LITTLE ROCK — QUOTE OF THE DAY
“As we look to 2011, the consumer environment remains uncertain, and budgets for the moderate customers we serve remain tight.”
J.C. Penney Co. Chief Financial Officer Michael Dastugue
Article, 1D
Volvo to invest $10 billion globally
BEIJING - Volvo Cars said Friday that it will invest $10 billion to $11 billion worldwide over the next five years in an ambitious expansion after its acquisition by a Chinese owner.
Chief Executive Officer Stefan Jacoby’s announcement came as Volvo unveiled plans to target fast-growing China for stronger sales. The company said it will open a production base in southwestern China and is looking at a possible second site in the northeast.
“We plan to invest $10 [billion]-$11 billion over the next five years globally,” Jacoby said in an interview. He said that will pay to develop a new vehicle platform and powertrain and to expand Volvo’s presence in China.
Volvo was acquired in August from Ford Motor Co. by Geely Holding Group, one of China’s small but ambitious automakers. The $1.5 billion deal - China’s biggest foreign auto acquisition - secured Geely a respected global brand but also the challenge of turning around a perennial moneyloser in a distant country.
Volvo plans to raise part of the cash for its investment plans in China, drawing on its Geely ties, Jacoby said. He said the Goteborg, Sweden-based company also is raising money from European investment banks and the government of Belgium, where it has a factory.
Wal-Mart plans 3 small-format stores
Wal-Mart Stores Inc.’s small-format stores are in the works for Prairie Grove, Gravette and Gentry in Northwest Arkansas.
Bill Simon, president and chief executive officer of the company’s U.S. stores division, mentioned the new smallformat “Wal-Mart Express” stores Tuesday when the retailer issued its fourth-quarter earnings report.
Wal-Mart spokesman Steven Restivo later confirmed the company is building a store in Gentry, but had not acknowledged the other locations as of Friday afternoon.
A building permit for a 15,000-square-foot retail operation in Prairie Grove lists the owner as Wal-Mart Express, said Larry Oelrich, Prairie Grove director of administrative services and public works.
Site work is already under way on the store in Gentry.
Mike von Ree, Gravette’s planning commission chairman and the town’s recorder/treasurer, said a public hearing is set to deal with site development for a 15,000-square-foot “new retail building.”
In January, Aaron Cooper of Henderson Engineers in Lowell filed applications for three permits with the Arkansas Department of Health for retail stores in Prairie Grove, Gentry and Gravette. He said Friday that he could not comment on the projects.
Korea Exchange fines Deutsche Bank
SEOUL, South Korea - South Korea’s main stock exchange fined the local unit of Deutsche Bank AG over a sharp decline in the benchmark index late last year that resulted in sanctions by the country’s financial regulators.
The Korea Exchange said Friday in a statement that it would fine Deutsche Securities Korea $888,000 for trading rule violations. It was the biggest fine ever handed out to a member of the exchange, according to Won Yong-joon, spokesman for the exchange, which is known as KRX.
The exchange also demanded that Deutsche Securities Korea take disciplinary action against three employees. It called for one to be dismissed or suspended. Two other employees should either have their pay reduced or be reprimanded, it said. The KRX did not identify the employees.
Lee Chul-jae, director of the exchange’s market oversight division, said additional penalties are possible if the demands are not acted upon, according to Won. Deutsche Securities Korea has a month in which it can appeal the fine and the demands for employee punishment, Won said.
Deutsche Securities Korea said in a statement that it “deeply regrets” the action taken by the exchange, though added it “respects its decision to impose such penalties.”
Chinese firm welcomes U.S. inquiry
BEIJING - Chinese telecom equipment maker Huawei is inviting Washington to investigate the company to dispel what it says is a mistaken fear it is a threat to American national security.
In a letter posted on its website Friday, Huawei said the company rejects what it said are false suggestions it has ties to China’s military. The company said it sells only civilian equipment and there is no evidence it has violated security rules.
Huawei agreed last week to unwind its purchase of U.S.
computer company 3Leaf Systems after an American government security panel refused to approve the deal.
“We sincerely hope that the United States government will carry out a formal investigation on any concerns it may have about Huawei,” said the letter, signed by Huawei deputy chairman Ken Hu.
The buzz on bees: Honey output rises
The number of honey-producing bee colonies in the U.S.
rose 7.4 percent last year and honey production was up 20 percent, the U.S. Department of Agriculture said Friday.
About 2.684 million colonies were reported by beekeepers with five or more hives in 2010, the USDA said in a report. Honey production rose to 65.5 pounds per colony, up 12 percent from 2009, with overall output at 176 million pounds. The average price at the private and retail levels was $1.603 a pound, an all-time high and up 8.8 percent from the previous record in 2009, the USDA said.
Bees are essential for the health of pollinator-dependent crops, ranging from almonds to blueberries.
Scientists and beekeepers have been concerned about bee losses related to colony collapse disorder, a syndrome of undetermined cause that has led to increased bee deaths during the winter months.
No Fear retailer files for bankruptcy
NEW YORK - No Fear, a California clothing label that became popular with teens in the 1990s for its action-sports clothing, has filed for bankruptcy protection.
Chief Executive Officer Mark Simo said the privately held company needs to reorganize its finances and operations because of the weak economy and difficult operating environment within the retail industry.
The company makes motocross, surfing and other action sports clothes and accessories. It also sponsors motocross, surfing and World Extreme Cagefighting events and athletes.
No Fear, based in Carlsbad, Calif., operates 41 stores in California, Arizona, Nevada and other states.
Business, Pages 29 on 02/26/2011