north-america

Jeffrey Rubin: Boone Pickens’s Plan Full of Hot Air

August 10, 2010

Boone Pickens ‘s plans to save the United States from its energy dependence on so-called hostile petro-powers is, simply put, full of hot air. The abundance of shale gas in the US will no more free the country’s motorists from dependence on foreign oil than have either the American production of over ten billion gallons of corn-based ethanol or the rollout of GM’s electric-powered Volt . There’s a reason for the fact that, for a given amount of energy, natural gas prices today trade at a fraction of the price of oil. If people could just switch from using one fuel to the other, that price gap would quickly be arbitraged away. But they can’t–at least not where it counts the most. Not that there hasn’t been scope for substitution. Few households in North America still burn oil to heat their homes–most switched to much cheaper domestically produced natural gas after the OPEC oil shocks of the 1970s. Even fewer North Americans rely on burning oil to generate power for their homes. And most petrochemical producers can switch from oil to a natural gas feedstock. But unfortunately, the majority of oil consumed in the United States–and indeed in the rest of the world–is used as a transport fuel. On average it’s about 60 per cent of all the oil consumed, and as much as 90 per cent of each new barrel that comes out of the ground. And that’s exactly where prices for oil and natural gas disconnect. Planes fly on jet fuel made from oil, ships run on bunker fuel made from oil, and, most importantly, motor vehicles run on gasoline or diesel made from oil. And with good reason: oil packs about four times the energy density of natural gas. And it carries about 20 times the energy density of the lithium-ion battery found in an electric car. That’s a key reason why neither electric- nor natural gas-powered cars have made any sizeable inroads into the North American vehicle market. The 110,000 or so natural gas-powered vehicles in the US, most of them urban buses, remain an insignificant fragment of a 250 million-vehicle market. And the story isn’t any different with electric powered cars: GM doesn’t expect to sell more than 10,000 of its heralded Volt next year. Another reason is the absence of a fuel distribution system. Outside of urban centers, there are few gas stations that supply natural gas, which means that, at best, the fuel can only be used for urban commutes. To build a national distribution system for the fuel would require subsidies that far exceed anything already squandered on encouraging home-grown ethanol production. Switching to natural gas is no more attractive an alternative for most American motorists right now than switching to corn-based ethanol or electric power. And until it is, expect natural gas and oil prices to stay disconnected, leaving the American economy as dependent as ever on foreign oil suppliers.

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Toyota Profit Hits $2.2 Billion Despite Recalls

August 4, 2010

TOKYO — Toyota reported a quarterly profit of $2.2 billion, reversing from red ink a year earlier as the world’s top automaker benefited from a global sales recovery that offset lingering doubts about the safety of its cars. The company, which makes the Camry sedan and Prius hybrid, raised its full year earnings forecast Wednesday, and said it now expects to sell 7.38 million vehicles worldwide for the year through March 2011, up from 7.24 million the previous year. Previously it forecast sales of 7.29 million vehicles. The numbers show that Toyota Motor Corp. is on a recovery track from the sales battering it took from the global financial crisis two years ago and the blows to its image from massive recalls that began last October. Toyota acknowledged uncertainties lie ahead, including the surging yen, which erodes the value of overseas earnings, but is expecting sales to expand in Asia, South America, and other emerging markets. Still, Toyota’s car sales remain far lower than the 9 million-plus vehicles it was selling globally while on its way to overtaking General Motors Co. as the world’s No. 1 automaker. At that time, an ambitious Toyota, which had appeared unstoppable as U.S. rivals GM and Chrysler stumbled, had set a goal of reaching global sales of 10 million vehicles within several years. Toyota’s revenue for the April-to-June quarter surged 27 percent to 4.87 trillion yen ($57.3 billion) as car sales jumped in North America, Japan and other parts of Asia including Thailand and Indonesia. The only trouble spot was Europe, where auto sales were lagging partly because of concerns about Greece’s debt crisis, according to Toyota. Its quarterly profit of 190.47 billion yen ($2.2 billion) was achieved despite worries that Toyota’s recalls of popular models would hurt sales. The result was a sharp improvement from a loss of 77.8 billion yen the year before when the global recession crushed car sales. Toyota said cost reductions of 50 billion yen ($588 million) also helped its latest results, offsetting the damage from a stronger yen, estimated at 30 billion yen ($353 million). The car maker raised its profit forecast for the year through March 2011 to 340 billion yen ($4 billion) from 310 billion yen ($3.6 billion), underlining the staying power of the automaker amid fears about quality control. It increased its annual sales revenue forecast to 19.5 trillion yen ($229 billion) from 19.2 trillion yen ($226 billion). Revenue the previous year was 18.95 trillion yen. Toyota had long been lauded for creating a manufacturing system that ensured a consistently high standard of quality. But the automaker has recalled about 10 million vehicles globally since October for various problems including faulty floor mats, sticky gas pedals, braking software glitches and steering malfunctions. Its reputation has also taken a hit from more than 300 lawsuits it faces in the U.S. claiming damages for deaths and injuries suspected of being linked to acceleration problems and from owners claiming the value of their cars has diminished because of alleged defects. North American auto sales have turned around from a 30-year low in 2009, but the recovery could be fragile. Toyota’s U.S. sales in July jumped 20 percent from June because of the generous rebates being offered to appease customers worried about safety recalls. But they were 3.2 percent lower than the same month the previous year, which was before the recall crisis struck. Tsuyoshi Mochimaru, analyst at Mitsubishi UFJ Morgan Stanley Securities Co., said Toyota may lose some market share to rivals because of the recall but many consumers will see them as routine. “For most people, they are just regular recalls,” he said. “Many people will accept them as part of life.” Senior Managing Director Takahiko Ijichi acknowledged it was difficult to assess what effect the recalls had on Toyota’s latest earnings. He said Japanese government-backed incentives for green vehicles like the gasoline-electric Prius hybrid are set to end in September, and that could hurt sales in Japan. He declined to detail plans for North America, including how long rebates will last, merely expressing hopes for more growth. “We will try to regain trust from our customers as quickly as possible and we will continue our effort to improve sales,” said Ijichi. Toyota shares edged down 1.6 percent to 3,090 yen in Tokyo. ___ Associated Press Writer Mari Yamaguchi contributed to this report.

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Video: Fabbri Says U.S. Mulling Over Further Stimulus Programs: Video

July 30, 2010

July 30 (Bloomberg) — Brian Fabbri, chief economist for North America at BNP Paribas, talks with Bloomberg’s Mark Crumpton about U.S. second-quarter gross domestic product, released by the Commerce Department today, and the outlook for the economy. Growth in the U.S. slowed to a 2.4 percent annual rate in the second quarter, less than forecast, reflecting a larger trade deficit and an easing in consumer spending. (Source: Bloomberg)

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EADS North America Names Carlaine Blizzard as Vice President of Homeland Security Programs

July 28, 2010

ARLINGTON, VA–(Marketwire – July 28, 2010) –  Carlaine Blizzard has joined EADS North America as vice president of the company’s Homeland Security line of business. In her new role, Blizzard is responsible for program management, product technologies, and activities related to federal marketing and sales for homeland security programs in the United States.

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Jeffrey Rubin: China’s Energy Consumption a Zero-Sum Game

July 27, 2010

It wasn’t sheer coincidence that last year marked two pivotal events in the world’s vehicle industry. In 2009, China became the largest car market in the world, while in the same year there were four million fewer vehicles on the road in the United States. In a world where the supply of economically viable oil has peaked, or is, at best, growing marginally, driving has suddenly become a zero-sum game. That means that if millions of new drivers are about to get on the road in China, then somehow millions of other drivers will have to get off somewhere else. Last year, that’s exactly what happened in America for the first time since World War II. And unless Boone Pickens is miraculously able to convert the American vehicle stock to natural gas-powered engines, some 40 million other vehicles in the US will similarly be taking the exit lane over the next decade. But more on that later. That’s not news to the auto companies. General Motors is busily expanding its production capacity in China, thanks to bailouts from American and Canadian taxpayers. Nor is it news to Canadian tar patch producers, who are quickly recognizing that China, with one tenth the per-capita oil consumption of the US, will be the real market for the billions of barrels of oil they hope to extract. And belatedly, even the International Energy Agency (IEA), long fixated on shrinking oil demand in its own member OECD countries, has finally recognized what carbon emissions have been saying for the last three years: that China is the world’s largest consumer of energy. And that energy, for the most part, is carbon-based. China may lead the world in energy from renewable sources such as solar and wind, but it’s good ol’ fashioned King Coal that’s powering that country’s industrial revolution, just as it powered the Industrial Revolutions centuries ago in the west. China may still only consume half the oil America does, but it’s long since passed the US when it comes to coal consumption, which provides China with 80 per cent of its power. Unless abated by cuts elsewhere, the planned expansion of coal-fired generating plants in China and India will almost double world coal consumption over the next two decades. As with oil, the more coal China burns, the less coal North America can use. If world carbon emissions are to be capped, or even if global emissions growth is to be slowed, there must be an offsetting decarbonization of economies elsewhere. And that means coal plants must be shut down in places like North America if new plants are built in China. Not only is China the world’s largest consumer of energy, but the more carbon-based fuel it burns to power its economic growth, the more our economies will have to make do with burning less.

