Auto Industry News @ India

According to a recent reports, Americans are looking at buying Chinese and Indian cars. Interestingly, the owners of South Korean brands are at the forefront to check out the cars from other Asian origins. Why not ?!

Interestingly, two prominent Indians recently acquired the iconic American automobile, HUMMER. Two popular cricketers, MS Dhoni and Harbhajan Singh are the proud owners of the gaz-guzzlers :) This could generate more demand for this model. Southern Superstar, Chiranjeevi, was one of the earlier owners of an Hummer.

Film stars and cricketers can influence the brand-preference of cars in India.
While Shah Rukh Khan gave a dream entry for Hyundai, SUV's such as Mitsubishi range command a lot of aspirational value. Fiat's strategy to use Sachin Tendulkar as their brand-ambassador gave them high visibility too. Yuvraj has been roped in for Fiat Punto!
Jag and RR may consider this route to make their recently acquired brands more popular.

Of course, price will be a big factor. Toyota's Landcruiser is pegged at over Rs 80Lac, while it costs equivalent of RS 30 lac in Gulf, a market which enjoys low duties and taxes.

Used Car slump in Middle East

If new car industry has been going through a lean phase, the cascading effect on Used car can not be far behind. If other catalstic effects added, like Saudi ban on very old used cars and restrictions in certain African countries due to pressure on foreign exchange, the slump speeds up...

Read on
http://www.business24-7.ae/Articles/2009/7/Pages/15072009/07162009_1142df791c10493cb8720b7c144775eb.aspx

New General Motors

Indeed... how can US Government ensure more Americans buy the New GM brands ? Moreso, when 1/5 customers prefer GM now.
This is going to be the challenge for all involved in the bail out. It is wrong to fix the responsibility with just President Obama. He would have been happy to note many GM cars on Saudi roads, during his brief visit. Middle East will continue to be a key market for New GM.

PS : New GM almost sounds like the minor enhanced products rolled out in the market as part of brand extensions ( New/Improved/etc soap/detergents !!)

GM Files Chapter 11

It had to happen... GM had to file for bankruptcy, as it was clear that was the only way out.

GM has $172 billion in debt and $ 82 billion in assets ! This fallen icon of American industry will need additional 'stimulus' in form of $ 30 bn additional financial assistance. ( over and above the 20 bn low cost loans)
With 60% ownership with federal govt, 12.5 % with canadian govt and balance with UAW union, how is GM different from a chinese owned car company ? It becomes a state owned car company ! That too, in US !
What went wrong ? Leadership, for sure. Then other factors such as Government policies, customers' attitude, workers, competetion, etc., etc.
GM is a popular brand in ME. But, losing the preference among car buyers. No wonder, GM came out with full page PR release. The news is this will not affect key markets such as ME, China and India. May not affect directly..

The NEW GM is expected to rise like a Phoenix bird... with car buyers postponing their purchase, only time will tell...

Best Job in the World

• Role : Caretaker of a tropical Australian island - dream assignment to swim, explore and relax on Hamilton island for six months, write a blog to promote the area.
• Ben Southhall, 34 yr old Briton, has been selected out of nearly 35K applicants !
• A charity worker, his love for adventure and other interests ( bungee jump, ostrich-riding, marathon-running, trekking, etc ) helped him.
• He gets to live for free in a oceanfront villa.... COOL...... !!

Best wishes for Ben, in the new role. Let us hope, he comes back with a stronger resolve to do more charity and selfless service

PS:Happiness does not lie in doing what you like, but liking what you do-anonymous

Chrysler files for bankruptsy

Chrysler files for bankruptsy. The Chapter 11 filing, as it is popularly known as, will send shock waves across automobile markets, world-wide.
Fiat will pick up 20 % stake. Fiat had come out of a slump recently. Bold move, it will give Fiat access to North American market.
President Obama is confident of saving over 30,000 direct jobs and many more at suppliers/dealers, etc. A key factor in these tough times and a key deliverable for government.
The US government will provide up to $3.5 billion in debtor-in-possession (DIP) financing and up to $4.5 billion in exit financing.
As the world economy throws up not-so-encouraging statistics regarding its performance, sectors such as automobile will face the brunt of its impact. Tough times ahead…

Al-Saif Motors inaugurates new showroom designs in Jeddah and Dammam

Al-Saif Motors Land Rover and Jaguar importer for the Kingdom of Saudi Arabia, has officially unveiled the new look for its main Jeddah and Dammam showrooms.

The refurbishments, which were completed over the last four months, will ensure that Jaguar and Land Rover customers receive the very best buying experience in the Kingdom.

Extensively redesigned and encompassing a total space of X square meters, the showrooms feature large, spacious lounge areas with complimentary refreshments, new lighting and entertainment options, as well as a larger show space for the latest models from Jaguar and Land Rover.