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| INDUSTRY Unions oppose JLRs new revamp plan JLR leadership to blame, say UK labour unions INTERVIEWS/FEATURES CARS, SUVs, MUVs Volkswagen India plans to double distribution network Volkswagen to raise Passat, Jetta sales Renault finds the going tough Hyundai starts 'Driving school' COMMERCIAL VEHICLES 2/3 WHEELERS COMPONENTS Jabalpur auto parts makers facing tough times | ALLIED INDUSTRIES Union Bank in pact with Mahindras for vehicle finance Vijaya Bank ties up with VE Commercial OIL, LUBRICANTS & ALTERNATIVE FUELS INTERNATIONAL NEWS Chrysler board to consider product plan ECONOMY & FINANCE Sensex down 88 points on profit taking
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| AUTO SECTOR REVIVAL TO HELP COMPONENT COS CREDIT QUALITY: CRISIL The Financial Express (Web & Print Edition)
Going forward, Crisil expects the pressure on the credit profiles of component suppliers to ease. This applies specifically to companies that maintain a healthy balance sheet, participate primarily in the growing two-wheeler, passenger car and utility vehicle and light commercial vehicle segments, and are diversified with a reasonable presence in the after-market where demand continues to be stable. Should some of these trends sustain, they can set the stage for a potential improvement in the credit quality of these suppliers over the medium term, Crisil pointed out. In recent months, says Crisil, the domestic demand for automobilesespecially two-wheelers, passenger cars and light commercial vehicleshas turned for the better. This growth has positive demand implications for autocomponent suppliers. The demand for two-wheelers and passenger cars (including UVs) increased 15% and 21%, respectively in the first five months of 2009-10, compared with the corresponding period of 2008-09. The demand for LCVs increased 11% during the first five months of 2009-10 over the corresponding period last year. Better availability of finance, lower cost of finance, more income in the pockets of a large section of consumers following the implementation of the Sixth Pay Commission recommendation and increased rural penetration have supported the demand growth. Many auto-component suppliers are also expected to benefit from the decline in input prices. Most component suppliers have also exhausted the high-cost inventory, which had piled up as sales slowed down in the second half of 2008-09. Auto-component suppliers have also implemented several cost reduction measures and are exhibiting greater caution in undertaking capital expenditure programmes. Conversely, entities with a weak capital structure, narrow product profile, and a greater reliance on the medium and heavy commercial vehicle segment or export markets where demand remains weak, are unlikely to see a significant relief in their credit quality over the near term. Crisil currently has ratings outstanding on 83 auto-component suppliers. UNIONS OPPOSE JLRS NEW REVAMP PLAN Manu P. Toms The Hindu Business Line (Web & Print Edition)
We have told the company that we will not accept any plan which attacks the pension scheme or introduces a two-tier workforce. These demands must be off the table before we can negotiate with the company, Ms Pauline Doyle, spokesperson for the Unite, the largest labour union in the UK, told Business Line. This was in reaction to the new turnaround business strategy which was made public on Thursday and incidentally, referred to the probable closure of a plant in the West Midlands. The unions will be meeting in the coming weeks to discuss our formal response, Ms Doyle said in an e-mail response. The Unite believes that the JLR management went back on its earlier agreement and, instead, attempts to bring in new terms without negotiations. In April, the management and the unions had agreed on certain changes to the wage terms. The employees agreed to take a two-year freeze on increments and in return, the company assured them that there would be no lay-offs. We are very concerned that, without any negotiation, the company is seeking to push through further changes in terms and conditions which would see the pension scheme shut and replaced with an inferior one, and the introduction of a two-tier workforce as new starters will be expected to begin work on wages which are 20 per cent below those of their colleagues, Ms Doyle said. Mr Dave Osborne, Unite National Secretary for the automotive sector, said in a statement, It appears that the company is making our members pay for its failure to secure government funding. Talks to continue A Tata Motors spokesperson said the company discussed the new business plan with the representatives of employees on Thursday. The plan has been discussed with the unions. The discussions will continue and we hope to arrive at mutually satisfactory conclusions, he added. http://www.thehindubusinessline.com/2009/09/26/stories/2009092652150100.htm JLR LEADERSHIP TO BLAME, SAY UK LABOUR UNIONS The Hindu Business Line (Web & Print Edition)
