netrashetty
Netra Shetty
ews Corporation (NASDAQ: NWS, NASDAQ: NWSA, ASX: NWS, ASX: NWSLV), often abbreviated to News Corp., is the world's third-largest media conglomerate (behind The Walt Disney Company and Time Warner) as of 2008, and the world's third largest in entertainment as of 2009.[5][6][7][8] The company's Chairman & Chief Executive Officer is Rupert Murdoch.
News Corporation is a publicly traded company listed on the NASDAQ, with secondary listings on the Australian Securities Exchange. Formerly incorporated in South Australia, the company was re-incorporated under Delaware General Corporation Law after a majority of shareholders approved the move on November 12, 2004. At present, News Corporation is headquartered at 1211 Avenue of the Americas (Sixth Ave.), in New York City, in the newer 1960s-1970s corridor of the Rockefeller Center complex.
For the Brazilian automotive industry, 2007 was a record-breaking year. The industry set an all-time high of 2.97 million cars, vans, buses, and trucks manufactured. Comprising 18 percent of the country's industrial production and five percent of GDP, the growth in the auto industry contributed to Brazil's higher than expected GDP growth of 5.4 percent last year. Local automakers predict production in 2008 will top 3.25 million vehicles and are ramping up investments and hiring more workers to increase capacity.
Flex-fuel vehicles, which run on any combination of gasoline and ethanol, also broke records. Today, almost nine out of ten new cars sold in the Brazilian market have flex-fuel engines. Brazil's stable macroeconomic picture, higher household incomes, and readily available credit have stimulated domestic sales. However, Brazil's high tax rate and rising wages for workers, as well as an appreciating currency, are areas of potential concern for the industry.
Other countries, including Argentina, are gaining competitive advantages that could encourage multinational companies to relocate some of their manufacturing facilities. Similarly, the Brazilian Central Bank's interest rate hike this month could cause automakers to reconsider some proposed investments.
Contents
[hide]
1 AUTOMOTIVE INDUSTRY BACKGROUND
2 CONSUMER CREDIT BOLSTERS SALES AND EXPORTS IN 2007
3 FLEX-FUEL TECHNOLOGY A MARKET SUCCESS
4 INCREASED INVESTMENT AND EMPLOYMENT
5 CONCERNS FOR THE BRAZILIAN AUTO INDUSTRY
6 TRENDS
7 Sources
AUTOMOTIVE INDUSTRY BACKGROUND
The Brazilian government's five-year plan in 1956 to promote the country's industrialization led to the creation of Brazil's modern auto industry. Fifty years later, Brazil is the world's seventh largest automobile manufacturer and eighth largest consumer base for automobiles. The auto industry comprises approximately 18 percent of Brazil's industrial output and accounts for five percent of GDP. Industry analysts expect Brazil this year to surpass French production and the consumption levels of Great Britain and France.
Today, the Brazilian auto industry is a major driver of economic growth. Brazil is becoming an emerging market leader for technology development because of its highly skilled and qualified engineers and relatively low labor costs compared to developed countries. Brazil has the largest number of car assembly plants in the world, manufacturing more than 30 brands. The auto sector has invested approximately USD 27.5 billion since 1994 to expand plant and component manufacturing capacity and in new technology for developing new models.
Brazilian exports rose in value from USD four billion in 2002 to USD 13.2 billion in 2007. Globalization also has pushed the industry to restructure its supply chain and product design processes. Innovative organizational designs, novel production facility layouts, and efficient supply chain management make Brazil one of the most dynamic automotive industries. General Motors (GM), Ford, Volkswagen, and Fiat all have flex-fuel development and engineering facilities in Brazil. The Ford plant in Bahia and the GM plant in Rio Grande do Sul are considered the most modern assembly plants in the world.
CONSUMER CREDIT BOLSTERS SALES AND EXPORTS IN 2007
An increase in available credit, lower interest rates, and extended car loan maturities up to six years all contributed to the boom in auto sales. Pablo Teruel from the Department of Statistics of the Brazilian Motor Vehicle Manufacturers Association (ANFAVEA) told Economic officer that Brazil's rising employment and income were partly responsible for sales expansion. Teruel also told Economic officer that he did not foresee any changes for the sector from the Central Bank's capital requirements on leasing put in place in January because auto companies finance their own leasing operations and therefore are not subject to the new reserve rules. ANFAVEA is confident that auo sales will continue to grow. A major part of the nearly 86 percent growth in leasing in 2007 went to the auto sector, and traditional financing for vehicles was also up 29 percent.
ANFAVEA reported that motor vehicle production (autos, trucks, and buses) and domestic and international sales all hit record highs in 2007. Last year, the industry assembled 2.97 million cars, up 13.9 percent over 2006. Domestic sales including imported vehicles climbed 27.8 percent, totaling 2.46 million. Imported vehicles accounted for 10.9 percent of total domestic sales. Fiat led Brazilian domestic market sales in 2007 with 523,180 cars, followed by Volkswagen with 491,790, and GM with 444,904. At the end of 2007, the Brazilian automotive industry employed 120,245 people, up 13.1 percent from 2006.
These upward trends have continued in early 2008. According to ANFAVEA's data for the first quarter of 2008, total vehicle production was 783,000 cars, up 19.3 percent from the same period a year ago. Vehicle sales reached 648,000, up 31.4 percent. At the end of March, the industry employed 124,200 people. According to a recent local TV newscast, ANFAVEA President Jackson Schneider said that Brazil's auto industry is estimating an output of approximately 3.2 million cars in 2008, up 8.9 percent from 2007.
