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  • Anderson wins auto parts plant

    ANDERSON, Ind. — A city that once was a major hub for General Motors factories will soon have a plant that will make auto parts for Japanese auto-giant Honda. Ohio-based Greenville Technology Inc. will build a 150,000-square-foot facility, to be known as GTI Anderson, at the Flagship Industrial Park. And it will be a quick turnaround. Construction will begin next week, and the automotive parts manufacturing facility should be in operation by January. It will open with 100 employees and grow to 325 by 2016, according to officials. And it could expand even more, Bill LaFramboise, executive vice president of the Greenville facility, told a crowd of about 75 people who attended a Tuesday morning news conference at the Flagship. GTI will invest $21.4 million to construct and equip the facility on 25 acres on the city’s southwest side.   [View Details]
  • Auto parts makers edgy over Maruti strike

    Auto component makers are uneasy over the strike at Maruti’s Manesar plant. Suppliers are shocked at the violent turn of events at the country’s largest car-maker and say they have no option but to “wait and watch”. Last year, when production was stopped at Manesar due to the workers’ strike, many suppliers got hit, said a South-based component maker who did not wish to be named owing to the “sensitivity” of the issue. “The component industry hopes there is no repeat of last year,” he said. Companies such as Wheels India and Rane are big suppliers to Maruti. Rane group company, Rane NSK Steering Systems, has an electric steering plant in Bawal, Haryana which supplies primarily to Maruti. Last year, when the Maruti workers had gone on strike in Manesar, this ancillary’s business and production was hit. Wheels India too has an exclusive plant in Haryana for Maruti. While supply to the Manesar plant has stopped, it continues to supply to Maruti’s plant in Gurgaon. Mr Srivats Ram, Managing Director, Wheels India hopes the situation is sorted out amicably. Mr Abdul Majeed, Auto Practice Leader, PricewaterhouseCoopers, says when there are disturbances at the vehicle makers’ end, it has a cascading effect on the supply chain. “If the issue is sorted out in a few days, suppliers can tide over the problem. But if the issue drags on for weeks or months, then the supply chain will be impacted. Inventories will pile up and raw material will be stuck with component suppliers.” [View Details]
  • Auto sector for consultation over new investment

    The auto sector of the country has requested the federal information minister to ensure consultation with the sector about new entrant policy before making any final recommendations to the ECC. Director General Pakistan Automotive Manufacturers Association (PAMA) Abdul Waheed Khan and Chairman Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM) Syed Nabeel Hashmi made this request in a letter to Federal Minister Ministry of Information & Broadcasting Qamar-uz- Zaman Kaira. The Federal Minister for Information is heading a sub committee constituted by the Economic Coordination Committee of the Federal Cabinet to evaluate the proposal by Ministry of Commerce to allow new investment with additional incentives over the existing tariffs and regulations. They said that unfortunately the voice of auto industry, which is the major stakeholder in this issue, has totally been ignored in government’s policy of extending tariff concessions to new entrants. “Both these organizations are the only officially recognized representatives of [View Details]
  • Honda Cars reports higher losses

    Honda Atlas Cars Pakistan Ltd has reported a higher loss after tax of Rs 221.025 million for the quarter ending June 30, 2012. According to financial results of the company despatched to Karachi Stock Exchange here Tuesday, the pre-tax loss also soared to Rs 249.534 million for the period under review as loss per share also went up to Rs 1.55 against Rs 0.36 in 2011. [View Details]
  • Local auto parts industry suffer losses due to import of used cars

    LAHORE: The local production of cars has registered a massive reduction of 22,000-25,000 units owing to import of 50,000 used cars in one year, besides hurting the domestic auto parts vending industry to the tune of Rs 27 billion. The domestic auto parts manufacturers are feeling the brunt of this trend as the demand for locally produced vehicles has slowed down, which is evident from the fact that size of local market has shrunk to currently 30 percent from its peak level of the year 2007 when some 200,000 vehicles were produced, according to Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM). The domestic industry has tremendously developed during last few years mainly by investing huge capital but also with the help of agreements with world renowned equipment makers for technology transfer, which include hundreds of components such as bumpers, radiators, mufflers, batteries, tyres, wheels, air-conditioners, wiring harnesses, instrument panels, steering wheels, sun-visors, seats, carpets, interior panels, sheet metal and plastic parts. All of this is being locally produced by more than 400 vending companies that entail almost 2.2 million skilled workers directly and indirectly. The Association's Chairman Syed Nabeel Hashmi told APP here Sunday that precious foreign exchange is being wasted on import of spare parts for these used vehicles, which would also cause a loss to the exchequer to the tune of $50 million per year. While, the Federal Board of Revenue (FBR) has not revised the duty structure on import of used cars for the last six years, as the taxes paid at import stage are fixed in US dollar which were determined in 2006. The influx of used cars in the country has been taking a heavy toll on local auto  assemblers who purchase 60 percent of the auto parts from domestic manufacturers, he added. Hundreds of components such as wheel rims, tyres, batteries, radiators, mufflers, wire harness, instrument panels, steering wheels, air conditioners, sun visors, other sheet metal parts and plastic parts, which are produced by local vendors, are now being imported for these used cars, at the cost precious foreign exchange, he added. Hashmi said that with the high mark-up rate, depreciation in exchange rate and energy crisis, the government must intervene to ensure that local engineering units do not shut down and continue to provide jobs to the skilled and semi skilled labour force. During the last 12 months, almost 50,000 used vehicles have been imported, amounting to 30 percent of the total market demand for automobiles in the country, causing a loss of over Rs 14 billion revenue in terms of relaxations allowed pertaining to depreciation allowance, he said. It is strange that most of the imported cars of 1000cc (or higher) such as Vitz, Corolla, Belta, Premio, Axio, Mira, Probox, Land Cruiser and Pajero are being sold in the price range of Rs 1.1 million to Rs 3.5 million, he said. He said, the PAAPAM has also urged Japanese firms to raise local content share in auto parts to cut cost, as the Association termed 2012 a special year for Pakistan-Japan relations. The automobile sector in Pakistan, he said, is completely dominated by Japanese companies and Japan's share in car and truck market is almost 100 percent and it has almost 50 percent share in the motorcycle market, besides having a major share of the market in other vehicles. However, the share of local content needs to be increased, as "We still import almost 50 percent of the automotive parts." There is an opportunity for Japanese investors to fill the remaining half, as it will cut manufacturing costs in Pakistan and enhance profitability of Japanese investors, he pointed out. [View Details]
  • Auto parts clerk retires after over 50 years filling orders

    working behind the counter in the auto parts department at two Miami County Ford dealerships, Ed Fries of Piqua is retired, or is he? Friday was Ed's 80th birthday, and he also retired from Troy Ford on Friday......will he stay retired? The bets are on. Ed retired from that "parts" job 15 years ago at age 65 from Troy Ford, and soon returned to his old job. He spend 31 years at Troy Ford and 23 years at the former Hardenbrook Ford agency in downtown Piqua. Among the retirement gifts was a frame personal letter from Bill Ford, Jr. the great-grandson of Henry Ford thanking Ed for his years of dedicated service to Ford. Bill Ford  currently services as Executive Chairman of the Ford Motor Co. By the way a car battery sold for $14.95, said Ed, when he first started in the parts department in 1958. Today, said Fries, "that same battery today is $109.oo." [View Details]

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