In a strongly worded statement issued immediately after the JLR revival plan was made public on Thursday, Mr Dave Osborne, National Secretary for the automotive sector of Unite union, said: While the company may say that the business cannot sustain further liabilities, the truth is by far the biggest liability is the companys leadership team. Unite is the largest union in the UK. Some of the problems the company faces exist as a result of past management failures. These failures were at the hands of the same team who want our members to lose their pensions. Well, Unites members will not be paying for managements incompetence and we will not stand by while those responsible continue to wreak havoc on this business. Another labour union GMB also reacted sharply. GMB will be opposing everything we have heard so far. We will fight the company on this of that I have no doubt, Mr Bert Hill, GMB Regional Officer, said on hearing the revival plan. http://www.thehindubusinessline.com/2009/09/26/stories/2009092651150300.htm | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERVIEWS/FEATURES Go To Top Bijoy Kumar Y Business Standard (Motoring)
Honestly, that is what the history lessons would want you to believe. Not necessarily me. Sure, evolution meant cars that looked newer and car-making processes that were newer. But I thought and still think the W210 and W211 are cars that are maligned for no real reasons. The W210s were robustly built cars and I dont remember them failing me or anyone whom I knew. Just a month back, I spent a week in a W211 Special Edition and thought it had better ride quality and comfort than most contemporary Audis and BMWs. Yes, a few cars in Europe suffered electrical problems and had some issues with brakes, but hey, they still looked classy and they were pretty well-built. And this was also the decade when the alphabets A, M and G started to mean run for cover, as some stupendously fast E-Class cars came out wearing them. In short, I am prejudiced walking into this first drive. But those who know me will tell you that the W124 cast a massive spell on my formative years as a motoring scribe it became the benchmark for almost everything cars were meant to be. At least for me. And guess what, I think the W212 that you see in these pages looks as if it ahem, sculpted out of a rock. Oh God, am I discovering 1990s jargon again! The twin-trapezoidal headlamps and the upright grille are certainly inspired from the past and so are the squared-out bumpers, flanks and rear view mirrors. The new E-Class is a very large car from the outside enormous enough to give you hints of how the next generation S-Class will look, while the prominent wheel arches at the rear are inspired by the current S-Class. Inside, the squared-out theme continues, with the instrument console leading the way. The wood inserts look and feel classy again (the last generation interior wasnt bad at all), though space is at a premium for a car that looks oh-so-big. The electric seat adjustments are now on the door so that healthy people like me do not have to bend unnecessarily. As usual, the E-Class lives up to brilliant ergonomics, but comfort more than sportiness seems to have become the focus. Still, the attention is more on the front seats than where most owners are going to spend time in at least in India. It is high time Mercedes-Benz delivered a mini-limo version, stretched at the B-pillar so that more legroom can be liberated. A host of engines are available for the new E-Class. What will come to India first is the E350 petrol (and not the CGI version) that is good for 268 bhp at 6000 rpm and 35.7 kgm of peak torque. This will be followed by the 231 bhp, 54.8 kgm E350 diesel a few months down the line. There are even smaller (read economical) diesels in the form of the E220 and E250, and we would expect one of these engines to make its debut sooner rather than later since they make for brilliant fleet cars. Our drive was restricted to the streets of Lutyens Delhi and that meant not enough opportunities to check out the performance. So you will have to wait till we subject the car to a proper road test for numbers. The W212 does not ride as well as the Mercedes-Benzes from the 1990s however especially on slightly broken roads. But one has to understand that modern E-Class cars with powerful engines are meant to handle way better than the tanks of yore and need stiffer suspension setups. The steering, while