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Daimler to Ax at Least 10,000 Jobs in Latest Car Industry Cuts

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

China’s BAIC Willing to Increase Daimler Holding after 5% Stake Buy

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

Legacy of a Delta DC-7B Culminates in Atlanta Return

Chicago Midway Airport – Delta-C&S – Douglas DC-7 (1954)

Standing idle in the Arizona desert, a beloved historic airplane was prepped for its ultimate journey – one final flight back to where it all began. The recently discovered Ship 717, the last remaining Douglas DC-7B – last flown by Delta more than 50 years ago – drew the eye of the Delta Flight Museum as staffers worked with the plane’s owner to return the plane to its Atlanta roots.

During their heyday, Delta’s fleet of 10 DC-7Bs brought luxury to the skies, even including a lounge in the rear of the cabin. With more power and range than its DC-7 counterpart, the DC-7B was outfitted with four Wright Duplex Cyclone R-3350 engines, developed shortly before World War II before being improved and widely adopted in commercial flying. In 1968, as the aviation industry increasingly turned to newer jet engines as the preferred airplane power source, Delta said farewell to our last Douglas DC-7 type aircraft and piston-engine propeller planes – including the DC-6 and Convair 440 series.

Still in prime flying shape after its Delta career, Ship 717 finished its flying career helping to fight fires on the West Coast before enjoying a sunny desert retirement in 2008. When the Delta Flight Museum became aware of the classic plane several years ago, the museum jumped at the opportunity to make the purchase.

In quiet Coolidge, Ariz., where summer temperatures near 110 degrees, mechanics spent days and nights making repairs, running tests, making more repairs, replacing multiple engines and testing all four engines again – all with the goal of making this DC-7B ready to take to the skies for the first time in 11 years. The trip to Hartsfield-Jackson Atlanta International Airport, which included an overnight stop in Midland, Texas, was a flown at 9,500 feet in the now-depressurized aircraft for a combined 6.5 hours in the air. 

“Saying goodbye to this beautiful airplane is truly a bittersweet moment for me,” said Woody Grantham, the longtime owner of this DC-7B and the founder of International Air Response. “Even as we fly on some of the latest and greatest new airplanes of today, I think it’s so important that we never lose our touch with history, and I can’t express how happy it makes me to see the DC-7B going home to be celebrated and immortalized at the Delta Flight Museum.”

Touching down in Atlanta at shortly after 5 p.m. EST Sunday and soon to be heading to Delta’s TechOps facility, the final chapter of this DC-7B’s story has yet to be written.

Record U.S. Tariff Award Over Airbus Aid Could Fuel Trade Tensions

Record U.S. tariff award over Airbus aid could fuel trade tensions
Logo of Airbus is pictured at the aircraft builder’s headquarters of Airbus in Colomiers near Toulouse

BRUSSELS/PARIS (Reuters) – Transatlantic trade ties face renewed disruption this week when global arbiters are expected to grant the United States a record award allowing it to hit European imports with billions of dollars of tariffs in a long-running aircraft subsidy dispute.

The World Trade Organization (WTO) has found that both European planemaker Airbus <EADSY> and its U.S. rival Boeing <BA> received billions of dollars of illegal subsidies in a pair of cases that have run for 15 years.

Both sides have threatened tariffs after the Geneva body found neither adhered fully to its findings. However, the United States has a head start, with the European Union having to wait until early in 2020 to hear what level of retaliation it can exact over Boeing.

The WTO is expected this week to reveal the amount of EU goods the United States can target. People familiar with the case say the three-person tribunal is expected to award it around $7.5 billion, a record for the 24-year-old watchdog.

Such retaliation rights are rarely granted by the WTO – most parties reach settlements – and in many cases complainants do not exercise their rights. The United States though has indicated it will target EU goods to the fullest extent.

It has already published a $25 billion list from which it will pick items to target from aircraft and aerospace parts to wine, cheese and luxury goods.

