The Star Online: Business
The Star Online: Business |
- Shares on Bursa Malaysia higher in early trade
- Car sales impacted by amended Hire-Purchase Act
- Greek PM survives confidence vote in parliament
| Shares on Bursa Malaysia higher in early trade Posted: 21 Jun 2011 06:55 PM PDT Published: Wednesday June 22, 2011 MYT 9:51:00 AM |
| Car sales impacted by amended Hire-Purchase Act Posted: 21 Jun 2011 05:16 PM PDT PETALING JAYA: Worried about the possibility of trickling cashflow, a rise in booking cancellations and longer leadtime for completion of sales, many stakeholders in the automotive sector say the recent amendments to the Hire-Purchase Act 1967 (HPA) will hurt the car retail trade. Already, there are complaints of a slowdown in sales. While some car marque franchise holders and dealers said they were supportive of the amendments, which aim to protect vehicle buyers from losing their booking fees and deposits paid to unscrupulous sales advisors and car dealers, among other benefits, many automotive stakeholders have described the amended Act as "confusing" and "troublesome." One car dealership's general manager said the situation was "unbelievable" and the amended Act overly protected consumers to the detriment of car retailers. The Proton Edar Dealers Association Malaysia (PEDA) and Federation of Motor and Credit Companies Association of Malaysia have urged the Government to defer and review the amendments to the Act. PEDA president Armin Baniaz Pahamin claimed that Proton car sales had dropped by 50% since last week. Another car dealership's general manager claimed that the sales of a Japanese car marque had also dipped significantly. "Normally, the Japanese principal allocates between 150 and 200 cars to its dealers each week. In the last few days, the allocation dropped to only 10 cars. This is because until we have firm orders (meaning booking fees), we will not order the cars from the principal," he claimed. Under the amendments, effective June 15, all used vehicles for sale will undergo Puspakom's 18-point inspection to ensure their roadworthiness. Another issue of contention was the 1% maximum booking fee (based on the total selling price) mandated by the amended Act, which requires car sellers to refund customers 90% of the booking fee if the deal falls through. Armin pointed out that unlike in the past, presently car sellers or dealers could not accept booking fees before the car buyer was served with a Second Schedule notice. "The Second Schedule notice can only be completed and served, in practise, usually after the hire purchase loan application is approved.," he said yesterday. The remaining 9% downpayment on the car can only be paid when the hire purchase agreement has been prepared, with details such as the car's chassis number included. This means the hire purchase agreement can only be prepared after the actual car unit has been allocated to the dealership. "Now, with the amended Act, a car buyer can place phantom bookings' at several different car dealerships without paying booking fees. This will result in a waste of loan application resources and inefficiencies for banks and car dealers," said Armin. He said car buyers would have to pay more visits to car dealers or banks to sign documents. With the amended Act, car dealers would face cashflow problems as they would lack the booking fees and downpayments as working capital to pay for the cars ordered from their principals. Armin claimed that the Government did not consult stakeholders before implementing the amended Act. Meanwhile, car dealers and marque franchise holders have expressed unhappiness over the issue and said the car buying process now involved more paperwork. "We are studying the implications on our current vehicle-promotion packages," said an industry source. One car dealership manager in Alor Setar said the amended Act made it tough for dealers to offer "zero downpayment" or "full loan" packages. Perusahaan Otomobil Kedua Sdn Bhd managing director Datuk Aminar Rashid Salleh said while the company supported the amended Act, automakers that sold cars in high volumes might see sales impacted. "We may not be able to efficiently register the vehicles on time for our customers, especially during the month-end rush. "This is due to the longer process flow that requires detailed paperwork between the banks, Perodua and our customers." Full Feed Generated by Get Full RSS, sponsored by USA Best Price. |
| Greek PM survives confidence vote in parliament Posted: 21 Jun 2011 05:04 PM PDT ATHENS, Greece (AP) - The Greek prime minister survived a crucial confidence vote early Wednesday, keeping alive a government dedicated to averting a debt default that could spark a financial maelstrom around the world. Lawmakers voted 155 to 143 along party lines to back George Papandreou, who now faces a critical vote next week on a massive austerity package that Greece's international creditors have said must pass by the end of June. He is seeking 28 billion ($40.24 billion) in budget cuts and new taxes and 50 billion worth of privatization of public assets. Unless the new measures pass, Greece will not receive the next batch of bailout funds, worth 12 billion, and will face a disastrous default in July, when it runs out of money. A default by Greece could drag down Greek and European banks and renew fears over the finances of other eurozone countries such as Portugal, Ireland and Spain. Papandreou must still convince all lawmakers of his Socialist party to support the austerity bill, which has provoked strikes, riots and a slump in his popularity. While all 155 Socialists voted in favor in the confidence motion, several have publicly criticized the austerity measures and at least one has said he will not back them. After the vote, riot police fired tear gas and stun grenades to push back a group of about 200 protesters who had broken off from a main rally of several thousand to throw bottles and other objects at the police lines guarding Parliament. "We will do everything in our power to end the state of insecurity face Greek families and exit this crisis in a safe way. We have a plan, we have prospects," Papandreou said during a debate before his victory. "Regardless of the panic caused by some, we are on an organized course, helped by the international community with massive loans - the largest every given in the history of our planet." Papandreou's government came to the brink of collapse last week as protesters rioted on the streets of Athens, two party rebels resigned their parliamentary seats and talks with the opposition conservatives over forming a pro-austerity coalition government fell apart. In response, he reshuffled his cabinet, replaced his increasingly unpopular finance minister with a party heavyweight - his main internal rival - and called for the confidence vote. European officials have been pressing opposition leader Antonis Samaras to back the austerity bill, which will run to 2015, two years beyond the current government's mandate. But Samaras has insisted the thinking behind it is wrong, saying it is keeping Greece in a recession. He has called for a renegotiation of the initial bailout deal. Papandreou's losing the confidence vote would have likely led to early elections and thrown into question whether Greece could pass the new austerity. Expectations he would win lifted world markets earlier in the day. As deputies voted, several thousand protesters gathered outside Parliament chanting "Thieves! thieves!", shining green laser lights at the parliament building and into the eyes of riot police protecting it. Continuing strikes by electricity company workers objecting to privatization caused a second day of rolling blackouts. "I understand the anger, the fear, and the question whether we will make it," Papandreou said. "My answer is that we have been making it every day for the last 20 months, with difficulties and mistakes, with a price to pay and with sacrifices but we are succeeding." Greece is being kept financially afloat by 110 billion ($157 billion) package of bailout loans granted by other eurozone countries and the International Monetary Fund last year, and has implemented strict austerity measures in return, cutting public sector salaries and pensions, increasing taxes and overhauling its welfare system. But the country has struggled to meet it targets, missing many, and is now in negotiations for a second bailout, which Papandreou has said will be roughly the same size as the first. Officials from the IMF, European Commission and European Central Bank who have been overseeing Greece's reforms were in Athens Wednesday to discuss the new austerity measures. On Tuesday the new finance minister, Evangelos Venizelos, promised that parliament will pass the unpopular austerity package by the end of June. "We must follow this course to save the country," Venizelos said. "Our European partners ... face us with distrust," he said. "This is an atmosphere that we have to change." Papandreou's popularity has been hammered by the latest austerity measures, with an opinion poll published Tuesday giving the Socialists a 20.1 percent approval rating. Rival conservatives faired marginally better, at 21 percent, in the GPO survey for private Mega television of 1,000 adults. No margin of error was given. - AP Latest business news from AP-Wire Full Feed Generated by Get Full RSS, sponsored by USA Best Price. |
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