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| INDUSTRY 'Luxury' Tata Nano's success helps avoid price war Tata Motors may roll over close to $1.05 bn JLR loan INTERVIEWS/FEATURES Make this the year of Maruti Suzuki, dealers told CNG-fuelled cars to hit the track soon Global auto-makers tap Indian talent for overseas design centres COMMERCIAL VEHICLES COMPONENTS Ahmednagar board approves issue of 18 lakh warrants | ALLIED INDUSTRIES JN Guzder resigns from Ceat board FINANCE & INSURANCE LUBRICANTS & ALTERNATIVE FUELS INTERNATIONAL NEWS Porsche fights off bankruptcy talk Honda overtakes Toyota in parts supplier survey Ford announces production halt at Russian plant ECONOMY & FINANCE
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| AUTO SEES 'REAL' GROWTH ONLY IN THE SECOND HALF Sindhu Bhattacharya Daily News & Analysis (Web Edition) New Delhi: Vehicle sales have seen some revival across segments in the last four months, but auto industry captains say real growth would return only in the second half of this fiscal. While they all agree that January sales were a huge improvement over December, March over February and April over March, the industry continues to post lower overall growth year on year. Pawan Goenka, president -- automotive business of Mahindra and Mahindra, says the auto industry is "right now running on oxygen and we need to ensure that the oxygen supply continues. A lot of the positive measures seen over the last few months can be reversed if there is a feeling that the sector is on its way to revival." A senior official at one of the country's largest carmakers says a lot of growth has been generated in the last 3-4 months on the back of heavy discounting, especially in case of passenger cars, but all-pervasive growth is still a far cry despite the freebies. "For some of the country's largest carmakers, operating margins in the March quarter fell by as much as 50%... so the notion that the industry is out of recession is misplaced." On commercial vehicles, clutch maker Setco's chairman and managing director Harish Sheth says, though sales are still in negative territory, "the decline is bottoming out and a slight uptrend is coming back. Still, for the CV industry to reach 2007-08 levels, it will take time. Production of 2009-10 would be less than 2007-08. In 2010-11, it may be able to match 07-08." What then is the way forward? Most industry captains speak in one voice on the differential excise duty structure, asking it to be rationalised. But while M&M's Goenka is in favour of a single excise duty slab, the official at one of the largest carmakers says the differential should be maintained, although in a narrower margin. Currently, cars which are up to four meters in length and have engine displacements of 1,200 cc (petrol) or 1,500 cc (diesel), attract 8% excise duty. But bigger cars fall under the 20% excise slab and also attract specific additional duty of Rs 15,000 in case of MUVs and SUVs with engine displacement of 1,500-1,999 cc. For engine displacement of 2,000 cc and above, this specific duty rises to Rs 20,000. http://www.dnaindia.com/report.asp?newsid=1258938 'LUXURY' TATA NANO'S SUCCESS HELPS AVOID PRICE WAR Bloomberg See this story in: Business Standard (Web Edition) Tata Motors Ltd Chairman Ratan Tata had 500 engineers work for four years designing the worlds cheapest car, convinced cost-conscious Indian drivers could live without air-conditioning and cup holders. He was wrong. Only 20 per cent of Tatas initial 203,000 Nano orders were for the no-frills $2,600 model. Instead, half of the customers booked the top-end model, which costs 40 per cent more. My children need to travel comfortably, said Neelakandan Raveendran, 51, who ordered the most-expensive version of the Nano as his first car. The bank clerk earns 24,000 rupees ($500) a month and will split the cost of the car with his daughter. Sales of more expensive versions with extras such as air- conditioning mean bigger margins for Tata and less chance of a profit-sapping price war with rival manufacturers such as Maruti Suzuki India Ltd., analysts said. There is no demand for a bare-bones car, said Mahantesh Sabarad, a Mumbai-based analyst at Centrum Broking Pvt. Based on this experience, it does give other automakers room for pricing their products higher. They dont have to be drawn down to a pricing war. Toyota Motor Corp. and Renault SA, also planning to sell low-cost cars, may be able to charge more for their models on demand from customers in India where incomes have doubled in the past eight years. Higher prices may enable automakers to boost profits in India, unlike in China, where discounts have hurt earnings amid a boom in sales. Profit at Maruti Suzuki, maker of half the cars sold in the country, and Tata Motors, the No. 3 carmaker, more than doubled in the five years ended March 31, 2008, on new jobs in the worlds second-fastest growing major economy. Marutis 800, its cheapest