ARAB TIMES, SUNDAY, APRIL 10, 2011 BUSINESS 38 Toyota reduces N. America production India’s new Tata chief may be in job 40 years Toyota announced Friday that it will American engine and component tive vice president of Toyota’s North India’s sprawling Tata group says new chairman to lead the auto-to- “takes stock options and departs to suspend production in its North plants will follow the same schedule. America division. “Extraordinary the successor to its chief Ratan tea conglomerate for three to four the Bahamas,” he said. American plants for several days this Future production plans will be deter- efforts are underway to help suppliers Tata, one of the nation’s most pow- decades, holding company Tata In the 140 years of the group’s month because of problems supplying mined at a later date,” the company recover. “We are slowing down to erful businessmen, could be at the Sons director R. Gopalakrishnan history, Tata is only the fifth chair- parts from earthquake-rattled Japan. said in a statement. conserve parts yet maintain produc- helm for up to 40 years, according told reporters in Mumbai, according man, Gopalakrishnan noted. The Japanese automobile manu- Toyota had warned that the slow- tion as much as possible,” he contin- to a report Saturday. to the Indian Express. “The next The group had said the appoint- facturer said production will be sus- down was “inevitable” after damaged ued in the statement. India’s Tata Group announced leadership is not for five years, but ment was expected to be made by pended April 15, 18, 21, 22, and 25. caused by the March 11 earthquake Toyota will continue to provide last August it would seek a succes- he (Tata’s successor) will be there March but after that deadline An exception is the plant in and tsunami. employment for its 25,000 North sor to replace 73-year-old Tata as for 30 to 40 years,” Gopalakrishnan passed, a member of the Tata Sons’ Georgetown, Kentucky, which will still “The situation in Japan affects American workers during the non- head of the country’s oldest and was quoted as saying on Friday. board, R.K. Krishna Kumar, said the build vehicles on April 21. many automakers and many other production days, the statement said. most famous conglomerate. The group does not want a per- group would likely name a succes- “Most of the company’s North industries,” Steve St Angelo, execu- (AFP) The $75-billion group wants the son who comes in for just five years sor by the end of May. (AFP) Govt not to keep plants open for longer German nuclear companies halt environmental payments BERLIN, April 9, (AFP): Four According to Der Spiegel, energy Vattenfall Europe, subsidiary of energy companies that run German firm EnBW has also stopped pay- the Swedish group by the same nuclear plants said Saturday they have stopped payments to an envi- ment. The government reversed its Vermont to fight effort to keep N-plant open name. The government communica- ronment fund after the government decision after the Japan nuclear BRATTLEBORO, Vermont, April 9, owner Entergy Nuclear ignores the “We are prepared for any eventuality.” tions service said it took note of the went back on its decision to extend accident last month, imposing a (AP): Vermont is preparing for a legal state’s refusal to authorize it to operate When Entergy bought the plant in companies’ decision and did not the plants’ life. three-month moratorium on the battle if the owner of the Vermont after 2012 when its current license 2002, it agreed to abide by the Vermont exclude a renegotiation of its agree- Yankee nuclear power plant tries to expires, even though the Nuclear Public Service Board’s decision on EON, RWE and Vattenfall told prolongation plans, and closing the keep it running after its license expires, Regulatory Commissioner has extend- whether it would issue a certificate of ment with them. AFP they stopped their payments, seven oldest nuclear plants. state Attorney General William Sorrell ed the plant’s license for 20 years. public good to extend its operation “The government is currently starting this month, to the fund cre- “We have decided to stop pay- said. “We are not going to sit on our hands beyond 2012. And in 2006 the examining the financial conse- Sorrell said he and his staff are and let Vermont law be ignored,” Sorrell Legislature gave itself the power to for- ated in January as compensation ing,” at least for the duration of preparing their legal strategy if plant told the Brattleboro Reformer newspaper. bid the PSB from issuing the certificate. quences of the moratorium,” a for the government’s decision last the government moratorium, spokeswoman said, adding that year to prolong the life of 17 EON spokesman Josef Nelles told once clarity has been obtained, it nuclear plants by more than a AFP. were supposed to contribute 300 fund for this year, he said. start with the April contribution,” “may lead to a modification of the decade, until the mid-2030s. The four companies together million euros ($430 million) to the “We will stop paying; this will added a spokeswoman for accord with the energy groups.” Portugal appeals for interim debt deal Japanese ‘lobby group’ urges EU finmins defend austerity measures GODOLLO, Hungary, April 9, sands more job losses across the con- tax breaks for quake-hit zone (Agencies): European finance minis- tinent. ters meeting