Medium and heavy commercial vehi-cle sales are set for a stretched period of

lower growth or even degrowth. Industry players are of the opin-ion that with economic growth rate slowing down and freight rate also softening, medium and heavy commercial vehicle sales are unlikely to pick up in the near to medium term.

“The current slowdown in truck sales had been anticipated as fleet operators are unlikely to add new or used trucks to their existing fleet strength unless there is clear demand for goods transportation. The current downturn in CV sales may be an extended one given the eco-nomic uncertainty in Europe coupled with lower anticipated

GDP growth rate in India, are acting as double whammy for the CV segment,” said Managing Director & Chief Executive Officer, Shriram Transport Finance, Umesh Revankar. He added that barring a major gov-ernment intervention to kick start infrastructure related projects and resumption of min-ing and support activities, there are not many triggers for push-ing up the growth of CV sales at the current juncture.

Overall medium & heavy commercial vehicle sales fell by around 11 percent in April this year to 19,914 units as com-pared to 22,528 units registered in April last year, according to the latest data available from the Society of Indian Automobile Manufacturers (SIAM). In the M&HCV segment, sales of goods carriers fell by around 18 percent to 16,190 units in April as com-

pared to 19,724 units in the same month in the previous year.

Tata Motors was the major loser in the M&HCV segment in the month of April with dispatch-es falling to 8,460 units compared to 12,689 units dispatched in April last year. Light commercial vehicle sales grew by around 15 percent to touch 36,343 units as compared to 31,375 units in the same month last year.

Ashok Leyland’s M&HCV goods carrier sales were relative-ly flat at 3,812 units as compared to 3,701 units in the same month in the previous year. The compa-ny registered a sales turnover of `12,841.99 crore during 2011-12 compared to Rs 11,177.11 crore in the previous fiscal reflecting a rise of 14.9 percent. Net Profit was down by 10.3 percent at `565.98 crore (`631.30 crore). The com-pany sold 101,990 units last fiscal including exports of 12,852 units, a growth of 25 percent.

“Our strongest market was depressed. Also, segments like ICV in which we are not too strong grew substantially. We have, however, rebounded. We gained Market Share in March ’12 and continued the good showing in April and hope to keep up this momentum,” said MD, Ashok Leyland, Vinod Dasari in a company statement.

Auto Monitorwww.amonline.in11 June 2012Vol. 12 No. 16 32 Pages ` 50

I N D I A ’ S N O . 1 M A G A Z I N E F O R A U T O M O T I V E N E W S , V I E W S & A N A LY S I S

Now Turns

Weekly

HeroMotor Corp tapped Ma harishi Solar Technology Pvt Ltd (MSTPL) to install

solar technology to replace use of 90,000 litre per month of diesel, which the two wheeler maker was using for generating heating at the Haridwar plant. The two wheeler manufacturer may not be alone in this endeavour. Demand for green or environment friendly solutions that can also be cost effective, is leading to numerous solar tech-nology based solution providers pitching auto sector companies. MSTPL, funded by the Ministry of New and Renewable Energy (MNRE) for developing silicon in India, and for its pilot plant for parabolic trough is one such solu-tion provider.

The automotive industry uses thermal energy (mainly pro-duced by diesel, electricity and other fossils fuel) at the manu-facturing units to produce heat in the range 120 to 130 degree celsius. The utility includes in applications such as paint shop,

curing or metallic parts which have to be dipped into solutions. Some of the larger companies end up using electrical energy for thermal use. The current pro-cedure for producing heat is not good in terms of environment as well as cost. As the fuel will con-tinue to become more and more expensive as the availability is limited. MSTPL estimates the size of solar technology segment in India to be around `50,000 crore.

The capital cost in installation of solar technology for produc-ing heat is comparatively very high but the there is no spend on fuel which is an attractive feature for the industry. “If a company uses diesel as a fuel to produce heat and it replaces that with the solar technology the difference in the capital cost can be recovered within three year,” CEO, MSTPL, Pradeep Khanna said. The life of a solar system installed to produce heat is around 25 years.

Khanna insists that, the indus-try should not replace diesel or other fuel system with solar sys-tem as the solar system can work around 270 day in a year (six to

eight hours a day) due to weath-er system and other implications. The benefit of the solar technolo-gy is that the government support to the industry. The renewable energy has most effective solu-tion for heat producing. But a major issue with solar based solutions is that it requires space. MSTPL sees huge opportunity in the automotive industry. The sys-tem can produce heat required in automotive manufacturing units for electroplating, paint curing oven among other applications.

The sheet metal components maker is one of the major cus-tomers segment for MSTPL.

The Government also offers major financial support of upto 50 percent in term of cost of the system to the industry, to encourage them for the use of this green method of producing heat. This implies that in a sce-nario where a company installs a solar system worth Rs two crore then ̀ 71 lakh will be given by the government under MNRE solar thermal application subsidy.

CV segment staring at cyclical downturn

Solar tech may provide answer for thermal heating needs at automotive facilities

Our Bureau Mumbai

Nabeel A Khan New Delhi

“OUR PRIORITY IS TO BE SELF SUFFICIENT IN DEVELOPMENT AND APPLICATION ENGINEERING”

INTERVIEW

Pg 8Christoph Hesse, Engineering Director India, Faurecia Technology Center India Pg 10-12

MACHININGFOCUS

NEWS IN BRIEF

Maruti signs land deal with Gujarat government

Maruti Suzuki India Limited (SMIL) recent-ly signed an agreement

with government of Gujarat for purchase of land near Mehsana (around 100 km from Ahmedabad) to set up its new manufacturing facility.

“The Mehsana manufac-turing, around 100 km from Ahmedabad and 300 km from Mundra port, will have initial annual capacity of 250,000 units and will be commissioned by 2015-16 depending on the mar-ket conditions. SMIL will invest around `4,000 crore in the first phase for land and construc-tion of the plant if the board approves,” according to a com-pany official.

Gujarat Government has allocated around 700 acre to MSIL for this facility. This new facility will take Maruti Suzuki’s combined manufac-turing capability to two million units by 2015-16. The compa-ny estimates to generate direct employment for over 2,000 people at the Gujarat facility. In addition to Maruti’s ven-dors and ancillary suppliers are expected to invest in Gujarat at matching levels cre-ating additional employment oppurtunities.

Our Bureau New Delhi

Top 5 3W makers

Company Apr-11 Apr-12 Change

BAL 12,916 12,352 -4.37%

Piaggio 12,868 11,100 -13.74%

M&M 4,411 4,659 5.62%

Atul Auto 1,722 2,182 26.71%

TVS 850 1,002 17.88%

Top 5 3W-Exporters

Company Apr-11 Apr-12 Change

BAL 32,158 26,914 -16.31%

TVS 2,711 1,902 -29.84%

Piaggio 2,125 798 -62.45%

M&M 338 22 -93.49%

Atul Auto 20 50 150.00%

* Source: SIAM/ ** Excluding exports/ *** all sub segments considered/ ^ excluding MRPL

DATA MONITOR

TML was the major loser in the

M&HCV segment in the month of April with dispatches falling to

8,460 units compared to 12,689 units dispatched in April last year

Pradeep Khanna, CEO, MSTPL

T. Murrali t.murrali@infomedia18.in

Spare common man

Diesel has become the talk of the town for some time – either on indications on increasing the price of the fuel or sale of diesel automobiles or shortage of diesel engines. All because of the huge price dif-

ferential between petrol and diesel. At the time of going to the press the government has not made any announcement towards increasing the levy on diesel cars.

The price of petrol is close to double that of diesel and so there is a surge in sales of diesel cars. Therefore, diesel has become the preferred fuel for many motorists not only due to cheaper costs but also better fuel efficiency when com-pared to petrol. Apparently it has increased the ratio of diesel vehicles significantly—from about 30 to 35 percent about 15 months ago to more than 55 percent now. This is a cause of concern for the government as diesel is a heavily subsi-dised commodity. Less than two years ago, the government deregulated petrol prices. And it was supposed to give the oil companies a free hand in pricing petrol according the international crude prices. However, it did not happen since the government is a major shareholder in the three major oil companies—IOC, BPCL and HPCL. The oil companies were expecting deregulation of diesel also when it was done for petrol. The Government also announced earlier that it is going to bite the bullet on subsidies, indicating its initia-tive towards deregulating the fuel. Diesel price cannot be increased since the fuel is used largely by the transportation segment, which is the wheel of the economy. The increase in operating costs will fuel inflation further, terribly affect-ing the common man. Since it is not possible to have dual

pricing for passenger cars and commercial vehicles, the gov-ernment is mulling options to increase the taxes and duties on diesel passenger cars.

The levy on diesel cars and utility vehicles was expected to be announced in this year’s Budget. The auto industry has been opposing this move as it will further affect the sale of cars. As I indicated earlier in one of these columns, increas-ing tax seems to be a better option, since the end user, who is economically better than the common man and slight-ly less affected on account of inflation, can amortise the incremental investments through the savings accrued on the differential in fuel costs and also on the increased fuel economy. Modern diesel engines are less polluting and more fuel efficient than petrol.

Secondly, the government and the industry should look at training the drivers as the trucks and buses driven by skilled drivers will significantly enhance fuel economy. This initia-tive has to be taken at war footing.

Wishing you much pleasure reading. Do send us your feedback.

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Printed by Mohan Gajria and published & edited by Lakshmi Narasimhan on behalf of Infomedia 18 LimitedEditor: T. MurraliPrinted at Infomedia 18 Ltd, Plot no.3, Sector 7, off Sion-Panvel Road, Nerul, Navi Mumbai 400 706, and published at Infomedia 18 Ltd, ‘A’ Wing, Ruby House, J. K. Sawant Marg, Dadar (W), Mumbai - 400 028. AUTO MONITOR is registered with the Registrar of Newspapers of India under No. 67827/98. Views and opinions expressed in this publication are not necessarily those of Infomedia 18 Limited. Infomedia 18 Limited reserves the right to use the information published herein in any manner whatsoever. While every effort has been made to ensure accuracy of the information published in this edition, neither Infomedia 18 Ltd nor any of its employees accept any responsibility for any errors or omission. Further, Infomedia 18 Ltd does not take any responsibility for loss or damage incurred or suffered by any subscriber of this magazine as a result of his/her accepting any invitation/offer published in this edition. No part of this publication may be reproduced in any form without the written permission of the publisher. All rights reserved.

QUOTESMartin Winterkorn, Chairman of the Board, Volkswagen

Dr Pawan Goenka, President, Automotive Sector, Mahindra & Mahindra

“I am convinced that now more than ever, the Volkswagen Group has the right people in the right positions to make our Strategy 2018 a success,”

“Auto majors have always supported the view that diesel prices should go in tandem with the petrol prices but have always been against the proposal to tax diesel vehicles because the move would put their investment plans in jeopardy”

Auto Monitor

EDITORIAL

Car maker need to refine their online presence: Google-Nielson survey 9An offline study conducted by Nielsen on behalf of Google India revealed that one in two car buyers had conducted research online before arriving at the dealership

CX Precision to set up base in Chennai 10CX Precision Mechanical is setting up a manufacturing facility in Sri City in order to enhance its presence in the country

Comau unveils next generation spot welding machine 11Comau recently unveiled a spot welding system that integrates a welding gun with the flange connected directly to the robot without the need for any adapter kit

Better safe than sorry 12As the number of robots increases, so too do their proximity to humans and the associated potential hazards, according to International Federation of Robotics

S&T Motors switches to DSK Group for India innings 13S&T Motors has yet again switched its Indian partner by joining hands with Pune based DSK Group for its ‘Hyosung’ motorcycles

Tata Motors’ Dharwad facility comes on stream 13Tata Motors’ Dharwad plant for small commercial vehicles began production of the Tata Ace Zip and the Tata Magic IRIS

Anand Sharma to chair Manufacturing Industry Promotion Board 16The Government has established Manufacturing Industry Promotion Board for matters pertaining to the implementation of the National Manufacturing Policy headed by Anand Sharma

CONTENTS

THE OTHER SIDE

Visteon expands electronics component facility in China 22Visteon expanded its Yanfeng Visteon Automotive Electronics manufacturing facility in Shanghai, China for automotive electronics

EU may soften stance on CO2 emissions target 26The EU may soften the target by considering ‘infrastructure, driver behaviour and other measures’ when measuring compliance with the 130 g/km target

Warren Harris, President and COO, Tata TechnologiesSince 2005, Harris has managed the worldwide integration of the Tata Technologies and INCAT organisations, establishing Tata Technologies as a global force in engineering services outsourcing

30

Autoliv fined $14.5M in price-fixing conspiracy 20Dutoliv has agreed to plead guilty and pay a $14.5 million fine for its role in a conspiracy to fix prices of seat belts, air bags and steering wheels installed in cars sold in the US

13

CORPORATE

GLOBAL WATCH

MACHINING

12

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811 JUNE 2012

I N T E R V I E W

What are the major areas for research and development for Faurecia and what role is India likely to play?

