Karun Chandhok Eyeing a Place in Force India Team!

Karun Chandhok with Vijay Mallya Karun Chandhok made his debut in the Formula One championships this year, while driving for the Hispania Racing Team (HRT). And the lesser we talk about his performance so far, the better it would be. The Indian driver has not been able to impress with his performance yet, and we are not expecting a lot in the upcoming races of the season either.

But Chandhok’s performance apart, here is the latest gossip that will definitely tickle our reader. He may switch teams in the 2011 Championship, and no prizes for guessing that it will be the Force India team that he will drive for. And here is the missing piece of the puzzle. Speculations are high that Kimi Raikkonen may decide to come back to the racing circuits in 2011 and if that happens, Renault would grab the opportunity to lure him in the team. The other driver seat in the Renault team could be filled by Adrian Sutil, who currently drives for the Indian F1 team, Force India, owned by Vijay Mallya.

And if at all Adrian Sutil changes his team and joins hands with Renault, then there would be one empty seat in the Force India camp. But why would Mallya want to sign on Chandhok? First, signing an Indian driver for the team would boost the Indian viewership of the game and sponsorship too. Not that Mallya is in need of cash or sponsorship from someone. Another reason is that Chandhok has been constantly doing better than team mate Bruno Senna.

And more than anything else, the F1 racing circuit is all ready in India and the Indian Grand Prix will look more attractive if the Indian team could have an Indian driver racing for the team and the country. In the past, Vijay Mallya, while brushing aside former F1 driver Narain Karthikeyan, had said that Chandhok will be the next big thing in the Indian racing history. And this happened even before Chandhok had made his foray into the F1 arena.

Chandhok himself seems very interested in racing for the Force India team. He said, “I’d love to drive for Force India at some point in my career, whether it happens next year or not, because I think in some ways I’m an ambassador for the sport in our country.”

We are not sure, though, as to whether Mallya would jump at an opportunity to sign on Chandhok for his team.

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2012 Fiat Palio – Relish Some Leaked Pictures

Call it the monsoon effect or something else that you like, but it is raining spy shots everywhere. Wasn’t it just yesterday that we brought you the spy pictures of the Mitsubishi Lancer Evo? And now we have some leaked pictures of the 2012 Fiat Palio. Here are the details for all the curious cats that cannot wait for official pictures or information on the upcoming Fiat Palio.

Noticias Automotivas of Brazil is, apparently, claiming to have gotten hold of some leaked images of the next generation Palio. Considering that the Fiat Palio was the first decent hatch to reach the Indian market, it has quite a fan following in the country. And now that the Italian car manufacturer is planning to bring the next generation of the Palio to India, it will please a lot of aspiring new car buyers in India. The leaked images seem to be the ones that are generated using a CAD software that clearly shows the monocoque frame of the car. And one look at the pictures will sets our brains racing and here is what we have deduced from them.

Well, there are not a lot of new things in the next generation Fiat Palio. The conventional tall boy-image would bring only one kind of response from most people – Been there, done that. Although, the next generation Palio does boast of more curves that its predecessor and it definitely more modern looking. Some of the practical ideologies, like liberal head and leg room, of the previous Palio have been retained in the new one too.

The design also indicates a higher bonnet, somewhat flared wheel-arches, and long and sweptback headlamps follow a popular design pattern. The tail-lamps will likely be vertical with an elliptical base intruding the rear side panel of the new car. Additionally, you can expect the front and rear bumpers to be huge. The next generation Palio seems to be sharing some minor details with the Fiat Punto. However, we also maintain that this will be a totally different looking car.

The next generation Palio will feature a 1.3-litre turbo diesel engine, which is also featured in the Punto and the 1.4-litre FIRE petrol. A few smaller engines can also make their way into the new Palio’s bonnet. The new car is expected to have a May 2011 launch in the Brazil and Argentina. India will get the next generation Palio in the early or mid 2012. And, supposedly, it might get a new name in India.

The car is aimed to repeat the excellent performance record that has been set by the Punto. The new Palio, if priced well and fitted with the right engines, will definitely bring some more good luck for the Italian car manufacturer.

