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News in brief-Company

CNC report from Beijing
Added On April 11, 2013

Now let's focus on the latest company news.

UP TO  2.92 MN JAPAN-BRAND VEHICLES IN RECALL

A Japanese government official says Toyot, Honda and Nissan are recalling more than 2 million vehicles globally for an identical problem with air bags.
 
No injuries have been reported related to the problem.  

The recall for air bags made by Japan's Takata Corp. affects other automakers, including non-Japanese manufacturers, Takata spokesman announced Thursday.  

The recall extends to Latin America, China, other Asian nations, the Middle East and Africa. 

According to Honda spokeswoman, the problem is caused by two human errors during production.

A worker forgot to turn on the switch for a system weeding out defective products and parts were improperly stored, which exposed them to humidity.

MOTOROLA LAYOFFS AHEAD OF TRANSFER

More than 200  workers of Motorola Mobility's manufacturing operations in Tianjin, one of the corporation's largest manufacturing base in the world,gathered on Wednesday to demand higher compensation for possible layoffs ahead of a forthcoming transfer.

In December last year, Google-owned Motorola Mobility announced its plan to transfer its operations in Tianjin, China, and Jaguariuna, Brazil to Singapore-based Flextronics.

The transfer of the Tianjin plant, including employees and assets, has been approved by the Ministry of Commerce, and is expected next Wednesday.

Those who are willing to stay will sign new contracts with Flextronics, while those who prefer to leave after the transaction will be compensated.

That's according to the company.

Motorola Mobility is in discussions with the employees hoping to get disputes solved soon and smoothly.

BIRD FLU HITS KFC'S SALES IN CHINA

KFC parent Yum Brands Inc says a new bird flu outbreak in China has dented its restaurant sales this month.

The bird flu outbreak has already sickened 33 and killed nine in China.

Yum reaps more than half its overall sales in China, where most of its nearly 5,300 restaurants are KFCs.

The company was already struggling in China after chemical residue was found in a small portion of its suppliers' chickens late last year.

Yum  recorded a 16 percent drop in sales revenue at KFC and a 4 percent rise at Pizza Hut in March. The company's shares fell more than 2 percent  following  the outbreak of the avian flu.

GM TO INVEST IN OPEL

General Motors' top executives have reaffirmed their commitment to Opel, the U.S. auto group's lossmaking European subsidiary, promising to invest another 4 billion euros (5.2 billion U.S. dollars) in the company.

GM declared at a news conference Wednesday that GM was fully supportive of the Opel turnaround plan.

GM had approved the investment of 4 billion euros in Europe by 2016 but did not announce any new plant closures or other specific measures to improve earnings.

GM had tried to sell Opel in 2009 as the U.S. car giant headed into bankruptcy restructuring  but it later decided to keep it.

Opel is plagued by fierce competition and weak pricing power in a crowded market for less expensive cars in Europe. 

Opel plans to introduce 23 new models and 13 new engines through 2016 and develop a small car platform with French partner PSA Peugeot Citroen.

USPS KEEPS SATURDAY DELIVERY

The U.S. Postal Service says people can still receive mail on Saturdays as Congress has denied its proposal to eliminate Saturday mail delivery.

The USPS is a government agency not supported by tax dollars.

It's been struggling financially in recent years and reported a loss of nearly 16 billion in 2012.

It planned to end Saturday mail delivery in August, saying this will help it save two billion dollars a year.

This is not the first time Congress barred its plan to cut costs.

The Senate passed a bill in April last year, trying to resolve the postal crisis, but the law has since stalled in the House.