Fiat sets up central sourcing centre in India
May 8, 2008
Mumbai: Fiat is setting up a group purchasing office in India, the Italian car maker said on Thursday, as part of its strategy to cut costs by buying more components from low-cost centres such as India and China.
Fiat, which has a joint venture with India’s Tata Motors Ltd for manufacture and distribution of cars, engines and commercial vehicles, said the move would help ensure greater competitiveness and better margins.
“We are optimistic on sourcing from emerging economies like India and China,” Gianni Coda, chief executive officer of Fiat Group Purchasing, said in statement.
The Fiat Group Purchasing Office in New Delhi will source components for all sectors, including Fiat automobiles, commercial vehicles and powertrains, he said.
The centre will more than treble staff to 50 people by year-end from 15, he said.
Fiat, which set up a purchasing office in Shanghai last year, had plans to integrate purchase of components from Jan. 1, 2008, and aims to buy 8.5 billion euros ($13 billion) worth of components from “best cost countries” by 2010, it said.
“This is a key step in the direction to achieve the group’s 2007-2010 growth and margin expansion plan,” Coda said.
The Fiat-Tata venture in India will make 200,000 cars in four years at a plant in western India, as well as 300,000 engines and transmissions in the fast-growing market. (Source: Reuters)
Hillary Clinton vows to continue campaign
May 7, 2008
Democratic hopeful Hillary Clinton has vowed to continue her campaign despite losing ground in the latest primary contests and her financial problems.
Hillary Clinton beat rival Barack Obama by just two points in Indiana’s primary, while he won by 14 in North Carolina.
The votes were the final major Democratic primaries which help decide the party’s White House candidate.
Mrs Clinton is also facing a funding crisis - she was forced to loan her campaign $6.4m (£3.3m) last month.
Speaking to reporters, she pledged to remain in the race “until the nominee is chosen”, although she did not reveal whether this meant she would stay in until the party’s nominating convention in August. She also appealed to supporters for more funds to carry on the fight.
PRIMARY RESULTS
North Carolina
Senator Obama 56%
Senator Clinton 42%
Indiana
Senator Clinton 51%
Senator Obama 49%
(Figures from AP)
The two candidates are locked in a drawn-out battle to stand for the Democratic Party against Republican John McCain in November’s presidential election.
With neither likely to win enough pledged delegates to the party conference in August to clinch the nomination, the outcome hangs on the decision of nearly 800 so-called super-delegates - senior party members - who can choose which candidate to back.
The Clinton campaign is hoping that it can still persuade a majority of the remaining undecided super-delegates to back the New York senator.
Mrs Clinton met some of them on the day after her North Carolina defeat in an effort to shore up her support.
So far she has received endorsements from 271 superdelegates, to Mr Obama’s 256, with 270 still undecided, according to the Associated Press.
Many super-delegates say they will vote for the candidate chosen in the primary of their home state.
But the campaign suffered a setback when former senator and 1972 Democratic presidential candidate George McGovern announced that he was switching his support from Mrs Clinton to Mr Obama.
Mr McGovern, who is not a super-delegate and will therefore not have a vote at the party’s nominating convention, also called on Mrs Clinton to withdraw from the race.
Her team are also still arguing that the delegates from Michigan and Florida - barred by party chiefs from attending the convention after the states broke party rules by holding their contests early - should be allowed to take their seats at the convention after all.
Mrs Clinton did well in the disputed contests, and would benefit if the party opted to overturn its earlier ruling.
Mr Obama is leading the race in delegates who will choose the presidential nominee by 1,840 to 1,684, according to the Associated Press news agency.
Race split
Speaking to a raucous rally in Raleigh, North Carolina, on Tuesday night, Mr Obama said: “Tonight we stand less than 200 delegates away from securing the Democratic nomination for president of the United States.”
Analysts said Mr Obama’s win was vital after a recent difficult campaign stretch.
He has been dogged by controversy over his gaffe that small-town residents were “bitter”, and racially charged comments by his former pastor, Reverend Jeremiah Wright.
A win in Indiana was seen as critical for Mrs Clinton to stay in the race to stand against Republican John McCain in November’s presidential vote.
At her election gathering in the Indiana state capital, Indianapolis, she told cheering supporters it was “full speed on to the White House”.
But despite her defiant words, Mrs Clinton seems to have lost some of her trademark fighting spirit, says BBC Washington correspondent Jonathan Beale.
The rivals, courting voters suffering from an ailing economy, spent recent days sparring over Mrs Clinton’s proposal to suspend the federal petrol tax for the summer.
Mid-western Indiana is home to large numbers of blue-collar workers, a bloc which has backed Mrs Clinton in previous contests.
According to exit polls conducted for AP, about two-thirds of white voters in both states who had not completed a college education supported Mrs Clinton.
In North Carolina, Mr Obama won the backing of 90% of the state’s African-American voters, who make up more than a third of the state’s electorate.
Mrs Clinton won 58% of non-black voters in the state, according to the polls.
There are just six primary contests left: West Virginia, Oregon, Kentucky, Puerto Rico, Montana and South Dakota.
The Republicans also held primaries in Indiana and North Carolina on Tuesday, but the votes were largely symbolic as Senator John McCain has effectively secured the nomination. (Source: BBC News)
Steel Producers’ Delegation meets PM
May 7, 2008
New Delhi: The CEOs of major steel producing companies, namely, Steel Authority of India Limited, Tata Steel, RINL, JSW, Essar Steel, Ispat Industries Ltd. and representative of Jindal Steel & Power Limited met the Prime Minister, Dr. Manmohan Singh on Wednesday. These companies produce over 60% of the total steel production in the country.
They shared the Government’s concern regarding the inflationary situation in the country and in accordance with the Prime Minister’s advice to contain prices, decided to take the following measures, with immediate effect:
Prices of Flat products are reduced by Rs. 4000 per tonne by producers who effected price increase in April ‘08.In addition, prices of rebars and structurals where no increase was effected in April / May’08 are also reduced by Rs 2000 per tonne.
These reductions will be applicable for all steel that gets consumed in India either directly or after further processing.
Further, the Steel Producers will hold these prices for the next three months.
They put forward the following proposals for favourable consideration by the Government:
In view of the roll back in prices and self-restratnt by producers on steel exports, Government should not impose duty on export of steel products.
In order to facilitate investment in steel sector and to augment capacities in the country, which is the long term solution, the allocation and renewal of iron ore and coal mines, should be ensured on priority. Allotted natural gas should be made available and the legal environmental and forestry clearance issues be resolved by setting up an Empowered Committee, if required.
An ad valorem duty of 15-25% FOB be imposed on export of iron ore in order to conserve the mineral as China is doing in respect of coke in which case 25% ad valorem export duty has been levied.
Appropriate reduction in excise duty on steel be considered which will be passed on to the consumer.
NMDC, MOIL and Coal India Limited should reduce prices of their products, which are inputs for the steel industry and the PSUs should give priority to domestic steel producers for supply of inputs before undertaking exports and should, charge long-term international prices .
Auction of manganese ore and iron ore by MOIL and NMDC, is attracting speculative prices in the domestic market, should be stopped.
Railway freight on steel making raw materials and on steel products should be maintained at current levels/classification.
The Prime Minister appreciated the gesture of the steel industry in reducing the prices and assured them of expeditious examination of their proposals.