Drive

Online auto shop expanding to Australia and US

Anjana SAMARASINGHE

Online automobile shop www.myautodream.com will be expanding its services to Australia and US markets in near future.

One of the co- founders of myautodream.com Indunil Dayaratne told Daily News Business the main objective of developing such a website is to facilitate online advertising of automobile related business through the internet.

"Vehicle sellers could advertise their vehicles using this website and they will have the opportunity to display eight photos of their vehicle and we will be holding one advertisement nearly one month on our website for a low price. Buyers also could make inquiries on vehicles they whish to buy though the website", he said.

Indunil Dayaratne	Darshana Samarakoon Pictures by Saliya Rupasinghe

"Apart from this we will be publishing online advertisements of automobile related businesses such as insurance companies, financial institutes which provide car loans and car accessories dealers and rent a car business operators.

Dayaratne said "This will provide world wide publicity for our customers for lower rates. Now we are planning to expand these services to Australia and US markets as well.

Despite the current economic conditions we have noticed that there is a growth in the second hand car market in Sri Lanka."

The other co-founder of myautodream.com Darshana Samarakoon said "This is a convenient way of advertising automobile related businesses. Our customers could upload all the information and pictures of the product or service they wish to advertise through internet and settle the payments using online secure payment system without visiting us.

Today most customers are busy and they seek more convenient and low cost methods to find buyers for their vehicles."

Talking about other features Samarakoon said this website contains latest national and international automobile industry news which will be useful for the loggers of the website.

"Since the commission of this website there was a good response from the public and we are having nearly 200000 hits per month for the website. We expect to attract more new features for the website in the future. We will use different marketing strategies to promote the website", he said.

Auto industry collapse would crush U.S. economy: Study

In a report released Wednesday, the Center for Automotive Research in Ann Arbor, Mich., outlined what would happen in two separate scenarios if General Motors Corp., Ford Motor Co. and Chrysler LLC were forced to scale back or shut entirely.

If all three Detroit manufacturers were to cease operations, the U.S. economy would lose 2.95 million direct and indirect jobs in the first year. Governments would lose at least US$156.4-billion in taxes over the first three years.

If Detroit cut output and employment by 50 per cent to meet ever-shrinking market share, which would mean contraction by two of the automakers, 2.46 million jobs would be lost initially. Governments would lose US$108-billion in revenue over three years, according to the analysis.

"The circumstances are such that either of these scenarios is possible, and indeed one or the other is probable, within the next 12 months," the non-profit think-tank said.

The report bolsters the case that the government of president-elect Barack Obama needs to act decisively to speed up financial aid to the domestic industry.

Its authors argue the newly-elected government of Prime Minister Stephen Harper will also have to get involved if it wants to preserve Canada's auto sector.

"The cost of a failure on a cash basis is a lot greater than the cost of keeping these guys in the game," CAR chairman David Cole said in an interview. "There is a real high sense of urgency in the middle of this. We think that [lawmakers] will recognise that a failure here is something that is just not good in any way shape or form for the economy."

U.S. auto sales have slid to lows not seen in 25 years, contributing to combined losses totalling US$28.6-billion for GM, Ford and Chrysler in the first half of 2008. The Detroit manufacturers have been hit worst as they struggle to add more small cars and fewer big trucks to their lineups and their financing arms scale back loans and leasing to customers. GMAC Financial Services, GM's auto loans unit, on Wednesday reported a third-quarter loss of US$2.5-billion.

GM's U.S. auto volumes dropped 45 per cent in October. The automaker, burning through more than US$1-billion a month, is in talks to buy Chrysler from its owner, Cerberus Capital Management. Analysts estimate the automaker needs US$10-billion to engineer a merger with Chrysler.

Chrysler U.S. sales fell 35 per cent in October. It is "very likely" the company will file for bankruptcy protection if it does not find a buyer or alliance partner, consultants at AutomotiveCompass LLC said in a recent report.

Shares in GM rose as high as 7 per cent in New York trading Wednesday from Tuesday's close, to $6.12, on speculation by investors that Obama's administration would push for an expanded loan programme for carmakers beyond the US$25-billion already earmarked to help them build more fuel-efficient vehicles. Ford stock rose as much as 3 per cent to $2.23 but shares in both companies retreated by the close.

The president-elect said in a speech last month that aid to car manufacturers should be on a "fast track" and that more funding should be given if required.

"What we need is to make sure that a vital industry like autos... which is such a big part of the overall economy, doesn't lead us into a deeper and harsher downturn," John Snow, chairman of Cerberus, told CNBC. "The collapse of the auto industry at this time would be devastating for a new president."

