LGB to acquire MM Gears  
COIMBATORE: Coimbatore-based Roller chain manufacturer, LG Balakrishnan & Bros (LGB) is acquiring a local gear and gear boxes maker, MM Gears promoted by two first-generation entrepreneurs.

LGB signed an agreement with the promoters of MM Gears on Thursday, to acquire 100% shares of the firm subject to satisfactory due diligence. Started in 1995, MM Gears has an annual turnover of Rs 10 crore.

A senior official in LGB said the acquisition is in tune with its plan to enter gear and gear parts manufacturing. " We see this a good opportunity coming at the right time since MM Gears already has an established production facility as well as market for the products"he said.

LGB is now manufacturing automotive chains, sprockets, tensioners and belts including fine blanking. components machining and horse shoe.

Promoters of MM Gears, R Mylsamy and P Mohanraj told ET that they decided to sell their stake since the venture required infusion of large capex to grow the business. However, Mr Mylsamy added that he would continue to run the company as chief of operations.

The gear and gear parts is industry growing fast and foreign orders are expected to flow. This would call for pumping in Rs 10 to Rs 20 crore. As they find it hard to mobilise funds, they have decided to sell it.

LGB’s net sales stood at Rs 507.6 crore in 2008-09. It reported a net profit of Rs 39.14 crore net profit based on the profit realised from the sale of the the industrial chain division.

Source : Economic Times (7/2/2009)

India Inc on way to recovery: Economic Survey  
NEW DELHI, INDIA: Indian industry is recovering from the economic slowdown, but the sector has to maintain its cost advantage in the emerging new global industrial order, the pre-Budget Economic Survey said on Thursday.

India's industrial output grew 2.4 per cent in the year to March, compared with 8.5 percent in the previous year, hit by the global slowdown and a decline in domestic demand.

It rose an annual 1.4 per cent in April after contracting three times in four months, the survey said.

It also pointed out that 2007-08 was marked by substantial growth in the revenue of IT-ITeS industry, BPO, software and services exports and software and services employment.

However, the expected growth in 2008-09 is significantly lower when compared to 2007-08.

The economic survey said more than 6,00,000 Indians, many employed in the gems and jewellery sector, lost jobs in just four months from October 2008 owing to the global economic crisis.

About 5,00,000 people lost their jobs in the October- December 2008 period, while over 1,00,000 were shed in January this year. However, a more recent survey by the Labour Bureau for the January-March period showed improvement in the employment scenario in selected sectors, it added.

The survey put IT-BPO sector among the sectors registering increased employment along with gems and jewellery, textiles, handloom-powerloom and automobile.

It observed that India needs to use smart cards to plug leakages in subsidies, especially those aimed at feeding the poor.

The government had last week appointed Nandan Nilekani, former co-chairman of Infosys Technologies Ltd, to head the unique identification project, UID Authority of India.

To bring transparency to the disbursement of funds and prevent leakages, the government needs to have an Internet- accessible public accountability information system for each of its programs, the survey said.

"This system should be accompanied by an integrated smart card system which empowers the citizen to demand approved/budget entitlements as right," the survey said.

Another observation is that the country's tax system continues to be complex and the survey asked the Government to undertake further reforms, including implementation of a uniform tax structure

"In spite of the improvements made in the tax design and administration over the past few years, the systems at both Central and state levels still remain complex," stated the survey.

Source : www.ciol.com (7/2/2009)

International Automobile Dealers Announce Monthly Sales  
ALEXANDRIA, Va., PRNewswire/ -- The American International Automobile Dealers Association (AIADA) today released June 2009 sales figures for the international automobile industry. AIADA represents over 11,000 international franchises, which so far this year account for 54.6 percent of all vehicles sold in the United States. Overall sales, including domestics and unadjusted for business days, were down 27.7 percent compared to June 2008 and 35.1 percent year to date.

