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| INDUSTRY Collector asks M&M, striking workers to end row INTERVIEWS/FEATURES Nano may help Tatas pip Hyundai from no. 2 slot Honda's new compact to be priced below Rs 5 lakh Ford to make India export hub for small cars Nissan to sell Maruti's 30,000 A-Stars in UK COMMERCIAL VEHICLES Low-floor buses delayed, Bluelines get a breather CONSTRUCTION & AGRI MACHINERY Suzuki aims to end Honda monopoly in scooters | ALLIED INDUSTRIES FINANCE & INSURANCE LUBRICANTS & ALTERNATIVE FUELS INTERNATIONAL NEWS 6 GM executives sell more than 200,000 shares Ford to sell 300 million common shares Chrysler to cut 800 dealers on Thursday Volkswagen gains upper hand in drive for Porsche Honda set to race past Chrysler in US output Wont leave Nissan until profitable: Ghosn ECONOMY & FINANCE Sensex bounces back after two sessions of fall
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| INDUSTRY Go To Top PTI See this story in: The Times of India (Web & Print Edition) Patna: At a time when most states have reported a decline in automobile sales, Bihar registered a 36.64% jump in vehicles in 2008-09, deputy chief minister Sushil Kumar Modi said. COLLECTOR ASKS M&M, STRIKING WORKERS TO END ROW PTI See this story in: The Hindu Business Line (Web Edition), The Indian Express (Web Edition) Nashik: District Collector P Velarasu has appealed to agitating Mahindra and Mahindra (M&M) company's employees and its management to amicably resolve their differences within two days. He said that he will be sending a report on the matter to the government. Mr Velarasu held a meeting with representatives of workers union and the management, last night with a view to end the workers tool down agitation since May 4. He asked both the parties to take initiative to end the impasse. He told both the parties that the strike was affecting several other industries which were depending on M&M and warned that if the deadlock goes on further it may turn into a law and order problem in the city. The agitation has become a major issue in the district and the workers union office-bearers demanded unconditional withdrawal of the 'inquiry suspension order' against the union president, Mr Madhav Dhatrak. The workers are demanding a hike in their salaries. http://www.thehindubusinessline.com/blnus/02121391.htm http://www.dnaindia.com/report.asp?newsid=1255302 http://www.indianexpress.com/news/collector-asks-m&m-workers-to-end-row-in-2-days/457998/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERVIEWS/FEATURES Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CARS, SUVs, MUVs Go To Top Chanchal Pal Chauhan The Economic Times (Delhi Print Edition) New Delhi: Global carmakers looking to the booming Indian car market to salvage their fortunes are planning to imitate Maruti Suzukis strategy of launching hatchback and sedan variants of the same model, as they explore ways to cut costs. Marutis Dzire, the highest selling sedan in the country, owes its origin to another best-seller, the Swift hatchback. Now companies like the worlds largest carmaker Toyota, Europes largest car maker Volkswagen, Japans Honda and Americas Ford Motor plan to use the same technology to make both hatchbacks and sedans for their future launches in India. Toyotas will use its small car platform, Yaris, to launch a small and a big car in India next year. Volkswagens small car Polo as well as Fords new small car will have additional sedan variants. Dzire, priced at Rs 4.6 lakh- 6.7 lakh (diesel and petrol) sold 60,000 units in the last fiscal, and some of its variants have a delivery lag of over two month owing to high bookings. Toyota Kirloskar Motors deputy MD for marketing Sundeep Singh says that the company hopes to achieve its sales target in the country with the twin hatchback-sedan strategy. We have already begun ground work for the small car. While the premium hatchback is for customers upgrading from entry-level cars, the sedan will target customers wanting a bigger car, he says. India will be the only market where both versions of the Polo will be made available. Both cars will be positioned in a way to avoid competing with Skoda Fabia, said Jorg Muller, Volkswagen India president and managing director. The hatchback will be launched later this year and the sedan version will follow after few months. Auto analysts tracking the Indian market said that as competition intensifies in India, manufacturers will find ways to cut costs and multi-product platforms will be used to remain competitive. Dzire is just the beginning and we will see many more companies rolling out two or more cars from a single platform, says Mohit Arora, senior director, JD Power Asia Pacific. Honda Siel Cars India has gone a step ahead to launch two different cars from a single platform. Its soon-to-be-launched premium small car, Jazz, will be based on the Honda City platform. