Malaysia's former prime minister Mahathir Mohamad has dismissed news reports that the national carmaker Proton Holdings is on the market, writing in his blog that he had told the company's chairman and chief executive that it was "not for sale".
Dr Mahathir's influence has soared in the new administration of Prime Minister Najib Razak, and the former PM indicated that he was back as Proton's adviser and "busy on a plan to resuscitate the company".
Under the previous administration of Abdullah Badawi, Dr Mahathir hinted that he had no role in Proton as "no one asks me for advice".
His unequivocal statement that Proton is not for sale would dash the hopes of at least three parties that are said to be interested in the company. They are the DRB-Hicom conglomerate, the Naza auto group and the management of Proton itself, whose chairman suggested it two weeks ago.
Dr Mahathir said Proton was returning to profitability given the number of new cars he has been seeing on the roads lately."I know that a new car is not noticed on the roads until a certain volume of sales is achieved," he wrote at http://chedet.co.cc/chedetblog/.
"Since Proton acquired a new chairman in the person of Nadzmi Salleh, I find it easier to perform the work of Proton adviser. The Prime Minister has also indicated that Proton's affairs should be referred to me. Accordingly, I have been busy on a plan to resuscitate the company and have been talking to potential technology partners for Proton."
Then he got to the point."Lately I have been disturbed by media reports that Proton is to be sold to certain parties.This talk has agitated the staff of Proton.Their worry affects their performance. I have told the chairman and the chief executive that Proton is not for sale and there is no plan to sell Proton in the foreseeable future.
"The need is to restructure the company and reach agreement with the potential partner. After that, work has to be done to ensure Proton fully recovers."
Dr Mahathir's comments are likely to have been noted seriously by the government, as Proton was his brainchild back in 1984. They would also have been noted with regret by Syed Mokhtar AlBukhary, the controlling shareholder of DRB-Hicom, which reports indicated was the front-runner for the car company.
The tycoon bid for Proton six years ago but his bid was rejected at the time by then-premier Abdullah. DRB-Hicom was thought to be looking at buying 32% of Proton.
Proton posted a net loss of 320 million ringgit (3.12 billion baht) for the year to March 31,2009 but is expected to be back in the black in the current financial year. Its sales have climbed steeply and it expects to sell 155,000 units by the time its financial year closes in March 2010.
Sunday, November 8, 2009
GOVERNMENT INCENTIVES LIFT TOYOTA SALES
Toyota Motor, the world's largest car-maker, narrowed its full-year net loss forecast for a second time after government stimulus measures revived vehicle demand in the US and Asia.
The company expects a 200-billion yen(Bt73 billion) loss in the year ending March 31, compared with an earlier forecast for a YEN450-billion loss, it said yesterday.
The auto-maker posted an unexpected second-quarter profit of YEN21.8 billion.
Toyoto joined Nissan Motor in predicting a smaller loss as government tax cuts and subsidies spurglobal car demand.
President Akio Toyoda, who said last month the maker of Corolla compact cars was one step from "irrelevance or death", has ordered the carmaker's first plant closure and an exit from Formula One racing to cut costs. "Toyota's sales are picking up more than initially thought," said Koichi Ogawa, chief protfolio manager at Daiwa SB Investments in Tokyo, which manages YEN3.4 trillion. "Like Honda and Nissan, Toyoto is benefiting from government stimulus programs."
Toyota City, a Japan-based company raised its full-year revenue forecast to YEN18 trillion from YEN16.8 trillion as it boosted vehicle sales estimates for Asia, Japan and Norht America. The improved earnings outlook follows Honda Motor almost tripling its profit estimate last week.
Nissan narrowed its loss forecast, citing better-than-expected sales in China. Hyundai Motor, South Korea's biggest auto-maker, posted a record profit in the quarter on surging US and China sales and a weaker won.
Toyota's second-quarter net income compared with a projected loss of YEN23.2 billion, based on the median of five analyst estimates compiled by Bloomberg. The profit was due to strong performance by the company's finance division,Toyota said.