Analysts had predicted that June would be a turning point for the industry, forecasting that the seasonally adjusted annual sales rate (SAAR) would break the 10 million mark for the first time this year. Instead, the SAAR slipped from 9.9 million in May to 9.7 million. "Auto dealers had high hopes for June's sales," said AIADA President Cody Lusk. "Unfortunately, we didn't see the movement we were hoping for. Our focus is now on the second half of the year, which should be positively impacted by the recovering housing market and the incentivizing Cash for Clunkers program."

According to numbers from Autodata Corp., international brands sold 469,713 vehicles in June, down from 501,096 vehicles in May, and 644,832 in June 2008. Asian brands accounted for 45.8 percent of the market, down from 46.2 percent in June 2008, and Europeans had an 8.8 percent share, up from 8 percent. Domestic brands finished the month with 45.4 percent of the market.

June's dismal sales could be attributed to a number of factors, including an average rise in gas prices of 36 cents from May, a consumer confidence index that fell to 49.3 from 54.8 in May, and an unemployment rate of 9.5 percent, the highest since August, 1983. None the less, there are signs that support dealers' optimism. Sales in June were the second best of 2009, behind May, which some analysts see as a sign of stabilization. In addition, three brands - Rolls Royce, Subaru, and Volvo - actually surpassed their June 2008 sales by 3.6, 3.4, and 0.6 percent, respectively.

Source : sev.prnewswire.com (7/2/2009)

Toyota Recalls 2009 Lexus GX 470, 2006-'09 Toyota Sienna  
WASHINGTON — Toyota is recalling 1,281 vehicles, including the 2009 Lexus GX 470, 2006-'09 Toyota Sienna and the 2004 Toyota Land Cruiser. Mislabeling on the driver-door jamb could cause them to be overloaded, increasing the risk of a crash, according to the National Highway Traffic Safety Administration (NHTSA).

"The vehicle capacity weight on the tire and loading information label and the GVWR (gross vehicle weight rating) on the certification label is insufficient for certain vehicles," said NHTSA in its recalls summary of the problem. "Some vehicles were accessorized through vehicle processing centers and had accessories installed that caused the vehicle to exceed the GVWR value.

"Incorrect load carrying capacity modification labels could result in the vehicle being overloaded, increasing the risk of a crash."

Source : www.edmunds.com (7/2/2009)

2010 Subaru Outback Rated 24 City/29 Highway  
CHERRY HILL, New Jersey — Subarus have never been known for top EPA fuel economy ratings, but that's changing with the redesigned 2010 Subaru Outback. When equipped with the base 170-horsepower, 2.5-liter boxer four-cylinder engine and Subaru's new continuously variable transmission (CVT), the 2010 Outback wagon earns a 22 mpg city/29 mpg highway EPA rating. The 2010 Outback goes on sale at the end of August.

For comparison, a 2009 Subaru Outback with the base 2.5-liter engine and a four-speed automatic transmission was rated only 20 mpg city/26 mpg highway by the EPA. The CVT-equipped 2010 Outback 2.5i starts at $24,690, including destination.

For $1,000 less you can get into an Outback 2.5i with the company's new six-speed manual transmission. The six-speed 2010 Outback 2.5i has a 19 mpg city/27 mpg highway fuel economy rating. This is slightly lower than a manual-shift 2009 Outback 2.5i, which had a 20/27 EPA rating.

If you want a six-cylinder engine in your Outback, the 2010 Subaru Outback 3.6R is rated at 18 mpg city/25 mpg highway. Though only a modest improvement over the 2009 Outback 3.0R, rated at 17/24, it's important to note that the redesigned wagon has a larger, more powerful, 3.6-liter horizontally opposed six-cylinder engine good for 256 hp and 247 pound-feet of torque. A five-speed automatic is the only transmission choice in the 2010 Outback 3.6R, which starts at $28,690.

Source : www.edmunds.com (7/2/2009)

NASCAR's Jeremy Mayfield Cleared To Race at Daytona  
CHARLOTTE, North Carolina — Moments after resuming the case Wednesday, a judge issued a temporary injunction that lifts NASCAR Sprint Cup driver Jeremy Mayfield's drug suspension and permits him to race at Daytona this weekend.

