GM Faces $US3.3 billion Lose in the First Quarter of Current Year

US based auto maker General Motors has seen a loss of $US3.3 billion, which is much less than the amount analysts expected in the first quarter of this year. Thanks to the companies booming business in Asia, Europe and Latin America, GM could make up its disastrous US sales. American economy is now going through a rough patch and the other automakers are also facing tough time in American market. However, the good news for GM is that the company gained 12 percent stock on Wall Street.

Sydney Morning Herald reported:

The automaker boosted profits by at least twofold in each of its other three regions. GM's European profit grew by more than 18 times to $US75 million ($A80.47 million), Bloomberg financial news service reported.

The Asia-Pacific region doubled earnings to $US286 million ($A306.87 million) on the strength of South Korean-designed Chevrolet small cars. The Latin America-Africa-Middle East region also doubled, to $US517 million ($A554.72 million).

GM is the world’s largest automaker, but in the first quarter of current year, GM fell behind Japanese automaker Toyota, which shows the US automaker would face a strong challenge from the Japanese automaker in the coming months to hold on leading position in the automobile market.

Honda Declines to Provide Any More Emergency Help to F1 Team Super Aguri

Widely known automobile engine manufacturer Honda has recently revealed that it will not provide any more emergency financial help to Japanese struggling Formula 1 team, Super Aguri. Honda has already given three million dollars to Super Aguri so that the team can take part in the Spanish Grand Prix. At this moment Super Aguri is in debt of 100 million dollars to Honda.

Super Aguri was founded in 2005 by former F1 Japanese racer Aguri Suzuki and the team is now going through a tough time in terms of performance and its financial situation is not good as well. The team received a blow when Britain’s Magma Group declined to buy Super Aguri. After four races so far this season, the team is yet to get their first point. Briton Anthony Davidson and Japan's Takuma Sato are the two drivers of the team.

AFP reported:

"We will not provide relief on a race-by-race basis any longer," a Honda official was quoted as saying.

Honda, which has its own Formula One team, and Super Aguri, which owes about 100 million dollars in debt to Honda, were to hold a "final" meeting on the issue on Wednesday, the report added.

No doubt, the team is struggling and I am doubtful how long the team can survive this way unless a company acquire it and invest a handsome amount to make bring out some successes for it. Now, the question is who are going to take the risk, while the team’s performance is not so satisfactory. Let us hope Super Aguri survives in F1 and success comes in its way in future.

England's new 'vehicle excise duty' makes car owners unhappy

Failure to clarify the “new car tax” introduced in the recent budget in England has created dissatisfaction among English car users. They complained that the budget did not clearly mention the high amount of tax which has to be paid by the polluted car owners who bought cars after March 1, 2001. In his budgetary speech, Chancellor Alistair Darling mentioned of reforming the “Vehicle Excise Duty (VED)” to encourage manufacturers to produce cleaner cars.

And he said by introducing new bands of tax there would be "an incentive to encourage drivers to choose the least polluting car."

He also said it was "right that if people choose to buy a more polluting car that they should pay more in the first year to reflect the environmental cost."

However, he did not say explicitly higher charges would apply to anyone who bought a car from 1 March 2001.

The conservative party labeled it as “duplicity.” However, England government refuted such claims. Shadow treasury minister Justine Greening was not happy with the new tax. She said that this will hurt hundreds and thousands of low-income families that can not change cars often.

The new tax system starts with thirteen tax band: A-M. M is the highest polluter who will pay £440.

Related article:

BBC

A Mitsubishi AD Campaign Attracting the Viewers

A television ad for Mitsubishi Eclipse and Eclipse Spyder has created a lot of attention among the Mitsubishi marketing departments across the world. This advertising campaign has been developed through computer-generated graphics and this will be shown on ABC, NBC, TNT and ESPN1,2,3 television channels during the NBA playoffs.

Canadiandriver reported:

The campaign, created through computer-generated graphics, shows factory rotors moving through various sports-related activities such as basketball, football and hockey as they assemble vehicles. The ad is for the new Eclipse and Eclipse Spyder.

It took three and a half months for 15 staffs to make this ad. The ad was developed by Canada based BBDO Toronto and created by New York based special effects house The Mill. Peter Renz, Mitsubishi Director of Marketing, has said that this advertising campaign shows the imagination, inspiration, innovation and performance- that Mitsubishi believes in. So, no doubt, this ad has created a special attention among the viewers and I think, this will surely help Mitsubishi Eclipse and Eclipse Spyder to attract the people.

Toyota : Reaching towards sky with passenger jet career

After winning the roads, now it’s time to win the sky. Last wedenesday, Japan’s world famous auto-maker, Toyota Company, declared to invest 10 billion yen ($96 million) in Mitsubishi Aircraft Corporation, a unit of Mitsubishi Heavy Industries. The company will produce Japan’s first passenger carrying, fuel efficient jet planes. The latest press release from Toyota stated that it accepted an increased share of 10 billion yen planned by Mitsubishi Aircraft Crop. through a third party allocation. AFP reports:

Mitsubishi Aircraft is initially capitalised at three billion yen. But the capital is scheduled to be eventually raised to 100 billion yen with Mitsubishi Heavy sharing two thirds.

When Mitsubishi Heavy announced the project on March 28, it said it hoped to secure financial support to cover the remainder from Japanese companies including Toyota, Mitsubishi Corp., Mitsui & Co. Ltd. and Sumitomo Corp., along with the government-controlled Development Bank of Japan.

The Nikkei newspaper reported Wednesday that Mitsubishi Aircraft will increase its shares by 67 billion yen -- 6,700 shares worth 10 million yen each -- through a third-party allocation on May 30.

The fuel efficient jet planes will go into action from 2013. Mitsubishi Aircraft Corp. started the production after receiving order of 25 jet planes from All Nippon Airways,Japan’s largest domestic airlines. Mitsubishi Aircraft Corp. will mainly compete with Canadian aircraft manufacturer, Bombardier Aerospace and Brazillian Company, Embraer.

Related article:

AFP

Fiat Signed MoU to Buy Zastava Car Plant in Serbia

Global auto maker Fiat SpA is going to buy the Zastava plant in Serbia. Fiat Puntos and Opel Astras are currently being produced there for the Southeastern Europe. Fiat has already signed a memorandum of understanding of the deal. It is reported that Fiat is contemplating to invest €700 million (US $1 billion) for the production of 200,000 cars in Serbia. Economics Minister of Serbia, Mladjan Dinki, indicated that the automobile giant had plans to begin the production of a new model in Zastava by 2009.

IHT reported:

Under terms, Fiat and Zastava would form a strategic partnership in which Fiat will control 70 percent of the stake to Zastava's 30 percent, said Dinkic, who attended the signing at the plant in Kragujevac, 140 kilometers southeast of Belgrade.

"This initiative represents a further step in Fiat Group Automobiles' strategy aimed at supporting its growth and volume aspirations," Fiat CEO Sergio Marchionne said in a statement. It is one of a number of target alliances and partnerships made with automakers and automotive suppliers over the last several years as part of Marchionne's strategy to share costs.

Fiat is one of the most renowned companies in automobile market throughout the world. Zastava may not be that much fame throughout the world, but in Serbia, it has fame as an automobile manufacturer. Now, let us see if Fiat and Zastava can make a strong partnership and become beneficial.