Ford Motor Co will receive nearly $5.9 billion in U.S. government loans to build fuel-efficient vehicles as the Obama administration deepened its commitment to reshaping the cash-strapped auto industry.
Japan's Nissan Motor Co Ltd will receive $1.6 billion and start-up Tesla Motors Inc will receive $465 million in low-cost loans to build all-electric cars in the first wave of financing from an Energy Department program intended to offset the cost meeting sharply higher new fuel economy standards.
"By supporting key technologies and sound business plans, we can jump-start the production of fuel-efficient vehicles in America," Energy Secretary Steven Chu said at an event at Ford's sprawling engineering and product development campus.
"These investments will come back to our country many times over by creating new jobs, reducing our dependence on oil, and reducing our greenhouse gas emissions," he said.
The Energy Department has $17 billion remaining in funding under a program first authorized by Congress in 2007. Chu said the agency would work quickly to approve further loans in the coming months to other auto companies.
The announcement of the first round of funding at Ford represented a win for the automaker, the United Auto Workers union and Michigan's congressional delegation after an intense lobbying effort to get the long-stalled funding approved.
One of the conditions of receiving the subsidized loans was a determination of viability. That ruled out Ford's rivals Chrysler and General Motors Corp since they have been pushed through a federally funded bankruptcy process.
HP India announced the launch of the new HP 'Z' Workstation series -HP Z800, HP Z600 and HP Z400.
The workstations are the culmination of more than 20 HP design innovations - including a self-checking power supply - and take advantage of the new Intel Xeon processor.
The new enhanced HP Z Series is sleek with its new industrial design - brushed aluminium side panels, tool-less access chassis, integrated handles, and visually cable-less engineering.
"The new Z Workstations series is the newest addition, which facilitates easy serviceability at the fingertip, from the power supply to the motherboard," said Anurag Gupta, Country Manager - Workstations, Personal Systems Group, HP India. "Studies have shown that an HP Z Workstation pays for itself in a surprisingly short period with its performance and productivity gains."
This series offers innovation with the power to do more with next-generation Intel Xeon processor 5500 series with integrated memory controllers and Intel Turbo Boost Technology along with a new lineup of professional graphics solutions, built-in high-definition (HD) audio and an option for solid-state drives.
In addition the DASH Management Technology will use hardware and software inventory capabilities that are available all time to give an accurate response. Designed with the environment in mind, the HP Z Workstation line includes a new HP-exclusive WattSaver feature that manages power in the "off" state at less than one watt. Moreover, the Z Workstations include 85 percent efficient power supplies, reducing both overall energy usage and the amount of waste heat released
According to a global study jointly released by IBM and InfoTech Research Group, even in a very difficult economic environment, Indian small and medium enterprises (SMEs) are eager to actively invest in initiatives that reduce the environmental impact of their information technology.
The study is based on a survey of more than 1,000 information technology executives at companies with between 100 and 1,000 employees across industries and in a dozen countries including the India, United States, Canada, France, Germany and the United Kingdom.
The findings show that more than 55 per cent of Indian companies are going to, or have already commissioned third-party environmental audits, purchased emission credits, or have made improvements in their supply chain efficiency to reduce energy consumption. 63 per cent of Indian IT enterprises have completed a retrofit of existing server rooms to increase energy efficiency, or have a pilot project underway.
Almost two-thirds of all companies globally are currently, or are planning within the next 12 months, to add virtualization technology to their servers, consolidate storage systems, or retrofit their server rooms.
�Businesses around the world have discovered that going green isn�t just good for the planet; it�s good for their bottom line,� said Ramesh Narasimhan, Director, General Business, IBM India/South Asia. �Green IT strategies are leading to savings in operational expenditure; lower space and power and higher ROI. The findings in this report highlight how mid-size companies are realizing significant cost savings when they adopt Green IT initiatives.�
Significantly, there are compelling business benefits associated with �going green� and reducing the negative impact on the environment is a welcome addition. The driving factor pushing companies to adopt Green IT to reduce their costs while reducing the negative impact on the environment is an obvious additional benefit.
