GM to cut 21,000 jobs and dump the Pontiac brand
General Motors will cut upto 21,000 jobs and kill the Pontiac brand by the end of 2010. This step is a part of GM's restructing plan. Fritz Henderson, GM president and CEO said, "Our responsibility is clear - to secure GM's future - and we intend to succeed.
At the same time, we also understand the impact these actions will have on our employees, dealers, unions, suppliers, shareholders, bondholders, and communities, and we will do whatever we can to mitigate the effects on the extended GM team. GM which is currently funded by the Obama government is trying to restructure itself by the 1st of June.
[Via: CW]
SKF to Invest in India
The Indian subsidiary of Swedish auto component maker SKF is planning to invest Rs. 150 crores in India. SKF is a leading technology and solutions provider of bearings, seals and related products. It will set up a new manufacturing plant in Haridwar in Uttrakhand. SKF is the largest auto component manufacturing firm in India for bearings and seals for aerospace.
The new production unit will increase the manufacturing capacity of ball bearings by at least 30 percent. It shall be company's fifth manufacturing unit in India. SKF already has nearly 120 manufacturing units across the globe. The company has taken the decision looking at the increase in demand for auto parts. It had earlier put this investment on hold for past two years due to slowing demand.
"Auto sales have revived in the January-March quarter and we expect demand to grow in the future. As the economy is expected to improve in the next few months, we will be ready with the plant early next year," said SKF India MD Rakesh Makhija.
"Hero Honda is doubling production to one million motorcycles in Haridwar so a strategic decision be close to the client. We have a five-year lock in supply agreement with Hero Honda but shall develop the 10-acre facility to supply to other auto makers," he added.
[Via: caretradeindia]
Bajaj-KTM 125cc bike to be shown at the 2010 Auto Expo
KTM, the Austrian motorcycle manufacturer in which the Pune-based Bajaj Auto upped its stake to 32% in March this year, has announced a 25% cut in production for 2009. As with most other motorcycle manufacturers, KTM is faced with declining sales and reduced profitability and hence the company is planning to scale back its production.
Compared with the 93,300 bikes it produced last year, KTM plans to only produce around 70,000 motorcycle this year. The company had recently laid off around 300 of its employees and now plans to run shorter production shifts, because of which another 700 of its employees may have to take pay cuts.
However, KTM continues to invest in R&D and, along with Bajaj Auto, is working on a 125cc street bike which it aims to unveil at the EICMA show in Italy, in November this year. This bike will also be shown at the 10th Auto Expo in Delhi in January 2010 and could go on sale in Europe and India simultaneously, during the first quarter of 2010.
KTM is also working on developing various other kind of vehicles that are aimed at sustainable mobility in the future. Among others, these vehicles include a battery-powered off-road bike and a small car, which could be similar in concept to the Tata Nano.
[Via: indiaautomotive]
Two New Models from Mahindra This Year
Mahindra and Mahindra will be launching two new models in India this year in partnership with French auto maker Renault. Both the models will roll out from the Nashik facility whilst any models from the Chennai facility have been put on indefinite hold.
"Our Nashik facility (capacity) is under-utilised. We are actively looking at introducing one or two new models from the plant in this year in order to have better utilisation of the capacity," a Renault India spokesperson told media.
The current Nashik manufacturing unit has an installed capacity of producing 50,000 units annually. The company intends to utilize the full capacity of the plant but so far the official spokesperson has not given any details about the new models.
[Via: cartradeindia]
Spy shots: 2010 Hyundai Sonata pre-production interior
Spy shots: 2010 Hyundai Sonata pre-production interior
[Via: hyundaiblog]
Hero Honda says no to joint marketing from HMSI
Hero Honda is undeniably the market leader in the 100cc space with over 50% market share in this segment. It is an equal joint venture between the Hero Group and Honda Motor Company; HMSI is a wholly owned arm of Honda and operates as a distinct entity. Speculations have been on the rise about HMSI's imminent 100cc entry creating unnecessary competition for Hero Honda.
Clearing the air about the same Mr. Pawan Munjal, managing director, Hero Honda, said "We are trying not to compete head on while designing (the new 100cc bike) but obviously we cannot avoid some cannibalization. It will happen. The two-wheeler market in India operates in a very narrow band of 100-225cc at best. So differentiation is quite difficult anyway. Even within Hero Honda, model range differentiation is very difficult".
He added that through a model committee, which comprises representatives of all Honda group companies in India, Hero Honda is trying to avoid competition (among group companies). But to a question on whether Hero Honda and HMSI would collaborate on the marketing and distribution front, Munjal replied in the negative.
"We have no plans to do any joint marketing or joint product distribution. But yes, we do discuss production capacity and supply chain synergies with HMSI." In fact, when Hero Honda was using only some of its installed capacity at the new facility in Haridwar last year, Munjal said he offered to make some of HMSI's bikes there!
And though he did not elaborate on supply chain synergies, vendors point out that Honda is already looking to source "common, standard" parts used in the Hero Honda Splendor for the new 100cc bike from HMSI. One of their key parts suppliers said "We have been told that many parts such as body and engine parts would be common for the Splendour and the new Honda 100cc.
This way, Honda wants to keep the costs down and also arrive at standardization of key parts faster. But not all HMSI suppliers supply to Hero Honda as well. So obviously the production synergies Hero Honda is talking about may be slightly difficult to achieve".
In addition to this, HMSI is aiming at an initial production volume of about 2 lakh units for the 100cc bike, which is slated for launch early next year. Its volume expectations indicate that the bike won't make an immediate dent in the 100cc universe, where Hero makes and sells many times more already.
[Via: Infibeam]
Chevrolet India protected from all bankruptcy troubles
Bankruptcy is looming large on the parent company and despite that, General Motors India is optimistic about the Indian market, driving home a message that operations in the country are shielded from all the troubles at home.
General Motors India has managed a 10% sales growth in 2008 amid a slowdown in the market. It is now eyeing a similar momentum in 2009, fuelled by the launch of two new cars and new dual-fuel variants (LPG/CNG) on existing vehicles.
General Motors India president Karl Slym told TOI that "The negative news emanating from the US does make things harder for us. But we have our own plans and are fully committed to the Indian market which is completely insulated from all troubles."
GM has been constantly working on a near independent strategy in India and has already completed investments of around $1 billion. The company says the Indian business is self-sufficient and it is making operational profits for some years now.
The company's India sales, is at 65,702 units in 2008, a growth of 9.5%. And Slym said that they were eyeing a similar growth rate this year. To get a larger foothold in the Indian market, GM India has been offering competitive prices and packages with cars, including mini car 'Spark'.
"We are confident about the quality of our cars and therefore offer free service and maintenance packages upfront. This also helps boost customer confidence in our brands," he said.
GM India is likely to introduce 'Cruze' sedan, to be positioned around the Rs 12 lakh price bracket. In addition to this, it will also roll out a new mini car, which will be positioned in the premium compact segment upwards of Rs 4 lakh. The mini car will sport both petrol and diesel engines.
[Via: infibeam]