car, retailing for as little as Rs 1.85 lakh ($3,923) in New Delhi ended its almost two-decade reign as Indias largest-selling model in 2005. It made way for the Alto, which costs 21 per cent more. The 800 now accounts for less than 5 per cent of Marutis sales, said Mayank Pareek, executive officer, marketing and sales, at the carmaker. The cheapest Nano retails for Rs 1.23 lakh, while the top- end variant goes for Rs 1.72 ;lakh in New Delhi. Higher versions of all cars have better margins, Debasis Ray, a Tata Motors spokesman, wrote in an e-mail response to Bloomberg questions. Shares Surge It isnt that the cheapest car sells the largest, said Pareek. There is a clear shift, and customers are not just buying the cheapest car. They are willing to spend a bit more. Maruti, the New Delhi-based unit of Japans Suzuki Motor Corp., has said it wont cut the price of the 800 to take on the Nano. Tata Motors was unchanged at Rs 345.7 at the close of trading in Mumbai. The shares have more than doubled this year, and are the third-best performer in the benchmark Sensex index. Salaries in India will jump an average 8.2 per cent this year, after six successive annual increases of more than 10 per cent, human resource consultant Hewitt Associates Inc. said in February. Toyota plans to introduce a small car in India in 2010, with an initial annual production target of 70,000 units, said Paul Nolasco, a company spokesman. The company hasnt disclosed the details of the car, he said. Toyota has an early prototype for a model that may be able to compete with the Nano, President Katsuaki Watanabe said in Detroit last year. China Prices Renault, Frances second-largest carmaker, and Nissan Motor Co., Japans No. 3, are together building a $2,500 car with Bajaj Auto Ltd., Indias second-biggest motorcycle maker. The cost issue for the car is still crucial, said Pauline Kee, a Nissan spokeswoman. We will monitor the development of the Tata Nano rollout. Its still premature to say whether this will change our strategy for developing the ultra-low cost car, she said. In contrast to India, combined profits at Chinas top 19 automakers fell 48 per cent to 10.8 billion yuan ($1.6 billion) in the first quarter, as Volkswagen AG and General Motors Corp. discounted models. Prices of locally made cars fell 4.08 per cent in April from a year earlier. China has 52 car brands and more than 100 automakers. Honda, Volkswagen With Honda Motor Co., Volkswagen, GM and Ford Motor Co. among automakers building new factories and introducing new products in India, tighter competition and lower profitability is only a matter of time, said Puneet Gupta, a New Delhi-based analyst at CSM Worldwide. Competition is going to be really intense, Gupta said. The carmakers wont be able to enjoy the margins that they are enjoying. Tata Motors will begin deliveries of the Nano in July, choosing the first customers through a lottery. In contrast to the entry-level model, the more popular mid and top end cars will feature amenities such as air-conditioning, fabric seats, central locking, front power windows and cup holders. Everyone around me travels in an air-conditioned car, said bank clerk Raveendren, who is abandoning the familys two-wheeler. My children too wanted one. Its a must. TATA MOTORS MAY ROLL OVER CLOSE TO $1.05 BN JLR LOAN Lijee Philip The Economic Times (Web & Print Edition) See similar story in: The Financial Express (Web & Print Edition) Mumbai: Tata Motors is expected to roll over close to $1.05 billion of debt remaining out of the $3-billion bridge loan it had taken in 2008 to fund the acquisition of British automobile company Jaguar and Land Rover. The term roll over means Tata Motors will sign new contracts with the lenders. http://www.financialexpress.com/news/tata-motors-likely-to-renegotiate-jlr-loan/465857/2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| CARS, SUVs, MUVs Go To Top Virendra Singh Rawat Business Standard (Web Edition) New Delhi/ Lucknow: Car market leader Maruti Suzuki India Limited is testing its cars on the CNG platform before launching them commercially in the next 2-3 years. We have prepared a road map for launching our cars in the CNG format and a pilot project is already under way, Maruti Suzuki chief general manager (marketing) Shashank Srivastava told Business Standard. However, he did not divulge the car models being tested by the company for CNG. He said since CNG was available only in 11 Indian cities at present, such versions had so far not been launched by Maruti. Compressed natural gas (CNG) is a more environment-friendly alternative to other fossil fuels, such as petrol or diesel. External CNG kits can be fitted in our cars, but when we launch our CNG models, it would be much cheaper due to the economies of scale, he added. Currently, no car maker has launched its CNG version in the Indian market, though Maruti 800 and Wagon R are available on the LPG (liquefied petroleum