gemuhope

Geely set for control of London taxi maker
China\’s Geely Group is set to increase its grip on lossmaking London black cab taxi maker Manganese Bronze by taking a controlling stake and moving more of the production of the TX4 cab to China.
Geely, China\’s largest privately owned car maker, is also in talks to buy Ford\’s Swedish unit Volvo — another of Europe\’s venerable motoring names.

A London taxi crosses Waterloo Bridge in London on July 29, 2009.? [Agencies]
Manganese Bronze said on Wednesday it was considering a placing of new shares with 20 percent shareholder Geely at 70 pence per share to give the group a controlling stake, and announced plans to shift production of bodies and chassis for the TX4 from its Coventry plant in central England to Shanghai.
The company said the share placing would give Geely at least a 51 percent stake in the group, which had a market capitalisation on Wednesday of just under 26 million pounds ($40 million).
"This is a bit of a turning point for us," Manganese Bronze\’s chief executive John Russell told Reuters after the group reported a pretax loss in 2009 of 7.3 million pounds.
"Seeing the immediate benefits of our relationship with Geely coming through in the TX4 we are now at a point where we can think about building a closer relationship with our Chinese partner."
Hong Kong-listed Geely Autombile has not made a decision on whether to increase its stake in Manganese Bronze yet, a company executive told Reuters.
Cab wars
The black cabs that Manganese is now making in China are traditionally associated with London, where licensed drivers must pass a test known as \’the knowledge\’ to show they know all the roads, landmarks and places of interest within a six-mile radius of Charing Cross station.
Competition in the market, once controlled by Manganese\’s TX series of vehicles, has heated up over the last 18 months with the entry of the Mercedes Vito model, distributed by Eco City Vehicles.
Eco City has since grabbed a 30 percent slice of the market and in direct contrast to its rival has announced plans to increase production in Coventry and hire more people to meet demand.
Manganese Bronze, which halted dividend payouts in 2008, said on Wednesday that shifting body and chassis production to Shanghai would result in cutting around 60 jobs in Coventry but the TX4 cab would continue to be assembled in England. Manganese said it has already reduced its workforce to around 359 from a peak of around 500 employees before the recession began.

Analysts at Collins Stewart said Geely had come to the rescue of Manganese Bronze, which has struggled with radiator problems, discounting and falling market share.
"Such a move (a placing) would effectively bring in 14 million pounds ($21.50 million) of cash and reduce the group\’s dependency on stocking loans as a source of capital," they said.
London-born driver Brian, who has been a cabbie for 17 years, said greater overseas control could mean lower quality parts and therefore more reliability issues, noting how cabs no longer carry a "Made in Coventry with pride" sign.
"We\’re their bread and butter but they treat us like the dirt on their shoes," he said, showing a Reuters reporter a sheaf of repair bills and rust spots on his cab, which is only five years old.
The firm said in response it would never use any parts that didn\’t pass strict UK regulations, or their even more stringent internal standards.
Shares in Manganese Bronze, which have lost almost a quarter of their value so far this year, were down 0.6 percent at 85 pence at 1310 GMT, far below the high of over 950 pence achieved in May 2007.