We have more than 5,000 engi-neers in various areas of research at Faurecia globally. Of these, around 640 engineers & tech-nicians are working in Indian centres located in Pune and Bangalore. The technical centre in Bangalore houses around 70 engineers working on emission control and environment related R&D work. Faurecia’s businesses are broadly divided into emission control technologies, seating sys-tems, automotive interiors and exteriors. Most of our efforts in Pune are directed in the area of interior systems, in addition to few projects on seating systems and auto exteriors as well.

We have already evolved from being an offshore CAE/CAD based outpost in India to a full-fledged research & development centre. Around two years back, we began the effort to restruc-ture our activities to align it with our global R&D structure whereby single functional head could oversee the particular area or function across all R&D

centres globally. This alignment can prove helpful in deriving maximum benefit arising from capabilities of a particular region or centre and share that benefit across the organisation. This also means that we are looking to spe-cialise and emerge as a centre of excellence within the group for a set of systems or activities. The technical centre in Pune, for instance, specialises in door pan-els, glass box and centre consoles for the base version.

How is the R&D process structured in your product or market segment?

We try to be close to locations of our major customer around the world and work closely with OEMs for getting desired results. It becomes challenging at times to meet customer expectations as engineering teams are simul-taneously working on internal projects with longer time hori-zon and customer projects which have well defined time and qual-ity benchmarks. It requires high level of knowledge sharing and discipline within the organisa-tion across levels to be able to perform and deliver to custom-

ers as well as meet organisational objectives or goals.

What has been the expe-rience of technical centres in India thus far?

The technical centres in India have developed expertise in some of the key areas which are critical from organisational per-spective. In the process some of our key engineers have been able to get global exposure in the current and next generation technologies.

What are the challenges of working on a global vehicle plat-form for an OEM?

It is always challenging to working on a global vehicle plat-form for various reasons. There are a variety of such models or platforms to describe a glo-bal platform. There are models which are launched identically across different markets globally and there are other models with major differences across different markets. There are number of cars which are more or less identically launched across different markets globally while there are others which show significant differenc-es in the interiors and exteriors.

There are two issues that are needed to be addressed in such projects. We have to be familiar with regulatory requirements in different markets where a particular model is likely to be launched. We achieve this objec-tive by taking a look at all the markets where a model is likely to be launched and understand the regulatory and other statutory standards that are applicable and

their implications for us as a supplier. Taking this a little further, our techni-cal centre in Pune is involved in every project related to inte-rior systems globally and by extension, this is applicable to every centre of excellence w ithin Faurecia. Another issue is close coordination with customers regarding their plans for a par-ticular platform and its potential market.

How are you contributing to lightweighting efforts of OEMs?

Vehicle lightweighting involves selection of suitable process tech-nologies and choice of materials. We are working on number of ongoing projects with customers globally in this area and we are likely to meet and, in some cases, exceed customer expectations. In our experience, usage of suit-able processes and higher usage of natural material can lead to weight reduction of components and by extension of the vehicle itself. Our major contribution is bringing innovative ideas to the attention of customers based on our experience of working with OEMs globally and knowledge sharing across our organisation.

What are your future plans for India?

We are looking for deeper engagement with OEMs in India. We are witnessing a clear trend of OEMs operating in India want-

ing to offer more aesthetically appealing vehicles to custom-ers in India. This necessarily involves closer interaction with OEM customers throughout the development cycle of a system or vehicle so we can help in the effort to meet OEM’s quality and cost targets. Our objective is to be much more self sufficient in terms of providing solutions like developing tools and processes for customers with minimal or no support from any overseas associates.

The technical centre in Pune, for instance, has global responsi-bility for leading all efforts from Faurecia on glass box develop-ment. We are still looking to develop additional capabilities given the fact that we are oper-ating in a growth market. There are much more opportunities for development and deploy-ment of cost effective solutions in all four businesses that we are present in India compared to many other markets.

“Our priority is to be self sufficient in development and application engineering”Faurecia India is a wholly owned subsidiary of Faurecia Group, a leading automotive supplier. Faurecia Group offers solutions in four product segments: seating, car interiors, car exteriors and emissions control technologies. It entered the Indian market in 1996 with emission control plant. It is headquartered in Pune with two R&D centres for interior, seating & exterior and another centre in Bangalore for Emissions Control. In a conversation with Abhishek Parekh, Engineering Director India, Faurecia Technology Center India Pvt Ltd, Christoph Hesse elaborates on the activities at the technical centre and his priorities ahead.

Auto Monitor

C O R P O R A T E 911 JUNE 2012

Car manufacturers need to refine their online presence: Google-Nielson survey

Internet is playing a major role in inf luencing the decision making of India’s growing number of car buy-

ers. An offline study conducted by Nielsen on behalf of Google India at car showrooms of leading car makers in top eight met-ros revealed that one in two car buyers had conducted research online before arriving at the deal-ership. The survey also revealed that of those who had researched their purchase online, over 50 percent changed their choice of car brands after uncovering new information on the web.

The research was conduct-ed outside the car showrooms of India’s leading OEMs -Maruti, Tata Motors, Ford, Chevrolet, Hyundai, Honda & VW. The survey covered 234 dealerships across eight cities - NCR, Mumbai, Pune, Chennai, Bangalore, Kolkata, Ahmedabad and Kochi. The total sample size of the research was 2,791 respondents of which 93 per-

cent were males, with 75 percent in the age group 25-44. More than 75 percent of these respondents belonged to SEC - A. The research was conducted over two months Jan-Feb 2012.

The survey revealed that 61 percent of the respondents had budget of around six lakh set aside for buying a car. Around 28 percent of the respondents had budget between six to ten lakh while 11 percent were looking for car costing more than Rs 10 lakh. The survey is the first initiative by Google India for any industry specific domain underlining the importance of automotive as a search domain for Google India. Automotive is among the fast-est growing search categories on Google. The search engine is planning to deepen its presence in the automotive segment by ini-tiating online programmes and awareness drive with OEMs and their dealers to help them become more internet savvy. Such initia-tive could include helping OEMs manage search and responses for visitors and even helping dealers offer better options on their web-sites. The Increasing number of searches conducted by potential buyers involved watching videos on the reviews on the Youtube and OEM sites.

The study shed light on how the Internet influences the purchasing decisions of car buyers in India. Respondents reported that they used the web to research and com-pare prices, watch online videos and find images, do competitive analysis, find dealer contacts and read both expert and user reviews.

Most car buyers also rated OEMs website as the important and trustworthy source of informa-tion. Of the 50 percent respondents who went online, 42 percent said they used search engine as the first source of information, just behind the opinions of friends and rela-tives’ (47 percent).

On average, car buyers spend 9-12 weeks researching before arriving at their final decision, and of those who turned to the web for assistance; over 90 percent of shoppers used a search engine to learn more about the cars they were interested in buying.

Over 56 percent car buyers also choose to watch videos online as part of their research, with over 48 percent rating YouTube as the destination and an important source of information.

“This offline study substan-tiates the growing number of auto-related searches we’ve seen on Google search in India. Auto is among the fastest growing verti-cal in terms of query volumes on

Google. Most OEMs have not yet tapped the full potential of the digital medium and we hope this study will help them to under-stand and engage the Indian consumer online,” said Vice President & Managing Director, Google India, Rajan Anandan.

Auto is among the fastest growing vertical on Google, with query volume growth of over 70 percent year on year. In addition, in 2011 mobile queries grew 125 percent YoY; from smartphones, the query volumes were almost double at 242 percent.

Anandan elaborated that for most searched cars, the compa-ny looked at query volumes for 13

weeks around a launch [6 weeks prior to the launch week, 6 weeks after the launch week and the week of the launch].

With search engines emerg-ing as the starting point for online car research, we dug deep into the search query patterns on Google search in India for insights into the minds of consumers across the nation.

In terms of query volume growth: SUVs was the fastest growing car segment growing at (83 percent YoY), followed by pre-mium cars (82 percent), sedans (75 percent), luxury cars (74 per-cent) and hatchback cars were growing at (53 percent Yoyo).

� Hyundai Eon� Mahindra XUV 500� Honda Brio� Tata Manza� Maruti Kizashi� Toyota Liva� Hyundai Verna� Nissan Sunny� Skoda Rapid�� Ford Fiesta

Top 10 most searched new car launches in

2011

Survey revealed over 50 percent of the

respondents who researched for cars online changed their choice of car

brands after uncovering new information

on the web

Our Bureau Mumbai

Rajan Anandan, Vice President & Managing Director, Google India

Auto Monitor

M A C H I N I N G1011 JUNE 2012

CX Precision to set up base in Chennai ABB to acquire Tropos Networks

CX Precision Mechanical (India), a subsidiary of Chunxing Group Company based in

China, is in the process of setting up a manufacturing facility in Sri City, a special economic zone (SEZ) at Tada situated around 80 km North of Chennai on the bor-der of Tamil Nadu and Andhra Pradesh. Chunxing is a leading manufacturer of die castings and other products mainly catering to automotive, telecom, electronics, medical and aviation industries.

General Manager, CX Precision Mechanical, R N Kannan said, “The plant is expected to go on stream this October with con-struction getting over a month earlier. We are now catering to Nokia Siemens Networks and Sanmina-SCI located in Tamil Nadu out of China. With our plant at Sri City we will be sup-plying them locally.”

Since the first phase of the facility has already been estab-lished with an initial investment of `40 crore is expected to com-mence its production from

October this year. This will pro-vide employment to around 300 people and indirect jobs to 500 people.

“Sri City is a great location with favourable government support, availability of labour and conducive business envi-ronment. We are confident that our manufacturing facility in Sri City will enable us to increase our production base and reduce the risk of transportation to meet the local demand,” Kannan added.

Commenting on the future plans, he said in the first phase, the company has invested

around `40 crore. Based on the business, we will decide on fur-ther investments. Our plan is to invest around `100 crore to cater to overseas market out of here in the long term, he added.

Managing Director, Sri City, Ravindra Sannareddy, said that companies from over 22 coun-tries, including Japan and the US, had set up shop at the SEZ. “CX Precision is the second Chinese company to come to Sri City. We have a strong pipeline and we expect to have at least five more companies in the next six months,” he added.

ABB has agreed to acquire Tropos Networks Inc, a Silicon Valley-based company that develops

and markets wireless technolo-gies and products for distribution area communication networks. The acquisition will expand ABB’s communications systems offer-ing for customers in the power, transportation, mining and pub-lic infrastructure sectors. Tropos employs 55 people. The com-pany’s wireless IP (Internet Protocol) broadband solutions focus on reliability, security and scalability, key characteristics for essential services in smart grid and other outdoor industrial applications. The Tropos portfolio extends ABB’s existing offering of communications solutions for the power distribution sector.