The WTO award in the world’s largest corporate trade dispute could fuel already strained trade tensions, diplomats say.

EU manufacturers are already facing U.S. tariffs on steel and aluminum and a threat from U.S. President Donald Trump to penalize EU cars and car parts. The EU has in turn retaliated.

Trade talks between the two, designed to ease tensions and ward off the threat of a tit-for-tat tariff war, have not gone well. The two sides have made some progress on regulatory cooperation, but a proposed deal to reduce duties is stuck, with Washington saying agriculture should be included and Brussels insisting it cannot.

The Trump administration has concluded that tariffs were effective in bringing China to the negotiating table over trade, and in convincing Japan to open its agricultural market to U.S. products. Washington is unlikely to skip the opportunity to implement tariffs in the case over aircraft subsidies, according to current and former U.S. officials.

Airbus has said this would lead to a ‘lose-lose’ trade war.

Some U.S. airlines have urged the administration not to go ahead with the tariffs, saying they could lead to layoffs.

NO SETTLEMENT IN SIGHT

The parties could still theoretically resolve the issue and stave off sanctions, but both sides accuse the other of failing to respond to invitations to reach a negotiated settlement.

U.S. officials say the decision about next steps will be up to U.S. President Trump.

The EU cannot retaliate immediately to any tariffs as it did following the U.S. imposition of metal tariffs in 2018.

It can either wait until a pronouncement in the parallel Boeing case or possibly revive an existing right to hit $4 billion of U.S. imports in a WTO dispute over U.S. tax breaks for exports, even though the two sides settled in 2006. Such a move would likely be strongly contested by Washington.

EU trade chief Cecilia Malmstrom has urged Washington to hold off sanctions and seek an overall deal on aircraft support, but Washington has shown no sign it wants to talk.

A U.S. government official said Washington has been willing since the very beginning to negotiate a solution, but that the EU gave more support to Airbus rather than fixing the problem.

EU-U.S. trade relations are likely to be a major focus in Brussels during a parliamentary hearing of the next trade commissioner, Irishman Phil Hogan, on Monday, and of national trade ministers meeting on Tuesday.

(Additional reporting by Andrea Shalal in Washington, reporting by Philip Blenkinsop; Editing by Elaine Hardcastle)

Record U.S. tariff award over Airbus aid could fuel trade tensions
FILE PHOTO: Boeing Co’s logo is seen above the front doors of its largest jetliner factory in Everett

First Leonardo AW109 Trekker VIP for Europe Debuts at Monaco Yacht Show

  • The first VIP AW109 Trekker for the European market is destined for the United Kingdom where Leonardo has a fleet of almost 100 VIP helicopters
  • Leonardo has a global fleet of over 830 VIP helicopters performing private, charter, scheduled, corporate transport, air-taxi, tourism and VVIP transport 
  • With skids and high levels of customization, the AW109 Trekker is slated to increase Leonardo’s impressive VIP market share (44% in twin engines) 

The first Leonardo AW109 VIP Trekker helicopter for a European customer debuts today at the Monaco Yacht Show – Leonardo stand QA13 / Quai Antoine 1er. The Monaco Yacht Show (25 to 28 September) is one of the most important international luxury yacht showcases. After the show, the VIP Trekker will fly to the United Kingdom for delivery thanks to Sloane Helicopters, Leonardo’s distributor for over twenty years in the United Kingdom and Ireland. The privately-owned aircraft will be operated by Apollo Air Services, available for VIP charter market. 

The AW109 Trekker is the newest model within Leonardo’s light twin-engine helicopter range. The Trekker joins a fleet of Leonardo VIP helicopters that lead the UK and Irish market: almost 100 aircraft with nearly 90% represented by the AW109 series (Power, Grand and GrandNew). This market is second only to Brazil where about 130 Leonardo VIP helicopters fly amongst 400 San Paolo helipads. 

The helicopter maker and the distinguished Italian Style of its VIP helicopter design are embraced around the world, boasting a 44% global share in the twin-engine VIP helicopter market.  The Company’s fleet of 2,300 civil helicopters are used for law enforcement, offshore transport, utilities, search and rescue and VIP / corporate transport. More than 830 aircraft carry out a range pf passenger transport missions including private, charter, scheduled flights, corporate, air-taxi, tourism, VVIP. 

Leonardo’s VIP helicopter models all share a strong commitment to high performance, versatility, safety, reliability, support and training services, design and a high level of customization. The Company features the largest range of executive, corporate and government transport helicopters including the AW119Kx single engine 1.8 tonne, the AW109 series, the AW169, AW139, AW189 and the three-engine 16 tonne.   

With the AW109 Trekker Leonardo is destined to increase its notable market share, thanks to features that combine the qualities of the AW109 Grand—long recognized by operators—including its spacious cabin, state-of-the-art Genesys Aerosystems avionics and skids, particularly suitable for landing on yachts. The combination is unmatched in terms of cost/effectiveness, technology and performance. 

Sloane Helicopters will be maintaining two AW109 Trekkers in UK. Building on the qualities that have made the AW109 series the benchmark helicopters in its category, Sloane will be performing demonstration flights with the new Leonardo light twin inviting operators to learn more about its unique characteristics.   

NOTE TO EDITORS ON THE AW109 TREKKER VIP

The AW109 Trekker combines excellent performance, the latest technology and high safety standards to provide customers an ideal combination of comfort and capabilities. The finest materials and the highest levels of craftsmanship give the helicopter a unique style and ensure passengers a pleasant journey.

The AW109 Trekker is equipped with a latest generation Genesys Aerosystems glass cockpit that can be configured according to customer needs: one or two pilots, VFR or IFR.

The large and bright cabin can be configured in a variety of layouts and boasts an effective soundproofing system to offer passengers an extremely pleasant flight. Large sliding doors on both sides ensure easy entry and exit, while the luggage compartment offers high load capacity.

It can carry 6/7 passengers and has a maximum take-off weight of 3.175 kg. Over 60 AW109 Trekkers have already been sold to customers around the world to date for multiple missions such as VIP transport, offshore, utilities, EMS / SAR, law enforcement.

Lexus Premieres New Luxury Yacht

  • New embodiment of Lexus’ commitment to deliver innovative and amazing experiences
  • Expressing the Lexus design language a new in the form of a 65‑foot yacht
  • Exceptional performance and quietness befitting a maritime flagship
  • An extraordinary user experience created by advanced technology
  • High-quality craftsmanship and Toyota Production System built-in quality

Boca Raton, Fla. (September 19, 2019)— In its continuing challenge to deliver innovative and amazing experiences to its customers, Lexus held the world premiere of its first luxury yacht, the Lexus LY 650, today in Boca Raton.

The LY 650 is a new embodiment of Lexus’ challenge to go beyond the automobile to deliver innovative and amazing experiences. Based on the Lexus Sport Yacht Concept first shown in January 2017, the LY 650 features unique styling and superb cruising performance. Lexus – which aspires to be a true luxury lifestyle brand – has fused advanced technology and craftsmanship to provide an irreplaceable experience that stimulates the senses and exceeds owner expectations, even at sea. This LY 650 flagship yacht is the new embodiment of the Lexus “CRAFTED” philosophy, to which exquisite attention to detail and anticipatory hospitality are applied in every possible aspect.

The shape of the hull, the abundant volume of the stern, and other elements, in addition to beautiful curved lines, give the LY 650 unprecedented and distinctive exterior styling. Collaboration with Italian yacht design studio Nuvolari Lenard*1 has resulted in an advanced design and a comfortable interior living space that exemplifies high quality in every detail. Furthermore, in pursuit of cruising that achieves the exhilarating performance of a Lexus, the yacht rides on a light and highly rigid composite hull that combines CFRP (carbon fiber-reinforced plastic) and GFRP (glass fiber-reinforced plastic), and was jointly developed with Marquis Yachts LLC*2. Additionally, the LY 650 is equipped with LY-Link, an advanced connectivity technology for boating that shares timely information and provides control of various yacht functions.

