Venezuela's threat to car companies

Venezuela's President Hugo Chavez has told car companies they must share their technology with local businesses or leave the country. Mr Chavez gave the ultimatum to Toyota, Ford, General Motors and Fiat during a public address. If the demand isn't met, he said: "I invite you to pack up your belongings and leave. I'll bring in the Russians, the Belorusians, the Chinese." Venezuela has nationalised most of the oil, metal and coffee industries. Mr Chavez attacked Toyota in particular, saying it was not producing enough four-wheel drive vehicles, which are used for public transport, and ordered an investigation. So far, the carmakers have not responded. Last year, car plants in Venezuela produced 135 , 042 cars and trucks. Currency controls in Venezuela mean the industry is struggling to get enough money to import parts and pay off debts.

Iran will ban defaced banknotes

Iran's central bank has said defaced banknotes are to be made invalid, after the appearance of opposition slogans on money, local media report. They quote bank official Ebrahim Darvishi as saying that people possessing defaced banknotes should exchange them by 8 January. It was difficult to distinguish genuine defaced notes from fakes, he added. Messages in support of the opposition have been appearing on banknotes since June's disputed presidential election. Hardline President Mahmoud Ahmadinejad was re-elected in the poll - a move that triggered mass street protests by the opposition who claimed the election was rigged. 'Death to dictator' "Banknotes on which there are writings or are stamped or have any additional signs will be invalid," Iran's Jam-e Jam newspaper quoted Mr Darvishi as saying on Thursday. The bank official also called on the public and shop owners not accept such notes from 8 January. Since June's election, slogans such as "Death to the dictator" have appeared on many Iranian banknotes. Opposition supporters have also sprayed anti- government graffiti on walls in the capital Tehran and other cities. Many transactions are carried out in cash in Iran, which is under international banking sanctions and where major credit cards cannot be used.

