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
Nov 15 (Reuters) – Canadian National Railway said on Friday it would cut management and union jobs, as the largest Canadian railroad operator grapples with an economic slowdown.
The announcement comes amid declining freight volumes as trade tensions have weighed on the North American economy.
The number of people to be laid off could rise if demand from rail customers continues to decline, the Canadian newspaper said, citing a person familiar with the matter.
Canadian National Railway spokesman said the action, which includes sending some of its employees on temporary leave, has already begun across its network.
(Reporting by Dominic Roshan K.L. in Bengaluru; Editing by Amy Caren Daniel)
Nov 4 (Reuters) – IAG, the parent of British Airways and Spain’s Iberia, announced a 1 billion euro ($1.12 billion) takeover of Spain’s Air Europa to boost its presence on routes to Latin America and the Caribbean.
The deal follows a setback in Latin America for IAG after Chile’s Supreme Court ruled against a plan that would have allowed it to bolster cooperation with partners in the oneworld airlines alliance.
BA parent IAG ups bet on Latin America with Air Europa takeover Ryanair Chief Executive Michael O’Leary attends a Reuters Newsmaker event in London
Chile’s LATAM Airlines in September then announced it planned to leave the alliance, opting instead for a tie-up with SkyTeam member Delta Air Lines.
IAG shares initially rose more than 2% following the Air Europa takeover announcement but some analysts said IAG may have to shed routes in order to win regulatory approval.
IAG shares were up 1.2% at 1315 GMT.
Ryanair CEO Michael O’Leary said his company will ask the UK’s market watchdog to force IAG to make divestments as part of its Air Europa takeover, a deal he said would be bad for competition.
“Potential remedies, perhaps in the form of slot release or behavioural restrictions, may be required and these could impact the potential synergies,” an analyst at Liberum wrote in a note.
IAG also owns carriers Iberia Express, Level, Ireland’s Aer Lingus and Vueling.
“We are not convinced that having just another brand platform is the optimal move, and could see it potentially combining with Level, Vueling or potentially Iberia Express after some time,” analysts at Bernstein said.
FILE PHOTO: An Air Europa-branded Boeing 737 MAX aircraft is seen grounded at a storage area in an aerial photo at Boeing Field in Seattle
Air Europa serves 69 destinations, including long-haul routes to the Americas and the Caribbean. It had a fleet of 66 aircraft at the end of 2018.
Air Europa’s Spanish parent company Globalia earlier this year received authorisation from the Brazilian government to explore the possibility of flying domestic routes within Latin America’s largest economy.
It is unclear if that authorisation will remain with Globalia or be transferred to IAG.
Air Europa will initially keep its brand and as it gets integrated into the existing hub at Madrid it will be a standalone operation run by Iberia boss Luis Gallego, IAG said.
It will also withdraw Air Europa from the SkyTeam alliance once the deal is completed. Air Europa has a joint venture with Air France-KLM.
“This is of strategic importance for the Madrid hub, which in recent years has lagged behind other European hubs,” said Gallego, adding that Madrid had the potential to serve as a gateway between Asia and Latin America.
IAG said it expected the Air Europa deal, which will be funded through external debt, to close in the second half of next year and for it to add to its earnings in the first full year after the closure.
($1 = 0.8951 euros) (Reporting by Yadarisa Shabong in Bengaluru; additional reporting by Andres Gonzalez in Madrid and Marcelo Rochabrun in Sao Paulo, editing by Patrick Graham and Jason Neely)
An Air Europa Boeing 737 airplane takes off at the airport in Palma de Mallorca
Exclusive: China’s huge Airbus order padded by old or incomplete deals – source
PARIS
(Reuters) – A landmark order from China for 300 Airbus jets signed
during a state visit last week was bolstered by repeat announcements of
dozens of existing deals and advance approval for deals that have yet to
be struck, two people familiar with the matter said.
Echoing
an umbrella order for 300 Boeing jets awarded during a visit to Beijing
by U.S. President Donald Trump in 2017, the headline figure for the new
“framework order” for European jets was partly driven by political
considerations, the people said.
The
Airbus deal would have been worth some $35 billion at list prices but
the amount of new business is lower, they added. Duplicate announcements
included a deal for 10 A350 aircraft to an unnamed buyer, which
represents a repeat announcement of an order for 10 jets by Sichuan
Airlines at an air show last year.
The
disclosure takes some of the shine off an announcement widely regarded
as the economic highlight of a trip to Europe by Chinese President Xi
Jinping. Nonetheless the deal marked a return to the aircraft market by
China’s state buying agency after a pause of over a year during global
trade tensions.
The
overall figure of 300 was introduced late in the process and after Xi’s
visit was underway, although plane orders typically take months to
negotiate, one of the people said.
Airbus declined to comment on detailed orders but left open the possibility that the large total contained gaps.
The
agreement “creates the approval framework for aircraft ordered by
Chinese airlines, be it existing orders or future orders,” a spokesman
said.
TRADE TIES
Airbus
shares fell 0.7 percent on Tuesday, extending earlier losses after
Reuters reported gaps in the China deal. Airbus’ stock had risen almost
two percent after China’s mega-order, signed in Paris on March 25 in
front of Xi and French President Emmanuel Macron.
Industry
sources say major planemakers play by similar rules when selling to
China, where they face a two-tier system of negotiations with airlines
within a framework of state-backed umbrella deals that may be influenced
by geopolitics.
But
the headline figures for new orders during high-profile diplomatic
visits, which for several years hovered around 150 aircraft for both
Airbus and Boeing, have increased as trade ties between Washington and
China go through highs and lows.
In
November 2017, months before a trade war erupted with the imposition of
tariffs, China announced an order for 300 Boeing jets during a visit to
Beijing by U.S. President Donald Trump.
Analysts
expressed doubts at the time over how much of that was new business,
and said part of the announcement represented renewed government support
for deals already on Boeing’s books.
“The most recent Airbus and Boeing deals followed a similar pattern,” said a China aircraft industry specialist.
Boeing
is now seen as next in line to secure a 200-300-plane order as part of a
possible economic truce being negotiated to end the trade war, but the
recent grounding of one of its jets has cast uncertainty over the timing
of the deal.
Boeing
and Airbus compete fiercely to serve the needs of the world’s
fastest-growing airplane market, while bracing for future competition
from China’s own aerospace industry.
Analysts
say Beijing tends over time to balance U.S. and European purchases,
though recent years have seen the rise of a growing number of
independent Chinese leasing companies and an increase in autonomous
decision-making by several airlines.
(Reporting by Tim Hepher, Additional reporting by Marine Pennetier; Editing by Sudip Kar-Gupta and Richard Lough)
