FRANKFURT (Reuters) – Tesla’s announcement earlier this month that it will build its first European factory near Berlin will draw further companies from the electric mobility and energy storage sectors into Germany, a state premier told newspaper Die Welt.
“They are already on their way. I’m hearing there are further inquiries with the communities and the regional business development programme. Tesla will cause other companies to follow,” said Dietmar Woidke, premier of the eastern German state of Brandenburg that surrounds Berlin.
He said Brandenburg was already in talks with other companies, declining to identify them due to confidentiality agreements. “I expect that we can announce it before Christmas,” Woidke said.
Tesla’s move is a big boost for Germany as a centre for manufacturing after BMW and Daimler in recent years chose to build new factories in Hungary, and after its auto industry was hit hard by Volkswagen’s admission in 2015 that it cheated U.S. diesel emissions tests.
(Reporting by Christoph Steitz; Editing by Mark Heinrich)
Brandenburg’s PM Woidke speaks speaks to the media on Tesla European factory in Potsdam
FRANKFURT (Reuters) – Daimler said on Friday it will cut at least 10,000 jobs worldwide over the next three years, following others in the industry as they cut costs to invest in electric vehicles while grappling with weakening sales.
It marks the third announcement on cost cuts this week by a major German car company as automakers seek to fund huge investments into cleaner and self-driving technologies while demand in China, their biggest market, is falling and a trade war between Washington and Beijing is curbing economic growth.
“The automotive industry is in the middle of the biggest transformation in its history,” Daimler said in a statement.
Daimler, the owner of Mercedes-Benz, revealed the 3% cut in its workforce after reaching an agreement on its plans with labor unions.
They have agreed on a variety of measures to cut costs and jobs, including expanding part-time retirement and a severance program to be offered in Germany. The company is also cutting 10% of worldwide management positions.
Staff reductions would be in the low five-digits, or at least 10,000 people, according to Wilfried Porth, a board member in charge of human resources. The company employed 304,680 staff at the end of the third quarter.
Plans laid out by Daimler in November showed the company aimed to cut staff costs by around 1.4 billion euros ($1.54 billion) by the end of 2022.
The announcement comes days after Volkswagen’s <VOWG_p.DE> luxury car unit Audi said it would cut up to 9,500 jobs or one in ten staff by 2025, freeing up billions of euros to fund its shift toward electric vehicle production.
Also this week, BMW said that its management and labor had reached an agreement on measures to reduce bonus and other pay schemes for staff to cut costs.
Car suppliers Continental and Osram have also announced staff and cost cuts.
Daimler has repeatedly cut its profit outlook over recent months, partly to cover a regulatory crackdown on diesel emissions but also because of a slowing auto market.
Group operating profit will be “significantly lower” than a year ago, the company said last month.
Other measures to reduce staffing costs include offering shorter working weeks.
Agreements in place to prevent forced redundancies in Germany until 2029 will remain in place, Daimler said.
The workforce needs a clear strategy for the future, said Michael Brecht, chairman of Daimler’s works council. “A reduction in capacity must not be carried out on the backs of the employees,” he said.
(Editing by Elaine Hardcastle)
The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin
HAMBURG (Reuters) – Airbus <EADSY> is considering producing a hybrid plane by 2035 as it strives for a low emission aircraft, its chief executive said.
CEO Guillaume Faury, speaking to journalists on Thursday evening in comments embargoed for Friday, said that the plans were at an early stage.
(Reporting by Jan C. Schwartz; Writing Tom Sims; Editing by Riham Alkousaa)
FILE PHOTO: The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse
– AWACS part of NATO investment in hi-tech surveillance
– Announcement comes days before NATO summit in London
BRUSSELS, Nov 27 (Reuters) – NATO on Wednesday awarded Boeing Co a $1 billion contract to upgrade its fleet of AWACS reconnaissance planes, a deal officials said showed the strength of transatlantic cooperation days before an alliance summit in London.
First flown in 1982 and repeatedly modernised, the Boeing-made planes, which can detect hostile aircraft, missiles, ships and other weaponry far beyond NATO borders, will be overhauled with more powerful computer processors, servers and equipment.
The 14 planes, based at an air base in Germany, can already exchange information via digital data links, with ground-based, sea-based and airborne commanders, but need a greater capacity to transmit data as technology develops.