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Image Coutesy: Noticias Automotivas

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New Hybrid Technology Solution in India

Bharat-Forge-Hybrid-system Bharat Forge Ltd. is the flagship company of the $2.4 Billion Kalyani Group and a leading global supplier of forged and machined components. KPIT Cummins Infosystems Ltd. is a leading product engineering & IT consulting partner to automotive and manufacturing companies. We have had many joint ventures in the auto industry and here’s another. But certainly it’s not just another.

The two companies have just announced their decision to form a joint venture to manufacture and market an indigenously developed hybrid technology solution for automobiles REVOLO. Wondering what this REVOLO is? This new technology will facilitate both existing and new cars to radically increase mileage and engine performance, while considerably decreasing green house gas (GHG) emissions.

The technology for this intelligent plug-in, parallel, full-hybrid solution has already been designed and engineered. KPIT Cummins did the job. Now comes the question of a solution for automobiles. That would be manufactured through the Bharat Forge Limited-KPIT Cummins Infosystems Limited joint venture. KPIT Cummins will license the technology to the JV while Bharat Forge will contribute by bringing in its manufacturing, assembly and integration expertise to the JV. The solution will be available for all; OEMs, fleet and individual car owners through a network of certified and authorized dealerships. So, pray that all goes well and get ready to purchase that secret formula that’s gonna save you lots on fuel consumption.

The other interesting part of the story is that the innovative ‘REVOLO’ has been conceptualized, developed and carefully engineered in India. The Automotive Research Association of India (ARAI), which tested the new hybrid solution (REVOLO), confirmed fuel efficiency gains of more than 40 per cent. ARAI says so, and so, you have to trust us at least now. Under city driving conditions the increase in efficiency has been above 60 per cent and reduction in Greenhouse Gas Emissions has been over 30 per cent.

The REVOLO is going to benefit the Indian automotive aftermarket too, as the service stations will be able to offer to convert conventional vehicles into eco-friendly hybrids if the customers are looking for one. Car owners will be able to upgrade their existing cars to a higher level of fuel efficiency and performance without really purchasing a new car.

Baba Kalyani, Chairman & Managing Director, Bharat Forge, said, “Bharat Forge has been partnering with the global mobility industry to make it more efficient, competitive, sustainable and environmentally benign. We are delighted to join hands with KPIT Cummins in this path breaking initiative which promises to bring a paradigm change in India’s fossil fuel consumption and in helping the nation significantly meet its environmental commitments. We believe this indigenous solution would offer vehicle owners the best of both worlds – the ability to go green while achieving greater performance.”

We said earlier that it is an intelligent plug-in, parallel, full-hybrid solution. Yes, as a parallel hybrid, this solution will allow the motor and engine to work simultaneously. Unlike an electric vehicle, the vehicle will operate as a conventional fuel vehicle even if the batteries are completely drained. As a plug-in, the vehicle can be charged through a standard external electricity source such as a domestic power outlet. So, a great technology will hopefully create a revolution in the Indian automotive industry very soon. If all goes well, we will have a smart and sustainable solution that will redefine mileage standards.

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62 Speakers in One Audi Q7?

Audi Q7 A mobile phone without a clock, camera and FM Radio is considered useless and so is a car without a music system. Necessities are transforming into luxuries. As high-end quality for listening pleasure is becoming increasingly important, Audi takes the lead in the advancement of this technology. Audi has successfully collaborated with suppliers Bang & Olufsen and Bose. Audi engineers, even independent of these partnerships, have established broad-based proprietary expertise. Read through for an insight into the next revolution in the hi-fi sector.

62 speakers in one car is the new Audi Sound Concept project headed by Peter Gleim. The engineer works in Infotainment Development at Audi in Ingolstadt and uses a Q7 for his experiments. Standard on the outside, interior modifications have transformed it into a rolling hi-fi studio that takes a radically new approach.

We have learnt in our schooldays that a sound wave can be recreated by a multiplicity of small sound sources placed closely adjacent to one another along the wave front. This principle was first put into practice in the late 1980s and can be experienced even today in a movie theatre in Ilmenau, Germany. Each of the 192 individual speakers at the Linden Lichtspiele movie theatre is driven separately by a fast computer – at the precise moment in which the virtual wave front would pass through its point in space. The result is fascinating: Each moviegoer experiences perfect audio spatialization in optimal sound.

