May raise inventories to mitigate the effects of its US suppliers' fall.
Toyota Motor Corp and Honda Motor Co, Japan’s two largest carmakers, may modify their so-called ‘just-in-time’ manufacturing system to avoid possible supplier bankruptcies disrupting production.
General Motors Corp and Chrysler LLC are battling to restructure after winning $13.4 billion in emergency federal loans to keep them operating through March. Detroit’s woes could lead to a “supplier shock,” crippling US production at Japanese and other foreign carmakers, according to the Center for Automotive Research.
“We continue contingency planning” even after the bailout, Mike Goss, a spokesman for Toyota’s North American manufacturing unit in Erlanger, Kentucky, said by email. “We hope the loans provided to Detroit will also help to stabilise suppliers, but the very slow market remains a concern for all.”
The Japanese company may work with more partsmakers and increase inventories to mitigate the effects of a collapse among its US suppliers, at least half of whom also work for Detroit automakers, Goss said. US vehicle sales at a 26-year low have forced GM and Chrysler to seek government aid and left as many as a third of North American component-makers at risk of bankruptcy, according to consulting company Grant Thornton LLP.
“Partsmakers may have escaped bankruptcy filings for the next few months, but six months, a year from now, the risk is definitely still there,” said Takeshi Miyao, a Tokyo-based supply chain analyst at automotive consulting company CSM Worldwide.
1938 Adoption: Toyota fell 1 per cent to 2,905 yen at the 11 am close of Tokyo Stock Exchange trading. It has fallen 52 per cent this year.
Plunging demand in the US, the world’s biggest auto market, contributed to Toyota on December 22 forecasting its first operating loss since 1938. That was the same year the carmaker fully adopted the “just-in-time” model, according to its website. Under the system, companies avoid stocking inventories, preferring to take delivery of components as they are needed, to cut expenses.
Wednesday, December 31, 2008
Monday, December 22, 2008
India Inc's dream run turning sour in UK
Indian companies' dream of turning global by going on an unprecedented acquisition spree in the UK this year seems to have soured after they were severely hit by the global financial crisis and steep fall in steel and auto demand.
The Indian acquisition trend, as the take-overs are labelled by the British stock market, was pioneered by the Tata's take over of British-based global companies Corus Steel and prestigious Jaguar and Land Rover.
It sparked off a serious look out by other companies to acquire strategically placed British firms as India emerged among the first five largest investors in British companies and equities.
The Indian companies' global interest in the British market ranged from auto, steel to companies involved in stock brokering and financial firms, according to Geneva based United Nations Conference on Trade and Development (UNCTAD).
But, the global meltdown and the November 26 terror attacks on Mumbai, the financial capital of India, had a chilling effect on the steady growth of trade and joint ventures between UK and India in 2008.
The global meltdown has forced the Tata group to seek a billion-pound bailout loan from the British government, just nine months after they bought the luxury car marque.
The plea by the group came as a surprise to the British authorities, who expected the Tata group to have deep pockets to ride over the financial crisis.
Tata paid $2.3 billion for JLR and financed the acquisition with a $3 billion bridging loan. Since then sales of new cars have plunged which has caused big problems with the cash flow needed to service debt payments.
It came at a time when Tata — one of India's most successful companies — also faced financial crunch in their other ventures. It paid $11 billion 22 months ago for steelmaker Corus and since then the metal price has collapsed.
Added to that is the terrorists attack on the Taj Mahal Hotel which could have a long-term impact.
Things are turning tight for Tatas is evident from the fact that the British authorities are dithering over the loan and now according to British media, Tatas are injecting "tens of millions of pounds" into the British car company to prevent an immediate cash flow crisis.
The meltdown and the recession in most of the West European countries has put a temporary stop on moves by other Indian companies to enter the British market.
But, Britain still remains the most favoured choice of the Indian investors for foreign acquisition, as British and European companies are busy shifting service operations abroad to escape high administrative and management costs.
But, a silver lining in the Indo-UK relations emerged with a surprise year-end visit by Prime Minister Gordon Brown, aftermath the Mumbai terror strikes where he made it clear that London would stand by New Delhi in this hour of crisis and trade relations between the two countries would not be allowed to be impeded.