Mercedes\’ domestic sales to outdo UK
Mercedes-Benz believes its strong market success in China comes from the German carmaker\’s ability to assimilate the trends and demands of the local market.
That strategy has been key to zipping ahead in China\’s fiercely competitive and dynamic automobile market, according to Klaus Maier, president and CEO of Mercedes-Benz (China) Ltd.
Just last month, his company posted record year-on-year growth of 160 percent in China, far outpacing Audi\’s 62 percent growth and BMW\’s 97 percent.
Maier credits the company\’s success in China to a comprehensive understanding of the market.
By all accounts, the strategy has served the Stuttgart-based company well. In the first two months of 2010 alone, for instance, it enjoyed vehicle sales of more than 15,300 units.
This translates, on average, to approximately 7,500 units per month thus far in 2010 – compared with the company\’s typical delivery of 5,500 in 2009.
Mercedes executives see this as a long-term trend on the mainland. "Our successful efforts in formulating such a localized strategy have provided us with increasing and validated confidence looking forward, as we expect to continue growing at a higher rate than our competitors, as well as the overall and luxury auto market in 2010," said Maier.
This is expected to have global implications for product sales. This year, added Maier, "we expect China to overtake the UK to become our third largest market worldwide".
Knowledge of the Chinese marketplace, in terms of economics and demographics, and adapting sales and marketing activities to the fast changing environment has made Mercedes the top brand among China\’s growing numbers of wealthy people.
Mercedes-Benz, for example, has long been straddled with a "Big Benz" reputation – an automaker dedicated to bigger, more traditional luxury cars.
Following studies of the Chinese market, however, "we have made a point to diversify our product portfolio – even introducing China-specific models – to reflect market demand", said Maier. "Supported by enhanced marketing activities the Mercedes brand has broadened its image, and is more identifiable to a much wider customer base."
Quick to realize the trend for entry-level models with smaller engine sizes, the German-luxury brand launched a wide range of products with 3.0 liter or less-sized engines last year, including its B-Class and smart car.
"The reason for this, in part, lies in the recognition of our younger audience with an average age below 40-years-old, which has the majority of purchasing power in the country," said Maier.
Mercedes\’ German rival BMW has also realized that its customers in China are younger and more discerning. Introducing smaller and more diversified vehicles appeals to a younger, lifestyle-oriented audience.
BMW launched its 1-series hatchback in China in 2008, and launched its smallest SUV, the X1, this January.
Catering to China\’s growing interest in a greener society, two hybrid models were also included in the luxury carmaker\’s local product launch this year.
Mercedes-Benz has also taken at first-hand look at the environmental damage accompanying China\’s breakneck industrialization.

Not surprisingly, the automaker introduced a wide range of environmentally compatible models, including the S400 HYBRID – a hybrid vehicle with a lithium-ion battery – and the fuel efficient E-Class, with its low carbon emissions, in line with customers\’ increasing desire for eco-friendly mobility.
"Mercedes Benz has carefully crafted it\’s formula for success in a business environment that can prove challenging to all carmakers," said Bjoern Hauber, vice-president of sales and marketing of Mercedes-Benz (China) Ltd. "Later this year, we will continue to expand our product portfolio, and introduce even more eco-friendly products to lead the market trend."
Additionally, Mercedes SLS AMG – an alluring sports car characterized by its dynamic performance, purist design, lightweight construction and outstanding handling – is scheduled to enter China in 2010.??

Cnooc may snag 50% of Argentine oil producer
CNOOC Ltd, China\’s largest offshore oil and gas producer, said on Sunday it will pay $3.1 billion to acquire a 50 percent stake in Argentine oil producer Bridas Corp, a deal analysts said will add to the company\’s reserves and production substantially.
"It is not only significant as a positive, long-term business strategy, but also will serve to add substantially to CNOOC\’s production and reserves immediately," said Frank Gong, vice-chairman of China investment banking at JP Morgan. The company is the sole financial adviser to CNOOC in the deal.
Based on 2009 statistics, the deal would increase CNOOC\’s proven reserves and average daily production by 318 million barrels of oil equivalent (BOE) and 46,000 BOE respectively, said a company statement.
"Bridas, with a world-class oil and gas asset portfolio, is a very good beachhead for us to enter Latin America. Through this transaction, we\’ll establish a fair presence in this region," said Yang Hua, president of CNOOC.
Currently, Bridas, through its affiliates, has oil and gas exploration and production activities in Argentina, Bolivia and Chile.
Latin America is one of the foremost growth areas in the global oil and gas business. Bridas is among the top players in the region on various fronts, including reserve additions, production growth, and low cost operations, said analysts.

Bridas itself has huge upside potential. Energy demand in Argentina is growing rapidly and the regulatory environment is evolving favorably. In addition, there are distinct growth opportunities arising from the exploration portfolio and from increased recovery rates, they said.
It has been some time since CNOOC made its last overseas acquisition, said Liu Gu, an analyst at Guotai Junan Securities.
"The deal confirms with CNOOC\’s future strategy to focus more on deep-water oil exploration and overseas expansion," said Qiu Xiaofeng, an analyst at China Merchants Securities in Shanghai, adding that the company will see accelerated growth in its overseas expansion between 2011-2015.
The deal still needs the approval of the Chinese government, and is expected to take place in the first half of 2010, according to CNOOC.