As power grids and other critical infrastructure become increasingly rel ia nt on automation, demand for cost-effective, reliable and secure communication solutions is growing. Communications play a critical role in realizing the effi-ciency improvements that can

be achieved by automation and improved resource allocation.

ABB’s comprehensive suite of communication solutions pro-vides a strong foundation for mission-critical networks and is a key enabler for smarter grids. Solutions for fixed-wire, narrow-band, broadband and wireless connections play an important role in ensuring the reliability of modern power systems. The transaction is expected to close in the third quarter of 2012. ABB is a leader in power and auto-mation technologies that enable utility and industry customers to improve performance while low-ering environmental impact. The ABB Group of companies oper-ates in around 100 countries and employs about 145,000 people.

Sasken Communication Technologies Ltd recently entered automotive Infotainment solution segment, opti-mised on the Jacinto platform from

Texas Instruments Incorporated (TI).The com-pany has expanded its area of focus into newer industries like automotive infotainment and consumer electronics. As a part of its solution portfolio for automotive customers, Sasken has developed a rear seat entertainment / info-tainment software package that leverages the Jacinto platform.

The solution is equipped to enable HD play-back of most content found on the Internet, iPod / iPhone / iPad connectivity and playback on multiple screens from a single processor. The solution also allows seamless playback of smartphone content on the system using DLNA. The planned roadmap includes integration with next generation connectivity technolo-gies such as LTE to enable access to content in the cloud, support for encode capability to allow video-conferencing, and other features such as terminal mode, ethernet AVB support and wire-less display support.

TI’s Jacinto automotive infotainment processors fuel top-notch visual computing and entertainment capabilities for driv-ers and passengers. The processors include dedicated 3D graphic accelerators and video co-processors that support advanced HMIs and navigation as well as full 1080p HD video playback and streaming. These platform elements are further complemented by an integrated digital signal processor (DSP) to allow for real-time radio, audio, speech and other applications.

“TI is committed to serving the automo-tive industry with highly innovative and automotive-grade technologies that will help manufacturers differentiate in an increasingly technology-driven marketplace,” said Product Line Manager, Audio and Infotainment, Texas Instruments, Matthew Watson.

“TI’s Jacinto platform was the first option for Sasken when we were in the planning stage. Jacinto has huge traction in the automo-tive world, and its rich feature set enabled by the presence of the IVA-HD, SGX530 GPU and ARM Cortex A8 processors made it an obvi-ous choice,” said Associate VP, Mobility, Auto & Consumer Electronics, Sasken, Srinivas Prasad.

Sasken helps businesses, across the commu-nication & consumer value chain, accelerate product development life cycles.

Sasken offers automotive infotainment solution Our Bureau

Mumbai

Our Bureau Mumbai Our Bureau

Chennai

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M A C H I N I N G 1111 JUNE 2012

“When we deliver spare parts, we think of every detail”

What role does customer services play at Kuka?

It plays a very important role. Customer satisfaction is the number-one priority. That’s why we care for customers long after the actual investment with consul-tation and training as well as with comprehensive spare parts supply.

Customers demand a high availability of spare parts. How does Kuka handle that?

On the one hand, we are avail-

able for our customers 24 hours a day and 7 days a week in most countries. We set the delivery process in motion right away and reduce shipment times thanks to a terrific logistics network. On the other hand, we keep even spare parts for the older genera-tions of robots in stock so as to avoid delays.

How long do you stock spare parts after the sale of a product?

At least ten years from the

time that a model series is phased out and we no longer market the corresponding products. We can, for the most part, however, still deliver spare parts well after this ten-year period.

Does Kuka only supply new spare parts?

No, we supply most electric and mechanical components through an exchange and repair service. This means that defec-tive components are not repaired at the customer’s location, but rather at the Kuka Repair Centre. The defective part is replaced with one that has been com-pletely overhauled and is as good as new in order to minimize downtime. That saves time and money since the exchange and repair service costs considerably less than a new part.

Customer satisfaction is an often-used term. How do you approach it in spare parts services?

The customer will only be sat-isfied when we have solved their problem in the shortest possible time. That’s why it’s important for us to deliver everything in

a single package that is required for replacement of a part. If important small parts like screws or assem-bly grease are missing, then even the fastest delivery is worthless. Our customers therefore receive so-called spare parts bundles. They include all the parts neces-sary for the replacement to be carried out.

What are your most i mpor ta nt log ist ica l processes?

All of our warehouses worldwide undergo contin-uous auditing so that they have the latest hardware and firmware. Unified standards are defined for all warehouses, and these allow us to ensure the cor-rect charge of components such as batteries before shipment. The top priority is the complete, quick delivery of all required spare parts to any production location of our customers. In emergen-cies, we deliver around the clock and, if desired, by express courier 24 hours a day, 365 days a year.

What tasks lie ahead for

your customer Services? We at Kuka customer serv-

ices are constantly thinking about what we do and how we do it. Have we best served our customers? Is there anything we can do even better? Here too, advanced technology helps us to find new answers. Good service 20 years ago would be poor serv-ice today. Perfection requires constant change. That’s what we are working on. For today and for the future.

(Courtesy: Kuka Robotics)

Italian automation solution provider Comau recently unveiled a spot welding system that integrates a welding gun with the flange connected directly to the robot

without the need for any adapter kit. The result is a light and compact product, able to sustain a high payload and, therefore meets the demand-ing need of the automotive industry.

Through initial analysis and benchmarking, Comau teams worked to optimise all of the sys-tem’s components. This led to the inception of the new spot welding gun, with a total weight of 40 percent less than previous models. It fea-tures a compact welding gun equipped with an improved transformer, which is rotated 90 degree to further decrease the dimensions of the body and shift the centre of gravity closer to the robot’s wrist. The pneumatic cylinder for balancing the welding gun has been elimi-nated and the fieldbus module and the flexion of the gun arms are controlled through the robot’s software; this ensures welding qual-ity and accuracy. The cooling pipes and cables are housed within a protective cover that guar-antees maximum safeguard from wear. Its defined layout allows positioning repeatability even after maintenance services and interven-tions. This welding gun marks a new standard that can be installed and used with all robots, even as a retro-fit - offering maximum flexibil-ity and modularity in response to production demands.

Along with the welding gun, the latest generation of robots has been developed, fol-lowing in-depth research related to materials and design. The robot has maintained the same functional range of the arm by opti-mising the dimensions of each individual component, such as the engines. The spot welding machine’s accuracy, is the complete integration of the cables and pipes running to the welding gun inside the robot arm. This solution, which is unique to the field, is the cul-mination of years of experience and continual development; it has made it possible to offer an eight-year warranty for the robot configura-tion. The system has been improved from every perspective – refining the algorithms and the logic of movements. This welding machine can also be installed on the ceiling, opening up more functional space.

The spot welding machine was developed in Italy at Comau in Grugliasco, outside Turin. Developing highly efficient solutions that have a positive effect on operating costs and reduced environmental impact means developing integrated systems that are characterized by increased component reliability.

Comau unveils spot welding machine

Karina Santjohanser, Head of Parts and Repair, Kuka Roboter speaks about the company’s spare parts service.

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M A C H I N I N G1211 JUNE 2012

Better safe than sorry

According to the International Federation of Robotics (IFR), there are around 234 indus-

trial robots in Germany for every 10,000 employees in the manufac-turing industries – and the figure is rising. As the number of robots increases, so too do their proxim-ity to humans and the associated potential hazards. However, phys-ical safeguards, which shut the robot into its cell and the human out, inhibit work sequences and cost valuable time. The objective is cooperation between the robot and the human, without endan-gering the latter.

Risk evaluations and standards

The top priority is protection against injury. Since it is impos-sible to preclude entirely the possibility of collisions between robot and human in collaboration spaces, the minimum objective is to reduce the risk of injury to a tol-erable level. International norms and standards help manufactur-ers and integrators to implement

safe systems. The DIN EN ISO 10218-1 standard that is applica-ble to industrial robots defines what injuries are liable to occur and how the individual risks are to be assessed. The standard describes robot systems guided by workers as “collaborative robots”. Furthermore, DIN EN ISO 101218-2 replaces European Standard EN 775 and US Standard ANSI RIA 1999. Meeting the requirements of this standard simultaneously ensures compliance with those of the European Machinery Directive.

Manfred Gundel, CEO of KUKA Roboter GmbH, explains: “The safety requirements described in the international standards are to be understood as a guide-line. KUKA Roboter GmbH systematically pursues the goal of exceeding these safety require-ments to the maximum possible extent by means of technical solu-tions. Although the validity of the old standards has been extended by two years to 2012, KUKA has already been supplying its robot systems since 2009 in conformity with the new standard for safe-ty-related control functions (ISO

13849-1) – and is thus providing its customers with security of invest-ment for the future.”

Conformity of machines and systems

Safety is an issue that places challenging demands on system integrators and system builders, particularly in the design of larger semi-automated assembly lines. In addition to design measures, such as enclosures for sharp edges and force limitation of the robot to minimize damage in the event of a collision, the main priority is to prevent accidents. For this rea-son, KUKA has long placed major emphasis on research and devel-opment in the field of safe robot technology. Around 4,000 of the robot systems supplied worldwide already have safety functions of the KUKA.SafeOperation pack-age. However, safety functions are continuously being adapt-ed to new requirements, such as the trend towards human-robot cooperation. Where humans and machines work together in close proximity and physical safe-guards impede work sequences, other measures must be taken

to ensure the safety and protec-tion of the human workers. What is required is a safe, ‘intelligent’ robot that reacts immediately in the event of danger.

The new KUKA KR C4 control-ler, into which the full range of safety functions has been inte-grated for the first time, represents the state of the art. The execution of all safety-related control func-tions in conjunction with Safe Robot Technology (SRT) is certi-fied to ISO 13849-1 (2006). With the integration of Safe Technology into the KR C4 controller software, KUKA has achieved a revolution-ary step towards the concept of a ‘safe robot’ – and more than that: towards an “intelligent robot” for which there is increasing need in order to perform collabora-

tive tasks. Such a robot must be equipped with safety controllers, permanently sense the motions of the human worker, determine the risk of collision and adapt its own Cartesian motions.

Tanja Birner, Head of Product Management at KUKA Roboter, explains: “The combination of single-channel motion control of the robot axes and dual-channel monitoring of the complete work-space in a single controller means that proprietary control hardware can be dispensed with entirely. Indirect safety communication via the PLC is also eliminated. The reaction times of a robot are drastically shortened – a major advantage for safety and also for the productivity of the system!”

(Author is a freelance journalist)

Mazak Corporation recent-ly announced expansion of its National Technology Center and Center for Multi-Tasking and

Manufacturing Excellence. The expanded facil-ity will provide customers with significantly enhanced applications support and training opportunities and allow Mazak to demonstrate larger-size machines and create increased opportunities for process solutions including complete turnkey manufacturing systems.

The National Technology Center is the hub for Mazak’s eight Regional Technology Centers and, as such, enhances Mazak’s customer sup-port capabilities throughout North America. The expansion of the National Technology Center will allow for additional collaboration with the regional centers and distributors’ technical cent-ers for providing the engineering, development and necessary floor space to perform customer runoffs of larger manufacturing systems to meet current customer demand. Mazak Corporation’s eight technology centers are also integral to the network of 36 worldwide technology centers of

Yamazaki Mazak Corporation. With this expan-sion, the National Technology Center, which opened in 1996 and was doubled in size as the result of a 2006 expansion, will now grow from 69,000 to 100,183 square feet of space. The com-pany recently opened a new larger Southwest Regional Technology Center in the Houston area as well as expanded its Midwest Regional Technology Center in the Chicago area. Mazak has also added 30 new applications engineers across technology centers.

