London’s black cabs may soon be seen on the streets of major Pakistani cities, including the capital, Islamabad.

The government is allowing the duty-free import of 300 black cabs from the United Kingdom.

The company importing them also plans to manufacture 18,000 of them a year, the government says. Half of those built in Pakistan will be for export.

The government says it has approved the project to meet an acute shortage of private taxis in the country.

‘Done deal’

“We have allowed a private company to import 300 black cabs free of import duty,” investment minister Omar Ahmed Ghumman told the BBC’s Urdu service.

“The company plans to set up a manufacturing plant in Pakistan that will produce 18,000 [black cabs] every year,” the minister said.

He brushed aside allegations of lack of transparency over the deal by the opposition.

“This is a deal done with a private company that is willing to invest £850m ($1,570m) in Pakistan,” he said.

The cabs will face competition for road space

According to the minister, the main entrepreneur is a California-based Pakistani by the name of Daud Khan who has extensive business interests across the United States.

He says Mr Khan’s venture will create 50,000 jobs in Pakistan at the relatively high income level of about $300 per month.

“All procedures laid down by the law were followed while awarding him the contract,” he said.

Not so, argues the opposition.

It says the deal was neither properly advertised nor was the bidding held in a transparent manner.

The opposition says that invitations for bidding should have been advertised in at least two major English and Urdu newspapers.

The adverts should also have been placed on the relevant ministry or department’s website.

These requirements have not been met.

Tariff exemptions

“We read about it in the newspapers,” says Noor Hashmi, a private car dealer in Karachi.

“But by the time we got to know of it, it was a done deal.”

Mr Hashmi says car dealers are at a loss to understand why the government felt the need to import duty-free vehicles when similar ones were already being built in Pakistan.

“Where have the existing taxis come from? They are all being built by major manufacturers such as Toyota and Suzuki in Pakistan,” he says.

The opposition has asked why similar tariff exemptions have not been granted to other public-oriented ventures in the transport sector.

Lack of transparency allegations have been brushed aside

No duty exemptions were granted to the import of buses running the environment-friendly compressed natural gas, the opposition says.

Taxis cater primarily to high income groups in Pakistan while a vast majority of the workforce relies on buses.

The bidding documents lay down an exact description of the vehicles that are to be imported.

The 2.4-litre, diesel-powered vehicles approved for import should have passenger seats facing each other and a separate lockable cabin for the driver.

Critics say the description is so tightly drawn up that it only qualifies vehicles produced by the UK-based company London Taxis International (LTI), the main manufacturers of the black cab.

[Source:bbcnews.com]

GM chairman Rick Wagoner said on Thursday that the
assembly line producing the new 2007 Chevy Suburban and Tahoe will slow down the rest of the year to cope with softening demand for the big SUVs. “We had planned to go all out with overtime this whole year, but we are dialing that back,” said Wagoner.

The CEO isn’t worried about the segment falling too far, he said, because GM has been increasing share in the category with its new models, and it has dialed in flexibility to the plant so GM can shift some of the production to pickup trucks.

Wagoner also said that estimates that it can sell 100,000 Chevy Camaros a year when the new rear-drive muscle car bows in 2009 are correct. He wouldn’t, however, say that a Pontiac muscle car will be built off the same rear-drive platform. But GM insiders say it is in the works because Lutz is transforming Pontiac over time to a rear-drive division, made up entirely of rear-drive cars, with some having all-wheel-drive options.

