Russia: Top Europe's Auto Market by 2014

Russia intends to become the largest car market in Europe in 2014 with increased sales of economic recovery, Trade and Industry Minister Viktor Khristenko said on Wednesday.

"In mid 2013 the market will return to pre-crisis volumes, and in 2014 will be the number one market in Europe, with more than 3 million vehicles sold," Khristenko told lawmakers that the government here in the question session and answers.

He added that the ministry expects vehicle production to reach 1.3 million units in 2010, with sales expected to top 1.7 million vehicles.

Two years ago, analysts predicted that Russia will be in Europe, "the biggest car market by 2010. This was before the global financial crisis has squeezed demand, removing two years'rapid growth.

Russian lawmakers on Wednesday raised its planned spending on roads and road construction projects in 26 percent more in an effort to improve the acquisition of machinery.

New vehicles and light commercial vehicles sales grew by 55 per cent to 185,953 units in September compared with the previous year, according to the Association of European Business. Sales of new passenger cars and light commercial vehicles in Russia in January-September rose 18 percent to 1.32 million units compared to the same period in 2009.

The number of foreign automakers, including Nissan and Chevrolet has plans for further improvements in their opportunities to increase production in Russia. Chevrolet is planning to launch a total of 37,000 cars this year compared with 23,000 vehicles a year earlier.

AEB Automobile Manufacturers Committee forecast last month that a total of 1.8 million cars will be sold in Russia this year.

"It is clear that the Russian automotive market has rebounded in 2010 with our latest forecasts, suggesting an increase of almost 20 percent,"David Thomas, president of the AEB Automobile Manufacturers Committee, said.

"Despite falling almost 50 percent from 2008-2009, in 2009, the market for 1.5 million cars and light commercial vehicles is still a very important market ".

More News:

• Sunset for Maruti 800 in 13 cities from Thursday
• Tata Nano on Flames
• Smooth going for Hero Honda Motors
• India to be Small Car hub for Ford
• 2009 Model BMW 740il Sedan
• Toyota Kirloskar launches SUV Fortuner in India
• Maruti Getting its first Hires from Detroit
• Fiat's third coming

Hybrid cars for Commonwealth Games

Maruti Suzuki on Tuesday handed over first lot of hybrid cars - 2 Maruti Suzuki SX4 Hybrid and 1 'Eeco Charge' -  for use during the Commonwealth Games, while another lot of eco-friendly cars will be handed over to the Delhi Government soon. 

Maruti Suzuki has made ready a lot of 14 future technology vehicles for use at the Commonwealth Games. These include 10 Maruti Suzuki SX4 Hybrid Cars and 4 Maruti Suzuki ‘Eeco Charge’ vehicles.

“I am happy that engineers at Maruti Suzuki have developed these future technology vehicles. This project has helped our engineers to increase their knowledge and enhance their research and design capability. We are grateful to the government for their leadership to promote green technology in automobiles. We are happy to be associated with the Commonwealth Games national initiative, through these vehicles,” said Maruti Suzuki India Limited Managing Director and CEO Shinzo Nakanishi. 

The demonstration of the fleet of SX4 Hybrids and ‘Eeco Charge’ vehicles at the Commonwealth Games is in line with the ambitious the National Hybrid Propulsion Programme (NHPP) and High Energy Density Battery Development Programme. The development of hybrid and electric vehicles is one of the exciting initiatives undertaken by Maruti Suzuki to enhance its R&D capabilities and gear itself for greener technologies, he said.

The hybrid system used in the SX4 features an electric motor and twin clutch arrangement with advance Lithium-ion battery technology. This concept combines a 1.2 litre K-series petrol engine and a 50 kW electric motor along with 5-speed automated manual transmission. 

The SX4 hybrid offers 25 per cent more fuel efficiency compared to conventional gasoline vehicle. Similarly, ‘Eeco Charge’ is a zero-emission, pure electric vehicle. It is powered by a 50kW motor and a 24kWh Lithium-ion battery. On full charge it promises a driving range of around 100 km and attains top speed of 100 km per hour. 

Source: Thehindu.com

Tips to Improve Car’s Fuel Efficiency

It’s really exasperating to see fuel prices skyrocketing, right? We can only feel helpless in the face of recurring and economy-driven price fluctuations. Seeking measures to improve fuel economy is the only way to combat rising fuel prices. Do not disregard these simple guidelines; each little step can really start adding up to significant savings to your budget.