Net income in the three months still fell from YEN139.8 billion a year earlier as vehicle sales declined in Asia, Euroipe and the US and a stronger yen cut the value of overseas earnings.
The yen averaged 13 per cent stronger against the dollar last quarter than a year earlier.
"The US economy is still in bad shape, with the job situation worsening," said Yuuki Sakurai,chief executive officer of Fukoku Capital Management in Tokyo, which manages about YEN800 billion. "The dollar well likely remain weak."
For the full year, Toyota raised its global vehicle sales forecsst to 7.03 million from an August forcast of 6.6 million. It sold 7.57 million units last fiscal year.
The company expects a 200-billion yen(Bt73 billion) loss in the year ending March 31, compared with an earlier forecast for a YEN450-billion loss, it said yesterday.
The auto-maker posted an unexpected second-quarter profit of YEN21.8 billion.
Toyoto joined Nissan Motor in predicting a smaller loss as government tax cuts and subsidies spurglobal car demand.
President Akio Toyoda, who said last month the maker of Corolla compact cars was one step from "irrelevance or death", has ordered the carmaker's first plant closure and an exit from Formula One racing to cut costs. "Toyota's sales are picking up more than initially thought," said Koichi Ogawa, chief protfolio manager at Daiwa SB Investments in Tokyo, which manages YEN3.4 trillion. "Like Honda and Nissan, Toyoto is benefiting from government stimulus programs."
Toyota City, a Japan-based company raised its full-year revenue forecast to YEN18 trillion from YEN16.8 trillion as it boosted vehicle sales estimates for Asia, Japan and Norht America. The improved earnings outlook follows Honda Motor almost tripling its profit estimate last week.
Nissan narrowed its loss forecast, citing better-than-expected sales in China. Hyundai Motor, South Korea's biggest auto-maker, posted a record profit in the quarter on surging US and China sales and a weaker won.
Toyota's second-quarter net income compared with a projected loss of YEN23.2 billion, based on the median of five analyst estimates compiled by Bloomberg. The profit was due to strong performance by the company's finance division,Toyota said.
Net income in the three months still fell from YEN139.8 billion a year earlier as vehicle sales declined in Asia, Euroipe and the US and a stronger yen cut the value of overseas earnings.
The yen averaged 13 per cent stronger against the dollar last quarter than a year earlier.
"The US economy is still in bad shape, with the job situation worsening," said Yuuki Sakurai,chief executive officer of Fukoku Capital Management in Tokyo, which manages about YEN800 billion. "The dollar well likely remain weak."
For the full year, Toyota raised its global vehicle sales forecsst to 7.03 million from an August forcast of 6.6 million. It sold 7.57 million units last fiscal year.
OFFICIAL E-CLASS SALES AT STARFEST 2009
After allowing grey importers to feast on sales of the new E-Class since midyear, Mercedes-Benz will officially start taking orders for the new E-Class models at Starfest 2009, to be held in Central Chidlom from November 14-15.
As well as the new E-Class, which comes with the CGI Blue Efficiency engine and various driver-assistance systems, the remaining models in Mercedes-Benz's range for the Thai market will also be on display.
Chatvitai Tantraporn, general manager for marketing and communications at Mercedes-Benz (Thailand), said economic growth in the fourth quarter had boosted the company's confidence that Starfest would attract a lot of attention.
The event has been held for five consecutive years, and this year Mercedes-Benz will showcase all of its models in every segment.
"There'll be a launch of the three new E-Class models in both categories: saloon and coupe. We trust the new E-Class will impress our customers as not only the best-looking car in the world, but also the most technologically advanced and most environmentally compatible," Chatvitai said.
"For customers who have not yet made a decision, this is the best opportunity, because at Starfest 2009 we'll make special financial offers, tailor-made to individual needs, to make it easier to own a Mercedes-Benz."
As well as the new E-Class, which comes with the CGI Blue Efficiency engine and various driver-assistance systems, the remaining models in Mercedes-Benz's range for the Thai market will also be on display.
Chatvitai Tantraporn, general manager for marketing and communications at Mercedes-Benz (Thailand), said economic growth in the fourth quarter had boosted the company's confidence that Starfest would attract a lot of attention.
