Intercultural Business News

Japan Airlines (JAL), which may have only enough cash to fund ten more days of operation, could be allowed to go bankrupt if a rescue package does not emerge quickly, the Government hinted yesterday.

The scramble to secure a viable future for JAL is primed to trigger turmoil throughout the global airline industry as rival alliances lunge for its extensive collection of international routes. For carriers in the United States, JAL’s crisis represents a rare opportunity to extend their foothold in the Asian market.

An American Buyout Poses Threat To One World

Two cash-injection offers, each worth more than $1 billion (£596 million), are now on the table for JAL as American Airlines and Delta Airlines vie to buy the critical partnership. If Delta could lure JAL to the SkyTeam alliance, analysts said that the move would deal a heavy blow to British Airways and other members of the OneWorld grouping.

Despite the offers, however, the market remained focused on the risk of bankruptcy. Yesterday’s surprise change of position by the Japanese Transport Minister could herald something most Japanese thought they would never live to witness: the Government allowing a national flag carrier to fail, exactly 22 years since it was privatised amid a great fanfare.

Read More>Times Online

Toyota, the world’s biggest carmaker, has unexpectedly clawed its way back to profit after a summer of scrappage incentive schemes in the US and Europe and a round of ferocious cost cutting. But the company was swift to quash any premature optimism over the state of the American car market, where it said conditions were still “very severe” and the company is battling to limit the damage of a 3 million-vehicle recall.

The company is also mulling over plans to significantly bolster its research and development presence in China – a market that it has failed to exploit with anything like the efficiency it has penetrated Europe and the US. The local R&D base would supposedly allow the Japanese company to better tailor its vehicles to the local market.

Toyota Boosted By Scrappage Scheme

Toyota’s return to profit followed the announcement on Wednesday that it would leave Formula One racing before the 2010 season begins – a move that may save the company about $300 million (£181 million) a year, but which will cause an estimated $200 million of international brand exposure to vanish overnight. The company’s tearful public withdrawal from the sport, said analysts, portends further aggressive cost-cutting.

The glimpse of Y21.8 billion (£146 million) of black ink at the end of the July to August quarter was a welcome surprise for investors, but is unlikely to prevent the carmaker from logging its first full year of losses since Toyota switched from making sewing looms to cars 60 years ago.

Read More>Times Online

 Konsortium Jakob AB, the Swedish investor that wants to buy Volvo Cars from Ford Motor Co., aims to make a bid by end of this week, the head of the group said.

“We’re in serious discussions with our investors about making an offer,” Jakob Chief Executive Officer Peder Fast said in a phone interview today from Gothenburg, Sweden, where Volvo is based. Fast, a Volvo engineer, declined to identify the partners or say how much the group is prepared to offer.

Rivals bidding for Volvo

Ford said yesterday it has narrowed talks on the sale of Volvo to one bidder, China’s Zhejiang Geely Holding Group Co. Ford hasn’t made a final decision and has “no specific timeline” to conclude the discussions, the Dearborn, Michigan- based automaker said.

Geely is prepared to pay about $2 billion for Volvo, less than a third of Ford’s purchase price a decade ago, people familiar with the talks have said.

“My understanding is this isn’t just about the amount,” Fast said, adding that his group has an “open dialogue” with Ford. “There are many factors to consider, such as long-term industrial cooperation and intangible rights.”
Read More>Bloomberg

Britain has fallen outside of the top ten in a world prosperity index but managed to come second for entrepreneurship and innovation.

 
The UK came 12th in the Legatum Prosperity Index, which ranks countries based on a combination of economic factors and happiness and quality of life.
Britain managed a respectable but unexciting mid-table finish in a Premier League of the top 20 most prosperous nations, with the top spots dominated by Scandinavian countries.

Finland (1), Sweden (3), Denmark (4) and Norway (5) made up the top five, along with Switzerland (2).

The UK was pushed out of the top ten by New Zealand and Ireland, but came above Germany and France.

Hong Kong (18), Spain (19) and Slovenia (20) found themselves occupying the relegation spots in the prosperity top 20.

Read More>This Is Money

Remember when hundreds of thousands of Wispa fans petitioned Cadbury to bring back the iconic chocolate bar? Social networks were inundated with comments and the chocolate company re-released the candy to record sales. Now, Polaroid is getting a taste of consumer power after announcing plans to discontinue the instant film camera.

The Cult Polaroid Camera Will Live On

The last batch of Polaroid film passed its “use by” date on the 9 October this year. Polaroid stopped producing film for the iconic cameras after its collapse two years ago. The volatile chemicals in Polaroid film give it relatively short shelf-life and fans of the vintage instant prints were in uproar all over the world over the discontinuation.

As film stocks ran increasingly short, gadget fans have been bombarding the firm with enquiries. A lucrative market for vintage versions of the camera, and lots of film, developed on auction site eBay.

In response to the furious demand, two companies have stepped forward to champion the cult brand. The instant cameras will be now made in China by Summit Global.

Read More>Real Business