling the inventory, M&M had said. It has said that there will be production loss due to the ongoing strike, loss of wage by the workers and hence impact all shareholders. On Friday, M&M shares closed at Rs 494.25 down 4.28% on the BSE.
According to union sources, there are in all 7,000 employees comprising 2,700 permanent, 1,500 each daily wage earners and 1,500 on contract at the plant. Work has come to a standstill since May 4 after Dhatrak was suspended without giving him an opportunity to explain his case. Nashik plant daily produces nearly 600 vehicles comprising 180 Bolero, 150 Scorpio, 150 Xylo and the balance are other variants. The daily loss can be around Rs 45 crore. There is an inventory of over 5,000 to 6,000 vehicles lying in the plant, sources said. The Nashik plant produces M&M's flagship Scorpio and utility vehicles Bolero and multi-purpose vehicle Xylo, besides Mahindra Renault's sedan Logan. http://www.thehindubusinessline.com/blnus/02081235.htm
M&MS KINETIC DEAL NOT TO TRIGGER OPEN OFFER Lijee Philip & Kausik Datta The Economic Times (Delhi Print Edition)
Bharat Doshi, group CFO of M&M, says the new entity does not requirement immediate fund infusion. We will be able to meet the working capital requirement by borrowing from banks, he adds. Some people are not so certain about the success of the new company. They say the KMCL management has failed to put the bleeding company on the rails. Only time will tell whether M&M can succeed in this business which is already crowded in India. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
JOB-INTENSIVE SECTORS OPPOSE SAFEGUARD DUTY ON IMPORTS Arun S Yahoo India (Web Edition) See similar story in: The Financial Express (Delhi Print Edition)
Claiming that the authorities are yet to hear their views, the domestic user industries especially the employment-intensive ones like knitwear and commercial vehicles have warned that slapping safeguard duty on imports that they use as inputs, will not only harm them but also lead to job losses. Safeguard duties on imports would increase the costs incurred by these sectors and reduce profitability at a time of global economic slowdown, they said.
The Standing Board on Safeguards, headed by commerce secretary GK Pillai, on Monday (May 11) would consider whether to impose safeguard duty on acrylic fibre, auto parts like crankshaft, 'hot rolled coils/sheets/strips', coated paper, uncoated paper and particle board.
Already the directorate general of safeguards, citing the criticality of the situation, has imposed provisional safeguard duties of 20% for 200 days on these products (except on particle board, the provisional safeguard duty is 30%, while it is 25% on HR coils).
Official sources said on the basis of its findings, the Board could impose safeguard duties of 20%-35% on these items over and above the existing duties of 5% to 10%. But it would be a balancing act, as high safeguard duties will harm the local user industries, sources said. "We have an open mind. We will take into account all the representations that we have received from all the sectors, including the local user industries. The final decision will be balanced," a senior official told FE.
The government will be imposing safeguard duties on imports after it found that the domestic industry has suffered from sudden import surges. Unlike anti-dumping duty that is country-specific, price-based and takes a longer time to be enforced, safeguard duty is imposed quickly based on the import volume and is applicable against all countries (unless otherwise specified. Also it can be China-specific sometimes due to their World Trade Organisation terms of accession).
In the case of acrylic fibre, there are only three domestic producers of the item Indian Acrylics Ltd, Vardhaman Acrylics Ltd and Pasupati Acrylon Ltd. But there are around 18 importers and users of the product in the country (based out of Punjab and Rajasthan). The imports of the item come mostly from China, Taiwan and Korea.
The domestic producers claimed that a sudden surge in imports at lower prices dented their market share and caused huge revenue losses. But the knitwear industry, that uses acrylic fibre as an input, said imposing safeguard duty on the item would help only three companies, while on the other hand it would hurt several units in the knitwear sector.
Increased costs of imports will result in reduced profitability or even losses and in turn lead to retrenchment of workers in the knitwear sector (part of the manmade fibre sector that employs 4 million people), said Vinod Ladia, chairman of Shree Rajasthan Syntex Ltd and a representative of knitwear sector. Imposition of safeguard duties of 20% or above on acrylic fibre over and above the 5% duty would increase its prices in the local market and would lead to additional costs to the knitwear industry, he said.
