Gloria Arroyo Requests Japan to Take more Workers from Philippines

Remittance is one of the top contributors for Philippine economy. Many workers from the country are in the Middle East countries and they send billions of dollars every year back home to families and relatives. However, now, because of economic recession, the country is suffering in this sector. So, President Gloria Arroyo has called on Japan to help the country. They have skilled workers who are good in English and that is why Gloria Arroyo is suggesting that her country can provide many English language teachers and IT workers for Japan.

What I understand is that Japan is suffering from economic recession. Unemployment is a major concern in the country now. So, I am not sure whether Japan can give importance to the call of Gloria Arroyo.

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AFP

Toyota can face Post Recession Demand Well?

Economic recession has not finished yet. However, there is some kind of a common idea among many leaders that the worst is over and from here only better condition may come. This should ring sweet bell to auto makers because they are among the most hard hit from the recession. If economic condition improves then the demand for cars should increase too. Toyota officials are confident that they are prepared for it.

Reuters reported:

"The fact that Toyota entered the downturn from a position of strength strongly suggests it will be among the first to return to profit," the weekly financial newspaper said in its June 15 edition.

If the U.S. auto market shows signs of perking up, Toyota's ADRs over the next year could go from their recent price in the high $70s to at least $115, Barron's forecast, noting they hit $137 about two years ago.

It is good for Toyota. Unfortunately, US auto makers suffered a lot. GM bankruptcy caused a havoc in America in the auto industry.

Indian Ambassador in China Calling for Balanced Relationship between India and China

Indian ambassador in China, Nirupama Rao, called for a balanced relationship between India and China. The ambassador was addressing 500 delegates from several countries of the world at the Global Business Forum which was organized in China by FICCI, a trade promotion forum. The forum was organized during the ongoing International Indian Film Academy (IIFA) weekend which was recently kicked off by Bollywood actor Amitabh Bachchan.

Nirupama Rao said that both the countries need to increase co-operation for each other in order to develop on several sectors and both India and China should have a much better understanding between themselves. Stating that the economies of the two countries could be the engine of world economic growth, Ms. Rao said that both the countries can learn from each other and have enough space for growth in both the countries.

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The Hindu

Maruti Experienced 10% Growth in American Market in 2008-09 FY

Maruti Suzuki posted a 10% increase in its revenue in the American car market in the last fiscal year, while its parent company Suzuki faced a 55.6 percent decline in its total sales over the last one year. This is really a big achievement for Maruti Suzuki, which is a subsidiary of Japanese auto maker Suzuki, to maintain a growth in the last fiscal year when many other automakers struggled to minimize its operating losses due to a significant fall in demand amidst economic recession in the country.

Maruti Suzuki recorded Rs 23,085 crore of revenue in the last financial year which is 10 percent growth compared to the year-round income. Suzuki, on the other hand, just saw a significant fall in its sales and lost a huge chunk of revenue. In fact, the Japanese company posted a revenue of Rs 18,000 crore which is 55-6 percent less than the income it earned the previous year.

It is a really a matter of surprise that the India based automaker has seen excellent success in the US market which has been a hard platform for the noted automakers to fare well. Well, Maruti Suzuki has launched a number of small cars in the last one year and has seen extensive success in the domestic market too. The company now expects similar success in the current fiscal year too both in domestic and American car markets.

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Business Standard

Toyota Not Highly Optimistic about Car Sales in Indian Market in 2009

Toyota Motor Corporation expects flat sales in Indian market in 2009. The Japanese automaker, which is now operating business in India under a joint venture with Kirloskar Group, has not started selling small car in the cost-effective Indian car market. In fact, the Toyota Kirloskar is planning to launch its first small car in the domestic market at the end of the year. Small car has become the most profitable line of business for the automakers in the country.

Most of the rival companies including GM, Suzuki and Hyundai already started selling small car. Last fiscal year, small cars accounted for 73% of the 1.22 million car sales in India. Having realized the potential of the small car line up, many car makers came up with small car models in India. Domestic car makers like Maruti, Tata have also made the small car market more competitive.

I think, Toyota should have focused on the small car segment much before. No doubt, the company should now bring out a small car for Indian market as soon as possible because this is the easiest way to grab a big chunk of market share within a very short time in Indian car market.

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The Wall Street Journal

Airline Industry to Face $9 billion Global Loss This Year

The economic recession has not got over yet and it seems that it will continue for an extended period now. I do not know about any other sector, but global airline industry is predicting so. Recently, The International Air Transport Association has almost doubled its estimated loss to $9 billion. The initial forecast indicated a bit better than last year’s losses, but now it seems that the condition is going be worst than the previous year. Global airline industry would see a 15% drop in its yearly revenue which is even worst than the condition after the terror attack in the US on 11 September 2001.

The airline business is currently stumbling due to the prevailing economic crisis which saw many airline companies to cut its flights, staffs, in-flight services as well as salaries to deal with the recession-hit condition. Some airlines are trying to attract the cost-sensitive travelers by offering tickets for much less. Demands for first class and business class tickets have been slowed down significantly, as many travelers are choosing economy class to save money.

Asia-Pacific region saw biggest loss last year mainly because of economic slowdown in Japan. Moreover, the booming growth in Indian and Chinese economy has also been halted by the current economic meltdown. Naturally, the middle class and upper middle class in China and India are now much more concerned about saving money. Overall, it seems that the condition of global airline industry is less likely to improve this year.

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NY Times

Asian Automakers Lost Market Share in USA in May 2009

May 2009 saw a bad month for Asian carmakers in the US auto market. Asian automakers lost 2.5 percentage market share in May as their overall market share stands at 45.6 percent. This has been the first such drop for the Asian carmakers in the US. Well, it does not mean that the competitors of Asian car makers in US market fared very well in May, but Asian car makers experienced more dip in their sales compared to their competitors.

Japanese and South Korean automakers declined 37 percent in their May sales, while other competitors in the market saw 32 percent drop in their sales last month. It was a bit strange because some US-based car makers like GM and Chrysler have been bankrupted, while Asian automakers were favored by increasing fuel price.

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bloomberg

General Motors Trying to Keep Consumer Confidence Intact in Asia

General Motors (GM) might be facing a tough time in domestic US car market, but the company is running very well in Asia, especially in China. Now, the automaker is trying hard to ensure that its Asian operations remain unaffected by the company’s bankruptcy threat in America.

GM might be doing well, but there is a probability that the company might lose consumer confidence in Asian markets like China because of its tumultuous condition in the US. That is what GM is now very much concerned with. GM China is now trying to differentiate the company from its patent company, by stating that GM China is nothing but a joint venture involving Detroit auto maker and Shanghai Automotive Industrial Corp in which both the companies have 50 percent shares each.

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The Wall Street Journal

Tata Motors May 2009 Sales Declined by 13.26 Percent

Indian auto maker Tata Motors experienced 13.26 percent fall in its May 2009 sales compared to the same period of last year. Tata sold 40,916 units in May this year against 46,339 units sold in May 2008. The company saw biggest decline in its overseas sales as it recorded 47.30 percent decrease in exports at 1,804 units, over 3,423 units of the same period of the last year. Domestic sales also declined by 20 percent in May.

Tata sold 10,006 Indica models in May which is 3 percent increase over the last year. Indigo car sales were down by 37.6 per cent at 2,832 volumes. Sumo and Safari models together recorded 49 percent decline in May 2009 sales. Though light commercial vehicle sales saw 20 percent growth, Tata Motors experienced 27 per cent decline in its sales in May, compared with May 2008.

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The Economic Times