more precise than in the older cars, still feels more fluid (and hence more luxurious) than the sportier German competition. To sum up, the first impression is that Mercedes-Benz has begun the journey to their hallowed past with this new E-Class. But a whole lot has changed since the days of the W124 cars need to have performance, they need to be agile and they need to be economical. That also means that Mercedes-Benz needs to set new benchmarks rather than chase old ones. It will be interesting to drive a more powerful car (an E63 perhaps?) in its natural surroundings to find out how the new chassis copes. Watch this space. http://www.business-standard.com/india/news/back-to-square-ones/371254/ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CARS, SUVs, MUVs Go To Top PTI See this story in: The Economic Times (Web Edition)
http://economictimes.indiatimes.com/news/news-by- VOLKSWAGEN INDIA PLANS TO DOUBLE DISTRIBUTION NETWORK IANS See this story in: The Economic Times (Web Edition)
VOLKSWAGEN TO RAISE PASSAT, JETTA SALES The Hindu (Web & Print Edition)
The new manufacturing facility at Pune is expected to start production of new Polo in the beginning of 2010. It will adopt updated German technology. The plant, set up at an investment of about Rs. 3,800 crore, will have an installed capacity of 1.10 lakh units. The company is focusing on higher volume of sales of Passat and Jetta. http://www.hindu.com/2009/09/26/stories/2009092661902100.htm Murali Gopalan The Hindu Business Line (Web & Print Edition)
The joint venture with Mahindra & Mahindra to produce the Logan at Nashik plant was planned with an installed capacity of 50,000 units annually, but sales have barely been one-third the figure. The second plant in Chennai with global ally, Nissan, has not had any participation from Renault yet. Some months ago, the company announced that it had frozen investments here while continuing to be involved in the construction of the facility. Nissan, though, is on track with its own car programme. The ultra-low cost (ULC) car project planned with Bajaj Auto and the Renault-Nissan combine (with the French company as the lead player) has not moved to any critical stage either and reports are already doing the rounds within industry that it is not going to take off soon. In a nutshell, Renault is back to the drawing board as far as India is concerned with vendors and dealers sceptical of its prospects. Some of them believe that Renault has only itself to blame, coming in without a long-term strategy and also banking too heavily on the support of its Indian partners. It could be only a matter of time before it packs up its bags and bids adieu to the country, an ancillary supplier said. However, a Renault spokesperson reiterated that the company remained committed to its plans here while staying non-committal on any specific course of action for the future. All this seems unrealistic if one were to rewind to 2005 when the joint venture with M&M was signed to produce the Logan. This was quickly followed up by the mega announcement to invest Rs 4,500 crore in Chennai, once again with M&M but with Nissan included as the third partner. This was the time when the CEO of Renault and Nissan, Mr Carlos Ghosn, spoke of Indias prowess in frugal engineering which, in turn, spawned the idea of the $2,500 ULC car as an obvious rival to the Tata Nano. None of these plans has worked. Mahindra-Renault, the company entrusted with the Logan, would need more funds in the near term to keep the momentum going at Nashik. There were indications that the Sandero hatchback would be added to the product line-up but the economics of manufacturing the car did not quite add up. Clearly, the Logan cannot continue to do numbers of under 1,000 units a month if the business plan has to remain viable. M&M believes a little re-engineering is needed to qualify it as a small car which will make it cheaper (as a result of lower excise duty) and, therefore, more attractive. Whether Renault is willing to tinker with the Logan, which is otherwise doing extremely well in other parts of the world, is doubtful. The net result is that, without another significant investment on the Logan, the future of Mahindra-Renault, at least for the moment, looks bleak. As for the Chennai plan, M&M dropped out of the three-way plan. Renault and Nissan decided that they would make up for the void but, as in the case of Nashik, progress has been slow. Mr Ghosn recently declared that synergies between Renault and Nissan would be the mantra for the future and the obvious inference was that the French partner would use its allys platform in Chennai for some of its own products. There has been no progress on that front either. In contrast, sources