Intercultural Business News

Volkswagen is poised to buy a large stake in Suzuki, the Japanese carmaker whose mini-cars dominate several emerging economies and comprise more than half the vehicles on the road in India.

People familiar with the talks, which may lead to the German carmaker sinking more than 300 billion yen (£2 billion) into Suzuki, expect an announcement on the capital tie-up before the end of the month.

Volkswagen may push the alliance further if it seeks to buy a controlling stake in the Japanese company next year.

Will The Partnership Lead To A TAkeover By VW?

The move would be Volkswagen’s first big investment in a Japanese rival and has echoes of a deal being negotiated between Peugeot Citroën, of France, and Mitsubishi Motors, the struggling Japanese carmaker.
 
The move is understood to be entirely non-hostile, contrary to recent comments by Osamu Suzuki, the 79-year-old patriarch of Suzuki, who denied any talk of new alliances with overseas groups.

Analysts have been speculating for some months that Suzuki represented one of the most attractive automotive assets in Asia for a potential buyer.

Read More>Times Online

Strictly Come Dancing judge Alesha Dixon is set to take up a seat in the boardroom after landing a lucrative deal as brand ambassador for gym chain LA Fitness

The R&B singer could pocket a seven-figure salary from the deal – but only if the firm reaches tough targets in a multi-million pound re-launch, as her pay is performance-related.

Dixon, who originally planned to become a PE teacher, has vowed to bring practical ideas for fitness classes as well as attending marketing meetings.

LA Fitness Hope To Gain More Members Through Links With Alesha Dixon

“I want a hands-on approach, not just in the business aspect but also the creative aspect,” she told Sky News.

“I’m a shareholder now in the LA Fitness brand. It gives us both an incentive to move forward. I’m tied to this brand for four years and I want to give as much input as I can.”

The company’s chief executive Martin Long confirmed that his newest employee would play a key part in helping the chain widen its range of gym-goers.

Read More>Sky News

Chinese carmaker Geely, picked as the preferred bidder for Ford Motor’s Volvo unit, is seeking at least $1 billion in loans from Chinese banks to back its $1.8 billion bid.
Three major Chinese banks planned to jointly extend loans to Zhejiang Geely Holding Group, including Bank of China, China Construction Bank and Export-Import Bank of China had.

Bank of China is China’s top foreign exchange lender. China Construction Bank is the country’s No 1 property lender. Export-Import Bank of China is a policy lender wholly-owned by the Chinese government and directly led by the State Council.

Will This Be The New Logo For Volvo?

“Money is not a problem for Geely,” said an unidentified source. “They definitely have strong support from Chinese banks and there are a number of private equity funds queuing up to invest in Geely.”

The three Chinese banks mentioned above refused to comment on specific loans to clients.

Hangzhou-headquartered Geely, which means “lucky” in Chinese, is in need of modern and innovative technologies, which may be met by the Swedish brand, to upgrade its car lineup and tap the auto market.

Last month, Volvo’s union leaders held their first talks with Geely but were still waiting to see Geely’s financing plans for the loss-making Swedish carmaker.

Geely reached an agreement last week with Ford on intellectual property right (IPR) issues in its bid for Volvo, clearing a major barrier for the deal.

Read More>China Daily

Emirates has offered flights from Germany to South Africa and Singapore for less than competing German airlines. Germany has demanded they increase their fares, which some say gives Lufthansa an advantage.

A branch of the German Ministry of Transport, Building and Urban Development has forced Dubai-based airline Emirates to raise its ticket prices on flights from Frankfurt to Johannesburg, and from Hamburg and Berlin to Singapore.

Other airlines from outside the European Union are affected by the action, but ministry spokesman Ingo Strater did not say which ones. Emirates has complained about the action and claims to have brought its case to the European Commission in Brussels.

Will Lufthansa Benefit From Forced Price Hike?

German air traffic law does not allow airlines based outside the EU to offer flights destined for non-EU countries at lower prices than their European competitors. Neither does European law. The action was a result of random spot checking of prices, according to Strater.

“EU airspace is liberalized, but that doesn’t apply to non-EU airlines,” he said.

One function of the Ministry of Transport, Building and Urban Development is to ensure there are no “market disturbances” or “lasting impairments” to the interests of public transportation.

Read More>DW-World

The future of Saab was in doubt last night after General Motors (GM), its American parent, said that a deal to sell the troubled Swedish carmaker had fallen through.

GM confirmed that the sale of Saab to Koenigsegg, a Swedish manufacturer of sports cars, had been terminated at Koenigsegg’s request.

The failure of the talks raises the possibility that GM may decide to scrap Saab, as it did last month when it said that it would close its Saturn brand after failing to find a buyer.

Is This Logo Soon To Dissapear Form The Streets?

Saab, one of Sweden’s best-known brands, employs 3,400 people in the country. About 3,000 people are employed at Saab’s 87 UK dealerships and 100 at its British headquarters.

 
Without the Saab sale, analysts question GM’s ability to restructure its Opel and Vauxhall operations in Europe. GM wants to raise €3.3 billion (£2.9 billion) from European governments to help to save Opel and Vauxhall after reversing a decision to sell them to Magna, a Canadian car parts manufacturer, and Sberbank, its Russian partner.

Read More>Times Online