Automakers Hike Prices of Vehicles 1st April 2010

Various automobile companies have announced an increase in the prices of their vehicles from the 1st of April, 2010. This decision came as the new Bharat Stage emission norms come into effect from April 1st and the new automobiles that would be hitting the roads soon will require modifications to be compliant with the latest BS-IV norms.

Car majors like Hyundai Motors will increase the prices of diesel vehicles by 3% and prices of petrol run cars by 1.5%. General Motors, has made it clear that the company would be hiking the prices by 1.5% and the hike in prices will vary between Rs 600 and Rs 11,000."

The other auto companies who are increasing the prices of the vehicles include Tata Motors, Toyota Kirloskar Motor and Skoda Auto India. Tata Motors though has not announced any hike yet, but has also made it clear that there will be an hike in the products but at the right time. Toyota Kirloskar Motors will increase the prices between 1% and 3%.

While every automaker is announcing the price hike in vehicles, India's most popular automaker Maruti Suzuki has no plans at present to increase the rates of its products.

Chrysler Forms Tie up With Fiat

Experiments are not new to Chrysler – one of US biggest automaker. Over the past years, Chrysler has come up with new owner and new management, but this time its a 'Business Alliance'. Chrysler has formed alliance with Italian automaker FIAT. This tie-up is being seen as lifeline for Chrysler that was recently on the verge of filing bankruptcy.

With this deal, the Italian automaker will have 35% of Chrysler. The other benefits that this alliance will offer include regaining of Alfa Romeo and Fiat in U.S markets. This would be possible through Chrysler's dealership network.

What is that will benefit Chrysler through this business alliance. Fiat will offer Chrysler product & platform sharing, small and big cars and would also bring fuel-efficient technology and the engineering that goes into its small cars.

Commenting on this agreement, Chrysler chairman, Robert L. Nardelli said, "It creates the potential for a powerful, new global competitor, offering Chrysler a number of strategic benefits.” It is believed that such an agreement between the automakers would help them develop a better business. Now this is to be seen that whether Fiat comes out to be a lifeline for Chrysler or not.