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" NANO MAY HELP TATAS PIP HYUNDAI FROM NO. 2 SLOT Yogima Seth The Financial Express (Web & Print Edition) New Delhi: Hyundais undisputed number two position in the passenger car category for years is at stake, literally. With one lakh Tata Nanos to be delivered this year, analysts expect Tata Motors to overtake Hyundai despite the fact that the gap between the two has widened to 83,153 units in 2008-09 as compared to 49,254 units in 2007-08. While Hyundai registered a 12.6% increase in sales at 2,43,599 units in the last financial year as compared to 2,16,307 units in 2007-08, Tata Motors posted a decline of 3.95% in passenger cars at 1,60,446 units vis--vis 1,67,053 units in 2007-08. However, since Hyundai is expecting to grow by 3-5% in 2009-10 as against the estimated over 50% growth by Tata Motors with the launch of Nano, industry experts feel that Hyundai might have trouble in retaining its lead over Tata as the company has no new product lined up for this year. Eventually, while Hyundai is expected to end the current financial year at around 2,50,000 units, Tata Motors may achieve similar volumes, even if sales of its other cars remain constant. Assuming that the passenger car industry will largely remain flat in 2009-10, for all players, and that there could be a some shift from two-wheelers to four-wheelers to the Nano, Tata Motors have a chance to surpass Hyundai in terms of total passenger car sales in the current financial year, says Abdul Majeed, analyst and partner, Price Waterhouse While Tata Motors marketshare will go up significantly this year because of Nano, Hyundai i20 will face a tough competition from the soon-to-be launched Ritz from Maruti. Since Hyundai has no new product slated for launch this year, it is possible that the company slips behind Tata Motors, says another analyst. We want to retain our marketshare, for which our sales have to grow according to the industry growth. Since industry has been projected to grow by 3-5%, we will also grow by the same rate, Arvind Saxena, senior V-P (sales and marketing), Hyundai Motor India, had said last week. http://www.financialexpress.com/news/nano-may-help-tatas-pip-hyundai-from-no.-2-slot/458194/ HONDA'S NEW COMPACT TO BE PRICED BELOW RS 5 LAKH Pankaj Doval The Times of India (Web & Print Edition) New Delhi: As it gears up to launch its ultra-premium compact 'Jazz', Honda has started work to bring in another small car at lower price. Senior officials at Honda Siel Cars India (HSCI) told TOI that a new R&D team will be in place from June whose main task would be to further indigenise and localise production of key components to keep the price of the new car at around Rs 4.5 lakh, much lower than the Jazz's expected Rs 7 lakh tag. The new small car is expected to be launched within three years. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://timesofindia.indiatimes.com/Business/India-Business/Hondas-new-compact-to-be- FORD TO MAKE INDIA EXPORT HUB FOR SMALL CARS Nandini Sen Gupta The Economic Times (Delhi Print Edition) Ford India plans to make the country an export hub for its small cars, and said it would export its soon-tobe-launched hatchback to Asia Pacific and African markets. Ford will start exporting the small car, due for launch in early 2010, by the end of that year, said Ford India MD Michael Boneham. The company will also export petrol and diesel engines from its new engine plant near Chennai. We will export our small car to regional markets and there is significant opportunity in the Asia Pacific region and Africa. Those markets will be our focus to begin with, Mr Boneham said. Ford is setting up an engine plant with a capacity to produce 250,000 unit. The plant will cater to Indian and regional markets. By 2010-11 small displacement diesel and petrol engines for Asia Pacific and African markets will be sourced from India, Mr Boneham said. Although the car will be exported to the regional markets first, Ford will look at other countries where small hatchbacks are in demand. We will look at markets other than the US where this vehicle can be sold, Mr Boneham said. That may not include Europe in the immediate future, though Ford isnt ruling out that option. According to him, Europe is a very sophisticated market where Ford has a number of products such as the new version Ka which has just rolled out and the Fiesta. But we may look at it in future. But we will definitely not export to the US, he said. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" NISSAN TO SELL MARUTI'S 30,000 A-STARS IN UK Neha Rishi Daily News & Analysis (Web Edition) Mumbai: Maruti Suzuki India Ltd has kicked off exports of 30,000 units of its 'A-Star' car to be sold by the Nissan Motor Company in the UK under the Pixo brand. The first shipment of 2,000 units of A-Star left the Mundra port in mid-April, putting an end to speculation in the market about the number of units contracted by Nissan with Maruti. Confirming the development, a Maruti spokesperson said, "This contract with Nissan is flexible (upwards) with a minimum of 30,000 units to be sold under the Pixo brand."
Maruti also denied any cut in sourcing from Nissan for A-Star as contract details about the number of units to be exported and the price were decided only around March. A Maruti spokesperson said, "The governments in Germany and UK have been giving incentives wherein you can exchange your previous generation emission vehicle with a new generation one. Due to this, the A-Star, which is sold as Alto by Maruti has received a good response. Our own orders are showing an upward trend and we hope a similar response for Pixo." If that happens, then the contract which is for this fiscal may become recurring one, continuing for at least 4-5 years. "Our experience says that this will happen, as Nissan would not make an investment for just 30,000 units since it will not be able to break even with these numbers," he said. A contract of this kind is new in India. Nissan and Suzuki have been in such contracts in Japan earlier. http://www.dnaindia.com/report.asp?newsid=1255516 The Hindu Business Line (Web Edition) Mumbai: Mahindra & Mahindra Ltd has informed BSE on Tuesday that a meeting of the board of directors of the company will be held on May 28, for consideration of the audited financial results and recommendation of dividend, if any, for the year ended Marc h 31, 2009. http://www.thehindubusinessline.com/blnus/02121091.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL VEHICLES Go To Top The Economic Times (Web & Print Edition) Mumbai: Tata Motors has tweaked its commercial vehicle strategy to step up focus on technology-led fuel-efficient vehicles. The technology stop-start is currently applicable in cars and is being introduced by Tata Motors in its mini-truck Ace for the Indian market, said company officials. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" LOW-FLOOR BUSES DELAYED, BLUELINES GET A BREATHER Abantika Ghosh The Times of India (Web & Print Edition) See similar story in: Hindustan Times (Delhi Print Edition)
Delhi has not received a single low floor bus since July 2008. The next lot of 2,500 new buses 1,000 of them air-conditioned were supposed to come in by March this year but will not come for another four months at least. This is what the two companies Ashok Leyland and Tata Motors who are supplying the buses told Delhi government chief secretary Rakesh Mehta on Tuesday. Mehta held separate meetings with both companies and reportedly pulled them up for the delay. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://timesofindia.indiatimes.com/Delhi/Low-floor-buses-delayed-Bluelines-get-a-breather/articleshow/4521904.