Volkswagen to recall Audis
Volkswagen’s main Chinese joint venture has recalled 680,925 Audi vehicles to check and possibly replace a coolant pump it said might become clogged and overheat. The Chinese General Administration of Quality Supervision, Inspection and Quarantine yesterday said the recall applies to Audi A6L, Audi A4L and Audi Q5 vehicles manufactured in China between May 2011 and January last year. The company has also recalled imported Audi A4 Allroad sport utility vehicles and Audi A5s made between November 2011 and November 2013. The statement said the recall focuses on a coolant pump that might become clogged and overheat, possibly causing a fire in the engine compartment in extreme cases. FAW-Volkswagen Automotive Co Ltd (一汽大眾), the German automaker’s joint venture with state-owned FAW Group Corp (第一汽車), said it would check the pumps, replace any that have problems and upgrade software.
Industrial output rebounds
Industrial production rebounded in January, reaffirming the country’s favorable economic outlook after factory orders slumped the most in eight years. Output, adjusted for seasonal swings and inflation, rose 2.8 percent from December last year, when it dropped a revised 2.4 percent, the Federal Ministry For Economic Affairs and Energy said yesterday. The indicator’s reading compares with a median estimate for a 2.7 percent increase in a Bloomberg survey. Production was unchanged from a year earlier. The data followed a report on Tuesday that showed factory orders plunged at the steepest pace since 2009 amid markedly below-average demand for big-ticket items. Output in January was bolstered by a 6.1 advance in investment and a 2.3 percent increase in consumption, the data showed. Construction dropped 1.3 percent, while energy production slipped 0.7 percent.
Imports surge 44.7 percent
Imports last month jumped 44.7 percent year-on-year, while exports rose 4.2 percent annually in yuan terms, the General Administration of Customs said yesterday, leaving a trade deficit of 60.4 billion yuan (US$8.7 billion at the current exchange rate). The results were skewed because of the week-long Lunar New Year holiday that shuttered factories and ports across the nation in late January, compared with February last year, distorting base year comparisons. The country faces more challenges and uncertainties this year. US President Donald Trump has accused the government of unfair trade practices and is now in a position to carry out threats with US Secretary of Commerce Wilbur Ross sworn in.
PageGroup sees profit rise
British recruitment firm PageGroup PLC reported an 11.7 percent rise in full-year profit as overseas growth more than offset a continued cooling in the British hiring market ahead of the country’s planned exit from the EU. “Our businesses in continental Europe, Australasia and Latin America, excluding Brazil, all performed well,” CEO Steve Ingham said in a statement. “In the UK, client and candidate confidence levels were impacted by the EU referendum result, with activity levels reduced.” The company, which mainly finds candidates to fill permanent positions, said gross profit rose to ￡621 million (US$755.3 million at the current exchange rate) in the year ended on Dec. 31 last year, from ￡556.1 million a year earlier.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’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
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to