Archive for March, 2009

Automotive industry survival assurance

A FIRST-HAND assurance that the government was prepared to “go the extra mile” to ensure the survival of the motor industry was given yesterday by a deputy minister during a visit to the Eastern Cape.

But Deputy Trade and Industry Minister Elizabeth Thabethe also stressed that the government was looking at other “distressed” industries – particularly mining – in coming up with rescue plans.

She was speaking on the sidelines of a function at the Eastcape Training Centre in Struandale, where she presented computers to the top three schools as part of the “technogirl” entrepreneurial awards project.

“With regard to the automotive sector, we are on top of the situation and the plans (presented by an industry task team) are being discussed in terms of a cabinet mandate,” Thabethe said.

“We are really trying to assist the sectors in distress in terms of our policies, which are good, but we realise we have to go the extra mile to help at present.”

Thabethe said ideas presented by the task team representing manufacturers, suppliers and dealers were receiving “priority” attention, but declined to be drawn on the outcome or timetable of any intervention.

Meanwhile, it was reported earlier yesterday that the motor industry team, led by the trade and industry department, is considering a three-pronged rescue plan. It includes tax adjustments to stimulate demand for cars, Business Day reported.

The formation of the motor industry team is part of a general initiative undertaken by the National Economic Development and Labour Council (Nedlac) to assist industries severely affected by the economic downturn.

Motor industry players were not prepared to discuss the details of the plan, which is expected to be finalised by month-end, but it is understood that the rescue package will have three components, the newspaper reported.

One is the provision of bridging finance from the Industrial Development Corporation (IDC), with industry sources continuing to stress that the finance would not be a bail-out, but loans that have to be repaid.

The second element of the package would be to tap into existing government skills development programme budgets for on-the-job training to minimise retrenchments. Additional funds from the Unemployment Insurance Fund (UIF) could also be allocated to help workers already retrenched, the newspaper said.

The third component could be incentives to stimulate demand, including so-called scrapping allowances, tax incentives, or temporary rebates for trade-ins to stimulate demand.

The scrapping allowance concept has been advocated particularly by National Association of Automobile Manufacturers (Naamsa) president David Powels, who is managing director of Volkswagen in Uitenhage.

In the latest figures provided by industry suppliers, National Association of Automotive Component and Allied Manufacturers director Roger Pitot said at the weekend that component production was down 35% from last year.

This had resulted in 8000 jobs having been lost in the supply sector, he said.

Sourced via weekendpost.co.za

Worlds Cheapest Car-Tata Nano Launched in Mumbai

MUMBAI — Amid camera flashes and the occasional shoving match between photographers, specifications and on-sale dates for the highly anticipated Tata Nano were finally announced at two elaborate media events here on Monday.

“We have made a promise and we have kept that promise,” Ratan Tata, chairman of the Tata Group, said during the first press gathering, held in the Taj Hotel.

The promise Mr. Tata was referring to was his ambitious goal to build a car with a starting price of only 100,000 Indian rupees ($2,000). While the Nano does meet its highly aggressive (and what many industry experts once deemed as totally unrealistic) price point, some hurdles remain to be cleared.

The Nano has been nicknamed “The People’s Car” because its starting price will make it accessible to more Indians than any other new car on the market. But the ultra-cheap, ultra-compact Nano comes with no frills. It runs on a 623-cc 2-cylinder engine with about 30 horsepower. Power steering and power brakes are optional on the base model. Airbags, antilock brakes and even a radio aren’t available at all.

The official launch of the tiny four-door car, however, was hardly lacking in pomp and ceremony. And perhaps lost amid the canapés and five-star service of the Taj Hotel (which is owned by the Tata Group and was a target of last year’s terrorist attacks) was the fact that, despite appearances, the Nano isn’t exactly on sale yet.

The first models arrive in dealer showrooms in early April. Application forms to register to buy the car will be accepted from April 9-25. And for the first time in company history, Tata Motors will charge a fee (about $6) to anyone who applies to buy the car.

First deliveries of the Nano to customers will occur in July. This news comes after what has already been more than six months of production delays. Political protests over the company’s land acquisition methods forced Tata to abandon a nearly complete factory built for Nano production in the state of West Bengal. Rather than risk provoking the situation, Tata decided to base Nano production elsewhere.

A new factory is now being built in the western state of Gujarat, though initial demand for the Nano is expected to outstrip supply. The company revealed the Nano “a good nine months before the new plant has come on-stream,” Mr. Tata said. “We have done this to fulfill expectations.”

One of those expectations is that the company would stick to the 100,000 rupee price. The company has done this, sort of. The headline-grabbing price applies to only the base model and is exclusive of all taxes and transportation fees. The cheapest Nano, minus options but with all applicable charges, will cost about $2,230.

Tata Motors has applied for more than three dozen patents relating to the cost-cutting measures it took in producing the Nano. Some of these methods are quickly obvious: there is only one windshield wiper, the dashboard is a single piece of (hard and shiny) plastic, and the tires ride on tiny 12-inch steel rims.

