Suzuki recalls over 10,000 Altos in Europe, India unaffected
14 May 2010;hindustantimes.com:New Delhi:Within six months of recalling one lakh units of compact car 'A-Star', Japanese carmaker Suzuki Motor Corp is recalling over 10,000 units of the automatic transmission version of its 'Alto' car in Europe. The car, which is manufactured only in India by Suzuki's subsidiary Maruti Suzuki, is sold under the brand 'Alto' in Europe, while it is sold as the 'A-Star' here. The recall, however, will not have any impact on the Indian market, as Maruti Suzuki India (MSI) does not sell the automatic transmission version here. The latest recall is to rectify a faulty stop lamp switch in over 10,000 units of the automatic transmission version of the model which were sold in Europe last year, according to reports from Europe. Earlier, in February, MSI had made public a global recall of one lakh A-Star cars to rectify faulty fuel pump gaskets, a process which started in December, 2009. Suzuki Motor Corp officials did not respond to an e-mail query. As per estimates, the automatic transmission version accounts for about 10 per cent of the total of over one lakh units of 'Alto' (A-Star) that Suzuki sold in Europe last year. The 'A-Star' is MSI's flagship export model and sales of the car in Europe started in January, 2009. 'A-Star' is currently exported to over 70 countries,including South Africa, Australia and New Zealand. Some of the other major markets are Chile, Angola, Saudi Arabia, Morocco, Algeria and the UAE, where it is sold as 'Suzuki Celerio'. Japanese car major Nissan also sells the 'A-Star' in the European market through a contract manufacturing agreement with MSI's parent, Suzuki. Nissan sells the model as 'Pixo'. Past recalls by MSI include the hatchback 'Swift' in 2005, to change bolts to reduce the front suspension noise in the 'Swift' petrol, and to set right electronic control units in the 'Swift' diesel in 2007. It had also replaced speedometers in its 'M800' car and 'Omni' van in 2008. Meanwhile, MSI's stock fell by 1.29 per cent and closed at Rs 1,257.95 on the Bombay Stock Exchange.
14 May 2010;timesofindia.indiatimes.com:NEW DELHI: India's strength in manufacturing world class compact cars and its cost-effectiveness in the production process, will help the country to be the hub of small cars for Japanese car major Nissan, feels the company's global COO Toshiyuki Shiga. Forecasting a shift in car markets from the West to BRIC countries, Shiga said that the volume growth in western and other developed markets would be slow and the incremental numbers would come from countries like India, China, Brazil and Russia. "The car market is shifting from Japan, US and Europe where growth will be difficult to come by, even though the overall market may not be down. We have to adapt to this change," Shiga told TOI in an interview. He said Nissan had already invested over Rs 2000 crore for a new car plant near Chennai and was close to launching the Micra compact, the company's first India-made car, by around July. The Micra, that would be the company's volume driver in India, would also be the car that Nissan would sell in European and other key export markets. And the company would not stop at the Micra. As it starts the production of Micra for India and overseas markets, it has also announced its intention to make an entry-level car — in the Rs 2.5 lakh price range — for which it may partner Hinduja group company Ashok Leyland. The new car, that is still a few years away, may also become part of the export kitty that the company plans from India. Just like Thailand is used as a hub for making pick-ups by companies, India offered many attractions for becoming an export hub. "There are a host of benefits that we get from India for compact cars. The investments are low here and the cost of labour and parts is cheaper than Europe. Importantly, there is a domestic market for such cars that gives us the scale to go for large numbers," he said.
14 May 2010;timesofindia.indiatimes.com:NEW DELHI: Indian oil firms, including flagship explorer ONGC and refiner-marketer IndianOil Corporation, are playing it cool over a recent US Government Accountability Office report that named them among 41 companies worldwide who may attract sanctions for investing in Iran's energy sector and seeing it as one more instance of Washington's effort to arm-twist companies away from Tehran. "The publication of the report does not mean an action by the US administration. It does not add to the provisions in the US laws that are already in place to keep companies away from Iran or Sudan. Besides, Indian firms have not crossed individual investment cap and are doing business in line with Government of India's policy," a top ONGC executive told TOI, requesting anonymity. The report earlier this week listed ONGC Videsh, the overseas investment arm of ONGC, Oil India Ltd, IOC and Petronet LNG — a privately registered firm promoted by state-run companies for importing gas in ships — among the companies that have energy ties with Iran. It also names Hinduja group but lists it as a UK firm. This is not the first time Indian oil firms are facing US pressure over their Iran investments. TOI had on December 15, 2007, first reported the prospect of some US investors pulling out in the wake of the Sudan Divestment Bill moved by the US Congress. As reported on January 6, New York-based fund house TIAA-CREF pulled out its investments in ONGC and a clutch of Chinese firms for investments in Sudan oilfields. In the latest instance, except Petronet, all the other Indian firms have made it to the list for their past deals and recent discussions for developing oil and gas fields in Iran. Petronet and Hinduja group have been named because of their recent MoU, as partners of ONGC, OIL and IndianOIl, for developing facilities for exporting gas in ships. Earlier, ONGC Videsh, IndianOil and Oil India discovered oil and gas in Farsi block and proposed investing $5.5 billion in the acreage. "These are long-term projects and none of the firms have invested more than $20 million each in a year. In all, the Indian firms together may not have invested more than $100 million over 3-4 years. "If at all, other oil company executives said, the listed firms will now be more careful to keep on the right side of the provisions of sanction laws but will not stop doing business with Iran," one IndianOil executive said.