The Indian acquisition trend, as the take-overs are labelled by the British stock market, was pioneered by the Tata's take over of British-based global companies Corus Steel and prestigious Jaguar and Land Rover.
It sparked off a serious look out by other companies to acquire strategically placed British firms as India emerged among the first five largest investors in British companies and equities.
The Indian companies' global interest in the British market ranged from auto, steel to companies involved in stock brokering and financial firms, according to Geneva based United Nations Conference on Trade and Development (UNCTAD).
But, the global meltdown and the November 26 terror attacks on Mumbai, the financial capital of India, had a chilling effect on the steady growth of trade and joint ventures between UK and India in 2008.
The global meltdown has forced the Tata group to seek a billion-pound bailout loan from the British government, just nine months after they bought the luxury car marque.
The plea by the group came as a surprise to the British authorities, who expected the Tata group to have deep pockets to ride over the financial crisis.
Tata paid $2.3 billion for JLR and financed the acquisition with a $3 billion bridging loan. Since then sales of new cars have plunged which has caused big problems with the cash flow needed to service debt payments.
It came at a time when Tata — one of India's most successful companies — also faced financial crunch in their other ventures. It paid $11 billion 22 months ago for steelmaker Corus and since then the metal price has collapsed.
Added to that is the terrorists attack on the Taj Mahal Hotel which could have a long-term impact.
Things are turning tight for Tatas is evident from the fact that the British authorities are dithering over the loan and now according to British media, Tatas are injecting "tens of millions of pounds" into the British car company to prevent an immediate cash flow crisis.
The meltdown and the recession in most of the West European countries has put a temporary stop on moves by other Indian companies to enter the British market.
But, Britain still remains the most favoured choice of the Indian investors for foreign acquisition, as British and European companies are busy shifting service operations abroad to escape high administrative and management costs.
But, a silver lining in the Indo-UK relations emerged with a surprise year-end visit by Prime Minister Gordon Brown, aftermath the Mumbai terror strikes where he made it clear that London would stand by New Delhi in this hour of crisis and trade relations between the two countries would not be allowed to be impeded.
Toyota expects first operating loss in history
Japan's top automaker Toyota today said it faced an "unprecedented" operating loss of $1.69 billion for fiscal 2008, the first such loss in the company's history, due to dwindling global auto sales and a surging yen.
The latest projection of an operating loss of 150 billion yen ($1.69 billion) in its second downward revision for the year to March 2009 represents a reversal from the previous estimate of an operating profit of 600 billion yen for the year through next March.
Toyota Motor Corp booked a record operating profit of 2.27 trillion yen in the previous fiscal year.
"We are facing unprecedented emergency circumstances," Toyota President Katsuaki Watanabe said at a press conference.
Toyota said it is expecting a net profit of 50 billion yen ($555 million) for the business year through next March, down 90.9 per cent from a previous estimate of 550 billion yen made in November and compared with a net profit of 1.72 trillion yen the year before.
"The change that has hit the world economy is of a critical scale that comes once in a hundred years," Watanabe said, adding that the drop in vehicle sales over the last month was "far faster, wider and deeper than expected."
It also revised downward its group global automobile sales target for calendar 2008 by 540,000 units from the previous estimate in July to 8.96 million units due to slowing demand amid worsening economic conditions, Kyodo news agency reported.
The revised sales target will be 4.4 per cent lower than the previous year when it sold 9.37 million vehicles worldwide, including those of two subsidiaries -- compact car maker Daihatsu Motor and truck maker Hino Motors.
The latest projection of an operating loss of 150 billion yen ($1.69 billion) in its second downward revision for the year to March 2009 represents a reversal from the previous estimate of an operating profit of 600 billion yen for the year through next March.
Toyota Motor Corp booked a record operating profit of 2.27 trillion yen in the previous fiscal year.
"We are facing unprecedented emergency circumstances," Toyota President Katsuaki Watanabe said at a press conference.
Toyota said it is expecting a net profit of 50 billion yen ($555 million) for the business year through next March, down 90.9 per cent from a previous estimate of 550 billion yen made in November and compared with a net profit of 1.72 trillion yen the year before.
"The change that has hit the world economy is of a critical scale that comes once in a hundred years," Watanabe said, adding that the drop in vehicle sales over the last month was "far faster, wider and deeper than expected."
