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This week’s business round up

first_img Previous Article Next Article Strong pound could hit BMW investment plan• BMW could be forced to scrap its plans to build a new medium-sized car atRover’s Longbridge plant, near Birmingham, because of the soaring pound. Groupproduction director Peter Forster said even if the European Commission approvedthe Government’s £152m aid package the planned £1.5bn investment at Longbridgecould be cancelled if sterling remained at its current level – more than 40 percent higher than when BMW bought Rover six years ago. “We believe thestrong pound step by step erodes the manufacturing base and makes itincreasingly difficult to manufacture in the UK,” he said. His commentsare one of the strongest pleas from a foreign industrialist for ministers totalk down the pound. Guardian UnlimitedAll energy company eyes turn to sale deal• Energy-to-telecoms group United Utilities triggered another round ofupheaval in the electricity supply industry by appointing Goldman Sachs tohandle the sale of its electricity and gas retail business Norweb Energi. Thecompany, which has about two million electricity and 400,000 gas customers isexpected to fetch between £350m and £400m. It is likely to attract theattention of major energy companies seeking to build major supply operations inBritain. This Is LondonRolls-Royce vows to keep up pre-tax profits• Rolls-Royce has promised it will continue to deliver double-digit earningsgrowth despite “challenging” conditions. The aerospace, marine andindustrial power group reported an 11 per cent jump in pre-tax profits for 1999on Thursday, towards the top end of market expectations. The group said pre-taxprofits rose to £360m, driven largely by a strong performance from its civilaerospace business, which accounts for almost 56 per cent of total sales of£4.74bn. Industrial power activities continued to be loss-making. Analysts werelooking for profits in the range of £335m to £368m. FT.com This week’s business round upOn 7 Mar 2000 in Personnel Today Related posts:No related photos. Comments are closed. last_img read more