The event has been held for five consecutive years, and this year Mercedes-Benz will showcase all of its models in every segment.
"There'll be a launch of the three new E-Class models in both categories: saloon and coupe. We trust the new E-Class will impress our customers as not only the best-looking car in the world, but also the most technologically advanced and most environmentally compatible," Chatvitai said.
"For customers who have not yet made a decision, this is the best opportunity, because at Starfest 2009 we'll make special financial offers, tailor-made to individual needs, to make it easier to own a Mercedes-Benz."
All-new FOCUS out to topple Golf
The all-new Ford Focus will arrive in showrooms in early 2011 with the aim of finally dethroning the Volkswagen Golf as western Europe's best-selling car, according to company sources.
The new Focus won't just be a key player in Europe, either; it's set to become a global car, also to be sold in North America. The US version will be unveiled at the Detroit show in January, before Europe.
The new Focus will go on sale after the launch of the recently unveiled C-Max five and sevenseat MPVs, the first models based on what Ford sources call an all-new, global platform.
The production version of the C-Max, to be built in Spain, is set to be launched at next September's Paris show. The seven-seat version is heading for the US along with the Focus.
Design sources say Ford is going to make the new Focus much sportier and more coupe'-like than the current model."The hatchback Focus will be relatively lower and sportier than the C-Max you saw at the Frankfurt show," said our insider."The important point is that there will be much more differentiation in terms of the relative stance and the H-point between the hatches and C-Max than on the current models."
The H-point is designer shorthand for the position of the driver's hip point, which in practice means that the upcoming three and five-door Focus hatchbacks will have lower seating positions and markedly low-roofed styling.
The Focus's chassis is also likely to be more sportily tuned than that of the C-Max, which is aimed at families and older drivers who appreciate the higher seating position.
The Focus will also get its own interior design theme, with the dash angled towards the driver to deliver more of a cockpit-like feel.
The new Focus will be powered by a new range of Ecoboost downsized turbocharged petrol engines.
"The plan is for all our petrol cars to have smaller-capacity, direct-injection turbocharged engines," said one source."We especially have to meet the average CO
target figure that has been set in the European Union, but downsized turbocharged engines are already proving popular in North America as well."
One casualty of the move to greater fuel efficiency will be the five-cylinder Volvo-derived engine that powers today's Focus ST. The next generation of the model is likely to be powered by a turbocharged 2.0-litre four-pot, which can develop as much as 276hp.
Aside from its range of diesel engines, Ford is working on a new range of super-frugal threecylinder turbo petrol units, with capacities much smaller than 1.6 litres.
These engines are likely to be sized around 1.0-and 1.2-litres and are expected to become more popular when tough EU emissions rules make diesel engines increasingly expensive.
A number of makers (including Renault and Nissan) are working on similar powerplants because the upcoming EU5 and EU6 emissions regs will force expensive de-pollution kit to be fitted to diesels.
This move will make small diesels too expensive to be fitted to superminis and many cheaper Focuses. Ford hopes that the three-pot petrol motors will offer the performance and fuel economy of a typical small diesel.
The new Focus won't just be a key player in Europe, either; it's set to become a global car, also to be sold in North America. The US version will be unveiled at the Detroit show in January, before Europe.
The new Focus will go on sale after the launch of the recently unveiled C-Max five and sevenseat MPVs, the first models based on what Ford sources call an all-new, global platform.
The production version of the C-Max, to be built in Spain, is set to be launched at next September's Paris show. The seven-seat version is heading for the US along with the Focus.
Design sources say Ford is going to make the new Focus much sportier and more coupe'-like than the current model."The hatchback Focus will be relatively lower and sportier than the C-Max you saw at the Frankfurt show," said our insider."The important point is that there will be much more differentiation in terms of the relative stance and the H-point between the hatches and C-Max than on the current models."
The H-point is designer shorthand for the position of the driver's hip point, which in practice means that the upcoming three and five-door Focus hatchbacks will have lower seating positions and markedly low-roofed styling.
The Focus's chassis is also likely to be more sportily tuned than that of the C-Max, which is aimed at families and older drivers who appreciate the higher seating position.