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSTRUCTION & AGRI MACHINERY Go To Top | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2/3 WHEELERS Go To Top Swaraj Baggonkar Business Standard Mumbai: For the first time in more than 25 years, Japans Kawasaki Heavy Industries will introduce a high-powered motorcycle in the Indian market with the help of its Indian partner and long-time collaborator, Bajaj Auto. Bajaj and Kawasaki had developed various motorcycles during their alliance of almost two decades. However, Kawasaki never launched a product under its own brand name without sharing it with Bajaj. The alliance will see the launch of, perhaps, the 250cc Ninja model of Kawasaki. The model will be made at Bajajs Chakan facility near Pune. This will help the company save on the high duties levied on imported bikes. The 250cc, 30 bhp bike will be imported as completely knocked down kits from Kawasakis Thailand plant. This model will be launched before the end of the year. In an email reply, Masanobu Kawaguchi, manager (sales and operation control, Asia division), said: We are still preparing to launch the Kawasaki model (most probably the 250cc model) and it will be this year. Details will be shared later. The company will also look to launch other high-performance bikes, including the Sports Roadster, Ninja ZX-6R, Z1000 and Vulcan Cruiser. Marketing and distribution will be the sole responsibility of Bajaj Auto. Kawasaki will provide the necessary training and parts back-up. Pricing details will be revealed at the time of launch. Industry sources say the bike will be priced above Rs 1 lakh. These bikes will be sold at Bajajs Probiking showrooms, a chain of retail stores set up for high-end bikes. They may be later made available at Bajajs other dealerships. In return, Bajaj will continue to get help in technology and design development from Kawasaki for its future products. Kawasaki will tap Bajajs supplier base to source components to meet the requirement of its overseas operations. In India, seven to eight of every 10 buyers of two-wheelers go for a low-powered commuter bike with an engine capacity of 100-125cc. But there has been robust growth in demand for bikes with an engine of more than 150cc capacity. Most multi-national two-wheeler producers, including Yamaha, Honda, Suzuki and KTM, believe the local market is on the cusp of progressing to higher-grade motorcycles with bigger engines. Analysts say although the volumes in the high-capacity engine segment (more than 150cc) are lower as compared to the entry-level segment, the former generates better margins. Bajaj has been facing rough weather of late in the domestic market, despite a revival in the two-wheeler segment from January. Its competitors Hero Honda, Honda Motorcycles & Scooters, Yamaha and TVS Motors have all posted better sales. It hopes to cash in on the revival in demand later this year with new models of the Pulsar range and joint products from the Bajaj-KTM stable next year. http://www.business-standard.com/india/news/kawasaki-to-piggybackbajaj/357916/ The Hindu Business Line
SUZUKI AIMS TO END HONDA MONOPOLY IN SCOOTERS Neha Rishi Daily News & Analysis Mumbai: Suzuki Motorcycle India Ltd, manufacturer of superbikes such as the Hayabusa, Boulevard, GSX etc, plans to break the monopoly of Hero Motorcycle and Scooter India Ltd (HMSI) in the automatic scooter segment. Suzuki, which entered the segment a year ago, currently has a market share of 25%, which it plans to double by the end of this fiscal. HMSI dominated the scooter scene for the last 7 years and at present, has a market share of 57% contributed by the Activa and Aviator. Atul Gupta, vice-president (sales & marketing), Suzuki,said, "Until seven years, HMSI had a waiting list for its automatic scooters between 3 to 8 months, but from the time we entered the market in September 2007 with Access 125, HMSI's waiting period came down to almost zero and our waiting period was between 3 to 6 months." Suzuki plans to grow its foothold by doubling production to 20,000 scooters by the end of the fiscal. Gupta claimed HMSI's new Activa was launched to counter the heat from Access 125. "There are a lot of features in Activa which are a replica of the Access. Now, Activa has become a second choice," he told DNA. Gupta added, "Though we cost Rs 2,000 more than the Activa, which is only 110 cc, Access 125 is preferred as it has more power due to higher cc, fuel economy despite higher cc and more product features as compared to the new Activa." However, Yogesh Mathur, regional sales head, HMSI, said the company does not face any threat from Suzuki as the Activa still rules the scene. HMSI's two models are selling 55,000 units per month of the total market of 1,00,000 automatic scooters, Mathur said. "We recorded a growth of 11% in the last fiscal and for the current fiscal as well we will