Saturday defended the Holding boards reading “No aus- Stalled chip sector to cost $470 bln painful austerity measures being terity”, marchers from 22 countries imposed in the region as necessary to demanded more “social Europe, fair defeat a crippling debt crisis. But tens pay and jobs” and bashed bankers TOKYO, April 9, (AFP): Japan should set up a special eco- industries such as the manufacture of automobile parts were to maintain their global dom- nomic zone in areas worst hit by the March 11 disaster, a lead- inance. of thousands of people protested along with European leaders. nearby to condemn what they called Particularly under attack were He cited the huge damage done to the economy of Kobe, a Japanese port city, after a German Chancellor Angela Merkel ing business group said, as new research indicated more than major earthquake in 1995. unfair and risky sacrifices imposed on workers instead of the bankers and French President Nicholas 80,000 jobs would be lost over the next six years. Local authorities asked for Kobe to be designated a special economic zone after the dis- who caused the problems. Sarkozy, who were shown whipping Parts of the northeast were left devastated by the 9.0-magnitude earthquake, the aster, but were turned down and the city’s slow recovery allowed Busan in South Korea to About 50,000 people took part in workers on the ground. worst ever recorded in Japan, and tsunami, while fears over radiation leaks from overtake it as a trading port. the peaceful demonstration in The trade unions harshly criticised a nuclear plant have damaged the farming and fishing industries. Japan’s biggest companies are still trying to gauge the full impact of the March 11 dis- Budepest, which was called by many the European Union’s push for more The chairman of Nippon Keidanren, an influential lobby group, said Japan should asters, which have left nearly 28,000 dead or missing. European unions about 30 kilometers harmonised economic policies, fear- exempt residents from income and property taxes for three years to encourage recon- The damage crippled supply chains and led to power outages that have forced the likes (20 miles) from where the EU minis- ing wages would be sacrificed for the struction and help the local economy get back on its feet. of Toyota, Honda and Sony to shut plants. ters met. Many of the protesters com- sake of competitiveness. Hiromasa Yonekura told Kyodo news agency rapid reconstruction was crucial if key Output overseas has also been compromised, with a shortage of key components send- plained about what they called unfair The demonstration was called to restrictions on their salaries and pen- Budapest by the ETUC to coincide ing shockwaves through global markets. sions. with an informal meeting of the EU’s On Friday, a leading research institute In Godollo, the town where the finance ministers, held about 30 kilo- forecast that the disaster would eliminate ministers met, Spanish Finance metres (20 miles) from the capital. 81,500 jobs in the three hardest-hit prefec- Minister Elena Salgado said budget “The ministers are locked into this tures over the next six years. cuts “are necessary because we need orthodoxy that there got to be suffer- Employment at businesses in the coastal to grow and grow better and reduce ing before everybody can have some areas of Miyagi, Iwate and Fukushima pre- our deficit to be able to continue pay- growth. I think this is completely fectures will fall to 691,800 workers from ing for the state of well-being.” wrong,” Monks told AFP before the the pre-disaster figure of 773,300, accord- In recent months, Spain’s Socialist march. ing to the Nomura Research Institute. government has launched new auster- Portugal’s president pleaded for The study found jobs in the manufactur- ity measures to get a grip on the mercy from the EU and IMF ing, wholesale and retail industries would country’s large budget deficit. He Saturday after they set tough condi- be worst affected, but it did not take into said even though unemployment tions for an 80-billion-euro ($115 bil- account the impact on the fishing and farm- remains at around 20 percent — the lion) bailout weeks ahead of snap ing sectors, meaning the final figure could highest in the EU — the cuts appear general elections. be much higher. to have succeeded — at least for the Anibal Cavaco Silva said that with Prime Minister Naoto Kan is to set up a moment — in re-establishing some new elections due on June 5 “what special task force for reconstruction fol- market confidence in the Spanish we need now is an interim pro- lowing the disaster, the cost of which is economy. gramme so that the next government estimated at 16-25 trillion yen ($190-$300 “While we understand their posi- can take part in the final negotiations, billion) over the next three fiscal years. tion perfectly, we would like them to because it is the next government that Many see Japan sliding into recession as understand ours too,” Salgado said of will implement” the deal that a result of the impact of the disasters. The the protesters. emerges. central bank’s Tankan survey on Monday “It’s understandable (and) we showed Japanese business confidence in Pensions the outlook for the next three months had need, let’s say, a little imagination on Salgado’s counterparts also tried to the part of European institutions to