Hyundai, Kia face lawsuits
Hyundai Motor Co and Kia Motors Corp face consumer lawsuits in the US after the South Korean automakers admitted they overstated the fuel efficiency of their latest models. A Hyundai owner and a Kia owner filed a complaint on Nov. 2 in federal court in Santa Ana, California, seeking to represent other owners of certain 2011 through 2013 models in a class action — or group lawsuit — over the misrepresentations. Hagen Berman Sobol Shapiro LLP, a Seattle-based law firm representing the plaintiffs, said in a statement on Wednesday it filed a second lawsuit in Los Angeles on behalf of owners. The economic damage to Hyundai and Kia could approach US$775 million, the law firm said.
Lender to receive more help
France and Belgium have agreed to pump 5.5 billion euros (US$7.02 billion) into Dexia, the stricken lender the two states were forced to bail out a year ago, the Belgian finance ministry said yesterday. The prospect of throwing more money into Dexia, which already absorbed 6.4 billion euros in funds in 2008, threatens to undermine both countries’ efforts to rein in their deficits at a time of intense scrutiny of eurozone budgets. Belgium will inject 2.915 billion euros, or 53 percent of the amount, with France providing the remaining 2.585 billion euros, the ministry said in a statement.
Lenovo claims PC top spot
Chinese multinational computer and electronics company Lenovo Group (聯想) said yesterday it had become the global market leader in consumer and notebook PCs, as it posted a 13 percent rise in net profit for the three months to the end of September of US$162.1 million from US$143.9 million a year earlier. Revenue climbed 11 percent to US$8.67 billion from US$7.79 billion a year earlier, the company said in a filing to the Hong Kong Stock Exchange. Lenovo’s share of the overall PC market reached a record high of 15.6 percent in the July-September quarter, it added, putting it just 0.2 percent shy of leader Hewlett-Packard Co.
EADS takes hit on A380
The cost of fixing problems on some A380 super jumbos weighed on third-quarter profits at Airbus parent company EADS NV. Net profit at the European aircraft giant fell 1 percent to 309 million euros in the July-to-September period, down from 312 million euros a year earlier. Sales rose 15 percent in the quarter to 12.3 billion euros, and the Netherlands, based company says it is on track to exceed its target of 10 percent sales growth for the full year.
Adidas reports earnings rise
Adidas AG, the German sportswear maker, has reported a 14 percent rise in third-quarter earnings, but lowered its full-year revenue forecast due to declines of its Reebok brand and the ongoing National Hockey League lockout in North America. The company, which previously forecast a full year rise of about 10 percent, said revenues would instead increase by high single digits. Net profit in the third quarter was 344 million euros, up from 303 million euros in the same period a year ago. Revenues rose 11 percent to 4.17 billion euros. Stripping out currency effects, revenues grew 4 percent, the company said.