AUTOMAKERS
Tesla to unveil new model
Tesla Inc chief executive officer Elon Musk has announced on Twitter that the company’s next vehicle would be unveiled on Thursday next week. The Model Y is a sports utility vehicle and is expected to share many of the same underpinnings as its lower-cost sedan, the Model 3. That shared technology should help expedite production. It would also be about 10 percent bigger than a Model 3, so cost about 10 percent more, Musk said in a series of tweets. Prices for a Model 3 start at about US$35,000. Musk has told investors that the Model Y would share about 75 percent of the same components as the Model 3. The company has been trying to move beyond its niche as a maker of luxury cars with a wider array of new products.
JAPAN
Official eases trade woes
The country’s top currency official said the nation’s current account surplus is a result of investments abroad rather than the exchange of goods, and it should not become a trade issue. It is not uncommon for the country’s savings to grow because of its aging population, Vice Finance Minister of International Affairs Masatsugu Asakawa told a conference in Tokyo. His remarks came after the country’s trade negotiator Toshimitsu Motegi urged bilateral talks with the US as soon as possible, following US President Donald Trump complaining about years of “unfair” trade.
FRANCE
Web giants to be taxed
The country intends to tax the revenue of about 30 Internet giants, such as Amazon.com Inc, to help ensure “fiscal justice,” Minister of Finance Bruno Le Maire said. The levy of as much as 5 percent of sales would be retroactive from Jan. 1 and potentially raise about 500 million euros (US$570 million) for the state, Le Maire told Le Parisien newspaper. Under the plan, which the Cabinet is to discuss tomorrow, the tax would apply to any company with global revenue of more than 750 million euros and French sales above 25 million euros, Le Maire said.
APPAREL
Ted Baker CEO resigns
Ted Baker PLC chief executive officer Ray Kelvin resigned amid an investigation of his conduct, including allegations of behavior that was demeaning to employees of the British apparel chain. Kelvin had taken a voluntary leave of absence from the chief executive officer role in December last year as the board hired law firm Herbert Smith Freehills LLP to investigate allegations of behavior, including unwanted hugs and asking female employees to sit on his knee. He has denied the accusations. Acting chief executive officer Lindsay Page is to continue in the role. Chairman David Bernstein would “provide additional support” as executive chairman, the company said.
UAE
Dubai to help SMEs
Dubai plans to expedite government payments to small and medium-sized enterprises (SMEs) in an effort to revive economic growth. The government would pay SMEs within 30 days instead of 90 days, state-run WAM news agency reported. The measure is expected to result in 1.6 billion dirhams (US$435 million) of additional liquidity to the companies, the news agency said without elaborating. The plan also includes a reduction in insurance costs for SMEs that would not affect their eligibility for government tenders.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
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