AUTOMAKERS
Renault dumping AvtoVAZ
Renault SA plans to sell its majority stake in automaker AvtoVAZ to a Russian science institute, the French company said yesterday, adding that the deal includes a six-year option to buy back the stake. Renault said that its holding of nearly 67.69 percent in AvtoVAZ would be sold to the Russian central research and development automobile and engine institute NAMI. Its 100 percent shares in Renault Russia are to go to the city of Moscow. “Today, we have taken a difficult but necessary decision, and we are making a responsible choice towards our 45,000 employees in Russia,” Renault chief executive officer Luca de Meo said. The move preserves the group’s ability to later return to the country in a different context, he added.
CEMENT MAKERS
Holcim to sell India interests
Holcim Ltd has agreed to sell its Indian operations to local billionaire Gautam Adani, another step in chief executive officer Jan Jenisch’s pivot away from traditional cement. The Swiss company is to sell its 63 percent stake in Mumbai-listed Ambuja Cements Ltd to Adani Group, it said in a statement on Sunday. Adani said that it plans to spend about US$10.5 billion on the stake purchases and open offer consideration for Ambuja and related entities. As part of the deal, Adani is to inherit Ambuja’s controlling stake in another publicly traded cement producer, ACC Ltd, and buy Holcim’s direct 4.5 percent holding in the unit. Holcim expects to receive 6.4 billion Swiss francs (US$6.37 billion) of cash proceeds from the sale, the statement said. “We have quite a list of businesses we would like to acquire, so I think we can put this money here very well to use,” Jenisch said in an interview on Sunday. “At the moment, we’re working on more than 10 deals.”
ENERGY
Aramco profits spike 82%
Saudi Arabian Oil Co (Aramco) on Sunday posted an 82 percent jump in first-quarter profits, buoyed by a global surge in oil prices that has made it the world’s most valuable company. The company’s net income of US$39.5 billion was up from US$21.7 billion from the same period last year, it said in a news release. Its net income for the first quarter was a record for the company since its initial public offering in 2019. Also on Sunday, Aramco announced that it was issuing 20 billion bonus shares to shareholders — one share for every 10 shares already owned. A dividend of US$18.8 billion would be paid in the second quarter, the company said. Aramco is Saudi Arabia’s “crown jewel” and primary source of revenue.
UNITED STATES
Blankfein warns of recession
Goldman Sachs Group Inc senior chairman Lloyd Blankfein urged companies and consumers to prepare for a recession, saying that it is a “very, very high risk.” “If I were running a big company, I would be very prepared for it,” Blankfein said on CBS’ Face the Nation on Sunday. “If I was a consumer, I’d be prepared for it.” A recession is “not baked in the cake” and there is a “narrow path” to avoid it, he said. The Federal Reserve has “very powerful tools” to tamp down inflation and has been “responding well,” he said. Goldman’s economic team now expects the US’ GDP to expand 2.4 percent this year, down from 2.6 percent. It reduced its estimate for next year to 1.6 percent from 2.2 percent.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
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