Hyundai says the new, larger-than-Santa-Fe crossover SUV it plans to sell as a 2007 model will be called the Veracruz. The mid-size vehicle, Hyundai promises, will be larger than a Honda Pilot, roomier inside for cargo than the big Benz GL, and outfitted with a hideaway third-row seat, giving it seven-passenger capability. A 3.8-liter V-6 and six-speed automatic will be standard, along with stability control, while all-wheel drive will be an option.

karachi—A new Light duty Chinese Commercial Truck is going to start assembling from November this year at Sind Engineering (Pvt.) Limited under Contractual Assembly Agreement with M/s. Silver Seal International. Anwar Iqbal, CEO Silver Seal International & Lt. Col (R) Syed Akbar Hussain, MD SEL & Chairman PACO signed the contractual assembly agreement, while Waseem Haqqie, Chairman Engineering Development Board, Ministry of Industries Production and Special Initiatives was the chief guest on the occasion. Association of Manufacturers of Parts for Automotives & Motorcycles (AMPAM) awarded a Gold Medal to Waseem Haqqie. Wasim Haqqie, addressing the signing ceremony said Automotive industry has shown tremendous achievement in the last six years and Pakistani market is now flooded with locally assembled light and heavy duty vehicles. The automobile companies have confidence on Pakistani market and its positive results could be seen in terms of growth in auto sector share prices in the stock market.

LAHORE - Blaming the international changes which he described unkind, Prime Minister Shaukat Aziz said that oil and commodity prices have put Pakistani economy under inflationary pressures, “but this is a global change rather than a Pakistan specific one.”
Speaking on the 40th anniversary of Honda Atlas operations in Pakistan, marked by groundbreaking ceremony of 100 million dollars new Honda Motorcycle plant here Monday, the prime minister admitted that agriculture sector indicated a slower growth rate as compared to last year.
The Prime Minister acknowledged that 2.6 percent decline in agriculture sector from 4.1 as compared with the previous year saying, “but that it was due to pest attack on cotton crop.” Shaukat Aziz said that lower than expected wheat crops yield also contributed to slowing-down of agriculture sector growth.
However, Prime Minister said the present government had been taking several measures for the economic fundamentals of Pakistan, which he said had steadily been improving over the last couple of years in the wake of prudent economic policies adoption. He said present policies were acting as catalyst in bringing about economic stability and predictability.
With low interest rates and steady exchange rate, he said, economy had shown signs of growth and resilience in the face of ever increasing geo-political challenges, as both trade and investment figures reflected growth, he remarked.
He said government’s decision to focus public sector investment towards infrastructure development would give a positive boost to growth and investment, which, ultimately, he said would address the problems of unemployment and poverty.
As per PM, the present government is bringing down the cost of Pakistani products to compete globally. “Our goal is to adopt a new strategy to encourage rapid industrialisation for creating more job opportunities in the country,” he observed.
He said the engineering industry was in the forefront to make economy stronger, whereas 100 billion auto-industry, under the head of motorcycles, was taking the lead marking itself a hi-tech value-added sector, providing high skilled job opportunities to the people.
Prime Minister said that WTO framework allowed a country enough flexibility for its industry to grow and develop. “Irrespective of the WTO requirements, there is enough space to provide good working environment to automobile industry,” he assured the assemblers and vendors.
He said that excess capacity had largely been consumed in various sectors, adding that capacity enhancements were currently being carried out in several sectors including textiles, engineering, electronics, cement and packaging.
He said that the low interest rates had enabled the financial sector to become more dynamic. Rather than just lending to the government, the focus of innovation had been the private sector and the consumer, he added. This step unleashed unforeseen consumer purchasing power across the economy with over 50 per cent growth rate in consumer durables like TVs, refrigerators and motorcycles. Shaukat Aziz said that a tight fiscal stance helped stabilize the economy. “The budget deficit is at around 4 per cent and inflation has largely been kept in single digit range”, he added.
Talking about the performance of Pakistan’s economy in the year 2003-04, he said that a real GDP growth rate of 6.4% was achieved during this year.
He said that all the sectors contributed to the growth but automobile, electronics, textiles and cement sectors clearly stood out.
Shaukat Aziz said that large scale manufacturing had grown by 16 per cent - a trend that augers well for high growth during current fiscal year.
Shaukat Aziz said that the indigenous auto industry with 80% to 90% deletion level in tractors and 50% to 70% in cars, has performed well over the last few years under auspices of Engineering Development Board (EDB).
He said that it was government’s policy to localize as localization led to self-reliance. He urged the auto industry to export automobiles and improve competitiveness adding that wages in many competitor countries were on the rise, providing an ample opportunity to Pakistani auto industry to take advantage.
Prime Minister said that Pakistan could prove a regional manufacturing hub for South Asia, Middle East, Africa and Central Asia. He said that Pakistan must have more and more industries, enabling environment provided by the government to help increase motorcycle production from 100,000 in 2002 to the projected level of over 500,000 during the current fiscal year.
Highlighting some of the measures taken so far, he said that launching of industrial parks all over the country operated as public-private partnership was providing a hassle free investment environment. He said stable macro economic situation had also provided a high growth environment for investors.
Talking about the tariffs for raw material, he said that the tariffs had been reduced to ensure competitiveness of local manufactures, which would, he said, continue in future budgets. He said that continuity and consistency of economic policies would ensure a predictable environment for investors.
Prime minister said that the present government was promoting healthy labour-management relations to improve productivity and competitiveness. He said that his government was focusing on SME sector promotion through skill enhancement, easier availability of credit and technology transfer.
Speaking on the occasion, Vice President Honda Japan, M. Hamane commended government for providing healthy environment to auto industry adding that Honda Atlas would produce 300,000 motorcycles this year. He urged the government to take notice of the companies that were marketing foreign-made motorcycles in the name of locals.
Earlier, in his welcome address, President and Chief Executive Officer of Atlas Honda Limited, Saquib H.Shirazi said that they had successfully met the three challenges of volume, consumer benefit and investment before them. Talking about volume he said that Atlas Honda was going to produce 300,000 motorcycles this year out of half million of country production. Despite some undesirable practices adopted by some players in the sector, the consumers were made able to discerning between value added and one time-buy phenomena.
Talking about the passing on the volume benefit to the consumer, Saquib Shirazi said Atlas Honda had increased its localisation and volume continuously and could able it to achieve over 90 percent of the result. He said that Atlas Honda had reduced prices by 25 percent by reaching to the lower middle class users.
About investment he said that Honda had invested about 25 million dollars to expand the existing facilities and over 2,000 new jobs had been provided besides contributing around Rs. 9 billion to national exchequer.
Referring to the new Motorcycle Plant, Shirazi said that the plant would be set up at a cost of US $ 100 million.