Check Tyre Pressure

Keeping the tyres well inflated is one of the simplest things you can do to help improve your car’s fuel efficiency. You can improve the mileage by about 3.3 percent if you keep your tyres inflated properly, according to the DOE.

Lighten Your Load

Empty out your boot of unnecessary items. For every extra 45 kg you carry, your fuel efficiency can drop by 1-2% in a typical vehicle.

S-L-O-W D-O-W-N

The faster you drive, the more fuel you use. Driving within the speed limit recommended by the manufacturer helps save fuel. Driving just 5mph over the speed limit can affect fuel economy by up to 23%. Likewise, quick acceleration consumes too much fuel; accelerate slowly and gradually.

Do Fuel Quality/Types/Additives Help Mileage?

Petrol pump attendants often try to convince you to go for ‘Speed petrol’ or ‘X-tra Mile diesel’. But this need not necessarily help improve your vehicle’s fuel efficiency. Always use the grade recommended for the vehicle by the manufacturer. Higher octane fuel may not only be a waste of money but may harm the vehicle, as well. However sticking to one brand of fuel is always good for the engine. Know more about Octane Ratings

Tune Your Engine

A well-tuned engine can improve fuel economy by up to 4%. So change your oil and follow your car manufacturer’s recommendation on servicing.

Clean the Air Filters Regularly

Air filters keep impurities from damaging your engine. Replacing a clogged air filter can improve fuel economy by as much as 10%.

Keep the Windows Closed

Driving with your windows open considerably reduces mileage, far more than keeping the AC on while driving along highways. So preferably keep the windows closed and the AC on if you want to keep cool. Of course the air-conditioning decreases fuel efficiency considerably, so use it judiciously. Windows down or A/C on — which is more fuel-efficient?

Clean Spark Plugs

Ensure your spark plugs are in good condition. Renew the plugs and wires at intervals specified by the manufacturer. This will keep all cylinders firing properly resulting in higher efficiency.

Don’t Be a Clutch-Driver

Never keep your foot on the clutch while driving. When you do this, pressure is being placed on your clutch, and it not only reduces mileage, but also wears out the clutch plate, replacing which is not cheap.

Keep the Car in Showroom Condition

It’s always prudent to keep the car in the showroom condition. Remember that any modification to the car, such as broad tyres, diffusers etc., will adversely affect the mileage.

Sources: yfittopostblog.com                   Also know about Electric Car

Maruti Suzuki launches 5 CNG Models

Maruti Suzuki on Friday unveiled its flagship CNG engine technology — ‘intelligent-Gas Port Injection' or i-GPI — on five popular models. The models include SX4, Eeco, WagonR, Estilo and Alto and will be available in the entire National Capital Region, including Delhi, Mumbai and Gujarat.

While sedan SX4 Vxi is priced at Rs. 7.47 lakh, WagonR Lxi comes with a price tag of Rs. 4.11 lakh. Prices of other models are: Estilo Lxi Rs. 4.05 lakh, Eeco 5-seater AC Rs. 3.64 lakh and Alto Lxi Rs. 3.23 lakh.

“With this initiative, the CNG footprint of the company spreads across entry-level cars, compact cars, sedans and MPV segments. We are confident that customers would value our i-GPI technology that is safe, reliable, clean and environment-friendly. Adapting the CNG technology in our vehicles is another step to keep low cost of ownership for our customers,” said Maruti Suzuki India Chairman R. C. Bhargava.

According to Shinzo Nakanishi, Managing Director & CEO, Maruti Suzuki India, “This is the first instance when a car manufacturer has developed and launched factory-fitted technologically superior CNG engines in India. CNG is environment-friendly and also reduce country's dependence on imported fuels. The company's big ticket entry into the CNG fuel segment augurs well for the environment.” The i-GPI bi-fuel technology engine offers an intelligent ride as it ensures more power vis-à-vis retro-fitted CNG vehicles and offers a peppier ride experience on a par with that of a petrol-fuelled engine, while achieving high fuel efficiency at the same time. The factory fitted CNG vehicles score high on safety and reliability vis-à-vis the aftermarket retro-fitted options, he said.

Mr. Nakanishi further said that as the CNG technology was factory-fitted, customers would enjoy the full warranty benefits, including extended warranty. To top it all, the CNG vehicles from Maruti Suzuki would enjoy the nationwide back up of over 2,700 Maruti service stations, he added.