The study found companies typically fall into one of four IT personalities; green advocates, smart spenders, green observers and green seekers. Green advocates, companies that integrate environmental considerations into all areas of their business, makes up about 25 per cent of the companies surveyed. Smart spenders make up 38 per cent of the survey group and are defined as SMBs willing to make upfront investments to achieve a long-term cost reduction. Green observers, who make up 30 per cent of the survey group, do not have specific environmental goals and need management support for initiatives to improve energy efficiency. Green seekers, at 7 per cent, are interested in adopting energy efficient technology but are unsure of where to start and how to quantify results.
Saving electricity requires the measurement of IT electrical consumption, something many companies cannot do. However, the survey finds that more than 50 per cent of companies have implemented some form of energy measurement for their information technology infrastructure, and about one-quarter plan to do so in the year ahead.
About 60% of the total respondents weigh the importance placed on business benefits against environmental benefits, suggesting that IT initiatives to help improve energy efficiency must yield financial returns in order to get the green light.
Countries with some of the highest fuel prices in the world have not, up to this point, turned to remote conferencing and telecommuting initiatives to reduce both cost and energy consumption. The survey found while 50 to 60 per cent of Indian, Brazilian, North American and British businesses are up and running with telecommuting and virtual conferencing capabilities, Germany, France, and, to a lesser extent, the Nordic countries have been slower to adopt these technologies. Initiatives intended to reduce travel are clearly receiving the most attention from geographically �big� countries over the next 12 months. From Brazil to Canada, more than 30 per cent of businesses will aggressively pursue remote conferencing and telecommuting strategies.
Virtualization is also being perceived as a major step in help achieving energy efficient business operation. The rate of server virtualization across most regions (with an average implementation rate of 48 per cent) is evidence that initiatives with a business case comprised of clear cost savings and environmental benefits will win first. For new initiatives to gain acceptance from stakeholders who may be sceptical, a clear case for cost containment, savings or other business benefits must be made first.
Data indicates that IT equipment recycling has shown good progress. Overall, 56 per cent of the companies surveyed have either completed or are implementing outdated hardware recycling programs.
Approximately 23 per cent of IT departments report plans to adopt IT equipment recycling and energy measurement practices within the next 12 months. 65 per cent of all implementations, the study found organizations� initial goals for these projects are met or exceeded.
The Indian marketplace boasts of more than 35 million small and medium businesses and is now competing globally. They will need to gain a competitive edge to win amidst global competition and technology provides them this edge. IBM offers services, research, hardware and software specifically tailored for the SME market in India that can help mid-size companies to be both greener and leaner.
Despite the recessionary phase hitting the bottom-line of the country's IT sector, the northern region appeared to have remained insulated as total IT exports from this region grew by a whopping 30 per cent, with Infosys becoming the top exporter.
Performing against all odds, export of software and IT enabled services from Mohali, Chandigarh and Panchkula have jumped to Rs 1,051.23 crore in 2008-09 against Rs 806.01 crore in 2007-08, as per data provided by Software Technology Parks of India (STPI).
"With the global slowdown casting its shadow on majority of industrial sectors including IT, we were unsure of even touching Rs 1,000-crore mark from this region under current circumstances...but the industry has managed to clock handsome growth in spite of meltdown impact," STPI Joint Director Ajay Shrivastava said in Chandigarh.
Of the total export of Rs 1,051.23 crore, the exports from SEZs of Chandigarh zoomed to Rs 318 crore in 2008-09, posting a growth of 127 per cent in one year of its operation.
Infosys Technologies continued to retain the position of top IT exporter from here as its total exports, including SEZ, was Rs 565.14 crore against Rs 342.88 crore in the year-ago period.
Interestingly, the exports of Infosys account for almost half of the total IT exports from the tricity of Mohali, Panchkula and Chandigarh.
President Barack Obama said on Saturday he is "ready to fight" for a tough new agency to protect consumers from risky loans and other financial products and lashed out at groups that might stand in the way.
"These interests argue against reform even as millions of people are facing the consequences of this crisis in their own lives," Obama said in a weekly radio address.