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Video: Bloomberg’s Adewuya on Nokia Siemens’s Motorola Unit Buy: Video

July 19, 2010

July 19 (Bloomberg) — Bloomberg’s Iyan Adewuya discusses Nokia Siemens Networks’ agreement to pay $1.2 billion for wireless network assets from Motorola Inc. to expand in North America and Japan. Adewuya also discusses Carlyle Group and TPG Capital’s agreement to buy Australia’s Healthscope Ltd. for A$2 billion ($1.7 billion) and Kinder Morgan Inc.’s possible initial public offering. He talks with Scarlet Fu on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)

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GFI Group Announces Senior Management Changes in Commodities and Energy

July 12, 2010

Richard Giles Appointed Managing Director — Head of Commodities and Energy Brokerage, North America; Michael Cosgrove Continues as Managing Director Overseeing Strategic Initiatives in Commodities and Energy

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Video: BNP Paribas’s Fabbri Forecasts `More Difficult Times’: Video

July 9, 2010

July 9 (Bloomberg) — Brian Fabbri, chief economist for North America at BNP Paribas, talks with Bloomberg’s Julie Hyman and Michael McKee about the outlook for the U.S. economy and age demographics of the nation’s workforce. Fabbri says BNP Paribas forecasts slower U.S. growth and inflation under one percent in the second half of the year. (Source: Bloomberg)

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Jeep to Take Global Lead Role as Chryslers Are Rebadged Lancias in Europe

June 20, 2010

By Jeff Green June 20 (Bloomberg) — Chrysler Group LLC’s Jeep brand will become the subsidiary’s primary global make in the first half of next year as Fiat SpA emphasizes the Lancia nameplate in Europe, a top executive said. Chrysler’s minivan, Sebring and 300 models will be rebadged as Lancias across most of Europe at the end of the first quarter or early in the second, Michael Manley , Chrysler Group’s international chief, said in an interview. Sharing models among the brands is part of a plan outlined by Fiat and Chrysler Chief Executive Officer Sergio Marchionne in November, Manley said. Chrysler aims for Jeep to account for half of Chrysler Group’s international sales, up from closer to a third historically, he said. The goal will be to have two brands — Jeep and one other — from the Chrysler Group in every market, Manley said at an event to introduce the new version of the Jeep Grand Cherokee last week in California. “The brand is global, it’s very well known everywhere around the world,” Manley said. “With our partnership with Fiat we can now focus on Jeep as an international brand.” Fiat , which also owns Maserati and Ferrari, is trying to share engines and other parts among models from Fiat, Chrysler, Dodge, Jeep and Alfa Romeo brands to save $2.9 billion over five years. Fiat controls the U.S. automaker through a 20 percent stake granted as part of last year’s U.S.-backed bankruptcy. U.K. Gets Chryslers In Europe, some Dodge models will also be sold and the Chrysler name will be kept on the minivan in the U.K., Manley said. Most of Lancia’s approximately 125,000 sales annually are in Italy. Chrysler-badged vehicles will continue to be sold in Latin America and Asia, while the North American use of Chrysler won’t change, he said. Marchionne said April 21 that he plans to double revenue from cars and light-commercial vehicles to 51 billion euros ($63 billion) by 2014. Turin, Italy-based Fiat aims to boost deliveries by 73 percent in the period by expanding in Europe and emerging markets, re-entering North America and relaunching the Alfa Romeo and Lancia brands. Fiat has a worldwide sales target of 3.8 million cars and commercial vans in 2014, compared with 2.2 million last year, Marchionne said April 21 in a strategy presentation. Combined with Auburn Hills, Michigan-based Chrysler Group, deliveries would total 6 million cars. To contact the reporter on this story: Jeff Green in Southfield, Michigan, at jgreen16@bloomberg.net .

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Bank of America Debt Sale Shows Contagion Ebbs Credit Markets

June 18, 2010

By Tim Catts June 18 (Bloomberg) — Bank of America Corp. , JPMorgan Chase & Co. and HSBC Holdings Plc raised $7.65 billion in the bond market as investors grow more confident Europe’s debt crisis will be contained, averting another credit freeze for lenders. Bank of America’s $3 billion offering was its first benchmark issue of dollar-denominated 10-year notes in a year, according to data compiled by Bloomberg. New York-based JPMorgan boosted its sale by 25 percent to $1.25 billion as relative yields on U.S. bank debt fell for a fourth day, the longest streak since March, while HSBC raised $3.4 billion in the biggest global issue of undated dollar notes since October 2008. The banks’ offerings come as Spain sold 3.5 billion euros ($4.3 billion) of bonds yesterday and announced a plan today to issue new 10-year notes via banks, easing concern the nation will struggle to finance looming debt maturities. Even as potential regulations loom, U.S. banks are taking advantage of “very attractive financing rates and a receptive marketplace,” said Wells Fargo Funds Management’s James Kochan . “There’s a lot less fear among investors than was true a week ago or a month ago,” said Kochan, who helps oversee $179 billion as chief fixed-income strategist for the firm in Menomonee Falls, Wisconsin. “Things are calming down a bit in world markets.” Deutsche Bank AG , Germany’s biggest bank, issued 1 billion euros of so-called lower Tier 2 bonds that were priced to yield 210 basis points, or 2.1 percentage points, over swaps, according to a banker involved in the deal. Credit Suisse Group AG added 550 million euros to its existing 4.75 percent bonds due August 2019, according to data compiled by Bloomberg. The additional notes yield 180 basis points more than similar- maturity German debt. HSBC Sale The 5.625 percent, 10-year issue from Charlotte, North Carolina-based Bank of America priced to yield 248 basis points more than Treasuries, Bloomberg data show. A benchmark offering is typically at least $500 million. JPMorgan’s 3.4 percent, five-year notes pay a spread of 145 basis points. HSBC, Europe’s largest bank, sold the perpetual securities that are callable after 5.5 years with a coupon of 8 percent today, at the lower end of the marketing range of 8 percent to 8.125 percent, according to a person with knowledge of the deal. The issue was the largest of its type since Credit Suisse sold $3.5 billion of 11 percent notes in October 2008, according to data compiled by Bloomberg. Ally Bank Elsewhere in credit markets, the extra yield investors demand to own corporate bonds instead of government debt fell 1 basis point to 197 basis points, Bank of America Merrill Lynch’s Global Broad Market Corporate Index shows. Yields averaged 4.068 percent. GMAC Inc.’s Ally Bank boosted the size of its offering of bonds backed by auto loans to $1.2 billion from $792.3 million, according to a person familiar with the transaction. The largest top-rated portion, a $448 million slice maturing in about 2.2 years, will yield 25 basis points more than the benchmark swap rate, said the person, who declined to be identified because the terms aren’t public. Benchmark indexes of corporate credit risk in the U.S. and Europe fell. The Markit CDX North America Investment Grade Index Series 14, which investors use to hedge against losses on corporate debt or to speculate on creditworthiness, fell 3.3 basis points to a mid-price of 110.25 basis points as of 12:06 p.m. in New York, the lowest since May 31, according to Markit Group Ltd. In London, the Markit iTraxx Europe Index of 125 companies with investment-grade ratings decreased 4.7 basis points to 117.4, Markit prices show, the lowest since May 18. Bondholder Protection The indexes typically fall as investor confidence improves and rise as it deteriorates. Credit swaps pay the buyer face value if a borrower fails to meet its obligations, less the value of the defaulted debt. A basis point equals $1,000 annually on a contract protecting $10 million of debt. Bank of America and JPMorgan’s offerings led $7.35 billion of U.S. corporate bond issuance, the busiest day since April 21, when $12.3 billion was sold, Bloomberg data show. That tally of straight bond sales doesn’t include HSBC’s perpetual notes issue. The offerings from the two largest U.S. banks by assets and Europe’s No. 1 lender follow a $750 million sale by Radnor, Pennsylvania-based Lincoln National Corp. on June 15 and a $1 billion offering June 16 from Prudential Financial Inc. of Newark, New Jersey. ‘Positive Tone’ “Both JPMorgan and Bank of America are coming on the back of a couple good days of a positive tone in the market,” said Brian Machan , a money manager at Aviva Investors North America in Des Moines, Iowa. “Seeing Prudential do well and Lincoln National come earlier this week set the precedent.” Spreads on financial company bonds fell to 277 basis points, the lowest in two weeks, according to Bank of America Merrill Lynch’s U.S. Corporates, Banks index. Relative yields reached 286 basis points on June 11, the highest since October. Banks are making the most of investor demand before regulatory changes that could reduce profitability, said Scott MacDonald , head of credit and economics research at Aladdin Capital Holdings LLC in Stamford, Connecticut, which oversees $12.5 billion. Congress is debating sweeping changes to financial regulations that may hamper bank profits after the collapse of the housing market caused the worst recession since the 1930s and the loss of more than 8 million U.S. jobs. ‘Floodgates Have Opened’ “The floodgates have opened and banks are taking advantage,” MacDonald said. “From a strategic standpoint, they’d rather come in ahead of the curve than play catch up.” Spain sold its debt at an average yield of 4.864 percent, less than the 5.04 percent its 10-year bonds traded at yesterday before the sale. Demand was 1.89 times the amount on offer. It also sold 479.2 million euros of 30-year debt at 5.908 percent, and the bid -to-cover ratio was 2.45, higher than the 1.38 at the previous sale on March 18. Spain’s finance ministry said today the government will sell bonds in the third quarter through a group of banks, without naming the managers of the issue. It also announced auctions of debt with maturities ranging from 2015 to 2041. “The strong demand for Spanish bonds should help restore confidence,” said Ciaran O’Hagan , fixed income strategist at Societe Generale in Paris. “The good demand was only possible after considerable cheapening of Spanish bonds over the past days.” To contact the reporter on this story: Tim Catts in New York at tcatts1@bloomberg.net

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Morgan Stanley Hires Adam Parker From Bernstein as U.S. Equity Strategist

June 10, 2010

By Elizabeth Stanton June 10 (Bloomberg) — Morgan Stanley said it hired Adam Parker from Sanford C. Bernstein & Co. as U.S. equity strategist. He will join the New York-based company on Sept. 9, according to an internal memo confirmed by Sandra Hernandez , a spokeswoman. Parker spent more than 10 years at Bernstein, an investment research firm owned by AllianceBernstein LP , the New York-based manager of $466 billion. Most recently he was chief investment strategist and director of quantitative research, according to the memo. He was a runner-up in both categories in Institutional Investor’s 2009 survey. Previous roles included global director of research and senior semiconductor analyst. Stephen Penwell , head of North America equity research, will oversee Parker, who will make the firm’s forecasts for the Standard & Poor’s 500 Index. Jason Todd , a global equity strategist, has had that responsibility since the January 2009 departure of Abhijit Chakrabortti , who was U.S. equity strategist. Parker, who didn’t immediately return a phone call to his office at Bernstein, earned a doctorate in statistics from Boston University, a master’s degree in biostatistics from the University of North Carolina and bachelor’s degree in statistics from the University of Michigan, according to the memo. To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net

