India Automobile Industry Updates In this issue: Automobile Industry Updates Effect of Recession GM Files For Bankruptcy Issue No 3 Shifts reduced at Bridgestone factory. May 2009 Press Release Effects of Recession Car Exports Up 42% in May Nashik strike a setback for GM Files for Bankruptcy Mahindra's Xylo It was once an icon for industry. Monday, General Motors became the largest Nashik strike causes production losses of Rs manufacturing company in U.S. history and fourth largest company ever to file for 150 crore to Mahindra's bankruptcy protection. vendors Senior administration officials said the government will provide $30 billion in financing Tata, M&M, Maruti join hands for hybrid models to help the automaker through bankruptcy. Those same officials said the Canadian government would provide $9.5 billion. Global car cos to take Maruti's route JLR to get 'conditional' More support only: UK Govt Shifts reduced at Bridgestone factory Audi aims 55 pc growth this fiscal from India Bridgestone has cut three production shifts at its Salisbury factory as demand slumps Ashok Leyland, Nissan for its truck and trailer tyres. The company told workers this week it needed to reduce venture delayed 6 months inventory levels to match sales, which have fallen during the economic downturn. UK Govt-JLR talks back on Workers will be given other duties during the seven-week hiatus, which will cut truck track and bus tyre production by 20 hours a week. TVS can make, sell original Flame: HC More Tata Motors plans Rs 4,200 cr debenture issue: Crisil Press Release Ford to Make India Export Hub for Small Cars Car Exports Up 42% in May Exports of passenger cars from the country soared 41.64 per cent in May, mainly on Natural rubber imports might double the back of robust performance by Maruti Suzuki, although domestic sales increased by a meager 2.48 per cent. High futures leave rubber users high and dry According to the data by the Society of India Automobile Manufacturers (SIAM), Apollo Tyres Completes passenger car exports from the country stood at 29,619 units in May this year as Buy of Vredestein against 20,911 units during the corresponding month of 2008. More MRF lifts lockout; workers continue strike Nashik strike a setback for Mahindra's Xylo Silver lining for Michelin’s radial tyre project in TN Barely four months after Mahindra & Mahindra (M&M) rolled out the Xylo; a multi- 3 Ruia Group firms under seater utility vehicle that got a good market reception, the model has run into a lens in sales tax case production hurdle. The company‘s Nashik plant, where the Xylo is made, has been M&M Net jumps 89%, to paralysed for the past five working days due to an intense labour strike. invest Rs 5,000 cr in 4 yrs More GM impact minimal: Sundram Fasteners Nashik strike causes production losses of Rs 150 crore to Mahindra's vendors Tata Motors net halves to Rs 1k cr Ongoing ‗tool down‘ strike, waged by the Nashik plant workers of the automotive major Mahindra & Mahindra (M&M) for the past nine working days, have now started GM India not included in US bankruptcy filing affecting around 350 vendors of M&M across the country. The total production losses to Mahindra vendors alone are estimated at Rs. 150 crore during the last seven days. New Product Logan Edge Connect in- More roads of Bhopal Toyota group co to launch Global car cos to take Maruti's route trucks Global carmakers looking to the booming Indian car market to salvage their fortunes Skoda's Yeti gets going! are planning to imitate Maruti Suzuki‘s strategy of launching hatchback and sedan variants of the same model, as they explore ways to cut costs. Now companies like Bajaj Pulsar New Model the world‘s largest carmaker Toyota, Europe‘s largest car maker Volkswagen, Tata Motors Rolls Out Japan‘s Honda and America‘s Ford Motor plan to use the same technology to make World Truck both hatchbacks and sedans for their future launches in India. Honda launches new version of 'CBF STUNNER' More Industry Competition JLR to get 'conditional' support only: UK Govt M&M set to challenge Tata, Leyland in heavy vehicle In a signal that government support may not come easy for Tata-controlled Jaguar segment and Land Rover (JLR), the British Government said that it was ready to provide only Honda to Bring Products "conditional" help to the two brands as it had to "protect the interest of taxpayers". with India-Specific Engines The UK government's insistence on "conditions" for lending support is creating Goodyear to add 15% problems in a successful