The Focus will also get its own interior design theme, with the dash angled towards the driver to deliver more of a cockpit-like feel.
The new Focus will be powered by a new range of Ecoboost downsized turbocharged petrol engines.
"The plan is for all our petrol cars to have smaller-capacity, direct-injection turbocharged engines," said one source."We especially have to meet the average CO
target figure that has been set in the European Union, but downsized turbocharged engines are already proving popular in North America as well."
One casualty of the move to greater fuel efficiency will be the five-cylinder Volvo-derived engine that powers today's Focus ST. The next generation of the model is likely to be powered by a turbocharged 2.0-litre four-pot, which can develop as much as 276hp.
Aside from its range of diesel engines, Ford is working on a new range of super-frugal threecylinder turbo petrol units, with capacities much smaller than 1.6 litres.
These engines are likely to be sized around 1.0-and 1.2-litres and are expected to become more popular when tough EU emissions rules make diesel engines increasingly expensive.
A number of makers (including Renault and Nissan) are working on similar powerplants because the upcoming EU5 and EU6 emissions regs will force expensive de-pollution kit to be fitted to diesels.
This move will make small diesels too expensive to be fitted to superminis and many cheaper Focuses. Ford hopes that the three-pot petrol motors will offer the performance and fuel economy of a typical small diesel.
Wednesday, November 4, 2009
CREATIVE EFFORT HELPS TATA SALES
What does a company do if its drivers are not willing to read the users' manuals of the vehicles they will drive? Tata Motors has come up with an answer: give them a comic book.
Tata is about the launch a comic-book version of the user's manual for its Xenon CNG pickup. It's part of the Indian automaker's intensified focus on its commercial-vehicle division and comes after little more than a year's experience in selling vehicles in Thailand.
The Xenon CNG, aimed solely at the commercial-vehicle market, has net quite a few obstacles. Prominent among them is the need for drivers to read the uder's manual to get a better understanding of the CNG-fuelled vehicle, because its operation is technically different from that of a standard diesel pickup, so the company sought a simple solution: produce something the drivers want to read. The result is a comic-strip version that touches on the technical aspects of the Xenon CNG.
"The Xenon CNG has a fuel valve that needs to be opened and closed manually when refuelling. Failing to open the valve after refuelling leads to the engine shutting off. Because most drivers have not read the users manual, they don't realise the most probable reason the engine won't work is they have forgotten to open the valve. The comic-book version will defitely be more entertaining to read for these drivers," said Tata Motors (Thailand) CEO Ajit Venkataraman.
The Xenon CNG is now be only dedicated CNG truck in the automotive market. The only vehicle that can be considered a competitor is the Chevrolet Colorado CNG, which uses a dual-fuel system that mixes diesel and CNG to provide extra range.
The biggest problem with a dedicated CNG vehicle is its range. In Thailand, CNG fuelling stations have not yet spread around the country, so a driver could be stranded somewhere with no fuel at the end of the Xenon CNG's limited 150-200-kilometre range.
"This is not a problem, as most of our fleet customers have very well-planned routes. The vehicles run the same fixed routes every day and fill up at a certain station every day. If a vehicle does run out of fuel, our dealers will send out a service vehicle with a CNG refuelling tank," Venkataraman said. "We actually discourage privaate users from buying the Xenon CNG, because this [refuelling] can be a hassle at times. For private users who are fuel-cost conscious, our 2.2-litre diesel engine is ideal."
The Xenon CNG's limited range and the failure of drivers to read the manual are not the only problems Tata has faced. Another is brand acceptance. Being a new pickup manufacturer in the world's second-largest pickup market means they're playing at being a seal in the company of sharks. The long-standing local operations of Japanese auto-makers have built up a loyal customer base unwilling to try an Indian pickup-maker.
"The Xenon CNG has been a great product for us to penetrate this market. Fleet operators do not want another diesel pickup, as there are enough in the market already. The Xenon CNG cuts fuel costs, and fleet operators can see the benefits of the vehicle. Initially, they always order only one vehicle, but after seeing the benefits they order more," said sales director Abhichet Sitakalin.