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GM, Ford to Accelerate Growth at Mexico Plants Where Workers Get $26 a Day

June 9, 2010

By Thomas Black June 9 (Bloomberg) – Mexico’s share of North American auto production may rise at a quicker pace as General Motors Co., Ford Motor Co. and Chrysler Group LLC seek out workers making less than 10 percent of what their U.S. counterparts earn. The lower labor costs may help the U.S. companies build smaller cars profitably amid demand for fuel-efficient vehicles in the wake of last year’s recession. Mexico’s gains will come at the expense of workers in the U.S. and Canada, said Dennis DesRosiers , president of DesRosiers Automotive Consulting Inc. “There is going to be more capacity put into North America and Mexico is going to get more than its fair share,” DesRosiers said from Richmond Hill, Ontario. Moves to Mexico may speed up after Chrysler and GM lessen some of the political pressure they face by paying back government bailout money, said Michael Robinet , vice president of global forecasting for CSM Worldwide in Northville, Michigan. The U.S. government has distributed about $80 billion in the Auto Industry Financing Program to support the industry. DesRosiers says Mexico’s share of North American auto production will rise to 19 percent over the next decade from an average 12 percent in 2000 to 2009. Over the same period, the U.S. will lose 7 percentage points to 65 percent of the market and Canada’s share will hold at 16 percent, he said. GM workers in Mexico earn wages and benefits of 340 pesos a day ($26.40) on average, or less than $4 an hour, said Tereso Medina, head of the union for GM’s 5,000 workers in Saltillo, a city that makes one in four Mexican autos. Ford workers in the U.S. earn about $55 an hour with benefits, compared with $50 an hour for Toyota Motor Corp. ’s U.S. workers, Lewis Booth , Ford’s chief financial officer, said on a Jan. 28 conference call. ‘Reprehensible’ Practice Representative John Dingell , a Michigan Democrat, said U.S. automakers that received government assistance should work to preserve U.S. jobs. “I understand the economic argument for the off-shoring of production, but I think the practice is reprehensible,” Dingell said in an e-mail. “U.S. automakers have benefitted greatly from federal largesse and should feel morally compelled to retain and create as many domestic jobs as possible.” In addition to labor costs, automakers are attracted to Mexico because of the North American Free Trade Agreement and its proximity to the U.S., Robinet said. Other benefits include Mexico’s more than 30 free-trade accords with European Union members, Japan, Colombia and other countries, and quality that matches the U.S. and Canada, he said. U.S. and Canadian unions have made concessions to bring costs at older factories in line with Toyota’s and Honda Motor Co.’s U.S. plants. Ron Gettelfinger , the outgoing United Auto Workers president, oversaw an agreement to allow lower wages for new hires. ‘New Strategies’ Even with the UAW concessions, Mexico remains attractive, Medina said. “For the new strategies of the automobile industry, this region should benefit,” Medina said in an interview. Christine Moroski, a UAW spokeswoman, declined to comment. Mexico stands to benefit from more stringent U.S. fuel- efficiency requirements because it’s more profitable to make small cars where labor costs are lower, Robinet said. Chrysler announced in February it’s spending $550 million to retool its factory in Toluca to assemble the Fiat 500 model. Last month, Ford reopened an assembly plant in Cuautitlan to build 2011 Fiesta cars. The factory will generate 2,000 jobs and is part of $3 billion of investments announced since 2008. In the U.S., Ford has closed four assembly plants since 2006 and plans to close four more facilities by the end of 2011. Mexico was responsible for 14.2 percent of Ford’s U.S.- Mexican car production last year, and 16 percent in 2008, compared with 11.8 percent in 2006, according to company data. Ford’s Investment For every dollar Ford invested in Mexico during the past five years, the company spent $7 in the U.S., said James Tetreault , vice president of North American manufacturing. Ford’s two Mexican assembly plants have operated for more than 30 years, he said. “In North America, it’s all about utilizing our existing footprint,” Tetreault said in a phone interview from Dearborn, Michigan. “It’s not like we’re building greenfield plants and moving production to Mexico.” U.S. car and light truck production declined every year to 8.45 million in 2008 from 11.5 million in 2005, according to Ward’s Automotive Yearbook . In Mexico, output rose every year to 2.08 million in 2008 from 1.61 million in 2005, the data show. Production fell in both countries last year, by 28 percent to 1.5 million units in Mexico and 34 percent to 5.56 million in the U.S., according to Ward’s. Auto Production This year, U.S. production in April rose 40 percent from a year earlier to an annualized rate of 7.05 million vehicles. Mexico’s output jumped 77 percent and is on pace to top 2008, according to the Mexican Automobile Industry Association . GM has announced investments of $3.67 billion in Mexico since November 2007, including a new assembly plant in San Luis Potosi, said Mauricio Kuri, a company spokesman in Mexico City. The company has closed five U.S.-based assembly plants and put three more on standby since June 2005, Tom Wilkinson , a GM spokesman, said in an e-mail. A significant portion of Chrysler’s production of the Fiat 500 will be sold in South America, said Jodi Tinson , a spokeswoman. “Mexico is in an ideal position as a bridge between Nafta and Latin America because of the country’s free-trade agreements with its neighbors to both the north and south,” Tinson said in the e-mailed response to questions. To contact the reporter on this story: Thomas Black in Monterrey at tblack@bloomberg.net .

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Video: BofA’s Harris Sees `Silver Linings’ in May Jobs Report: Video

June 4, 2010

June 4 (Bloomberg) — Ethan Harris, head of North America economics at Bank of America-Merrill Lynch Global Research, talks with Bloomberg’s Margaret Brennan about the May U.S. employment report. Payrolls rose by 431,000 last month, including a 411,000 jump in government hiring of temporary workers for the 2010 census, Labor Department figures showed today. Economists projected a 536,000 gain, according to the median forecast in a Bloomberg News survey. (Source: Bloomberg)

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Fujitsu Appoints Anthony Doye President and CEO of Fujitsu America

June 3, 2010

Veteran Technology Services Leader Will Accelerate Growth and Drive Strategy to Deliver Fujitsu Solutions and Services in North America

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BASF Names Finance Chief Kurt Bock to Replace Hambrecht at Helm Next Year

May 31, 2010

By Richard Weiss May 31 (Bloomberg) — BASF SE , the world’s largest chemical maker, appointed Chief Financial Officer Kurt Bock to run the manufacturer starting next year, choosing a corporate veteran who has helped steer the company away from commodity products. Bock, who turns 52 on July 3, will succeed Juergen Hambrecht as chief executive officer following the annual shareholders meeting in May 2011, Ludwigshafen, Germany-based BASF said today in a statement. BASF has been shifting away from bulk chemicals that Middle Eastern competitors make more cheaply and expanded in fast- growing markets in Asia. Acquisitions that Bock has helped engineer include catalytic-converter maker Engelhard Corp. for $4.8 billion and Degussa AG construction chemicals business for 2.2 billion euros ($2.7 billion), both in 2006, and Ciba in 2009 for about $3 billion. Martin Brudermueller , 49, who runs the Asia-Pacific division as well as performance polymers, polyurethanes and styrenics, will become Bock’s deputy. BASF, which didn’t specify anyone for the CFO position in today’s statement, said it will decide on further executive appointments in early 2011. “Kurt Bock is an entrepreneur with extensive international experience,” Supervisory Board Chairman Eggert Voscherau said in the statement. “Under his leadership, he will continue the company’s success.” Bock was named CFO of the year by industry magazine Chemical Week on May 25. He also is responsible for BASF’s business in North America and for catalysts. A native of Rahden, a town of 17,000 people in northern Germany, Bock started his career at BASF’s finance department in 1985 and spent six years at Robert Bosch GmbH before returning to BASF in 1998 and becoming CFO in 2003. He works at the company’s U.S. headquarters in Florham Park, New Jersey. To contact the reporter on this story: Richard Weiss in Frankfurt at rweiss5@bloomberg.net .