Ferrari say will not block Schumacher deal
Ferrari will not stand in Michael Schumacher\’s way if the seven-times Formula One world champion decides to come out of retirement and race for Mercedes, president Luca di Montezemolo told Reuters on Monday.

Seven-time Formula One World Champion Michael Schumacher of Germany gestures from a kart in his hometown Kerpen, near Cologne, December 13, 2009. Schumacher is close to signing a deal with Mercedes to come out of retirement and compete in Formula One next year, Germany\’s Bild newspaper reported on Saturday. [Agencies]
The 40-year-old German has worked as a consultant for the Italian team since retiring at the end of 2006 but reports say he is close to signing with Mercedes, who have taken over world champions Brawn.
The Mercedes team is run by Ross Brawn, the former Ferrari and Benetton technical director who helped Schumacher to all his titles.
Schumacher announced in September that he would work as a consultant for Ferrari for another three years. Asked if Ferrari would enforce the deal, Montezemolo said: "No, not binding."
"It\’s clear that if he decides to take another road our (consultancy) agreement will no longer be valid, that is logical. You can\’t work with a competitor and with us at the same time," Montezemolo told Reuters in an interview.
"I still haven\’t spoken to him about it. He is only a dear friend, not a team member. He is a consultant for our road cars."
Schumacher was forced to abort plans for a Formula One comeback with Ferrari because of fitness concerns in August.
NECK INJURY
He was due to replace the injured Felipe Massa but pulled out following medical checks on a neck injury sustained in a motorcycle accident earlier this year that caused him pain during testing.
Ferrari had talked about including him in their 2010 lineup as a possible third driver but those plans came to nothing with the arrival of new teams and the expansion of the starting grid from 20 to 26 cars.
Germany\’s Bild newspaper reported on Saturday that Schumacher was close to a deal with Mercedes, whose sportscar team he raced for before entering Formula One in 1991.
Mercedes GP chief executive Nick Fry said last week that a Schumacher comeback would be good for Formula One while German driver Nico Rosberg, who has signed for Mercedes for next season, said he would welcome him as a team mate.
"I hope that my team mate will be sorted out pretty soon and at the moment the rumours are very strong for Michael Schumacher," he said in a promotional video for Mercedes filmed in Abu Dhabi on Monday.
"I have no idea if it is true or not but obviously if he would join that would be an absolutely fantastic move," added the 24-year-old, who overlapped for one season with Schumacher in Formula One.
"It would be a big challenge, a great experience and so I think it would be a good thing," he said of how it would feel to race against Schumacher.

Google to \’bear consequences\’
Google "will bear the consequences" if it stops censoring search results on its Chinese website, the Ministry of Industry and Information Technology (MIIT) said on Friday.
The statement by Minister Li Yizhong at a press conference was the strongest one yet by the Chinese government over the issue since Jan 12, when the US-based Internet search giant threatened to pull out of China because of cyber attacks that it claimed originated from the country.
The Chinese government welcomes Google to expand its market share in the country if it abides by Chinese laws and regulations, Li said.
But when reporters asked him what China would do if Google stops censoring search results on its local website, Li, 65, said: "If you don\’t respect Chinese laws, you are unfriendly and irresponsible, and you will bear the consequences."
Google has been in negotiations with Chinese authorities over providing unfiltered online services since its announcement two months ago of the alleged cyber attacks and its unwillingness to continue censoring its search results on domestic website Google.cn.
But talks between the Chinese authorities and Google have made little headway, with MIIT Vice-Minister Miao Wei telling reporters earlier that there has not been any "direct contact" with the search engine.
Google was reportedly planning to stop censorship of its search results on its Chinese website within weeks, the Wall Street Journal on Wednesday cited an unnamed source as saying. The report came shortly after Google CEO Eric Schmidt said he expected his company to reach a conclusion soon in its talks with the Chinese government.
Google may end up making individual agreements with different Chinese agencies to allow it to operate some parts of its business in a patchwork arrangement, the newspaper reported.
Li on Friday did not confirm if his ministry was in talks with Google.
Still, he said Google has "done a good job" by taking up 30 percent of China\’s search engine market since it entered the country in 2007.
"If Google chooses to stay, that will be beneficial to China\’s Internet market and we welcome that," Li said.
But China respects Google\’s rights if it decides to pull out of the country and the country\’s online market will continue to grow with or without Google, he said.
Google established a joint venture in China in 2007 and launched its domestic website Google.cn. The domestic website accepts the government\’s requirement to censor some of the content such as political issues and pornography.
Such content needs to be regulated by the government, according to current Chinese laws and regulations.
The country\’s Internet market is open and government regulation of it is in line with international practices, Li said.