The company’s technology centers play a key role in the company’s comprehensive service and support program. Each technology centre offers full access to advanced multi-tasking and five-axis machines, training courses, applications assistance, parts support and networking and manufacturing technologies, which collective-ly provide Mazak customers with the resources required to achieve lean, efficient manufactur-ing operations.

Mazak expands US operations Our Bureau

Mumbai

Uschi Winkler

Each tech center offers full access to advanced multi-tasking and five-axis machines, training

courses, applications assistance, parts support and networking and

manufacturing technologies

Auto Monitor

C O R P O R A T E 1311 JUNE 2012

South Korean bike maker S&T Motors has yet again switched its Indian part-ner by joining hands with

Pune based DSK Group for its two wheeler business. S&T Motors had partnered with Kinetic Motors in the mid nineties for manufacturing and selling bikes in India but could not sustain its presence in India for long. It joined hands with Garware Motors two years back for a its second innings in India.

The Korean company’s third partner DSK Group has wide ranging interests in construction, automobiles, digital products, education, investments, pharma-cy, travel and leisure, hospitality and infrastructure.

DSK Group entity DSK Motowheels has partner with S&T Motors under the JV entity ‘DSK Hyosung’ for assembling, marketing and selling ‘Hyosung’ superbikes . With this tieup DSK

Motowheels replaces Garware Motors Limited as the exclu-sive distributors of ‘Hyosung’ Motorcycles in India. With the tie up, DSK Motowheels would be taking over the manufacturing facility of Garware Motors Ltd in Wai. All 18 dealerships of Garware Motors Limited will also be trans-ferred to DSK Motowheels.

DSK Motowheels has plans for setting a full fledged plant near Pune in near future. It is also looking to aggressively localize parts to bring down costs and make superbikes more afforda-ble in India.

The Pune based group ,has seven Toyota dealerships and are dealers of Hino commercial vehicle across Maharashtra . It entered into automobile busi-ness in 2000 in association with Toyota by setting up strong deal-ership network in Maharashtra.

Founded in 1978 as a divi-sion of the Hyosung Group of industries, Hyosung began producing Japanese Suzuki motorcycle designs under license

for the South Korean market in Changwon, South Korea in 1979. In 1986, it established its research and development cen-tre in Hamamatsu, Japan, and the next year began mass pro-duction of their own designs. In 2003, Hyosung Motors & Machinery Inc. was spun off from the Hyosung Group to become its own corporate enti-ty. In June 2007, Hyosung Motors Division was acquired by Korean company S&T Group (Science and Technology), and the name changed to S&T Motors.

Tata Motors’ Dharwad plant for small commercial vehicles began produc-tion of the Tata ACE Zip and the Tata Magic IRIS.

The facility has been established with an investment of around Rs 900 crore and spans across 405 acre. The plant has been construct-ed as per the norms specified by Indian Green Building Council (IGBC). The plant has been equipped with state-of-the-art equipment fol-lowing lean manufacturing principles. It has built-in f lexibilities to assemble large num-bers and different variants in mixed mode production. The plant has been recommend-ed for ISO 14001, Environment Management System Standard.

The major capital outlay, encompassing civil and plant engineering work for the facili-ty, has been sourced from Europe, the US, South Korea, Japan and best-in-class suppliers from India. The capacity of the plant, to begin with, is 90,000 units per year, to be achieved in phases. The company has provided for further capacity expansion when required.

Launched in May 2011, the Tata Magic IRIS is a four-wheel, 3-4 seater small passenger car-rier, a stylish, safe and comfortable alternative for commuters who depend on three-wheelers. The Tata Ace Zip, also launched in May 2011, is a technologically superior and a smart micro truck with a payload of 600 kg for deep-pene-tration door to door goods movement.

The plant already directly employs 350 individuals. The recruitment exercise cov-ered about 76 ITIs in Karnataka. Training, skill transfer and development of local work-force is one of the top priorities of Tata Motors. Tata Motors has also begun activities towards development of local communities by working on four thrust areas - employability, educa-tion, health and environment - making it into a beehive of inclusive growth.

With this tieup, DSK Motowheels replaces Garware

Motors as the exclusive distributors of ‘Hyosung’ motorcycles

in India including entire dealership

network

Our Bureau Mumbai

Tata Motors’ Dharwad facility comes on stream Our Bureau

Mumbai

Shirish Kulkarni , Managing Director, DSK Motowheels on Hyusong GT 650R

PM Telang, MD India Operations, Tata Motors

S&T Motors switches to DSK Group for ‘Hyosung’ India innings

Auto Monitor

A U T O N O M I C S1411 JUNE 2012

The Indian two-wheeler market could reach near saturation by 2020: 8 out of 10 households who

can afford a two-wheeler are likely to own one by that year. While sales growth in urban areas is expected to progres-sively taper down over the next 5-7 years, rural areas still offer considerable scope for growth. However, beyond 2020, replace-ment demand will be the main driver of two wheeler sales. Two-wheeler companies will also have to enhance focus on export mar-kets. Intensified competition, will force two-wheeler compa-nies to launch more models at competitive prices and expand distribution aggressively.

Indian two-wheeler market could saturate by 2020

New two-wheeler sales in India are likely to drop significantly by 2020. The slowdown may already be setting in: After the global recession in 2008-09, two-wheeler sales in India recorded a 22 per-cent CAGR between 2008-09 and 2011-12. In 2011-12, sales grew by 14 percent, and are expected to settle at a 10-12 percent CAGR in the next 5-7 years, which is sim-ilar to the annual growth rate witnessed during the last decade. Even at this moderate growth, saturation in the market seems imminent by 2020.

A significant rise in the number of households owning two-wheelers is the key reason for the likely slowdown in new sales. By 2020, 75-80 percent of households that can afford a two-wheeler will also own one—limiting the scope for new sales. Moreover, 80 percent of all households in the country would be able to afford a two-wheeler and the pace of increase in such households would also be rather modest compared to the past.

In urban areas, 55-60 percent of households already own a two-wheeler, while in rural areas, less than 15 percent of households own a two-wheeler. New sales in urban areas are fast approach-ing maturity levels. Rural areas, by contrast, will offer some potential over the next 5-7 years as more households migrate to higher income brackets. But, after 2019-20, even that demand is likely to slow down signifi-cantly as all-India penetration

levels cross 75 percent of the total addressable market.

Global comparisons show India is nearing peak two-wheeler penetration

To corroborate our hypothe-sis, we studied how sales in other large two-wheeler markets—Japan and China—have grown over the years. Our studies show that penetration in a two-wheeler market typically peaks at 150-175 per thousand persons—or, between 60 percent and 70 per-cent of households. Beyond this level, the market begins to sat-urate; as penetration peaked at about 150 per thousand in 1986, the Japanese two-wheeler market saturated, with sales and pen-etration levels declining in the subsequent years.

In China, two-wheeler pene-tration was estimated at 140-160 per thousand in 2011, after the introduction of electric two-wheelers in 1999-00 fuelled a record growth in sales. With penetration levels likely to touch 170-190 per thousand by 2016-17, the Chinese two-wheeler market is heading towards saturation.

Although the Chinese two-wheeler market is relatively more mature, India has tracked the Chinese market in sales growth and change in penetration lev-els with respect to income levels, with a lag of 5-7 years. In India, two-wheeler penetration is expected to reach about 150 per thousand persons by 2020 (cov-ering almost two-thirds of all households), comparable to cur-rent penetration levels in China. This raises important implica-tions for large-sized two-wheeler manufacturers.

Two-wheeler makers to focus on replacement sales, rural market

Beyond 2020, two-wheel-er sales in India will be led by replacement demand. Given an average life of 8-10 years for a two-wheeler, more than 40 per-cent of demand in 2020 will come from new vehicles replacing the old. The proportion of first time buyers will steadily decrease.

As the urban market saturates over the next 5-7 years, Indian two-wheeler manufacturers, especially the larger ones, will have to turn to rural/semi-urban markets to maintain growth in

new sales. Two-wheeler penetra-tion in urban areas, at 120-125 per thousand people (55-60 per-cent of addressable households) in 2011-12, is already nearing its peak. And, with over 90 percent of urban addressable households being able to afford a two-wheel-er, growth in new sales is likely to be tepid, at a 5-8 percent CAGR over the next 5-7 years.

By contrast, the rural market appears to hold far greater poten-tial for new sales: penetration levels are just about 30 per thou-

sand persons and over half the population is yet to attain thresh-old income levels. Growth in rural sales is likely to be strong-er at over 14 percent CAGR, led by rising income (agricultural as well as non-agricultural) and low penetration. By 2016-17, the rural market will account for over 55 percent of total sales; and con-tinue to dominate sales in the subsequent years too. A strong product line and a deep distri-bution network will be vital for larger two-wheeler companies to tap the rural opportunity.

Exports to also aid sales growth after 2020

Indian two-wheeler compa-nies will also have to step up exports, another growth avenue. In 2011-12, around 12 percent of the two wheelers produced were exported. Two-wheeler exports are expected to grow at 16-18 per-cent CAGR by 2016-17. Indian two-wheeler companies are like-ly to focus on markets similar to India that require lesser product development efforts: Africa, South-East Asia and Latin American countries.

(Please note that the views expressed here are those of CRISIL Research and not of CRISIL’s Ratings division. CRISIL Research operates independently of and does not have access to informa-tion obtained by CRISIL’s Ratings Division)

Two-wheeler penetration fast approaching peak levels

Intensified competition, will force two-wheeler makers to launch more models at competitive prices and

expand distribution

Ajay SrinivasanHead, CRISIL Research

Hetal Gandhi Team Leader, CRISIL Research

Kaustubh Jhaveri Analyst, CRISIL Research

Source: CRISIL ResearchNote: Addressable households refer to those with an annual income of more than Rs 110,000, at current prices

Historical and projected two-wheeler penetration levels (excluding mopeds

Source: CRISIL Research

Share of rural two-wheeler sales to increase consistently

Source: Industry, CRISIL Research

Note: 1) Penetration levels presented above are for different time periods

2) Estimated penetration for Chinese market includes electric two-wheelers

Saturation across global two-wheeler markets

Auto Monitor

C O R P O R A T E1611 JUNE 2012

Anand Sharma to chair Manufacturing Industry Promotion Board

The G ov er n ment h a s e s t a bl i s he d a Ma nu fact u r i ng Industry Promotion

Board (MIPB) for matters per-taining to the implementation of the National Manufacturing Policy with the Commerce and Industry Minister, Anand Sharma in the chair. Along with the MIPB the Government has also noti-fied Board of Approval, Green Manufacturing Committee and High Level Committee.

The MIPB will have Secretaries of Department of Economic Affairs; Revenue; Labour and Employment; Micro, Small and Medium Enterprises; Road Transport and Highways; Heavy Industry & Public Enterprises; Science & Technolog y; Environment and Forests; Member-Secretary, National Manufacturing Competitiveness Council. There will be two indus-try representatives and industry

secretary will be the Member Secretary of the Board. The board may invite the industry minis-ters of the states concerned if required.

The board has been tasked to periodically review the overall situation of the manufactur-ing sector in the country. This will include review of state-wise/sector-wise performance of the manufacturing sector. The board will also review the implementation of the National Manufacturing Policy in general and the development of NIMZs, wherever approved. High level inter-ministerial nature of the board will enable it to resolve co-ordination issues among central ministries on the one hand and state governments and central ministries on the other.

The Board of Approval (BOA) for matters pertaining to the NMIZs has also been notified. The Board will examine applications for establishment of NIMZs and recommend such proposals for

consideration to the High Level Committee (HLC) as are found to be meeting the requirements of the National Manufacturing Policy. After consideration by the HLC, the proposals will be put up for approval to Commerce and Industry Minister.

