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Honda nine-month net profit doubles to $3.2 bn
by Staff Writers
Tokyo (AFP) Jan 31, 2013


Daimler seeks stake in China car maker: report
Shanghai (AFP) Jan 31, 2013 - German auto maker Daimler is planning to buy a 10 to 20 percent stake in the passenger car unit of its Chinese partner BAIC Group and could sign the deal Friday, a state-backed newspaper said.

The National Business Daily said on Thursday the deal for a portion of BAIC Motor will enhance Daimler's presence in China, the world's largest auto market and the third largest for Daimler unit Mercedes-Benz after Germany and the US.

BAIC could not be reached for comment on Thursday. Daimler declined to comment on Wednesday, calling recent media reports "speculation".

Earlier this month, Daimler chief Dieter Zetsche said the German company could take a stake in BAIC Motor ahead of its flotation.

BAIC Motor is planning a listing in Hong Kong later this year and is seeking to raise 10 billion yuan ($1.6 billion), BAIC Group chairman Xu Heyi has said, according to Chinese state media reports.

The National Business Daily said the introduction of Daimler as a strategic shareholder would boost the appeal of the BAIC Motor share offer and help restructure the company ahead of the listing.

BAIC Motor will also raise its stake in Beijing Benz, its joint venture with Daimler, from 50 percent to 51 percent, the newspaper added.

Daimler, which produces Mercedes-Benz cars as well as trucks, plans to sell 300,000 cars in China in 2015, about two-thirds of which will be from local production, the company said in December.

Chinese state media said earlier this month that the country's sovereign wealth fund was considering buying a four to 10 percent stake in Daimler but a source with knowledge of the matter called the reports false.

Japanese automaker Honda said Thursday that its net profit for the nine months to December 2012 more than doubled to $3.2 billion as strong sales in North America and cost-cutting offset a strong yen.

The nation's third-biggest automaker said the net profit of 291.4 billion yen was up from 139.9 billion yen in the same period the previous year, while sales jumped 28.7 percent to 7.13 trillion yen.

However, it trimmed its net profit forecast to 370 billion yen for the year to March, down from a previous 375 billion yen.

This week Japan's biggest automakers -- Toyota, Nissan and Honda -- announced record sales for 2012, underscoring their recovery from the 2011 quake-tsunami that hit demand and production, while also highlighting strength in Asian and US markets.

Honda, Japan's number-three automaker, said it logged sales of 3.81 million vehicles for calendar 2012, up from 3.09 million in 2011.

That helped offset weakness in debt-hit Europe and a downturn in China stemming from a diplomatic row that sparked a consumer boycott of Japanese goods in China, the world's biggest vehicle market.

In October, Honda blamed the spat with Beijing, as well as a strong yen, for a 20 percent cut to its annual profit forecast.

The long-standing row flared in September when Tokyo nationalised some of a tiny East China Sea archipelago that is also claimed by Beijing, setting off huge demonstrations across China and the boycott.

Japanese factories and businesses across China temporarily closed or scaled back operations over fears of being targeted by angry mobs.

In a bright spot for Japanese manufacturers, the yen has weakened as a new conservative government swept to power with promises to fix the economy and press the central bank for aggressive easing measures.

Analysts say Japanese automakers would likely see a boost in their results as the weaker yen makes their products more competitive overseas and affects the value of income earned overseas.

"The recent yen depreciation is sizeable enough to allow major Japanese carmakers to boost profit," said Tatsuya Mizuno, auto analyst at Mizuno Credit Advisory in Tokyo.

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