Audi began its development work in collaboration with the IDMT five years ago. The current status of the project is the Q7 prototype. A powerful amplifier takes up most of the space in the luggage compartment, and thick cables connect it to three PCs. Installed in the Audi Q7 are 62 speakers – five woofers and five tweeters plus 52 mid-range speakers in the instrument panel beneath the windshield, in the roof pillars and in the doors. Five units each door sill with Audi-typical perfect workmanship.

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Specialists made cut-outs in the sheet metal, fabricated new bezels and lowered the interior door release handles. “Prepare to be amazed,” says Gleim, as his eyes light up and he cranks up the volume. A sound like a thunderhead issues from the speakers an artful mix of music, traffic noise and animal sounds. Just imagine! Only the real worthy ones can get to experience such joy.

A female narrator guides the listener through the acoustic hubbub, dancing past the listener on the right and at other times on the left. The listener’s ears are forever surrounded by the sounds of driving cars and roaring lions. A marching band seems to march from side to side through the Q7 before finally a helicopter flies a lap around the cabin below the headliner.

“That is specially created wave field material,” says Gleim, “comprising up to 32 tracks, with specific spatial information for each of those tracks.” There are no corresponding audio media available on the market because there are no playback devices, either. A few film studios are already producing films with the method, however.”

You do not need special materials to demonstrate the effect of this wave field synthesis principle. Conventional stereo signals are more than enough to create entirely new acoustic images. The vocals come from far off, apparently from the workshop’s corner, and the guitar coming from the other corner. This impression is the same no matter where the listener is; behind the wheel or on the back right seat of the Audi Q7. The sound quality is always first class. Even the slightest buzz as the guitarist’s fingers hit the strings makes its way to the ear with extreme precision.

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Audi had begun collaborating with the upscale American supplier Bose a good twenty years ago; the collaboration with Bang & Olufsen began around the turn of the millennium. Audi began offering the advanced sound system from the Danish sound wizards in the A8 luxury sedan in fall 2005. The 14 active speakers, including two acoustic lenses with anodized aluminium grilles, and 1,100 watts of amplifier power brought high-end sound to the automobile direct from the factory for the first time. The advanced sound system has a penetration rate of greater than 10 per cent in both models, the A8 and Q7, in which it is available.

For a new Audi model that is to be equipped with a new premium or advanced sound system, Audi engineers prepare precise requirement specifications in which the system layout – the type, number and installation location of the speakers, the speaker characteristics, the design of the amplifier and a target sound appropriate for the vehicle are defined.

Prototype vehicles are sent to Esslingen, Germany, and Struer, Denmark, where the partners work on the speakers, enclosures, amplifiers and acoustic algorithms. The last step is fine-tuning the sound, which is performed together with the Audi specialists in Ingolstadt. The “Sound Commission,” a body comprising representatives from all units of the company, is responsible for final acceptance and approval.

How close does the high-end sound in a new Audi A8 come to the reality of the recording? “The determining factors are always the installation locations in the car and the quality of the components,” explains Gleim. “When you order a car with the advanced sound system, you get the best speakers available anywhere. Many of them have membranes made of a fiberglass composite, which has a very natural and linear sound.”

The tight interiors will not allow the sound to spread out like in a living room. Cushions and upholstery absorb it, which is why the low frequencies must be overdriven to a certain extent. The electronic fine-tuning, that is, the tweaking of the algorithms in the sound processor handles this.

The laboratory features equipment valued at nearly €10 million, from the microphones and the special amplifier test bed custom-developed to Audi specifications to the laser vibrometer. The latter uses a laser to scan the surface vibrations that occur on the speaker membrane, the speaker housing or the door in which the speaker is installed.

The colour graphics produced precisely indicate if the membrane does not oscillate properly across its entire surface. “Weaknesses in a speaker are very often a simple question of design,” says Gleim’s colleague, Wolfram Jähn. “In many cases, the manufacturer can resolve these with minor changes, such as details of the curvature or the overlap between the paper and the rubber at the bead.”

