Business update: Mercedes invests

Discussion in 'Growing and Managing a Business' started by irahat, Nov 1, 2009.

  1. irahat

    irahat
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    The German vehicle manufacturing giant, Mercedes, is embarking on a rare foreign direct investment project in Hungary. The digging's already started for a new car plant 80 kilometres east of Budapest. The venture will create 2 and a half thousand jobs. Daimler AG secured the contract to build the plant despite FDI projects slowing to a trickle during the economic crisis - likely because of its relations with German investors as well as a cut in local tax.

    Farmers in the Czech Republic have been spoiling hundreds of thousands of litres of milk in protest at the low prices they're getting for their product. They receive below six crown (20 euro cents) for a litre, but they say a fair price would be at least double that. The chairman of the agriculture chamber has warned that around 40,000 jobs could be lost in the next two years if the situation is not improved.

    Shares in the Paris-based French American telecoms equipment company, Alcatel-Lucent, sank 4.7 percent - the biggest lag on the FTSE Eurofirst 300. The 2006 merger was supposed to give it bigger scale to compete with rivals Ericsson, and low-cost Chinese manufacturers, but is yet to turn a net profit since the third quarter of 2006.

    The Chief Executive of Austria's Erste Bank says the worst of the financial crisis may now be over for banks in emerging Europe after it beat third quarter earnings forecasts. Andreas Treichl, whose bank is the third biggest lender in Eastern Europe - said that, although he didn't believe the crisis was over, the slowing growth rate of non-performing loans gave encouraging signs.

    Eurozone unemployment rates continue to rise. They hit a new 10 year high in September, and those hardest hit continued to struggle. Figures for the jobless in Spain have risen to 19.3 percent versus the previous figure of 18.8 percent in August.

    In the markets - modest falls on the main European indices. In afternoon trading, Germany's DAX shed 0.8 percent. Britain's FTSE 100 stayed flat and the French CAC slipped 0.6 percent.
     
  2. seanstevens

    seanstevens
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    If you know the area, you know they need it. Opel had a large plant not far away across the boarder in Slovakia and cut backs there were tough on the region. There has always been a good link between Budapest and Germany with many Germans driving between the two to shop and purchase holiday homes. Having taken the journey many times myself it is clear that the area needs the investment and lets face it, Mercedes will be getting a quality workforce (Hungary has some of the best technical workers in the world) at a very low price.


    ALU are suffering due to its previous poor management. When the merger between Alcatel and Lucent took place there was a lot of unhappiness over the choice of CEO. Since the change in mangement last year things have started to change. The new management has made lots of tough choices in getting rid of some duplications in sites etc. Having worked with ALU for the past 7 years I have always found them to be a decent company and with Ericsson also suffering they are not as far behind as some may think.
     

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