say, the way Volkswagen and subsidiary, Skoda, have worked out a common strategy platform for India should be the best reference point for Renault and Nissan. Will Renault go the way of its French counterpart, Peugeot in 1997? The global slowdown has made things more difficult for multinationals in terms of allocation of funds and waiting indefinitely for returns on investment. Sources say that Renault may just decide to confine its India role to a centre for engineering, design and global sourcing of components while burying the idea of new products. http://www.thehindubusinessline.com/2009/09/26/stories/2009092650400200.htm GM INDIA TO OPEN FIVE MORE USED CAR CENTRES Business Standard (Web Edition) Kolkata/ Bhubaneswar: With a view to tap the growing used car market in the country, General Motors (GM) India Limited plans to roll out five more Chevy Ok used car centers within a fortnight. GM India has already opened 17 such centres across the country and these centres have recorded over 500 transactions. GM India has got a very good response to its used car business in the country. We are going to add five more Chevy Ok centres in different locations within a fortnight, P Balendran, vice-president (sales), GM India told Business Standard. GM India is banking on the growing used car market to bring incremental revenues amidst declining sales of passenger cars in the aftermath of economic recession. "India offers a huge market as far as pre-owned cars are concerned as for every model of passenger car sold in the country, two used cars are sold. The used car market in India is still largely unorganized and it needs to be tapped effectively," he added. GM India is offering a guarantee of six months on all its used car models. The pre-owned cars are subjected to a series of inspections at the companys outlets to ensure a fair deal to the consumers. The size of the used car market in India is estimated at about 10 lakh units per annum, with the market being largely fragmented and unorganized. The share of the organized market in this segment is only about 10 per cent while unorganized dealers account for another 30 per cent share. The balance 60 per cent of the sales in the used car market is through personal dealings between the buyers and the sellers. http://www.business-standard.com/india/news/gm-india-to-open-five-more-used-car-centres/371299/ HYUNDAI STARTS 'DRIVING SCHOOL' Yahoo India (Web Edition)
This driving school, set up under the aegis of Hyundai Motor India Foundation (HMIF), aims to provide driver training which will lead to livelihood opportunities for the economically backward youth in the villages around the factory. With an annual investment of Rs.12 lakh, towards the operation of the 'Driving School' which is located within the factory premises, Hyundai Motor India Foundation (HMIF), plans to accommodate 4 batches of trainees every year and aims to train around 100 youth to be disciplined drivers. Speaking on the occasion, S.Ganapathy, Advisor HMIF, HMIL remarked, "HMIL has long felt that there is a great need to train drivers and help promote road safety and reduce instances of road accidents. This school will teach potential drivers not only how to drive safely but also familiarize them in matters of road rules and driving etiquette. We feel that such schools will go a long way in making our roads safer while at the same time it will offer employment opportunities for the rural youth in and around our factory." http://in.biz.yahoo.com/090925/50/bau8ul.html | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL VEHICLES Go To Top | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSTRUCTION & AGRI MACHINERY Go To Top The Hindu http://www.hindu.com/2009/09/26/stories/2009092656851500.htm | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2/3 WHEELERS Go To Top PTI See this story in: The Economic Times
After launching the bike- E Sprint- here, the company now plans to roll out E Sprint across the country. http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/Hero-Group-launches-high-speed-electric-bikes/articleshow/5057607.cms | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMPONENTS Go To Top Anjana Chandramouly & Swetha Kannan The Hindu Business Line