maintain a 10% growth," he added. Mathur attributes the higher sales to better availability of credit; Gupta says scoters belong to the utility segment and are mainly cash purchases, so the credit crunch was never a factor. Both players, strong in the scooter segment, plan to focus on motorcycles as well, where they expect the next wave of growth to come from. While HMSI will enter the 100cc segment, Suzuki Motorcycle will launch a 125cc bike by next year and the existing Zeus and Heat (125cc) will become entry level bikes. http://www.dnaindia.com/report.asp?newsid=1255521 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DUMPING DUTY MOOTED ON CV PARTS FROM CHINA G. Srinivasan The Hindu Business Line New Delhi: The Commerce Ministry has recommended imposition of preliminary anti-dumping duty on imported Front axle beam and steering knuckles (also known as axle arm or stub axle) meant for heavy and medium commercial vehicles from China. Following a petition filed by Bharat Forge Ltd, Pune, on behalf of the domestic industry, the Designated Authority in the anti-dumping cell said FAB is a safety critical item as it carries the load of the vehicle and also keeps the steering in place. FAB is used in medium and heavy commercial vehicles to carry the front weight of the vehicle, the horizontal and vertical loads on bumpy roads and to act as a cushion through spring leaves for a comfortable ride. Steering knuckles are a very critical component, as it controls the steering of the vehicle. Any breakage or damage of steering knuckles would affect the steering of the vehicle, leading to loss of control that might cause an accident. Probe restricted to imports While admitting the subject goods for probe, the Authority clarified that the ambit and scope of its investigation is restricted to imports of front axle beam and steering knuckles meant for heavy and medium commercial vehicles originating in or exported from China only and the entire axle assembly is not a part of the scope of investigation. Investigation was carried out beginning from April 1, 2008 to September 30, 2008 and the injury analysis, however, covered the fiscal years 2005-06, 2006-07, and 2007-08 and the period of probe of six months of the first half of the last fiscal. The Authority held that various parameters pertaining to domestic industry collectively and cumulatively establish that the domestic industry has suffered material injury. Stating that figures available from the Society of Indian Automobile Manufacturers (SIAM) confirmed a decline in the countrys commercial vehicle production during the period under investigation, the Authority has found that within the available demand, the domestic industry has lost its market share, thus establishing that the sales volumes of the domestic industry have declined because of dumping and decline in demand. In its finding, the Authority said since the applicant is a multi-product company with significant domestic and export markets and since the dumping commenced only recently, employment and wages of the domestic industry have not been impacted so far. But, the productivity has plummeted in line with the decline in production. Hence, it has recommended a provisional anti-dumping duty of $0.50 a kg on the Chinese firm Hubei Tri-ring Auto Axle Co Ltd and any other Chinese exporter of front axle beam for medium and heavy commercial vehicle from China. In the case of steering knuckles, the recommended anti-dumping duty on the Chinese firm Hubei Tri-ring Forging Co Ltd is $0.63 a kg, while any other exporter from China of the axle arm or stub axle is to fork out an anti-dumping duty of $0.69 a kg. http://www.thehindubusinessline.com/2009/05/13/stories/2009051351731500.htm SUNDARAM BRAKE TO ISSUE RIGHTS SHARES The Hindu Mumbai: Sundaram Brake Linings has informed the Bombay Stock Exchange that the board has approved the issue of 12.21 lakh equity shares of Rs. 10 each at a price of Rs. 122 per share (including premium of Rs. 112 per share) aggregating Rs. 14.90 crore on a rights basis in the ratio of 9 shares for every 20 equity shares. http://www.hindu.com/2009/05/13/stories/2009051353651600.