Another advantage of the Xenon CNG is its fuel cannot be stolen. Fleet operators say stolen fuel accounts for a major increase in costs. With CNG, extracting the fuel requires equipment costing Bt30,000, and the low cost of CNG makes stealing it not worthwhile.
At present, more than 90 per cent of the vehicles Tata sells in Thailand are for commericla use. At next month's motor expo, the company will launch the Xenon Giant, a dedicated CNG pickup with a large bed and an extended fuel range of 300-400 kilometres. The company hopes the Xenon Giant will lead to a significantly increased market share.
Tata sold a mere 722 units in the first nine months of the year amid claims it was being overly optimistic. It says CNG-fuelled vehicles account for 30 per cent of current sales, and this figure is expected to reach 50 per cent next year with the new Giant entering the market.
Venkataraman said Tata was also monitoring other opportunities in the Thai market
"Although Tata is a major player in the bus and truck market in India - the second-largest bus and truck market in the world-it is unlikely we will enter the Thai market, because of its small size," he said.
Tata is about the launch a comic-book version of the user's manual for its Xenon CNG pickup. It's part of the Indian automaker's intensified focus on its commercial-vehicle division and comes after little more than a year's experience in selling vehicles in Thailand.
The Xenon CNG, aimed solely at the commercial-vehicle market, has net quite a few obstacles. Prominent among them is the need for drivers to read the uder's manual to get a better understanding of the CNG-fuelled vehicle, because its operation is technically different from that of a standard diesel pickup, so the company sought a simple solution: produce something the drivers want to read. The result is a comic-strip version that touches on the technical aspects of the Xenon CNG.
"The Xenon CNG has a fuel valve that needs to be opened and closed manually when refuelling. Failing to open the valve after refuelling leads to the engine shutting off. Because most drivers have not read the users manual, they don't realise the most probable reason the engine won't work is they have forgotten to open the valve. The comic-book version will defitely be more entertaining to read for these drivers," said Tata Motors (Thailand) CEO Ajit Venkataraman.
The Xenon CNG is now be only dedicated CNG truck in the automotive market. The only vehicle that can be considered a competitor is the Chevrolet Colorado CNG, which uses a dual-fuel system that mixes diesel and CNG to provide extra range.
The biggest problem with a dedicated CNG vehicle is its range. In Thailand, CNG fuelling stations have not yet spread around the country, so a driver could be stranded somewhere with no fuel at the end of the Xenon CNG's limited 150-200-kilometre range.
"This is not a problem, as most of our fleet customers have very well-planned routes. The vehicles run the same fixed routes every day and fill up at a certain station every day. If a vehicle does run out of fuel, our dealers will send out a service vehicle with a CNG refuelling tank," Venkataraman said. "We actually discourage privaate users from buying the Xenon CNG, because this [refuelling] can be a hassle at times. For private users who are fuel-cost conscious, our 2.2-litre diesel engine is ideal."
The Xenon CNG's limited range and the failure of drivers to read the manual are not the only problems Tata has faced. Another is brand acceptance. Being a new pickup manufacturer in the world's second-largest pickup market means they're playing at being a seal in the company of sharks. The long-standing local operations of Japanese auto-makers have built up a loyal customer base unwilling to try an Indian pickup-maker.
"The Xenon CNG has been a great product for us to penetrate this market. Fleet operators do not want another diesel pickup, as there are enough in the market already. The Xenon CNG cuts fuel costs, and fleet operators can see the benefits of the vehicle. Initially, they always order only one vehicle, but after seeing the benefits they order more," said sales director Abhichet Sitakalin.
Another advantage of the Xenon CNG is its fuel cannot be stolen. Fleet operators say stolen fuel accounts for a major increase in costs. With CNG, extracting the fuel requires equipment costing Bt30,000, and the low cost of CNG makes stealing it not worthwhile.
At present, more than 90 per cent of the vehicles Tata sells in Thailand are for commericla use. At next month's motor expo, the company will launch the Xenon Giant, a dedicated CNG pickup with a large bed and an extended fuel range of 300-400 kilometres. The company hopes the Xenon Giant will lead to a significantly increased market share.
