Business Drive

Euro Motors keeps Fiat Doblo prices down

The European Fiat Doblo is fast making an impression on the Sri Lankan car market as a multi-purpose utility vehicle which could be purchased at a very reasonable price.

The local agents for Fiat, Euro Motors are deliberately slashing their profits and keeping the price down to make this car attractive to the mass market who are relatively unfamiliar with this European vehicle.

“With the Euro shooting up, and import duties rising, we are yet holding on to competitive prices because we want this promotional offer to hit the hearts and minds of Sri Lankans” says, Brand Manager for Fiat in Sri Lanka Chinthani Mendis.

Even in this depressed market scenario, Euro Motors say that their sales have been very encouraging and more and more people are seeing the benefit of purchasing a new European car which has additional advantages to the reconditioned Asian vehicles.

Euro Motors who have been the agents for Fiat for just over a year say that they are very confident that this brand of cars will be dominant in Sri Lanka, just as it was in the 1970s.

The Doblo’s interior is solidly constructed with quality materials and there’s no shortage of space, making the Multi Purpose vehicle the ideal family car.

Passengers are well catered for with twin sliding rear doors and there is seating for five with the possibility of adding two extra seats which can be fitted locally. Both leg and shoulder room are good and there is enough headroom. The cavernous boot of the Doblo provides more luggage space and it comes with two air bags and a rear parking sensor.

Factory fitted alloy wheels which is standard in all Fiat models sold by Euro Motors give buoyancy and style to the vehicle. Euro Motors say that the Doblo has been responsible for more than 50% of their sales this year with more and more Sri Lankans beginning to appreciate its multi tasking features.

The Fiat Doblo also comes with the full service backing of Euro Motors’ state-of-the-art workshop in Peliyagoda which is equipped to handle all service aspects, including lubricant, accident repair, electronic online vehicle examination and computerised wheel balancing apart from general maintenance services.

The Workshop is managed by a team of skilled, well trained, and experienced staff, some of whom have been trained at Fiat headquarters in Italy, to ensure that customers get the best after sales service in Sri Lanka.

Mag City tyre sales to go online

Mag City (Pvt) Ltd introduces etyre.lk, the Sri Lanka’s first on line tyre sales and service system for the active customer

A spokesperson for Mag City (Pvt) Ltd. stated: “this system is very popular in Europe and other countries and we at Mag city has also decided to start this in Sri Lanka.”

“When a customer needs to purchase tyres, he might find it inconvenient to go to a tyre shop, select and buy tyres, instead all he needs to do is log on to etyres.lk and select his tyre requirement by comparing low discounted prices with world renowned brands and tread patterns.

After the customer selects his brand, tread pattern and discounted net price, he can directly place the order and pay on line through his credit card.”

After receiving the tyre order, etyre.lk will endeavour to send the tyres to your home or office within 30 minutes, in a fully equipped vehicle which includes all necessary state-of-the-art equipment that is needed for tyre changing.

etyre.lk will change the tyres with the aid of an automatic tyre changer and do a computerised wheel balancing and fix the tyres to the car on the spot without charging any extra cost for these special services.

Initially etyre.lk will, operate this on line service for customers based in Colombo and its suburbs and hopes to expand this service islandwide by next year. In addition to tyres, customers can buy batteries and request it to be fixed through etyre.lk.

‘Clean Power’ boon to Sri Lankan motorists

Edward Weerasinghe Kelaniya Group Correspondent

‘Clean Power’ a new energy saving device for automobiles, made out of modern material with advanced technology has been introduced to Sri Lanka for the first time. The inventor of this new concept, Chief Executive Officer of Dae Seung

Tech, Co. Ltd, Korea, Kim Daeho, visited Sri Lanka recently, to introduce this new product. Sole agents in Sri Lanka for this product is S.S. Impex (Pvt) Ltd, of Glennie Street, Colombo 2.

Kim Daeho explaining about this product said that the unique energy saver ceramic filter, releases light - heat energy waves fully resolving the finer fuel particles and activating the sympathetic vibration and resonance, resulting in complete fuel combustion with this eco-friendly energy saving device.

Dae Seung Tech Co. Ltd, in Korea invented the unique ceramic filter that has been manufactured through a decade of research and development.

The ceramic ball is compounded of a new material with Nitrite, Oxide, Carbide, and other 20 chemicals radiating light -heat energy waves extracted from a silicate and heated over 1,000 degrees Celsius. The specially alloyed aluminum body of Clean Power is light and solid.

The ceramic filter heated by 1,000 degrees Celsius activates more light - heat energy waves with age and saves fuel energy over any other magnetic fuel saving device. He spoke further to the Daily News Business regarding the benefits of Clean Power.

The horse power of the engine is increased up to 30 % with Clean Power, resulting in a 10% energy saving efficiency and leads to 10 % fuel saving effect. Clean Power reduces toxic exhaust gases reducing automobile emissions of Carbon Monoxide and Hydrocarbon up to 60 %, while reducing noise and vibration.

The use of Clean Power extends the engine oil change interval as the complete combustion prevents automobile engines from accumulating carbon and enables engine oil to be used for twice a long than before.

The Managing Director of S.S. Impex (Pvt) Ltd, sole agents in Sri Lanka for Clean Power, A. Samson C. De Silva said that this will be a great boon to Sri Lankan motorists and motor cyclists because the prices of fuel increase very often in Sri Lanka.

Chevron recognised with safety award

For the first time in company history, Chevron Corporation has been awarded the U.S. Minerals Management Service’s (MMS) national Safety Award For Excellence (SAFE) - one of the highest honours in the industry for safe, clean and compliant operations.