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRY Go To Top PTI See this story in: The Hindu Business Line New Delhi: In yet another case of anti- dumping duty, India is considering an extra levy of up to 15 per cent on the import of tyre-making equipment from China. After reaching a conclusion that the domestic industry has suffered material injury,'' the Directorate General of Anti-dumping and Allied Duties (DGAD) has recommended an ad valorem anti-dumping duty of 15 per cent on the import of tyre-curing presses, used to give shape and tread pattern to automotive tyres. On an application from Larsen and Toubro Ltd, the DGAD had initiated an investigation into the dumping of the machine from China. The DGAD found that imported tyre-curing presses comprise 7 per cent in 2007-08 volume-wise of the total in the domestic market from just 0.6 per cent in 2004-5, and 15 per cent weight-wise in 2007-08 from 2 per cent in 2004-05. According to a recent World Trade Organization (WTO) report, India initiated the highest number of anti-dumping investigations, 42, followed by Brazil and China, between July and December, 2008. The country has already imposed the duty on imports of fabric, yarn, nylon tyre cord and thionyl chloride from China. With demand recession in major economies like the US and many Europe, countries like China are targeting big and growing markets like India. http://www.thehindubusinessline.com/blnus/03121691.htm Business Standard A cross-section of employees at the MRF Arakkonam factory are planning to surrender their ration cards and voter IDs to the government on Wednesday. The move is to ptotest against the governments apathy towards meeting their demands. Meanwhile, Chennai-based tyre manufacturer MRF moved the Madras High Court against the striking workers. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top The Telegraph Calcutta: IndusInd Bank will focus on growing its vehicle finance business and not pursue other retail loans, such as home loans or education loans, in the current financial year. In 2004, the Hinduja group merged Ashok Leyland Finance with IndusInd Bank to save the ailing bank. Vehicle finance is our core business in consumer banking and we will like to focus on growing it rather than expanding our retail loan bouquet and incurring more bad debt, said Romesh Sobti, managing director and CEO of IndusInd Bank. The bank is doing well with its Rs 7,200-crore loan book in the vehicle finance business that has gross non-performing assets (NPA) of Rs 179 crore. Our net NPA in vehicle finance is 1.7 per cent and this is much below the industry average of 4.5 per cent, Sobti said. We also have a small portfolio of home loans worth Rs 170 crore, but we dont want to increase this aggressively in the current fiscal. Well look at increasing our home loan book next year, he added. In April last year, when the Romesh Sobti-led management took over, consumer banking (primarily vehicle finance) contributed 55 per cent to the banks total loan book. At the end of 2008-09, retail lending comprised 45 per cent, while 55 per cent came from corporate lending, Sobti said. However, the banks vehicle finance business hardly grew in 2008-09. This was because the overall vehicle finance market was down, he said. IndusInd Banks growth in advances came primarily from corporate lending. Our corporate lending increased 53 per cent during the year from Rs 5,500 crore to Rs 8,400 crore, Sobti said. http://www.telegraphindia.com/1090513/jsp/business/story_10956707.jsp | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LUBRICANTS & ALTERNATIVE FUELS Go To Top See this story in: The Indian Express Singapore: Oil prices fell for a second straight day on Tuesday, consolidating after touching a six-month peak last week, on weaker equities and a firm dollar. Crude prices touched $58.75 on Friday, the highest since November, after the United States shed fewer-than-expected jobs in April and government stress tests results calmed uncertainty over the health of US banks. US crude fell 32 cents to $58.18 a barrel at 0240 GMT and London Brent crude slid 18 cents to $57.30. "Overall sentiment is still positive. It's a consolidation of last week's rise to a six-month high, which is a welcomed respite. There's some fear that it's gone up too much," Michelle Kwek, an analyst at Informa Global Markets in Singapore, said. Investors took profits in equity markets this week, driving the Dow Jones industrial average down 1.8 per cent on Monday. Tokyo's Nikkei average fell 1.4 per cent by the midday on Tuesday. Fuelling optimism for economic