It also revised downward its group global automobile sales target for calendar 2008 by 540,000 units from the previous estimate in July to 8.96 million units due to slowing demand amid worsening economic conditions, Kyodo news agency reported.
The revised sales target will be 4.4 per cent lower than the previous year when it sold 9.37 million vehicles worldwide, including those of two subsidiaries -- compact car maker Daihatsu Motor and truck maker Hino Motors.
Saturday, December 13, 2008
More mobile phone makers back Google's Android
Fourteen of the world's largest mobile phone and chip makers, including Sony Ericsson, Vodafone Group Plc and ARM Holdings Plc ,
joined the Open Handset Alliance on Tuesday to support the Android mobile device platform developed by Google Inc.
The new members' pledge to back the Android software is a significant feat for Google in the mobile phone industry, as its T-Mobile G1 phone takes on rival Apple Inc's popular iPhone 3G.
But despite the big-name additions to the Open Handset Alliance, analysts say what matters is whether the new members introduce more Android-supported smartphones in 2009 and 2010 to edge out competitors who also use open-source Linux software for mobile phones, such as Nokia-owned smartphone software maker Symbian.
"It's great to get these folks on board now (the Open Handset Alliance) has to make sure these licenses actually ship products," said research firm Jupitermedia's vice president of mobile strategy, Michael Gartenberg.
The first company set to introduce a mobile device that uses the Android operating system is Sony Ericsson, a joint venture of Japan's Sony Corp and Sweden's Ericsson. The company said on Tuesday it plans to introduce the Android-supported mobile phone in mid-2009.
"Android is set to become a significant application framework for mobile phones," Ericsson's head of mobile platforms, Robert Puskaric, said in a statement.
The Open Handset Alliance said on Tuesday that each of its members commits to developing applications and services for mobile phones and handsets using the Android platform or designing Android-compatible mobile devices.
Taiwan's Asustek Computer Inc, Toshiba Corp and Garmin Ltd also pledged their support, bringing the total number of companies in the Open Handset Alliance to 47, the Alliance said. These companies join earlier members of the Alliance, such as the world's biggest chip maker Intel Corp and mobile phone makers Motorola Inc and Samsung Electronics Co Ltd. Continued...
Both Google and Apple have wooed developers to create applications for their mobile devices, but Apple keeps a tight grip on the iPhone's hardware and operating software. Google's Android is open to being changed by outside developers.
The addition of new members to the Open Handset Alliance gives Google-developed Android more heft in the battle over who will dominate the mobile phone software market in coming years. Android's biggest competitor is Symbian, which controls half of the market and was acquired by Nokia, the world's biggest mobile phone maker, earlier this month.
Nokia contributes Symbian's assets to a not-for-profit organization similar to the Open Handset Alliance, the Symbian Foundation. Members of the Symbian Foundation have royalty-free access to Symbian's software.
So far, 59 companies have said they plan to join the Symbian Foundation, including Japan's third-largest wireless carrier, Softbank. Android also competes with Microsoft's Windows Mobile operating system, which has been gaining ground.
With a range of companies jumping into the Alliance, such as portable navigation device maker Garmin Ltd, Android has the potential to be featured on devices other than mobile phones. Each mobile phone maker also can modify the Android open source software, which leaves the opportunity open for many future mobile phones.
"What's fascinating about Android is it's this malleable thing. As these phones come out from other carriers it looks and operates differently," said Greg Sterling, a Web analyst with Sterling Market Intelligence. He added, "It seems more people will jump on the bandwagon."
joined the Open Handset Alliance on Tuesday to support the Android mobile device platform developed by Google Inc.
The new members' pledge to back the Android software is a significant feat for Google in the mobile phone industry, as its T-Mobile G1 phone takes on rival Apple Inc's popular iPhone 3G.
But despite the big-name additions to the Open Handset Alliance, analysts say what matters is whether the new members introduce more Android-supported smartphones in 2009 and 2010 to edge out competitors who also use open-source Linux software for mobile phones, such as Nokia-owned smartphone software maker Symbian.
"It's great to get these folks on board now (the Open Handset Alliance) has to make sure these licenses actually ship products," said research firm Jupitermedia's vice president of mobile strategy, Michael Gartenberg.