Quality watchdog starts HP investigation
An investigation has been launched following complaints about faulty Hewlett-Packard laptops, an official from the General Administration of Quality Supervision, Inspection and Quarantine, China\’s quality control watchdog said, xinhuanet.com reported today.
The agency said complaints over the quality of HP laptops from 60 customers have been received.
As of March 10, on a nonprofit website in China, more than 1,400 consumers had expressed their willingness to take part in a group complaint against HP over faulty laptop computers and more than 80 lawyers offered help in the case, another report on xinhuanet.com said on Friday.
On March 5, the website filed an official complaint against HP to the General Administration of Quality Supervision, Inspection and Quarantine. Within five days more than 200 consumers had officially joined the protest group.
The complaint centered on video cards that overheated and caused the laptop to malfunction. The complaints asked the quality watchdog to launch an investigation into HP laptops, hoping the government would order the company to have the faulty goods returned or replaced with new ones, and provide compensation. It was also suggested that government issued orders to launch a recall on all the faulty computers.
An unofficial alliance of more than 3,000 consumers in approximately 40 online chat groups has formed to defend their rights in the HP case before World Consumer Rights Day on March 15, according to the Friday report.

McLaren say 2010 car will be more aggressive
Formula One world champion Jenson Button will start next season with a more aggressively designed McLaren than the one Lewis Hamilton struggled with for much of this year.
"It\’s still too early to be able to say with any confidence how competitive we\’ll be," engineering director Paddy Lowe said in a Q&A provided by the Mercedes-powered team on Monday.
"All we can say with any certainty is that we\’ve approached this (20010) car more aggressively than we perhaps have in the past."
Mercedes have taken over Brawn GP, who won both titles this year. Button has since moved from Brawn to McLaren, where he will partner 2008 world champion Hamilton.
"We\’ve used the knowledge we gained from heavily developing (the) MP4-24 (car during the 2009 season) to stand us in good stead with the 25," Lowe added.
"We feel we\’re making very good progress, but, equally, we know there are some very capable teams out there too. I\’d be surprised if Red Bull Racing and Ferrari don\’t come out with very strong packages and I think Mercedes GP will produce another extremely quick car."
McLaren managing director Jonathan Neale said the team were looking forward to the new pairing.
"We know that Jenson is fully capable of learning very quickly, taking things onboard and absorbing information fast," he said.
"In fact, we are looking forward to that hunger – it will be about how we prioritise his arrival in January to take best advantage of that desire to learn and improve."
Team principal Martin Whitmarsh said McLaren, who have not won a constructors\’ title since 1998 and finished third overall this year, were well-equipped to manage the pair.
"We feel confident that, as an organisation, we\’ll be able to manage the demands and expectations of our drivers," he said.
"Lewis and Jenson are both world champions, they know what it takes to win, and I\’m sure they\’ll both be very motivated to push each other to deliver even greater results.
"It\’s my job to positively harness that competitiveness for the greater benefit of the team."

Renault echoes Ferrari pullout threat
Former champion Renault followed Ferrari\’s lead yesterday and threatened to quit Formula One at the end of the season unless the governing body rewrites the 2010 rules.

"If the decisions announced by the (FIA) World Council on the 29th of April 2009 are not revised, we have no choice but to withdraw from the FIA Formula One World Championship at the end of 2009," team boss Flavio Briatore said in a statement.

Champion Ferrari, Formula One\’s glamour team which has competed in every championship since 1950, issued a similar threat on Tuesday in response to the introduction of an optional 40 million pound (US$60.68 million) budget cap.