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Amish Offer Business Tips For CEOs

May 28, 2010

By Daniel Burke Religion News Service (RNS) Some of the most successful entrepreneurs in America have never been to high school, don’t use electricity, and would sooner love their competitors than sue them. For generations, the Amish have tended farms tucked away in rural communities like Lancaster, Pa., motivated by a faith that urged them to be in the world, but not of it. But as housing subdivisions and strip malls suck up farmland, many Amish have traded their plows for profits–with remarkable success. There are nearly 9,000 Amish-run small businesses in North America, according to Donald Kraybill, a professor at Elizabethtown College in Lancaster and a noted expert on the Amish and other Anabaptists. And whereas 50 percent of small businesses fail within the first five years, only 10 percent of Amish-run enterprises have gone belly up. Despite church strictures against electricity, the Internet, motor vehicles and many forms of advertising, Amish businesses have landed contracts with companies like Kmart and Ralph Lauren, developed nationwide networks of retailers, and crafted kitchens for customers from coast to coast. “The phrase `Amish millionaire’ is no longer an oxymoron,” Kraybill says. Amish expert Erik Wesner explores this surprising success story and offers tips on what other entrepreneurs can learn from the “plain people” in his new book, “Success Made Simple: An Inside Look at Why Amish Businesses Thrive.” Wesner first encountered the Amish as a traveling book salesman in the Midwest. “The business owners were the busiest of anyone,” Wesner recalls. “They only had 10 minutes to talk to me. But when I did talk to them, they bought books.” At a time of short-sighted speculators, when Wall Street brokers brag of luring widows into bad investments and executives admit to ambitions that outpaced their ability to produce safe cars, the Amish have a unique and compelling ethos, according to Wesner. “The meaning of success in an Amish context tends not to be wealth,” he said. “Generally, financial success is a means to an end.” Those ends include preserving their family-centered lifestyle, working hard at an honest trade, and passing a meaningful vocation on to their children. As a result, Amish businesses tend to stay small, keep a low overhead, treat employees and customers with kindness, and practice frugality, Wesner said. In short, many Amish would rather be righteous than rich–a lesson that can apply to everyone from Microsoft to mom-and-pop stores. “It’s not a very sexy message,” Wesner said, “but I think we’ve lost touch with that quality.” Whereas mainstream entrepreneurs may shutter shops and liquidate assets if they don’t make a pile of money right away, the Amish are willing to put up with slim profits, as long as they stay in the black. “There’s more to it than making a bundle of money,” said Benuel Riehl, an Amish man from Lancaster who recently opened a food stand with his wife and six sons in a market in Shrewsbury, Pa. “This has really given me an opportunity to work with my family, to know my wife in a whole new way, and to build new relationships with my sons.” There are limitations on Amish entrepreneurs: the entertainment, alcohol, and computer industries are verboten, traveling by airplanes is forbidden, and bishops will break up businesses that grow too large. “You don’t see 500-employee Amish companies with Amish CEOs kicking their feet up on a mahogany desk,” Wesner said. What you do see, however, is thousands of small, thriving shops making furniture, leather goods, and gazebos, not to mention countless stands selling food, clothes, and crafts. Surrounding those shops is a strong social network that provides reliable labor, business acumen, and loans, if needs be. While Wesner takes a sunny view of the Amish move from farm to factory, the long-term consequences of this mini-Industrial Revolution remain to be seen, said Kraybill. Will gender roles change? Will the use of the unique German dialect dissipate? Will religious teachings adjust to an increasingly pluralistic society? “It’s the biggest and most consequential change in Amish life since they came to North America,” Kraybill said. “It will have dramatic repercussions in the next several generations.”

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Coach Shows Why Bank of Japan May Ease Even as Toshiba Spurs Faster Growth

May 20, 2010

By Mayumi Otsuma and Anthony Feld May 21 (Bloomberg) — As Coach Inc. , the largest U.S. maker of luxury leather handbags doubled its dividend, announced an expansion in Europe and celebrated a sales rebound in North America, one market failed to deliver. “In Japan, the overall consumer market is very challenging, and the category continues to see declines,” Ian Bickley , president of international operations at New York-based Coach, told analysts and investors on a call last month. Japanese results also lagged behind for networking-equipment maker Cisco Systems Inc., Yum! Brands Inc., the owner of restaurants including KFC, and Manpower Inc., the employment- services provider. The underperformance came at the same time as Japanese companies from Toshiba Corp. to Nissan Motor Co. forecast rising earnings, propelled by overseas demand. The divergence was reflected in figures yesterday showing trade last quarter contributed most of Japan’s growth , which reached 4.9 percent — exceeding the Bank of Japan’s gauge of the economy’s speed limit at 0.5 percent. While growth exceeding the trend rate usually sparks inflation pressures, Japan’s subdued domestic spending means the central bank may pledge to explore ways of stepping up credit injections into the banking system. The Bank of Japan concludes a two-day policy meeting today. “The direction of overseas economies will continue to be the overwhelming factor to determine the fate of the nation’s economy,” said Yoshiki Shinke , senior economist at Dai-Ichi Life Research Institute in Tokyo. “It remains difficult to predict when the Bank of Japan can reverse course and start to unwind from its emergency mode.” Encourage Lending Governor Masaaki Shirakawa and his board will leave the benchmark interest rate at 0.1 percent today, according to all 16 economists surveyed by Bloomberg News. Six of the analysts predict the central bank will unveil some details of a program to encourage lending and boost economic growth. The announcement is scheduled for early afternoon in Tokyo, with Shirakawa planned to hold a press briefing at 3:30 p.m. Yesterday’s GDP report showed that consumer spending contributed less than one-fifth to the expansion in January to March. While a measure of domestic deflation moderated, prices continued to fall as growth in household demand slowed. Domestic and foreign companies are struggling to generate sales in the world’s second-largest economy. Milwaukee-based Manpower’s revenue fell 9 percent in Japan in the first quarter, compared with increases in the U.S., France and Germany. Coach’s sales slid 1 percent in Japan last quarter, while they rose 5.1 percent in North America. Toshiba’s Future Meanwhile, Toshiba is looking abroad for growth. The Tokyo- based company said this month it will increase investment over three years to boost overseas sales to 63 percent of its total, from 55 percent. Nissan, based in Yokohama, forecasts profit will more than triple this fiscal year, led by auto demand from North America and China. The Nikkei 225 Stock Average dropped 1.5 percent yesterday amid concern Japan’s reliance on exports makes it vulnerable to a possible global slowdown following Europe’s debt crisis. The gauge has lost 8 percent in the past month. Finance Minister Naoto Kan warned after the GDP release the economy remains in deflation. He reiterated the calls by Prime Minister Yukio Hatoyama’s administration — whose popularity has slumped ahead of a July election — for the central bank to help end the decline in consumer prices. Pressure Before Election “Political pressure on the BOJ will probably intensify as the government has to go through an upper house election,” said Akio Makabe , an economics professor at Shinshu University in Matsumoto, central Japan. “The bank will continue to try to get something done in response, and the new lending seems to be part of such efforts.” The BOJ cut the key rate to 0.1 percent in December 2008, and in March doubled to 20 trillion yen ($219 billion) a credit program that provides three-month loans to commercial banks at the benchmark rate. Shirakawa last month instructed his staff to find ways to spur loans in areas that could boost Japan’s long-term economic prospects, such as energy, the environment and technology. While details of the plan have yet to be mapped out, former BOJ board member Atsushi Mizuno said this week that it is motivated by “political aspects” as the government prepares to release a midterm growth strategy next month. “If I was to be asked if this initiative is crucial, my answer would be no,” said Mizuno, who served on the board from 2004 to 2009 and is now vice chairman of fixed income at Credit Suisse Group AG. Masaaki Kanno , chief Japan economist at JPMorgan Chase & Co., said the European Central Bank’s decision this month to start buying government bonds may spur political pressure on the BOJ to increase its monthly purchases of the country’s debt from 1.8 trillion yen, a move that would carry risks. “Expanding such purchases would fuel concerns that Japan’s fiscal discipline will be eroded further,” said Kanno, who worked at the BOJ for 25 years. “In Japan, it’s not sufficiently recognized how dangerous it is for a central bank to pay for the fiscal deficit.” To contact the reporters on this story: Mayumi Otsuma in Tokyo at motsuma@bloomberg.net ; Anthony Feld in New York at afeld2@bloomberg.net

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Toyota Study Finds No Evidence Electronics Caused Acceleration, Lentz Says

May 19, 2010

By Jeff Plungis May 19 (Bloomberg) — Toyota Motor Corp. hasn’t found any electronics flaws to explain sudden, unintended acceleration after examining more than 2,000 vehicles, the company’s U.S. sales chief will tell a House panel tomorrow. Toyota conducted 600 on-site inspections and more than 1,400 at its dealerships, James Lentz , president of Toyota Motor Sales USA Inc., said in remarks prepared for a House Energy and Commerce Committee hearing and released today. “Significantly, none of these investigations have found that our Electronic Throttle Control System with intelligence was the cause,” Lentz said. Toyota, the world’s largest automaker, has been the subject of a series of congressional hearings since February for its handling of sudden-acceleration cases. The Toyota City, Japan- based automaker has recalled more than 8 million vehicles worldwide to fix sticky pedals and misshapen floor mats linked to the flaw. Some complaints about acceleration came from customers who double- or triple-stacked floor mats, Lentz said in the prepared remarks. The company needs to tell customers that higher engine speeds are normal when vehicles are being started in the cold or when air conditioning kicks in, he said. Some customers had concerns about differences in how cars drive after software updates, while others have complained about how repaired accelerator pedals feel, Lentz said. Toyota has completed more than 3.5 million recall repairs, Lentz said. With a new quality-assurance chief based in North America, its design, manufacturing and after-market support will be more effective, he said. In cases where company examinations haven’t turned up any evidence of a problem, Toyota will closely monitor the customer’s complaints for further investigation, Lentz said. To contact the reporter on this story: Jeff Plungis in Washington at jplungis@bloomberg.net .