Luxury car buyers not spending too much holiday

This holiday season, the luxury car buyer is offering a simple phrase: I'm not spending too much. Wealthier shoppers are trickling back into showrooms after staying away much of the year. But there's a catch. Many are pinching pennies, sort of, by choosing smaller BMW and Mercedes models, or they're buying top-of-the-line cars from cheaper brands. This year, almost 14 per cent of luxury buyers replaced old vehicles with brands other than traditional high-end names such as Audi, BMW, Cadillac, Infiniti, Jaguar, Lexus, Lincoln, Mercedes and Porsche. That's up from just 4 per cent in 2006 and a reminder that these buyers still don't feel as wealthy as they once did. Home values are still down and portfolios shrunken, despite the stock market's gains this year. Two potential beneficiaries of the shift are Buick and Hyundai, brands offering luxury models that are much cheaper than Beamers and Audis. Buick for years was known for cushy, boring sedans normally found outside grandma's house. The average Buick buyer is still about 70 years old, and the brand is desperately trying to attract younger drivers and reverse a sales slide, says Aaron Bragman, an auto industry analyst with Global Insight in Troy, Mich. After years of ho-hum styling, blase interiors and soft suspensions that made driving a chore, Buick's new LaCrosse luxury sedan is far sportier than its predecessor. It's got crisper handling and sleeker styling designed to appeal to people in their 40s and 50s. It also includes on-board hard drives and other electronic gizmos for younger drivers, all while costing $5,000 to $20,000 less than European and Japanese luxury competitors. At $27,000, Buick's German-designed LaCrosse performs as well as its more expensive competitors, yet has everything luxury buyers are seeking, Bragman says. That's important because luxury shoppers are picky, even when they economize. While many are now willing to give up a prestigious name or a bigger car, they still want cutting-edge styling along with reliability and safely. They demand tight handling and a quiet ride. The car must have excellent fit-and-finish inside and out and features such as heated leather seats and navigation systems. 'They may very well be downsizing in terms of the package. They're not downsizing in terms of the features they want,' says Art Spinella, president of CNW Marketing Research of Bandon, Ore. That's just what Craig Bierley, Buick's product marketing director, is thinking. And he says the brand is capitalizing on the trend. 'People are reconsidering the choices on the things they spend money on.' LaCrosse sales took off after a new version arrived in showrooms last summer. Sales rose 63 per cent last month. The new LaCrosse, Bierley says, has quadrupled the number of buyers it attracts from other luxury brands. In December, Buick dealers are reporting even more trade-ins of Lexus and Infiniti models, he says. Another winner is Hyundai's Genesis, which has received stellar reviews for its luxury and handling but can cost $15,000 to $25,000 less than higher-end cars. Joan Sher, a Fort Lauderdale, Fla., real estate agent, switched over last month when she gave up her Mercedes GL450 sport utility vehicle for a loaded-out Genesis. Replacing the Mercedes would have cost more than $60,000, so Sher opted for value and spent $44,000 on the Hyundai. 'It's more affordable but at the same time a very comfortable car,' she says. Even with a small resurgence for the holidays, luxury car sales are down 27 per cent so far this year. But November sales fell just 8 per cent, and dealers are reporting increased traffic this month. Those trends reflect revived confidence among consumers. In the third quarter, net worth — the value of assets such as homes, bank accounts and investments, minus debts like mortgages and credit cards — rose 5 per cent, to $53.4 trillion, the Federal Reserve says. It was the second straight quarterly increase. Personal incomes rose in November at the fastest pace in six months. Yet even with those gains, Americans' net worth remains far below the peak of $64.5 trillion reached before the recession. Buying a cheaper car brand is one way to save money. Another is trimming size. Rick Case, who owns a chain of dealerships including Acura and Audi in Georgia, Ohio and Florida, says many shoppers want smaller, less- flashy cars. At his Acura dealerships, the $30,000 TSX compact sedan became his top-seller this year, displacing the TL midsize at $35,000. The trend is not just at his dealerships: Nationally, sales of the compact soared 24 per cent in November, while the midsize plunged 35 per cent. The number of luxury buyers replacing their cars with smaller vehicles has tripled to 16.7 per cent in the past three years, according to data gathered by CNW. Larger Lexus, Mercedes and BMW models generally have taken big hits and many analysts predict the downsizing will continue as people try to keep costs down in an uncertain economy. CNW's Spinella disagrees with that assessment. CNW has tracked auto sales for 28 years. It says people downsized during every economic slump but returned to their old ways upon sustained recovery.

South Korea keen to shipbuilding in Bangladesh

South Korea is keen on investing in joint venture in Bangladesh's promising shipbuilding industry. The interest was expressed when a delegation from South Korea led by its ambassador to Bangladesh Suk-Bum Park visited Ananda Shipyard and Shipways Ltd at Meghnaghat of Sonargaon in Narayanganj district on Thursday. The delegation included resident trade representative Han-II Kim and senior manager of Koran Trade and Business Agency Dong- Hyun Kim, said an ASSL press release. Chairman of the ASSL Dr Abdullahel Bari explained various aspects and potentials of Bangladesh's shipbuilding industry. Dr Bari told the envoy that their export orders had exceeded $200 million.

Fire- retardant cables has been marketed

Micro Cables Ltd unveiled its new product -- fire- retardant cables -- in Dhaka on Wednesday, the company said in a statement. Commerce Minister Faruk Khan was present at the launch of the product as chief guest. BKMEA President Fazlul Hoque, REHAB President Tanveerul Haque Probal and Trust Bank Managing Director M Shah Alam Sarwar, were also present. "Fire-retardant cables will reduce the consequences of fire accidents and are getting popular around the world," said Khan. The company has adopted an SMS-based system to support consumers who are often confused by counterfeit cables. In his speech, Hoque said: "All industrial entrepreneurs will consider using these cables for their own interest." Micro Cables Chairman Chaudhury A Shoaib and Managing Director SA Jalil were also present at the launch of the product.