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Speakers are analyzed at the Audi sound laboratory in a testing room, which is a room-in-room construction. The testing room is mounted on thick elastomer bearings and is completely decoupled from the rest of the building, an absolute necessity given its direct proximity to a roller dynamometer. A floating wire lattice serves as the floor.

Human voices lose their richness in that room. The room is also often used to refine operating noises in the cabin, i.e., to fine tune clicking rotary knobs and switches. Whereas the testing room is used for mathematical analysis, the adjacent listening room is tailored for the subjective experience. It, too, is an acoustically optimized room-in-room construction – the special wooden double walls backed with insulation only allow the linear reflections desired. The precisely calibrated, high-end sound system installed here costs around €100,000 and its tube-based end stages are the size of small refrigerators.

Thanks to these detailed tests and comparisons, the sound development engineers at Audi can define detailed specifications for the speaker suppliers. Another element for success is the tight networking between Technical Development, Production and Quality Assurance at Audi. This enables requirements from daily production work and the real-world customer experience to flow into the development of new sound systems.

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Honda to Take the Diesel Route in India

Honda logo on Jazz It seems like such a paradox. When most of the car manufacturers are making money in India, there is one Japanese company which is experiencing an extended period of losses. And this is happening at a time when the Indian automobile market is experiencing an all time boom. Honda, despite having a fleet of the most glamorous and powerful cars, has been losing its market share in India to its competitors due to the lack of diesel engines in its arsenal.

And now, there is news that Honda has finally decided to bring its diesel engine cars in India. According to some reliable sources, Honda will bring the diesel technology in not just one but a range of selected cars.

But it is almost certain that Honda will not bring a diesel variant of its hatchback, Jazz. As it is, the Honda Jazz is overpriced, according to most people’s standards, and it has seen a very dismal response in the Indian market. Instead, Honda will be putting its bet the City, which has become the bread winner for the Japanese company in India. Also, City has been experiencing a lot of competition from the Linea diesel. And once Volkswagen launches the Vento in India, it will become extremely difficult for the Honda City to survive the heat.

As of now, Honda has nothing to satisfy the Indians who prefer diesel engine cars. And you may find it surprising that Honda, which offers a number of cars in diesel variants in European market, has not launched a single vehicle in India in diesel option. Now, can Honda blame anyone for not doing well on the Indian roads? We don’t think so.

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One of the Honda cars that can really do well in India with a diesel engine is the Accord. The Honda Accord has been waiting desperately for a diesel variant and if all goes well, we will soon have it here. Accord has been a favourite of many Indians, but post the launch of the Skoda Superb, it has been seeing declining sales. Again, blame it on the lack of a diesel option. Better late than never, though. Honda is finally taking a bite of the reality and has been spotted testing a diesel engine – sometimes disguised in the European Accord / American Acura, while at others in the Accord sold in India. The Honda Accord will likely get N22B 2.2-litre i-DTEC engine which churns out 180 bhp.

Another car that can help Honda’s diesel engine cause is the CR-V. In the last two years, we have spotted test mules of the CR-V with a i-CTDI engine. We can also speculate that Honda may completely do away with the diesel variant CR-V since it has been experiencing acute lack of demand and extremely high import costs in Europe.

Next year, we will also see a small car launch from Honda and we hope that the car maker would launch a diesel version of the same.

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Happy Birthday Chevrolet!

chevy-india The journey has been great for GM’s Chevy in the Indian market. The auto major has just completed seven fruitful years in the nation and it gives us great pleasure to be a part of the celebrations. Celebrations and marketing will go hand in hand now. GM India has started the Chevrolet free Mega Service Camps with exchange and loan facilities to please Indian consumers. Chevy’s products and accessories are being displayed all over and they even have test drives across India.

Buy select Chevrolet vehicles and you may get a gold coin. That’s the Mega Gold Rush scheme. Chevy is also trying to get intimate with customers through several fun-filled activities around the Beat in major malls in key cities across India. The car maker will hold special gala evenings, movie shows and a slew of dealer driven activities for its customers. Since its inception in 2003, Chevrolet has been exhibiting expansion in its portfolio, sales numbers and popularity.