A Green Manufacturing Committee (GMAC) for mat-ters pertaining to the Policy on Technology Acquisition and Development Fund (TADF) under NMP has also been notified. The committee will prescribe objective criteria for categorising a technology as ‘clean and green’. The cri-teria will be consistent with the objective of the national action plan on climate change and the strategy for inclu-sive sustainable development. The Committee chaired by Secretary Industry will also constitute a panel of experts/agencies/environment audi-tors for the purpose of third party certification. This com-mittee will operate and review

the Technolog y Acquisition and Development Fund. It will formulate guidelines for the operation of the fund.

The Government of India had announced the NMP with the objective of enhancing the share of manufacturing in GDP to 25 percent within a decade and creating 100 million jobs. The policy aims to create world class industrial infrastructure, a con-ducive business environment, an ecosystem for technological innovation – especially in the domain of green manufacturing, institutions for industry relevant skill upgradation, and mecha-nisms for easy access to finance for entrepreneurs.

Addressing the third meeting of the Government-Industry Task Force, Sharma said that difficult economic climate not only in the context of Indian economy but the global economic situation.

“The immediate challenge for a country like India is to appropriately calibrate the macroeconomic policies for

addressing the downside risks from advanced economies to spill over into our economy and maintain adequate availability of credit for industrial activity and also provide an investment cli-mate which encourages foreign capital flows,” said Sharma.

The members from indus-try side raised their concerns regarding hiccups in industrial growth and gave their sugges-tions to overcome that. CII’s Adi Godrej advocated disinvest-ment, subsidy containment and monetary stimulus. He said that a few quick reform announce-ments will create a virtuous cycle and concerted action can revert the negative sentiment. ‘Coming back to nine percent growth rate is imminently feasible,’ added Godrej. RV Kanoria of FICCI asked for cut in interest rates and asked the government to look into issues of MAT and prob-lems in the proposed land bill. Harshpati Singhania expressed concerns over rising input cost for the industry.

Leyland Deere recently commenced sale of its ‘435 Backhoe Loader’ in Chennai through Chennai-based automobile distribution company - T V Sundram

Iyengar & Sons (TVS & Sons). This facility will act as a regional head office for Leyland Deere dealership business of TVS & Sons. In addition to sales, it will also have service centre and spare parts sales.

The new dealership is the first facility in Chennai and 12th such facility for TVS & Sons, which is the authorised dealer for Leyland Deere Construction equipment products for Tamil Nadu and Kerala markets.

The facility is spread across 10,000 square feet land and is strategically located on the Chennai-Bangalore National Highway, which is the hub for construction equipment. The deal-ership also has 1,000 line items (spare parts) readily available to cater to the needs of the customers.

“In line with our business expansion activi-ties, we are happy to dedicate this facility for Leyland Deere products in Chennai. With this inauguration, we have our facilities in all the key Tier-I and Tier-II cities of Tamil Nadu and Kerala. We hope to continue our best services in sales and after sales services to Leyland Deere Customers. By establishing such facilities, we at TVS & Sons, try to go beyond the normal onsite maintenance requirements of such machines because these facilities will be able to cater to the rehabilitation of these machines in future,” said President, Dealership Line of Business, TVS & Sons, N Krishnamoorthy.

TVS & Sons also distributes commercial vehi-cles, utility and sports utility vehicles, passenger cars representing various leading automobile vehicle manufacturers such as Ashok Leyland, Mahindra & Mahindra, Mahindra Navistar and Renault. It has more than 150 outlets and sells over 50,000 vehicles and service reporting exceeds 500,000 vehicles per annum.

Our Bureau Chennai

Leyland Deere commences sale in Chennai Our Bureau

Chennai

Auto Monitor

C O R P O R A T E 1711 JUNE 2012

ICT – a force to reckon with to face emerging challenges

Chennai is set to become the major hub of inno-vation for Information & Communication

Technology and automotive industry as these sectors have good presence in the region, Andy Palmer, Executive Vice President, Nissan Motor Co Ltd said.

Delivering his key note address on Conference on ‘ICT Innovation for Automotive Industry’ organised by the Tamil Nadu Technology Development & Promotion Centre of CII in Chennai recently, Palmer said that the boom in the two indus-tries is clearly evident with special attention in R&D.

Global industries have set priority in developing and mak-ing efficient electric vehicle as a part of their sustainability efforts. Although electric vehi-cle is a better solution for sustainability, improvements in other areas such as fuel cell and efficient powertrain is equally important as sales of electric vehicle is expected to be only around ten percent in a fully developed stage. He also

spoke about some intelligent transport systems like vehi-cle time-table which has been efficient in offsetting mobility issues in countries like Japan. He further emphasised that the solutions to sustainability requires a kind of triple layer approach (vehicle, people and society) which combines factors of technology, driving behav-iour and traffic systems.

While he mentioned the increased sales figures of Renault Nissan Vehicles in India, 80 per-cent of which is exported he also touched on key sustainability issues due to projected global population rise to nine billion in 2050 (from seven billion in 2012), of which 70 percent people will be in urban areas. This would increase the energy consump-tion and industry & agriculture production.

Talking about the Nissan Green Program, Palmer added that the company aims at improving fuel efficiency and recycling material by 35 percent and 25 percent respectively and 20 percent of carbon dioxide reduction by 2016. When asked about the launch of the Nissan Leaf, Palmer said, “It depends

on the government putting the right infrastructure and subsi-dies in place as it is an expensive technology.”

Delivering the theme address, ‘Excellence in Sustainable Mobilit y and Consumer Expercience’ Managing Director and CEO, Defiance Technologies, Subu Subramanian said, “Chennai was already home to many automotive and ICT industries.” With Bangalore having strong establishment in embedded systems and in close proximity to Chennai, the capi-tal city of Tamil Nadu had all the advantages to transform into an innovation hub in the light of ICT and automotives. Given the overlapping of the ICT into the automotive sector, newer busi-ness models perspective to OEMS and Tier-I are required to support the new developments, he added.

Earlier in his address Chairman CII Chennai Zone and Director–Operations, Saint Gobain Glass India Ltd, SN Eisenhower said, it is time for us to seek competitiveness by embracing new technologies through innovation and CII is ready to support industrial ini-tiatives and coordinate with the

Government for taking the initia-tive forward.

Later the conference dis-cussed on three different areas as ‘ICT for Sustainable Mobility’, ‘ICT for Product Engineering’, ‘ICT for Superior Consumer Experience’. The first session discussed on the role of ICT in deriving the possibilities to meet stringent emission standards or in making means of transport that is more fuel efficient, ICT plays a key role today. Today, sustainable mobility goals are defined as minimising carbon footprint from design to dispos-

al. The question is how creatively the industry can afford these benefits to the customer at the least cost. The session also cov-ered different subjects including powertrain design, alternative fuels, meeting emission norms and overall new product design to meet the sustainable norms, current status of hybrid and elec-tric vehicle in India. Besides, it also analysed on how the whole eco system can make this happen like walk to work, city connect initiatives, traffic regulations and pedestrian safety.

The challenge in product engineer-ing is not just to make good products but to make it at a faster pace. It has shifted gears to become more cus-

tomer-centric by developing products using a synthesis of technologies that are evolving at a rapid pace. Without the right IT tools, it is no longer possible to do justice to the product engineering process. This session primarily dealt with ICT that goes into designing the product and also embedded into the product itself. End to end ICT platform to design the product, infotainment system and high tech ICT component of the product were discussed during the session.

In addition there was a special session to discuss ICT for superior consumer experience. According to the Chief (Value Solutions – Asia Pacific) Dassault System, Ajay Verma, there is tremendous amount of device profusion because life and work are becoming indistin-guishable. The panellist said the world has entered the age of empowered customers; this is because the customers now have unlimited access of info and can instantly share it with the rest of the world. It is also because of the fact that more than three fourth of the people believe that companies do not reveal the truth fully and so they do their own research and share with others.

The event concluded with a panel dis-cussion on ‘Do Indian metros need electric alternatives.’ The session was chaired by Subu D Subramanian. While the panellist Ajay Verma of Dassault Systems and the Managing Director of Chrysler India, Nagesh Basavanahalli discussed on the options for the automotive industry to develop electric mobility and analysed the host of challenges to be faced, the CEO of IIT Madras Research Park, Sandhya Shekar threw the audi-ence with her dream of eco-friendly transport from home to work and back – at a shortest possible using public transport, while not com-promising privacy.

Our Bureau Chennai

ICT for Product Engineering

Andy Palmer, EVP, Nissan delivering his keynote address at ICT Conference

Subu D Subramanian, MD & CEO, Defiance Technologies, charing CEO’s Power Panel on: Do Indian Metros need elec-tric alternatives? Sandhya Shekar, CEO, IIT Madras Research

Park, Nagesh Basavanahalli, MD, Chrysler India and Ajay Verma, Chief (Value Solutions – Asia Pacific) Dassault

Systems participated in the panel.

Auto Monitor

S T U D Y1811 JUNE 2012

OECD countries spend one percent of GDP on road and rail infrastructure on average

Our most recent data show that gross fixed capital formation (investment) in inland

transport infrastructure as a percentage of Gross Domestic Product (GDP) has remained fairly constant at around 0.8per-cent for the OECD as a whole (if Japan is excluded) over the peri-od since 1995 for which we report data. Japan has followed a differ-ent trajectory and its economy is large enough to affect the overall average for the OECD significant-ly. Including data on Japan results in a declining trend over the peri-od, but a higher overall average for 2010, with a 1percent share of GDP for the OECD total.

Historically, transport infra-structure investment in Japan was relatively high in relation to GDP but has been in decline since the 1990s. Expenditures were affected by general budg-et cuts towards the end of the 1990’s. Subsequently, modifica-tion of the allocation of revenues from gasoline tax, earlier ear-marked for highway development and maintenance, has strongly reduced the level of investment in roads in Japan.

The International Transport Forum has collected data on investment and maintenance expenditure on transport infra-structure since the late 1970s. In Western Europe, the investment share of GDP has declined stead-ily from 1.5percent in 1975 to 1.2 percent in 1980 and further to 1.0percent in 1982 after which it levelled off.

Our latest data show that the GDP share of investment in inland transport infrastructure has remained between 0.8percent and 1.0percent on average since the 1990s in Western European countries. Only Greece, Spain and Portugal show significantly higher than average shares over the period 1995-2010 (1.6 percent – 2.0 percent). Data for North America also show a constant GDP share (0.6 percent) until very recently. The latest estimates indicate a slight growth in invest-ment as a share of GDP, reaching 0.7 percent in 2009 and 2010.

An investment level of 1 per-cent per GDP remained a norm

for many years, such that it became de facto political bench-mark in the 1980s, though with no theoretical basis behind it. The investment needs for trans-port infrastructure depend on a number of factors, such as the quality and age of the existing infrastructure, geography of the country and transport-intensi-ty of the country’s productive sector, among other things. The fact that the share of GDP dedi-cated to transport infrastructure has tended to remain constant in many countries suggests investment levels are affected by factors other than real invest-ment needs, such as institutional budget allocation procedures or budgetary constraints. The impact of government policy can also be identified, as for exam-ple in Japan and in the data for Australasia. Here, the share of infrastructure investment in GDP grew 50percent partly as a result of the last five year invest-ment plan in Australia.

Trends for developing and transition economies differ markedly from those described above. The share of investment in inland transport infrastruc-ture in Central and Eastern European countries (CEECs), which until 2002 had remained at around 1 percent of GDP, has grown sharply, reaching 2 per-cent in 2009 – the highest figure ever reported by these countries. Data for 2010 suggest a drop to 1.7 percent, affected by the econom-ic crisis. Data for India suggest a similar growth trend in the

GDP share of investments since 2004. In the Russian Federation the investment share of GDP has been more volatile. Rising levels of investment in develop-ing economies reflect efforts to meet rising needs for road net-work capital, reinforced by the demands of growing economies.