13 May 2010;business-standard.com:Mumbai: Pune-based Bajaj Auto, the country’s second biggest two-wheeler maker, today reported a four-fold increase in net profit at Rs 528.65 crore for the fourth quarter ended March 31, over the same quarter last year. Net profit in the year-ago quarter was Rs 130.21 crore, after the company reported a slump in sales following the economic turmoil that crippled demand. Strong demand for the newly-launched cost-effective models, including the Discover DTS-Si (a 100cc bike) and the Pulsar 135, and an overall lower tax outgo, primarily from its tax-free plant in Pantnagar, Uttarakhand, allowed the company to beat analysts’ forecast. Analysts had expected Bajaj Auto to report a net profit of Rs 511 crore. Rajiv Bajaj, managing director of Bajaj Auto, said, “We have priced our newly-launched Discover and Pulsar models at a premium to the competition which has yielded the desired result. I do not see any reason why it is not possible to maintain a margin which can be above or around 20 per cent for 2010-11.” The company’s board recommended a 400 per cent dividend, or Rs 40 per share which would mean a total dividend outgo of Rs 675 crore. Bajaj Auto shares reacted positively and closed 1.02 per cent higher at Rs 2,145.70 on the Bombay Stock Exchange. Bajaj Auto sold 8,08,973 units of two- and three-wheelers during the quarter, an increase of 83.74 per cent over 4,40,269 units sold in the corresponding quarter last year. Net sales rose 73.34 per cent to Rs 3,290 crore from Rs 1,898 crore in the year-ago period. Operating margin grew 22.9 per cent from 14.2 per cent. The company predicts that the current surge in commodity prices, including that of natural rubber, essential for tyre making, will cool-down in the coming months due to softening of overall demand at the retail level. “Demand for motorcycles has already softened by 10 per cent, but we do not see further correction in this. This will put pressure on demand for products, which will in turn force raw material prices to go down on subdued demand from manufacturers,” added Bajaj. Raw material costs, as a percentage of gross sales, increased to 67.25 per cent in the reported quarter from 59.67 per cent in the first quarter of the same year. Bajaj Auto consumed raw materials worth Rs 2,337 crore. Bajaj also said that high cost of raw materials could be offset to some extent by high-margin bikes like the Pulsar range and increased overall sales. The company is targeting sales of four million units of two- and three-wheelers by the end of 2010-11. Last year, Bajaj Auto improved its market share in the motorcycle segment to 33-35 per cent from 26-27 per cent in 2008-09. It hopes that the domestic two-wheeler market would reach 10.8 million units by the end of 2010-11. The company hopes to sell 3.6 million units of motorcycles and about 4 lakh of three-wheelers in 2010-11. It launched a new 150cc Discover motorcycle on Monday, priced at Rs 46,000.
