Iconic US brand goes to China

Hummer, the off-road vehicle that once epitomised America's love for
hulking trucks, is now in the hands of a Chinese heavy equipment
maker. General Motors Co. and Sichuan Tengzhong Heavy Industrial
Machinery Corp. finally signed the much-anticipated deal for GM to
sell the brand on Friday. Tengzhong will get an 80 per cent stake
in the company, while Hong Kong investor Suolang Duoji, who
indirectly owns a big stake in Tengzhong through an investment
company, will get 20 per cent. The investors will also get Hummer's
nationwide dealer network. Financial terms were not disclosed,
although a person briefed on the deal said the sale price was around
$150 million. The person did not want to be identified because the
terms were being kept private. GM's bankruptcy filing last summer
said that the brand with military roots could bring in $500 million
or more. Suolang Duoji also is the controlling shareholder and
chairman of Lumena Resources Corp., a Hong Kong listed mining
company. GM and Tengzhong said in a statement that the transaction
still must be approved by the US and Chinese governments. Chinese
regulators initially expressed reservations about Tengzhong's ability
to run such an enterprise. Hummer's current management team will
stay with the new company, which will be headquartered either in
Detroit or suburban Auburn Hills, Mich. James Taylor, the GM
executive who has run Hummer recently, will remain as its chief
executive officer. Taylor said in an interview with The Associated
Press that he knows resurrecting the brand will be difficult, but the
key will be quickly rolling out more fuel-efficient models that get
over 20 mpg. 'I'm not in any kind of denial that we have a very
steep uphill challenge in front of us,' Taylor said. Hummer, he
said, has been in a state ' suspended animation' since June 2008 when
GM announced it would be reviewed for sale or closure. Since then,
its future has been uncertain and it got no marketing support or new
products. Financing for leases, a big part of its luxury market, also
dried up, Taylor said. Still, GM sold 1,000 Hummers in some months,
proving that buyers are out there. 'There's still a loyal customer
base underneath there that loves Hummer,' he said. Hummer hopes to
keep buying fuel-efficient engines and transmissions from GM, but can
seek them elsewhere, Taylor said. He said the brand has been
unfairly tagged as a symbol of the American gas guzzler, saying
other vehicles get worse mileage. He wants to make sure 'at least
we aren't a victim of misinformation that we stand alone as the
ultimate bad guy in the space, which we aren't.' Hummer hit the
streets for civilian use in 1992 while owned by AM General LLC, which
makes Humvees for the US Army, and California Gov. Arnold
Schwarzenegger was among the first customers. The brand, whose
smallest model gets 16 miles per gallon (14.7 liters per 100
kilometers) in combined city and highway driving, sold well until
the middle part of this decade when fuel prices began to rise. Sales
peaked at 71,524 in 2006. But only 8,193 Hummers have been sold in
the US through the first nine months of the year. That's down 64 per
cent from a year earlier. And only 426 Hummers were sold nationwide
last month, according to Autodata Corp. GM, which spent 40 days in
bankruptcy protection during the summer and has received about $50
billion in US government aid, also plans to sell its Saab brand and
scrap Pontiac and Saturn as it tries to streamline its operations.
The Hummer deal is a victory for GM, which saw a similar agreement to
sell the Saturn brand blow up at the last minute. Auto dealership
magnate Roger Penske's bid fell through just before the deal was to
close last week when a contract to make vehicles for Saturn was
rejected by the Renault board. The company wants to focus on four
core brands: Chevrolet, Cadillac, Buick and GMC.

Japan anti-swine flu business suit on sale

A Japanese menswear company has begun selling an 'anti-swine flu'
business suit that it says can reduce the risk of catching the virus.
The wool suit is coated with titanium dioxide, which breaks down
the virus molecules on contact under ultraviolet light, Haruyama
Trading Co. said. The material, which can also reduce odours such
as cigarette smoke, will keep its anti-virus properties even after
being dry cleaned more than 20 times, the company said. It will go
on sale at 272 stores across Japan on Saturday, with a price tag of
52,290 yen (589 dollars), following its launch in Tokyo on Thursday,
said company spokesman Ryugo Yamamoto. The company had initially
aimed to develop a dirt- and odour-resistant suit, 'but laboratory
experiments proved that molecules of viruses were actually dissolved
three hours after they adhered to the fabric,' he said. Japanese
people are known for being extremely hygiene-conscious, with
thousands of people on the street wearing masks when the first
Japanese victims tested positive for swine flu in May. Students
and even adult workers are instructed how to effectively wash their
hands and gargle, while antibacterial goods ranging from men's socks
to a computer mouse are also popular.

