AUTOMAKERS
Mexico fines VW US$8.9m
Mexican authorities fined German automaker Volkswagen AG (VW) US$8.9 million on Monday for selling more than 45,000 cars without certificates for emissions and noise compliance. The cars were all this year’s models and included the brands VW, Audi, SEAT, Porsche and Bentley, according to the prosecutor’s office for environmental protection. The fine followed an inspection in December last year of Volkswagen’s Mexican office in the central state of Puebla. The plant produces cars for Mexico and export markets. The prosecutor’s office said the Mexican Ministry of Environment and Natural Resources is still investigating whether VW cars sold in Mexico were fitted with devices to cheat emissions tests.
AVIATION
Orders in at Singapore show
Mitsubishi Aircraft Corp, the maker of Japan’s first passenger jet, and propeller-plane maker ATR yesterday announced orders from lessors at the Singapore Airshow amid concern that a two-year, multibillion-dollar order spree could soon start losing steam. Mitsubishi Aircraft signed a letter of intent with US lessor Aerolease Aviation LLC for 10 planes on a firm basis, with an option to purchase 10 more, the companies said in a statement. The cost for 20 planes would be US$946 million in list prices, before customary discounts. ATR said it won a US$130 million order from Singapore-based lessor Avation PLC.
TELECOMS
Netherlands merger set
British mobile phone giant Vodafone and US cable group Liberty Global on Monday said they are merging their Netherlands operations to create a company worth 19 billion euros (US$21 billion). The companies said they are going to create a 50-50 joint venture. Vodafone, whose Dutch operations are worth a bit less than those of Liberty Global, is going to make a cash payment of 1 billion euros to the US firm to equalize ownership in the new firm. With more than 15 million customers, it will be the second largest telecom company in the Netherlands. The companies foresee synergies of 280 million euros per year and 3.5 billion euros altogether, when cost reductions are taken into account.
MANUFACTURING
Michelin earnings rise 19%
Michelin & Cie, Europe’s biggest tiremaker, yesterday posted a 19 percent increase in full-year earnings for last year as lower raw material prices and cost-cutting helped lift profitability for car and truck tires. Operating profit before one-time gains and charges increased to 2.58 billion euros from 2.17 billion euros in 2014, the French firm said in a statement. That exceeded the 2.48 billion euro average of 15 analyst estimates compiled by Bloomberg. Michelin will raise the dividend to 2.85 euros a share from 2.50 euros for 2014. Analysts were predicting a payout of 2.70 euros a share. The company forecast higher operating earnings this year before currency fluctuations and structural free cash flow of at least 800 million euros.
TELECOMS
Orange sees earnings rise
Orange SA yesterday reported a slight increase in earnings and said the discussions to take over Bouygues Telecom will take several more weeks. Full-year adjusted earnings before interest, taxes, depreciation and amortization rose less than 1 percent to 12.4 billion euros, France’s largest phone company said in a statement. Analysts predicted 12.3 billion euros. Sales were little changed at 40.2 billion euros, compared with the average estimate of 40.1 billion euros.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last