The volume of investment (expenditure in real terms) in the OECD total (excluding Japan) has grown 30 percent in the last 15 years. If data on Japan is included, the volume has remained fair-ly stable around the 1995 level. In Western European countries, the volume of investment started growing in 2002, and was 28 per-cent above the 1995 level in 2006. The level of investment then declined again. The latest data for 2010 show volume 12 percent higher than the 1995 level. The volume of inland infrastructure investment in North America grew by around 30 percent from 1995 to 2002. Our estimate suggests a slow decline in invest-ment volume that continued all the way to 2008. Recent data indi-cate again a growth in the volume of investment in North America, returning to the 2001 level in real terms in 2010.

The volume of infrastruc-ture investment has accelerated strongly in developing and transi-tion economies, notably in Central and Eastern European coun-tries since 2003. This growth has turned negative after reaching a record level in 2009. Investment in inland transport infrastructure declined 11percent in real terms from 2009 to 2010.

The share of rail investment has increased from 15 percent to 23 percent for the OECD total from 1995 to 2010, according to our estimate. This trend is mainly determined by the devel-opment in Japan and Europe. Data show long-run trends in the modal share of investment in Western European and Central and Eastern European coun-tries. In the Western European countries, the share of invest-ment in rail infrastructure has increased steadily from around 20 percent of total investment in inland transport infrastruc-ture in 1975 to 30 percent in 1995

and to 40 percent in 2010. The trend observed in our data for Western Europe is partly a reflec-tion of political commitment to development of railways and the recent data does not seem to indi-cate any change in policy.

Whereas Western European countries have increasing-ly directed their investment toward rail, Central and Eastern European countries are investing more heavily in roads. The share of roads in inland transport infra-structure investment increased from 65 percent in 1995 to 82 per-cent in 2010 in this region. The last five years, however, suggest a stabilisation of the trend and the modal split of investment has remained at 2005 level in 2010.

The available data seems to suggest that the balance between road maintenance and investment has been relative-ly constant over time in many regions. We estimated the share of maintenance in total road expenditure in our previous brief to be between 25 percent and 35 percent in Western European and Central and Eastern European countries. However, there are significant differences

between individual countries. Infrastructure investments are a key determinant of perform-ance in the transport sector. However, the sector lacks stand-ardised definitions and methods for measuring investment – and a fortiori assets. The lack of clear definitions and common practic-es hinders meaningful analysis and comparison, and this may undermine decision making. In order to improve future data on transport investments, the International Transport Forum at the OECD organised an inter-national workshop on measuring investment in transport infra-structure. As a follow-up to the workshop, a Task Force was established aiming at creating a “best practice manual” to bet-ter understand and quantify the impact of transport investment on the economy, to increase the meaningfulness of data analy-sis and to create better tools for decision making. Findings will be available at the International Transport Forum’s Summit on “Funding Transport” to be held in May 2013.

(Courtesy: International Transport Forum)

The investment needs for transport

infrastructure depend on factors such as the quality

and age of the existing infrastructure,

geography of the country and transport-

intensity of the country’s

productive sector

The latest update of annual transport infrastructure investment and maintenance data collected by the International Transport Forum at the OECD shows that for the last 15 years:

��Investment in inland transport infrastructure has remained constant at 0.8percent of GDP for the OECD (excluding Japan) and the volume of investment has grown 30percent

��In North America and Western Europe the GDP shares for investments

in road, rail and inland waterways are constant, whereas in many developing and transition economies transport investment as a share of GDP is increasing;

��Western European economies have invested increasingly in rail while in Central and Eastern European countries the focus is on roads;

��While record investment levels were reached in Central and Eastern European countries in 2009, the latest data show decline for the first time (-11 percent in real terms in 2010).

Auto Monitor

G L O B A L W A T C H2011 JUNE 2012

Peugeot launches interactive iPad magazine

Goodyear advances on Forbes magazine

Peugeot is extending the accessibility of its popu-lar Rapport magazine through iPad, and it is now

available for in the Apple App Store. The electronic magazine includes lifestyle features, incorporating exclusive video content and image galleries, with interactive func-tionality bringing the Peugeot product range and launches to life. Rapport on the iPad is a com-pelling read for Peugeot owners and enthusiasts, as well as those who want to know more about the extensive initiatives available to Peugeot customers.

The highlights of the issue include- Discover Peugeot’s new 208, heralding a fresh new era of super minis, a Welsh riverside adventure in the world’s first diesel hybrid - the 3008 HYbrid4, explore some of the best cycle routes in the UK with our inter-active map, find out more about

the impressive Peugeot 508 RXH - a versatile hybrid estate, take a trip into the gruelling world of triathlon and explore the Peugeot range, discover the latest special offers, down-load a brochure, request a test drive or find your local Peugeot Dealership.

The Goodyear Tyre & Rubber Company has again been recognised as one of America’s

most reputable companies by Forbes magazine. Goodyear ranked 26th on the magazine’s seventh annual ranking of cor-porate reputation in the United States, up from its 38th place ranking in 2011. The list is based on the results of the Reputation Institute’s US Reputation Pulse consumer survey, which was conducted in the first quarter of 2012. The survey measures the overall trust, esteem, admi-ration and good feelings more than 10,000 consumers hold toward 150 of the country’s larg-est companies. Scores are based on RI’s seven dimensions of reputation: products/services, innovation, governance, work-place, citizenship, leadership and financial performance. RI said the 2012 survey indicates that perceptions of the enterprise (workplace, governance, citizen-ship, financial performance and

leadership) were more important than product perceptions (prod-ucts/services and innovation) in driving consumer behaviors.

Goodyear’s presence in India is over 89 years old, with two plants, one each in Ballabgarh and Aurangabad. In the pas-senger car segment, Goodyear India supplies tyres to many of the leading Original Equipment Manufacturers. Goodyear India has also been a pioneer in intro-ducing tubeless radial tyres in this segment. In the farm seg-ment, in India, Goodyear tyres are supplied to all the major tractor companies. Goodyear is one of the world’s largest tyre companies and employs about 72,000 people and manufactures its products in 53 facilities in 22 countries around the world. Its two Innovation Centers in Akron, Ohio and Colmar-Berg, Luxembourg strive to develop state-of-the-art products and services that set the technology and performance standard for the industry.

The emagazine includes lifestyle

features, incorporating exclusive video content

and image galleries, with interactive

functionality

Autoliv has agreed to plead guilty and pay a $14.5 million fine for its role in a conspiracy to fix prices of seat belts, air bags and steering wheels

installed in US cars, the Justice Department said. Sweden-based Autoliv is the latest com-pany snared by the government’s ongoing investigation into price fixing in the auto parts sector. Six companies and 10 executives have agreed to plead guilty. “By meeting in secret and agreeing to allocate the supply of various automotive parts, the conspirators colluded to rip off automotive manufactur-ers in the United States and abroad,” said Scott Hammond, deputy assistant attorney general of the Antitrust Division’s criminal enforcement program. “These conspiracies eliminated competition and resulted in inf lated prices to automotive manufacturers for parts in cars sold to US consumers.”

Price Rigging ConspiracyAutoliv engaged in conspiracies to rig bids

and fix prices of seat belts, air bags and steer-ing wheels sold to automakers in the United States and elsewhere. According to court documents, Autoliv’s involvement in the con-spiracies lasted from as early as March 2006 until February 2011 or later. The company agreed during meetings and conversations to allocate the supply of seat belts, air bags and steering wheels on a model-by-model basis. The justice department said Autoliv and the co-conspirators sold parts at non-competi-tive prices to automakers in the United States and elsewhere.

An executive of Yazaki Corp agreed to plead guilty for his role in a separate conspir-acy to fix prices of automotive wire harnesses and related products that are installed in US-made cars. According to a one-count fel-ony charge also filed in US District Court in Detroit, Kazuhiko Kashimoto, a Yazaki exec-utive, conspired to rig bids and fix prices of automotive wire harnesses and related prod-ucts. Court documents said Kashimoto’s involvement in the automotive wire harness conspiracy lasted from about January 2000 until at least September 2007. During that time, Kashimoto held management posi-tions in Columbus, Ohio, and in Japan for the Honda Sales and Honda Business Unit of Yazaki. Kashimoto has agreed to serve 14 months in a U.S. prison, pay a $20,000 criminal f ine and cooperate with the ongoing investigation. The plea agreements for Autoliv and Kashimoto are subject to court approval.

Autoliv fined $14.5M in price-fixing conspiracy

Auto Monitor

G L O B A L W A T C H2211 JUNE 2012

Automechanika Shanghai to witness increase in exhibition space, participationP

articipation at this year’s Automechanika Shanghai in December will be the largest ever

with more than 180,000 sq mt of exhibition space, an increase of 13 percent compared to last year’s show. In addition, 3,900 exhibitors are expected from 37 countries and regions, includ-ing 13 overseas pavilions. This growth is mainly due to a sig-nificant increase in overseas exhibitors as well as the expand-ed halls for repair & maintenance and accessories & tuning. As a result, the show is expecting a record number of exhibitors and more than 70,000 buyers and pro-fessional visitors.

Organised by Messe Frankfurt (Shanghai) Co Ltd and the China National Automotive Industry International Corporation (CNAICO), Automechanika Shanghai will be held 11 –14 December 2012 at the Shanghai New International Expo Centre, China. The show is highly praised

by the industry and covers the full range of automotive OE and after-market products and services.

The exhibition is divided into three sectors, parts & compo-nents, repair & maintenance and accessories & tuning, and it attracts quality buyers and pro-fessional visitors from the entire automobile industry chain including design centres, car manufacturers, auto parts sup-pliers, distribution channels, 4S shops, car maintenance services providers and car care service centres.

“Many local and internation-al brands launch new products at Automechanika Shanghai to enhance their importance in the industry. In addition, our exhibitors are very enthusias-tic about participating in the fringe programmes as product display events, press conferenc-es, product demonstrations and workshops have become anoth-er important platform for promotion,” said General

Manager, Messe Frankfurt (Shanghai) Co Ltd, Jason Cao.

Among the 2012 first time exhibitors is Valeo, a leading automotive supplier. Daniel Tung, General Manager for Valeo Service China said, “Valeo Service represents 13 percent of sales for the Valeo group in 2011. As China is the second biggest car population country, its aftermar-ket provides us with big growth potential together with Euro 753 million Valeo China OEM sales in 2011. We are concentrating on providing China’s aftermarket with more premium products and better value-added service, as well as raising brand awareness for Valeo. Valeo Service China will display its full range of pre-mium products (wiper, braking, filters, clutch, starter/alternator, lighting, thermal products) at Automechanika Shanghai.”

To support the huge demand from overseas companies want-ing to gain a share of China’s auto market, Automechanika Shanghai

is setting up new International Zones in the product halls, in addition to the well-established International Hall.

China now has a record 100 million vehicles on its roads and this vehicle ownership is sup-porting a booming automotive aftermarket industry. By the end of 2012, the repair and main-tenance market is expected to increase 26.9 percent to $80 bil-lion, and the accessories market is expected to increase 29 percent to $87 billion.

As a result, Automechanika Shanghai is proving popular with repair and maintenance companies as well as those involved with aftermarket and accessories. The 40,000 sq mt dedicated Repair & Maintenance hall is expected to attract more than 400 exhibitors, including several pavilions, especially from the tools sector which will double in size at 2012 show.

Automechanika Shanghai is one of twelve Automechanika

fairs held in Asia, Europe, North America, South America and Africa. Messe Frankfurt is Germany’s leading trade fair organiser, with Euro 457 mil-lion in sales and more than 1,769 active employees world-wide. The Messe Frankfurt Group has a global network of 28 subsidiaries, five branch offices and 52 international sales part-ners, giving it a presence for its customers in more than 150 countries.

