A. Walger, the bus maker, has entered into a joint venture with IMCO Bus Corporation to participate in coachbuilding operations in Mexico. The two companies have just announced the ＄70 million acquisition of Mexican Coachworks, the largest bus and coach builder in Mexico, with 2,400 employees and three factories. Walger retains a 60% interest in the coachbuilding venture. Analysts have expressed surprise, given the current exchange rate.
B. Jetline Airports has said that it spent ￡2.1 million on its failed attempt to dispose of its duty-free retail division. The chief executive said the company's six-month search for a buyer ran up heavy consultancy expenses which left half-year pre-tax profits at ￡4.5 million. It also emerged that the Director of Finance received a ￡500,000 settlement when he left the company.
C. GRD, the manufacturing giant, plans to cut 1,500 jobs at its Portland factory over the next five years after union refusal to increase productivity. A company representative said that although they have invested more than ＄42 million in the new plant and improved technology, the trade unions are still unwilling to increase output. As a result, GRD have been forced to downsize the Portland plant.
D. Maybrooke, the Scottish department store, reported a fall in trading profits in the first half of the year from ￡545,000 to ￡462,000, on sales which were down two per cent. They blame the disappointing first half on the strength of the pound, which hit the company's tourist business, as well as an increase in traffic and parking problems in the city centre, and the growth of out-of-town shopping centres.