gas) platform. Srivastava said contrary to reports, the company would not discontinue its Maruti 800 brand. Since, the present Maruti 800 does not conform to BS4 norms, which would come into force in 11 cities by April 2010, we are making some basic changes and upgrading its engine to make it BS4-complaint, he said. The 11 cities include the four metros, Hyderabad, Pune, Surat, Ahmedabad, Bangalore, Kanpur and Agra. The current BS3 norms would continue to hold valid for other parts of the country till 2015. Srivastava was in town to launch Ritz, a hatchback positioned at the premium-end of the compact car segment. Ritz is available in eight colours and five variants three in petrol and two in diesel. The ex-showroom price in Lucknow varies from Rs 3.98 lakh to Rs 5.08 lakh. http://www.business-standard.com/india/news/maruti-testing-carscng-platform/359119/ Danny Goodman Business Standard (Web Edition) Maruti Suzuki has launched the Ritz to consolidate its share in the fast-growing market for compact cars. This segment accounts for almost 70 per cent of the car market and Maruti Suzuki already has a 58 per cent share with brands like the Swift. While the Swift, according to the company, has sportiness in its DNA, the Ritz with extra space is a family car. The premium end of the compact segment, where the Ritz has been positioned, has grown at 26 per cent per annum in the last five years, while the segment itself has grown 16 per cent. Sector experts say growth in the segment is largely driven by customers who are third-generation car owners used to the space of a sedan car but dont mind buying a feature-packed compact car that delivers superior fuel efficiency and sports contemporary European styling. Like the Swift, the Ritz will compete with the Hyundai Getz and i10 and General Motors UVA. The petrol-fired Ritz is available in three variants and will cost between Rs 390,000 and Rs 480,000, while the diesel engine-kitted Ritz (two variants) will cost between Rs 465,000 and Rs 499,000. Prices are introductory and ex-Delhi showroom. To a question whether the Ritz priced and positioned directly against the Swift will cannibalise the latters sales, company officials say they expect Swift sales to drop by about 9 per cent. Swift on an average sells around 9,000 units per month. http://www.business-standard.com/india/news/maruti-suzuki-ritz-vs-swift/359170/ MAKE THIS THE YEAR OF MARUTI SUZUKI, DEALERS TOLD The Hindu Business Line (Web & Print Edition) Chennai: Make this the year of Maruti Suzuki. This is the message the companys Managing Director and CEO, Mr Shinzo Nakanishi, has sent its dealers At the dealers conference in Bangkok, Maruti Suzuki said the positive momentum seen from December 2008, after a tough period last year, should continue and become stronger with a stable government in place at the Centre. Mr Nakanishis message to the dealers was clear: The company has put in place a long-term strategy in terms of model range, dealer network and marketing initiatives. Now, the dealers had to put their best foot forward, concentrate not just on a handful of models to achieve growth but push all models and across all regions. The company is now in a position to adopt a flexible approach. If the positive momentum continues, it has the production capacity, the models and the network to tap the opportunity. While competitors have postponed some of their plans, Maruti Suzuki has launched three models in the last 14 months the Swift Dzire, the A-Star and now the Ritz. It has the models to cater to different price points and multiple fuel options. Last year, the company identified new opportunities in the rural market and among government employees, and it hopes to tap into them in a big way to power its growth this year. According to reliable sources, the Managing Directors message to the dealers was that whatever the economic or market situation, the company has to sell much more than the competition. When the market slows, it is the market leader who gains at the expense of the competition. Mr Nakanishi told the dealers that he was worried about the quality of growth. Although the company achieved good overall numbers sales during 2008-09 were up 3.5 per cent to 792,167 vehicles the performance was not uniform across regions and models. The growth came mostly from the Dzire and the Swift, while its performance in many other models was not up to the mark. Mr Nakanishi told the dealers that the companys profits declined due to high commodity prices, foreign exchange changes and demand slowdown. (While its income from operations increased to Rs 20,852.52 crore in 2008-09 from Rs 18,375.84 crore the previous year, profit after tax declined to Rs 1,218.74 crore from Rs 1,730.82 crore previously.) He wanted the company to grow and grow profitably. A goal, he told the dealers, that was not restricted to the company. The theme for the year, according to the Managing Director, is A Winning Mind. In a booming