loan negotiation for JLR. It is believed to be seeking capacity "unprecedented terms" for the help, including a position on the board of the brands. Growth from only two More models is a concern: Maruti Suzuki Audi aims 55 pc growth this fiscal from India Bajaj to move Supreme Court against TVS German luxury car manufacturer Audi on Friday said it expected a 55 per cent growth Ashok Leyland stays in this fiscal from the Indian market and was targeting a sale of 1,500 cars. profit track through slew of combating measures Though luxury car sales in various countries was showing a dip following the global International Updates meltdown, the Indian market was buoyant, Audi India Managing Director Benoit Tiers Ford Truck Plant to Build told reporters here. Electric Cars More Bridgestone 1Q Group Net Loss Y34.88 Billion Vs Y22.96 Billion Profit Year Ashok Leyland, Nissan venture delayed 6 months Earlier Commercial vehicles maker Ashok Leyland Ltd said on Friday its joint venture with Michellin agrees to Japan's Nissan for light trucks has been delayed by 6 months, due to the economic settlement over tyre ads. slowdown and delay in land acquisition. Continental cuts Production from the venture is expected to start in 2011, the company said in a production at Stoecken statement while announcing its results for the fourth quarter. plant More UK Govt-JLR talks back on track The British government has said that it is in discussions with the Tata Group-owned luxury carmaker Jaguar Land Rover (JLR) on guaranteeing loans. While making it clear that the primary financial responsibility of the cash-strapped JLR rests with Tata Motors, the British government continues to hold confidential discussions with the company over both short- and long-term financing and business plans, an official at the department of business, enterprise and regulatory reform (BEER) said More TVS can make, sell original Flame: HC Clearing the decks for TVS Motor to manufacture and market its 125 CC ‗Flame‘ motorcycle, in its original form, the Madras High Court on Monday lifted an order of injunction which restrained the company from using internal combustion engine with three valves and two spark plugs. TVS now sells, Flame under a completely different technology as against the originally planned one. More Tata Motors plans Rs 4,200 Cr debenture issue: Crisil India's leading automaker Tata Motors, which needs to refinance early next month a bridge loan worth $2 billion taken for purchase of Jaguar and Land Rover, is planning to raise Rs 4,200 crore (about $884 million) worth of fresh debt. The fresh debt would be raised through sale of non-convertible debentures in four tranches, credit rating agency Crisil has said, while assigning its top-grade credit rating for the debenture programme backed with a SBI guarantee. More Ford to Make India Export Hub for Small Cars 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. More Natural rubber imports might double As the gap between domestic and overseas price tags of natural rubber (NR) isis widening on a day by day basis, a strong pressure is building for heavy import of the commodity. Currently, comparing today‘s quote of bench mark grade RSS 4, the overseas market, especially Bangkok, is cheaper by Rs 22 a kg. More High futures leave rubber users high and dry As the rubber production was hit due to unusually hot temperature, the prices seemed to be hovering at higher end leaving rubber users high and dry while rubber makers go booming on the bourses today. More Apollo Tyres Completes Buy of Vredestein Apollo Tyres Ltd. said Monday it has acquired the entire stake in Dutch tire-maker Vredestein Banden BV, giving the Indian company its first manufacturing base in Europe. "We completed the entire process on Friday night," Sunam Sarkar, Apollo's chief financial officer, told Dow Jones Newswires by phone. Mr. Sarkar declined to disclose the cost of the acquisition. More MRF lifts lockout; workers continue strike Tyre-maker MRF has lifted the 10-day lockout at its Arakkonam factory near Chennai, the company announced on Wednesday. However, representatives of the MRF United Workers‘ Union, which has been demanding management recognition, said that they would not to resume work and continue to fight for their demands. The strike at MRF‘s Puducherry unit is still on. More Silver lining for Michelin’s radial tyre project in TN The country might still feel the pangs of the economic downturn, but Tamil Nadu is on track to receive its first major investment post elections.