Thu, Apr 20, 2023 page10

• World Business Quick Take

  • Agencies
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  AUTOMAKERS

  Tesla cuts prices

  Tesla Inc has cut the price of several of its models again in a further sign that chief executive officer Elon Musk is willing to sacrifice the automaker’s profitability in the face of rising interest rates that might dent consumer demand. The Austin, Texas-based company said on its Web site that the price of its Model Y long-range all-wheel drive model would decrease by 5.6 percent to US$49,990, while the price of the Model Y Performance would drop by 5.2 percent to US$53,990. The cost of a Model 3 rear-wheel drive would be cut by 4.7 percent to US$39,990. It is the second price cut this month as the automaker seeks to stoke demand.

  AUTOMAKERS

  Sales in Europe jump

  Auto sales in Europe jumped the most since May 2021 as supply of key components including semiconductors continues to improve. Registrations of new vehicles jumped 26 percent last month to 1.42 million, the European Automobile Manufacturers’ Association said yesterday, extending the industry’s growth streak to eight consecutive months. Automakers are benefiting from orders accumulated during the worst of their supply crises and a weak showing in the same month last year. Last month’s gains were especially pronounced in Spain and Italy, where sales expanded 66 percent and 41 percent respectively. In Germany, the region’s largest market, registrations increased 17 percent. Volkswagen AG and Renault SA led gains among major European automakers with respective increases of 35 percent and 27 percent.

  BEVERAGES

  Heineken gets a boost

  Heineken NV’s first quarter was boosted by beer drinkers in Europe even as inflation persists in many key markets, which helped offset a weaker performance in the Asia-Pacific region and Nigeria. Shares in the world’s second-largest brewer rose nearly 4 percent in early trading yesterday after it said that consumers in Europe were still largely accepting higher prices for its beers, which include its namesake brand and more premium offerings such as Birra Moretti, Beavertown and El Aguila. Overall volumes fell 3 percent on an organic basis for the quarter ended last month, below the average analyst estimate for a 1.04 percent decline. Vietnam and Nigeria had tough quarters, but investors were expecting that. Heineken stuck to its outlook for adjusted operating profit to grow organically by mid to high-single digits this year even as chief executive officer Dolf van den Brink warned of cloudy consumer demand for its products.

  TECHNOLOGY

  El Salvador passes AI bill

  Lawmakers from the ruling party in El Savador on Tuesday approved a bill to eliminate for 15 years taxes on companies developing artificial intelligence (AI) and other computer programming work in a bid to make the country a more attractive tech destination. The technology tax cut was championed by Salvadoran President Nayib Bukele, who first touted the legislation late last month. The bill exempts eligible companies from income tax, capital gains and local government taxes, as well as tariff payments on imported goods that technology businesses need. Lawmakers approved the bill with 69 voting in favor among the 84-member unicameral legislature. Bukele’s Nuevas Ideas party holds 56 of the seats.
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