In his ruling, U.S. District Court Judge Graham Mullen said that the "likelihood of a false positive in this case is quite substantial." This decision came after Mayfield tested positive for methamphetamines and NASCAR deemed him a danger to the sport, suspending him indefinitely on May 9.

"This is huge for us. This means more to me probably than any race I've ever won or anything. To come out here and do what we did [Wednesday]... All the attorneys worked tirelessly and endlessly," Mayfield said. "It all paid off for us."

Mayfield is still unsure if he will be able to put together the money needed to take his car to Daytona. Although the deadline to enter the race was June 23, Mayfield can join as a late entry up until when the garage opens at 8:30 a.m. Thursday. No championship points will be awarded if he makes it into the race.

NASCAR Chairman Brian France said there are no plans to file an appeal, but the option hasn't been ruled out. "We're disappointed, but we'll honor the court's wishes. That's where we stand. I'm not going to comment on what we're going to do yet on the next legal process."

Mayfield will continue to be tested on a regular basis, beginning at Daytona if he decides to race.

Source : www.edmunds.com (7/2/2009)

Automotive sector seeks new stimulus  
ISTANBUL - Turkey’s auto industry has been hit hard by the crisis, but is ’still on its feet,’ says Cengiz Kabatepe, president of the Automobile Industry Promotion Committee. He adds that a ’permanent stimulus’ is needed to achieve sustainable competitiveness.

Automotive sector seeks new stimulus Speaking about the destructive effects of the global crisis on the automobile sector, a top representative of the industry said now is the time to "heal wounds."

At a press conference in Istanbul Thursday, Cengiz Kabatepe, president of Turkey’s Automobile Industry Promotion Committee, or OETK, said the sector should be ready for "the great match to start in the aftermath of the crisis."

"We are living through a non-desirable break in the industry, but we will definitely play the second half," Kabatepe said.

Due to the global crisis, automobile exports in the first half of the year fell 48.9 percent while employment dropped 15 percent, he noted, adding that despite all odds, the sector will overcome this formidable challenge.

"The temporary private consumption tax relief from the government has stimulated the domestic market, raising morale in all sectors," he said. "But such measures have short-term and limited effects on production. For a sustainable competitiveness, permanent stimulus packages should be enacted."

Government aid that is delivered "as part of a long-term strategic plan" may turn Turkey into a production center, contributing to the country’s development, Kabatepe said. "The crisis wounded us, but we are on our feet. Now is the time to heal wounds and prepare for the big match that is to start in the aftermath of the crisis. The automobile industry, despite all its current problems, is the way out for Turkey."

A locomotive sector

"The automobile sector is the locomotive of Turkey," he added. "Factories in Turkey are the best, the most productive and the most qualified factories of global brands. It is a way to sell cars [abroad] that are produced in Turkey."

The auto sector is also a serious supplier for high-added value segments, he reminded, noting that Turkey has a very successful sub-industry.

"In commercial vehicles, Turkey has attained astounding success," he said. "If Turkey can grab the logistical opportunities that its geographical location creates, it can be extremely competitive."

Noting that Istanbul is vying to be a "global city," Kabatepe suggested that Istanbul and other Turkish cities may be "design heavens" if the necessary incentives are implemented. "Let us make Turkey a new base for global design, research and development in automotive, fashion, medicines, health equipment and electronics."

Speaking at the press conference, Ferit Sünneli, president of the Uludað Exporters Union of Vehicles and Sub-Industry, or UTAYSÝB, said exports in the sector dipped in January.

"Despite the deep crisis, automobile sector representatives raised their share of exports among the top 1,000 exporters 16.5 percent to $21.8 billion," Sünneli said.