United Airways bought a new aircraft

United Airways added a new MD-83 aircraft to its fleet yesterday to expand its international network. The new MD-83 aircraft will be primarily used on the carrier's upcoming routes between Dhaka- London, Dhaka-Dubai, Dhaka-Kuala Lumpur, Dhaka-Kathmandu and Dhaka-Bangkok. "The MD-83 aircraft has been purchased from Romania and this new addition has increased the fleet strength of United Airways to four. We are trying to face challenges of recession," said Tasbirul Ahmed Choudhury, chairman and managing director of the airways. "Many airlines have succumbed to the challenge, but we definitely want to survive and increase our fleet as this is the right time to procure desired aircraft." The carrier plans to expand its fleet by adding Boeing 767-300 ER by next year to fly to Jeddah and other Gulf destinations.

Pharmaceuticals production down in Singapore

A sharp drop in pharmaceuticals production pulled down Singapore's manufacturing sector as overall output shrank 8.2 percent in November from a year ago, government data showed Thursday. On a seasonally adjusted month-on-month basis, the sector's output fell 3.6 percent, the Economic Development Board (EDB) said in its monthly report. Excluding the biomedicals industry, which includes pharmaceuticals, manufacturing output actually increased 7.4 percent from a year ago, the EDB said. Analysts polled by Dow Jones Newswires were expecting an average 3.3 percent rise in output from the manufacturing sector, a key pillar of Singapore's trade-oriented economy.

Indian airline market rising fastest

India's airline passenger market could emerge as the world's fastest growing, an aviation consultancy said Thursday, as it forecast the nation's private carriers would return to profit next year. "India could be the strongest growth market in terms of passenger numbers globally for the next 10 to 15 years," Kapil Kaul, India chief of the Singapore-based Centre for Asia-Pacific Aviation, told AFP. His comments came as the Singapore-based consultancy said in a report India's private airlines should return to profit in the next financial year after bruising losses. With India's economy rebounding, private carriers are expected to post a total profit of 250 million dollars to 300 million dollars in the fiscal year which starts in April, the report said. "After a turbulent couple of years, 2010 should be a more positive year for Indian aviation, provided that the airlines can remain disciplined on costs, capacity and pricing," the consultancy said. "Now we are entering the profitable phase," Kaul said. The private carriers include Jet Airways, SpiceJet, Kingfisher and Indigo, part of a clutch of new airlines which took flight earlier in the decade after India liberalised the sector.

RAK Ceramics take part IPO book building method

RAK Ceramics, a Bangladesh-UAE joint venture, is going to be the first to offer primary shares using the book building method, a modern pricing mechanism for initial public offering (IPO). The Securities and Exchange Commission, the market regulator, gave the green light to RAK at a meeting on Wednesday, officials said. The tiles and sanitary-ware maker will float three crore ordinary shares worth Tk 10 each in face value under the book-building method. An indicative price for each RAK share has already been built at Tk 40 through bidding by seven institutions from four sectors. Now in the price discovery phase, bidders cannot quote 20 percent more or less than the indicative price, meaning they will have to offer between Tk 32 and Tk 48 for each share. Fixing the indicative price is required to obtain regulatory approval. Prime Bank, Southeast Bank and IFIC Bank joined the indicative price bidding from the banking sector. Prime Finance and LankaBangla Finance participated in it as non-bank financial institutions, Mercantile Insurance as an insurance sector company and Royal Green Securities as a brokerage house. "We will start work for price discovery after receiving written approval from SEC. We hope to complete the work by January," Arif Khan, chief executive officer and managing director (current charge) of IDLC Finance, told The Daily Star. IDLC Finance is the lead issue manager of the RAK Ceramic IPO, while BRAC-EPL is the co-issue manager. The institutions will not be allowed to sell shares in the first 15 trading days under the lock-in system. RAK's paid-up capital is Tk 195 crore. As of June 30 , the company's net asset value was Tk 18 a share and earnings per share were Tk 1.99. Foreign entrepreneurs own 90 percent of the company, while local entrepreneurs own the remainder, but local ownership will become 20 percent after the IPO. RAK started business in Bangladesh in 2001. Presently, the company holds around 80 percent market share in the sanitary-ware market and around 35 percent in the ceramics market.