Besides, there is already an anti-dumping duty on acrylic fibre imports from Korea and Thailand (till 2013), and Japan and Belarus (till 2009-end). The knitwear sector representatives met government officials here on Friday to present their case.
Another other user industry that would be hurt due to safeguard duty will be the commercial vehicles. The imported items in this regard are HR coils and auto-components.
Bharat Forge is the monopoly supplier of several components used by commercial vehicles sector. The imports come mostly from China, while importers are well-known companies like Ashok Leyland and Tata Motors. Bharat Forge has claimed that import surges resulted in contraction of their monthly sales, resulting in losses in revenue and market share.
But a commercial vehicles sector representative said, the sector had reduced prices after the recent excise duty cut. The growth in the sector has shrunk by as much as 40%, he added. "If the government imposes safeguard or anti-dumping duties, it will add to our costs and would impact our pricing ability and profitability. It would also hurt employment," he said, requesting anonymity. According to a recent WTO report, India, with 19 initiations since 1995, remained the most frequent user of safeguard measures. In early 2009, the country initiated 3 safeguard investigations, all on chemical products, it said.
However, Pillai told FE that India has so far imposed safeguard duties only on about five products on finding a surge in imports, adding that some of these measures are China-specific. Pillai said the safeguard actions taken by India till now would affect only about 2-3% of the total imports. http://in.biz.yahoo.com/090508/203/batjr0.html
UK RIGHT TO PLAY TOUGH WITH JAGUAR LAND ROVER Una Galani Business Standard (Web & Print Edition) See similar story in: The Economic Times (Web Edition)
JLR was acquired in a debt-funded deal last year by Indias Tata Group. The carmaker wants the UK to underwrite 340m loans from the European Investment Bank for developing green technology, according to a person familiar with the situation. The EIB wont release the loans without the guarantee. JLR is also seeking a 450m loan from Royal Bank of Scotland and Lloyds Banking Group. But these loans appear to be tied into the conditions on EIB support.
The government is understandably wary of giving aid to JLR. Doing so would make it hard to say no to other struggling UK companies. But its latest offer looks especially tough. The proposal is to underwrite just half the EIB loan for six months, with an immediate one-off charge of 15%, according to a note by BCG Partners which the government has not denied. The government also allegedly wants Tata to cede effective management control by granting it the right to appoint the chairman, to run the day-to-day operations and veto redundancies among JLRs 14,000 staff.
These demands dont wholly stack up. JLR is best run as a commercial enterprise, so government involvement at board level would be undesirable. Restrictions on JLR cutting the workforce are hardly an efficient way of creating a long-term, sustainable business. Far better for the taxpayer to be compensated for the risks of any rescue by simply making the financial terms suitably expensive as seems to be the case already.
Perhaps the government wants to look tough after providing a 5m bridging loan to struggling vanmaker LDV owned by Russian oligarch Oleg Deripaska earlier in the week. But it would be wrong to let politics obstruct a sensible support package for JLR financed by the EIB and two commercial banks, albeit both government controlled.
Of course, the UKs strong-arm tactics may just be a way of forcing Tata to find the cash within its sprawling conglomerate to prop up JLR. If that succeeds, then that would be a winning move. But the UK should not overplay its hand. http://www.business-standard.com/india/news/uk-right-to-play-toughjaguar-land-rover/357535/ http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/Fate-of-Jaguar-Land-Rover-refinancing-deal-uncertain/articleshow/4501439.cms?curpg=2 |
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| CARS, SUVs, MUVs Go To Top Business Standard (Web & Print Edition) See similar story in: Daily News & Analysis (Web Edition), The Times of India (Web Edition), mint (Web & Print Edition), The Economic Times (Web Edition)
If the move materialises, it will mark a major change in HMILs original strategy of making India an export hub for its small cars.
We will address the European market from a local plant there, confirmed an HMIL spokesperson. Hyundai has a plant in the Czech Republic and another is coming up in Russia. The i20 for the domestic market will continue to be manufactured in India.
The i20 is expected to account for 40 per cent of the Korean companys exports for 2009-10. The company had earmarked 80 per cent or 120,000 units a year of the 150,000 i20s produced in India for the European market. Last financial year, the car maker exported 253,354 units (of all cars, including the i20) from India, about half its annual production.
Industry analysts, however, view the move as a means of pressuring the Tamil Nadu government to take tougher measures against labour, following a 17-day strike at the factory which ended on Thursday.
The labour cost is 23 a day compared to 3 per day in India, so there is no question of the company shifting production and making the car at the same cost as India, said the executive of an automobile company that has dealings with Korean companies.
Troubles had erupted after the company management declined to recognise the registered union and dismissed 65 people, suspended 34 and transferred several others for enrolling in the union. The union had also raised issues on Hyundai hiring contract manufacturers for direct manufacturing and denying leave benefits to workers.
The strike was called off after the management agreed to answer about 45 demands from workers, and not take action against them when they return to work. It also agreed not to come to any wage settlement agreement with the working committee till May 20.
The strike saw production drop 5 per cent and senior executives said the company met only 85 per cent of its export target.
The i20, which is positioned as a premium car in the Indian market (priced at Rs 4.8 lakh), is considered an entry-level car in Europe.
Recently, most European governments agreed to offer special exchange bonuses to buyers of new cars. As a result, Hyundai saw exports grow more than 75 per cent in the last financial year. http://www.business-standard.com/india/news/hyundai-to-shift-i20-production-to-europe/357549/ http://www.dnaindia.com/report.asp?newsid=1254167 http://www.livemint.com/2009/05/08115352/Hyundai-may-shift-some-car-pro.html
SKODA PLAYS TO ITS STRENGTHS WITH THE NEW SUPER DIESEL Kartik Ware Business Standard, (MOTORING)
The interiors are what surprised me the most. How Skoda has managed to shorten the wheelbase and yet increase the space on the inside is beyond me. Those of you who have read Dr Who will remember his extra-dimensional phone booth. It looked small on the outside, but was actually a high-tech vehicle with huge space inside. That is the impression that the Superb gave me. Rear seat space is unmatched by any other car in its class and is big enough for you to live in.
The flagship Skoda also comes loaded with all the creature comforts that will keep you entertained for a long time. The centre console is a nice touchscreen unit that shows you everything from tyre pressure to your music playlist. The front seats have more adjustments than I care to bother myself with, while the rear seats swallow you as you stretch your legs and kick back.
Everything on the inside feels good to touch and you will have no option but to let the Superb pamper you. It even has airconditioning vents on the B-pillar for the rear passengers. Bringing up the rear is that absolutely gigantic boot. It has a smart system by which it can either open as a conventional boot or raise the entire rear section to become a notchback, in which guise it will appeal to the Italian mafia more than any other car. There is that Italian connection again.
Engine-wise, we Indians have to make do with the Pumpe Duse engine in the Superb, because mothership Volkswagen has reserved the more popular common rail system for the Passat. There has to be some distinction between the two marques, right? Besides, there is no issue with PD, other than it is not as refined as common-rail and is slightly harsh on the ears too. But PD tech has some more life left in the VW stable, especially because VW find it suitable for developing countries in terms of cost of production, plus it is pretty fuel efficient too. And it makes the Superb go!
The Superbs Pumpe Duse engine develops 140 bhp at 4,000 rpm, and twists out 32.6 kgm of torque at 1,750 rpm which hustles it around with admirable urgency. It is no hot rod tyre shredder, but neither is it a slouch. It pulls cleanly throughout the rev range and there is a distinct step up in acceleration after about 2,500 rpm and the Superb takes off. Acceleration is strong and the Superb gathers speed in a pleasing manner and you are never left wanting for more.
Well, 10.9 seconds for the century mark in a diesel-powered luxury barge is pretty decent, no? The engine, though it exhibits some amount of lag, is pretty responsive and leaves the DSG gearbox playing catch up. Some more lag is felt as the gearbox figures out what exactly it is that you want. But it does shift seamlessly and in Sport mode, it will hang on to each gear to extract every bit of performance from the engine. It also comes with Tiptronic shift and steering mounted paddles in case your chauffeur thinks he does not need to be told by the gearbox which gear is appropriate.
What impresses more than the engine performance is the ride and handling package. Feel through the steering wheel is equally good at low as well as high speeds, which gives you confidence at the wheel. The Superb now features excellent ride quality that absorbs all that that our beloved municipal corporation can dish out as they go on with their never ending quest for buried treasure all over the city. Even over prolonged patches of bad roads, you are sitting comfortably instead of being flung around from one end of the cabin to another.
You might think that handling might suffer because of the cosseting ride, but that is not the case. The Superb goes around corners in a stable fashion and though it is no corner carver, it will not embarrass you either. Other than the looks, this is perhaps the biggest improvement of the new Superb over the previous one. The older Superb was barge-like, while the new one is much tauter. At expressway speeds, the Superb remains planted and the steering setup allows you to effect lane changes with minimum effort. Braking too is strong and sure like the rest of the dynamic package and never induces any heart-fluttering moments. But I cannot help missing the Italian factor in this department.
But there is one issue. As I mentioned before, the engine is rather noisy once you floor it and this is not becoming of a car in this category. I do not really mind it, but prospective customers, who are switching from petrol cars to this one, might. Other than this, I really cannot think of anything else that is wrong with this Superb, indicating that Skoda has got it very right. It is a well-engineered and good-looking car that is also economical to run. And at Rs 21.50 lakh (ex-showroom, Mumbai), it is not bad value either. And if you are not too ambitious, it can even be fun to drive. Few would disagree when I say that the Superb diesel will be the more popular version in the lineup. As for me, I am waiting for the 260 bhp Superb V6 already. Italian Job, anyone? http://www.business-standard.com/india/news/superb-it-is/357496/
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| COMMERCIAL VEHICLES Go To Top
While light commercial vehicles (LCV) recode mixed results that vary dramatically from company to company, not since early in the second quarter of the previous financial year have medium and heavy commercial vehicles (MHCVs) been anywhere near escaping the red zone. ASHOK LEYLAND APRIL SALES DOWN The Hindu Business Line (Web & Print Edition) See similar story in: The Economic Times (Web Edition), Business Standard (Delhi Print Edition)
Exports were also down in April at 135 vehicles compared with 671 in the previous month.
Market observers say that while there are some signs of pick up of economic activity (for example, steel manufacturers recently hiked prices), commercial vehicles sales are still down because of the capacity build-up in the previous year.
In April 2008, Ashok Leyland had sold 5,705 vehicles, including 4,676 medium and heavy duty trucks.
Mr S.V. Parthasarathy, Head (Consumer Finance), IndusInd Bank, who looks after commercial vehicles portfolio of the bank, feels that the over capacity absorption would happen not earlier than September. http://www.thehindubusinessline.com/2009/05/09/stories/2009050950540200.htm
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| CONSTRUCTION & AGRI MACHINERY Go To Top |
| 2/3 WHEELERS Go To Top Business Standard
Chennai/ Mysore: Haryana-based Rasandik Motors Pvt Ltd, an arm of 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 the 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 TVS Apache motorcycles.
Assembling the spares procured from the Greater Noida plant at Delhi will be the first phase of the Nanjangud 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 around Rs 1,000, besides direct supervision of quality control and sales, director MS Ramaprasad said.
Earlier too Rasandik, he said, was procuring frames from its Gurgaon plant and supplying to 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, except the engine, Ramaprasad said.
The Rs 300-crore and 1,200 employee Rasandik Engineering Industries manufactures 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/357509/
KINETIC MOTOR NET AT RS 2.71 CR
NEW CO MAY SOURCE BIKE ENGINES FROM CHINA
Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
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| COMPONENTS Go To Top |
| ALLIED INDUSTRY Go To Top |
| FINANCE & INSURANCE Go To Top Asian Age
Its a win win situation for the auto companies, their dealers and the banks with just one sticky point and that is, if the customer defaults, the banks bear the losses.
The banks lend on the basis of advice given by the company. The bankers hope that with the help of dealers they will be able to recover the loans. Mr Hitesh Kuvelkar, associate director, research, First Global said: "Banks and non-banking financial companies (NBFCs) had gone slow in their auto loans because of the large number of delinquencies. Loans to four wheelers had dropped from 70 per cent to 55 per cent and in the case of two wheelers it fell from 75 per cent to 60 per cent.
Sales have improved recently he said and their research paper on autos reveals that "low interest rates, reducing inflationary pressures, easier availability of vehicle financing and the election season helped to drive the overall year-on-year growth in the industry volumes in April 2009."
A spokesman of Tata Motors which has tied up with Bank of India and Canara Bank said: "When a company ties up with a bank the customer who comes to the the dealership, gets the service of the bank at the dealership itself." He said over 90 per cent of auto purchases in India are financed.
Mahindra which has tied up with the State Bank of Indore says customers benefit because they not only get cheaper loans but "the turn around time is reduced, since the dealer channels are aware about the procedure and documentation required to process loans from these banks and the employees are also aligned in that direction." Earlier even Honda Siel Cars India had tied up with the Punjab National Bank and Hyundai Motors tied up with the State Bank of Travancore.
Its a big marketing strategy for the auto companies and for the banks it gives a focus to their lending. One banker said that since the dealers and the auto companies scout for customers it puts less pressure on banks to check out customers.
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| LUBRICANTS & ALTERNATIVE FUELS Go To Top AP See this story in: Hindustan Times
"Market psychology has clearly turned around," said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. "I could see oil going above $60."
Benchmark crude for June delivery was up 53 cents to $57.24 a barrel by midday in Singapore, in electronic trading on the New York Mercantile Exchange. On Thursday, the contract rose as high as $58.57 a barrel, a six-month high, before settling up 32 cents at $56.47.
Until this week, oil had traded in a range near $50 a barrel since the end of March as investors looked for evidence that the US economy had stabilized after a severe recession in the fourth and first quarters.
On Thursday, several US retailers, led by Wal-Mart Stores Inc., reported better-than-expected April sales, and new applications for jobless benefits fell to the lowest level in 14 weeks, signaling a wave of layoffs may have peaked.
Still, some traders are skeptical that the recent run-up in prices is warranted, given the slump in consumer demand and surging crude inventories. The International Monetary Fund forecasts the global economy will shrink 1.3 percent this year.
"I think the market has gotten a little ahead of itself," Moltke-Leth said. "The fundamentals don't support this recent rally." Investors will be watching for the monthly US jobs report for April. The unemployment rate rose to 8.5 percent in March, the highest since 1983. "It's like the market is saying, "Hey, we're not in free fall anymore, that's good."'
Moltke-Leth said. "But you still have an economy contracting and more people unemployed, and that will continue for a long while."
In other Nymex trading, gasoline for June delivery rose 2.80 cents to $1.69 a gallon and heating oil gained 1.44 to $1.50 a gallon. Natural gas for June delivery jumped 6.8 cent to $4.12 per 1,000 cubic feet. In London, Brent prices rose 80 cents to $57.27 a barrel on the ICE Futures exchange. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?section
The Hindu Business Line
http://www.thehindubusinessline.com/2009/05/09/stories/2009050950620200.htm |
| INTERNATIONAL NEWS Go To Top Bloomberg See this story in: Business Standard
Chrysler LLCs secured lenders that opposed the automakers bankruptcy sale of assets to a company run by Fiat SpA are dropping their fight in the bankruptcy court case, a lawyer representing the group said. The group, calling itself Chryslers Non-TARP lenders, may withdraw objections to the sale, said Tom Lauria, the White & Case attorney representing the group. After a great deal of soul-searching and quite frankly agony, they concluded they just dont have critical mass to withstand the enormous pressure and machinery of the U.S. government, he said.
