General Motors Corp and its financing affiliate GMAC on Tuesday announced programs to make it easier for car and truck buyers to get financing, a day after GMAC agreed to sell the government a $5 billion stake.
Through Jan. 5, GM will offer interest rates of zero percent to 4.9 percent on loans of up to five years on various 2008 model year vehicles, and 3.9 percent to 5.9 percent on some 2009 vehicles. Many of the vehicles also carry cash discounts of $500 to $4,250.
The move is a bid to capitalize on GMAC's separate plan to provide auto financing to more U.S. consumers. GMAC will extend loans to retail buyers with credit scores of 621 or higher. In October it had restricted loans to borrowers with scores of 700 or higher.
Many analysts consider borrowers with credit scores of 620 or lower to be "subprime." Dealer wholesale financing is unchanged, GMAC said.
GMAC is owned by GM and private equity firm Cerberus Capital Management LP [CBS.UL].
The changes may help bolster sales at GM, the nation's largest automaker, following a 41 percent plunge in November.
GMAC has traditionally provided the bulk of financing for GM's retail customers and the floorplan financing that dealers rely on to carry car and truck inventory.
Mark LaNeve, GM's sales and marketing chief, said the lower financing costs will encourage customers to "get back into the game."
Source: Agencies
Wednesday, December 31, 2008
Tuesday, December 30, 2008
RCom plans to invest Rs 4,000 crore on 3G network
Reliance Communications is looking forward to participate in the 3G auction slated for next year, company chairman Anil Ambani said Tuesday.
The company has planned an investment of Rs 2,000 crore to Rs 4,000 crore on 3G services, he said.
Ambani also said the company would participate in the auction for spectrum on a nationwide basis and not restrict to a few circles.
The company has planned an investment of Rs 2,000 crore to Rs 4,000 crore on 3G services, he said.
Ambani also said the company would participate in the auction for spectrum on a nationwide basis and not restrict to a few circles.
Indian IT cos eye Japanese outsourcing biz
After neutralising their mother-tongue accent and mastering the American drawl, Indian geeks are busy learning Japan’s Kanji, Katakana and Hiragana symbols.
Reason: The recession is eating into the volume of outsourced IT work from the US; and after the US, Japan is an important market from the IT perspective, more so during the current period.
Take the case of Suman Reddy Ragidi, a business analyst of Cognizant. Japanese language training has enabled her to converse with clients both in formal as well as informal situations.
“The training has also made it easier for me to understand all project documentation written in Japanese,’’ says Reddy Ragidi. On its part, Cognizant runs foreign language training in its offices and its mandatory for employees to enroll in such language courses.
“Language is an important aspect of culture and such training is helpful in everyday communication. Importantly, employees are able to articulate their viewpoints to clients,’’ says K Venkataraman, director of Cognizant.
The Japanese IT services market is valued at $108 billion, according to a recent survey by Nasscom and Pricewaterhouse-Coopers. India has bagged only 13 per cent of this offshoring pie. Moreover, demand for software is primarily driven by the BFSI (banking, financial, services and insurance) and manufacturing companies which consume 42 per cent of the total IT services.
Another Chennai-based IT player Infoview Technologies, whose business comes fully from Japanese majors, is making sure its employees know Japanese symbols by heart. Around three-fourth of the company’s employees have learnt the language and the top management team which accounts for 10 per cent of the workforce has reached the ‘near native level’ in terms of mastering the language.
The company also recently launched an online Japanese learning software for beginners in India. JWEIC is developed by WEIC Corporation, a Japanese company that is into production and sales of e-learning language and learning management systems. Infoview, which has the rights to sell the software in India and Singapore, is targeting executives and college students alike for the online course. It is targeting 10,000 learners during the first year.
Similarly, Noida-based Nucleus Software which generates half of its revenues from Japan is encouraging its employees to learn the language. “Right now, we are utilising the services of interpreters and translators,’’ says chief executive and managing director, Vishnu Dusad.
For Indian IT entrepreneurs like Chandrasekaran of Infoview Technologies and Dusad of Nucleus the lure for doing business with ‘The Land of the Rising Sun’ is the importance that the Japanese place to long-term relationships. “It’s tough to crack the market initially,” says Cheran Chandrasekaran, CEO, Infoview Technologies.
Source: Times of India
Reason: The recession is eating into the volume of outsourced IT work from the US; and after the US, Japan is an important market from the IT perspective, more so during the current period.
Take the case of Suman Reddy Ragidi, a business analyst of Cognizant. Japanese language training has enabled her to converse with clients both in formal as well as informal situations.
“The training has also made it easier for me to understand all project documentation written in Japanese,’’ says Reddy Ragidi. On its part, Cognizant runs foreign language training in its offices and its mandatory for employees to enroll in such language courses.
“Language is an important aspect of culture and such training is helpful in everyday communication. Importantly, employees are able to articulate their viewpoints to clients,’’ says K Venkataraman, director of Cognizant.
