Business News

800 JOBS TO GO AT HONDA

Honda is planning to cut 800 jobs at its Swindon plant, blaming weak demand across Europe.

It is the first time the Japanese carmaker has cut jobs in the UK since it began manufacturing there in 1992.

The Swindon plant, which produces the Civic, Jazz and CR-V models, employs 3,500 people, having added 500 to the workforce a year ago.

Honda has begun a 90-day consultation period on the job cuts and says it hopes to avoid compulsory redundancies.

UK PRODUCTION FIGURES DISAPPOINTING

Disappointing figures on industrial production and construction in November have added to fears that the UK economy contracted in the last quarter of 2012.

The index of production grew 0.3% in November, compared with October, but had been expected to grow more as some North Sea oil and gas production resumed following maintenance.

Construction sector output contracted 3.4% in the month. Both figures are components of gross domestic product (GDP).

GDP measures the total amount of goods and services produced by the country, and preliminary GDP figures for the final three months of 2012 are due to be released on Friday 25 January.

APPLE IN CHINA TO OVERTAKE DOMESTIC US SALES

Apple expects China to overtake the US as its biggest sales market, the company's chief executive has told China's state news agency.

"China is currently our second-largest market, I believe it will become our first," Tim Cook told the Xinhau News Agency.

Mr Cook's comments came on a visit to Beijing to meet Chinese regulators and bosses of mobile network China Unicom. Apple currently has 11 stores across China.

The company saw its Chinese sales double in both 2010 and 2011, but the growth rate slowed last year.

FORD TO CREATE 2,200 NEW JOBS IN THE USA

Ford plans to hire 2,200 new staff in the US this year, in response to the continuing rise in American car sales. The country's second-largest carmaker by sales, it said it would hire engineers, computer programmers and other office workers.

Ford's US car sales totalled 2.3 million last year, 5% higher than 2011. Industry-wide US sales in 2012 came in at 14.5 million, a five-year high. Ford predicts this figure will rise to between 15 and 16 million this year.

HMV TO OFFER A QUARTER OFF ALL PRODUCTS

HMV, which revealed a half-year pre-tax loss of £37.3m in December, has announced a month-long sales promotion which will see 25% knocked off prices. The Blue Cross Sale, starting on Saturday, covers a range of lines, from CDs to books and technology products.

HMV said the sole reason for the sale was to provide customer value. “It's what retailers do at this time of year, and any other interpretation is just the usual media speculation," said an HMV spokesman.

They said that the chain would normally run a "multi-buy" campaign at this time of year, but wanted to try something different this time. The promotion will run in more than 230 stores across the UK and Ireland.

Source: BBC Business News