Source : www.hurriyet.com.tr (7/2/2009)

Hurst To Build Limited-Edition Pontiac G8 H.O.  
IRVINE, California — Hurst Performance Vehicles, better known for its long involvement with Oldsmobile and such muscle cars as the Hurst/Olds 4-4-2, has turned its attention to another moribund General Motors brand. The hot-rod builder said it will market two limited-edition products, a Hurst/Pontiac G8 H.O. (high output) and a Hurst/Pontiac G6 Convertible.

Working with Hurst on the Pontiac project is Jack "Doc" Watson, the longtime Hurst executive and performance guru, known to muscle-car cognoscenti as The Shifty Doctor.

HPV said it plans to "hand-build" 52 copies of the Hurst/Pontiac G8 H.O., which will get a supercharged engine, suspension modifications, a Hurst shifter, Hurst forged alloy wheels, special interior trim and a choice of white/gold or black/gold exterior paint.

In addition, the company will build 10 Hurst/Pontiac G6 Convertibles, which it said can be used as parade and special-event cars.

GM is discontinuing the Pontiac brand as part of its broader bankruptcy filing and reorganization, and both the G6 and G8 are being taken out of production.

Source : www.edmunds.com (7/2/2009)

Auto sector registers growth despite slowdown  
NEW DELHI: Despite economic slowdown that has affected the automobile industry, production and exports of the sector went up last fiscal, said the Economic Survey 2008-09, and underlined that the industry employs over one crore people. While the overall automobile production went up by 3 per cent to reach 1.11-crore, exports increased by over 23 per cent to over 15-lakh. The domestic turnover of the sector stood at Rs. 2.19-lakh crore, while exports totalled at Rs. 31,782 crore, taking the total size of the industry to Rs. 2.50-lakh crore during 2008-09.

The survey also pointed out that although auto industry production grew at a CAGR of 11.5 per cent over the last five years, in 2007-08 it fell into the negative territory (-2.3 per cent), after witnessing a high growth rate of 13.6 per cent in 2006-07. “However, in 2008-09, the industry has witnessed a modest growth of three per cent,” it said. However, it was the utility and commercial vehicle segment that remained an area of concern with negative growth rates of (-)11.9 per cent and (-)24 per cent.The survey said the automobile sector has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy.

Source : The Hindu (Online Edition) (7/2/2009)

Auto industry logs 11.5 pc growth  
NEW DELHI: The automotive industry in India grew at a computed annual growth rate (CAGR) of 11.5 per cent over the past five years, the Economic Survey 2008-09 tabled in parliament Thursday said.

"The industry has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy," a finance ministry statement said.

The automobile industry, which was plagued by the economic downturn amidst a credit crisis, managed a growth of 0.7 per cent in 2008-09 with passenger car sales registering 1.31 per cent growth while the commercial vehicles segment slumped 21.7 per cent.

Source : Economic Times (7/2/2009)

Six lakh jobs lost in four months: Survey  
More than 6,00,000 Indians, many employed in the gems and jewellery sector, lost jobs in just four months from October 2008 as the impact of the global economic crisis hit the country's shores.

About 5,00,000 people lost their jobs in the October-December 2008 period, while over 1,00,000 were shed in January this year, the Economic Survey said.

In September, the crisis turned severe following the bankruptcy of American financial services major Lehman Brothers. Since then, millions of jobs have been shed worldwide, as companies resorted to massive layoffs as part of their cost cutting measures.

Attributing to a survey conducted by the Ministry of Labour and Employment, the report said that during the three months from October to December 2008, there was a decline in employment of about half a million workers.

Among the sectors, the most hit by the financial turmoil are gems and jewellery, transport and automobiles.

"The most affected sectors were gems and jewellery, transport and automobiles where employment has declined by 8.58 per cent, 4.03 per cent and 2.42 per cent, respectively during the period (October to December 2008)," it said.

Another "thin sample survey" by the Ministry of Labour and Employment indicated that in January about 1,00,000 jobs were lost.

Another sample survey carried out by the Department of Commerce for 402 exporting units showed that 1,09,000 jobs were shed during August 2008 to mid-January 2009 period.