The first company set to introduce a mobile device that uses the Android operating system is Sony Ericsson, a joint venture of Japan's Sony Corp and Sweden's Ericsson. The company said on Tuesday it plans to introduce the Android-supported mobile phone in mid-2009.
"Android is set to become a significant application framework for mobile phones," Ericsson's head of mobile platforms, Robert Puskaric, said in a statement.
The Open Handset Alliance said on Tuesday that each of its members commits to developing applications and services for mobile phones and handsets using the Android platform or designing Android-compatible mobile devices.
Taiwan's Asustek Computer Inc, Toshiba Corp and Garmin Ltd also pledged their support, bringing the total number of companies in the Open Handset Alliance to 47, the Alliance said. These companies join earlier members of the Alliance, such as the world's biggest chip maker Intel Corp and mobile phone makers Motorola Inc and Samsung Electronics Co Ltd. Continued...
Both Google and Apple have wooed developers to create applications for their mobile devices, but Apple keeps a tight grip on the iPhone's hardware and operating software. Google's Android is open to being changed by outside developers.
The addition of new members to the Open Handset Alliance gives Google-developed Android more heft in the battle over who will dominate the mobile phone software market in coming years. Android's biggest competitor is Symbian, which controls half of the market and was acquired by Nokia, the world's biggest mobile phone maker, earlier this month.
Nokia contributes Symbian's assets to a not-for-profit organization similar to the Open Handset Alliance, the Symbian Foundation. Members of the Symbian Foundation have royalty-free access to Symbian's software.
So far, 59 companies have said they plan to join the Symbian Foundation, including Japan's third-largest wireless carrier, Softbank. Android also competes with Microsoft's Windows Mobile operating system, which has been gaining ground.
With a range of companies jumping into the Alliance, such as portable navigation device maker Garmin Ltd, Android has the potential to be featured on devices other than mobile phones. Each mobile phone maker also can modify the Android open source software, which leaves the opportunity open for many future mobile phones.
"What's fascinating about Android is it's this malleable thing. As these phones come out from other carriers it looks and operates differently," said Greg Sterling, a Web analyst with Sterling Market Intelligence. He added, "It seems more people will jump on the bandwagon."
Lay-off watch: At least one job ticked off every 10 second
Nicolas Cage took just a minute to vanish away with one car in the 2000 Hollywood blockbuster 'Gone in 60 Seconds', but the jobs
seem
Jobs
India 2nd best in hiring intentions
Cos hiring
to be disappearing at a faster rate, with companies laying off at least one employee every 10 second to cut costs and fight the economic crisis.
So far in December, companies across the world have announced at least 1.15 lakh job cuts -- a figure which translates into an average of more than 8,200 people being laid off a day or about six every one minute (60 seconds).
In reel scenes, the plot might have been thrilling but in real sequences, the story is getting gloomy, with lay-offs happening across diverse sectors -- right from finance to electronics to mining, to name a few.
While the financial crisis cost more than 30,000 jobs in the first week of December, the number nearly trebled to touch about 85,000 in the following seven days.
More than one-third of the layoffs happened in the US, which has already seen a stunning 5,33,000 job losses in November alone.
Last week's layoff wave was led by banking firm Bank of America, which announced plans to axe 35,000 jobs in the coming months.
seem
Jobs
India 2nd best in hiring intentions
Cos hiring
to be disappearing at a faster rate, with companies laying off at least one employee every 10 second to cut costs and fight the economic crisis.
So far in December, companies across the world have announced at least 1.15 lakh job cuts -- a figure which translates into an average of more than 8,200 people being laid off a day or about six every one minute (60 seconds).
In reel scenes, the plot might have been thrilling but in real sequences, the story is getting gloomy, with lay-offs happening across diverse sectors -- right from finance to electronics to mining, to name a few.
While the financial crisis cost more than 30,000 jobs in the first week of December, the number nearly trebled to touch about 85,000 in the following seven days.
More than one-third of the layoffs happened in the US, which has already seen a stunning 5,33,000 job losses in November alone.
Last week's layoff wave was led by banking firm Bank of America, which announced plans to axe 35,000 jobs in the coming months.
Subscribe to:
Comments (Atom)
