Renault Nissan alliance to step up synergies
Ten years into their alliance, Renault and Nissan are taking cooperation to a higher level. In 2009, synergies identified are expected to contribute as much as 1.5 billion euros in cash flow to the alliance partners, while a small, dedicated team has been set up to foster deeper, broader cooperation between the two companies and to maximise the contribution of synergies to the performance of both partners
'Over the last decade, we used the alliance to develop win-win synergies between Renault and Nissan, and that approach worked well when both were profitable and growing,' says Carlos Ghosn, Chairman and CEO of the Renault-Nissan Alliance. 'Today, we have to move faster. Seeking synergies is no longer optional, but mandatory. We have assigned a group of experts to focus on building greater synergies to get us through the crisis and position us competitively for the future.'
Since 1999, Renault and Nissan have developed an alliance that has created significant value for the two companies. These include shared platforms and powertrains, cooperation on advanced technologies, standardisation of manufacturing methods, the expansion of the product line-ups and the extension of the global footprint of each partner. Combined vehicle sales have increased from 4.9 million units in 1999 to 6.9 million in 2008 (including Avtovaz), making Renault-Nissan the world's third-largest automotive group.
The Renault-Nissan alliance provides a unique competitive advantage to the two companies in a sector that's badly hit by the global economic crisis. To maximise utilisation of the knowledge gained from 10 years of cross-cultural management and shared experience, the alliance has set up a small dedicated team of six people from Nissan and five from Renault.
Starting 1st June, they will apply their in-depth understanding of both companies to foster synergies at all levels and push for greater common activity and standardisation, not just in 2009 but well into the future.
This dedicated team will focus on the following areas identified as priorities: purchasing, global sourcing, common platforms and parts, powertrains, support functions, global logistics, information systems, research and advanced technologies, and zero emission business.
Both Nissan and Renault are also expected to increase their presence in India over the next 2-5 years, in a very big way. While the Mahindra Renault Logan has not met with much success in the country, Renault is likely to enhance its product portfolio and bring in other vehicles from its international line-up. These may include the Sandero hatchback as well as a crossover based on the same.
Nissan, in the meanwhile, already has a headstart with setting up its manufacturing operations in India, near Chennai, and will start making a wide range of its cars in India, starting with the all-new Micra, which is expected to be launched in 2010. Both Renault and Nissan expect India to be a high-growth market over the next 10 years.
[Via: indiaautomotive]
MAN Force launches new range of trucks and tippers
MAN Force Trucks has launched a new range of heavy trucks and tippers used for mining and construction. The company's new range is supposedly more fuel efficient and has a higher degree of localisation, which means the vehicle are more competitively priced than before.
MAN Force's new long haul cargo trucks are in the 25 tonne and 40 tonne tractor trailer categories. 'We have gained valuable experience in the last 18 months, of manufacturing, selling and supporting over 1,000 units of the hi-tech MAN CLA range of vehicles in the Indian market. We are now poised to enter the next phase of mass marketing. Our aim is to gain significant market share in the haulage trucks segment. Our plans and actions are calibrated to gain dominance in select segments, and to achieve large volumes in the market, over the next five years,' said Sudhir Mehta, Managing Director, MAN Force.
'The company has established a strong country-wide dealer network, with excellent stocks of spare parts throughout the country at fifty locations, in all relevant areas. Also, fifty mobile service vans have been commissioned, to provide day and night service throughout the country. The pricing policy of the company for trucks, tippers and spare parts is market-friendly. Due to the high level of local content and high degree of in-plant manufacturing, the company is able to offer leading edge technology products at competitive Indian prices,' added Mehta.
[Via: indiaautomotive]
Toyota to launch Landcruiser Diesel on 9th June
Toyota will officially launch its cult SUV LandCruiser Diesel in India on June 09th. Built on ladder frame, this hardcore SUV is powered by a 4.5-litre V8 diesel oozing out 282bhp of peak power and an incredible 662Nm of torque.
Running on 285/60-R18 tyres this monster SUV could give a new face to premium SUV segment available in India. A six-speed automatic transmission, four-wheel drive and torque differential makes this SUV a king on off-road.