economy, all players are in cosy comfort and growing with the market. But in a tough market, there is no place for a loser. The company had to fight for every single customer. He was confident the company would win and by a wide margin too. http://www.thehindubusinessline.com/2009/05/26/stories/2009052650680300.htm CNG-FUELLED CARS TO HIT THE TRACK SOON Piyush Pandey & Sachin Dave The Economic Times (Web Edition) Mumbai: Leading automobile manufacturers are developing engines that run on compressed natural gas (CNG) as the availability of natural gas is expected to double by this year-end. http://economictimes.indiatimes.com/News/News-By-Industry/Auto/CNG-fuelled- GLOBAL AUTO-MAKERS TAP INDIAN TALENT FOR OVERSEAS DESIGN CENTRES Priyanka Vyas The Hindu Business Line (Web & Print Edition) New Delhi: Global auto-makers are picking up talent from their Indian research and development centres for deputation to their headquarters. Be it Paris or Tokyo, the headquarters of companies such as Renault, Nissan, Honda and Suzuki are using the skills of their Indian staff to work on some of their global models. Maruti Suzuki is increasing the number of its engineers who will be sent to Suzuki Motor Corporations headquarters in Japan. This year, the company plans to send 80 engineers to Japan. Last year, the number stood between 25 and 30. We are increasing the number of engineers who are being sent to Japan for six months to two years. While some of them are being trained on India-specific models, many also work on global models of Suzuki, said Mr C. V. Raman, Chief General Manger, Research & Development at Maruti. Hyundai Motor India also sends its Indian engineers to its overseas development centres. Our Hyderabad R&D centre employs a staff of 220. We send our technical staff to our centres in Korea, Frankfurt and Detroit to work on our world-wide models. We usually send 20-30 engineers depending on the project, said Mr H. S. Lheem, Managing Director and CEO, Hyundai Motor India Ltd. Renault, which has set up a design centre in Mumbai, too said that it posted its staff up to a year in Paris. Our design centre is one of the six satellite centres globally. The Indian centre has the capability to design from a rough sketch to a 3D design and to the actual production of the car. But for cross-pollination of ideas, we do depute some of our engineers from six months to a year, said a spokesperson for Renault India. Honda Siel Cars India, which has so far been assigning temporary overseas posting to its technical staff mainly for country specific models, too will follow the suit. Till now our technical staff used to spend two to three years on models that are to be launched in the country. But now with a compact car, which we will be launching with India as the lead market, inputs will be taken from our Indian staff in designing and development, said an official with Honda Siel Cars India. http://www.thehindubusinessline.com/2009/05/26/stories/2009052650740200.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 2/3 WHEELERS Go To Top Swaraj Baggonkar Business Standard Mumbai: A little more than two-and-half years after Bajaj Auto acquired its first stake in Austrian power bike maker KTM Power Sports AG, the Pune-based company is readying itself to derive full benefits from the alliance. In addition to selling imported as well as locally assembled KTM branded bikes in India, Bajaj Auto intends to utilise the partnership for jointly manufacturing complex, high-end and powerful engines in the near future. This is expected to give a huge boost to both the companies prospects in India. Bajaj Auto, Indias second-largest motorcycle producer, has been looking to establish itself as the leader in the premium bike segment through constant efforts in research and development (R&D), as well as through upgrade of the consumer to higher capacity bikes. Rajiv Bajaj, managing director, Bajaj Auto, said: We will pull out bigger bikes from the partnership. We will bring KTM models here so that our suppliers get properly acquainted with their bikes and engines. It is a process that will demand a lot of effort and time. It will take around five years (for us) to sufficiently integrate them (KTM). The alliance will give Bajaj Auto a much needed access to KTMs intricate engine technology, while also being cost-effective through the use of its own R&D. Bajaj will spend Rs 140 crore this financial year towards R&D. In addition, Bajaj will tap into KTMs extensive service and dealer network spread across premium markets like Europe, while KTM will use Bajajs influence in China, one of the worlds largest two-wheeler markets. The Pune-headquartered company has so far spent about Rs 700 crore in KTM, mainly to buy shares in KTM through its Netherland-based subsidiary company, Bajaj Auto International Holding BV. From the 14.5 per cent acquisition bought in November 2007 for Rs 300 crore, Bajaj had hiked its stake to 31.72 per