While such disputes are not new, only in mid-1990s, human resource development, as an industrial practice, gained significance. Violence and assaults are not unknown but the latest incident has sent shock waves in industrial circles. With improved economic and educational background of todays second-generation workers, incidents of this nature are coming down compared to the late 1970s and early 1980s. But events such as this one and earlier ones in Gurgaon and Assam are unfortunate, says Mr D.V. Nandakumar, Vice-President (Industrial Relations), Bosch Ltd. The role of an HR executive is crucial in ensuring a peaceful work atmosphere, but when issues do crop up, it is important to prevent escalation, point out HR experts. There should be a fair, equitable and legal way of handling HR issues, especially when it involves dealing with labourers. HR professionals need not always be pro-management. They should understand workers needs and advise the management accordingly, says Mr Ahmed Ali, Chairman HR and Training Committee, Bangalore Chambers of Industry and Commerce (BCIC). Mr Nandakumar, an HR professional for 30 years, stresses the need to have a two-way communication. Instead of just sending out notices to workers, the management must strengthen the dialogue process in the organisation and look at employees as partners in the companys growth. All differences can be dissolved through dialogue. If the culture of dialogue is blocked, that can give rise to tension. Botched up feelings can lead to extreme emotions. If management is sensitive to workers needs, things wont escalate in any organisation, he says. Even while dismissing an employee, the management has the responsibility to convey to the worker where he went wrong, he adds. Proactive role Some organisations play a proactive role to prevent such violence. In an attempt to understand what the employees think, auto major Volvo conducts exhaustive employee surveys across all its global facilities every year. Based on the feedback received, the company conducts workshops on implementing changes wherever necessary, says Mr Atanu Sengupta, Head HR, Volvo India, adding, we believe in diversity and inclusiveness of employees. Violence can never be justified, says Mr Nandakumar. While its understandable that loss of job can lead to emotions and insecurity, it cant justify violence. In the Pricol case, the workmen could have filed a case or gone to the labour commissioner with their grievances. Loss of life does not do any good to anyone. The industrial climate and working atmosphere gets affected, he says. In addition to workers rights, importance should be laid on workers responsibilities too. Violence has no place in any industry. You are just doing a job for an organisation. In any civil society, people can coexist even with differences and handle differences in a proper manner. You need not resort to violence. I would say this even if the management had beaten up a worker, he adds. Any issue can be resolved through a tri-partite discussion involving the employer, union or workers and the Government, says Mr Ali. Acts of violence can slur the image of the country at a time when foreign investors are looking for a slice of action here, say industry players. Says Mr T.R. Parasuraman, Chairman of the industry and manufacturing expert committee of BCIC, When India is on a growth path, incidents of this nature will dampen investor confidence. We need to reflect this seriously and put in every effort to prevent such happenings in future. When foreign investors are looking at us, this is not a good sign. Industrial growth will get affected and will in turn affect employment. http://www.thehindubusinessline.com/2009/09/26/stories/2009092650821500.htm JABALPUR AUTO PARTS MAKERS FACING TOUGH TIMES Shashikant Trivedi Business Standard
The manufacturers said the state government had put the parts, which they prominently manufacture for VFJ, under 5 per cent value-added tax (VAT) category as a result of which they could not compete with outsiders. Intra-state sales attract 2 per cent central sales tax while inter-state sales of vehicle parts attract 5 per cent VAT. We cannot compete even with manufacturers of the neighbouring states, said Arun Jain, secretary, Mahakoshal Chambers of Commerce and Industry. There are 35-40 vehicle parts manufacturers in Jabalpur. These are now facing biggies like Tata and Ashok Leyland vendors. The combined turnover of all manufacturer is hardly 20-30 crore. The VFJ manufacture all kinds of four-wheelers for defence and places orders worth crore of rupees but our share has now reduced to 0.1 per cent or less owing to tax disparity, Jain added. The high rate of VAT has pushed us in the red. We have become uncompetitive against outside bidders in VFJ and other ordnance factories. The outside suppliers are issued Form C and thus, it attracts only 2 per cent central sales tax. High rate of VAT on raw material, non-availability of raw material and additional burden of entry tax has put us in loss-making zone, Ravi Gupta, president of Jabalpur Laghu Udyog Sangh said. The manufacturers are also under tight squeeze owing to shrinking orders as Tata and Ashok Leyland vendors have signed a deal with the VFJ to supply