The upgrade will keep one of the few military assets owned and operated by the Western alliance in service until 2035.
AWACS have been flown in support of the international coalition against Islamic State, gazing deep into Syria from Turkey, as well as along NATO’s eastern flank following Russia’s 2014 annexation of Crimea from Ukraine.
“The modernisation will ensure that NATO remains at the leading edge of technology,” NATO Secretary-General Jens Stoltenberg told a news conference alongside Boeing President Michael Arthur, standing in front of one of the planes.
“It will provide AWACS with sophisticated new communications and networking capabilities, so these aircraft can continue their vital missions,” he said.
One NATO official described AWACS, which have crews drawn from 18 different allies, as a symbol of NATO unity, at a time when U.S. President Donald Trump has questioned its value and French President Emmanuel Macron last month said NATO was dying.
The upgrade will be funded by 16 NATO allies, including the United States, Germany, Turkey, Italy and Spain, and some work will be subcontracted to European suppliers including Leonardo and Airbus.
The modernisation comes as NATO takes delivery of the first of five Global Hawk drones, which will be based in Italy.
After years of delays, the high-altitude drones made by Northrop Grumman give the alliance its own spy drones for the first time and will work with the AWACS to protect ground troops, as well as other tasks.
The drones will be able to fly for up to 30 hours at a time in all weather, providing near real-time surveillance data.
(Reporting by Robin Emmott Editing by Mark Heinrich)
FILE PHOTO: BAIC Group automobile maker at the IEEV New Energy Vehicles Exhibition in Beijing
BEIJING/FRANKFURT (Reuters) – Daimler’s <DDAIF> main Chinese joint venture partner BAIC Group has signalled its intention to increase its stake in the German luxury car manufacturer, sources briefed on the matter said, after it built up a 5% Daimler holding in July.
Officials at BAIC’s listed company, BAIC Motor Corp Ltd, said at investor conferences in mid-October that “both sides are willing to increase stakes in the other”, responding to questions about future relationship between BAIC Group and Daimler, the sources said.
Daimler said in a regulatory filing on Friday that HSBC held 5.23% in Daimler’s voting rights directly as well as through instruments such as equity swaps as of Nov 15. BAIC has used HSBC to help it build its initial 5% stake.
Sources declined to be named as they are not allowed to speak to media.
A Daimler spokesman on Monday said, that the company had received notification from HSBC that the voting stake of 5% has been exceeded.
While the spokesman would not say whether BAIC played a role in the transaction, he added that Daimler welcomed long-term shareholders such as BAIC, who support the carmaker’s strategies.
“Daimler AG appreciates BAIC as long-standing partner and long-term investor,” the spokesman said in a written statement.
“Such shareholders help us to further safeguard and strengthen the capitalization of our company,” the statement continued.
BAIC was not immediately available for comment.
Geely, Daimler’s biggest shareholder with a 9.7% stake, said: “We are a long-term investor in Daimler. We do not react spontaneously to any volatility and we support Daimler’s management and their strategy.”
BAIC (Beijing Automobile Group Co Ltd) has been Daimler’s main partner in China for years and operates Mercedes-Benz factories in Beijing through Beijing Benz Automotive.
Two months before its July stake deal was announced, sources told Reuters that BAIC wanted to invest in Daimler to secure its investment in Beijing Benz Automotive.
In March, sources told Reuters Daimler had asked Goldman Sachs <GS> to help it explore increasing its stake in BAIC’s Hong Kong-listed company.
The partners also planned to revamp manufacturing facilities to make Mercedes Benz-branded trucks via their commercial vehicle joint venture Foton Daimler Automotive (BFDA), Reuters reported in August citing a document and sources familiar with matter.
The companies also said Daimler and BAIC’s new energy vehicle unit BluePark have jointly developed a battery research lab in Beijing.
State-owned BAIC built its stake after Li Shufu, chairman of rival private automaker Zhejiang Geely Holding Group, built a 9.69% stake in Stuttgart-based Daimler in early 2018.
By using Hong Kong shell companies, derivatives, bank financing and structured share options, Li kept the plan under wraps until he was able, at a stroke, to become Daimler’s single largest shareholder.
Since the investment, Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture.
Zhejiang-based Geely owns Volvo while BAIC in addition to Daimler has a partnership with South Korea’s Hyundai Motor <HYMTF>.