cent till March this year in the Austrian company. According to the disclosures made by the company at a recent press event, which involved the fourth quarterly results, the company has invested Rs 138 crore alone in KTM last year. Rajiv Bajaj is now also on the board of KTM. The financial condition of KTM was hit hard by the ongoing downturn in the world market, as demand slowed down to alarmingly low levels. According to a financial report submitted by KTM to the Vienna Stock Exchange, it posted a net loss of 44.5 million in the first half of 2008-09, as compared to a net profit of 11 million in the same period of 2007-08. Despite this, Bajaj stated, The downturn has impacted everyone. But we are confident that KTM will bounce back. Newer ventures will positively affect the company. Bajaj Auto is set to launch KTMs Duke 690 a 654cc, single cylinder, 4-stroke engine motorcycle, as well as the 1190 RC8 superbike a twin-cylinder, 1148cc motorcycle, next calendar year. Also, by the middle of next year, the market will witness the launch of a motorcycle being jointly developed by both the companies at present. Thereafter, Bajaj will perhaps launch its first big engine bike in 2011 developed with the help of KTM. Currently, Bajajs Pulsar 220 is the only motorcycle from the company which has an engine capacity higher than 200cc. http://www.business-standard.com/india/news/bajaj-to-use-ktm-alliance-to-roll-out-bigger-bikes/359197/ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMPONENTS Go To Top PTI See this story in: The Hindu Business Line Mumbai: Amtek India, manufacturer of automotive components, on Monday said it will issue 1.21 crore convertible warrants on preferential basis to promoter group companies. The board of the company at its meeting has approved to make a preferential issue of up to 1.21 crore convertible warrants to promoter group companies, Amtek India said in a filing to the Bombay Stock Exchange. The proposal is subjected to necessary approvals from the shareholders of the company. http://www.thehindubusinessline.com/blnus/02251706.htm AHMEDNAGAR BOARD APPROVES ISSUE OF 18 LAKH WARRANTS PTI See this story in: The Hindu Business Line Mumbai: Ahmednagar Forgings, which manufactures and distributes steel forgings, on Monday said it will issue over 18 lakh convertible warrants to the promoter group companies on the preferential basis. The board of the company at its meeting has approved to make a preferential allotment of 18 lakh convertible warrants to promoter group companies, Ahmednagar Forgings said in a filing to the BSE. Further, to cancel the outstanding 38,00,000 warrants of the company and forfeit the amount paid thereon, the filing added. http://www.thehindubusinessline.com/blnus/02251708.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRY Go To Top Bloomberg Rubber increased for the first time in three days as a rally in oil raised the appeal of the commodity as an alternative to synthetic products used in tyres. Futures in Tokyo gained as much as 2.6 percent after losing 1.7 per cent last week. Crude oil rose as much as 0.8 per cent as OPEC ministers prepare to review production levels and the dollar traded near a four-month low against the euro. Higher oil is positive for the price of natural rubber as rival synthetic products are made from naphtha, distilled from petroleum. Rubber drew support from the strength of oil and other commodities, Takaki Shigemoto, an analyst at Tokyo-based commodity broker Okachi & Co., said by phone. Natural rubber for October delivery, the most-active contract, gained 2.1 per cent to 164 yen a kg ($1,734 a tonne) on the Tokyo Commodity Exchange. Futures also advanced on speculation a weakening dollar may boost investment demand for commodities as alternative assets, Shigemoto said. The Reuters/Jefferies CRB Index of 19 raw materials gained 0.7 per cent on May 22 after reaching the highest since November on May 20. The euro traded near the strongest level this year aga-inst the dollar before a report economists say will show German business confidence extended a rebound from a 26-year low, boosting demand for the currency. In the cash market, Thai shippers offered RSS-3 grade rubber for July shipment at $1.65 a kg, compared with $1.63 on May 20, Shigemoto said. Rubber for September delivery on the Shanghai Futures Exchange, the most-active contract, added 0.7 per cent to 14,865 yuan ($2,179) a tonne. http://www.business-standard.com/india/news/oil-helps-increase-rubbers-appeal/359157/ The Hindu Business Line Chennai: Workers at MRFs Arakkonam unit continue their agitation as mediation efforts by the Vellore district administration failed, according to representatives of the MRF United Workers Union. The union, which is demanding management recognition, and the company representatives met with the District Collector separately. But the talks were inconclusive and workers will continue with the agitation, said union leaders. According