■Auto industry
Suzuki to sell mini cars
Japanese mini-auto maker Suzuki Motor will resume domestic sales of a vehicle made by General Motors for the first time in about 10 years, a report said yesterday. Suzuki, a GM affiliate, wants to expand its product line-up beyond minicars, while the US auto giant is seeking to boost sales in Japan, the Nihon Keizai Shimbun said, citing company sources. In November 1992, Suzuki stopped marketing cars imported from GM, due to poor sales in Japan, the newspaper said. Suzuki will start selling GM's Trailblazer sport-utility vehicle from next month which will initially be sold at 300 of its 1,000 domestic dealerships handling vehicles larger than minicars. In November 2001, Suzuki released in Japan the Chevrolet Cruze car jointly developed with GM.
■ Finance
Mizuho expects loses
Mizuho Holdings Inc, which is forecasting a Japanese Yen 220 billion (US$1.87 billion) net loss in the business year ending March, may again raise its forecast for bad-loan costs for this year, the Yomiuri newspaper reported. Japan's biggest bank by assets may raise its estimate for bad loan-related costs by more than Japanese Yen 50 billion, or 4.8 percent, to above Japanese Yen 1.5 trillion, the paper said, citing no one. The bank will also likely announce this week that it expects its net loss will widen this year, the paper said. Mizuho needs to increase bad-loan reserves because Japan's financial regulators have called for tougher loan and collateral assessments to clean up the nation's bad loans. Also, Mizuho's decision to give Japanese Yen 230 billion in financial aid to ailing Seibu Department Stores Ltd will force the bank to increase its loan- loss reserves, the paper said. In November, Mizuho raised its estimate for bad-loan related costs for the year by Japanese Yen 440 billion.
■ Retailers
Gap CFO to be replaced
Gap Inc, the largest US clothing retailer, said Chief Financial Officer Heidi Kunz resigned and will be replaced by Byron Pollitt, who like the company's new chief executive officer, comes from Walt Disney Co. Gap, the owner of Gap, Banana Republic and Old Navy stores, didn't give a reason for the departure of Kunz, who had been with the company since July 1999. Pollitt, 51, was CFO and executive vice president for Walt Disney Parks and Resorts, which was led by Paul Pressler until he left to join as Gap President and CEO. Pollitt, who will be responsible for corporate finance, strategy and information technology, spent 12 years at Disney, and worked with Pressler for eight. Gap, based in San Francisco, in 2001 posted its first loss since at least 1987.
■ Pharmacies
Boots advised to sell units
Boots Plc, Britain's largest pharmacy chain, may sell factories and close its optician chain on the advice of management consultant McKinsey & Co, the Mail reported yesterday, without citing anyone. Following a review of corporate strategy by McKinsey that was delivered to board members last month, Boots is expected to fire its brokers Deutsche Bank AG and auditors KPMG International, the newspaper said. Company spokesman Francis Thomas said Boots is reviewing its "roster" of advisers, though won't necessarily make any changes. He declined to comment further on the newspaper report. Boots is seeking to hire Safeway Plc CEO Carlos Criado-Perez as its new chief executive, the Mail said.
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