The Japanese IT services market is valued at $108 billion, according to a recent survey by Nasscom and Pricewaterhouse-Coopers. India has bagged only 13 per cent of this offshoring pie. Moreover, demand for software is primarily driven by the BFSI (banking, financial, services and insurance) and manufacturing companies which consume 42 per cent of the total IT services.
Another Chennai-based IT player Infoview Technologies, whose business comes fully from Japanese majors, is making sure its employees know Japanese symbols by heart. Around three-fourth of the company’s employees have learnt the language and the top management team which accounts for 10 per cent of the workforce has reached the ‘near native level’ in terms of mastering the language.
The company also recently launched an online Japanese learning software for beginners in India. JWEIC is developed by WEIC Corporation, a Japanese company that is into production and sales of e-learning language and learning management systems. Infoview, which has the rights to sell the software in India and Singapore, is targeting executives and college students alike for the online course. It is targeting 10,000 learners during the first year.
Similarly, Noida-based Nucleus Software which generates half of its revenues from Japan is encouraging its employees to learn the language. “Right now, we are utilising the services of interpreters and translators,’’ says chief executive and managing director, Vishnu Dusad.
For Indian IT entrepreneurs like Chandrasekaran of Infoview Technologies and Dusad of Nucleus the lure for doing business with ‘The Land of the Rising Sun’ is the importance that the Japanese place to long-term relationships. “It’s tough to crack the market initially,” says Cheran Chandrasekaran, CEO, Infoview Technologies.
Source: Times of India
AMD raises layoff count to 600 now
US chip maker Advanced Micro Devices Inc said that it laid off 600 workers, 100 more than first announced, and was taking yet another charge related to its $5.4 billion purchase of ATI Technologies Inc.
AMD said it cut 600 employees in its most recent quarter, compared with the 500 it had originally planned. As a result, the company now expects to record $70 million in restructuring charges, versus the $50 million it previously predicted.
In addition, the new cost reductions would result in more charges in the first half of 2009, although AMD would not provide an estimate.
The chip maker also said it would take a goodwill impairment charge related to its 2006 acquisition of graphics chip maker ATI. AMD said its decision was "based on the results of an updated, long-term financial outlook" for the business, according to a filing with US securities regulators.
The company said it could not estimate the size of the charge, which would be material and non-cash, according to the filing with the US Securities and Exchange Commission. A company spokesman declined to provide any further detail.
It is the latest charge AMD has taken related to its purchase of ATI. In the June quarter, the impairment charge totalled more than $800 million.
In the December quarter, AMD said it would also take a $20 million impairment charge on its investment in flash memory chip maker Spansion Inc.
Source: Agencies
AMD said it cut 600 employees in its most recent quarter, compared with the 500 it had originally planned. As a result, the company now expects to record $70 million in restructuring charges, versus the $50 million it previously predicted.
In addition, the new cost reductions would result in more charges in the first half of 2009, although AMD would not provide an estimate.
The chip maker also said it would take a goodwill impairment charge related to its 2006 acquisition of graphics chip maker ATI. AMD said its decision was "based on the results of an updated, long-term financial outlook" for the business, according to a filing with US securities regulators.
The company said it could not estimate the size of the charge, which would be material and non-cash, according to the filing with the US Securities and Exchange Commission. A company spokesman declined to provide any further detail.
It is the latest charge AMD has taken related to its purchase of ATI. In the June quarter, the impairment charge totalled more than $800 million.
In the December quarter, AMD said it would also take a $20 million impairment charge on its investment in flash memory chip maker Spansion Inc.
Source: Agencies
India delays 3G spectrum auction
The Government of India has further postponed the auction of the much-awaited 3G spectrum in the country taking into consideration the concern of the prospective applicant companies, say reports.
According to a report, the last date of receiving application has been extended to January 20 from January 5. Though the auction was supposed to take place before December 31, it was later postponed to January 16.
Earlier there were reports that the auction would be delayed as the Department of Telecom has not received the Cabinet's approval on vital proposals relating to the services.
Also it was said that the Defence Ministry, which holds the spectrum, may not be able to vacate the same before the auction date.
According to a report, the last date of receiving application has been extended to January 20 from January 5. Though the auction was supposed to take place before December 31, it was later postponed to January 16.
Earlier there were reports that the auction would be delayed as the Department of Telecom has not received the Cabinet's approval on vital proposals relating to the services.
Also it was said that the Defence Ministry, which holds the spectrum, may not be able to vacate the same before the auction date.
Monday, December 29, 2008
Jet Airways, Kingfisher to cut air fares in January
Private air carriers Jet Airways and Kingfisher announced reduction in fares following steep fall in Aviation Turbine Fuel prices.
While Jet Airways said it was reducing air fare ranging 15-40 per cent from tomorrow, Kingfisher Airlines said it would effect fare cut across its network from January 1.
"Jet Airways is reducing basic fares ranging from 15-40 per cent across most of the domestic flights with effect from tomorrow," a Jet Airways spokesperson said.
The fare cut would be across all domestic sectors, the spokesperson said tonight.
Civil Aviation Minister Praful Patel had repeatedly asked the airlines to pass on the benefit of sharp drop in ATF prices to passengers. Earlier in the day, Kingfisher Airlines said it would effect a fare cut across its network from January 1.