Tata sold a mere 722 units in the first nine months of the year amid claims it was being overly optimistic. It says CNG-fuelled vehicles account for 30 per cent of current sales, and this figure is expected to reach 50 per cent next year with the new Giant entering the market.
Venkataraman said Tata was also monitoring other opportunities in the Thai market
"Although Tata is a major player in the bus and truck market in India - the second-largest bus and truck market in the world-it is unlikely we will enter the Thai market, because of its small size," he said.
Suzuki raises profit forecast
Suzuki Motor Corp quadrupled its annual operating profit forecast yesterday as sales soared in its main Indian market, setting it apart from other Japanese automakers that have depended heavily on the sinking US market.
Suzuki, like South Korean rival Hyundai Motor Co, has been a major beneficiary of a global shift in consumer preference towards smaller cars, partly fanned by government incentives on purchases of less polluting vehicles.
Both firms' huge presence in India,where the economy's resilience and tax incentives have jumpstarted demand for cars, has helped them weather the storm better than most in the industry.
Suzuki,Japan's fourth-biggest automaker, raised its operating profit outlook to 40 billion yen ($445 million)for the year to March, from an initial forecast of 10 billion yen.
It now expects a net profit of 15 billion yen instead of five billion yen.
Consensus forecasts from 16 brokerages put Suzuki's operating profit for the year at 46.6 billion yen, and net profit at 22.8 billion yen.
Earlier, Daihatsu Motor Co, the minivehicle unit of Toyota Motor Corp,and Fuji Heavy Industries Ltd, the maker of Subaru cars, also lifted their full-year forecasts after better-than-anticipated six-month results.
But Suzuki joined other automakers in warning of an uncertain outlook at best for global vehicle demand as more state-backed incentives programmes reach their budget limit and threaten to yank back sales.
"It's doubtful whether these scrappage incentives would switch smoothly into real demand," Suzuki chief executive Osamu Suzuki told a news conference.
Suzuki said he was not optimistic about a global economic recovery in the October-March second half, although Asian markets such as India and China remained a bright spot.
He noted that Suzuki's higher profit forecasts were merely a result of the overshoot in the first six months.
For July-September, Suzuki, known for its Swift and Alto hatchback cars,reported a 7.1% fall in operating profit to 24.98 billion yen from the second quarter last year, as global sales volumes decreased and the yen strengthened against the dollar.
The result was double an estimate of 12.45 billion yen in a poll of three analysts by Thomson Reuters I/B/E/S.
Net profit grew 27% to 10.38 billion yen, while revenue dropped 25% to 604.4 billion yen.
Last week, Suzuki's Indian unit, Maruti Suzuki India, reported a near doubling in its quarterly net profit, also powered by brisk exports to Europe.
Daihatsu, which dominates Japan's 660cc minivehicle segment with Suzuki,now expects an annual operating profit of 26 billion yen instead of 17 billion yen as sale exceed expectations in Indonesia and Malaysia, where it has a big presence.
In July-September, Daihatsu's operating profit fell 35% to 6.13 billion yen.Net profit sank 41% to 3.25 billion yen.
Fuji Heavy Industries Ltd, also owned partly by Toyota, now expects to eke out an annual operating profit of 1 billion yen instead of a 35 billion yen loss previously forecast. Its second-quarter operating profit was 8.24 billion yen, down 31% from a year earlier.
Suzuki, like South Korean rival Hyundai Motor Co, has been a major beneficiary of a global shift in consumer preference towards smaller cars, partly fanned by government incentives on purchases of less polluting vehicles.
Both firms' huge presence in India,where the economy's resilience and tax incentives have jumpstarted demand for cars, has helped them weather the storm better than most in the industry.
Suzuki,Japan's fourth-biggest automaker, raised its operating profit outlook to 40 billion yen ($445 million)for the year to March, from an initial forecast of 10 billion yen.
It now expects a net profit of 15 billion yen instead of five billion yen.
Consensus forecasts from 16 brokerages put Suzuki's operating profit for the year at 46.6 billion yen, and net profit at 22.8 billion yen.