"These interests defend business-as-usual even though we know that it was business-as-usual that allowed this crisis to take place."
Obama said opponents were already "mobilizing" against his proposal earlier this week to create a new Consumer Financial Protection Agency as part of the most sweeping set of financial regulatory reforms since the 1930s.
The new agency, which Congress would have to approve, would have the power to write rules and design or ban financial products. It could also examine firms and impose fines and other penalties on almost any institution that offers products such as home loans or credit cards.
Critics argue that the new agency would stifle financial product innovation, boost the cost of regulatory compliance and cause prices for consumers to rise.
"It's going to create exactly the type of duplication, second-guessing and layering that we feared," David Hirschman, president of the U.S. Chamber of Commerce's Center for Capital Markets, said earlier this week.
Obama said the proposed agency was badly needed to help consumers make sense of complex financial instruments and to keep loan companies honest.
"Today, folks signing up for a mortgage, student loan, or credit card face a bewildering array of incomprehensible options. Companies compete not by offering better products, but more complicated ones -- with more fine print and hidden terms," Obama said.
"The American people sent me to Washington to stand up for their interests. And while I'm not spoiling for a fight, I'm ready for one."
Senior lawmakers have said they expect to pass financial reform regulation by the end of the year.
Treasury Secretary Timothy Geithner, at a Senate hearing on Thursday, faced the most opposition to Obama's proposal to give the Federal Reserve new powers to police broad risks in the economy.
Some lawmakers believe the central bank failed to halt practices that led to the global financial crisis.
Giving the Federal Reserve more authority "is like a parent giving his son a bigger, faster car right after he crashed the family station wagon," said Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat.
The Reserve Bank of India (RBI) should look at eventually reversing the expansionary policy pursued in the wake of the global economic crisis, Governor Duvvuri Subbarao said on Saturday.
"All of you would agree around the world also there is concern, there is attention being paid to reverse these expansionary policies," Subbarao told students at a banking institute. "In the Reserve Bank of India, we will be looking at reversing the expansionary policy at an appropriate time."
Subbarao did not say how or when the policy will be reversed but said he will not do it right now or in the near future.
In its efforts to stimulate the economy, the RBI has cut its key lending rate by 425 basis points to 4.75 percent since the collapse of Lehman Brothers last year. The rate at which it absorbs surplus cash from the banking system has been cut by 275 basis points to 3.25 percent.
As well, it has cut the ratio of cash that banks must deposit with the central bank to 5 percent from 9 percent in the middle of last year.
Subbarao said the stimulus measures of both the government and the central bank have worked to some extent. "Certainly we are seeing our own versions of green shoots in certain sectors like cement, steel and coal," he said.
He also said growth in vehicle sales as well as a pick up in rail freight traffic were encouraging. "But as I said, this is not a complete picture and there are a number of sectors of the economy which have to see a significant revival," he said.
In April, the RBI said it expected Asia's third largest economy to expand by about 6 percent in the fiscal year 2009/10 ending in March, below last fiscal year's 6.7 percent.
Many private sector economists forecast growth of between 5.8 to 7.2 percent. The head of prime minister's economic advisory council predicted on Saturday that growth would match at least last year's level.
Subbarao said although the wholesale price index fell in the first week of June, food and primary articles inflation was significant. Consumer price index inflation was 9 percent, he said.
The governor said the central bank looked at a number of variables of inflation including an assessment of inflationary expectations to formulate its policy.
India's wholesale price index fell 1.61 percent in the 12 months to June 6, compared with the previous week's annual rise of 0.13 percent, government data showed on Thursday. The fall was the first in at least three decades.
"There are definite trends coming through although the headline index is negative ... Oil prices are firming up and commodity prices are increasing around the world. Food production is below the trend level," Subbarao said.
Subbarao declined to comment on whether he expected the government to increase the borrowing programme at its final budget to be unveiled on July 6.
The government has stepped up the pace of its borrowing in recent weeks. It is scheduled to borrow 150 billion rupees via bonds next week compared with 120 billion indicated in the auction calendar. This will be the sixth straight week where the government will be borrowing 25 percent more than originally scheduled.