Company news in brief
Company news in brief

Company news in brief

Dani Booysen
GM lays off 6 000 workers in Mexico

General Motors Co said Tuesday an ongoing strike by US workers has forced it to halt production at its pickup and transmission plants in Silao, Mexico, temporarily laying off 6 000 workers.

About 48 000 UAW members went on strike on 16 September seeking higher pay, greater job security, a bigger share of the leading US automaker’s profit and protection of their healthcare.

Talks were ongoing on Tuesday. The strike has also forced GM to idle some Canadian workers and many suppliers have been forced to halt operations. – Nampa/Reuters

Nestle sheds skincare brands

Swiss food giant Nestle said yesterday it has finalised the sale of its skincare business to a group led by Swedish private equity firm EQT and the Abu Dhabi Investment Authority.

The purchase price for Nestle Skin Health was 10.2 billion Swiss francs (US$10.2 billion), the group said in a statement.

Nestle had announced in May that it was in talks to divest the business, which is based in Lausanne, employs a workforce of more than 5 000 worldwide and generates annual sales of 2.8 billion francs.

Analysts said the purchase price for a division widely regarded as non-core was higher than expected.

The activities include Galderma, which it acquired fully in 2014 by buying out former joint venture partner, French group L'Oreal.

Nestle chief executive Mark Schneider has embarked on a massive shake-up of the group's portfolio of some 2 000 brands worldwide. – Nampa/AFP

Visa, Mastercard reconsider backing Libra

Visa, Mastercard Inc and other key financial partners may reconsider their involvement in Facebook Inc's cryptocurrency, Libra, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

The financial backers to Libra did not want to attract regulatory scrutiny and declined Facebook's requests to publicly support the project, according to the Journal report.

Policy executives from Libra Association, the cryptocurrency's two dozen backers, have been summoned to a meeting in Washington, D.C., today, the WSJ reported.

Separately, Bloomberg reported that PayPal Holdings Inc and Stripe Inc are also undecided about formally signing onto Libra.

Facebook announced plans to launch the digital currency in June 2020, in partnership with other members of the Libra Association set up by the US tech giant to manage the project. – Nampa/Reuters

Nissan to review Qashqai UK decision

Japan's Nissan will review its decision to make a new Qashqai car in Britain if there is a no-deal Brexit, a source with knowledge of the matter told AFP Tuesday.

The source confirmed speculation over the potential reversal of the sport utility vehicle's production at Britain's biggest car factory in Sunderland, northeast England. Such a move could eventually spark closure of the sprawling site, according to the Financial Times business newspaper.

The carmaker had pledged in October 2016, in the wake of Britain's shock referendum in favour of leaving the European Union, that it would still manufacture the model at the facility.

However, Nissan itself has declined to comment on the media reports on Tuesday.

"While we don't comment on speculative scenarios, our plans for Qashqai production in Sunderland have not changed," the Japanese giant said in a statement. – Nampa/AFP

Thomas Cook France placed in receivership

The French arm of the bankrupt British tour operator Thomas Cook said Tuesday that a commercial court had placed it in receivership, and that "several serious candidates" had already shown interest in buying the company.

Thomas Cook France, which employs 780 people, had already declared insolvency last week in the wake of its parent company's bankruptcy.

It said the court in Nanterre, outside Paris, had set a deadline of 22 October for potential takeover bids, and a new court hearing to examine the offers on 5 November.

Potential buyers included some in the travel tourism sector, it said, while "other potential candidates could also come forward."

The French arm of Thomas Cook owns 172 travel agencies generating annual revenue of 425 million euro (US$464 million), and the bankruptcy initially stranded some 10 000 French clients. – Nampa/AFP

Samsung ends phone production in China

Samsung Electronics Co Ltd has ended mobile telephone production in China, it said yesterday, hurt by intensifying competition from domestic rivals in the world's biggest smartphone market.

The shutdown of Samsung's last China phone factory comes months after it cut production at the plant in the southern city of Huizhou in June and suspended another factory late last year, underscoring gruelling competition in the country.

The South Korean firm's share of the Chinese market shrunk to 1% in the first quarter from around 15% in mid-2013, as it lost out to fast-growing homegrown brands such as Huawei Technologies and Xiaomi Corp, according to market research firm Counterpoint.

Samsung, the world's top smartphone maker, said it made a difficult decision in a bid to boost efficiency.

Samsung declined to specify the plant's capacity and numbers of staff. The company has been expanding smartphone production in lower-cost countries, such as India and Vietnam, in recent years. – Nampa/Reuters

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