Chevy has sold over 3,00,000 cars in India. Chevy’s product quality has been great and the high performance of those products, simply matchless. Before Chevrolet, GM India had been selling models such as Corsa, Swing, Vectra and Astra under the Opel brand, which has now been discontinued. GM India saw its highest ever monthly sales in March, 2010, at 11,330 units, an over two-fold jump compared to the year-ago period, on the back of strong performance by its small cars, Beat and Spark.

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Overwhelmed with joy, P. Balendran, vice-president, GM India said, “Chevrolet has come a long way in India in its journey of seven years. Chevrolet’s best-in-class products, widespread customer outreach through an expansive network, promise to deliver quality, efficiency and performance have led to widespread acceptance and support for our brand. It gives us immense pleasure to see such overwhelming response to the Chevrolet brand that continues to register record sales month after month consistently. We will continue to engage with our myriad stakeholders and exceed all expectations by fulfilling our promise of providing the very best.”

To prove that it is better than the rest, Chevrolet during its journey has introduced quite a few industry-first initiatives like a centralized 24×7 call centre to attend to customer complaints and provide information related to its products, unparalleled product warranties guarantees, a 24×7 breakdown helpline service, the Cashless Ownership Offer and its unique Cost of Ownership program. Now, we also have “Chevy OK” in 41 locations, the Chevrolet Pre-Owned Car Program. That goes to say that the several prestigious awards Chevy has been awarded are well deserved.

To LCVs and passenger cars in India, Chevy has collaborated with SAIC. Chevy is also working on alternate-fuel and eco-friendly solutions. It has been looking at developing electric vehicles for India. Not just that, GM recently tied up with US Department of Energy and CSMCRI to develop Jatropha for bio-diesel. So, we may also have zero-emission vehicles. Chevrolet flaunts eight cars including hatchbacks Spark and Beat, sedans Aveo and Cruze, multi-utility vehicle Taveraand sports utility vehicle Captiva that suit everyone’s pocket. The recently introduced Cruze and Beat offer Indians exciting designs, advanced technology and refined features.

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Currently Chevy has 206 sales points and 200 authorized service outlets across India. The company is expanding on its dealer and service network and plans to take it to 300 by the end of 2010. To achieve this, the auto maker has added second shifts in both its state-of-the-art manufacturing facilities in Halol and Talegaon. A 160,000-unit Powertrain manufacturing facility at the Talegaon manufacturing plant premises is on its way too. Chevrolet has set up a Technical Centre at Bangalore (GMTCI) that has three operational units: R&D, Engineering and a Design Studio – India’s first such digital studio.

If that was for the happy hour for today, we have some sad news too. General Motors India has no plans of bringing their Chevy Volt to India, at least not in the near future. GM India VP Ankush Agora said that though they had been studying the scope of launching electric vehicles in India, it is still subjected to a lot of factors like support from government in terms of infrastructure and incentives. Negotiations have already begun. But, Chevy doesn’t see any support coming in yet.

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The Chevy Volt is an electric car that uses gas to produce its own electricity, and will launch in the U.S. in November 2010. So, for now, let’s hope that some magic gets created and Chevy is able to bring the Volt to India. Happy Birthday Once again Chevy!

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Mitsubishi Lancer Evo X – Exclusive Spy Pictures

Lancer-Evo-X A Japanese car making company which was lying low for some time now has finally risen from its dormancy and is doing quite a few things to grab the attention of the Indian car buyers. It is no rocket surgery to guess that we are talking about Mitsubishi. It all began with the launch of the new Mitsubishi Outlander which now looks certainly more refined than the previous one.

Emotions are running high in the Mitsubishi camp and it is now a common knowledge that the Lancer Evo X will be launched in the second week of July. And thanks to our friends at indianautosblog, now we have exclusive spy pictures of the Lancer Evo X taken at the Madras Motor Sports Track (MMST). Magnanimous Mitsubishi gave one of its red Lancer Evo X to the people at Overdrive to test the vehicle around the Coimbatore track.

When asked about the upcoming Mitsubishi Lancer Evo’s launch, marketing head of Hindustan-Mitsubishi Motors, Pritam Saikia, said, “Evo X has been in the minds of the Indian consumer for a long time now. It is a fantasy sports car that has caught the fancy of speed enthusiasts in movies like the Fast & Furious where it featured. We are not looking at huge numbers. We plan to sell around 50-75 cars in India per year. It is a car that boosts the brand equity of Mitsubishi in India. It has the rally DNA that outlines Mitsubishi cars in the country”.

