AUTOMOTIVE

AMERICAS: Positive News for Latin America Automotive Markets

Positive news from the region as both Argentina and Brazil report strong growth in vehicle manufacturing. Adefa, the Argentinian National Automakers' Federation, reported that Q1 production grew 23.8% to 77,203 units compared with the same period last year. In Brazil production in March was boosted by strong domestic demand fuelled by falling interest rates and grew 12.3% compared with February 2006. Mexico's exports of trucks and buses rose almost 50% in March; 86% of the 4,188 vehicles were exported to the USA.

Ford plans to restructure its executive ranks in Latin America and Canada.

Continental AG have officially opened their new plant in Brazil whilst General Motors have announced that they will invest almost $650m in a new plant in Mexico and Daimler Chrysler will spend approximately $1bn upgrading their assembly site in Toluca, Mexico.

Prime-Tass reports that Russian automaker Gaz is considering assembling its mid-sized Gazel trucks and vans in Brazil and General Motors do Brazil is negotiating the export of the Brazilian made Chevrolet Vectra to central Europe.

TELECOMS

EUROPE: Aid money supports growth of Telecoms markets in EU accession countries.

Growth in both revenue and customer numbers in the Central and Eastern Europe telecoms sector remain consistently higher than in Western Europe. The recent accession into the EU of eight of the region's countries, as well as preparations for accession of a further three, are important drivers of this growth as aid money from EU structural funds is tied to market liberalisation. In the Czech Republic, Poland and Hungary this process is virtually completed while in others it is being initiated.

The majority of growth is in the mobile sector whilst growth for fixed-line operators may be restricted to satisfying the demand for high-speed data services.

TELECOMS

ASIA: Under WTO rules China must open telecoms markets by end of 2006

China remains anomalous in developing telecoms markets in that it's fixed line sector remains larger than the mobile market. It remains to be seen whether the issuance of 3G licences in 2006 will alter this scenario.

Under WTO rules China must open its telecoms markets to overseas operators by the end of 2006. China Unicom has recently announced that it is seeking a foreign investor to back its 3G development.

The European Commission's recent decision to impose controls on roaming tariffs has been seized upon by certain Asian commentators who are pressing their national regulators to ask local operators to justify their charges.

In India LG Electronics is planning to raise production of GSM phones by 300% to satisfy both domestic demand and export markets in, amongst other countries, Sri Lanka, Bangladesh and Kenya.