14/01/2013

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:00:05. > :00:15.BBC World News. Now for the latest financial news with Sally and World

:00:15. > :00:19.

:00:19. > :00:26.Business Report. The Detroit Auto show opens today to the roar of a

:00:26. > :00:36.muscle car. The iconic Corvette is reborn, but can it fend off the

:00:36. > :00:42.

:00:42. > :00:45.Truck maker MAN becomes the latest German firm to cut working hours to

:00:45. > :00:51.avoid layoffs and whether the economic downturn. We have a report

:00:51. > :00:55.from Munich. If you are lover of fast cars then you will enjoy this

:00:55. > :00:59.week. In Detroit later today, the North American International Auto

:00:59. > :01:03.Show kicks off and a lot of focus is on the efforts by US car giants

:01:03. > :01:05.to seize the initiative back from its German rivals in the luxury car

:01:05. > :01:08.market. Ford has recently relaunched its Lincoln brand and

:01:08. > :01:10.for the Corvette faithful, this is the moment they've been waiting for.

:01:10. > :01:14.Michelle Fleury attended the launch of General Motors' seventh

:01:14. > :01:24.generation Corvette just a few hours ago. She reports on the

:01:24. > :01:26.

:01:26. > :01:35.redesigned muscle car that's intended to boost Chevrolet's sales.

:01:35. > :01:38.Meet the new muscle in Motown. Thus stingray. This is the name to

:01:39. > :01:44.market special generation of Corvette. By calling it the

:01:44. > :01:49.stingray, General Motors is linking its second generation Corvette to

:01:49. > :01:54.the iconic 1963 model driven by albas. The American carmaker it

:01:54. > :02:02.needs new products like this to excite its customers and revive its

:02:02. > :02:06.declining market share. In mac Crow the next 12 months, 70% of our

:02:06. > :02:12.portfolio will be refreshed or brand new. We have had to stem the

:02:12. > :02:22.tide post bankruptcy. This is the might you

:02:22. > :02:25.

:02:25. > :02:31.The Corvette is embedded in American culture. Its heritage is

:02:31. > :02:41.meaningful to GM has it redefines itself over a few bumpy years which

:02:41. > :02:41.

:02:41. > :02:48.included a stint in bankruptcy. Everywhere we go, people yell out,

:02:48. > :02:58.I like your car. You find a stud is common amongst Corvette owners like

:02:58. > :03:04.this man. -- nostalgia. You see the stars on your car and the Chevrolet.

:03:04. > :03:09.My generation, we watched a Corvette since 1953 up until the

:03:09. > :03:16.current year. That is 60 years. As one of those things, one day, I

:03:16. > :03:22.will get a Corvette. Corbett is pinning hopes on its newest beat to

:03:22. > :03:28.boost the whole brand. It is a halo vehicle. It represents the best of

:03:28. > :03:34.Chevrolet. That draws people into a showroom that may not otherwise go

:03:34. > :03:39.there. It is the personification of the brand. The Corvette Stingray as

:03:39. > :03:44.not just an important launch would GM but it is a big deal for the

:03:44. > :03:50.American home-grown car industry. Is it an original American sports

:03:50. > :03:57.car made in the United States. And it is a showcase for what Detroit

:03:57. > :04:01.can do. Japanese exporters are continuing to enjoy the benefits of

:04:01. > :04:09.a very weak yen. It's at a 2.5 year low against the US dollar today.

:04:09. > :04:13.Rico Hizon is at our Asia business hub in Singapore with the details.

:04:13. > :04:20.This is all to do with expectations that the Japanese authorities will

:04:20. > :04:24.take serious action to help the Japanese economy? That is correct.