Earlier, Daihatsu Motor Co, the minivehicle unit of Toyota Motor Corp,and Fuji Heavy Industries Ltd, the maker of Subaru cars, also lifted their full-year forecasts after better-than-anticipated six-month results.
But Suzuki joined other automakers in warning of an uncertain outlook at best for global vehicle demand as more state-backed incentives programmes reach their budget limit and threaten to yank back sales.
"It's doubtful whether these scrappage incentives would switch smoothly into real demand," Suzuki chief executive Osamu Suzuki told a news conference.
Suzuki said he was not optimistic about a global economic recovery in the October-March second half, although Asian markets such as India and China remained a bright spot.
He noted that Suzuki's higher profit forecasts were merely a result of the overshoot in the first six months.
For July-September, Suzuki, known for its Swift and Alto hatchback cars,reported a 7.1% fall in operating profit to 24.98 billion yen from the second quarter last year, as global sales volumes decreased and the yen strengthened against the dollar.
The result was double an estimate of 12.45 billion yen in a poll of three analysts by Thomson Reuters I/B/E/S.
Net profit grew 27% to 10.38 billion yen, while revenue dropped 25% to 604.4 billion yen.
Last week, Suzuki's Indian unit, Maruti Suzuki India, reported a near doubling in its quarterly net profit, also powered by brisk exports to Europe.
Daihatsu, which dominates Japan's 660cc minivehicle segment with Suzuki,now expects an annual operating profit of 26 billion yen instead of 17 billion yen as sale exceed expectations in Indonesia and Malaysia, where it has a big presence.
In July-September, Daihatsu's operating profit fell 35% to 6.13 billion yen.Net profit sank 41% to 3.25 billion yen.
Fuji Heavy Industries Ltd, also owned partly by Toyota, now expects to eke out an annual operating profit of 1 billion yen instead of a 35 billion yen loss previously forecast. Its second-quarter operating profit was 8.24 billion yen, down 31% from a year earlier.
Wednesday, October 28, 2009
Buyers sought for Fuso plant
The Japanese truck maker Mitsubishi Fuso is expected to finalise talks with two or three manufacturers next month for the purchase of its plant in Thailand.
Once Mitsubishi Fuso Truck and Bus Corporation (MFTBC) completes the talks, Fuso trucks will continue to be built in Thailand, said a senior official source in the Thai unit of MFTBC.
Daimler AG of Germany announced earlier this year it would shut the Fuso plant in Thailand by the end of this year as part of a revamp of MFTBC. The German carmaker holds an 85% stake in MFTBC and Mitsubishi Corporation the rest.
If talks fail, the source said Mitsubishi Fuso Truck (Thailand) Co (MFTTC), a subsidiary of MFTBC, could import Fuso trucks from Indonesia or Malaysia, two major production bases of MFTBC, to keep the brand alive.
The Indonesian Fuso plant builds more than 40,000 units per year and the Malaysian one 10,000.
The Japanese truck maker pledged to continue doing business in Thailand even if the plant closes.
A potential investor is Tan Chong International, a listed automobile and property group in Hong Kong.
A subsidiary, Tan Chong Machinery Ltd, holds a 100% stake in Nissan Diesel Thailand Co, which is authorised by Volvo of Sweden to produce and distribute Nissan UD trucks in the Thai market. Volvo holds 100% interests in Nissan Diesel Motor Co of Japan, which manufactures and distributes Nissan diesel trucks and buses.
The source said Tan Chong was interested in the Thai Fuso plant because its licence to build and sell Nissan UD trucks would soon expire.
But another source in Nissan Diesel Thailand denied an earlier report that Tan Chong would leave the Nissan UD business since its performance was still healthy despite the recession.
Seiji Akiyama, the president of MFTTC, said the company was approached by many prospective buyers to purchase its plant after it announced it would cease production.
"There are ongoing negotiations with many interested buyers, and there have been talks about production for domestic sales as well as export that would raise the capacity of the plant. But consideration needs to be given to production costs so that it is competitive,"he said.
