Page 25 - atoday sept 30
P. 25
BUSINESS A25
Wednesday 30 September
VW details brands affected by scandal; fix due in Oct
BERLIN (AP) — Volkswa- diesel car emissions tests measures” to fix the prob- lis, a spokesman for the gen has said there are “dis-
gen’s commercial vehicles in the U.S., where authori- lem in October. Not all commercial vehicles unit crepancies.”
and cars from its Spanish ties say there are 482,000 of the 11 million vehicles, — which makes vans and SEAT said the cars were
unit SEAT are among the 11 such cars. The company however, would have had pickups — on Tuesday con- sold worldwide and it was
million fitted with a diesel says that up to 11 million the software activated, firmed that 1.8 million of its seeking to determine how
engine that can cheat on vehicles worldwide were according to new CEO vehicles were affected. He many were sold in each
emissions tests, the com- fitted with the engine in Matthias Mueller. didn’t give further details. market.
pany said Tuesday. question. Details have emerged Spanish subsidiary SEAT Also fitted with the suspect
Volkswagen AG has ad- The company said it would gradually of how many said it fitted 700,000 vehi- software were 5 million VW
mitted using a piece of en- present authorities with its were made by which VW cles with the EA 189 diesel brand cars, 2.1 million Audis
gine software to cheat on “technical solutions and division. Guenther Schere- engines in which Volkswa- and 1.2 million Skodas.q
Glencore insists no solvency issues, shares spike higher
PAN PYLAS and commodities com-
Associated Press
LONDON (AP) — Com- panies sought to take ad-
modities group Glencore
insisted Tuesday it’s not vantage of the country’s
facing solvency issues, a
day after its shares fell by booming growth at the
nearly a third amid con-
cerns over its ability to turn of the decade, when
service sky-high debts at
a time when many com- many of the world’s lead-
modity prices are at multi-
year lows. ing economies were strug-
Its defense helped the
company’s stock recover gling to emerge from the
17 percent to close at 80
pence. That means it has global financial crisis and
recouped around a half
of the losses suffered Mon- ensuing recession.
day, when Investec Securi-
ties warned that the com- Glencore said it remains
pany faces acute financial
difficulties in light of a slide “confident the medium
in commodity prices.
Responding to Investec’s and long-term fundamen-
analysis that the company
could end up “solely work- tals of the commodities
ing to repay debt obliga-
tions” if commodity prices we produce and market
don’t recover, Glencore
said it has taken “proac- remain strong into the fu-
tive steps” to be able to
withstand the weak com- ture.”
modity market and that
the business as a whole is Citi’s analysts said Glen-
“operationally and finan-
cially robust.” core’s management
“We have positive cash
flow, good liquidity and should consider taking
the company private “in
The Glencore headquarters in Baar, Switzerland is seen. Glencore insisted Tuesday it’s not facing the event the equity mar-
solvency issues, a day after its shares fell by nearly a third amid concerns over its ability to
service sky-high debts at a time when many commodity prices are at multi-year lows. ket continues to express
(AP Photo/Keystone/Urs Flueeler) its unwillingness to value
the business fairly.” Do-
absolutely no solvency shares with new and exist- which also included the ing so, they added, would
issues,” it said in a state- ing shareholders. They said suspension of dividend
ment. “Glencore has no the fall in Glencore’s share payments, to reduce debt allow the management
debt covenants and con- price — about 80 percent by up to $10.2 billion.
tinues to retain strong lines from its high in May to this Even if its debt reduction to undertake restructur-
of credit and secure ac- week’s low — has been plan plays out as expect-
cess to funding thanks to overdone and suggested ed, Glencore will be left ing measures “easily and
long term relationships we the company could raise with a debt mountain of
have with the banks.” more money from the sale around $20 billion — more quickly” and to prepare
Earlier, Glencore found of investments than the $2 than its current market val-
support from analysts at billion it has penciled in. ue of around $16 billion. for an eventual float of the
Citigroup, which recently The sales were part of a China’s economic down-
helped the company raise suite of measures Glencore turn is at the heart of Glen- industrial business.
cash through a placing of announced this month, core’s difficulties. Mining
Sentiment toward Glen-
core PLC, which is based
in Switzerland but listed in
London, has been fragile
for months as investors wor-
ried over the impact of fall-
ing commodity prices.q
Amazon tests Uber-like service for package deliveries
MAE ANDERSON move comes before the check and motor vehicle alty program. The service roll out to more.
Associated Press bustlingly busy November records review. delivers a wide range of On its website, Amazon
NEW YORK (AP) — Amazon and December holiday People in Seattle can sign items including paper said currently it’s only of-
is testing an Uber-like ser- shopping period. up now. The program is towels, wine and beer (in fering the program to
vice for delivering its one- And it comes as startup expected to roll out to Seattle only), chilled and drivers, but in the future it
hour Prime Now packages on-demand delivery ser- New York City’s Manhat- frozen items like milk and might let people bike or
that will enlist people to vices such as Postmates tan, Baltimore, Miami, ice cream and televisions walk the packages to their
deliver packages for Am- and Shyp proliferate. Ride- Dallas, Austin, Chicago, and Kindle device in one destination.
azon with their own cars. sharing service Uber itself Indianapolis, Atlanta, and or two hours. Two-hour de- Shares of Amazon.com
In order to offer the has been rolling out a food Portland. livery is free and one-hour Inc. fell $11.41, or 2.3 per-
speedy deliveries Amazon delivery service UberEats. Amazon has been ex- delivery is available for cent, to $492.65 in after-
will pay drivers $18- to $25- Drivers have to be at least panding its Prime Now $7.99. It now offers Prime noon trading. Its shares
an hour via its new Ama- 21 years old and pass service for members of Now in 11 cities with across are up 53 percent from a
zon Flex program. The a criminal background its $99 annual Prime loy- the country with plans to year ago.q
