DaimlerChrysler to take stake in Fuso

DaimlerChrysler to take stake in Fuso

TOKYO: DaimlerChrysler is expected to pay US$700 million for a 43 percent stake in Fuso, the truck arm of its Japanese partner Mitsubishi Motors Corp., a news report said Friday.

The pair would announce the deal later in the day, the Financial Times said.

"Unlike with passenger cars, where we have agreed to keep our different projects at arm's length, we will outline a 10-year product plan where we will bring together all the group's truck resources," the newspaper cited a person familiar with the talks as saying.

A Mitsubishi Motors spokesman said negotiations with the German-U.S. automaker were in their final stages and an announcement would be made once they concluded, possibly later in the day. --AFP

Mitsubishi to develop Japan's first passenger jet

TOKYO: Major Japanese heavy machinery firm Mitsubishi Heavy Industries Ltd. plans to develop the first Japanese-made passenger jet and market it in Japan and North America, a news report said Friday.

"The company will develop a small passenger jet seating around 30 passengers and aim to complete a prototype by 2007. The total development cost is estimated at about 50 billion yen (US$413.2 million)," the Nihon Keizai Shimbun said without citing sources.

Mitsubishi Heavy sees demand for jets designed for short- distance travel, mainly in the North American market, the newspaper said.

The company plans to enter the market with the help of its partners Canadian firm Bombardier Aerospace and U.S. giant Boeing Co., it said. --AFP

Honda to recall 180,000 vehicles in Japan, United States, Europe

TOKYO: Honda Motor Co. will recall 160,131 vehicles in Japan and 21,395 motorcycles in the United States and Europe because of defects, the company said Friday.

Certain models of the Silverwing motorcycle manufactured between October 2001 and August 2002 have defective rear wheel spokes that could fracture if the bike repeatedly hits potholes, the company said in a release.

The recall affects 2,509 Silverwings sold in the United States and 600 in the United Kingdom, said Honda spokeswoman Yuriko Yabe. The remainder were sold throughout Europe.

Being recalled in Japan are seven models of cars - including the Accord Inspire, Inspire, Vigor, Saber, Ascot, and Rafaga - and a truck, the Capa, because of defective start motors. Domestically sold Silverwing motorcycles will be also be taken back.

Honda anticipates the total costs of the recall at 1.9 billion yen (US$15.70 million), but no earnings estimate downgrades are planned, Yabe said. --AP

WorldCom to reveal $2 b more in bogus accounting

CLINTON, Mississippi: The WorldCom Inc. accounting scandal could soon reach US$ 9 billion. The bankrupt telecommunications company is preparing to revise its past financial results yet again, this time by $2 billion, The Wall Street Journal reported Thursday, quoting unidentified sources.

WorldCom officials were expected to disclose the new findings in a filing with the Securities and Exchange Commission on Friday, the Journal said.

WorldCom spokeswoman Julie Moore would not comment.

WorldCom, which owns the No. 2 U.S. long distance carrier MCI, filed for Chapter 11 bankruptcy protection July 21 after the company reported $3.8 billion in bogus accounting. That figure was later revised to $7.1 billion. --AP

Alcatel announces massive job cuts

PARIS: Struggling French telecom equipment maker Alcatel said Friday it will shed 20,000 employees, about a quarter of its workforce, over the next 15 months.

Alcatel said it expects to have around 60,000 employees by the end of 2003. In June of this year, it had 83,000 employees. It expects to have less than 80,000 by year's end, said company spokeswoman Regine Coqueran.

Alcatel said the restructuring is part of efforts to pull the company out of the red in 2003.

Alcatel said it would take 500 million euros (US$490 million) in restructuring charges over the next nine months. The charges will be financed through asset sales, it said. --AP

Nigeria freezes deal with Canadian firm on airport terminal

LAGOS: Nigeria has put a deal with a Canadian firm to construct an airport terminal here on hold following a dispute, the boss of the construction firm said Friday.

Nigerian aviation authorities and Canada's Sanderton Ventures signed a memorandum of understanding last year on the construction of the domestic wing of Murtala Muhammed Airport.

The previous domestic airport terminal was razed by a fire in early 2000.

Under the BOT (build, operate and transfer) accord between the two parties, Sanderton was expected to manage the airport for 10 years during which it would recoup its investment before handing the airport to Nigerian aviation authorities, the managing director of the firm, Ron Lake, said in an interview. -- AFP