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Deere Profit Beats Analysts’ Estimates on Growing Demand for Farm Machines

May 19, 2010

By Shruti Date Singh May 19 (Bloomberg) — Deere & Co., the world’s largest farm equipment maker, reported second-quarter profit that topped analysts’ estimates and raised its profit and sales forecasts as demand for farm machinery increased. Net income rose 16 percent to $547.5 million, or $1.28 a share, from $472.3 million, or $1.11, a year earlier, the Moline, Illinois-based company said today in a statement. Profit in the three months through April, excluding some items, was $1.58 a share, exceeding the $1.08 average estimate of 20 analysts surveyed by Bloomberg. Deere is benefitting from growing demand in South America and North America for machinery such as tractors and combines. The company, led by Chief Executive Officer Samuel Allen , said sales increased 5.7 percent to $7.13 billion because of favorable currency translation, higher prices and rising equipment sales. “It was a good clean quarter, much better than expectations,” Larry De Maria , a New York-based analyst at Sterne Agee & Leach, Inc., said in a telephone interview. “They are expanding internationally very solidly. Their core business is doing exceptionally well.” He rates the shares “buy.” Deere rose $1.40, or 2.5 percent, to $58.56 at 8:38 a.m. before the regular open of New York Stock Exchange trading. The shares gained 5.7 percent this year before today. Forecast Raised Deere raised its forecast for net income in the fiscal year through October to $1.6 billion, from a February projection of about $1.3 billion. The new forecast includes a one-time $129.5 million charge related to U.S. healthcare legislation. Deere said sales of its signature green-and-yellow equipment will jump 11 percent to 13 percent in fiscal 2010, up from a February forecast of 6 percent to 8 percent. Fiscal second-quarter revenue in the agriculture and turf division increased almost 1 percent to $5.64 billion, Deere said. The unit’s operating profit rose 35 percent to $952 million. Construction and forestry sales rose 52 percent to $911 million while operating profit climbed to $36 million from a loss of $75 million a year earlier, the company said. “It was broad-based strength,” Stephen Volkmann , an analyst for Jefferies & Co. in New York, said today of Deere’s overall second-quarter performance. “It wasn’t just one region or product area.” To contact the reporter on this story: Shruti Date Singh in Chicago at ssingh28@bloomberg.net

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GM Shows First Profit Since 2007

May 17, 2010

DETROIT — General Motors Co. rode expense cuts from its bankruptcy and strong sales of redesigned models to its first quarterly net income in nearly three years, drawing the company closer to a stock offering that would repay at least part of its government aid. The $865 million first-quarter profit is a dramatic reversal from the huge $6 billion loss in the same period last year. The last time the company made a quarterly profit was the second quarter of 2007, when it earned $891 million. The Detroit automaker said it made money because debt and other expenses were slashed by its stay in bankruptcy court, and because of strong new-model sales. It also generated higher revenue from growth in Asia and South America. The earnings of $1.66 per share from January through March are stunningly different from the first quarter of last year, when the largest U.S. automaker lost $9.78 per share as it skidded into bankruptcy protection. First-quarter revenue soared 40 percent to $31.5 billion. GM lost $3.4 billion in the fourth quarter of 2009 on revenues of $32.3 billion, the company’s first full quarter out of bankruptcy protection. Chief Financial Officer Chris Liddell was said it may be difficult to sustain the same level of profit for the remainder of the year because first-quarter production is usually higher than other quarters, with automakers ramping up for the spring selling season. “I’d still be reasonably cautious about the rest of the year,” he said. New models such as the Chevrolet Equinox small sport utility vehicle and the Buick LaCrosse luxury sedan lifted GM’s North American operations to a $1.2 billion profit, compared with a $3.4 billion loss in the year-earlier quarter. North America had been a continual drain on GM’s profits before its bankruptcy filing last year. CEO Ed Whitacre has predicted a full-year profit as U.S. auto sales continue their slow recovery. That could lead to a public stock offering late in the year and full repayment of the $50 billion in U.S. government aid that stopped GM from going under last year. The U.S. government now owns 61 percent of the company. Liddell said the company hasn’t committed to any date for a public stock offering. GM has said, however, that it hopes to make an initial public stock offering late this year. In bankrutpcy court, GM was split into two companies, the old one carrying unprofitable assets and much of its debt, while the new one moved forward with a much stronger balance sheet. Based on the trading price of Old GM’s bonds, the U.S. government could get back $40 billion, former Obama administration auto czar Steven Rattner said last week. Also on Monday, GM said it paid $203 million in dividends to its preferred stockholders, the U.S. and Canadian governments and a United Auto Workers union retiree health care trust. The company reported $35.7 billion in cash at the end of the quarter, including a final installment in April of $6.6 billion in aid from the U.S. government. That money had been held in escrow by the government and is included in the $50 billion aid total. GM has lost more than $86 billion since 2005, even though it had a few profitable quarters along the way. Before heading into bankruptcy protection last year it had almost $53 billion in debt, but it ended last quarter at $14 billion. GM paid $5.8 billion to the U.S. and Canadian governments in April, reducing its debt further to $8.4 billion. The automaker has repaid a total of $6.7 million to the U.S. government, and the Obama administration hopes to get the remaining $43 billion by selling its 61 percent stake in the country’s largest automaker. The remaining balance on the government aid tab isn’t considered debt since it was converted to equity in the company. GM, once a symbol of U.S. industrial might, would have disappeared late in 2008 or early last year without help from the government. The company cut 10,000 workers last quarter and now employs 205,000 people across the globe, including 77,000 in the U.S. The company has cut worldwide employment by nearly half in the past decade.

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Silver America, Inc. Announces Strategic Mining Engineer Appointment to Management Team

May 17, 2010

RENO, NV–(Marketwire – May 17, 2010) –  Silver America, Inc. ( OTCBB : SILA ) (“Silver America” and/or “the Company”) is pleased to announce the appointment of seasoned Mining Engineer, Mark See, to the Company’s growing management team in the role of VP of Exploration. Mark brings over 23 years of experience in exploration, mining and the petroleum industries. He was selected by The “Engineering News Record” as one of the Top 25 Engineers in North America for his engineering innovations .

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Acision Announces Appointment of John Middleton as Regional Director for Canada

May 13, 2010

TORONTO–(Marketwire – May 13, 2010) –  Acision, a world leader in mobile data, today announced the appointment of John Middleton as regional director for Acision’s Canadian operations. With his extensive experience in the telecommunications industry working with equipment vendors and carriers, Middleton will strengthen Acision’s presence in North America through an aggressive growth strategy as the company continues to invest in the region.

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Diageo Is Said to Eliminate Jobs at U.S. Wine Business as Unit Scaled Back

May 12, 2010

By Andrew Cleary and Duane D. Stanford May 12 (Bloomberg) — Diageo Plc, the maker of Smirnoff vodka and Guinness stout, will cut jobs at its U.S. wine operations as part of a scaling back of the business, according to two people familiar with the matter. The downsizing will be announced shortly, and is part of a complete review of the U.S. wine unit, according to the people, who declined to be identified because the plan hasn’t yet been made public. There are no immediate plans to sell any parts of the unit, they said. London-based Diageo is more reliant on the U.S. than its main competitors, including Pernod Ricard SA. The company generates about 40 percent of earnings in the country, where the consumer recovery has been slower. The distiller’s U.S. wine business performed worse than its spirits and beers throughout the recession. Last year, Diageo cut 150 jobs in North America, or about 4 percent of the workforce in that region, as it looks to trim 160 million pounds ($238 million) in expenses globally by the end of the fiscal year ending June 2012. To contact the reporter on this story: Duane D. Stanford in Atlanta at dstanford2@bloomberg.net ; Andrew Cleary in London at acleary7@bloomberg.net .

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Video: Gilliam Sees Two Years for U.S. to Recover Lost Jobs: Video

May 7, 2010

May 7 (Bloomberg) — Theron Gilliam, head of the North America division at Adecco SA, talks with Bloomberg’s Mark Crumpton and Lori Rothman about today’s report showing payrolls in the U.S. surged by the most in four years and the outlook for the labor market. The 290,000 increase in employment exceeded the median estimate of economists surveyed by Bloomberg News. The jobless rate rose to 9.9 percent from 9.7 percent as thousands of jobseekers entered the workforce, a Labor Department report in Washington showed today. (Source: Bloomberg)

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Constantine to Head Up Software & IT Services Sector for QinetiQ North America’s Systems Engineering Group

May 6, 2010

HUNTSVILLE, AL–(Marketwire – May 6, 2010) –  QinetiQ North America ( LSE : QQ ) has appointed Harold “Ed” Constantine as Vice President of its Systems Engineering Group’s Software and IT Services Sector. Constantine will work out of the Group’s Oceanside, Calif. office and report directly to Chief Operating Officer Randy Tieszen.

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Asian Stocks Rise the Most in Five Weeks as Toyota, Canon Drive Up Nikkei

April 25, 2010

By Jonathan Burgos and Masaki Kondo April 26 (Bloomberg) — Asian stocks rose, driving up the MSCI Asia Pacific Index by the most in more than five weeks, as Toyota Motor Corp. and Canon Inc. led gains on speculation earnings will increase as the global economy recovers. Toyota , the world’s largest carmaker, jumped 3.2 percent in Tokyo after the Nikkei newspaper said the company had an annual operating profit instead of the loss Toyota forecast. Canon, a camera maker that gets 79 percent of sales outside Japan, climbed 3.2 percent as the dollar strengthened after U.S. sales of new homes gained faster than estimated, boosting optimism in an economic recovery. Samsung Electronics Co. , which gets about 20 percent of sales from America, gained 1 percent in Seoul. “The world’s economy is more resilient than has been thought, and investors are more inclined to put their money in stocks,” said Yoshinori Nagano , a senior strategist at Tokyo- based Daiwa Asset Management Co., which oversees the equivalent of $91 billion. “With the current foreign-exchange level, investors are confident in the corporate earnings outlook.” The MSCI Asia Pacific Index climbed 1.1 percent to 126.74 as of 10:30 a.m. in Tokyo, with more than nine times as many stocks advancing as declining. The measure was on course for its biggest increase since March 17. The gauge lost 2.3 percent last week after the U.S. filed a lawsuit against Goldman Sachs Group Inc. and China stepped up measures to curb property prices. Stocks in the gauge traded at 16 times estimated earnings on April 23, the lowest level since January 2009, according to data compiled by Bloomberg. Nikkei 225 Advances Japan’s Nikkei 225 Stock Average increased 2.2 percent to 11,151.47, the largest gain among equity benchmarks in the Asia Pacific region, and the most for the gauge since March 5. Australia’s markets are closed for a national holiday. Taiwan’s Taiex index and South Korea’s Kospi Index advanced more than 1 percent. South Korea’s economy probably accelerated in the first quarter as rising global demand boosted sales at carmakers and electronics manufacturers, according to a Bloomberg survey of 12 economists. The data release is due at 8 a.m. tomorrow in Seoul. Futures on the Standard & Poor’s 500 Index were little changed. The gauge climbed 0.7 percent on April 23 in New York to its highest close since September 2008. Sales of new homes soared 27 percent in March, climbing the most in 47 years to a level that surpassed the highest forecast of economists surveyed by Bloomberg News. Orders for goods meant to last at least three years, excluding cars and aircraft, gained 2.8 percent. “The U.S. economy is solidly improving because of not only government spending, but also the recovery in private demand,” said Tomochika Kitaoka , a senior strategist at Mizuho Securities Co. in Tokyo. Toyota, Canon, Honda Toyota, which gets about 31 percent of sales from North America, advanced 3.2 percent to 3,685 yen. Toyota probably had operating profit of as much as 50 billion yen ($530 million) for the year ended March 31, Nikkei English News reported on April 24, without saying where it got the information. Cost cuts and a weaker yen boosted revenue from overseas, the Nikkei said. The company on Feb. 4 forecast an operating loss of 20 billion yen. Honda Motor Co. , which is Japan’s second-biggest carmaker and gets 44 percent of its sales in North America, climbed 2.8 percent to 3,305 yen. Canon increased 3.2 percent to 4,380 yen. The three companies were the biggest contributors to the MSCI Asia Pacific Index. The yen depreciated to 94.19 today against the dollar from 93.43 at the 3 p.m. close of Tokyo stock trading on April 23, and weakened versus the euro to 125.80 from 123.69. A weaker yen boosts the value of overseas income at Japanese companies when converted into their home currency. In Seoul, Samsung Electronics gained 1 percent to 838,000 won. South Korea’s gross domestic product rose 1.5 percent in the three months through March from the previous quarter, when it advanced 0.2 percent, according to the median of 12 estimates in a Bloomberg News survey. To contact the reporters for this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net ; Masaki Kondo in Tokyo at mkondo3@bloomberg.net .