plunged. convince voters concerned over their pensions and job security that new come up with a suitable interim pro- Also: gramme,” he added. measures to improve the competitive- Socialist Prime Minister Jose TOKYO: The cost to the global economy ness — and fiscal sustainability — of Socrates asked for the bailout after of Japan’s stalled computer chip industry their economies did not constitute an parliament last month rejected auster- remaining shuttered into May could be attack on Europe’s social model. ity measures proposed by his minori- almost half a trillion dollars, a report said “The people have to understand ty government, prompting his resig- Saturday. Manufacturers across Japan have that we’re not saving to upset them, nation. closed down production lines or cut back but we are saving so that we can A protester holds up a placard during a trade union demonstration in Budapest on April 9. While EU finance ministers on their output because of direct damage or finance investments into social poli- Loan supply chain problems caused by the earth- Saturday met in Godollo, Hungary to defend harsh austerity measures as a necessary means to defeat the current debt cies in the future,” Luxembourg Lisbon had earlier raised the possi- crisis, thousands of trade union members marched in the main city to protest against those same austerity measures. (AP) quake and tsunami that struck the northeast Finance Minister Luc Frieden said. bility of an emergency loan, but the on March 11. Swedish Finance Minister Anders European Commission turned it The Nikkei newspaper, citing a govern- down, saying such an arrangement Borg said he didn’t see a need for the demonstration. “It is quite clear that was not possible under European Economy, tourism figure in Brazil-Greece talks ment estimate, said the knock-on impact on the global economy — caused by stalled the European social model is being rules for aiding member countries in production in companies that use Japanese- difficulty. safeguarded,” he told reporters. But union leaders said workers already have been burdened exces- “All parties have already admitted that the next government must be Brazil’s Rousseff to seek more concessions made parts as well as in related industries — could be 40 trillion yen ($470 billion). Renesas Electronics Corp., the largest sively and it is time that bankers take able to count on majority support BRASILIA, April 9, (Agencies): Brazil’s to get tough with the inflow of Chinese Last year Chinese imports, such as maker of microcontrollers, sustained dam- more responsibility for the financial from parliament,” Cavaco Silva said, President Dilma Rousseff faces her most goods, stepping up import barriers and machinery and steel, grew a staggering 61 age to its plant in Ibaraki prefecture in the woes across the continent, which speaking on the sidelines of a meet- challenging foreign policy test yet when making plans to adopt tougher quality percent. Nearly half of Brazil’s manufac- 9.0 magnitude quake. have led to bailouts for Ireland and ing of European Union finance min- she visits China next week in a delicate control measures. turers have lost market share to China at Car manufacturers worldwide could Greece, and one under way in isters near Budapest. balancing act to push for trade and invest- The tone is a marked departure from home. take a 6.5 trillion yen hit if production of Portugal. But his remarks drew a sharp ment concessions without alienating her that of her predecessor, Luiz Inacio Lula “Brazil’s industry prepared itself in the the key auto part does not resume until the “We are expressing ourselves in rebuke from EU officials, with country’s biggest customer. da Silva, who preferred to ignore differ- 1990s to compete with Europe and the end of April, the paper said. different languages, but we share the Finance Commissioner Ollie Rehn For years both countries have benefited ences in hopes of forging a common front United States (not China),” said Antonio One of the world’s leading silicon wafer same feelings and values,” Candido saying he did not want a daily debate from increased trade and closer political with developing countries like China to Barros de Castro, an expert on industrial producers, Shin-Etsu Chemical Co, has a Mendez of Spain’s General Workers with Portuguese leaders, “for the sake ties that helped buttress their international face U.S. and European interests. policy. subsidiary factory in Fukushima prefec- Union told the large crowd, which of Portugal and the sake of Europe.” clout on issues such as global governance. Skepticism of China has been running Business leaders admit Brazil’s huge ture, which was damaged by the disaster. included union members from 22 Everyone involved had to “now But with Brazil’s currency having high in Brazil ahead of the trip, especially tax burden, strong currency and red tape If that factory stays closed for six weeks, European countries. “We want a define a strategy which will ensure swung in the opposite direction of China’s as the local currency has reached its high- erode their international competitiveness. the damage to semiconductor production Europe with more jobs and more there can be a swift, cross-party cheap yuan, complaints by manufacturers est levels since August 2008 — a problem But they say China’s cheap yuan, import worldwide