"Two other surveys (by Department of Commerce) for the period August 2008 to February 9, 2009 and August 2008 to February 28, 2009 revealed job losses (direct and indirect) of 1,17,602 and 1,19,159 persons, respectively," the Economic Survey said.

However, there is a reason to be optimistic since yet another survey conducted by the Labour Bureau for the January-March period showed improvement in the employment scenario in selected sectors.

The Labour Bureau survey, which covered 3,192 units, indicated improvement in the selected sectors with employment rising by a "quarter million".

"Sectors registering increased employment were gems and jewellery (3.08 per cent), textiles (0.96 per cent), IT-BPO (0.82 per cent), handloom-powerloom (0.56 per cent) and automobile (0.10 per cent)," the Survey said quoting the Labour Bureau.

In the Eleventh Five Year Plan (2007-12), about 58 million employment opportunities are projected to be created and the unemployment rate is anticipated to fall below five per cent.

Source : Business Standard (Online Edition) (7/2/2009)

RNCOS Releases a New Report - Indian Automobile Sector Analysis  
PRLog (Press Release) –– RNCOS has recently added a new Market Research Report titled, “Indian Automobile Sector Analysis” to its report gallery. De-licensing in 1991 put the Indian automobile industry on a new growth trajectory, which attracted foreign auto giants to set up their production facilities in the country to take advantage of various benefits it offers. Large middle class population, growing earning power and strong technological capability have been boosting automobile demand for past few years. Despite economic slowdown, the Indian automobile sector is expected to see high growth in coming years, especially in passenger cars segment, said our new research report, "Indian Automobile Sector Analysis”.

The passenger vehicle market, which constitutes around 80% of automobile sales, has immense growth potential as passenger car stock stood at around 11 per 1,000 people in 2008. Anticipating the future market potential, the production of passenger vehicle is forecasted to grow at a CAGR of around 10% from 2009-10 to 2012-13.

The recent launch of Tata Nano has brought about a new revolution in the country’s small car segment. Seeing the good initial response from consumers, many other players in the industry are chalking out their plans to launch cars in this segment in the next few years. Our research foresees a CAGR growth of around 14.5% in domestic volume sales of passenger vehicles during the forecast period. Other segments, such as two-wheelers, multi-purpose vehicle and light commercial vehicle, are also expected to witness fast growth in coming years.

The report covers various aspects of the Indian automobile market and gives detailed analysis of its various segments such as passenger vehicle, commercial vehicle, utility vehicles, multi-purpose, two wheelers and three wheelers. Each section succinctly explains the current and future market trends, and developments in the Indian automobile market. There are immense opportunities for various industry players including automobile manufacturers and players of automobile components.

Besides, we have also comprehensively analyzed the auto component industry and its future outlook. The study has evaluated growth avenues available for the automobile market, which include automotive design market, non-conventional vehicle market, domestic tyre industry, India as global manufacturing hub, green car market etc.

Source : www.prlog.org (7/2/2009)

2009 Frankfurt Auto Show Preview: 2011 BMW X1  
MUNICH, Germany — BMW has finally ended its striptease for the X1, releasing official images and details of the new compact crossover ahead of its formal launch in September at the 2009 Frankfurt Auto Show. The BMW X1, however, won't make the Atlantic crossing until calendar year 2011.

Joining a rapidly expanding lineup of CUVs that includes the X3, X5 and X6, the new X1 goes on sale this fall in Europe. It will compete with such entries as the Volkswagen Tiguan and the upcoming Audi Q3. Another potential competitor is the upcoming 2011 BMW 335i GT hatchback.

The X1 will be offered in Europe in both rear-wheel-drive (sDrive) and all-wheel-drive (xDrive) configurations, with a choice of one gasoline and three diesel engines, as well as six-speed manual and automatic gearboxes. The most frugal diesel variant, fitted with auto stop-start, will deliver up to 45 mpg on the European test cycle, BMW says.

U.K. pricing already has been released, and British buyers can expect a range from $37,000-$40,750.

Source : www.edmunds.com (7/2/2009)