Citi to sell oil trading unit

US banking giant Citigroup has agreed to sell its oil trading unit
Phibro LLC to Occidental Petroleum for some 250 million dollars, the
companies said Friday. Citi, which has received massive US
government aid to help it overcome losses in the financial crisis,
said the sale would be at 'net asset value' and that the proceeds
would be 'not material' to earnings. The deal would close in the
fourth quarter pending approvals. 'The decision to sell Phibro was
the outcome of an evaluation of a variety of alternatives and is
consistent with Citi's core strategy of a client- centered business
model,' the bank said. 'The sale of Phibro does not affect Citi's
client- facing commodities business lines, which will continue to
operate and serve the needs of Citi's clients throughout the world.'
Occidental said its net investment would be around 250 million
dollars for Phibro, which is a trader in oil and gas. 'Phibro does
not trade in any exotic derivatives or hold any level three type
assets,' Occidental said. Phibro's management team and its
employees will remain with the company after closing, according to
Occidental It added that 'significant portions of current and
future bonuses will be deferred and retained by Phibro and paid out in
future years.' According to the Wall Street Journal, Citi has been
under pressure to unload the unit because of a 100 million-dollar
annual pay package for Phibro head Andrew Hall.

French investment sought

Leaders of the Federation of Bangladesh Chambers of Commerce and
Industry (FBCCI) invited the French business community to invest,
especially in sectors like information technology, readymade
garments and pharmaceuticals, and joint ventures in the Export
Processing Zones. The FBCCI invitation came at a meeting on Friday
with the Paris Chamber of Commerce and Industry, according to a press
statement. A forty-two member Bangladesh business delegation is now
in France on a four-country trip in west Europe. Roger Bacri, head of
south and south - East Asia desk of the Paris chamber, presided over
the meeting, while Enamul Kabir, ambassador of Bangladesh in France,
business leaders of France and the Bangladesh businessmen working in
France were present. At the meeting, Kamaluddin Ahmed, director of
FBCCI and leader of the delegation, welcomed the French business
community to come forward for investment in Bangladesh. Ahmed
highlighted the opportunities Bangladesh offers to foreign investors
and urged the French businessmen to establish educational and
vocational training institutes in Bangladesh to facilitate jobs for
the unemployed people. The Bangladeshi envoy presented the current
business scenario of Bangladesh and requested the French business
people to come up with investment projects in Bangladesh. Bacri
expressed his interest to work jointly with the business community of
Bangladesh and also emphasised expansion of the bilateral trade. The
FBCCI business delegation visited Germany last week. They will also
visit Switzerland and Italy.

US company launches IP solutions

Digium, a leading manufacturer of Internet Protocol products based on
the open-source Asterisk platform, yesterday launched its IP
telephony solutions for Bangladesh market targeting such service
providers, small and medium enterprises, corporate and financial
sectors. The US-based Digium has an array of IP products and
solutions tailored to meet the needs of different segment of
customers. EMEM System Limited, one of the country's fastest growing
information and communications technology companies, has been
appointed as the sole distributor of Digium in Bangladesh. Rupert
Utteridge, Director, Sales and Marketing, Digital Technique (Asia
Ltd), which distributed the Digium products in Asia region gave a
presentation on various features of the solutions at the launching
programme held at Hotel Sarina in the city. The Digium products
include Switchvox, Asterisk Appliance 50 , Digium Analog and Digital
board and B410 P. All are feature riches, cost effective and easy to
upgrade. Addressing the launching ceremony, Abdul Mutaleb, chief
executive officer of EMEM Systems Limited, said the Digium products
are very cost-effective with the ability of easily upgrade when
business expands. He said the IP telephony service providers will be
benefited a lot from adopting the Digium solutions as the nascent
industry has to upgrade their infrastructure gradually in a
cost-effective manner when their business will grow over time. Syed
Samiul Huq, director of EMEM Systems Ltd, said EMEM is working
persistently to introduce innovative technologies to Bangladesh and
investing immensely to build a pool of trained engineers in the field
of IP technology. He said Bangladesh is yet to exploit the wide range
of benefits from IP based technology where Digium Asterisk pledges to
play a pivotal role in the years to come. The Bangladesh
Telecommunications Regulatory Commission recently awarded over 30 IP
telephony licences enabling the ISPs to introduce IP based Voice
services for the first time which promises to bring in more features
and benefits to the telephone users.