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A second consecutive year of record heat in the North Atlantic Ocean, along with developing La Nina conditions, is expected to boost hurricane activity in the basin. Will they again [...]

By Joseph Perez | < 1 minute ago TED Talks are a source of inspiration and fascination for many -- and for the third year in a row, ASU students [...]

Japanese and European car manufacturers are now facing the worst effects of the recession, while the industry in the US is beginning to recover. In the US, the market has been boosted by demand for light trucks, and manufacturers are confident about future prospects. In Japan and Europe, considerable restructuring has become necessary, and Japanese manufacturers are reducing costs by measures including cutting down their ranges. All manufacturers must now look at the best ways to improve their competitiveness.

The automotive supplies industry is being forced to reduce its prices by car manufacturers anxious to reduce their costs following losses. Between 50% and 70% of the production costs of a car are due to outside components suppliers. This is highlighted by the court case concerning the defection of Jose Ignacio Lopez de Arriortua from General Motors, where he was responsible for purchasing to Volkswagen of Germany. The former is now prosecuting him for industrial espionage as he is accused of removing documents from General Motors.

The executive car market is changing, particularly due to increased Japanese penetration of the US market. It now has 1/3rd of the market and European executive specialist manufacturers have only 1/5th, although they used to dominate it. German manufacturers are moving their production out of Germany, to reduce their costs by an estimated 30%. German production has become too expensive due to the high value of the Deutsche Mark and high labour costs. Environmental considerations are also changing the market, as efficient diesel engines have become more popular.

Exporters have ceased complaining that the UK government is not doing enough to help them. The initiatives that have been taken include cheaper export credit insurance premiums, more money to insure investments in developing countries, the nomination of 'national champions' and new export prommotion campaigns. One of the new campaigns is North America Now, and aims to increase the UK's share of the US export market to 5% from 3.8%. There are concerns about the selection of national champions, however, that it will eliminate competition between UK companies for foreign contracts.

Adetailed evaluation of Chancellor Norman Lamont's March 1993 budget is presented. Tax increases on domestic power and fuel and car tax are sheduled for April 1994, but there are few changes for 1993 as the Chancellor does not wish to choke off economic recovery. The stamp duty threashold was doubled to 60,000 pounds sterling, the advance corporation tax will be phased out and a programme started for the long-term unemployed.

A survey of 600 companies in the UK has shown that the troubled economic conditions have had no appreciable effect on the financial management of company cars. Around one company in three does not get involved with calculating the runing cost of its cars and only 54% keep detailed records. The UK is, together with Germany, the highest user of business-paid motor cars in pure number terms, and UK company cars form a higher proportion of total sales than those in Germany.

An evaluation of the implications of the European single market, which commenced on Jan 04 1993, is presented. The new European legislation will cover boarder controls, the transfer of goods between member countries and qualifications. It does not cover national elections, routine healthcare or the purchase of property in another member country. US investors in Europe are optimistic about the long-term prospects and the Japanese fail to understand the urge to unify.

The demand for trucks in Europe has fallen in the three years to 1993 and the number of truck producers has fallen to 10 to 25 in 1975. It is expected that the industry will concentrate further as demand is likely to fall further. There are also plans to deregulate the industry in Europe, which will increase competition and narrow profit margins. All European companies are making losses and making redundancies.

An evaluation and the details of the Chancellor Norman Lamont's speech is presented. A full citation of the speech is also included. The speech was in effect a full budget, aimed at stimulating the economy and prommoting growth. Interest rates have been reduced by 1% and the government has maintained its determination to keep public spending low.

The global demand for cars has declined, yet many companies are building new operations which has increased the strain. Even Japanese car manufacturers are reporting losses. In Europe the fluctuations on the currency exchanges has affected the industry as it prepares for the Single Market. The US car industry has put pressure on the government for protectionist measures against Japan, which has responded by promising to buy more components in the US.

Bought in components comprise at least 50% of the cost of a car and it is therefore the area upon which manufacturers concentrate to reduce their costs. Some of the cost-cutting measures General Motors of the US is using include speeding up lean production, instituting global sourcing and using common components between vehicle lines. The expansion of Japanese companies into other countries is also causing problems which countries try to overcome by introducing local content laws.

There are signs that the executive car industry is on its way to recovery, particularly in Japan and the US, yet European firms have not felt the benefit of this and their sales have continued to decline. European companies may soon be exposed to increased competition from Japan, which has been accused of agressive marketing and dumping. Germany in particular is concerned about Japanese competition, as its costs of production are relatively high. In the UK, the Monopolies and Mergers Commission has recently investigated the fact that cars are sold at higher prices there than elsewhere.

An evaluation of Norman Lamont, the UK Chancellor's budget of March 1992 is presented. He has announced that a lower rate of taxation for the lower paid of 20% for the first 2,000 pounds sterling of taxable income will be introduced. Pensioners will have their allowance increased and the tax on new cars has been suspended to try to stimulate the industry. The government claims that the budget defecit will increase in the year 1992 to 1993. Exise duties on tobacco and leaded petrol have also been incresed.

A350 A third long-delayed aircraft would be too embarrassing, writes Kevin Done There can be no more excuses. The lessons have been learnt, Airbus says, from the costly and embarrassing [...]

Air taxis One start-up has failed even to get off the ground, says Kevin Done Many fledgling aviation ventures hatched during the heady days of the bubble economy have failed [...]

VistaJet Kevin Done examines a strategy that has kept the downturn at bay Despite the unfortunate timing of placing one of the biggest single orders for new business jets two [...]