Indian car enthusiasts have been expecting the arrival of the Mitsubishi Lancer Evo for quite some time and now that it will finally make its entry, we could not have asked more from the Japanese car maker. Mitsubishi has pulled up it socks and, boy, are we happy about it! The front of the car looks attractively devilish, and don’t even get us started on the sporty tail lamps and the huge rear spoiler that craves your attention. The Lancer Evo has got such a unique look that you can’t mistake it with another saloon.

But good looks are not much to talk about if they cannot be mated to beastly power. Yes, the Lancer Evo X is powered by a 2.0 litre inline 4 cylinder engine that can produce a maximum power of 290 BHP. The stunningly beautiful car would drive on black-powdered finish 14-spoke alloy 18″ BBS alloy wheels. The engine is paired with a 6-speed Twin Clutch SST transmission and the solid paddle shifts provide an excellent driving experience to the driver.

While the exterior will seem charming to most people, the high quality interior fit and finish, though done in a sporty fashion, does exude classy finesse too. The car comes equipped with brilliant Rockford Fosgate music system with a sub-woofer.

Wondering about the price of the car! Well, the Lancer Evo will be available in India with a price tag of around 35-40 lakh. The reason behind this is that the car is being imported to India as a CBU.

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Proton and M&M in Talks Once Again? See What’s Different

Proton Logo The hot scenario a year ago: The Malaysian national car maker Proton is considering venturing into the Indian car market. It will enter the growing Indian market with a range of hatchbacks and saloons. The Malaysian car maker is likely to roll out its Savvy hatchback and the Saga and Persona sedans in India. Proton earlier had talks with Mahindra & Mahindra and contract manufacturer Argentum Motors, but the partnership couldn’t happen. Now the company is on the lookout for other possible tie-ups to enter into the lucrative car market of India.

The present scenario: It’s more or less the same even now. But what’s the reason behind this sudden hype? That’s because the news is in the air once again that M&M and Proton are in talks. Yes, the car maker which has been waiting for the last many years for a small opening through which it can enter the Indian car market is believed to have started talks yet another time with Mahindra for a partnership. So, is Malaysia finally going to capture India’s small car market?

The two had spoken in 2007, but it did not bear fruit. Following that, the Malaysian auto maker opened a dialogue with some other Indian players, including Argentum Motors. Did it work? No. Before we forget, did you know that an exclusive U.S. dealer for M&M filed a law suit this week against the Indian auto major for delays in introducing a pick-up truck in the U.S. market? God! What a tough time Mahindra has been having! Renault separated, the Logan becomes M&M’s responsibility and so much more. Even if M&M has to modify the Logan, it needs permission from Renault and has to shell out lots to satisfy the French auto giant.

Hopefully, if all works well, the new partnership may help M&M shine. Right now, a source in-the-know of the development says, “Talks started again this year. There is a possibility of a partnership.” But, Mahindra says, “We do not comment on speculative reports.” No comments could be obtained from Proton either. Proton too has had its bad days of trying hard without fruit. Earlier, Proton was linked with contract manufacturer Argentum Motors, which acquired the manufacturing unit of the non-operational Daewoo Motors India at Surajpur, for a possible tie-up. But, it actually hadn’t worked.

Now, Proton has learnt from experience and stays firm that it needs to have a presence in India. “Moving forward, the group (Proton) will also focus on high-growth regional markets in ASEAN for the completely built-up (CBU) market, as well as China, India and Iran for the completely knocked-down (CKD) market,” Proton had said in its annual report for 2009.

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M&M may support Proton in the assembly of CKDs. India can certainly be one of Proton’s key markets to export its products. The Indian car market has also been tough and has fared well out of the economic crisis. “Apart from the local market, we have begun a more aggressive approach to capture export markets as defined under the Asian Multi-Local OEM (AMLO) strategy, namely ASEAN, China, India and the Middle East-North Africa (MENA),” the report had said. So, let’s hope that Proton drives into India with its Exora MPV, small car Savvy and the Saga sedan as soon as possible.