Source: Thehindu.com

BMW 5 Series Trying To Top The Indian Luxury Car

Beemer is back with a bang with the new, smartened up BMW 5 series sedan. Now, BMW has more strength to beat its arch rival Mercedes Benz in the sales chart. BMW has already pushed Benz aside and became the No.1 luxury car brand upto March 2010. But during the last quarter, due to the stoppage in production of BMW 5 series, Benz was selling more cars. But now, BMW hopes that it will regain the top spot with the 5 series.

According to Juergen Eder, MD of Prodcutions, BMW, informed that the company is confident that the new BMW 5 series produced in Chennai will increase our momentum in the Indian luxury car segment. BMW 5 series is priced in the range of Rs 38.9 lakh and Rs 58 lakh (ex-showroom).It is the most sought out luxury sedan, accounting for more than 50% of the total BMW sales and the German car maker has sold 3,700 units of this particular model since 2007.

The battle between the trio, Benz-BMW-Audi is heating up as all the three car makers are having loads of surprises with new car launches as well as strengthening their distribution through new showrooms. For instance, Benz launched 15 products in just 6 months of 2010 in India. The latest surprise is SLS AMG, which will cost Rs. 2 crore!

Audi, on the other hand, is ready to launch its new products, so as to widen its portfolio. It is already assembling its few car models in India and is further finding possibilities to assemble A8, Q3 and Q7 at its Aurangabad plant. Audi is also targeting to sell 6000 cars by 2015 and is eager to grab the "No.1 luxury car maker" in India.

Source: living.oneindia.in

Electric Car Fever is Rising Again

Nissan's electric-powered Leaf, scheduled to be in showrooms in December, has attracted 16,000 advance orders.

Battery-powered-sports-car maker Tesla Motors Inc. just launched one of the hottest initial public offerings in years. Nissan Motor Co.'s electric Leaf is generating buzz ahead of its scheduled December debut and has 16,000 advance orders. President Barack Obama plans to visit an electric car battery factory in Michigan Thursday to promote the government's $2.4 billion program of grants to subsidize development of electric-vehicle technology.

And of course, the catastrophic Gulf oil spill is reviving anxiety over the national addiction to oil.

So, it's all systems go for a future in which most of our driving doesn't depend on fossil fuels, right?

To appreciate the obstacles standing in the way of the electric-car dream, you don't need to talk to electric-vehicle skeptics or hybrid haters. Instead, you can listen to the people who believe in electric vehicles, and are investing in those beliefs.

Proponents of the technology will tell you that anyone buying an electric vehicle will want to know at least two things: How far can I drive before I have to recharge? And, where can I go to recharge when I am on the road, far from home? Companies acknowledge that clear answers to those questions aren't yet available—and may not be until a good while after the coming flock of electric cars has hit showrooms.

Tesla Motors outlines as part of its public-offering documents a lengthy recitation of risks to its business. It's sobering reading for electric-vehicle enthusiasts. One of the concerns Tesla raises is that the Environmental Protection Agency is looking at new ways to measure how far electric cars can go before they need to be recharged. The aim is to make the advertised range figures better reflect how people drive their cars in the real world. Some of the new test methods the EPA is considering could require electric-vehicle companies to reduce the advertised range of their vehicles by as much as 30%.

The EPA won't comment on its rule-making. Tesla currently tells people who buy its $101,500 Roadsters that they can expect to drive as many as 245 miles between charges, a figure company officials say is based on existing EPA tests. Tesla has sold about 1,000 Roadsters since 2008.

Nissan has told prospective buyers of the Leaf that they can expect to drive up to 100 miles on a charge. "Up to" is a critical qualifier in the electric-vehicle business, given how cold temperatures, speed, the power drain from air conditioners and other factors can cut into battery life.

More at: online.wsj.com

New Era Of Affordable Mercedes

We’ve all oohed and aahed over the iconic three-pointed star. But how many of us have been lucky enough to get behind the wheel of one? Guys, and gals of course, your dream to own a Merc could soon materialise, thanks to a completely new, front-wheel-drive architecture or MFA (Mercedes Front wheel Architecture).

The move to MFA will radically cut production costs and enable the company to bring vehicles that are cheaper than the A-class models. Dr Bharat Balasubramanian, VP, Group & Advanced Engineering, Daimler AG, confirmed that the “MFA will usher in a new era of affordable Mercs.” He also confirmed that models spun of the MFA platform “would be more suitable for India”.