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EADS North America Names Retired Air Force General Arthur J. Lichte to Its Board of Directors

April 23, 2010

ARLINGTON, VA–(Marketwire – April 23, 2010) –  The Board of Directors of EADS North America has confirmed the board appointment of General Arthur J. Lichte (USAF, Retired), who brings expertise from a distinguished 38-year U.S. Air Force career. 

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Autonomy Starts Acquisitions Talks, May Seek U.S. Listing, CEO Lynch Says

April 21, 2010

By Jonathan Browning April 21 (Bloomberg) — Autonomy Corp Plc , the U.K.’s second-largest software company, is starting conversations about potential acquisitions after raising 500 million pounds ($769 million) by selling convertible bonds. Autonomy, which normally targets U.S.-based companies for purchases, needed to raise the money because it can’t offer U.S. stock as part of an acquisition, Chief Executive Officer Mike Lynch said today in a telephone interview. “To get a sensible conversation going, one has to have the cash ready to go,” Lynch said. “Now that cash has been raised we’re in a position to have those conversations.” The software company, which gets about 70 percent of revenue from North America, may also consider a dual listing in the U.S., Lynch said, speaking from San Francisco after being delayed by the volcanic ash cloud. The Cambridge, England-based company has no current plans to seek a U.S. listing, he said. Shares rose as much as 1.5 percent to 1,808 pence in London trading today and stood at 1,807 pence as of 9:05 a.m. “Anything that enhances the ability for U.S. investors to buy the stock would be a positive,” Roger Phillips , an analyst at Evolution Securities, said via phone today. He added there had been a lot of interest in the past year from U.S.-based investors. First-quarter sales excluding acquisitions rose 17 percent, after an increase of 16 percent in 2009, Autonomy said today in a statement. The company last year bought U.S. software provider Interwoven Inc. for $775 million. First-quarter net income rose to $49.7 million from $34.5 million after Autonomy won orders from companies including AT&T Inc. Total sales surged 50 percent to $194.2 million. To contact the reporter on this story: Jonathan Browning in London jbrowning9@bloomberg.net .

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EVCARCO (OTCBB: EVCA) Initiates Expansion Plan by Appointing Alternative Energy Vehicle Expert Bill Williams

April 15, 2010

EVCARCO Brings Aboard Electric Car Expert to Head Up Dealer Development for North America, Bill Williams Appointed by EVCARCO

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Macquarie to Pay AIG Plane Unit $2 Billion for 53 Aircraft, Boosting Fleet

April 13, 2010

By Sarah McDonald April 14 (Bloomberg) — Macquarie Group Ltd. , Australia’s biggest investment bank, said its subsidiary Macquarie Bank Ltd. agreed to buy an aircraft operating lease portfolio from a unit of bailed-out insurer American International Group Inc. Macquarie Bank will pay $2 billion to acquire 53 aircraft from International Lease Finance Corp., according to a statement. It will transfer the right to purchase six of those aircraft to Macquarie AirFinance Ltd., a global aircraft leasing company that Macquarie part-owns, the statement said. “This transaction leverages Macquarie’s existing expertise in asset leasing,” Macquarie Group Chief Financial Officer Greg Ward said. The purchase “diversifies the client base of our aircraft fleet.” AIG has been selling assets after taking a $182.3 billion rescue package as soured derivative bets tied to housing markets drained cash. Sydney-based Macquarie, with capital of A$4.5 billion ($4.2 billion) above the regulatory minimum at the end of December, remained profitable throughout the financial crisis and has been buying assets in North America amid the recovery. The planes comprise “young, modern aircraft on lease to 35 airlines in 27 countries,” Macquarie said in the statement. The aircraft portfolio is dominated by Boeing 737 Next Generation and Airbus A320 family aircraft, according to the statement. Macquarie’s corporate and asset finance division has loans and leases under management of A$13.8 billion as at Dec. 31, it said in the statement. To contact the reporter on this story: Sarah McDonald in Sydney at smcdonald23@bloomberg.net .

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MasterCard Appoints Ajay Banga Chief Executive Officer to Replace Selander

April 12, 2010

By Nikolaj Gammeltoft April 12 (Bloomberg) — MasterCard Inc. , the second-biggest electronic-payments network after Visa Inc., named Ajay Banga chief executive officer, 10 months after hiring him as a potential successor to Robert W. Selander . Banga, 50, will take the top position on July 1, the Purchase, New York-based company said today in a statement. Selander, 59, will continue as executive vice chairman and a member of the board of directors until he retires on Dec. 31. Banga joined MasterCard as president and chief operating officer from Citigroup Inc. last August, and was given a $4.2 million signing bonus he could keep if he wasn’t named CEO by June 30, 2010, according to a regulatory filing . Banga will retain his title as president when he becomes CEO. “Ajay has demonstrated extraordinary leadership and insight, and I know he is the ideal candidate to lead MasterCard moving forward,” Selander, who was named CEO in 1997, said in the statement. MasterCard’s fourth-quarter earnings fell short of most Wall Street estimates as rebates and incentives climbed 35 percent from a year earlier. Visa reported earnings that exceeded forecasts. Both networks are benefiting from consumers’ increased shift to plastic. Card-based transactions were projected to exceed cash and checks for the first time in 2009, according to the Nilson Report, an industry newsletter based in Carpinteria, California. By 2013, card- and electronic-based payments will account for 63 percent of an estimated $9 trillion in U.S. consumer transactions, Nilson said. Kraft, Citigroup Banga, who is a board member of Kraft Foods Inc., started his career at Nestle SA and spent 13 years at Citigroup. He joined the New York-based bank in 1996 as head of marketing in India for the consumer business. In 2000 he was promoted to head CitiFinancial and the U.S. consumer assets division. In 2002 he took over the retail bank in North America, and in 2005 he was named to head Citigroup’s international consumer-banking and finance businesses. He moved to Hong Kong in early 2008 after being named to oversee all of the bank’s businesses in Asia. Banga holds degrees from Delhi University and the Indian Institute of Management in Ahmedabad. To contact the reporter on this story: Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net

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MasterCard Appoints Ajay Banga Chief Executive Officer to Replace Selander

April 12, 2010

By Nikolaj Gammeltoft April 12 (Bloomberg) — MasterCard Inc. , the second-biggest electronic-payments network after Visa Inc., named Ajay Banga chief executive officer, 10 months after hiring him as a potential successor to Robert W. Selander . Banga, 50, will take the top position on July 1, the Purchase, New York-based company said today in a statement. Selander, 59, will continue as executive vice chairman and a member of the board of directors until he retires on Dec. 31. Banga joined MasterCard as president and chief operating officer from Citigroup Inc. last August, and was given a $4.2 million signing bonus he could keep if he wasn’t named CEO by June 30, 2010, according to a regulatory filing . Banga will retain his title as president when he becomes CEO. “Ajay has demonstrated extraordinary leadership and insight, and I know he is the ideal candidate to lead MasterCard moving forward,” Selander, who was named CEO in 1997, said in the statement. MasterCard’s fourth-quarter earnings fell short of most Wall Street estimates as rebates and incentives climbed 35 percent from a year earlier. Visa reported earnings that exceeded forecasts. Both networks are benefiting from consumers’ increased shift to plastic. Card-based transactions were projected to exceed cash and checks for the first time in 2009, according to the Nilson Report, an industry newsletter based in Carpinteria, California. By 2013, card- and electronic-based payments will account for 63 percent of an estimated $9 trillion in U.S. consumer transactions, Nilson said. Kraft, Citigroup Banga, who is a board member of Kraft Foods Inc., started his career at Nestle SA and spent 13 years at Citigroup. He joined the New York-based bank in 1996 as head of marketing in India for the consumer business. In 2000 he was promoted to head CitiFinancial and the U.S. consumer assets division. In 2002 he took over the retail bank in North America, and in 2005 he was named to head Citigroup’s international consumer-banking and finance businesses. He moved to Hong Kong in early 2008 after being named to oversee all of the bank’s businesses in Asia. Banga holds degrees from Delhi University and the Indian Institute of Management in Ahmedabad. To contact the reporter on this story: Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net

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United Flight Lands Safely After Man Trying to Smoke Caused Disturbance

April 7, 2010

By Justin Blum and Jeff Bliss April 8 (Bloomberg) — A United Airlines flight from Washington to Denver yesterday landed safely after air marshals responded to a passenger causing a disturbance on board, the U.S. Transportation Security Administration said. The incident appears to have involved a Qatari diplomat who was smoking a cigarette in the lavatory and tried to put it out with his shoe, a U.S. official said on condition of anonymity. The passenger claimed diplomatic immunity and made comments that the authorities on the plane took to be threatening, which prompted the landing, he said. Earlier media reports said the man was subdued after trying to set light to his shoes. Police and TSA officials “responded to the scene and the passenger is currently in custody,” the TSA said in a statement . “All steps are being taken to ensure the safety of the traveling public.” The flight was UA flight 663. The North American Aerospace Defense Command sent two missile-equipped F-16 fighter jets to accompany the plane to Denver International Airport , Captain Craig Savage said. A call to the Denver airport’s press office wasn’t immediately returned, and airport police declined to comment. Denver Police Lieutenant Matt Murray also declined to comment and referred calls to the FBI. Nigerian Umar Farouk Abdulmutallab is facing trial for a failed attempt to bomb a Detroit-bound Northwest Airlines plane on Christmas Day. The incident forced a global review of security. Body scanners have been introduced in airports in Europe and North America to detect the type of explosive that Abdulmutallab allegedly had concealed in his underwear. To contact the reporters on this story: Jeff Bliss in Washington jbliss@bloomberg.net ; Justin Blum in Washington at jblum4@bloomberg.net .