Toyota and the two Red Bull-owned teams have also said they cannot enter what would amount to a two-tier championship, meaning that half of the sport\’s 10 existing teams have now threatened to leave.

The teams\’ stance has raised the stakes considerably in a war of words with the governing International Automobile Federation (FIA), led by Max Mosley.

Ferrari President Luca di Montezemolo and the teams are scheduled to meet the Briton and Formula One\’s commercial supremo Bernie Ecclestone at a hotel near London\’s Heathrow Airport tomorrow.

"I hope common sense will prevail because the last thing we want to do is lose any of the manufacturers or teams currently in Formula One," Ecclestone, who has said Formula One and Ferrari need each other, told the Times newspaper.

Under the 2010 regulations, those teams accepting the cap would have far greater technical freedom than those continuing with unlimited budgets in order to level the playing field and encourage new entrants.

Teams can opt out of the budget cap but must adhere to the current regulations. Those teams agreeing to the cap will be allowed a more powerful engine and aerodynamic aids, both of which should considerably boost performance.

Renault, champion with Spaniard Fernando Alonso in 2005 and 2006, said it had been forced to reconsider because of the risk of a two-tier series.

The French manufacturer also expressed frustration that the FIA had "completely ignored" the Formula One Teams Association (FOTA)\’s own cost-saving proposals.

"Our aim is to reduce costs while maintaining the high standards that make Formula One one of the most prestigious brands on the market," said Briatore.

"We want to achieve this in a coordinated manner with the regulatory and commercial bodies, and we refuse to accept unilateral governance handed out by the FIA."

Renault Team President Bernard Rey added that the manufacturer remained committed to the sport but could not be involved "in a championship operating with different sets of rules.

"If such rules are put into effect, we will be forced to pull out at the end of this season," he added.

Ferrari has won the constructors\’ championship eight of the last 10 seasons, with Renault winning the other two.

Renault, which won the constructors\’ championship in 2005 and 2006, is second to newcomer Brawn GP, formerly Honda, after five races this season.

Mallya expects to score points at Valencia GP
Force India is making significant changes to its car in its quest for a first point in Formula One this weekend.

Team principal Vijay Mallya said aerodynamic developments for Sunday\’s European Grand Prix in Valencia included a new floor, bargeboard area and front wing.

"We should definitely be Q2 (the second stage of qualifying), maybe even the top of Q2 in Valencia and beyond," the Indian drinks and aviation tycoon said in a preview for the race in Spain.

"I\’m quite optimistic as we\’re also working on more upgrades for the final races of the season so fingers crossed we should be able to maintain our momentum.

"There\’s more to come for Singapore as well in the latter part of the year so if we continue on our trajectory now we\’re looking quite good, on target with the goals we set at the start of the year."

Force India has the same Mercedes engines as championship leaders Brawn GP and McLaren, winners in Hungary last month with world champion Lewis Hamilton, but has struggled to get close to the points.

Italian Giancarlo Fisichella finished ninth in Monaco while Germany\’s Adrian Sutil qualified seventh for last month\’s German Grand Prix and ran as high as second before colliding with Ferrari\’s Kimi Raikkonen.

"Every upgrade we\’ve introduced so far this year has really made a difference so I have a lot of confidence that this will move us forward as well," said Sutil.

"The car is getting better and better to drive and with another upgrade I hope we will really be in the midfield now and in the hunt for points."

Massa aims to return for Brazilian GP
Ferrari driver Felipe Massa planned on returning to action in October\’s Brazilian Grand Prix following his life-threatening injuries in Fomula One\’s Hungary stop.
The Brazilian told local media Globo TV late Sunday that he plans to be back in action for the October 18 race if his weekly test results are good.
Massa said his left eye had not yet fully healed.
The 28-year-old crashed into the tyre wall and sustained multiple skull fractures at the Hungarian Grand Prix on July 25 that left him hospitalized for nine days.
He is resting in Brazil after released from hospital and undergoes weekly tests to monitor the progress of his injuries.
Before the crash, Massa was seventh in the drivers\’ standings with 22 points. His best result had been a third-place finish at the German GP on July 12.