According to Autocar, from now on, all small Mercs will be based on the flexible MFA platform that can support a wide range of wheelbases and configurations. The MFA has also been designed to support a fuel-cell power train and clearly green technology can easily be incorporated. The MFA will spawn a wide range of models. The next-gen A and B-class, expected in 2010/11, will use the MFA and be made in Hungary. Other body styles on the MFA include a coupé, cabrio, MPV and a small SUV.

So people, let’s all have our fingers crossed for a feature-filled, yet affordable Merc. However, the question is, will Mercedes-Benz which is synonymous with luxury ruin its brand identity with the move to launch cheaper cars.

Source: in.yfittopostblog.com

Leaf-like Car that Absorbs CO2 and Spews Oxygen

Taking cue from the plants' ability to photosynthesise, Chinese automaker Shanghai Automotive Industry Corporation has developed a new concept car that could take in carbon dioxide and produce oxygen.

SAIC, which has a partnership wtih General Motors in China, showed designs for the photosynthesizing YeZ Concept Car recently at Expo 2010 in Shanghai.

YeZ (pronounced "yea-zi") is Mandarin Chinese for "leaf," and it is the apt title for the open buggy-like vehicle, which has a roof shaped like a leaf only, reports Discovery News.

The technical details haven't been articulated, but according to a report in Xinhua, YeZ designer Ma Zhengkun has said that the roof "absorbs solar energy and transforms it into electricity while spinning rotors on the four wheels generate power from the wind."

According to CNET Asia blogger Juniper Foo, the two-seater car would have a "metal-organic framework," which would work to absorb CO2 and water, turning them into electricity that would get stored in a lithium-ion battery.

Source: news.yahoo.com

* Auto companies may plan expansion in Uttarakhand

Dehra Dun, May 6 (PTI) Auto companies in the state are likely to go on an expansion drive buoyed by better-than anticipated sales over the past few quarters.

Tata Motors, Hero Honda and Bajaj Auto, which have set up their manufacturing units here, are in talks with the state government in this regard, industry sources said.

The government, on its part, is collecting information on free land that could be given to companies that want to expand.

"We have got information that most of the auto companies are expanding their units in the state," said Chief Minister Ramesh Pokhriyal Nishank, who is keen to develop the state into a hub for automobiles manufacturing.

Several large companies, including Tatas, Hero Honda and Ashok Leyland, have set up units in the Uttaranchal state drawn by its investor-friendly investment policy that offered excise exemptions.

Source: PTInews.com

Bajaj car to be world's cheapest

Bajaj's ultra-low cost car being manufactured jointly with Renault and Nissan promises to give hot chase to the Tata Nano. On Monday, Rajiv Bajaj (BAJAJAUTO.NS : 2101.05 0), MD, Bajaj Auto confirmed the $2,500 (Rs 1.1 lakh) price tag for the car, announced first by Renault chairman & CEO Carlos Ghosn at the company's shareholders' meet late last week. The Renault announcement comes a few days after it pulled out of its loss-making Logan venture with Mahindra & Mahindra.

The Bajaj car will be cheaper than the Nano, which comes at Rs 1.23 lakh-1.72 lakh (ex-showroom Delhi ). After the launch of Tata Nano, the race for the No.2 position in the ultra-low cost car segment is under way in India , which as emerged as the Mecca of this segment. However, other automakers' plans to enter this segment are still on the drawing board.

At Renault meeting, Ghosn said: "In India , Renault and Nissan are developing an ultra-low-cost vehicle with the Bajaj group, benefiting from its expertise in light vehicles and knowledge of the Indian market." He reiterated the affordability of the vehicle for the Indian market by citing the targeted low price tag.

"We are combining our strengths with Nissan, notably in India , Russia , Brazil and Mexico ," Ghosn said. "The alliance product strategy has been finalised in India and Russia , and Renault and Nissan will pool their production capacities and platforms there to fully deliver on these developments," he added.

The car was initially scheduled to hit the market this year, but has been postponed to 2012. Bajaj Auto displayed the prototype of the small car at the 2008 Auto Expo. However, the three partners were stuck at various levels of branding and engineering the car till last year. According to industry observers, the project also got delayed as partners were stuck on pricing issues as well. While Renault wanted a low-cost car, Bajaj was keen on a car that would sport high mileage and low maintenance.