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Ruia Will Form Special Purpose Vehicle for the Ssangyong Bid

We were virtually unaware of Ruia Group’s presence in the automotive world until the blessing came in the disguise of the ailing Ssangyong Motors. Now, the Ruia Group has pitted itself against some of the more powerful players, like Mahindra and Mahindra and Renault-Nissan, of the game and suddenly the company is seen all over the place.

And while the Ruia Group has already started the due diligence process for the South Korean SUV maker, the company has also announced the formation of a Special Purpose Vehicle for the bidding of Ssangyong Motors. Assisting the Ruia Group in the SPV would be the two sister concerns of the company, Dunlop India and Falcon Tyres.

The due diligence proceedings have started, but the Ruia Group would only bid for Ssangyong if it finds the deal worth the money. Dunlop India, Ruia Group Chairman P. K. Ruia said, “We have only given the intention to acquire the company and we have been shortlisted. The process of due diligence is on since June 7, will be over by June-end and then we will decide. We will move ahead if the target comes at a right price.”

He also added, “Now our interest in SsangYong Motor is through one of the group’s investment companies, and if the group moves ahead towards acquiring the company (SsangYong), then other companies (of the group) will also join in the SPV to acquire the shares,” he said.

When Mr. Ruia was quizzed if Dunlop India and Falcon Tyres would participate in the bidding for the Korean automaker, he revealed that the group was working on forming a Special Purpose Vehicle in which the two subsidiaries will play a major part.

“Now our interest in SsangYong Motor is through one of the group’s investment companies, and if the group moves ahead towards acquiring the company (SsangYong), then other companies (of the group) will also join in the SPV to acquire the shares,” he said.

Falcon Tyres, the tyre manufacturing arm of the Ruia Group, is apparently planning to start the commercial production in its Rs. 550 crore greenfield Uttaranchal plant by the end of the financial year 2010-11. The plant has a capacity of manufacturing five lakh units a month and would cater to major automobile companies including Hero Honda.

All this aside, does the Ruia Group possess any core competence in vehicle manufacturing? Besides, the Korean company has completely exhausted its product shelf and it would prefer a bidder which has got highly resourceful technical bandwidth. But Mr. Ruia begs to differ, “When we bought Jessop in 2003, we had no experience in engineering. When we took over Dunlop in 2006, we had no competence in the tyre business. We knew nothing about sealing systems before we took over Schlegel and Henniges Grefrath in 2008 and 2009. Our expertise is in management and in turning sick businesses around. Ssangyong fits in neatly into our group’s plans.”

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Suzuki Recalls Grand Vitara in US, India Not Affected

2006-suzuki-grand-vitara Well, well, if you ever thought the saga of car recalls had finally come to end, you are just wrong. The car recall scare still continues to pinch car makers hard as ever.

The latest entrant to the ongoing recall saga is Japanese automaker Suzuki’s American division. The American division of Suzuki has announced that it was recalling 46,549 units of the 2006 model Grand Vitara and XL-7 SUVs manufactured during 2005-2006, due to a potential faulty tension adjuster pulley for the power steering and air conditioning drive belt. The tension adjuster pulley has an outer portion that is built from plastic.

Repeated heat stress can cause the plastic to deteriorate, with pieces of the pulley breaking off. This could cause pieces of the pulley to get caught between the pulley and the drive belt.

The situation might cause the drive belt to come off, meaning that the car loses its steering power assist. This would require the driver to make an increased effort to steer, increasing the risk of a crash.

The recall campaign is scheduled to debut by June 25 and will see Suzuki dealers replace the power steering pump drive tension adjuster pulley. The operation will be performed free of charge.

But the good news for us Indians is that this recall will not affect India, as Suzuki controlled Maruti Suzuki India has clarified that the Grand Vitaras sold in India were not affected.

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Suzuki has made sustained marketing efforts to promote the Grand Vitara model. For example, the company’s UK arm announced last month that it will offer each rider of the World Superbike and British Superbike Suzuki team a Grand Vitara vehicle. The vehicle has a 21-year history and has managed to register sales of over 2.7 million units.

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