could reach roughly 1.5 trillion social justice.” agreement on a programme of fiscal over a wave of Chinese imports have that is not China’s fault, but has in prac- barriers and contraband tilt the playing yen, the Nikkei said. Meanwhile, European and local adjustment and structural reforms by reached fever pitch. Some Brazilian offi- tice made Chinese imports even cheaper field against them. The hit to flat-panel television produc- trade unions held a massive demon- mid-May,” he said. cials are also worried that China is using compared to Brazilian goods. “The climate has become so bad, it’s tion is estimated at about 400 billion yen. stration in the Hungarian capital Also: their country as little more than a super- “China advances in new sectors and not sustainable anymore. We need shock The impact on related industries, includ- Budapest Saturday to protest austeri- GODOLLO, Hungary: The head of market for commodities such as iron ore, destroys jobs,” Brazil’s business news- treatment,” said Robson Andrade, head of ing the electronic machinery, telecommu- ty measures, on the margins of a Germany’s central bank is urging the and not buying enough value-added paper Valor said on its front page this the industry confederation, CNI. nications, Internet and broadcasting sec- meeting of European finance minis- country’s banks to strengthen their goods. week. Also: tors, could reach about 32 trillion yen, it ters. capital basis ahead of the upcoming As a result, Rousseff is likely to push In a likely preview of what Rousseff is ATHENS, Greece: An official says the said. “We want jobs, growth, our wel- European stress tests. on her trip for a less lopsided trade and to hear in Beijing, China’s ambassador in leaders of Brazil and Greece have dis- investment relationship between Latin Brasilia said that Brazil needs to fix its ❑ ❑ ❑ fare state intact, and we are not going Axel Weber said Saturday banks cussed possible investments in the energy to pay for bankers’ mistakes,” with an insufficient capital base America’s and Asia’s largest economies. problems at home if it wants to export and tourism sectors. Japan’s Sharp Corp has suspended European Trade Union Confederation should transform their silent partici- Deals for investments in sectors from oil more. Prime Minister George Papandreou work at two domestic LCD panel plants (ETUC) leader John Monks said in pations into actual capital to pass the and farming, and Chinese orders for more “You need to make your own efforts to held talks with Brazilian President Dilma because of disruptions to industrial gas front of a crowd organisers estimated tests. planes, appear to be in the works. improve the competitiveness of your Rousseff, who is on a one-day visit to supplies in the aftermath of the March 11 at 45,000. The tests will use tougher stan- “What we want is more reciprocity,” industry and economy,” Qiu Xiaoqi told Greece on her way to China. disaster, a report said Saturday. The tens of thousands of marchers dards to check the banks’ capital. Rodrigo Baena, the presidential reporters recently. Brazil’s trade and for- An aide to Papandreou, who spoke to The company will idle its Kameyama swarmed from everywhere from Silent participations — a kind of non- spokesman, said about the objectives of eign ministers heard a similar message The Associated Press on customary con- plant in southwestern Mie prefecture and Spain to Romania into Budapest, voting holding that is counted as core her five-day visit starting on Tuesday. from high-level Chinese officials on a trip dition of anonymity, says the agenda of its Sakai plant in western Osaka until after which currently holds the rotating capital in Germany — won’t be Rousseff will discuss the under-valued to Beijing last month, a government offi- the talks included the state of Greece’s the Golden Week holiday season in early presidency of the European Union. counted anymore. yuan at the highest level in China but will cial told Reuters. economy, renewable energy sources, May, the Nikkei newspaper said. The trade union-led delegations Silent participations are common seek to avoid direct confrontation, gov- For now, raw materials make up rough- tourism and the 2016 Summer Olympics, No Sharp spokesman was immediately formed a giant and noisy cortege with German public-sector regional ernment officials say. Trade and Industry ly three-quarters of Brazil’s exports to which Rio de Janeiro will host 12 years available to confirm the report. heading down one of the city’s main banks known as Landesbanken — Minister Fernando Pimentel said in China — and nearly 90 percent of after Athens. The report did not specify what kind of drags from Heroes’ Square, sounding several of which were badly hit dur- January that the issue would be a top pri- Chinese investments in Brazil are targeted The aide says Rousseff also thanked gases were involved, but disruptions across sirens over fears of hundreds of thou- ing the financial crisis. ority on Rousseff’s trip but has since at natural resource sectors, according to a Papandreou for Greece’s evacuation of the supply chain have hit manufacturers all avoided public comments on it. study by the Brazil-China Business 150 Brazilian nationals from Libya last over Japan in the wake of last month’s In the meantime, Brazil has taken steps Council. month. quake-tsunami.