It was during his India visit that Ghosn finally announced the finalisation of the project. "As per the agreement, the design, engineering, sourcing and manufacturing will be handled by Bajaj Auto, while marketing and selling will be (done) by Renault-Nissan Alliance," he said. But he had declined to comment on the pricing of the car.

Officials from the alliance have said the car will be smaller than Maruti Suzuki's Alto, which is the biggest selling model in India .

In March, Collin Dodge, executive vice-president, Nissan Motor had said: "It is over two years that Bajaj is trying to produce the car. The physics of it is very difficult. We have not yet found a solution as there are a lot of engineering solutions required." Nissan is also in talks with Hinduja group company Ashok Leyland (ASHOKLEY.NS : 62.45 +1.5) to develop a small car for the global market that could be priced around $4,500-5,000.

"We have a formal agreement with Ashok Leyland for making light commercial vehicles in India . In addition, we also use Ashok Leyland's engineering services for various purposes. At the moment, we are talking to them and many other partners in China , Indonesia for a price centric vehicle," Nissan Motor Co executive vice-president Collin Dodge had said at the Geneva Motor Show in March.

Source: in.biz.yahoo.com

2010 New Wagon R Car: Features, Colours, Cost

The 2010 Wagon R, titled ‘The Blue Eyed Boy’, is the 4th generation of the model in the country.

Wagon R 2010 Special Features:

The new Wagon R has an overall length of 3,595 mm with a wheelbase of 2,400 mm and Wider and taller at 1,495 mm and 1,700 mm, which has made it marginally heavier than the outgoing model.

Engine : ultra successful 998 cc 3 – cylinder K-series engine
Mileage : 18.9 kmpl.

New 2010 Wagon R Car Colors

* Metallic Breeze Blue
* Glistening Grey
* Silky Silver
* Fire Brick Red
* Breeze Blue
* Baker’s Chocolate
* Midnight Black
* Superior White

New 2010 Wagon R Variants Cost or Price:

* Maruti 2010 Wagon R Lx – Rs 3.28 lakh
* Maruti 2010 Wagon R Lxi – Rs 3.57 lakh
* Maruti 2010 Wagon R VXi – Rs 3.81 lakh
* Maruti 2010 Wagon R VXi with ABS – Rs 4.12 lakh

New 2010 Wagon R Accessories List

* GPS
* Navigation system
* Parking sensors
* Bluetooth Device
* Body Styling Kit
* Rear Spoiler

SKF to expand Capacity in India

7 April 2010 - Swedish industrial company SKF AB said today it will open two new manufacturing plants in India this week due to growing demand.

Following the move, the company will have a total five plants in India.

Today, SKF is inaugurating a facility in Haridwar, in the northern Indian state of Uttarakhand. The plant, which will have some 200 employees, will mainly serve the two wheeler manufacturers in Uttarakhand. The investment amounts to some SEK250m.

The second plant, located in Ahmedabad, in the western state of Gujarat, will open tomorrow. The facility will manufacture medium-size to large bearings for the railways, wind and heavy industries and will employ some 300 people when full capacity is reached. SKF has invested some SEK450m in the plant.

At the end of 2009, the Swedish company inaugurated a global testing centre in Bengaluru, southern India, and a solution plant in Pune, in the western part of the country.

Source: Tradingmarkets.com

Sunset for Maruti 800 in 13 cities from Thursday

New Delhi, Wednesday, Mar 31, 2010: Twenty six years after revolutionizing personal transportation in India, Maruti Suzuki will bid adieu to its once bread-and-butter model 'M800' from 13 cities as new emission norm comes into effect.

With the company deciding to let business rule over sentiments, M800, which was first was rolled out from Maruti's Gurgaon plant in December 14, 1983 in the presence of then Prime Minister Indira Gandhi, will no longer sell in major cities, including the National Capital and Mumbai.

Lots of nostalgic value is attached with the car (M800), but we can't allow sentiments to dictate business.

We have not upgraded it to Bharat Stage IV (BS-IV) norms as we do not consider it a good business proposition, "Maruti Suzuki India (MSI) Chairman R C Bhargava said.

From tomorrow onwards, 13 cities, including the NCR, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad and Ahmedabad, will switch over to BS-IV emission norms, while rest of the country will adopt BS-III norms from October.

Source: Indianexpress.com

Tata Nano on Flames

There is another sad news for Tata Motors and people who have great expectations from Tata Nano. A brand new Nano car by Tata motors, countries largest automobile company, was on fire on March 24, 2010. The incident is reported to be the fourth in the string. The company has ordered inquiry into the incident.

