In an interesting development FIAT Spa purchased 35 percentage shares in troubled Chrysler.The US number three is struggling to maintain it’s existence.Now Fiat and Chrysler forming a joint venture to manufacture eco-friendly,fuel efficient cars,transmissions and engines in near future.Also this venture may offer small car as well.
Recently French government asked all automobile manufacturers to meet the committed outputs.This made all manufactures to look out for more and more effective measures to make the healthy environment. Chrysler had received a $4Million from US government,but was seeking more funds.Chrysler could get additional $3-4Million from this deal.The time making new alliances,let us wait and watch what is next.
Honda plans to bring a new super bike in India, VFR1000 by the year 2010. It has already announced to launch two new international models as CBU in 2009. According to the industry sources, Honda may introduce CBR1000 and VR800 in India soon. The company has set its eyes on the super bikes market in the country and is assessing the market potential as well. It has admitted that it also plans to bring a higher capacity VFR bike to India next year.
“When we launch bikes in India, we started with smaller engine sizes to cater to the masses. Now we are planning to launch a new bike and by the end of this year when Honda launches the new 800cc bike for the Indian market,” HMSI Sales and Marketing head N.K Rattani. The new VFR1000 will be powered by 5-cylinder unit with 3 cylinder facing the front and 2 cylinders at the rear end. The new VFR1000 will also sport Honda’s new combined ABS system making its one of the safest bikes on the road.
Volkswagen, the biggest European car manufacturer has been taken over by Porsche. The German luxury sports car manufacturer, Porsche, has purchased more than 50 percent shares of the company. According to the Company, by buying new Volkswagen shares, it will thus increase its participation to 50.76% of the group’s capital, compared with 42% before.
Therefore, according to the Swedish law, Porsche is now obliged to make an offer for outstanding shares in the heavy truck manufacturer Scania, in which Volkswagen is the primary shareholder. But the company does not have any major interest and it will offer a minimum price for the Scania shares.
In 2008, Porsche had planned to purchase more than 50 percent of Volkswagen share but because of the higher share value, the operation was delayed. Porsche, the proud manufacturer of 911 sports car and Cayenne SUV, plans to increase its stake in Volkswagen to more than 75% in 2009.
Hyundai has reinstated 100 of its trainees that were discontinued in December due to ongoing credit crisis. According to the company sources, the demand for its small cars has revived and it intends to step up its production plans.
“Our i20 model was introduced in the Indian market in December, and has seen over thrice as much demand as we expected,” said Hyundai vice president (production) Inderjith. “We have achieved our sales target for three months already.”
Hyundai had earlier cut down its production in October from three shifts to two shifts. It now intends to go back to its original production schedule to meet the rise in demand. Hyundai had also cut down its training program but now it intends to start the same again as it will need more workers in its production line.
Hyundai’s workers remain as trainees for several years until they are absorbed as permanent employees depending upon the market demand. It currently has 1700 permanent employees on its roll. However, this time it has called back 100 of its trainees that were discontinued in December but have more than two or three years of experience with the company.
The Bharat Stage IV emission norms become effective from 2010 in India. Car makers in India are getting ready to meet these norms and are making their models compliant with these norms. Bharat Stage IV norms shall meet the standards of Euro IV and the regulations for the emission levels are already same for CNG and diesel models.
“By April 2010, BS-IV norms will come into force which will bring down emission levels. We are about four to six years behind the US and European norms,” said Pawan Goenka, President, SIAM. Dilip Chenoy, SIAM Director, added that it is better to stay behind as it helps the car makers in India to learn from their experiences.
He cited the example of after treatment device which had to be fitted in the European models after the Euro-II and Euro-III norms were enforced. “European manufacturers then had to fit after-treatment devices, which adds to the cost. Indians optimised the engine without adding such devisor affecting costs. Hence, it is better we stay behind European norms,” said Mr Chenoy.
All the models slated for the launch this year and thereafter are being tested according to the global automotive emission norms. Most of the car makers are launching global models especially in the small car segment. Maruti Suzuki recently launched its latest global model, A-Star while Hyundai launched i20 in India.
Audi launched its Road Assitance Program for its customers that will be available round the clock for its customers in India. The program is named as “Audi Top Assist” which will be available to nearly 95 percent main routes in India.
“Our philosophy of Vorsprung durch Technik is not just about advanced technology, it is about the pursuit of perfection in whatever we do, which leads us to break away from the ordinary. Introduction of Audi Top Assist is a promise made to our customers insuring uninterrupted journey in an Audi. The roadside assistance program has a dedicated, in-house team of service experts who ensure that the world-class luxury and service standards that Audi customers are accustomed to will be available to them almost anywhere across India without any obstacles,” said Benoit Teirs, Managing Director, Audi India.
The program offers 24×7 assistance to Audi customers on 95 percent road coverage across India. It also offers premium taxi of cost for up to 48 hours, on site repairs, emergency delivery of fuel, usage of specially designed towing platform, and transport of car to the habitual residence or destination. The program is valid for all Audi models available in Audi Iindia’s product portfolio.
Maruti Suzuki India has announced its financial results for the period April-December 2008, during which the company registered a total income from operations (net of excise) of Rs 144,196.2 million, a growth of 7.35% over the year-ago period. Net profit after tax stood at Rs 9,755.4 million, down 31.93% over April-December 2007. Between October-December 2008, Maruti registered a total income from operations (net of excise) of Rs 46,258.1 million, a decline of of 2.81% compared to the year-ago period.
Net profit during the quarter stood at Rs 2,135.7 million, down 54.27% October-December 2007. The reduction in net profit was mainly due to lower volumes, a rise in material costs and adverse impact of currency changes in the fiscal. In addition, a higher provision for depreciation, owing to more stringent depreciation norms adopted by the company in March 2008, brought about a reduction in the net profit figure.
Maruti’s sales during the period April-December 2008, at 555,529 vehicles (including 44,870 units of exports) were down by 1.26% over the year-ago period. A growth in sales volumes during the period in A3 segment (52,700 units, up by 42.81%) and MUV segment (5,374 units, up by 92.48%) helped.
During the quarter October-December 2008, the company’s sales were 173,494 units, a drop of 14% over the year-ago period. During December 2008, the company achieved a record retail sale of over 76,700 units. This was the highest ever monthly retail sales in the company’s history.