parts. The VFJ has discontinued trucks like Shaktiman, Nisan and Jonga jeep and has started making new models like Stallion and LPTA as a result the local manufacturers have few orders. Also they (VFJ) ask the suppliers to get their parts approved by Tata and Ashok Leyland, why will they approve local manufacturers part?, he added. The VFJ officials were not available for comments. However, state Finance Minister Raghavji said, The state government cannot reduce VAT from 5 per cent to 2 per cent as of now but in the future will discuss with VFJ officials so that local manufacturers may get orders. VFJ supplies vehicles to the Indian Army and purchases parts and materials under certain norms and specification laid by Central Vigilance Commission. The commission had banned post-tender negotiations except with L-1 license holders in 1998, Gupta said, adding the state government should reduce VAT and should bring it at par with central sales tax to make us competent in the market. http://www.business-standard.com/india/news/jabalpur- WABCO-TVS APPOINTS KANIAPPAN AS DIRECTOR PTI
The shareholders have also appointed Mr Kurt Lehmann and Mr Trevor Lucas as directors of the company, WABCO-TVS said in a filing to the BSE. http://www.thehindubusinessline.com/blnus/02251710.htm Agencies See this story in: The Financial Express
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| FINANCE & INSURANCE Go To Top The Hindu Business Line
Under this arrangement, Central Bank of India will provide loans for purchase of Hyundai vehicles. Car financing is an important segment of retail lending. We want to push car lending activity in a big way. Increased focus on car loans will benefit us. The delinquencies in our existing car loan scheme is very low. Our financing Hyundai vehicles will be a safe bet. The loan terms are friendly and disbursals will be fast, Mr B.N.S. Ratnakar, General Manager, Central Bank of India, said here. The memorandum of understanding between the two organisations was signed by Mr Ratnakar on behalf of Central Bank of India and Mr Arvind Saxena, Senior Vice-President, Marketing and Sales for Hyundai Motor India, here. Interest rates Under the MoU, the interest rate on loans will be BPLR-2 per cent for a repayment tenor of up to 36 months. For tenors of up to 84 months, the interest rate will be BPLR-1 per cent, Mr Ratnakar said. On the occasion, Central Bank of India also came up with a special scheme on personal loans for the employees of Hyundai Motor India. Mr Ratnakar later told Business Line that the bank was not averse to similar tie-ups with other car manufacturers. We already have a tie-up with Tata Motors. We will look at others also, he noted. http://www.thehindubusinessline.com/2009/09/26/stories/2009092651220600.htm HMIL signs MoU with Central Bank of India http://www.hindu.com/2009/09/26/stories/2009092656861500.htm HMIL and Central Bank of India sign MOU for car loans http://in.biz.yahoo.com/090925/50/bau8uj.html UNION BANK IN PACT WITH MAHINDRAS FOR VEHICLE FINANCE PTI See this story in: The Economic Times
Union Bank in pact with Mahindras for car finance http://www.thehindubusinessline.com/blnus/17251962.htm VIJAYA BANK TIES UP WITH VE COMMERCIAL The Hindu http://www.hindu.com/2009/09/26/stories/2009092656881500.htm | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top See this story in: The Indian Express Spooked by a government data showing a large build in US crude oil stockpiles earlier in the week, oil prices are on track to snap two straight weeks of gains and post a drop of nearly 8 per cent this week -- their worst weekly performance in about 2- months. US crude for November delivery was up 32 cents at $66.36 a barrel by 0350 GMT, after settling down $3.08 on Thursday. London Brent crude gained 61 cents to $65.43. Analysts said oil's gain on Friday was largely a technical rebound, with demand and supply fundamentals still weak and showing little signs of improvement. "There is a strong technical resistance at around the $65 level and prices are bouncing back now because the market still believes that prices will start rising towards the $75 level, when US crude stocks come down in the fourth quarter," said Tony Nunan, an analyst at Mitsubishi Corp in Tokyo. The Friday gains came despite a rally in the US dollar, which was supported by short-covering. The dollar index was up around 76.911 points, after rising more than 1 per cent on Thursday. Crude prices dropped 4.47 on Thursday as traders shrugged off a positive report of a fall in the number of US workers filing for jobless benefits claims, and focused instead on poor US home sales data that unexpectedly fell for the first time in four months in August, indicating a less vigorous pace of