13 May 2010;business-standard.com:Port Fourchon (louisiana): Energy giant BP was preparing on Thursday to once again try and staunch the unchecked flow of oil from a ruptured well that threatens an environmental disaster in the Gulf of Mexico. BP Plc, operator of the well off Louisiana's coast, said it hoped to have a small containment dome in place by late Thursday, its latest attempt to plug the roughly 5,000 barrels (210,000 gallons/795,000 liters) a day of gushing crude. It is also fighting to salvage its soiled reputation. London-based BP, Transocean Ltd and Halliburton Co. are all in the hot seat over their responsibility in an April 20 rig explosion that killed 11 workers and triggered what could be the most devastating US oil spill ever. "If we allow that oil to come in and touch our marshlands, that'll shut us down for about five to six years," said Rodney Dufrene, 23, a new shrimp boat owner from the hamlet of Cut Off, north of Port Fourchon. Investors have knocked about $30 billion off BP's share value and the Wall Street Journal reported on Wednesday BP had decided to finish work on Deepwater Horizon despite tests suggesting combustible gas had seeped into the well. And a House of Representatives panel said it had uncovered significant problems with a safety control mechanism on BP's well that could have contributed to the accident. Representative Bart Stupak, a Democrat, said his panel's investigation showed the Deepwater Horizon rig's underwater blowout preventer leaked and was not powerful enough to cut off the oil flow before the rig blew up. Democratic Representative Henry Waxman, quoting from a BP document describing its view of events, said the well failed a pressure test in the hours before the blast. Panel investigators spoke with officials of the company that manufactured the blowout preventer and reviewed company documents, finding the device on the rig was modified, making it hard to operate after the accident. A massive operation was gearing up. Federal authorities said more than 510 vessels were responding to assist in containment and cleanup efforts in addition to dozens of aircraft and remotely operated vehicles. Fourteen staging areas have been set up and approximately 1.5 million feet (500,000 meters) of boom -- plastic barriers strung along the coast -- have been deployed to contain the spill and another 1.5 million feet remain available. Cleanup crews found oil washing ashore at Whiskey Island in Louisiana's Terrebonne Bay, west of the Mississippi Delta. Crude has also been found at the Chandeleur Islands and Port Eads in the state, as well as on Dauphin Island in Alabama. Efforts also continue to focus on cutting off the flow, which threatens wildlife and regional economic mainstays including fishing and tourism. The attempt to maneuver the "top hat" containment dome over the leak was already underway. BP engineers lowered it to the seabed and are hoping to start capturing oil by late Thursday. NO GUARANTEE OF SUCCESS BP Chief Operating Officer Doug Suttles said the company is studying whether to try just positioning the top hat over the leak or inserting a tube directly into the existing equipment. Both methods would involve siphoning the crude to a tanker. The company is not guaranteeing success, citing the difficulties of working almost a mile (1.6 km) under the ocean surface. A buildup of slushy gas hydrates stymied its first attempt at covering the rupture with a huge metal dome. BP is also drilling a relief well, which could take 80 more days. At Port Fourchon, the tip of southeastern Louisiana's La Fourche Parish and the main supply harbor for the Gulf's deepwater oil and gas industry, gooyey, rust-colored globules were found washed up on a beach around sunset on Wednesday. A sample of the blobs, recovered by a Reuters reporter, was collected by harbor police for testing to determine whether the substance came from the oil spill. Officers who took the sample refused to speculate on its origins. Crews have found oil washing ashore at Whiskey Island in Louisiana's Terrebonne Bay, west of the Mississippi Delta. Crude has also been found at the Chandeleur Islands and Port Eads in the state, as well as on Alabama's Dauphin Island. There were small protests against BP in several US cities. In Los Angeles, about 50 people protested at a busy street corner near a BP gas station. They waved signs that said "Spill Baby Spill" and "BP is not green, its deadly." In San Francisco, about 30 people marched in a circle and chanted slogans while in Chicago two dozen protesters passed out flyers at a downtown street corner near BP's Chicago offices, chanting "seize BP, make them pay". Nearly 100 lawsuits have already been filed across the Gulf region and the disaster, which lawyers see becoming one of the biggest class actions in US history, involves billions of dollars in potential liabilities. So far, 87 sea turtles, 18 birds and six dolphins have been found dead, officials said. Scientists are testing to determine if the oil spill killed them, or if they died of other causes.
12 May 2010;hindustantimes.com:London:Global oil demand growth in 2010 will be slightly slower than previously expected, the International Energy Agency (IEA) said on Wednesday, lowering its forecast, in contrast to two other key forecasters. The agency revised its global oil demand growth forecast by 50,000 barrels per day to 1.62 million bpd from its estimate last month. David Fyfe, head of the IEA's Oil Industry and Markets Division, said the downward revision was in response to new historical data and that demand from emerging markets would continue to push up the world's oil use. "The overall baseline has been revised by 0.2 million barrels per day lower but this is an accounting change," Fyfe told Reuters. "The demand growth trend is the same and all of it is coming from non-OECD countries." The IEA still expects world demand to grow to 86.4 million barrels per day (bpd) this year, up from 84.8 million bpd last year, it said in its Monthly Oil Market Report. Analysts said the agency's revision was bearish and represented the current weak demand-supply picture. This contrasts with the Organisation of Petroleum Exporting Countries (OPEC) and U.S. government unit Energy Information Administration (EIA), which both raised their estimates for world oil demand growth in 2010. In a monthly report, OPEC forecast world oil demand would rise by 950,000 barrels per day (bpd) this year, up 50,000 bpd from its previous estimate. The EIA forecast that global demand would grow by 1.57 million bpd, a 110,000 bpd increase from its month-ago estimate. "The revisions (by the IEA) fit with our view that fundamentals in the first half do not support sustained advances in crude prices to $100 for the first half, notably on better than expected non-OPEC supply performance, flat OECD oil demand growth," Harry Tchilinguirian, senior oil analyst with BNP Paribas, said.
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