By the end of 2012, the repair

and maintenance market is expected to increase 26.9 percent

to $80 bn, and the accessories market is expected to increase

29 percent to $87 bn

Visteon expanded its Yanfeng Visteon Automotive Electronics (YFVE) manu-facturing facility in Shanghai, China. The expansion will help the Visteon

electronics joint venture support growing cus-tomer needs.

“The plant expansion further strengthens our already formidable electronics capability in China,” said Visteon product Group President, Steve Meszaros. “YFVE is one of Visteon’s long-est-standing joint ventures in China. We remain committed to supporting its future growth by bringing global advanced technology and world-class manufacturing management experience and practices.”

The expansion more than doubles the size of the plant to approximately 30,000 sq mtrs (323,000 square feet). The facility now can accommodate up to 1,300 employees. The plant produces a full product range including driver information, audio and infotainment, and centre stack controls. The expansion boosts the plant’s yearly capacity by almost 50 percent and allows it to incorporate more world-class manufacturing equipment and processes for improved operational efficiency.

“The expansion of our Shanghai plant enhanc-es our capabilities to better serve our customers with the highest quality products,” said General Manager, YFVE, Decio Mendao.

Established in 1994, YFVE is a market leader in automotive electronics in China, designing and manufacturing a full range of automotive electronics components and systems for both domestic and overseas markets. YFVE has five manufacturing facilities in China and a world-class technical centre in Shanghai. It serves a wide range of both international and domestic Chinese automakers.

Visteon is a leading global automotive supplier that designs, engineers and manufactures inno-vative climate, electronic, interior and lighting products for vehicle manufacturers. With cor-porate offices in Van Buren Township, Michigan, Shanghai, China and Chelmsford, UK, the com-pany has facilities in 27 countries and employs approximately 25,000 people.

Visteon expands electronics component facility in China

Auto Monitor

G L O B A L W A T C H2411 JUNE 2012

Renault gears up for electric test drive tour with ZE rangeR

enault ZE Test Drive Tour 2012 will show-case full current Renault electric vehicle range of

Fluence, Twizy and Kangoo Van. Programme has been created to educate attendees on the unique selling points of the Renault ZE range, including reduced running costs, environmental benefits and the unique battery leasing strategy.

Renault has confirmed a series of UK roadshow dates for ‘It’s time to switch’ marketing campaign to promote its range of electric vehi-cles. Generating positive energy around the country, ‘Renault’s ZE Tour 2012’ launches this month. First stop on the 15 weekend tour that plugs into city centres and visitor attraction venues, includ-

ing London, Bristol, Birmingham, Manchester, Glasgow and Belfast, is Newcastle’s Centre for Life on 8 June. The Renault ZE tour will showcase the exciting range of zero emission in use vehicles - Fluence ZE, Twizy and Kangoo Van ZE - and has been specifical-ly designed to promote awareness of the various benefits of electric motoring.

The key aims of the gruel-ling schedule will be to leave visitors “educated, motivated and enthusiastic” towards the French brand’s unique range of 100 percent electric vehicles. Commenting on its latest mar-keting initiative, Andy Heiron, UK Head of Electric Vehicles Programme, said, “We’re the only manufacturer offering such a wide range of electric vehicles to appeal to different types of retail and business buyers. Our current three-model range has already been attracting a lot of interest, especially the unique Twizy. The proof of the pudding though is trying them out. We’re confident that after experiencing the refined and responsive driving experi-ence of a purely electric vehicle, combined with the financial and environmental benefits of switch-ing to an electric vehicle, potential buyers will be smitten.”

Demonstration VehiclesEach select event on the

‘Renault’s ZE Tour’, which runs until the end of October, lasts for three days and is held within close proximity to a Renault ZE dealer and a good vehicle charg-ing network.

At the heart of each event will be a central purpose-built geo-desic dome alongside a Twizy agility course. The dome will be the welcome point for all visi-tors who engage in the activities, including the Twizy demonstra-tions and on-road test-drives.

Within the dome, touch screen pods will provide visitors with information relating to battery range, charging times, pricing and the latest Plugged-in Places infrastructure, as well as giving

them the opportunity to explore the recently launched Zoe and be one of the first to order this elec-tric stunner.

Zero Emission DriveThe Twizy agility course will

clearly demonstrate just how easy and fun it is to manoeuvre this two-seater electric urban compact through tight spac-es, twisty chicanes and around hairpin bends. During the accom-panied test drives, professional instructors will explain vehicle characteristics such as regenera-tive braking, the availability of full torque from a standing start and the overall efficiency of the chosen model.

The running costs savings will also be explained using a ‘Reward Your Alter Eco’ challenge iPad app. After answering four simple questions, the app calculates the savings that could be achieved by visitors if they chose to switch to a Renault ZE over their current vehicle.

The Renault Fluence ZE is a five-seat family saloon car, Twizy is the first-ever fully electric urban com-pact two-seater, while the Kangoo Van ZE, the current International Van of the Year, is Renault’s answer to those business customers look-ing for lower overheads from their light commercial vehicle fleet while reinforcing their green cre-dentials.

A 100 year old Vauxhall model has recently cel-ebrated the centenary of the Swedish Winter

Reliability Trial by retracing the steps of the original event. The Prince Henry model, owned by Alisdaire Lockhart of Selkirk, was driven from Gothenburg to Stockholm and back again, closely following the 1912 route, completing 620 miles (nearly 1,000 kms). Lockhart shared the driving with Andrew Duerden, Vauxhall’s Archivist. Kay Mordza, of the Swedish Vauxhall Owners Club, who arranged the journey, part-nered them on the event. The car never missed a beat and averaged over 40 mph for the entire event (cruising at 55mph

on open roads) and achieving 30 mpg.

In 1912, Percy Kidner, Vauxhall’s Managing Director, drove the Prince Henry model. He was the fastest entrant on the event, but incurred pen-alty points by arriving too early at checkpoints. The 2012 team were able to visit many of the points from the origi-nal route during their journey. At Norrkoping they visited the Standard Hotel building where the original photograph was recreated.

Alisdaire Lockhart’s long and painstaking reconstruction of the Prince Henry model paid dividends during the event with a reliable and speedy perform-ance from the vehicle.

Throughout June, around 30 UK automotive sites will open their doors to young people, as

part of government’s ‘See Inside Manufacturing’ initiative, aim-ing to challenge perceptions of the industry and encourage more students to consider a career in engineering.

Automotive companies across the UK will host a range of hands-on activities designed to highlight the career oppor-tunities within one of the UK’s most diverse industries. Part of a comprehensive nation-al programme of events, the UK automotive sector is set to inspire the next generation of budding engineers.

Insight Into ManufacturingLaunched by government

and supported through the Automotive Council, the motor industry pioneered the very first ‘See Inside Manufacturing’ initiative last year, providing students with a valuable insight to modern manufacturing.

The initiative aims to chal-lenge perceptions that the UK has an outdated manufactur-ing sector and encourage more young people to take up Science, Technology, Engineering and Mathematics (STEM) subjects, in order to boost the UK’s skills base. Students and teachers who responded to a survey of last year’s automotive pilot were exceptionally positive lead-ing Business Secretary, Vince

Cable, to announce its return and expansion to the aerospace, defence, and food and drink sectors.

Next Gen EnginnersSpeaking on behalf of the

automotive sector, Paul Everitt, SMMT Chief Executive, said, “Despite the economic chal-lenges, these are exciting times for everyone in the UK auto-motive sector. Our industry continues to attract high lev-els of international investment, maintaining the country’s position right at the heart of global low carbon technology innovation. With investment, government support and a wealth of new innovative prod-ucts set to be built here, there’s never been a better time to pur-sue an automotive career.”

Business Minister Mark Prisk said, “See Inside Manufacturing is about changing perceptions of modern manufacturing and showing young people, teachers

and careers advisers that the industry offers interesting and rewarding job opportunities.

“I’m delighted that SMMT and the automotive sector are once again pledging their sup-port to the programme following the successful trial last year. It’s encouraging to have iconic names like Allied Vehicles, Aston Martin, BMW, Honda and Jaguar Land Rover all signing up to take part.

“Last year thousands of peo-ple got to see just what exciting opportunities lie in the sector and wider supply chain, and I urge people to come along and see for themselves what modern manufacturing is all about.”

More than 700,000 people are employed across design, engi-neering, manufacturing, supply chain, aftermarket and retail sectors with UK engineers and executives respected around the world. Industry takes on thousands of automotive apprentices each year and looks to initiatives such as See Inside Manufacturing to ensure it con-tinues to attract the best and brightest young talent.

To find out the activities that major automotive companies, Aisin UK, Allied Vehicles, Aston Martin, BMW, Calsonic Kansei, Caterpillar, Honda, Jaguar Land Rover, JCB, JewelUltra, Lotus, Michelin, Millbrook, MINI, Rolls-Royce, Schaeffler and Vauxhall, are staging in June as part of the ‘See Inside’ programme.

The key aims of the gruelling

schedule will be to leave visitors “educated,

motivated and enthusiastic” towards

the French brand’s unique range of 100

percent electric vehicles including Fluence ZE,

Twizy and Kangoo Van ZE

Automotive companies across the UK will host a range of hands-on

activities designed to highlight the career opportunities within one of the UK’s most

diverse industries

Vauxhall commemorates winter trail centenary

UK automotive delivers support to ‘See InsideManufacturing’ initiative returns

Auto Monitor

G L O B A L W A T C H2611 JUNE 2012

GM posts record sales in China for May

GM said that it sold 231,183 vehicles in China last month, setting a record for May. The automaker said sales were up 21.3 percent over May 2011 and up 1.7 percent from April 2012. Sales for GM’s Wuling brand in China were up 34 percent to set a May record as demand jumped for minivans, Chevrolet sales rose 13.1 percent to set a May record, fuelled by sales of the Cruze and New Sail vehicles, the company said. Buick and Cadillac sales were each down slightly from the same month a year ago. Year-to-date sales for GM and its joint ventures in China are up 11.5 per-cent from the same five months last year. The company said it sold a record 1.2 million vehicles in China during that time.

A123 Systems to hire 400 workers

Battery maker A123 Systems Inc said it plans to hire as many as 400 workers in coming months for its manufacturing plants in Livonia and Romulus — a move that an analyst said is tied to fulfilling promises made for state and federal subsidies. The Massachusetts-based lithium-ion battery manufacturer said the additional employees are needed to ‘ramp up production and sat-isfy demand’ for its power-grid and commercial transportation businesses. A123 has about 780 employees in Michigan. New workers would be added at a 100-per-month pace beginning this month, the spokesman said. If the company follows through

with its plan, by fall it will have replaced the workers it lost late last year after a round of layoffs.

“Ramping production is cru-cial so that A123 can achieve better economies of scale on its batteries,” said Andrea James, an industry analyst with Minneapolis-based Dougherty & Co. “Hiring levels are tied to fed-eral and state government grant disbursements, so A123 is going to want to demonstrate that it has a healthy-sized work force in keeping with its promises.” A123 in April received a two-year extension on its deadline to spend a $249.1 million grant from the federal government, originally received in 2009. The money was to be used for the construction of new lithium-ion battery manufacturing facilities in Michigan. A123’s Livonia plant opened in 2010, and its Romulus plant opened last year. The com-pany had $120 million left of the $249.1 million grant.

The hiring announcement comes after the company has hit financial problems. In March, A123 said it would spend about $55 million to replace defec-tive battery packs in five battery packages that were assembled at its plant in Livonia.

In addition, financial losses have accelerated. In its 2011 earn-ings, A123’s loss grew 69 percent to $257.7 million from the year earlier. And in April the company reported a first-quarter loss of $125 million — a 133 percent increase from the $53.6 million loss during the same quarter in 2011.

A123 then said it had “retained an outside adviser to provide

financial strategic advisory services in connection with our ongoing strategic efforts and evaluation of strategic alter-natives.” One of the strategic alternatives that money-losing companies often consider is sell-ing parts or all of the business.” In Michigan, A123 also has a research facility in Ann Arbor.