The car was recently purchased by Satish Sawant, an insurance broker by profession from a showroom in Prabhawati, Mumbai. Tata Nano catching fire incident took place when Satish was on his way back home to LIC, colony in Mulund. It was less than hour before the delivery that hisbrand new silver Nano was engulfed in flames.

Satish had paid Rs. 2.4 lakhs to get his dream car, a silver Nano from Concorde Motors showroom and got fitted a power steering and A/C. He was provided with a driver to take car home as he can not drive. Shocked Satish could not take the sight of shinybrand new car turning into debris of carbon in few moments. A fire tender was rushed to the spot and doused the fire. A case has been registered at Navgarh police station (Mulund E).

“I have no idea what happened. A motorcycle rider overtook me and told me that the vehicle was on fire,’’ said Satish Sawant. “The engine was behind me and I did not realize that the car was on fire,” he added. Satish however managed to get out of the car. He informed that company has taken the car and will investigate the cause of fire.

Earlier also three similar cases of Tata Nano catching fire were reported and in each incident the car was parked. The first incident took place last year in September. In all the three cases a faulty switch which was placed near the steering wheel was said to be the cause of fire. A short circuit in an indicator stalk was the root of the fire yet the company refused to recall the car. Tata has however reportedly fixed the problem.

A Tata spokesperson says, “This is a unique case. We are trying to figure out what went wrong.

Smooth going for Hero Honda Motors

The stock of Hero Honda Motors touched a new high of Rs 1,932.75 per share on Wednesday. At the current market price, the stock trades at 15.8 times its estimated earnings for 2011.

The analyst community is positive on the stock. “With increased ancillarisation and the 200 basis points increase in excise duty, margins on vehicles produced at Haridwar plant will be about 600 basis points (or six percentage points) higher than those at other plants,” In a note to clients on Monday, Jatin Chawla of IIFL Research wrote.

The Uttaranchal government increased excise duty to 10% from 8% in the Budget. Hero Honda’s Uttaranchal plant enjoys many tax incentives including 100% excise duty exemption for the first ten years, 100% income-tax exemption for the first five years and 30% income-tax exemption in the consequent five years.

Hero Honda plans to increase production from Uttaranchal plant to 37% of total volumes in FY2011 from 28% in FY2010. The company manufactures its high-margin product, Splendor, at its Uttarakhand plant, which provides substantial tax incentives. This would help Hero Honda’s operating profit margins and profitability, as overall tax rate will also decline.

Going forward, Hero Honda expects its sales volumes to rise 10% year on year in FY2011. Implementation of proposed GST should lead to decline in prices of vehicles in FY2012. This should boost demand and help improve volumes in FY2012.

Hero Honda’s sales volumes increased 16.1% year on year in February to 382096 units. However, sales fell 2% over January.Bajaj Auto and TVS Motor performed comparatively better. Bajaj’s Discover got a good response from the market.

Discover competes with Splendor, which accounts for about half of the company’s profits. Hero Honda’s relative market share against Bajaj Auto and TVS has dropped by 160 basis points in February over January. Some analysts attribute the loss of market share to lower base of competitors and maintain that further marginal loss cannot be ruled out.
Higher raw material costs are also a dampener for the stock.
IIFL has an ‘add’ rating on the stock with a 12 month target price of Rs 2,200 apiece. Investors could consider the stock on declines.

Source: DNAIndia.com

India to be Small Car hub for Ford

NEW DELHI: Alan mulally, the 64-year-old messianic chief executive of Ford Motor Co, aims to realise in India the dream of his company’s legendary founder Henry Ford: opening up the highways for everybody.

The former Boeing executive, under whom Ford avoided the embarrassment of having to seek a US government bailout that rivals General Motors and Chrysler had to avail of, is a fan of India’s “frugal engineering” capabilities and plans to make the country Ford’s small car hub. In a departure from the past, Ford also plans to bring all its models into India, attempting to catch up with rivals and gain greater traction in the red-hot Indian car market .

“This is a new Ford,” Mr Mulally told ET NOW in an interview. “Our commitment is that we will bring all the vehicles that we have to the markets that we serve. The Figo is just one part of that larger vision.”

Ford, which rolled out the rickety Escort cars in 1998 in a joint venture with the Mahindras, is realising its folly of not producing right-sized and right-priced vehicles in India, a flawed strategy that saw it cede space to Asian rivals such as Hyundai and Honda. It has now launched the small car Figo to take on Maruti Suzuki’s WagonR and Swift, and Huyndai’s i-10.