The SAFE award recognises companies who display the most exemplary performance throughout the nation, taking into consideration a company’s performance in each of their respective Outer Continental Shelf districts where operations are held.

The Gulf of Mexico business unit of Chevron was also recognised as the Lake Charles District award winner and the Houma District award winner for the South Timbalier Production Group. Criteria for the awards include safety and environmental performance and compliance with all regulations.

The ceremony, held in Houston recently, was attended by more than 40 Chevron employees representing the operations, drilling and construction groups who earned this award. The award was accepted on Chevron’s behalf by the vice president for the Gulf of Mexico business unit of Chevron Corporation Melody Meyer.

“This is the premier recognition in our industry meaning that we are most admired for our safety, environmental, and compliance performance,” said Meyer. “This is a tremendous honour that exemplifies our Chevron Way values and recognises the outstanding performance of our employees and business partners who work with us in the Gulf of Mexico.”

Chevron was one of four finalists in the High Activity category for Outer Continental Shelf operations. Other finalists included Anadarko Petroleum Corporation, El Paso Corporation and Shell Exploration and Production Co. Chevron was honoured as a finalist for this award in both 2004 and 2005.

A company that qualifies under the ‘High Activity’ category must produce at least 10 MMBOE per year and operate a minimum of 1,000 in-service components during the year.

In 2007, the Gulf of Mexico business unit produced 78 MMBOE and operated more than 40,000 in-service components, making Chevron one of the largest producers in this category.

Hyundai Motor earnings may increase in two years

Hyundai Motor Co., South Korea’s largest automaker, may report the biggest increase in profit in at least two years because of demand for the Genesis premium sedan and gains from a weaker won.

First-quarter net income probably surged 83 percent to 561.7 billion won ($565 million) from 307.4 billion won a year earlier, according to the median estimate in a Bloomberg News survey of 11 analysts. Sales likely rose 22 percent to 8.19 trillion won.

Hyundai Chairman Chung Mong Koo boosted vehicle sales 14 percent in the period as the Genesis lured domestic customers from Bayerische Motoren Werke AG and Daimler AG’s Mercedes-Benz. A weaker won also boosted the value of overseas sales and helped Hyundai compete with Toyota Motor Corp. and Honda Motor Co., which are suffering from a strengthening yen.

“Hyundai is enjoying a positive environment after several years of pressure,’’ said Park Chang Suk, who manages about $504 million at NH-CA Asset Management Co. in Seoul. “With the improved competitiveness and favorable currency moves, I expect to see earnings growth for the rest of the year.’’

Hyundai spokesman Jake Jang declined to comment on the earnings estimates. Hyundai sold 442,985 vehicles in the first quarter, according to its Web site. Sales in South Korea, the automaker’s biggest and most profitable market, rose 11 percent to 158,227 led by demand for the Sonata midsize sedan and the Genesis.

Exports from Hyundai’s Korean plants climbed 16 percent to 284,758. The automaker also has factories overseas including in the U.S., India and China.

“Hyundai raised its sales volume, average selling price and factory utilization in the first quarter,’’ Stephen Ahn, an analyst at Woori Investment & Securities Co., wrote in an April 21 report. “I expect the upward momentum to continue into the second quarter and that may lead to a record profit for Hyundai this year.’’

Ahn is one of the 29 analysts tracked by Bloomberg to rate Hyundai as a “buy’’. Seven analysts say “hold’’ and one has a “sell’’ rating.

The automaker fell 1.5 percent to 83,000 won at the close of trading in Seoul. The shares have risen 16 percent this year.

Hyundai’s sales in Latin America, Africa and other emerging markets jumped 29 percent in the first quarter. The won also weakened 5.5 percent against the dollar and 13 percent against the euro in the period, cushioning the impact of lower sales in the U.S. and Europe. The yen gained 12 percent against the dollar.

``The weak won will certainly give Hyundai room to strengthen its marketing spending in the U.S. to better fight Japanese carmakers, even if it doesn’t cut prices immediately,’’ said Cho Soo Hong, an analyst at Hyundai Securities Co., which isn’t affiliated with the carmaker.

Exports accounted for 58 percent of Hyundai’s revenue last year. The weaker won may have boosted its operating margin by 1.4 percentage points in the first quarter, according to Woori. The operating margin is the profit margin from sales minus the cost of sales, administrative and general expenses.

Hyundai’s first-quarter sales in the U.S., the world’s largest auto market, fell 8.5 percent. The overall market dropped 8.1 percent, as rising job insecurity curbed demand. The automaker was the only Asian brand to boost U.S. sales in March.

The weaker won may also enable Kia Motors Corp., South Korea’s second-biggest carmaker, to report a narrower first- quarter loss, even after a drop in car sales.

Kia, of which Chung Mong Koo is also chairman, probably had a loss of 21.1 billion won in the period compared with a 30.6 billion won loss a year earlier, according to the median estimate in a Bloomberg News survey of eight analysts. Sales probably fell 3.8 percent to 3.7 trillion won. Kia spokesman Alex Fedorak declined to comment on the earnings estimates.

Kia’s first-quarter auto sales fell 7.2 percent to 251,631, as customers shunned its aging Opirus sedans in favor of the Genesis. Work on a factory in South Korea also disrupted production of Cereto small cars.

The automaker’s first-quarter domestic sales rose 11 percent, while exports slumped 13 percent, according to its Web site. The company may post an operating profit of 30 billion won, compared with an operating loss of 73.7 billion won a year earlier, according to the survey.

The following is a table showing the median forecast for Hyundai Motor’s first-quarter earnings compared with the actual results from a year earlier. The figures are in billions of won. (Bloomberg)