LAHORE - The old and used auto parts dealers based in Lahore have requested the federal government to allow limited import of the old and used auto parts on the premise that the inventory is still being used by a considerable number of road users besides the fact that the same is already being brought into the local market by the smuggling chains.
In a budget proposal document prepared by the Lahore Chamber of Commerce & Industry Research Department and being sent to the Ministry of Finance and the Central Board of Revenue (CBR) for inclusion in the Finance Bill of 2006-07, the dealers have requested that old model vehicles between the years 1972-75, which includes old brands of Toyota, Mazda, Volkswagen etc are still being used by the considerable number of road users and the market demand invariably creates a strong case for the smuggling networks to operate in an elaborate manner, creating supply chains in all the major markets of Pakistan’s major cities, in the process depriving the government of much needed revenue.
The used auto parts dealers in their deliberations submitted to the LCCI for onward transmission to the CBR have requested that the import may be allowed under the clear head of old and used auto parts and not under the general head of scarp, as it currently practiced. They have also proposed that each item and component being imported should be clearly mentioned like any other imported item to enable the customs authorities to evaluate the item as they want to. They also propose that the imports may be but in the medium to high tariff wall, on one hand enabling the government to accrue revenue and at the same time allowing a level of protection to the local industry.
They have also proposed a join committee may be formed with the representatives of Custom Department, Relevant trade, PAPPAM and the concern Chamber of Commerce & Industry. Here the dealers are very much clear on the count that if despite a high tariff proposed by them, the local industry still faces injury, the restricted import regime may still be done away with.

