21/07/2025

BIZ & FINANCE MONDAY | JULY 21, 2025

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US threatens to impose limits on Mexican flights

Porsche warns workers of cost-cuts amid ‘serious’ situation FRANKFURT: German sportscar-maker Porsche told employees last week to prepare for another round of cost-cutting in the latest blow to the country’s embattled auto sector. Any further steps would come on top of the 1,900 job cuts the company announced in February while Volkswagen, Porsche’s parent group, is already in the process of cutting 35,000 jobs by 2030. “Our business model, which sustained us for many decades, no longer works in its current form,” Porsche management said in a letter to employees, excerpts of which were shared with AFP. “Our operating conditions have deteriorated dramatically in a short period of time,” the letter read. Negotiations are expected in the second half of the year “to assure the long-term future of the company”, the letter added without going into specifics of possible measures. Fierce competition in China from domestic players, tariffs imposed by US President Donald Trump and the dollar weakening versus the euro were all weighing on Porsche, bosses said. The cost of ramping up electric vehicle production amid tepid demand was also hurting the company, they added. “The situation remains serious and the sector is evolving very dynamically,” the letter said. Porsche in April slashed its profit and sales forecasts for the year, citing “continued challenging market conditions” in China. Porsche’s vehicle deliveries in China fell 28% in the first half of the year and 6% worldwide. – AFP Phone glass maker Corning settles EU antitrust probe BRUSSELS: The EU said last week that it had accepted commitments from American glass producer Corning – the maker of a break-resistant glass used in tablets and smartphones – to avoid a possible antitrust fine. Brussels opened a probe last year over concerns that the firm had abused its dominant position and distorted competition by concluding exclusive supply agreements with mobile phone manufacturers and firms processing raw glass. “Corning has committed to cease conduct that could potentially prevent rivals from competing effectively on the market for cover glass used in smartphones and other handheld devices,” said Teresa Ribera, the European Union’s competition chief. “This opens up that market and serves to ensure that consumers benefit from low prices and high-quality cover glass.” The commitments, which are now legally binding, include a pledge to waive all exclusive clauses with device manufacturers and raw glass processing businesses. Corning will not require phone-makers to purchase any specific quantity of its glass, which is mainly sold under the “Gorilla Glass” brand, from it and will“not condition any price advantages on such sourcing requirements”in the 30-country European Economic Area. The commission – the EU’s antitrust regulator – said the commitments will remain in force for nine years. Were Corning not to honour them, it would risk a fine of up to 10% of its total annual turnover. – AFP

and do not implement unjustified operational restrictions.” The Transportation Department issued a pair of orders requiring Mexican airlines to file schedules with the department for all their US operations by July 29 and requiring prior American approval before operating any large passenger or cargo aircraft charter flights to or from the United States. “Mexico has altered the playing field significantly for airlines in ways that reduce competition and allow predominant competitors to gain an unfair advantage in the US-Mexico market. “Mexico’s actions harm airlines seeking to enter the market, existing competitor airlines, consumers of air travel and products relying on time-sensitive air cargo shipments traded between the two countries, and other stakeholders in the American economy.” If the US rescinds antitrust approval for Delta and Aeromexico, they would be required to discontinue cooperation on common pricing, capacity management, and revenue sharing, but Delta would also be able to retain its equity stake in Aeromexico, maintain all of its existing flying in the US-Mexico market unimpeded and continue a partnership. – Reuters

between the US and Mexico, as well as US jobs, communities and transborder competition”. The Transportation Department said Mexico has not been in compliance with a bilateral air agreement since 2022 when it abruptly rescinded slots and then forced American all-cargo carriers to relocate operations in 2023. Mexico’s Transport Ministry and major Mexican airlines, including Aeromexico, could not be immediately reached for comment. Duffy said Mexico was expected to complete construction to alleviate congestion at Mexico City’s Benito Juarez International Airport (MEX), but that has yet to materialise three years later. “By restricting slots and mandating that all-cargo operations move out of MEX, Mexico has broken its promise, disrupted the market, and left American businesses holding the bag for millions in increased costs,” the department said. The US Transportation Department also said it could take action against European countries over limitations at airports. “We are monitoring European States to ensure that they apply the Balanced Approach process for noise abatement at their airports

WASHINGTON: Donald Trump’s administration said on Saturday it is taking a series of actions against Mexico over the Mexican government’s decisions to rescind some flight slots for US carriers and force US cargo carriers to relocate operations in Mexico City. US Transportation Secretary Sean Duffy said in a statement the department could disapprove flight requests from Mexico if the government fails to address US concerns over decisions made in 2022 and 2023. The department is also proposing to withdraw antitrust immunity from the Delta Air Lines joint venture with Aeromexico to address competitive issues in the market. Mexico is the most popular international destination among US airline travellers. Delta said if the US Department of Transportation withdraws approval it “would cause significant harm to consumers traveling o Transportation secretary warns against exploiting American market

Chevron closes Hess acquisition after winning legal fight

A pumping station is seen at a Chevron gas station in Austin, Texas. – AFPPIC

proposed acquisition of Hess could be at risk if control of the key oil asset was successfully challenged. The ICC decision “removes a significant overhang” for Chevron, said a note by TD Cowen. This is because “growth prospects in the 2030s were in question”, and the acquisition removes this concern. Stewart Glickman, deputy research director at CFRA Research, said: “We see this transformative project driving meaningful production growth for at least the next three to five years, adding substantial new heft on the liquids side from Guyana, the Permian, and Gulf of Mexico.” Glickman added that Chevron and ExxonMobil must now put the legal dispute behind them as partners in Guyana. – AFP

billion barrels of oil equivalent discovered recoverable resource,” the company said in a statement. It added that it has wrapped up its purchase of Hess “following the satisfaction of all necessary closing conditions, including a favourable arbitration outcome” regarding Hess’s offshore Guyana asset. In a separate statement, ExxonMobil said it disagreed with the ICC panel’s interpretation but respects the arbitration and dispute resolution process. “We welcome Chevron to the venture and look forward to continued industry-leading performance and value creation in Guyana for all parties involved,” an ExxonMobil spokesperson told AFP. In February last year, Chevron warned that its

NEW YORK: Chevron has completed its US$53 billion (RM225 billion) acquisition of American energy company Hess, the oil giant said last week, after winning a legal dispute against ExxonMobil over offshore oil assets in Guyana. The outcome followed a decision by the International Chamber of Commerce (ICC), which oversaw the arbitration case. The issue concerned Hess’s 30% stake in the Stabroek Block offshore Guyana, a mammoth oilfield that was a driver of Chevron’s takeover. Stabroek is operated by US giant ExxonMobil, holding a 45% stake, while the remaining 25% of the project is maintained by Chinese company CNOOC. “Chevron now owns a 30% position in the Guyana Stabroek Block, which has more than 11