Volkswagen AG, Europe's largest carmaker, won't expand car production in China beyond the current 900,000-unit capacity as sales growth slows and the country's market is "so difficult"' to predict, said chief executive Bernd Pischetsrieder in an anal-ysts's conference call. \nVolkswagen also reiterated its profit forecast for the full year, with chief financial officer Hans-Dieter Poetsch saying the Wolfsburg, Germany-based carmaker would "stick to the commitments" given at half-year results last month. \nThe carmaker last month lowered its operating profit forecast for this year by a quarter to 1.9 billion euros (US$2.34 billion) excluding one-time items because of rebates on cars, higher oil prices and spending on reorganization. \nVolkswagen expects its full-year profits in China, its major foreign market, to fall owing to currency factors, Poetsch said. \n"But we are confident of impressive figures in 2004 and 2005," he added. \nVolkswagen said last year that it will invest 6 billion euros, or 60 billion yuan, to double manufacturing capacity in China to 1.6 million vehicles a year and in June said it would open three more factories under the pro-gram. Since then, the carmaker has lowered prices as demand has slowed in response to government's efforts to limit lending. \n"We have no intention of freezing capacity at 900,000 units but we have no intention of having excess capacity either," Pischetsrieder said. \nVolkswagen will decide next year whether to increase production beyond the current level, he said. \nThe carmaker expects to sell between 700,000 and 800,000 units in China this year, up from 697,000 last year. \nThis is lower than a prediction in June made by Bernd Leissner, chairman of Volkswagen's China operation, who said at that time that Volkswagen's sales should rise in line with an 18 percent to 20 percent rise in the market. That would set sales at 822,000 to 836,000 units. \nVolkswagen's profit from its China ventures will fall this year from last year's 561 million euros.
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
NERVOUS MARKET: With the infection sources still unknown for three COVID-19 cases that had departed Taiwan, investors have become uneasy, an analyst said Local shares yesterday came under heavy downward pressure, falling more than 1 percent as renewed fears over a possible increase in domestic COVID-19 infections hit market sentiment after the nation last week reported a case related to a Belgian national. Selling focused on the bellwether electronics sector, led by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which pushed down the broader market as investors ignored gains posted by tech heavyweights on the US market at the end of last week, dealers said. The TAIEX closed down 151.77 points, or 1.2 percent, at 12,513.03, on turnover of NT$231.43 billion (US$7.84 billion). Foreign