Here, it is pertinent to note that that the new auto parts importers are also faced with a similar situation, on the count that they are already allowed import as a last tariff slot of 35 per cent. They are demanding a 25 per cent tariff regime on the premise that if they are allowed the opportunity, that can strike a blow to the incidence of smuggling of these parts into Pakistan especially those imported by the Afghan traders under the Afghan Transit Trade Agreement and then smuggled back into Pakistan.

ISLAMABAD (APP) – Sale of cars went up about 27 per cent in the country as compared to the same month last year.
As many as 15994 car units were sold whereas the production of cars also increased to 15804 last month showing increase of 24 percent, Pakistan Automotive Manufacturers Association told a TV channel. Despite ongoing import of car units from other countries and increase in the production of cars in the country, the demand of cars in market is increasing day by day.
The sale and production of cars was 13610 and 12692 units during February 2006, respectively. Increase in sale and production of car units in March, as compared to February 2006, was 27 percent and 16 percent respectively.
Production of truck units also increased to 437 by 16 percent in March. However, Only 395 Trucks could be sold showing decrease by 16 percent as compared to the month of February.
Production and sale of motorcycles went high 11 percent and 10 percent respectively. Around 42707 motorcycles were produced during March 2006.

Apparently unhappy over the government’s long term policy outlined by Jehangir Tareen,the federal industries minister, in a meeting, the four big foreign auto assemblers have demanded adequate protection against the import of re-conditioned cars and auto parts, manufactured locally. They have also demanded that the new investors in auto assembling should be asked to commence their business from the deletion stage where the existing assemblers have reached.

“The proposed policy will discourage new investment and create unemployment,” the four auto assemblers -–Pak Suzuki, Indus Motors, Honda Atlas and Dewan Farooque—warned in a joint petition to the minister, informing him of their future expansion and investment plans up to 2011-12 when they intend to produce 516,000 units, employment opportunities for 13,900 persons and Rs103 billion taxes to the government.

Pointing out that the proposed government policy has created “a lot of uncertainty”, the auto assemblers have sought clarifications so that their plans of future investment and expansion are not derailed.
They have drawn the federal minister’s attention towards the proposal given by them on tariff-based system (TBS) with a long term auto policy for inclusion in government package to be launched with the 06-07 budget. This proposal, they maintained, provides a transparent level-playing field to all—the new entrants as well as the existing ones. It is essence of the TRIMS as outlined in WTO rules.
But the proposed government policy outlined in the meeting, the assemblers contended, negates the basic premise of the TBS which is transparency and uniform application of rules.
In the absence of any reward for localisation, the new entrant will continue with a strategy of least localisation for three years and may subsequently phase out the model.
The government indicated to the auto assemblers about moving away from the penalty-driven localisation policy to a policy which is being termed as incentive-based that offers returns for local value addition and exports of auto parts and completely built units (CBUs) from Pakistan.
In the proposed new policy, any new entrant, who introduces new models, or if the original equipment manufacturers (OEM) bring new platform, they will have the relaxation on the localisation by way of import of 100 per cent CKD at the CKD duty rate as an incentive for three years after which TBS will apply.
The government also declared to gradually reduce over a period of three years the custom duty, as proposed by the auto industry of 50 per cent on A-max parts. The CKD duty will be reduced further after three years for all the OEMs

The government of Pakistan is a keen pursuer of bilateral trade and investment agreements. It has a full FTA with Sri Lanka, a PTA with Turkey, Early Harvest Schemes with China and Malaysia, and is part of both ECOTA and SAFTA. It is in various stages of FTA talks, or preparations for talks, with Indonesia, Jordan, Thailand, Malaysia, Singapore, the Gulf Cooperation Council and Russia (among others). In July 2006 it signed a Framework Agreement on Trade with Mercosur.

Negotiations on a US-Pakistan bilateral investment treaty, as a step towards an FTA, have been quite problematic — and controversial — and are unconcluded.