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Greece Swaps Trade Higher Than Iceland’s for First Time on Default Concern

April 7, 2010

By John Detrixhe April 7 (Bloomberg) — Credit-default swaps linked to Greece sovereign debt rose higher than those tied to Iceland for the first time, helping propel a benchmark indicator of U.S. corporate credit risk to its biggest jump in two weeks. The Markit CDX North America Investment Grade Index Series 14 rose 2.4 basis points to a mid-price of 86.4 basis points as of 2:14 p.m. in New York, according to Markit Group Ltd. The index typically increases as investor confidence deteriorates and falls as it improves. Swaps tied to Greece rose to 415 basis points today while those on Iceland traded at about 400 basis points, according to Markit data. The North American Markit index climbed the most since March 22 amid investor concern that contagion from a Greece default could spread to other assets, said Gavan Nolan , an analyst at Markit Group in London. “The whole EU response to Greece has been quite fragmented,” Nolan said in a telephone interview. Greece may default on its debt as early as this year without “extraordinary” financial assistance from the European Union and International Monetary Fund, said Stephen Jen at BlueGold Capital Management LLP. The challenges facing Greece are similar to those that confronted Argentina, which defaulted on $95 billion of debt in 2001, said Jen, managing director at the hedge fund, in an interview today in London. Greece’s austerity measures to narrow the European Union’s biggest budget deficit by gross domestic product may drive the Mediterranean nation into a recession, he said. “A default may be ultimately unavoidable,” he said. Iceland Bailout Iceland had to resort to a $4.6 billion IMF-led bailout after its three biggest banks collapsed in October 2008, leaving creditors wondering how they would recoup about $80 billion in debt. Credit swaps pay the difference between the value of defaulted debt and its face value should the borrower fail to meet its obligations. A basis point equals $1,000 annually on a contract protecting $10 million of debt. Investors use the Markit CDX index to hedge against losses on corporate debt or to speculate on creditworthiness. To contact the reporter on this story: John Detrixhe in New York at jdetrixhe1@bloomberg.net

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General Motors Generates $1 Billion in Cash, Posts $4.3 Billion 2009 Loss

April 7, 2010

By Jeff Green and David Welch April 7 (Bloomberg) — General Motors Co. generated $1 billion in cash last year after leaving bankruptcy in July as Chief Executive Officer Ed Whitacre cut half of the U.S. brands and shuffled management to push for a profit in 2010. The net loss was $4.3 billion from its Chapter 11 exit through Dec. 31, Detroit-based GM said today. Cash and marketable securities totaled $36.2 billion at year’s end, according to slides prepared for an analyst call. GM needs cash to meet a goal of repaying government loans in 2010 and market the new models pivotal to Whitacre’s demands for increased sales. The results offer the first look at the 2009 financial performance of the biggest U.S. automaker since it emerged from the remnants of General Motors Corp. “They should make money this year,” said Maryann Keller , president of consultant Maryann Keller & Associates in Stamford, Connecticut. “If they didn’t make money this year, I don’t know how they will make money.” GM posted a fourth-quarter loss of $3.4 billion and used $1.9 billion in cash. For the third quarter, a period that began with the end of bankruptcy on July 10, GM generated $3.3 billion in cash and lost $1.15 billion, the company said Nov. 16. Revenue for 2009 was $57.5 billion. ‘Important Step’ “Today marks an important step for the new GM,” Chief Financial Officer Chris Liddell said on a conference call. “While these results are somewhat dated, it gives you an idea of the financial hill we have had to climb. Despite the results for the fourth quarter, I believe we have a chance of achieving a profit” in 2010 before interest and taxes. Profitability is “the most important foundation” before selling shares to the public, said Liddell, who didn’t give a timeline for an initial stock offering. The U.S. government now owns 61 percent of the company. GM’s 8.375 percent bonds due July 2033 rose 0.18 cent to 37.05 cents on the dollar at 11:58 a.m. in New York, according to Trace, the bond-pricing service of the Financial Industry Regulatory Authority. The bonds were issued by General Motors Corp. and will convert into equity in the new GM as part of the bankruptcy agreement. Liddell said GM seeks to repay all of its bankruptcy- related borrowing from the U.S. and Canada by “June 2010 at the latest.” GM said it repaid $2.4 billion to the U.S. Treasury and $400 million to Canada of the original $8.3 billion in government debt. “No wonder they’re paying the loans back,” Keller said. “They have more than enough cash.” Whitacre’s Changes Whitacre, 68, who is also chairman, took on the CEO’s job on Dec. 1 and stepped up changes among senior leadership. He recruited Liddell from Microsoft Corp. and named new executives for sales and marketing in North America, the company’s largest region . Some of GM’s new cash will go for developing vehicles such as large pickups and some will go toward promoting new models, including the Chevrolet Equinox and GMC Terrain mid-sized sport- utility vehicles. The Buick Regal and Chevrolet’s Volt electric car and Cruze small sedan are due later this year. GM hasn’t given a breakdown on its spending plans. GM’s U.S. sales rose 16.8 percent in the first quarter, outpacing the 15.5 percent industrywide increase, according to industry researcher Autodata Corp. of Woodcliff Lake, New Jersey. Its U.S. market share climbed to 18.7 percent from 18.5 percent a year earlier. Excluding interest and taxes, GM said its fourth-quarter operating loss was $4 billion. The net loss included $2.6 billion in costs to finance a union retiree medical fund, $400 million from currency adjustments and $100 million for winding down the Saturn unit after GM failed to find a buyer. Cutting Brands Saturn is among four U.S. brands being unloaded so GM can focus on its remaining U.S. vehicle lines — Chevrolet, GMC, Buick and Cadillac. GM sold Saab last month to Dutch luxury-auto maker Spyker Cars NV and is shutting Hummer and Pontiac. The automaker said it lost $3.4 billion in North America on an operating basis in the fourth quarter. GM posted losses before interest and taxes of $814 million in Europe and a profit of $738 million on that basis in other international operations. GM sold 7.48 million cars and trucks worldwide last year, down from 8.36 million in 2008. Excluding the quarter’s one-time charges, GM is closer to break even, Liddell said. “We don’t need to make that much improvement to get to profitability,” he said. Years of Losses GM amassed $88 billion in losses from 2004 through last year’s first quarter under former CEO Rick Wagoner , who was asked by the government’s auto task force to step aside in March 2009. He was replaced with Fritz Henderson , who was ousted by the board in favor of Whitacre eight months later. The automaker’s restructuring in bankruptcy allowed GM to slash $10.6 billion in costs by cutting plants, payroll, health- care costs and debt payments. As part of so-called fresh-start accounting after bankruptcy, GM said it valued property, plant and equipment at $19 billion, an $18 billion drop. GM recognized $30 billion in goodwill and $16 billion in intangible assets as well as $8 billion in equity and cost-based investments, according to the slides. GM was also sued by the United Auto Workers yesterday over claims the automaker owes $450 million to a retiree fund of partsmaker Delphi Corp., a former GM unit. To contact the reporters on this story: Jeff Green in Southfield, Michigan, at jgreen16@bloomberg.net ; David Welch in Southfield, Michigan, at dwelch12@bloomberg.net .

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John Radziszewski to Direct Strategic Development for QinetiQ North America’s Systems Engineering Group

April 5, 2010

STAFFORD, VA–(Marketwire – April 5, 2010) –  QinetiQ North America ( LSE : QQ. ) has appointed John Radziszewski to head up Strategic Development for its Systems Engineering Group. Radziszewski will lead the Group’s business development strategy, particularly in its pursuit of new markets and customers.

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John Radziszewski to Direct Strategic Development for QinetiQ North America’s Systems Engineering Group

April 5, 2010

STAFFORD, VA–(Marketwire – April 5, 2010) –  QinetiQ North America ( LSE : QQ. ) has appointed John Radziszewski to head up Strategic Development for its Systems Engineering Group. Radziszewski will lead the Group’s business development strategy, particularly in its pursuit of new markets and customers.