News Corporation is a publicly traded company listed on the NASDAQ, with secondary listings on the Australian Securities Exchange. Formerly incorporated in South Australia, the company was re-incorporated under Delaware General Corporation Law after a majority of shareholders approved the move on November 12, 2004. At present, News Corporation is headquartered at 1211 Avenue of the Americas (Sixth Ave.), in New York City, in the newer 1960s-1970s corridor of the Rockefeller Center complex.
For the Brazilian automotive industry, 2007 was a record-breaking year. The industry set an all-time high of 2.97 million cars, vans, buses, and trucks manufactured. Comprising 18 percent of the country's industrial production and five percent of GDP, the growth in the auto industry contributed to Brazil's higher than expected GDP growth of 5.4 percent last year. Local automakers predict production in 2008 will top 3.25 million vehicles and are ramping up investments and hiring more workers to increase capacity.
Flex-fuel vehicles, which run on any combination of gasoline and ethanol, also broke records. Today, almost nine out of ten new cars sold in the Brazilian market have flex-fuel engines. Brazil's stable macroeconomic picture, higher household incomes, and readily available credit have stimulated domestic sales. However, Brazil's high tax rate and rising wages for workers, as well as an appreciating currency, are areas of potential concern for the industry.
Other countries, including Argentina, are gaining competitive advantages that could encourage multinational companies to relocate some of their manufacturing facilities. Similarly, the Brazilian Central Bank's interest rate hike this month could cause automakers to reconsider some proposed investments.
Contents
[hide]
1 AUTOMOTIVE INDUSTRY BACKGROUND
2 CONSUMER CREDIT BOLSTERS SALES AND EXPORTS IN 2007
3 FLEX-FUEL TECHNOLOGY A MARKET SUCCESS
4 INCREASED INVESTMENT AND EMPLOYMENT
5 CONCERNS FOR THE BRAZILIAN AUTO INDUSTRY
6 TRENDS
7 Sources
AUTOMOTIVE INDUSTRY BACKGROUND
The Brazilian government's five-year plan in 1956 to promote the country's industrialization led to the creation of Brazil's modern auto industry. Fifty years later, Brazil is the world's seventh largest automobile manufacturer and eighth largest consumer base for automobiles. The auto industry comprises approximately 18 percent of Brazil's industrial output and accounts for five percent of GDP. Industry analysts expect Brazil this year to surpass French production and the consumption levels of Great Britain and France.
Today, the Brazilian auto industry is a major driver of economic growth. Brazil is becoming an emerging market leader for technology development because of its highly skilled and qualified engineers and relatively low labor costs compared to developed countries. Brazil has the largest number of car assembly plants in the world, manufacturing more than 30 brands. The auto sector has invested approximately USD 27.5 billion since 1994 to expand plant and component manufacturing capacity and in new technology for developing new models.
Brazilian exports rose in value from USD four billion in 2002 to USD 13.2 billion in 2007. Globalization also has pushed the industry to restructure its supply chain and product design processes. Innovative organizational designs, novel production facility layouts, and efficient supply chain management make Brazil one of the most dynamic automotive industries. General Motors (GM), Ford, Volkswagen, and Fiat all have flex-fuel development and engineering facilities in Brazil. The Ford plant in Bahia and the GM plant in Rio Grande do Sul are considered the most modern assembly plants in the world.
CONSUMER CREDIT BOLSTERS SALES AND EXPORTS IN 2007
An increase in available credit, lower interest rates, and extended car loan maturities up to six years all contributed to the boom in auto sales. Pablo Teruel from the Department of Statistics of the Brazilian Motor Vehicle Manufacturers Association (ANFAVEA) told Economic officer that Brazil's rising employment and income were partly responsible for sales expansion. Teruel also told Economic officer that he did not foresee any changes for the sector from the Central Bank's capital requirements on leasing put in place in January because auto companies finance their own leasing operations and therefore are not subject to the new reserve rules. ANFAVEA is confident that auo sales will continue to grow. A major part of the nearly 86 percent growth in leasing in 2007 went to the auto sector, and traditional financing for vehicles was also up 29 percent.
ANFAVEA reported that motor vehicle production (autos, trucks, and buses) and domestic and international sales all hit record highs in 2007. Last year, the industry assembled 2.97 million cars, up 13.9 percent over 2006. Domestic sales including imported vehicles climbed 27.8 percent, totaling 2.46 million. Imported vehicles accounted for 10.9 percent of total domestic sales. Fiat led Brazilian domestic market sales in 2007 with 523,180 cars, followed by Volkswagen with 491,790, and GM with 444,904. At the end of 2007, the Brazilian automotive industry employed 120,245 people, up 13.1 percent from 2006.
These upward trends have continued in early 2008. According to ANFAVEA's data for the first quarter of 2008, total vehicle production was 783,000 cars, up 19.3 percent from the same period a year ago. Vehicle sales reached 648,000, up 31.4 percent. At the end of March, the industry employed 124,200 people. According to a recent local TV newscast, ANFAVEA President Jackson Schneider said that Brazil's auto industry is estimating an output of approximately 3.2 million cars in 2008, up 8.9 percent from 2007.
Last edited: