FRANKFURT, Sept 7 (Reuters) – Volkswagen’s Chief Executive Herbert Diess on Monday sought to quell speculation that the world’s largest carmaker, which is on a mass production push for electric cars, has plans to develop deeper ties with start-up rival Tesla.
Diess met with Tesla’s Chief Executive Elon Musk in Braunschweig, Germany, last week, and during his visit VW let Musk drive its new ID.3 electric car.
“Just to be clear: We just drove the ID.3 and had a chat – there is no deal/cooperation in the making,” Diess said in a post on Linkedin which included a video of the two executives driving the vehicle on an airfield.
“Thanks for the visit, Elon! Hope you like the video. It was great driving the ID.3 with you! You were just quite critical with the available torque at higher speed. I told you: “Yes, we are on the runway – but no need for take off – its not a sports car.”
WASHINGTON (Reuters) – The U.S. government on Wednesday said it would maintain 15% tariffs on Airbus <AIR.PA> aircraft and 25% tariffs on other European goods, despite moves by the European Union to resolve a 16-year-old dispute over aircraft subsidies.
U.S. Trade Representative Robert Lighthizer (USTR) said the EU had not taken actions necessary to come into compliance with World Trade Organization decisions, and Washington would initiate a new process to try to reach a long-term solution.
USTR said it would modify its list of $7.5 billion of affected European products to remove certain goods from Greece and Britain and add an equivalent amount from Germany and France.
It ignored calls from EU officials and U.S. lawmakers to drop tariffs on EU food, wine and spirits, but did not add tariffs to vodka, gin and beer as it had threatened.
Airbus said it “profoundly regrets” the U.S. decision to keep tariffs in place on its aircraft.
Washington’s decision to refrain from increasing the tariff rates would help prevent a further escalation, an EU official said, calling for intensified efforts to resolve trade conflicts between the powerful economic blocs.
EU trade commissioner Phil Hogan would continue his active engagement with Lighthizer to reach a negotiated settlement, the official said, noting that the current economic slowdown underscored the urgency of ending the conflict.
Last month, Airbus said it would increase loan repayments to France and Spain in a “final” bid to reverse U.S. tariffs and jog the United States into settling the long-running fight over billions of dollars of aircraft subsidies.
The United States declared itself in full compliance with WTO findings in May after Washington state abolished aerospace industry tax breaks that largely benefited Boeing.
Trade groups are bracing for an escalation of the row in the autumn when the EU is expected to win WTO approval to hit back with its own tariffs over subsidies for Boeing <BA>.
Airbus said in a statement it “trusts that Europe will respond appropriately to defend its interests and the interests of all the European companies and sectors, including Airbus, targeted by these tariffs.”
Boeing urged the EU and Airbus to launch prompt and “meaningful negotiations with the U.S. to address the full scope of their noncompliance and finally bring this case to an end.”
USTR in October 2019 imposed 25% tariffs on an array of EU food, wine and spirits, including Italian cheese and single-malt Scotch whisky in retaliation for EU subsidies on large aircraft.
It initially imposed 10% tariffs on Airbus aircraft but hiked that to 15% in March.
(Reporting by Andrea Shalal, David Lawder, David Shepardson and Eric M. Johnson; Editing by Chris Reese, Richard Pullin and Tom Brown)
Beginning in 2022, DB will expand its mainline fleet with 30 new high-speed trains. Deutsche Bahn has awarded the billion-euro order to Siemens Mobility. DB called for tenders at the end of 2019 when the federal government announced it would be reducing the value-added tax on mainline rail tickets as of the beginning of 2020.
The trains will initially run on routes between the state of North Rhine-Westphalia and Munich via the high-speed Cologne-Rhine-Main line. The new trains will increase DB’s daily passenger capacity on these mainline routes by 13,000 seats.
Dr. Richard Lutz, CEO of Deutsche Bahn AG said: “Today marks a big step for a strong and environmentally friendly rail system: DB is investing in new trains at a record level. Our fleet will be getting state-of-the-art additions with the new ICE trains, and our passengers will benefit from more seats, greater comfort and higher speeds by the end of 2022. The entire DB fleet will grow by 20 percent over the coming years. Even though demand has sharply declined due to the corona pandemic, everything speaks in favor of climate-friendly rail transport for the longer term. That’s why we’re committed to growth!”
Andreas Scheuer, Germany’s Federal Minister for Transportation and Digital Infrastructure, commented: “The new, ultra-modern ICE trains make rail travel even more attractive – also because high-performance high-speed trains, along with modern rail infrastructure, are a key prerequisite for increasing the frequency of nation-wide rail service. With this move, rail is increasingly becoming a climate-friendly alternative for long-distance travel. The order is also a strong economic stimulus and therefore a positive signal for many employees in the rail industry and their families. With an order of this size, we are securing thousands of jobs and strengthening innovations made in Germany.”
“We are helping Deutsche Bahn implement its master plan for transforming Germany’s transport sector. The goal is to massively reduce CO2 emissions while at the same time attracting more people to public transport,” said Roland Busch, Deputy CEO andMember of the Managing Board of Siemens AG. “Siemens and DB have long enjoyed a highly successful partnership. The most important requirement for the ICE order was to get the new trains on the rails very quickly. We can do exactly that by relying on our proven Velaro platform.”
By 2026, 421 ICE trains with 220,000 seats will be operating on Germany’s rail system. In addition to the 30 new ICE trains just ordered, there is an option for an additional 60 trains.
The new ICE trains will be manufactured at Siemens locations in North Rhine- Westphalia, Bavaria and Austria. Technically, the train is based on the proven platform of the ICE 3. The new trains will have 440 seats and a top speed of 320 km/h. They will offer passengers greater comfort and convenience with features like frequency- transparent windows for stable mobile phone reception and space for transporting bicycles.
Alstom and Bombardier welcome the European Commission’s (EC) decision for conditional clearance of the proposed acquisition of Bombardier Transportation by Alstom.
The Commission’s approval for the transaction is conditional on the proposed engagements that consist of:
A transfer of Bombardier Transportation’s contribution to the V300 ZEFIRO very high-speed train and an offer of IP licence to Hitachi for the train co-developed by Hitachi and Bombardier Transportation for use in future very high-speed tenders in the UK
The divestment of the Alstom Coradia Polyvalent and the Reichshoffen production site in France
The divestment of the Bombardier TALENT 3 platform and dedicated production facilities located within the Hennigsdorf site in Germany
Providing access to certain interfaces and products for some of Bombardier Transportation’s Signalling On-Board Units and Train Control Management Systems (TCMS)
The divestitures will comply with all applicable social processes and consultations with employee representatives’ bodies.
The transaction remains subject to further regulatory approvals in several other jurisdictions and customary closing conditions.
Closing of the acquisition is expected for the first half of 2021.
Alstom is taking a new step forward in the implementation of its AiM (Alstom in Motion) strategic plan in France with the acquisition of Ibre, a company specialised in the development, manufacture and supply of cast iron or steel brake discs for high-speed, intercity, regional and suburban trains, trams and metros. Alstom and Ibre already had a long working relationship on projects for SNCF.
With the acquisition, Alstom will reinforce its internal capabilities regarding railway braking systems, which are essential to the overall dynamic performance of trains.
Ibre employs around 30 people at its Sens site in the region of Bourgogne Franche Comté and had a turnover of approximately €10 million in 2019. It is a company with an international scope, with more than half of its sales in France, of both original equipment and replacements. The rest primarily serves customers in Austria, Australia, Belgium, Scandinavia, England, India and Germany.
“This acquisition represents very promising development potential for Ibre and its employees and is in line with Alstom’s strategy to extend its know-how,” says Jean-Baptiste Eyméoud, Senior Vice President Alstom France.
Railway brake discs are one of the critical components of the braking system. Alstom’s acquisition of Ibre represents a unique opportunity to extend its offer. Ibre products will be offered as original equipment and as part of maintenance contracts. Following completion of the transaction, which took place on 30 June, the company, renamed “Alstom Ibre”, becomes a wholly owned subsidiary of Alstom.
IBRE is an experienced designer and producer and brake discs & levers
Alstom, a global leader in integrated solutions for sustainable mobility, and Snam, one of the world’s leading energy infrastructure companies, have signed a five-year agreement to develop hydrogen trains in Italy.
The agreement, after the conclusion of the first phase dedicated to feasibility studies planned in Autumn, aims to develop, already at the beginning of 2021, railway mobility projects including both hydrogen-powered trains and the related technological infrastructure, as well as management and maintenance services.
As part of the agreement, Alstom will manufacture and maintain newly built or converted hydrogen trains, while Snam will develop the infrastructures for production, transport and refuelling.
This co-operation stems from the joint commitment of the two companies on hydrogen: Alstom has launched the Coradia iLint, the first fuel cell train in the world, which has successfully been in service for one year and half on a regional route in Germany, while Snam has been one of the first companies in the world to experiment a 10% hydrogen injection into the natural gas transportation network.
Deutsche Lufthansa AG has been informed by the Economic Stabilization Fund (WSF) of the Federal Republic of Germany that the WSF has approved the stabilization package for the company. The Executive Board also supports the package.
The package provides for stabilization measures and loans of up to EUR 9 billion.
The WSF will make silent participations of up to 5.7 billion euros in total in the assets of Deutsche Lufthansa AG. Of this amount, approximately EUR 4.7 billion is classified as equity in accordance with the provisions of the German Commercial Code (HGB) and IFRS. In this amount, the silent participation is unlimited in time and can be terminated by the company on a quarterly basis in whole or in part. In accordance with the agreed concept, the remuneration on the silent participations is 4% for the years 2020 and 2021, and rises in the following years to 9.5% in 2027.
Furthermore, the WSF will subscribe to shares by way of a capital increase in order to build up a 20% stake in the share capital of Deutsche Lufthansa AG. The subscription price will be 2.56 Euro per share, so that the cash contribution will amount to about 300 million Euro. The WSF may also increase its stake to 25% plus one share in the event of a takeover of the company.
In addition, in the event of non-payment of remuneration by the Company, a further portion of the silent participation is to be convertible into a further shareholding of 5% of the share capital at the earliest from 2024 and 2026 respectively. The second conversion option, however, only applies to the extent that the WSF has not previously increased its shareholding in connection with the above-mentioned takeover case. Conversion should also be possible for dilution protection. Subject to the full repayment of the silent participations by the company and a minimum sale price of EUR 2.56 per share plus an annual interest of 12%, the WSF undertakes, however, to sell its shareholding in full at the market price by 31 December 2023.
Finally, the stabilization measures are supplemented by a syndicated credit facility of up to EUR 3 billion with the participation of KfW and private banks with a term of three years. This facility is still subject to the approval of relevant bodies.
The expected conditions relate in particular to the waiver of future dividend payments and restrictions on management remuneration. In addition, two seats on the Supervisory Board are to be filled in agreement with the German government, one of which is to become a member of the Audit Committee. Except in the event of a takeover, the WSF undertakes not to exercise its voting rights at the Annual General Meeting in connection with the usual resolutions of ordinary Annual General Meetings.
The stabilization package still requires the final approval of the Management Board and the Supervisory Board of the company. Both bodies will come together shortly to adopt resolutions on the stabilization package. The capital measures are subject to the approval of an extraordinary general meeting.
Finally, the stabilization package is subject to the approval of the European Commission and any competition-related conditions.
LONDON (Reuters) – Irish airline Aer Lingus said it was reviewing its social distancing procedures after a flight on Monday was packed with passengers.
European flights have all but come to a standstill during the coronavirus pandemic with only a few services operating for essential travel such as people going to work or being repatriated, or for cargo.
While there is no visibility on when travel restrictions will ease, airlines are considering how to safely restart services and give passengers confidence to fly.
Aer Lingus, owned by IAG <IAG.L>, said it would consider how it operates after its Belfast to London Heathrow flight on Monday had “unexpectedly high loads” and that due to the level of the demand for the route, it could need to make changes.
“Aer Lingus is reviewing its processes and procedures applicable to the operation of this service,” an Aer Lingus spokeswoman said, adding that safety was its top priority.
Some airlines have discussed leaving middle seats empty on flights to enable social distancing, while other airlines such as Germany’s Lufthansa <LHA.DE> and Hungary’s low cost airline Wizz Air <WIZZ.L> have made it compulsory for passengers to wear face masks on flights.
(Reporting by Sarah Young and Ian Graham; Editing by Kirsten Donovan)
FILE PHOTO: The Aer Lingus EI-DER Airbus A320 makes its final approach for landing at Toulouse-Blagnac airport
Emirates is set to operate limited passenger services to Frankfurt (02, 04, 06, 09, 11, 13 May), London Heathrow (03, 05, 07, 10, 12, 14 May), Manila (3, 6, 8, 10, 13, 15, 16 May), Sao Paulo (3 May), and Shanghai (2 May). The one-way special flights will facilitate travel for residents and visitors wishing to return home.
Those who wish to travel to Shanghai must contact the embassy or consulate of the People’s Republic of China in the UAE. For all other flights, passengers can book directly on emirates.com or via their travel agent.
Only citizens of the destination countries, and those who meet the entry requirements of the destination will be allowed to board. Customers will be required to follow all health and safety measures required by the UAE authorities and the country of destination.
Similar to other repatriation flights that Emirates has operated thus far, for health and safety reasons, the airline will offer a modified inflight service that reduces contact, and the risk of infection. Magazines and print reading material will not be available. Meals on-board will be served in hygienic prepacked meal boxes, offering customers sandwiches, beverages, snacks, and desserts. A selection of hot snacks will also be served on long-haul flights.
Emirates’ Lounge and Chauffeur Drive services will be temporarily unavailable during this period and in-flight Wi-Fi service is available for purchase only. On board Emirates’ flights, seats are pre-allocated where possible with vacant seats placed between individual passengers or family groups in observance of physical distancing protocols. More information is available on emirates.com.
Cabin baggage will not be accepted on these flights. Carry-on items allowed in the cabin will be limited to laptop, handbag, briefcase or baby items. All other items have to be checked in, and Emirates will add the cabin baggage allowance to customers’ check-in baggage allowance.
Passengers are required to apply social distancing guidelines during their journey and wear their own masks when at the airport and on board the aircraft. Travellers should arrive at Dubai International airport Terminal 3 for check-in, three hours before departure. Emirates’ check-in counters will only process passengers holding confirmed bookings to the above destinations.
All Emirates aircraft will go through enhanced cleaning and disinfection processes in Dubai, after each journey.