Mazda may cut 250 jobs in Europe, US

Mazda plans to cut 250 jobs, a quarter of its staff in Europe and the US, as it reorganizes sales management in Japan and overseas, the Nikkei newspa-per reported. The cuts will be implemented this fiscal year, the paper added. The Japanese

automaker, which has posted losses for four straight years on sluggish sales and a strong yen, will reduce staff at its subsidi-ary in Germany by a third to just under 200 workers, the busi-ness daily said. Mazda plans to reduce staff in the US, where it has sales sections in California and Michigan, by 20 percent to around 550 workers, the paper added. Last month, 107 of Mazda’s US employees signed up to take buyouts as part of a restructuring of US operations.

The company does not plan to cut jobs in Japan but will reor-ganize sales administration operations in June by relocating certain workers to its head office in Hiroshima from the Tokyo and Osaka offices, the daily reported. Net profit for the automaker in its fiscal fourth quarter fell 48 per-cent to 5.1 billion yen (around $63 million), as the company was hit hard by falling global sales, high R&D costs and heavy reliance on exports that make it vulner-able to the strong Japanese yen. In a move to cut costs, Mazda last week announced a deal with Fiat to jointly develop the next generation of Miata/MX-5 and Alfa Romeo Spider roadsters on a shared Mazda platform. The joint venture does not include any equity tie-ups.

AGS Automotive to expand in Sterling Heights, create jobs

AGS Automotive will invest as much as $21.2 million to expand in Sterling Heights and will create up to 90 jobs, accord-ing to the Michigan Economic Development Corp. The manu-facturer of automotive bumper system assemblies will receive a $900,000 incentive from the Michigan Strategic Fund to aid in the expansion. It plans to use and upgrade a vacant facility.

“AGS plays an important role in our automotive supply chain and its decision to expand here demonstrates that Michigan is a great place to do business,” MEDC President and CEO Michael Finney said in a state-ment. “This new investment shows Michigan’s highly com-petitive business climate and world-class workforce mean real opportunities for leading-edge companies.” The city of Sterling Heights also has offered the company a tax abatement for the expansion project.

GM confirms plans to close line at Oshawa plant

GM confirmed that it plans to close its consolidated assembly line within its Oshawa assembly plant in Ontario in a year, which could mean the layoff of about 2,000 workers. The line current-ly builds the current generation Chevrolet Impala and overflow of the popular selling Chevrolet Equinox. GM said in a state-ment that it plans to gradually eliminate its three shifts on the consolidated line throughout the year, starting with the third shift in the fourth quarter of this year. The Detroit automaker noted that the factory was originally scheduled to close in 2008, but demand for the Impala and the addition of the Equinox produc-tion extended its life.

“It is too early to predict accu-rately the job impacts related to these scheduling actions which will unfold over the next year as some employees may elect to retire and others will be on indefinite layoff,” GM Canada communications manager Adria MacKenzie said in a statement. GM said it does plan to eliminate a second shift in the first quarter of next year before shutting down the line completely in June 2013 when production of the Impala is scheduled to end. Chris Buckley, president of CAW Local 222, said he received notice Friday of GM’s decision, though it wasn’t a sur-prise. He said in talks for the past year, GM wouldn’t commit to giv-ing the plant new product.

“What we find offensive is Canadian auto workers helped save this company,” Buckley said. “During the auto crisis, our work-ers both active and retired, were forced to make significant sac-rifices in order for the Canadian government to loan the funds (for the company) to survive.” GM also builds the Buick Regal, Cadillac XTS and Chevy Camaro at what’s called its flex assembly line within the Oshawa plant. That line is supposed to get a percentage of the all-new Chevy Impala, but Buckley said GM hasn’t told them yet what the percentage will be. GM also will build the all-new Impala at its Detroit-Hamtramck assembly plant. The Oshawa plant in total employs 4,000 workers, he said. The CAW is set to begin negotia-tions this summer with GM on a new three-year contract. Its con-tract expires in September.

International auto round-upThe European Commission

is likely to soften its stance on new-car CO2 emissions. The EU has told automakers to cut average CO2 emissions of new cars sold in Europe to 130 grams per kilometre by 2015 or they will face financial penal-ties. Car company executives say investments in technology to reach the target is heaping more pressure on tight profit margins as they struggle with declining sales in Europe and overcapacity. The EU may sof-ten the target by considering “infrastructure, driver behav-iour and other measures” when measuring compliance with the 130 g/km target, German daily Die Welt reported. The paper cited documents pre-pared by policy group CARS 21,

whose members include min-isters from EU member states, auto executives, EU com-missioners, and trade union representatives. Fiat CEO Sergio Marchionne in his role

as president of the ACEA indus-try association and European I ndu st r y C om m i s sioner Antonio Tajani will make pub-lic the documents soon, the report said.

Volkswagen AG Chief Executive Martin Winterkorn bolstered the top ranks of the company’s China operations, replaced three senior Audi man-agers and appointed a new head of its truck business as part of a management shakeup at the German automaker striving to become the global industry leader.

Jochem Heizmann, head of VW’s fast-growing truck operations, will remain on the company’s management board with responsibility for China, Volkswagen’s single largest mar-ket. Leif Ostling, CEO of VW’s Swedish truck subsidiary Scania AB, will join the board to help integrate Scania, another new acquisition, MAN SE, and VW’s own commercial vehicles unit into a heavy truck group, VW said. Winterkorn is reassigning more than 20 senior managers as he pushes Europe’s largest car-maker to achieve a longstanding objective to become the leader in global vehicle sales, profita-bility, technology and quality by 2018. The Wolfsburg, Germany-based carmaker is close to achieving many of those targets.

“Our company has grown strongly and become more international in recent years,” Winterkorn said in a statement. “This fundamental reorgani-zation is the right response to the increasing challenges. At the same time, we are laying the foundations for keeping the group and its brands on their suc-cessful course even in a difficult

market environ-ment,” he said.

Volkswagen’s premium Audi car-maker, its most lucrative busi-ness, will replace three board mem-bers as part of a reorganisation that has been flagged for weeks. Ulf Berkenhagen, Audi’s purchasing chief, will move to take over pro-curement at MAN. V W purchasing executive Bernd Martens will take Berkenhagen’s place at Audi. Bent ley ch ief Wolfgang Duerheimer will replace Aud i development head Michael Dick, and, in one of the most high-profile moves, VW brand marketing head Luca de Meo will take over Audi sales from Peter Schwarzenbauer. Dick and Schwarzenbauer are leaving the company. Audi’s US chief Johan De Nysschen announced his departure recently. Audi sourc-es said he had received another job offer, and his resignation was not related to the board shakeup at Audi. VW commercial vehi-cles chief Wolfgang Schreiber will move to Bentley, replacing Duerheimer as the head of the stately British marque.

Volkswagen has grown dramatically in recent years, through acquisitions, such as MAN and Scania, and by vir-tue of its presence in emerging markets, notably China. VW said the decision to have a board member responsible for all busi-ness relating to China “reflects China’s importance as the world’s largest car market.” Last year, Volkswagen earned Euro 15.4 billion, or $20.5 billion, in net income and Euro 11.3 bil-lion or $15 billion, on sales of 8.3 million vehicles. It aims to sell 10 million a year by 2018.

EU may soften stance on CO2 emissions target

VW shakes up its board, laying foundations for growth

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T H E O T H E R S I D E3011 JUNE 2012

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Getting Personalwith Warren Harris, President and Chief Operating Officer, Tata Technologies

Harris brings a unique perspective to the leadership of an engi-neering services company – that of an engineer. He has been with Tata Technologies for more than 22 years.

Before being named President and Chief Operating Officer in 2010, his roles in the organisation included engineering and technical man-agement. In 1998, he was named CEO, INCAT, one of the two companies that came together to form today’s Tata Technologies. Beginning in 2005, he managed the worldwide integration of the Tata Technologies and INCAT organisations, establishing Tata Technologies as a global force in engineering services outsourcing.

Harris is a recognised authority on global manufacturing. His exper-tise has been leveraged by media organisations including BusinessWeek, Crain’s Detroit Business, Automotive News, The Detroit Free Press, Gannett News Service and Automotive Engineering International. He also has contributed his insights to the book, “Globality – Competing with Everyone from Everywhere for Everything,” published by the Boston Consulting Group.

In addition, he has presented to the National Academy of Sciences (Washington, DC), Cambridge University, The Center for Automotive Research and the Society of Automotive Engineers; as well as at international forums hosted by Frost & Sullivan, and McKinsey and Associates.

Harris holds a Bachelor of Engineering Degree (Honors), earned in 1986 from the University of Wales Institute of Science and Technology. He is a member of the Institute of Mechanical Engineers and is a Chartered Engineer. He is currently the Chairman of the Tata Network Forum in North America. In October 2011, Harris graduated from the Harvard Business School Advanced Management Program.

In Person

An experience I won’t forget…

If not the auto industry where would you be?A teacher or a football (soccer) coach. Teaching has always been a passion that I’ve subordinated to my business career. As far as football is concerned I’m from the North West of England where “football is not a question of life or death - its far more important than that.” I was never good enough to play professionally so I did the next best thing and took my coaching badges in the late 90’s. My commitments at Tata Technologies have not allowed me to coach for a number of years but at some point in the future I’d like to get back to it

What car do you drive? What do you dream of driving?I currently drive a Jaguar XJL and absolutely love it. My dream car is Jaguars CX75 - the new super car that Jaguar is developing in conjunction with Williams F1

Your most recent indulgence….I recently took my wife for a weekend in New York without the kids. I have 4 boys and when I’m not working I’m invariably involved in a project or sport with them. It was wonderful to sneak away for a weekend, spend time with my wife, eat in fabulous res-taurants, take in a Broadway show and hang out in one of the most exciting cities in the world

What are you currently reading?Steve Jobs by Walter Isaacson - for the second time. An absolute classic!!!!

What are you doing when not talking Auto?All of my sons play soccer so when I’m not working I tend to be driving to or watching one of their games

Outdoor activity you would miss office for?I like to run. If I’m not in the office, and not at one of my kids games, I can often be found on one of my 5K or 10K routes close to my home in Michigan

Where did you go for your last holiday?Sanibel Island - a small island in the Gulf, just off the coast of Florida

You get angry when…One of the values that we’ve worked hard to institutionalize at Tata Technologies is the importance of being “Straight forward and honest”. I get angry when people are eco-nomical with the truth

What is the one thing you would like to change about yourself?I struggle to find balance at times. I’m very goal driven and very ambitious for Tata Technologies. Sometimes this can be all consuming

Best thing to have happened to you…Easy - being blessed to be the father of four sons

My first trip to India. I arrived at one AM and the road between the International Airport in Mumbai and the hotel was under con-struction and the road workers where living next to the road. There were goats and pigs, children playing and families preparing and eating food. The next day I visited several IT delivery centres in Pune and I remember thinking that I could have been in Silicon Valley - I was so impressed. That study in contrast was one of the reasons that I fell in love with India. A love affair that has defined the last seven years of my career.

ddition, he has presented to the National Academy of Sciencesngton, DC), Cambridge University, nter for Automotive Research and the of Automotive Engineers; as well as

national forums hosted by Frost & n, and McKinsey and Associates.is holds a Bachelor of Engineering (Honors), earned in 1986 from theity of Wales Institute of Science andogy. He is a member of the Institute of

nical Engineers and is a Chartered er. He is currently airman of the

etwork Forum h America. In r 2011, Harrised from the d Business

Advanced ement m.

Regn. No. MH/MR/WEST/20/2012-2014. RNI No. MAHENG/2000/11414Licenced to post at Mumbai patrika channel sorting office G.P.O. Mumbai 400 001.Date Of Mailing:16th & 17th Fortnightly Issue. Date Of Publication: 13th of Every Month

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