The LY 650 is built in collaboration with the craftspeople of Marquis Yachts in Pulaski, Wisconsin, USA. With the start of LY 650 manufacturing, Marquis Yachts has applied the famous Toyota Production System in its production processes to improve production efficiencies and quality. The new yacht will appear at the Fort Lauderdale International Boat Show in Florida Oct. 30 – Nov. 3, 2019.

President Akio Toyoda commented: “The LY 650 symbolizes the challenge taken by Lexus, which aspires to be a true luxury lifestyle brand, to venture beyond the automobile. A collaborative team between Toyota and Marquis Yachts introduced the Toyota Production System to the boat manufacturing facility to improve productivity and quality. This allowed the Lexus “CRAFTED” philosophy of anticipatory hospitality and meticulous attention to detail to become a reality in the form of a luxury yacht. I am truly looking forward to seeing the advanced, high quality LY650 display its beauty on the oceans across the globe. As a mobility company, we are pursuing new possibilities for mobility even on the sea.”

Click the link for the full story! https://pressroom.lexus.com/lexus-premieres-new-luxury-yacht-new-embodiment-of-lexus-commitment-to-deliver-innovative-and-amazing-experiences/

United Airlines to Present at Morgan Stanley 7th Annual Laguna Conference

CHICAGO, Sept. 6, 2019 /PRNewswire/ — United Airlines will present at the Morgan Stanley 7th Annual Laguna Conference on Thursday, Sept. 12. United Airlines’ President Scott Kirby will present at the conference beginning at 12:15 p.m. PT / 3:15 p.m. ET.

The live webcast will be available on the investor relations section of United’s website at ir.united.com. The company will archive the audio webcast on the website within 24 hours of the presentation, and the webcast will be available for a limited time.

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers’ best interests at the heart of its service. In addition to today’s announcement, United recently announced that luxury skincare line Sunday Riley will make products exclusively for United customers to experience in amenity kits, released a re-imagined version of the most downloaded app in the airline industry, introduced ConnectionSaver, a new tool dedicated to improving the experience for customers connecting from one United flight to the next and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats.

United Airlines Announces MileagePlus Miles Never Expire

CHICAGO, Aug. 28, 2019 /PRNewswire/ — United Airlines announced that effective immediately, MileagePlus award miles never expire, giving members a lifetime to use miles on flights, experiences, hotels and more.

“We want to demonstrate to our members that we are committing to them for the long-haul and giving customers a lifetime to use miles is an exceptionally meaningful benefit,” said Luc Bondar, vice president of loyalty and president of MileagePlus at United. “Our MileagePlus program provides customers more ways to earn and use miles than any other U.S. airline. More customers used miles to book award trips in 2018 than in any year before, and we expect with today’s announcement that even more will use miles to travel the world in the years to come.”

United continues to enhance its award-winning MileagePlus program, making it more beneficial for customers. Highlights include:

  • Recently announced partnership with CLEAR that includes free or discounted CLEAR membership pricing for U.S.-based MileagePlus members. 
  • Award travel to more destinations than any other U.S. airline with service to more than 1,300 destinations through United and Star Alliance partners, and ability to book award travel on United and all Star Alliance partners through the United mobile app. 
  • Most low-priced economy award availability of any global U.S. airline. 
  • Everyday opportunities to use miles starting as low as 1,000 miles for eGift cards when purchasing through MileagePlusX.

Every customer. Every flight. Every day.

In 2019, United is focusing more than ever on its commitment to its customers, looking at every aspect of its business to ensure that the carrier keeps customers’ best interests at the heart of its service. In addition to today’s announcement, United recently announced that customers on all domestic flights can now choose from three complimentary inflight snack items, announced that luxury skincare line Sunday Riley will make products exclusively for United customers to experience in amenity kits, released a re-imagined version of the most downloaded app in the airline industry, introduced ConnectionSaver, a new tool dedicated to improving the experience for customers connecting from one United flight to the next and made DIRECTV free for every passenger on 211 aircraft, offering more than 100 channels on seat back monitors on more than 30,000 seats.