Mahindra’s Q4 net rises 89% to Rs 418 cr
The Board of Directors of Mahindra and Mahindra Limited today announced the financial results for the quarter ended 31st March 2009 of the company and the audited results for the year ended 31st March 2009 for the company and the consolidated Mahindra Group.
The Gross Revenues and Other Income of Mahindra & Mahindra Ltd. for the quarter ended 31st March 2009 is Rs.4171.6 crores as against Rs.3666.3 crores during the corresponding period last year - a growth of 13.8%.
The Net Profit before tax from ordinary activities for the quarter is Rs. 508.6 crores as against Rs.304.8 crores in Q4 last year - a growth of 66.9%. After providing for tax, the same is Rs. 418.1 crores for the current Q4 as against Rs. 221.1 crores in the same period last year - a growth of 89.1%.
The Scheme of Arrangement for the merger of Punjab Tractors Ltd. (PTL) with the company was approved by the Punjab & Haryana High Court during the current quarter and the company has given effect to the same w.e.f. 1st August 2008 as per the order.
During the quarter the Ministry of Corporate Affairs issued a notification providing companies with an option, with retrospective effect from 1st April 2007, to capitalize exchange differences arising on foreign currency loans to the extent they were used to finance fixed assets and amortize the balance equally over the period up to 31st March 2011 or the date of maturity of loan whichever is earlier.
The company has chosen to adopt the above option. Excluding the impact of exchange difference and other special/exceptional items (see annexure) the PAT for the current Quarter was Rs.279.5 crores as against Rs.208.9 crores in Q4 last year - a growth of 33.8%.
The current quarter continued to be an extremely challenging one for both auto and tractor businesses. Though there was a some improvement in the consumer sentiment and credit availability, the after effects of the global financial meltdown continued to be felt during the quarter.
The company's sales of UVs, as compared to an industry decline of 11%, grew by 12% to 48088 nos. against 42999 nos. sold in Q4 last year. The company achieved a dominating market share of 63% in the UV market during the quarter. This strong performance was mainly due to the excellent sales of Bolero and Xylo.
The response to the launch of Xylo was especially heart-warming with bookings crossing the 15000 mark in the first three months of the launch. The domestic tractor demand witnessed a decline of 2.3% during the quarter.
The company's domestic tractor sales excluding the Swaraj tractors were 19426 nos. during the quarter against 20360 nos. sold in Q4 last year. The sale of Swaraj tractors during the quarter was 9253 nos. as against 7895 nos. sold in Q4 last year- a growth of 17.2%.
Including Swaraj Tractors, the Company's sales during the current quarter grew by 1.5% to 28679 nos. as compared to 28255 nos. in Q4 last year and its market share was 38.9%.
[Via: infibeam]
GM’s troubles in Europe continue
Besieged from all sides, G.M. has failed to achieve a breakthrough in talks regarding its European unit, too. German and American negotiators held a marathon five hour meeting which included video conferencing, but were still unable to come to a conclusion on a bridge loan which G.M. needs for its European operations.
The Germans are understandably hesitant because they don't want to put up money when they are not sure that G.M.'s European assets will be protected from its bankruptcy proceedings in the U.S. "We don't have the assurances we need to approve a bridge loan," said Karl-Theodor zu Guttenberg, the German economy minister. They are also put off by the fact that G.M. has asked for $418 million more than the agreed upon €1.5 billion from Berlin.
There are two companies in the reckoning for Opel - Fiat, the Italian auto maker and Magna, a Canadian giant. Both have submitted proposals whereby G.M. would at least retail a minority stake in Opel. Magna says it has the cash to provide the funding that G.M. needs, but wants some guarantee from the German government in case the deal falls through.
Germany is extremely interested in the deal as they can get more leverage by helping out G.M. plus keeping German jobs, while reducing its lending exposure. There is history between the two - G.M. acquired Opel in 1929 and survived all the historic upheavals since then.
Both Fiat and Magna are seriously in the fray. Magna has joined with Russia Sberbank and seem to be favored by the German government. At the same time Sergio Marchionne of Fiat met German government leaders in a bid to sell Fiat's plan which would result in six million vehicles being made in a year.
[Via: globalmotors]