recovery, Federal Reserve Chairman Ben Bernanke said the US government's stress tests appeared to be helping banks gain access to private capital. He also said the dollar would be strong, because the US central bank would keep inflation at bay by raising interest rates when the time is right. The dollar was steady on Tuesday, holding onto most gains made a day earlier when it rebounded from a four-month low against a basket of currencies. A stronger dollar is bearish for oil as it makes the commodity more expensive for holders of other currencies. Oil has plunged from a record high above $147 a barrel hit in July, but a rally in stock markets over the last few months has helped lift US crude up almost 80 per cent from a January low of $32.70 a barrel. Given a dearth of important economic data this week, traders will look out for US oil inventory data for some direction. US crude stockpiles probably rose for the 10th straight time last week, up by 1.2 million barrels, while distillate stocks likely rose 1.1 million and gasoline stocks fell by 500,000 barrels, a preliminary Reuters poll ahead of weekly government inventory data released Wednesday showed. http://www.indianexpress.com/news/oil-holds-above-58-per-barrel/457919/2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERNATIONAL NEWS Go To Top AP See this story in: The Times of India Detroit: Bankruptcy protection for the biggest US automaker is becoming more probable with a deadline just over two weeks away, the company's top executive told reporters. General Motors CEO Fritz Henderson is still holding out hope that the company can restructure without court protection, but he says the tasks to complete before a June 1 government-imposed deadline are large. 6 GM EXECUTIVES SELL MORE THAN 200,000 SHARES AP See this story in: The Times of India Detroit: Six General Motors Corp. executives recently sold more than 200,000 shares of the automaker as GM moves toward issuing new equity to give large stakes to the US government and a United Auto Workers retiree health care trust fund. http://timesofindia.indiatimes.com/Business/International-Business/6-GM-executives- FORD TO SELL 300 MILLION COMMON SHARES Reuters See this story in: The Economic Times, The Indian Express, The Pioneer, Deccan Herald Detroit: Ford Motor Co said on Monday that it would sell 300 million common shares and use part of the proceeds to pay off its healthcare obligations to the United Auto Workers under the terms of a recently concluded deal with the union. Ford also said it expects to grant to the underwriters -- Citigroup, Goldman Sachs, JPMorgan and Morgan Stanley -- a 30-day option to buy up to 45 million shares of common stock. Ford shares fell 4.6 percent to $5.80 in after-market trade following the stock offering. At that price, the new shares would raise about $1.7 billion for Ford. Ford is the only U.S. automaker that has not sought government aid. Ford's stock offering comes on the heels of a successful debt exchange. Ford shares have had a four-fold rise in price since hitting a low of $1.50 on February 20. Ford said net proceeds from the stock offering would also be used for general corporate purposes. "Today's equity offering is another example of the fast, decisive action we are taking as we build momentum on our plan, including further progress on improving our balance sheet," Ford Chief Executive Alan Mulally said in a statement. Ford is trying to raise capital to fund the Voluntary Employee Beneficiary Association (VEBA), a union-run fund set up for retiree healthcare expenses. Ford restructured payments into the VEBA, including the option to contribute about half in company stock, to conserve cash. But the plan to make payments in stock requires shareholder approval at Ford's annual meeting this week. Ford, which posted a net loss of $1.43 billion in the first quarter, has said it believes it has adequate liquidity to operate through the economic downturn without seeking emergency U.S. government loans. http://www.indianexpress.com/news/ford-to-sell-300-mn-common-shares/457921/2 http://www.dailypioneer.com/175672/Ford-Motor-plans-to-raise-$2b-via-equity-issue.html http://www.deccanherald.com/content/2179/ford-sell-300-m-shares.html CHRYSLER TO CUT 800 DEALERS ON THURSDAY Agencies See this story in: The Economic Times Detroit: Chrysler LLC plans to fire up to 800 of its 3,200 dealers on