to Mr V. Prakash, Honorary President, MRF United Workers Union, the authorities had said that the issue was sub judice and the existing laws do not provide for the State Government to prevail upon the company management to recognise a specific union. The workers affiliated to the union, which claims to represent more than 1,150 of the nearly 1,500 unionised cadres, is demanding that the management recognise it as the representative union and initiate wage settlement discussions with it. However, the MRF management has described the union as a rival union. It has entered into a wage settlement with another union, the MRF Arakkonam Workers Welfare Union which it has recognised. The workers have been on an agitation for more than two weeks. The company declared a lockout last week. Mr Prakash said the union has gone to court demanding that the management act on a recommendation of the International Labour Organisation that MRF United Workers Union was the majority representative. But, the labour-related issues come under the concurrent list and the State and Central authorities could act on the issue or order an election to let the union prove its majority. In the absence of support from the authorities the workers have decided to continue with the agitation. According to union sources, MRF also employs over 3,000 contract workers. The management plans to reopen the facility on Wednesday but the union said it would continue its agitation. http://www.thehindubusinessline.com/2009/05/26/stories/2009052650720200.htm JN GUZDER RESIGNS FROM CEAT BOARD PTI See this story in: The Hindu Business Line Mumbai: Tyre major Ceat on Monday said Mr JN Guzder, director of the company has resigned from the board of director due to his continuing ill health. Mr Guzder has resigned from the board of directors with effect from May 11, Ceat said in a filing to the BSE. http://www.thehindubusinessline.com/blnus/02251908.htm | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top Business Standard See this story in: The Hindu Business Line, The Hindu, Asian Age Chennai: United India Insurance company Limited launched an emergency roadside assistance in Chennai in collaboration with My TVS, under the brand name United India Assist. The company plans to increase its present 7 lakh customers in the private car package insurance to 11 lakh in the current fiscal through such measures. The company has entered into a MoU with My TVS, a unit of TVS Group and the services will be provided through the network of authorised service providers of TVS which is spread across 2600 centres in the country. While launching the programme, G Srinivasan, chairman-cum-managing director, United India Insurance, told that it is a value addition to the present customers and will be free of cost. According to the initiative, private cars below 10 years of age and insured by United India will be eligible for the assistance and will be valid till the private car package policy is valid. The revenue from Private vehicle insurance alone amounted to Rs 15 crore for the insurance company. According to Srinivasan, the company foresees a 15 to 18 per cent growth for the private car segment. http://www.business-standard.com/india/news/united-india-insurance-launches-road-assistance/359186/ http://www.thehindubusinessline.com/2009/05/26/stories/2009052650940600.htm http://www.hindu.com/2009/05/26/stories/2009052656021200.htm http://www.asianage.com/presentation/leftnavigation/news/business/credit-crunch-helps-uk-loan-sharks-make-moolah.aspx | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LUBRICANTS & ALTERNATIVE FUELS Go To Top Reuters See this story in: The Economic Times London: Oil prices fell towards $61 a barrel on Monday ahead of OPEC's meeting in Vienna, where the group was widely expected to agree not to cut oil output further. News that Nigerian militants breached an oil pipeline in the Niger Delta failed to push prices higher. US energy firm Chevron said on Monday the attack on its pipeline shut down 100,000 barrels per day (bpd) of production. US crude futures for July delivery fell 64 cents to $61.03 a barrel by 1402 GMT. London Brent crude fell 74 cents to $60.04. US markets are closed on Monday for the Memorial Day holiday. http://economictimes.indiatimes.com/Economy/Oil-at-61-OPEC-cut-unlikely/articleshow/4576866.cms | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERNATIONAL NEWS Go To Top Agencies See this story in: The Economic Times, The Times of India Tokyo: Japan's Toyota Motor Corp. on Monday denied a report that it is considering offering its hybrid vehicle technology to struggling US giant General Motors. The Yomiuri Shimbun reported, without naming its sources, that Toyota would be ready to provide the technology if GM asks for it, even if the Detroit carmaker seeks bankruptcy protection. But a Toyota official said the Japanese giant was "not considering it." AFP Berlin: The German Government said on