Financial Post

Hyundai Motor begins export of i20 to Europe

India's largest passenger car exporter and second largest car manufacturer achieved yet another milestone in its remarkable decade old journey in India.

First export of i20 to Europe

The all-new i20 which was revealed at the recently held Paris Motor Show in October, 2008 rolled out from HMIL's Sriperumbedur plant for the first batch of export shipment to the European market.

While 'Made in India' Hyundai cars ply in all five continents, Europe has been a popular destination accounting for almost 50 per cent of the company's total exports.

The first consignment of 2,820 units will be shipped to the following countries in Europe: United Kingdom, Germany, Greece, Austria, Croatia, Spain, Belgium, Holland and Hungary.

HMIL reached the first milestone of exporting 100,000 cars in four years and ten months in October 2004.

In October 2005 it exported its 200,000th car followed by its 300,000th car and 400,000th car in October 2006 and August 2007 respectively.

In March, 2008 Hyundai achieved another significant milestone with its cumulative exports crossing the half-million mark and will attain the 700,000th mark in December 2008.

Infibeam

Ford says $500 m India investment; small car plans on track

The Indian unit of the Ford Motor Co. said Wednesday it is proceeding with its plan to invest $500 million and introduce a small car by 2010 despite the global credit crunch and a slowdown in car sales in the South Asian country.

"The Credit crunch and the lack of confidence has affected ... the short-term, " Michael Boneham, president of Ford India Pvt. Ltd. said at a news conference to launch new versions of its Ikon sedan, adding "all plans are on track despite the difficulties."

Ford announced plans in January to invest $500 million in India to expand production capacity and make its first small car in the country. Small cars, or hatchbacks with engine capacities ranging from 0.8-liters to 1.6-liters, comprise over 75% of the more than one million cars sold in the country each year. Apart from the mid-sized entry-level Ikon model, Ford India also sells the Fusion and Fiesta cars, and the Endeavour sports-utility vehicle.

"We expect 2009 to be a tough year for the industry with about a single-digit growth (rate)," Boneham said. He said 2008 has been a year of two halves. Industry sales in the second-half of 2008 have slowed compared with the first half.

Boneham said the company will adjust production in 2009 to match demand as it didn't want to create large inventories, which currently stand at 30 days. "But we expect higher sales in 2010 when we launch our small car due to pent- up demand," Boneham said. Dow Jones

Toyota to roll out its own compact car in India

Japanese car maker Toyota Motor Corporation would roll out a new compact car in India by 2010. The company has the sole ownership of the production of the car, as opposed to the recent rumors that it was a joint venture with Daihatsu Japan's largest minicar maker in which Toyota holds 51 per cent stake.

Hiroshi Nakagawa, Managing Director of Toyota Kirloskar Motor, the Indian arm of the company informed that the compact car project is on track, and the TKM plans to produce 100,000 such vehicles in the first phase and it is proposed be doubled thereafter.

TKM had announced investment of nearly Rs 1400 crore for its second unit at Bidadi near Chennai for which foundation stone was laid in July this year.

However, the official refused to divulge the price of the car and only said that Tata's Nano is a different type of car compared to their line-up.

Infibeam

Amana Takaful Insurance's TOTAL DRIVE pays you back

TOTAL DRIVE - introduced by Amana Takaful Insurance, is today spreading in the market.

"The Takaful concept is not merely a concept of insurance but is actually a globally accepted way of life, based on principles of caring and togetherness," said, Senior Brand Executive for TOTAL DRIVE, Safwan Hilme when asked to comment on the unique concept. "TOTAL DRIVE is the pioneer motor policy in Sri Lanka which rewards customers in addition to offering a No Claim Bonus for safe driving. Our customers gets back part of their premium in the form of SURPLUS REFUNDS in addition to their No Claim Bonus that is wrapped with superior service," Hilme added.

TOTAL DRIVE motor policy is designed to provide flexibility and convenient solutions to all Sri Lankan motorists.

As such, TOTAL DRIVE was the first motor policy in Sri Lanka which offered a No Claim Bonus Protection Cover; assuring a No Claim Bonus at the end of the insurance period even if the policyholder makes a claim. 24/7 customer care to promptly assist the customer resolve product inquiries or claim intimation, roadside assistance with, direct settlement of bills to the agent's garage, a comprehensive hospitalisation cover, free personal accident cover and reimbursement for alternative transport are a few of the many benefits enjoyed by TOTAL DRIVE customers.