"Kingfisher Airlines will begin the New Year on an aggressive note by slashing fares on its network," Kingfisher Airlines Chairman, Vijaya Mallya, said in a statement here. He, however, did not specify the quantum by which fares would come down.
The current low prices of ATF allows Kingfisher to pursue an opportunity to significantly increase market share by offering the fine five-star flying experience at reduced fares, he said.
Earlier, Kingfisher had said that it would effect fare cut only after the government classifies ATF in the Declared Goods category. The airlines across the board are demanding the Government to classify ATF in the Declared Goods category.
Under the declared goods category, there will be a uniform 4 per cent sales tax on air fuel across the country. The proposal is now before the Parliament.
However, several state governments are likely to oppose the uniform taxation as it would cause revenue loss to them. Now, the sales tax varies from four per cent to 32 per cent, and accounts for over 35 per cent of airlines' operational cost.
Over the last four months, there has been a sharp decline in ATF prices. While some air carriers earlier this month reduced the fuel surcharge between Rs 200 and Rs 400, they did not touch the basic fare.
While Jet Airways said it was reducing air fare ranging 15-40 per cent from tomorrow, Kingfisher Airlines said it would effect fare cut across its network from January 1.
"Jet Airways is reducing basic fares ranging from 15-40 per cent across most of the domestic flights with effect from tomorrow," a Jet Airways spokesperson said.
The fare cut would be across all domestic sectors, the spokesperson said tonight.
Civil Aviation Minister Praful Patel had repeatedly asked the airlines to pass on the benefit of sharp drop in ATF prices to passengers. Earlier in the day, Kingfisher Airlines said it would effect a fare cut across its network from January 1.
"Kingfisher Airlines will begin the New Year on an aggressive note by slashing fares on its network," Kingfisher Airlines Chairman, Vijaya Mallya, said in a statement here. He, however, did not specify the quantum by which fares would come down.
The current low prices of ATF allows Kingfisher to pursue an opportunity to significantly increase market share by offering the fine five-star flying experience at reduced fares, he said.
Earlier, Kingfisher had said that it would effect fare cut only after the government classifies ATF in the Declared Goods category. The airlines across the board are demanding the Government to classify ATF in the Declared Goods category.
Under the declared goods category, there will be a uniform 4 per cent sales tax on air fuel across the country. The proposal is now before the Parliament.
However, several state governments are likely to oppose the uniform taxation as it would cause revenue loss to them. Now, the sales tax varies from four per cent to 32 per cent, and accounts for over 35 per cent of airlines' operational cost.
Over the last four months, there has been a sharp decline in ATF prices. While some air carriers earlier this month reduced the fuel surcharge between Rs 200 and Rs 400, they did not touch the basic fare.
Microsoft advised to lay off over 9,000 employees
The world's top software firm Microsoft has been asked to cut its workforce by 10 per cent, or about 9,100 employees, to tell the market that profits are more important than revenue growth in difficult times.
Brokerage firm Oppenheimer & Co's analyst Brad Reback has said in a report on Microsoft that such layoff exercise "would be a healthy move for the company."
The move would be well received by the market and would "signal that profitability is more important than revenue growth during this very difficult time," Reback added.
Calling for a 10 per cent reduction on the company's payrolls, Reback said in his report for the institutional investors of Microsoft that this would result in an approximately 10 per cent gain in its earnings per share.
The software giant had close to 91,000 employees on its payrolls at the end of July-September quarter.
Earlier in October, Microsoft had put in place a hiring freeze on some of its divisions, such as entertainment and devices businesses that make products like X-Box and Zune.
There have been some unconfirmed reports on blogs that the company would announce some major layoffs in the first month of 2009.
Microsoft is scheduled to release its second-quarter results for the fiscal year 2008-09 on January 22.
Battling the economic crisis, companies in their bid to save costs, have announced more than one lakh job cuts in the month of December alone in the US, while so far in 2008 there have been close to 20 lakh layoffs.
Source: Agencies
Brokerage firm Oppenheimer & Co's analyst Brad Reback has said in a report on Microsoft that such layoff exercise "would be a healthy move for the company."
The move would be well received by the market and would "signal that profitability is more important than revenue growth during this very difficult time," Reback added.
Calling for a 10 per cent reduction on the company's payrolls, Reback said in his report for the institutional investors of Microsoft that this would result in an approximately 10 per cent gain in its earnings per share.
The software giant had close to 91,000 employees on its payrolls at the end of July-September quarter.
Earlier in October, Microsoft had put in place a hiring freeze on some of its divisions, such as entertainment and devices businesses that make products like X-Box and Zune.
There have been some unconfirmed reports on blogs that the company would announce some major layoffs in the first month of 2009.
Microsoft is scheduled to release its second-quarter results for the fiscal year 2008-09 on January 22.
Battling the economic crisis, companies in their bid to save costs, have announced more than one lakh job cuts in the month of December alone in the US, while so far in 2008 there have been close to 20 lakh layoffs.
Source: Agencies
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