In the past, the Fuso plant had a capacity of 6,000 units per year, but now it assembles about 2,000 trucks per year for the domestic market.
The plant was originally scheduled to close at the end of this year, but if negotiations bear fruit, production could continue, buoying the confidence of dealers and customers.
The company said Mitsubishi Fuso remained committed to marketing and servicing commercial trucks in Thailand and continued to invest in products and services for the local market. Asean is the largest international sales area for MFTBC.
MFTTC announced earlier this year changes in its business structure intended to improve competitiveness.
A principal change is the integration of Thai production into the overall Asean footprint of MFTBC. This move is to increase overall competitiveness in Thailand by generating further economies of scale. As a result, MFTTC plans to phase out production at Lat Krabang, a suburb of Bangkok, by the end of 2009.
The local production capacity and workforce will be gradually adjusted.About 150 people are currently employed at the Lat Krabang plant, which makes light-, medium- and heavy-duty trucks.
In the first half of this year, Mitsubishi Fuso sales grew by 2% compared to a 19% decline in the truck market. By the end of the year, Mitsubishi Fuso is expected to hold a 10% market share,about the same level as last year.
Once Mitsubishi Fuso Truck and Bus Corporation (MFTBC) completes the talks, Fuso trucks will continue to be built in Thailand, said a senior official source in the Thai unit of MFTBC.
Daimler AG of Germany announced earlier this year it would shut the Fuso plant in Thailand by the end of this year as part of a revamp of MFTBC. The German carmaker holds an 85% stake in MFTBC and Mitsubishi Corporation the rest.
If talks fail, the source said Mitsubishi Fuso Truck (Thailand) Co (MFTTC), a subsidiary of MFTBC, could import Fuso trucks from Indonesia or Malaysia, two major production bases of MFTBC, to keep the brand alive.
The Indonesian Fuso plant builds more than 40,000 units per year and the Malaysian one 10,000.
The Japanese truck maker pledged to continue doing business in Thailand even if the plant closes.
A potential investor is Tan Chong International, a listed automobile and property group in Hong Kong.
A subsidiary, Tan Chong Machinery Ltd, holds a 100% stake in Nissan Diesel Thailand Co, which is authorised by Volvo of Sweden to produce and distribute Nissan UD trucks in the Thai market. Volvo holds 100% interests in Nissan Diesel Motor Co of Japan, which manufactures and distributes Nissan diesel trucks and buses.
The source said Tan Chong was interested in the Thai Fuso plant because its licence to build and sell Nissan UD trucks would soon expire.
But another source in Nissan Diesel Thailand denied an earlier report that Tan Chong would leave the Nissan UD business since its performance was still healthy despite the recession.
Seiji Akiyama, the president of MFTTC, said the company was approached by many prospective buyers to purchase its plant after it announced it would cease production.
"There are ongoing negotiations with many interested buyers, and there have been talks about production for domestic sales as well as export that would raise the capacity of the plant. But consideration needs to be given to production costs so that it is competitive,"he said.
In the past, the Fuso plant had a capacity of 6,000 units per year, but now it assembles about 2,000 trucks per year for the domestic market.
The plant was originally scheduled to close at the end of this year, but if negotiations bear fruit, production could continue, buoying the confidence of dealers and customers.
The company said Mitsubishi Fuso remained committed to marketing and servicing commercial trucks in Thailand and continued to invest in products and services for the local market. Asean is the largest international sales area for MFTBC.
MFTTC announced earlier this year changes in its business structure intended to improve competitiveness.
A principal change is the integration of Thai production into the overall Asean footprint of MFTBC. This move is to increase overall competitiveness in Thailand by generating further economies of scale. As a result, MFTTC plans to phase out production at Lat Krabang, a suburb of Bangkok, by the end of 2009.
The local production capacity and workforce will be gradually adjusted.About 150 people are currently employed at the Lat Krabang plant, which makes light-, medium- and heavy-duty trucks.
In the first half of this year, Mitsubishi Fuso sales grew by 2% compared to a 19% decline in the truck market. By the end of the year, Mitsubishi Fuso is expected to hold a 10% market share,about the same level as last year.
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