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U.S. Stock Futures, Treasury Yields, Dollar Rise on Improving Jobs Market

April 2, 2010

By Nick Baker April 2 (Bloomberg) — U.S. stock-index futures, yields on 10-year Treasuries and the dollar advanced after employers added the most jobs in three years, boosting optimism that the economic recovery is accelerating. Standard & Poor’s 500 Index futures expiring in June rose 0.3 percent to 1,177.30 when trading stopped at 9:14 a.m. in New York. U.S. stock exchanges are closed today for the Good Friday holiday. Treasuries fell, driving the yield on 10-year notes up 0.06 percentage point to a 10-month high of 3.93 percent. The U.S. dollar reached 94.67 yen, the strongest in seven months. Payrolls rose by 162,000 last month, less than anticipated, after a revised 14,000 decrease in February that was smaller than initially estimated, figures from the U.S. Labor Department in Washington showed today. The March increase included 48,000 temporary workers hired by the government to help conduct the 2010 census. The unemployment rate held at 9.7 percent. “The data supports the idea of a sustainable recovery going forward,” said Michael Pond , an interest-rate strategist in New York at Barclays Plc, one of 18 primary dealers required to bid at Treasury auctions. Caterpillar Inc. is among companies adding staff, indicating the recovery that began in the second half of 2009 is starting to foster the job gains needed to lift consumer spending and sustain the economic expansion. Unemployment may be slow to recede as formerly discouraged employees enter the labor force looking for work, signaling the Federal Reserve will keep interest rates low in coming months. No Rush “There is underlying strength and there are other components here that are also underlying strength, but you still have a 9.7 percent unemployment rate,” Michael O’Rourke , chief market strategist at BTIG LLC, said in a Bloomberg Television interview. “There’s still enough weakness there for investors that the Fed’s not gonna rush in.” The Markit CDX North America Investment Grade Index Series 14, which investors use to hedge against losses on corporate debt or to speculate on creditworthiness, declined 1 basis point to a mid-price of 85.9 basis points as of 8:51 a.m. in New York, according to Markit Group Ltd. The Dollar Index, which measures the U.S. currency against the euro, yen, pound, Canadian dollar, Swedish krona and Swiss franc, rose 0.6 percent to 81.254, erasing about two-thirds of its losses from the past two days. To contact the reporter on this story: Nick Baker in New York at nbaker7@bloomberg.net .

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Video: Speck Says Chinese Auto Market Is `Big Win’ for Volvo: Video

April 1, 2010

April 1 (Bloomberg) — Doug Speck, chief executive officer of Volvo Cars North America LLC, talks with Bloomberg’s Mark Crumpton about the outlook for the Volvo brand. Zhejiang Geely Holding Group Co., agreed to buy Volvo from Ford Motor Co. for $1.8 billion on March 28. The Chinese automaker aims to boost profit by offering more expensive models at home and selling 50 percent of its cars overseas by 2015. (Source: Bloomberg)

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Video: Speck Says Chinese Auto Market Is `Big Win’ for Volvo: Video

April 1, 2010

April 1 (Bloomberg) — Doug Speck, chief executive officer of Volvo Cars North America LLC, talks with Bloomberg’s Mark Crumpton about the outlook for the Volvo brand. Zhejiang Geely Holding Group Co., agreed to buy Volvo from Ford Motor Co. for $1.8 billion on March 28. The Chinese automaker aims to boost profit by offering more expensive models at home and selling 50 percent of its cars overseas by 2015. (Source: Bloomberg)

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McCormack Promoted to Senior Vice President of Products for QinetiQ North America Technology Solutions Group

April 1, 2010

MCLEAN, VA–(Marketwire – April 1, 2010) – QinetiQ North America announced today that Michael McCormack has been promoted to Senior Vice President of Products and Manufacturing for the Technology Solutions Group (TSG). His appointment takes effect on April 1, and he will report directly to Dr. J.D. Crouch, TSG group president.

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JWT Restructures North American Management

March 24, 2010

David Eastman Named CEO, JWT North America, While Rosemarie Ryan and Ty Montague Exit to Pursue New Ventures

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Toyota Says It’s Upgrading Software That Records Data Following Accidents

March 12, 2010

By Jeff Plungis March 13 (Bloomberg) — Toyota Motor Corp. said it is upgrading software that helps read information from devices used to record vehicle crash data, according to a statement on the automaker’s Web site. Toyota, the world’s biggest automaker, has recalled about 8 million vehicles to repair defects that may cause unintended acceleration. Its handling of the recalls, and the government’s response, have been the subject of hearings by three committees in Congress. Media reports have “mischaracterized how Toyota uses and discloses information” from recorders in its Toyota and Lexus vehicles, the company said in the statement . Toyota has always made all data recorded available to the National Highway Traffic Safety Administration, law enforcement officials and courts “when requested or ordered to do so,” the automaker said. The software for the data recorders will be upgraded to be compatible with all vehicles, Toyota said in the statement. The Toyota City, Japan-based company delivered a specialized computer used to read crash data to U.S. regulators on March 3, and three more will be delivered in April, the company said. Toyota will also provide 150 computers to read the “event data recorders” throughout North America by the end of April, the statement said. “Once the additional read-out units are available and appropriate procedures are in place, Toyota will provide vehicle owners with access to EDR data from their vehicles upon request,” Toyota said. To contact the reporter on this story: Jeff Plungis in Washington at jplungis@bloomberg.net .

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GM Names Carlisle U.S. Sales Chief as Docherty Holds On to Marketing Role

March 2, 2010

By Mike Ramsey and David Welch March 2 (Bloomberg) — General Motors Co. reorganized its North America sales operations in the second such shake-up since December, including the naming of a new U.S. sales chief. Steve Carlisle was appointed vice president of U.S. sales operations, including overseeing the dealer network, the Detroit-based company said today in a statement. Susan Docherty , who had been vice president for sales, service and marketing, keeps only the latter responsibility. Chairman Ed Whitacre , who replaced Fritz Henderson as chief executive officer in December, has been shuffling managers to gain market share and post a profit this year. Whitacre had named Docherty to her previous post on Dec. 4, which he also promoted Mark Reuss to president for North America. “It’s become extremely clear to me since taking this role that there is a better way to structure this organization,” Reuss said in today’s statement. “The premise of the structure is simple — a clearer marketing focus to sell more vehicles, and freeing our sales and service experts to focus on customers and dealers.” Each of the four brands GM is keeping in the U.S. — Chevrolet, Cadillac, Buick and GMC — gets separate vice presidents for marketing and for sales and service. Bryan Nesbitt , who has been Cadillac general manager, is returning to the design team, GM said. The changes show Whitacre wants improvement faster than GM has been able to execute, Dan Gorrell , principal of consultant AutoStratagem, said before details of the appointments were announced. ‘Take Time’ “It seems that they are expecting miracles and for the situation to reverse itself immediately,” Gorrell said in a telephone interview from Tustin, California. “It will just take time for people to forget bankruptcy and the government bailout.” GM’s board was reconstituted with Whitacre as chairman when the biggest U.S. automaker emerged from a government-backed bankruptcy on July 10. Whitacre, 68, took over as CEO on an interim basis in December and said in January that he would keep the job permanently. GM’s U.S. sales of cars and trucks rose 12 percent in February, trailing the 20 percent average of 5 analysts’ estimates compiled by Bloomberg. To contact the reporters responsible for this story: Mike Ramsey in Southfield, Michigan, at mramsey6@bloomberg.net ; David Welch in Southfield, Michigan, at dwelch12@bloomberg.net

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GM recalls 1.3m cars in North America

March 2, 2010

GM recalls 1.3m cars in North America

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Atlas Copco Chief Leten Pushes China Growth as Mining Gear Leads Recovery

March 1, 2010

By Ola Kinnander and Kim McLaughlin March 2 (Bloomberg) — Atlas Copco AB , the Swedish compressor maker that has cut 6,000 jobs since mid-2008, said it may add factories in emerging markets as mining investment resumes and Chinese demand grows. The company has about 70 factories, including 11 in China , and that tally may rise to as many as 100 in two years, Chief Executive Officer Ronnie Leten said in an interview. “If you want to be competitive in India, China, you have to be there, produce there, design there and develop markets there,” said the 53-year-old Belgian. Leten said his outlook aims to show that “we have no problem investing when growth comes,” and that the number of added sites isn’t essential. Atlas Copco is transferring construction and mining division head Bjoern Rosengren to Shanghai to defend its leading share of the Chinese market from expanding local rivals . A recovery in North America and Europe has yet to take hold, and business in the regions remains disappointing, Leten said. By contrast, India, Brazil, Indonesia and southern Africa are growing, and Leten said management is analyzing plans for the Middle East, as markets such as Beirut are “suddenly up again.” Higher prices for iron ore, copper and platinum mean mining companies are more bullish, spurring spending on equipment like rock drills and blast-hole rigs, he said. The Stockholm-based supplier of compressors that drive pneumatic drills has cut jobs in Sweden, Germany, France and the U.S. as orders plunged in the financial crisis. Atlas aims to save 2 billion kronor ($277 million) annually from the measures. Leten became only the second foreigner to run the company nine months ago. Chinese Competition Leten’s strategy mirrors that of Joe Hogan , the CEO of Swiss power-grid builder ABB Ltd., who outlined a growth strategy built on emerging market expansion. Europe and the U.S. may need more time to emerge from the steepest economic slump in half a century, he said in an interview Feb. 23. Atlas Copco’s orders in the fourth quarter fell 9 percent as a drop in North America offset growth in Asia and Latin America, which now account for 21 percent and 12 percent of sales, respectively. The company had the equivalent of $1.7 billion in cash last year, compared with $5.46 billion in cash a year earlier, according to data compiled by Bloomberg. Capital spending fell by almost half to about $226 million, the data shows. China, where 4,000 of Atlas Copco’s workforce of almost 30,000 are based, remains a prime focus. The nation overtook the U.S. last year as the company’s biggest market , generating just above 10 percent of revenue, spokesman Daniel Frykholm said. Rosengren’s transfer will accelerate decision making at a time when Chinese companies are seeking to advance their share of the market. “Our main task is making sure these guys aren’t becoming too big in their home market,” Leten said. “If we want to remain the market leader in the world we have to be number one in China.” To contact the reporter on this story: Ola Kinnander in Stockholm at okinnander@bloomberg.net

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