economic recovery from a deep recession. Additional pressure came from a report that said OPEC seaborne oil exports, excluding Angola and Ecuador, will rise 160,000 barrels per day in the four weeks to Oct. 10. Oil has jumped over traded in a wide band of between $65-$75 in the past month. Some analysts said prices look unlikely to trade close to, or break out of, the $75 range in the near term, amid the supply glut, with the latest increase in US crude oil supplies leaving stockpiles at around 9 per cent above its five-year average levels. "When prices went to $75 so quickly, it was clear that the market has gotten ahead of itself. We could start seeing fundamental support at around $75 only when the US crude stocks fall to around the five-year average," Nunan said. On the economic front, major world central banks announced on Thursday that they planned to scale back massive injections of US dollars into their banking systems as financial markets stabilize after a devastating crisis. Separately, President of OPEC nation Venezuela Hugo Chavez said on Thursday he expected oil prices to stabilise at a level of at least $80 a barrel by early next year. Economic data on tap for Friday includes US durable goods orders for August, Reuters and University of Michigan consumer sentiment for September and US new home sales data for August. http://www.indianexpress.com/news/oil-rebounds-above-66-per-barrel/521474/0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERNATIONAL NEWS Go To Top AP See this story in: The Times of India Shanghai: Ford plans to spend $490 million on building a third assembly plant in China, ramping up production to meet surging demand in this fast-growing market as the US automaker expands in Asia. The factory, to be built in the central Chinese city of Chongqing, will make the next generation Focus compact car, which Ford plans to sell globally. The announcement came the day after Ford unveiled a made-in-India compact car part of a plan to boost sales in Asia, a region the US automaker has hardly dented but is counting on to drive growth. Todays announcement reinforces our commitment to the further expansion of our China operations to meet the continued rise in demand from Chinese consumers for world-class Ford products and services, Ford CEO Alan Mulally said. In India, Mulally said he expects a third of global car sales to come from Asia in 20 years, a third from the Americas and a third from Europe and Russia. China is proving a lifesaver for all the big automakers, helping offset miseries elsewhere. Total sales in January-August surpassed those in US for all but two months, rising to 8.33 million units, up nearly 30% from a year earlier, according to China Association of Automobile Manufacturers. CHRYSLER BOARD TO CONSIDER PRODUCT PLAN Agencies See this story in: The Economic Times Detroit: A person briefed on the agenda says the new Chrysler Group LLC board will discuss plans for a number of new models, some based on cars sold by Italy's Fiat Group SpA. http://economictimes.indiatimes.com/news/international- | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY & FINANCE Go To Top The Hindu Business Line
In the week under consideration, the foreign currency assets fell $209 million to $264.353 billion. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies. Gold reserves remained unchanged at $9.828 billion. SDRs were down by $1 million at $5.224 billion. The reserve position in the IMF was unchanged at $1.365 billion. http://www.thehindubusinessline.com/2009/09/26/stories/2009092651290600.htm SENSEX DOWN 88 POINTS ON PROFIT TAKING PTI
The BSE-30 share benchmark Sensex fell by 162.97, or almost 1 per cent to a low of 16,618.43 in opening trade with metals, realty and IT sector stocks retreating. Later, the Sensex closed at 16,693.00, down by 88.43 points. Similarly, the Nifty index on the wide-based National Stock Exchange closed at 4,958.95, down by 27.60 points. Markets fell early on profit taking at higher levels by funds as well as retail investors amid weak global markets. Brokers said emergence of profit-booking by funds and retail investors at prevailing levels and weakening trends in global markets on fears that authorities around the world might start withdrawing some of the stimulus measures taken to revive recession- hit economies, mainly attributed to the decline in stock prices. Metal sector stocks faced selling pressure after overnight weakness in base metals at the London Metal Exchange. http://www.thehindubusinessline.com/blnus/05251901.htm Last Financial closing
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Monday, September 28, 2009
Indian Auto Industry Update September 26, 2009
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