Given recent news about declining car and truck sales, one can assume that selling cars and trucks is a dismal business with few openings for bright people in search of meaningful careers.

But like many assumptions, that one is wrong. According to a report released last week in Orlando at the 89th annual meeting of the National Automobile Dealers Association, which represents 20,000 car and truck dealerships, nearly all of the nation’s automotive retail outlets are scrambling to find qualified people to help run their businesses.

The head-hunt is on even at dealerships selling products made by General Motors Corp. and Ford Motor Co., which have spent much of the past year struggling to halt erosion of sales and market share.

The favored prescription for the recovery of those two companies has been an injection of new, better and more attractive cars and trucks. But now, with those vehicles on the way, GM and Ford dealers and executives say they need more qualified people to sell and service their products.

The employment report, based on a survey by Harris Interactive Inc., a market-research firm in Rochester, N.Y., estimates that 104,803 career job slots are available at the nation’s dealerships, with most of them in the South Atlantic region, which includes the District, Maryland, Virginia, West Virginia, Delaware, Florida, Georgia, North Carolina and South Carolina.

In all, 24,647 auto dealership jobs are going begging in the South Atlantic, according to the survey by Harris, which is widely known for its publication of the Harris Poll.

“America’s franchised auto dealers are hanging out the help-wanted sign all across the country,” said Alan C. Starling, chairman of Auto Retailing Today, a coalition of major automotive manufacturers and dealer organizations that handles public relations for the retail side of the business.

But, partly because of the negative news of the financial problems of domestic car companies and a widespread belief that selling cars is a business for hustlers, many of those help-wanted appeals are being ignored, said Denise Patton-Pace, an ART spokeswoman.

“It’s difficult to educate people, to get them to understand that it is a strong industry with good jobs,” Patton-Pace said. “We keep running into parents who don’t want their children to get into the business because they have a bad image of it. But you can make a good living in this business.”

Nationally, according to the Harris survey, most of the available dealership jobs — 42,198 of them — are in sales. The second-largest number of vacancies is in service — 37,329. There are an estimated 7,120 administrative and clerical jobs open and another 6,903 slots available for managers. A miscellaneous category — information-technology specialists, fleet-sales experts, vehicle-preparation assistants and janitors — has 11,253 available dealership jobs, according to the Harris survey of 657 franchised new-vehicle dealers in the United States, conducted Jan. 5 to 14.

Selling cars is not easy. “It’s a people business,” said Tamara C. Darvish, vice president of the Darcars Automotive Group. “And we need people who understand how to deal with people, how to figure out what they need, and to follow-up with them” on sales and service calls, she said.

For many automotive salespeople, especially those working on commission, that means working long hours, six days a week. It can be grinding, but rewarding. Witness the legendary Freddie “Action” Jackson, a Washington area salesman who became a millionaire selling Lincoln and Mercedes-Benz automobiles.

Jackson, now comfortably retired, said he never saw himself as a salesman per se. “I always thought of myself as being in human relations,” he once told me. “I never tried to win customers. I always tried to win friends; and if that meant bringing a car to somebody’s office or home for him to take a look at, that’s what I did,” Jackson said.

The service jobs available in auto dealerships are not the same jobs open to the shade-tree mechanics of years past. Today’s cars and trucks are motorized computers, highly technological machines that require computer-literate and math-savvy technicians. Salaries range from about $25,000 to $70,000 a year, depending on a technician’s skill and experience.

Automobile manufacturers and their dealers sold 16.9 million new cars and trucks in the United States last year, continuing a six-year run of sales well above 16 million new vehicles. They sold more than 40 million used cars and trucks.

They are expected to have similar sales levels of cars and trucks in 2006, albeit a tad lower on the new-vehicle side, according to industry analysts.

That’s a lot of vehicles, a lot of business. Somebody has to handle all of those cars and trucks. The jobs are open.

[Source:Washingtonpost.com]