Daimler said it had collaborated with BAIC in areas such as production, research and development and sales since 2003.
(Reporting by Yilei Sun and Edward Taylor; additional reporting by Arno Schuetze and Ludwig Burger; editing by Brenda Goh, Jason Neely and Louise Heavens)
China’s BAIC willing to increase Daimler holding after 5% stake buy – sources FILE PHOTO: Ola Kaellenius, Chairman of the Board of Management of Daimler AG, speaks at a media event during the Guangzhou auto show in Guangzhou
Railsystems RP GmbH orders two locomotives from Siemens Mobility
Sustainable concept: a combined diesel and electric locomotive
Delivery at the end of 2020
Railsystems RP GmbH has ordered two Vectron Dual Mode locomotives from Siemens Mobility, marking the first order for the new locomotive that can be operated either as a diesel or electric unit. Siemens Mobility first presented the concept at the InnoTrans 2018.
“With the Vectron Dual Mode, Railsystems RP GmbH is getting a locomotive that combines the best of two worlds: On electrified routes, the Vectron Dual Mode is powered by electricity to save fuel and reduce maintenance costs. On rail routes without overhead wires, the Vectron can shift to diesel operation without the operator having to change locomotives,” said Sabrina Soussan, CEO of Siemens Mobility.
The Vectron Dual Mode enables operators to increase value sustainably over their entire lifecycle. The locomotive can also operate through gaps in the electrified sections, eliminating the need to change locomotives. At the same time, conurbations and major cities, where there is often an electrified rail network, are spared emissions. The Vectron Dual Mode is specifically designed for freight service in Germany and is based on proven Vectron components. It operates on a 1,435 mm track gauge and weighs 90 tons. The locomotive is designed for the 15-kV-AC voltage system and is equipped with the PZB train control system. Regardless of whether it operates on electricity or diesel, traction power at the wheel rim is 2,000 kW. The locomotive’s diesel tank has a capacity of 2,600 liters. The Vectron Dual Mode has a top speed of 160 km/h.
MILAN, Nov 19 (Reuters) – Italian infrastructure group Atlantia said on Tuesday it was not ready to join a consortium led by Italian railway group Ferrovie dello Stato to rescue loss-making carrier Alitalia, casting a shadow on the entire project.
After months of negotiations and with just one day left before a deadline expires, the group controlled by the Benetton family said that the conditions did not exist yet for it to join a consortium working on Alitalia.
Atlantia added, however, it remained available to engage in negotiations to seek for an industrial partner for the carrier.
A deadline to present a binding offer for Alitalia expires on Thursday, after being postponed several times.
Loss-making Alitalia has been run by special administrators since May 2017 and talks led by Ferrovie have been going on for a year without a deal.
The carrier, which is burning through its cash reserves, is expected to finish its money at the end of this year.
Ferrovie and Atlantia have been in talks with both U.S. carrier Delta Air Lines Inc and, recently, with German airline Lufthansa.
Delta said it was ready to invest 100 million euros ($111 million) in the Italian carrier but sources had said it did not agree with Ferrovie and Atlantia over the development of the Italian carrier’s long-haul business.
On the other hand, Lufthansa said it was prepared to set up a commercial partnership with the Italian carrier but did not want to take a stake in the group before it has gone through a complete restructuring.
“We will not invest in current Alitalia, but we are interested being a commercial partner,” said Lufthansa CEO Carsten Spohr at an event in Berlin on Tuesday.
Italian daily La Repubblica on Tuesday said the airline could be nationalized for some years before being sold.
Analysts calculate that Italian taxpayers have spent more than 9 billion euros to support Alitalia, which has undergone two previous failed rescue attempts.
($1 = 0.9028 euros)
(Reporting by Francesca Landini; Additional reporting by Ilona Wissenbach in Berlin; Editing by Lisa Shumaker)
FILE PHOTO: Different types of 4G, 5G and data radio relay antennas for mobile phone networks are pictured on a relay mast operated by Vodafone in Berlin
LONDON (Reuters) – Vodafone <VOD> has secured a seven-year technology partnership with Ryanair <RYAAY> to handle services including online booking, passenger boarding and in-flight transactions for the Irish airline in Europe.
