European automotive majors could see more struggle in coming quarters as the automobile sales have been dropping in the recent months. With bleak outlook for future months, the auto majors are having no option but to cut staff and reduce plant costs.
Major auto companies operating in European region are expecting years of low sales due to austerity measures by European governments. With continued plunge in sales of new vehicles, the companies have to reduce their operating costs.
In year 2012, the car sales dropped 8.2 per cent in the European Union nations. The new vehicle registrations in Germany were down by 10% this February compared to last year. For the same period, the sales in France were lower by 12% and in Italy were lower by 17percent.
Many companies are betting on the growing markets like India and Brazil. By shifting production base to these countries, the automobile companies are able to maintain a strong hold in the developing nations.
Indians are buying more gold even when the yellow metal is ruling at its all time high prices. Many experts were expecting that the price rise in Gold could impact the consumption of the precious metal but Indians have proved them wrong.
More people are buying gold and many of them buy it as an investment for long term. Global gold demand registered a decline of 11 per cent during third quarter of 2012. China and India are among major consumers of Gold. The gold purchases in China witnessed decline of 8 per cent during the same period.
Indian gold consumption went by 9 per cent in third quarter. The price of gold has been ruling higher in India due to rise in value of US dollar compared to Indian currency.
However, investors are finding gold as a safer investment and this has pushed the demand for the yellow metal. The recent trends in real estate market have been bearish. Due to lower returns on real estate investments, some investors are churning their funds and investing in Gold.
The demand for Gold coins and bars in Germany has witnessed steep fall. In Indian market, the price of gold was trading at Rs 31,596 per 10 grams.
It has been recently revealed that IPCom Patent firm has asked the cell phone retailers from Germany to halt the sale of HTC phones for the present. They have further threatened them for legal action if their needs are not fulfilled.
This is being done because HTC apparently hasn’t complied with the court ruling that had details on the injunction of the sales. The other action taken by IPCom was that it went to the Mannheim court, so that a fine can be imposed on HTC for not abiding by the necessary rules from the year 2009.
There is an impending fine of millions of Euros that the firm might have to pay in the time to come. This shall not only make for the financial losses for the firm, but also result in damaging the goodwill and the standing of the firm in the global markets.
HTC for now is at an increasing risk and it is essential for now to solve these legal battles as soon as possible because the cut throat competition in the market is ruthless and would excuse the firm for being entangled in other issues and might soon result in losses for the firm.
HTC is already dealing with falling sales needs to hold on firmly to its basics so that it can make a comeback in the time that follows.
There are also claims made by Apple against HTC and they need to be dealt with care so that they don’t damage their finances as well as their image as a brand further.
Market competition as well as the macroeconomic downturn in the world has already rendered an unstable position to the firm, and they need to make sure that the situation doesn’t worsen further.