Mr Mulally has been on course to deliver what he had promised for the US auto maker. He cut costs, eliminated staff and helped the company post a quarterly profit, though an annual profit still eludes him. Its shares are soaring and its sales have beaten cross-town rival General Motors in February — after more than a decade.

He achieved most of the targets because of what he calls “laser focus” on his ‘One Ford’ plan, which he announced when he took over in 2006. He pledged the Ford brand and other assets to borrow $23 billion, which he then termed as “the world’s largest home-equity loan”.

While global car makers, such as Italy’s Fiat and France’s Peugeot, are looking for alliances to improve efficiencies, Mr Mulally is selling brands, factories and cutting jobs.

“Back then we took a very important call — that we will be laser focused on the Ford Blue Oval brand worldwide,” Mr Mulally said. “It’s a brand people recognise and appreciate, and we want to grow it and be focused on it.”

That has meant saying goodbye to a cache of iconic European brands — Aston Martin, Jaguar-Land Rover and now Volvo Cars — so that the focus of all innovation and attention of the group is on the mother brand.

Like Carlos Ghosn, CEO of Renault-Nissan, Mr Mulally is a fan of India’s frugal engineering expertise. And with the Figo, he is looking to make India Ford’s small car hub.

“(Ford will) absolutely make India its small car hub. India is a tremendous operation for us, it has tremendous capability in all elements of the automobile business, including design, and it’s already integrated with our entire global system. So India will continue to take a more important role for us worldwide,” he said.

And his larger mission is to fulfil the dream of its founder. “Henry Ford used to say, ‘We want to open up the highways for everybody’,” said Mr Mulally. “We want to do just that in India.”

Honda to Recall 437,763 Cars Worldwide over Airbag

Japans second- largest automaker Honda Motor Co. said Wednesday it will recall a total of 437,763 vehicles globally to fix a defect in the driver's airbag installed on certain models produced in 2001 and 2002.

The recall, the third related to the same defect since 2008, will cover 378, 758 units in the US, 41,685 units in Canada, 4,042 units in Japan and 13,278 units in Mexico, Taiwan and Australia, the Tokyo-based firm said in a statement. "Based on our ongoing investigation and analysis, we decided to expand the recall, which has included a total of 514,355 units in North America, Japan and other regions since November 2008 and June 2009," it said.

The latest Honda recall covers seven models sold in the US, including 2001 and 2002 Accord and Civic cars, Odyssey minivans, CR-V sport-utility vehicles and 2002 Acura TL cars. In Japan, the affected models are Inspire, Saber and Lagreat.

Honda said the driver's airbag inflators in the vehicles may deploy with too much pressure and rupture the casing, causing injury or fatality to vehicle occupants. 12 persons were injured in the US in connection with the defect by July 2009, "although there have been no incidents since the previous recall" last year, it said.

Honda's recall came one day after Toyota Motor Corp., the world's largest automaker, announced massive global recall of hybrid vehicles worldwide, including its best-selling Prius, to fix brake problems, putting a dent in the Japanese automaker's reputation.

Source: Khabrein.info

Maruti Clocks a Sharp Growth in Car Sales on January

Leading automobile major Maruti has clocked a record growth in car in January this year and has cited an increase of 33 percent over the previous month. The impressive numbers clocked by Maruti comes at a time when the automobile industry is preparing itself for a high growth seasons with most analysts predicting huge sales in coming months for most major vendors.

Though Maruti has done wonderfully well in its domestic market, it exports too has sharply risen to 14,500 in January and this also serves as an indicator that Indian made small cars are increasingly finding acceptability across world markets. Apart from Maruti many other automobile manufacturers in Indian including the likes of Tata Motors and Mahindra are looking to tap the export market which has over the years become more receptive to Indian brands which offer a good option of affordable price and standard quality.

It is also important to note that the robust revenues clocked by Maruti is adding to the bottom-line of its parent company, Suzuki Motor Corporation. The Japanese small car behemoth has announced a 18 billion yen for its third quarter and it owes a great deal of this growth to Maruti. In order to tap into the increasing demand for its cars, Maruti has firmed up plans to spruce up its production capacity and it aims to manufacture more than a million cars this fiscal, which if achieved would be a landmark figure for the company.

Source: Economynews.in