The two companies said on Wednesday they had extended an existing partnership for Vodafone Business to support 300 Ryanair sites and some 153 million passengers across 40 countries.
As part of the agreement, the British mobile company will help Europe’s biggest budget airline to speed up the time it takes to connect a new airport or site for use. It should also lead to a faster turnaround of planes.
“Airline passengers will demand even more in the coming years, and we will work alongside Ryanair to help them prepare for the future using our full portfolio of products and services,” said Vinod Kumar, head of Vodafone Business.
Vodafone Business is the mobile operator’s enterprise arm that offers cloud IT services and the connection of unlimited devices on its Internet of Things network for small and multinational companies.
Vodafone Business accounted for 30% of group service revenue in its financial year ending March 31, 2019.
(Reporting by Kate Holton; Editing by Mark Potter)
Alstom will deliver 19 Coradia Continental electric regional trains to the state of Baden-Württemberg. The contract, signed with DB Regio, is worth approximately €120 million. The trains will be built at Alstom’s site in Salzgitter.
Beginning in December 2022, the new trains will be gradually deployed on the routes from Karlsruhe to Heilbronn, Achern, as well as via Freudenstadt to Herrenberg.
The new trains have been designed to optimise passenger experience while meeting the region’s operational requirements. In addition to high-performance WiFi, they will include spacious multi-purpose areas in each car and a large capacity for bicycles. The trains are specifically designed to cope with the steep gradients that punctuate the tracks running through the Black Forest.
“Passengers in the Karlsruhe region can look forward to modern, proven and reliable trains. Our trains not only satisfy passengers, but are also known for outstanding reliability and availability, thus offering absolute planning security for operators,”says Jörg Nikutta, Managing Director of Alstom in Germany and Austria.
The Coradia Continental is part of Alstom’s Coradia range of modular trains that benefits from more than 30 years of know-how. To date, over 2,800 Coradia trains have been sold and 2,400 are currently in service in Denmark, France, Germany, Italy, Luxembourg, the Netherlands, Sweden and Canada.
The new vehicles will be procured by DB Regio AG on behalf of the Ministry of Transport of the state of Baden-Württemberg as the responsible public transport authority for this network. After delivery of the vehicles, they become the property of the Landesanstalt Schienenfahrzeuge Baden-Württemberg (SFBW) and are leased by DB Regio for the term of the 13-year transport contract.
Talgo, together with Scottish Enterprise and Transport Scotland, has signed a jointly agreed framework for the establishment of Longannet, Fife as a manufacturing base for Talgo UK. The agreement is part of arrangements to ensure that Talgo UK will be ready to deliver contracts that Talgo is currently bidding for (and future bids), should the company be successful.
The framework agreement sets out each party’s commitment – to ensure that the proposed multi – million £ factory at Longannet is prepared and delivered at an agreed time and to an agreed specification. This milestone will ensure that Talgo will meet contractual deliverables for the contracts that are being evaluated and proposed.
TALGO is a leading specialised rolling stock engineering company mainly focused on designing, manufacturing and servicing technologically differentiated, fast, lightweight trains.
There are TALGO solutions in 44 countries, and TALGO has an industrial presence in 7 regions, including Spain, Germany, Kazakhstan, Uzbekistan, Russia, the Middle East and the United States. TALGO is renowned worldwide for its innovation, its unique technology, and reliability.
A key part of TALGO UK’s strategy is ‘knowledge transfer’ – building UK domestic capacity for Research and Development. An innovation hub is also planned in Chesterfield. It will act as a focal point for TALGO UK’s Research and Development, bringing together networks of engineering excellence, and creating new opportunities throughout the British Isles.
Talgo President, Carlos de Palacio y Oriol, said: ‘We are committed to Scotland in our bid process. Today’s milestone marks a new phase in an excellent relationship with’ team Scotland. Now let’s get on with securing orders that will bring more jobs and ‘true manufacturing’ of rolling stock back to Scotland’
Executive Director, Scottish Enterprise, Paul Lewis, said: “This Framework agreement is another significant milestone in our work with Talgo, to achieve its ambition of establishing a world-class high value manufacturing facility at Longannet. Scottish Enterprise and our partners are incredibly excited by Talgo’s plans for Longannet, which would deliver 1,000 direct jobs and a host of supply chain opportunities for companies in Scotland’