One uncomfortable aspect of the Nano’s cost-cutting regime — and an exceedingly awkward moment during a Q & A session held during the early press event — was the importance of India’s cheap labor. An executive huddle followed a journalist’s query, which lead to another mad scramble among hundreds of photographers eager to capture the situation. Ravi Kant, managing director of Tata Motors, finally stated that the yearly salary of a Nano factory worker is 150,000 rupees – or less than $3,000.

After the elegance of the Taj Hotel’s ballroom, the next stop in the Nano’s Mumbai media launch was a 10 minute drive away, to an even more elaborate outdoor press conference held on the grounds of the Parsi Gymkhana. Journalists, executives, Tata dealers and “financiers” (according to the reserved seating signs) watched as lights flashed, music blared, and three Nanos slowly rolled onto the stage.

The presentation lacked the quiet dignity and humility of Mr. Tata’s earlier speech. Huge video monitors and a 40-foot tall sphere projected images of the Nano, along with a voice-over comparing the car’s introduction to the scaling of Mount Everest, the Tiananmen Square protests of 1989 and Thomas Edison’s invention of the light bulb. It was an over-the-top send off for a car defined by prudence and economy.

Sourced via nytimes.com

Six winter car-care tips

1.) Check your tyre pressure monthly (regardless of the season!). Don’t know how? Read your car’s manual or ask your auto technician.

WHN TIP: Expert Tip – Below Freezing? NO!!!!

Do not check tire pressure if the temperature is below freezing, says the Car Coach and expert mechanic, Lauren Fix. Why? Humidity can cause the air to freeze in the valve stem in the tire which will not allow you to add any additional air. Instead the air will leak out. Have a professional check the pressure for you

2.) Tyre tread controls the grip or friction between your car and the road-without it you can slide around and easily end up in the ditch (or worse-banged into another car), says Aymee Ruiz, a spokesperson with AAA. Ask your auto technician about your tyres and evalute the tread.

WHN TIP: Snow Tyres

Consider a different set of tyres, specifically snow tires, for winter.

3.) Keep operational fluids at a full level (gas, oil, antifreeze, windshield fluid, etc.), says Lauren Fix. Why? Cold temps may cause some parts to overcompensate and work harder than usual – they’ll need the extra fluids to help maintain their usual exertion levels.

4.) Your battery needs to be fully charged for cold-weather starts.

WHN TIP: Ch-Ch-Ch-Changes

If you haven’t replaced your battery in at least five years, have it checked by a professional – it may need to be changed, says Lauren Fix. In winter, a dead battery can lead to a serious situation.

5) Add winter weather items to your car’s emergency kit (snow scraper, shovel, sand, extra antifreeze, jumper cables, tow rope, etc.) – they’ll come in handy if you run into car trouble.

6) Follow your regular car maintenance schedule to keep an eye out for potential problems. Ask your auto technician about specific things to watch out for regarding your car.

Sourced via www.ktnv.com

Drop Stop introduced to promote safety during National Car Care Month

Each April, the automotive industry reminds consumers of the importance of car care and driver safety. According to the Virginia Tech Transportation Institute (VTTI), 80 percent of all crashes and 65 percent of all near-crashes involved the driver looking away from the forward roadway, such as retrieving a cell phone from the gap between the driver seat and console, just prior to (within three seconds) the onset of the event. This statistic is a grave reminder that consumers still have much more to learn and is the reason Drop Stop, LLC developed and is launching Drop Stop, a new car interior safety and convenience accessory designed to guard the gap between the seat and console and help keep drivers eyes on the road.

Two years ago, while driving along the famed Sunset Strip in Los Angeles awaiting a very important phone call, Drop Stop co-founder Marc Newburger had an entrepreneurial “eureka” moment, but not in the way he had intended. Newburger recalls, “I placed my phone on the center console to easily grab it when the call came in. However, when the phone rang, it vibrated and fell down the gap! While frantically trying in vain to jam my hand down and retrieve the phone, I took my eyes off the road and unknowingly pulled the wheel to the right. As I leaned to grab the phone, I jumped the curb, slammed on the brakes, and came within two inches of smashing into a metal pole.”

Surprised that no one had yet invented a car interior accessory that could stop phones, keys, change, food and a host of other personal articles from routinely falling down the seat/console gap, Newburger founded Drop Stop LLC with friend and fellow entrepreneur Jeffrey Simon, and created Drop Stop.

Drop Stop provides a safer, more convenient driving experience. It eliminates the distraction and potential danger that exists when personal articles slip through a vehicle’s seat/console gap, causing the common knee-jerk reaction of taking one’s eyes off the road. Drivers also save valuable time and money with Drop Stop because they no longer have to replace credit cards, licenses, make-up, earphone accessories, and other personal articles thought to be lost, stolen, or damaged.

Drop Stop is easily self-installed in seconds, by wedging the accessory between the seat and center console and aligning Drop Stop’s built in slit over and around the seatbelt catch. Made of a hypoallergenic, polyester fiberfill interior and high-grade, durable and stain resistant neoprene (wetsuit material) casing, Drop Stop is flexible, and is cleaned quickly and easily by wiping it with a damp, soapy cloth. This allows Drop Stop maintains a tight seal and slides effortlessly when the seat is adjusted back and forth.
Sourced via www.search-autoparts.com