Monday that it aims to reach a decision by mid-week on which bidder it prefers for General Motors Opel unit, as the clock ticks down to bankruptcy at the once-might US giant. Our aim is to achieve clarity by mid-week with regards to the potential investors and also with representatives from the US side-from the US Treasury Mr Ulrich Wilhelm said. PORSCHE FIGHTS OFF BANKRUPTCY TALK Agencies See this story in: The Economic Times Frankfurt: German luxury sportscar maker Porsche sought to deflect talk of bankruptcy on Monday after acknowledging it had borrowed hundreds of millions of euros from Volkswagen and needed billions more. http://economictimes.indiatimes.com/News/International-Business/Porsche-fights- HONDA OVERTAKES TOYOTA IN PARTS SUPPLIER SURVEY Agencies See this story in: The Economic Times New York: Honda Motor Co. overtook Toyota Motor Corp. as the top company that auto parts suppliers prefer to do business with, according to an annual survey released Monday. FORD ANNOUNCES PRODUCTION HALT AT RUSSIAN PLANT Agence France-Presse Hindustan Times Saint Petersburg; US automotive giant Ford on Monday said it had halted production at its Russian plant until June 5 in response to a slump in demand, a spokeswoman for the company said. "We have suspended production at the Vsevolozhsk factory because of the market situation and forecasts for falling sales in the automobile industry," spokeswoman Yekaterina Kulinenko told AFP. Ford had already halted production for one month this winter from December 24 to January 21. Employees at the plant, located near Saint Petersburg, are to be paid one-third of their normal wages during the shut-down. When production resumes in June the plant will continue with four-day work weeks until October 5, Kulinenko said. Ford's assembly line in Vsevolozhsk, near Russia's second city, has produced the Focus and Mondeo models for sale on the Russian market since 2002 and employs about 200,000 people. Although the Focus is the highest selling foreign model in Russia, Ford has said it plans to cut its annual output to 1.5 million vehicles in 2009 compared with 3.0 million last year. Foreign manufacturers rushed to set up production bases in Russia in recent years hoping to capitilize on what was formerly Europe's fastest growing automotive market. But Russian sales have dropped dramatically in the financial crisis. The market shrank by nearly 50 percent in April compared to the same period last year. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=NLetter&id=53801aeb-67b6-44ee-b370-13017db0f406&Headline=Ford+announces+production+halt+at+Russian+plant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY & FINANCE Go To Top The Hindu Business Line Mumbai: The rupee depreciated marginally by 18 paise against the dollar on Monday in a rangebound market. The rupee opened at 47.27/28 and weakened to touch an intra-day low of 47.46. It closed at 47.28/29 against the previous close of 47.10. In the overseas markets, the dollar strengthened against other major currencies, exerting pressure on the rupee, said a dealer with a private bank. It recovered some of the losses after the domestic equity markets recovered to close in the green, added the dealer. In the forward premia market, the six-month premium closed higher at 3.24 per cent (3.05 per cent) and the one-year closed at 2.63 per cent (2.5 per cent). http://www.thehindubusinessline.com/2009/05/26/stories/2009052650900600.htm PTI See this story in: The Hindu Business Line Mumbai: The Bombay Stock Exchange benchmark Sensex on Monday closed with a moderate gain of 26 points in a choppy trade following weak global cues and traders turning cautious ahead of allocation of portfolios by new government. The Sensex settled at 13,913.22 points, a gain of 26.07 points over the previous close. It moved in a range of 14,028.06 points to 13,819.25 points during the day. However, the wide-based National Stock Exchange index Nifty closed marginally lower by 0.95 point at 4,237.55. It shuttled between 4,270.05 points and 4,205.10 points. The market wiped off early gains following a weak trend in Asian stock markets, which fell after North Korea said it conducted a nuclear test, marketmen said. Traders turned cautious ahead of the allocation of portfolios by the new government tomorrow, they added. Among Sensex stocks, Ranbaxy Laboratories recorded the biggest gain of 20.73 per cent at Rs 266.70, a day after its chief executive officer Malvinder Mohan Singh stepped down. On the other hand, the shares of Bharti Airtel lost 5.41 per cent to Rs 811.40 on fears of earning dilutions, after the company said its plan to buy a stake in South Africa's MTN. Sterlite, the biggest copper producer in India, shot up by 5.94 per cent to Rs 538.10 on gains in prices of metals traded on the London Metals Exchange. http://www.thehindubusinessline.com/blnus/05251901.htm Last Financial closing
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