Thursday, a lawyer seeking to represent the dealers said on a conference call. The lawyer, Stephen Lerner, who heads the bankruptcy and restructuring practice of the law firm Squire Sanders, told dealers on the Tuesday call that the automaker plans to reject at least 800 franchise agreements, according to a dealer who listened to the call. VOLKSWAGEN GAINS UPPER HAND IN DRIVE FOR PORSCHE Reuters See this story in: The Economic Times Olbia, Italy: Volkswagens chairman has laid down the terms for a merger with Porsche SE in a clear sign that Europes biggest carmaker has won the upper hand in a power struggle with a would-be predator. HONDA SET TO RACE PAST CHRYSLER IN US OUTPUT Bloomberg See this story in: The Economic Times Los Angeles: Honda Motor Co, Japans second-biggest automaker, may build more vehicles than bankrupt Chrysler LLC in North America this year, further weakening Detroits grip on its home market. http://economictimes.indiatimes.com/News/International-Business/Honda-set-to-race-past- Reuters See this story in: Deccan Herald Tokyo: Automaker needs to offer new cars to compete with rivals, but a sharp sales slide and big losses have forced it to delay manufacturing projects and new models.
http://www.deccanherald.com/content/2176/nissan-posts-24-b-loss.html WONT LEAVE NISSAN UNTIL PROFITABLE: GHOSN Reuters See this story in: Business Standard Tokyo: Carlos Ghosn, chief executive of both Nissan Motor Co (7201.T) and Renault SA (RENA.PA), said he would not resign as the Japanese carmaker's chief before it was once again comfortably making profits. Ghosn, sent from Renault in 1999 to lead Nissan initially as chief operating officer, had previously said he expected to stay for 10 years at most. "If you leave now, you wouldn't be leaving -- you would be deserting," he said in an interview, after announcing his first annual operating loss on Tuesday. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY & FINANCE Go To Top The Hindu Business Line Mumbai: The rupee gained by around 20 paise against the greenback on Tuesday, on the back of sustained dollar inflows and improvement in the risk appetite of investors. The rupee opened with a negative gap at 49.65 and strengthened to touch an intra-day high of 49.23. It closed at 49.31, against the previous close of 49.52. The rupee opened weaker, tracking the negative US equity markets. However, the rally in the global and domestic equity indices propped up the rupee, said a dealer with a public sector bank. The weakness of the dollar against the euro and the pound in the overseas markets also helped the rupee, added the dealer. In the forward premia market, the six-month premium closed marginally higher at 2.80 per cent (2.75 per cent) and the one-year closed at 2.28 per cent (2.26 per cent). http://www.thehindubusinessline.com/2009/05/13/stories/2009051351370601.htm SENSEX BOUNCES BACK AFTER TWO SESSIONS OF FALL PTI See this story in: The Hindu Business Line Mumbai: Software stocks and Reliance Industries on Tuesday led the year's second-biggest rally at the Bombay Stock Exchange, with the benchmark Sensex rising 475 points on expectations that a weak rupee will boost exports. The Sensex, which remained weak in the last two trading session and lost 433 points, bounced back to record a handsome gain of 475.04 points at 12,158.03, after touching the day's high of 12,193.63. The key index surged by over 731 points on May 4, the biggest single-day gain this year. The 50-share National Stock Exchange index Nifty shot up by 126.50 points at 3,681.10, after hitting the day's high of 3,691.65 points. The rally was backed by Reliance Industries and Infosys Technologies, the two firms together having nearly 30 per cent weight in the index. Reliance Industries, the countrys biggest company by market value, jumped 5.32 per cent to its highest in almost eight months. Infosys, the countrys second-largest computer-services provider, climbed 5.51 per cent. The IT sector index gained the most, by 5.19 per cent, to 2,836.77, as Infosys, which relies on overseas markets for more than 98 per cent of sales, climbed 5.51 per cent to Rs 1,597.95. Wipro, which counts on overseas customers for more than 75 per cent of revenue, gained 7.40 per cent to Rs 375.25. http://www.thehindubusinessline.com/blnus/05121901.htm Last Financial closing
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