TRAVEL & LEISURE British Airways shares jumped yesterday after it disclosed more resilient monthly traffic volumes than had been expected from the business customers that are its most lucrative market [...]

Carrier suffers first early-summer deficit Walsh sees 'no sign of improvement' British Airways reported its first operating loss for the early summer months, as its lucrative long-haul business passengers cut [...]

Ryanair, the low-cost airline, has completed a financing deal to buy its next 55 aircraft, writes Kevin Done . A syndicate of three banks, BNP Paribas and Calyon of France [...]

travel & leisure British Airways yesterday reported its first operating loss for the early summer months, as its most lucrative long-haul business passengers cut back sharply on travel or traded [...]

Outlook bleak at start of peak travel period Singapore Airlines set for first full-year loss Leading airlines in Europe and Asia reported heavy losses yesterday amid the deepening crisis engulfing [...]

Outlook bleak at start of peak travel period Singapore Airlines set for first full-year loss Leading airlines in Europe and Asia reported heavy losses yesterday amid the deepening crisis engulfing [...]

TRAVEL & LEISURE Haji-Ioannou cedes over group's growth Move ends months of boardroom feuds Sir Stelios Haji-Ioannou, EasyJet founder, board member and largest shareholder, has backed down in his fight [...]

TRAVEL & LEISURE Swing from profit to [euro]216m deficit Lufthansa fell deeply into loss in the first six months of the year, as the worsening recession damped demand in particular [...]

Early French report alleges insider dealing Controversy over Airbus group share sales Seven current and former executives of Airbus and its parent company EADS, including Noel Forgeard, former EADS co-chief [...]

Early French report alleges insider dealing Seven people under fire over share sales Seven current and former executives of Airbus and its parent company EADS, including Noel Forgeard, former EADS [...]

travel & leisure News analysis While other airlines shrink operations the Irish carrier is seizing the initiative, writes Kevin Done Already deep into the recession, Ryanair, the low-cost and low-fare [...]

Ryanair, Europe's largest short-haul airline, is intensifying its price war against rival carriers, and warned that this would hold back its profit rise this year. Its share price fell 9 [...]

Ryanair, Europe's largest short-haul airline, is intensifying its price war against rival carriers, and warned that this would hold back its profit rise this year. Its share price fell 9 [...]

TRAVEL & LEISURE Sharp fall in fuel costs provides fillip Full-year earnings 'to be at lower end' Ryanair, Europe's largest short-haul airline, increased its first-quarter profits strongly thanks to the [...]

Travel & Leisure OpenSkies, British Airways' wholly owned subsidiary, is abandoning its all-business class service between Amsterdam and New York JFK after only nine months. The move leaves the operation [...]

Stansted and Dublin winter flights pared Battle with BAA and departure tax rejoined Ryanair, Europe's biggest low-cost carrier, plans to cut services at London Stansted and Dublin, its two largest [...]

travel & leisure Move to low-charge European airports Ryanair is planning to reduce capacity at London Stansted and Dublin, its two biggest European bases, next winter as it cuts lossmaking [...]

Recourse to bond issue and credit line First-quarter loss of [pounds sterling]100m disclosed British Airways is raising about [pounds sterling]680m in extra cash facilities to help it survive the deepening [...]

TRAVEL & LEISURE Lufthansa is being forced to cut jobs in its main airline division and to defer deliveries of new aircraft as part of emergency measures to mitigate rising [...]

travel & leisure The brinkmanship surrounding the sale of Gatwick, the second-largest UK airport, by Spain's Ferrovial has been intensified by the apparent withdrawal of the last bidder from the [...]

TRAVEL & LEISURE Brinkmanship surrounding the sale of Gatwick, the second-largest UK airport, by Spain's Ferrovial, has intensified amid the apparent withdrawal of the last bidder from the contest. A [...]

Struggling carrier rules out rights issue Recession takes heavy toll on business travel British Airways is being forced to raise fresh capital to shore up its shrinking cash resources. Martin [...]

Conservatives urged to end opposition Project vital for economy, says BCC A leading business lobby group appealed yesterday to the Conservative party to reverse its opposition to the building of [...]

TRAVEL & LEISURE Move comes despite competition fears US authorities have granted extended antitrust immunity to a group of European and US airlines led by Lufthansa and United Airlines, despite [...]

travel & leisure Unite plans show of strength at AGM Battle breaks out into the open British Airways and its shareholders face a stormy annual meeting next week as the [...]

Fernando Conte yesterday resigned as chairman and chief executive of Iberia, pre-empting by at least six months his planned retirement from the Spanish flag-carrier. The surprise move comes amid complex [...]

A third runway at Heathrow should be used to cut the 'excessive' stacking of aircraft over the airport, according to a report published by MPs today. The transport select committee [...]

AEROSPACE & DEFENCE Move to tighten production control Long-range jets two years behind plan Boeing has been forced to take over one of the key suppliers to the 787 Dreamliner, [...]

TRAVEL & LEISURE News analysis Kevin Done reports on the different comparative measures used by companies across the globe Ryanair has a strange obsession with comparing itself with British Airways. [...]

Travel & Leisure News analysis Eye-catching advertising slogans generate more noise than accurate statistics, writes Kevin Done Ryanair has a strange obsession with comparing itself to British Airways. When it [...]

Axe set to fall on 3,700 more jobs Orders for A380 face two-year delay British Airways is launching a fresh round of capacity reductions and job cuts to staunch losses [...]

travel & leisure Virgin Atlantic, the UK long-haul airline controlled by Sir Richard Branson, is cutting capacity by 7 per cent in the coming winter season and is planning to [...]