AILING GM MOVING PRODUCTION OVERSEAS: REPORT Agencies See this story in: The Economic Times
TOYOTA SEES $5.5 BN LOSS AS SALES SKID Bloomberg See this story in: The Financial Express, The Economic Times, Hindustan Times, The Statesman, The Times of India, mint
The 72-year-old automaker, which posted its first loss in almost six decades last year, said it lowered the dividend to stem further losses. Incoming president Akio Toyoda, 53, will be responsible for reviving sales and cutting costs as rising unemployment and falling wages in the US, Europe and Japan sap car sales.
All Toyota can do now is save costs as much as possible and wait until the uproar subsides, said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments Ltd in Tokyo. The company needs to build a foundation to turn profitable next fiscal year.
Separately, Toyota registered to sell as much as 700 billion yen in bonds, according to a filing to the Japanese finance ministry. The two-year registration goes into effect on May 16. S&P Ratings Services cut Toyotas long-term credit rating to AA from AA+, S&Ps third-highest investment grade ranking. A lower credit rating may boost borrowing costs.
The credit crisis has crippled car demand worldwide and led to a reshuffle of the auto industry. In the US, Chrysler LLC filed for Chapter 11 bankruptcy protection on April 30 to reorganise with Italys Fiat SpA and General Motors Corp, the largest US automaker, is racing to beat a June 1 deadline to restructure outside of bankruptcy courts.
In Europe, Porsche SEs controlling shareholders, the Porsche and Piech families, agreed to create a combined company with its Volkswagen AG unit on May 6, ending the sports-car makers bid to increase control over Volkswagen, Europes largest automaker. Toyota forecasts an operating loss of 850 billion yen this fiscal year, compared with operating loss of 461 billion yen a year earlier. http://www.financialexpress.com/news/toyota-sees-5.5-bn-loss-as-sales-skid/456600/ http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=253696 http://www.livemint.com/2009/05/08113528/Toyota-Q4-loss-69-bn-sees-t.html
NOVELIS SEES INCREASED USE OF ALUMINIUM IN AUTO INDS PTI
About 90 models of cars and light trucks today use Novelis aluminum sheet for a variety of body panels or structural parts, the company said in a statement on Thursday, issued from Atlanta. Novelis is a leading producer of aluminum sheets for automobile s.
Lightweight aluminum is emerging as an important part of the solution to improve fuel efficiency and reduce greenhouse gas emissions in vehicles, said Mr Erwin Mayr, President of Advanced Rolled Products for Novelis in Europe.
The most popular automotive application for aluminum sheet is the hood or bonnet. More than 80 models are currently using Novelis sheet to help reduce weight in the front end of the vehicles. Other applications include fenders, deck lids, doors, roofs, l ift gates and structural components. When the weight of the car is reduced, the engine uses less fuel and produces fewer emissions, and vehicle handling and performance are improved as well, he said.
Novelis is a subsidiary of Aditya Birla Group's flagship firm Hindalco Industries Ltd, one of Asia's largest integrated producers of aluminium and a leading copper producer. http://www.thehindubusinessline.com/blnus/02081720.htm
CHINA CARMAKERS MAY LEAD MAINLAND-TAIWAN TIES ON GLOBAL GOALS Bloomberg See this story in: Business Standard
Taiwans biggest partsmaker, Tong Yang Industry Co, and TYC Brother Industrial Co, ranked second, both said this week theyre open to deals that may help boost sales in China, Asias biggest auto market. Chinas push to develop more-advanced cars and warming cross-strait ties may make that possible.
It is a good idea to take over partsmakers in Taiwan, said Yale Zhang, a consultant at CSM Asia in Shanghai. Component-makers there have come up with outstanding technologies in many areas.
Tong Yang and TYC Brother have both more than doubled in Taipei trading this year on speculation mainland carmakers existing ties with Taiwan suppliers may lead to direct investments. The islands auto industry will likely be one of the first opened to mainland companies. SAIC Motor Corp, Chinas biggest domestic automaker, and Geely Holding Group Co have both previously bought assets overseas.