New W Muscat Hotel Opens In Oman

Lavish Playground Set to Shake up the Coastal Haven with Bold Design, Eclectic Programming and Oman’s First Siddharta Lounge By Buddha-Bar

MUSCAT, Oman, Aug. 26, 2019 /PRNewswire/ — Make a splash! W Hotels Worldwide, part of Marriott International Inc., today announced the opening of W Muscat, the brand’s newest beachfront W Escape and the second to open in the Middle East this year. Set against the stunning backdrop of the rugged Al Hajar Mountains, which form a stark contrast to the historic capital city’s lively waterfront, W Muscat sits at the intersection of the bustling Shatti Al Qurum area. The new hotel opens in an ideal locale to bring the W brand’s signature take on playful luxury to the serene waterfront of Oman.

Fabulous Room at W Muscat
Fabulous Room at the W Muscat

“Muscat is a fascinating and exciting city. Its cultural DNA honors millennia of tradition while looking to what’s new and next – an ideal match for the W brand,” said Anthony Ingham, Global Brand Leader, W Hotels Worldwide. “The arrival of W in Muscat marks a new chapter for both the brand and this buzzing metropolis. The hotel reinterprets Omani design and cultural traditions to create a modern, energetic and stylish Escape unlike anything the sultanate has seen before.”

Dive In
The architectural narrative of W Muscat immerses guests in the concept of exploration and the illustrious storytelling tradition of the nomadic Bedouin traveler. Its striking design is inspired by the diverse and vibrant natural locale – from the rugged mountain range to the vast Omani desert, the sparkling bay to the azure waters of the Arabian Sea. Colorful hints of Muscat’s vibrant culture are interspersed throughout the spaces to evoke the mystery and adventure of the city’s rich heritage and storied past. W Muscat is a bold remix of traditional charm, natural beauty and the disruptive W DNA.

Welcoming guests upon arrival is a striking, nine-ton frankincense tree sculpture designed by renowned artist Pongsatat Uaiklang that pays tribute to Omani culture. Standing at an impressive 10 meters tall, the piece is made of solid stainless steel, welded from 28 winding pieces. In traditional Omani culture, frankincense was used to bless and welcome weary travelers after their long journeys. In that same tradition, guests are then ushered into the inviting Living Room (W’s signature take on the lobby) where they can relax and unwind in an Arabic Majlis, beneath an oversized installation of the Omani Kummas, chic headgears that are unmistakable marks of the Omani attire. Whether looking for a re-energizing iced tea or a cocktail, The Living Room is the perfect venue to see and be seen.

Hit Escape
All of the 279 guestrooms and suites at W Muscat provide uninterrupted views of the glistening blue water, with their design drawing inspiration from the ocean as well as the asymmetrical lines of the nearby mountains, caves and desert. These are contrasted with art deco detailing, reminiscent of traditional Omani charm. Asymmetrical corridors across the floors depict an artistic theme of ‘every girl has a story’ through locally commissioned holographic artworks depicting a female perspective of power, love, peace and beauty. Designed for an extra spacious and edgy stay is the EWOW suite (the brand’s take on the traditional Presidential Suite) which features subtle Arabic characteristics with a distinctive W edge. The corner Majlis seating showcases a Zanzibar-inspired print, a nod to the Omani Kumma or headgear, set against an inviting coffee table in celebration of Arabic coffee or Qahwa. The ceiling features tilted white paneling, evoking the intimacy of relaxing inside a tent. A saddle-like leather chair, bold mustard yellow stool, and faux fur wall are inspired by horse or camelback travel. Stacked luggage trunks comprise the MIXBAR (the W spin on the minibar) while a trunk closet lined with exotic silk links back to the narrative of the nomad.

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