China wants to buy industry leaders the biggest and the best, said Peter Tzeng, a Taipei-based Polaris Securities Co analyst.
Tong Yang, the worlds biggest maker of replacement fenders, would consider approaches from Chinese investors, said Fancy Hsu, a spokeswoman. None has been received so far, she added. The company, which built its first mainland factory, in 1994, supplies automakers including Chery Automobile Co, Chinas biggest own-brand carmaker, and China FAW Group Corp
TYC Brother would welcome proposals from Chinese carmakers to buy a stake if the tie-up will help us expand in China and globally, said spokesman Hsia Kang. Depo Auto Parts Industrial Co., Taiwans third largest partsmaker by sales, will also consider deals if any are offered, said spokesman Anshun Cheng.
Tong Yang, which also makes body-parts and windshields, climbed 5.9 per cent in Taipei trading to close at NT$34, the highest since October 15, 2007. TYC Brother rose 2.3 per cent to NT$22.55. Tong Yang is the best performer this year among the 45 companies in Bloombergs global partsmaker index.
Chinese carmakers can consider deals in Taiwan as the mainland government announced the end of an investment ban on April 29. The same day, China Mobile Ltd said it had agreed to buy 12 per cent of Far EasTone Telecommunications Co, the first investment by a Chinese state-owned company in Taiwan since a civil war ended six decades ago.
The Taiwan cabinet is set to consider opening up 65 industries, including the autos, to mainland investors within two months, Fan Liang-tung, executive secretary of the Ministry of Economic Affairs Investment Commission, said May 6.
Chinese automakers are already building a presence in Taiwan, with Chery and Geely, the largest private automaker, both set to begin sales there this year. An automakers group also sent an 83-member delegation to the island last month to look at options, including cooperation in developing in-car navigation systems.
We see a lot of opportunities for development in Taiwan, said Jin Yibo, a spokesman for Wuhu, China-based Chery. The automaker, which will offer A3 compacts in Taiwan from November, will source 60 per cent of parts locally, he added.
Chinese automakers are interested in investing in overseas partsmakers as a lack of technology is hindering government plans to develop global players. At present, most local carmakers are predominately assemblers for overseas automakers.
What we need most is the core technologies, such as the capacity to design and make engines and gearboxes, said Zeng Qinghong, general manager of Guangzhou Automobile Group Co, a Chinese partner of Toyota and Honda Motor Co. The company will consider acquisitions at home and overseas, he added.
The government is merging the 14 biggest automakers into 10 and supporting research into alternative-energy vehicles to help develop the industry. Geely Group is also in talks to buy Ford Motor Cos Volvo Car Corp unit, according to people familiar with the situation. Wang Ziliang, a spokesman, wasnt available for comment.
Still, Chinese automakers havent always benefited much from overseas deals. SAIC bought rights for cars designed by collapsed UK automaker MG Rover Group Ltd in 2005 to temper its reliance on partners GM and Volkswagen AG. Last year, GM and Volkswagen vehicles still accounted for more than 90 per cent of sales. SAICs South Korean unit, Ssangyong Motor Co, also entered receivership in February after sport-utility-vehicles sales plunged.
Whether Chinese companies have the management skills needed for overseas investments is the question, said Zhang Xin, a Guotai Junan Securities Co analyst in Beijing. The small size of the partsmakers Tong Yang has a market value of about $440 million may also limit the benefits of deals, he added.
Zhu Xiangjun, a SAIC spokeswoman, declined to comment on the carmakers plans in Taiwan.
Chinese automakers have pursued small overseas acquisitions to fill specific needs and provide a platform for future developments. Geely Group agreed to buy Australia-based Drivetrain Systems International, the worlds second-biggest independent maker of automaker gearboxes, for about A$47.4 million ($36 million) earlier this year. Other deals may follow as carmakers can count on state support, said Zhang. Money is definitely not an issue, he said. http://www.business-standard.com/india/news/china-
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