:04:24. > :04:29.You have statements from the Prime Minister who is following through

:04:29. > :04:33.with this campaign promise, pressuring the Bank of Japan to set

:04:33. > :04:38.a medium-term inflation target. He said over the weekend that they

:04:38. > :04:43.must set a 2% inflation level. That is what is weakening the yen

:04:43. > :04:46.against the US dollar. He said he would be meeting with monetary

:04:47. > :04:53.policy experts on Tuesday to seek an opinion on who would be suitable

:04:53. > :04:58.as next central bank governor. This rhetoric of the Prime Minister over

:04:58. > :05:06.the weekend, pushing the yen close to 90 against the US dollar with

:05:06. > :05:13.Asian trading. Its highest level since June 2010. It is at 120

:05:13. > :05:17.against the euro. Its weakest level since 20th since 20th hey have

:05:17. > :05:24.approved a stimulus package, the biggest boost since the financial

:05:24. > :05:31.crisis to try to support the market today it is closed for a

:05:31. > :05:36.public holiday. Analysts say it will benefit auto manufacturers

:05:36. > :05:40.more than technology companies. Auto manufacturers will see an

:05:40. > :05:44.increase with demand and profitability from the falling yen.

:05:44. > :05:53.Technology companies have lost the leadership and reputation and the

:05:53. > :05:55.recovery will take a lot longer. Today the German truck maker MAN

:05:55. > :05:58.becomes the latest German manufacturer to slash working hours

:05:58. > :06:01.for over 5,000 of its staff. Due to the economic slowdown, it's

:06:01. > :06:04.introducing shorter shifts at two of its plants in Germany. The

:06:04. > :06:07.company is following in the footsteps of a string of other

:06:07. > :06:10.firms from Opel to Thyssenkrupp. Under the government backed scheme,

:06:10. > :06:20.employees have their working hours cut and the government makes up

:06:20. > :06:25.

:06:25. > :06:30.part of the shortfall in pay. MAN's chief-executive has a ambitious

:06:30. > :06:34.dream for the long-term. You will not see this futuristic design on

:06:34. > :06:38.the roads yet, one day it could you dramatic improvements for fuel-

:06:38. > :06:42.efficient sleeve. The man in charge of this business has a more

:06:42. > :06:50.immediate concerns, he has to tent with week's sales at its core

:06:50. > :06:53.market. Demand in Europe, due to the debt crisis, started out in the

:06:53. > :06:58.south part of Europe and is spreading to the northern parts.

:06:58. > :07:03.says making tracks is a volatile cyclical business and he does not

:07:03. > :07:08.expect a rapid improvement. It is not the quick fix. There are

:07:08. > :07:12.political problems and debt problems in Europe which has the

:07:12. > :07:18.common market. For that it will take some years to figure out. At

:07:18. > :07:24.least until 2013, something coming back for 2014. The next couple of

:07:24. > :07:30.years, we do not see a big pay cut for the European markets. Eurozone

:07:30. > :07:37.crisis is making itself felt on MAN production lines. No job losses but

:07:37. > :07:43.fewer shifts and there will have an impact on workers household budgets.

:07:43. > :07:46.MAN is using a government scheme, employees were keys and the

:07:46. > :07:52.government makes good part of the shortfall for pay. In the case of

:07:52. > :08:01.MAN, bonuses being rescheduled to reduce the impact on basic pay for

:08:01. > :08:05.workers. Even so, some will suffer. Never forget, they receive 10% less

:08:05. > :08:10.than they would if they were care. If you are the only one who is

:08:10. > :08:16.earning money that has some effect on you. The positive effect is that

:08:16. > :08:20.they do not lose their jobs. MAN is one of Munich's biggest employers.

:08:21. > :08:30.Its problems with European exports are reminders that the city and

:08:30. > :08:32.Germany are not immune from the crisis in other eurozone countries.

:08:32. > :08:35.Other stories making headlines - thousands of people were marching

:08:35. > :08:38.in Madrid on Sunday to protest against plans to privatize parts of

:08:38. > :08:41.their public health care system. The Madrid region has proposed

:08:41. > :08:43.selling the management of six of 20 large public hospitals in its

:08:43. > :08:46.jurisdiction and 10% of its 268 public health centers. It says

:08:46. > :08:51.these reforms are needed to secure health services during Spain's

:08:51. > :08:53.economic crisis. German Finance Minister Wolfgang Schaeuble will

:08:53. > :08:56.meet Greek anti-bailout politician Alexis Tsipras in Berlin on Monday

:08:56. > :09:02.and will try to persuade him to back the Greek government's

:09:02. > :09:05.austerity measures. Tsipras, whose leftist SYRIZA party leads opinion

:09:05. > :09:08.polls in Greece, has led opposition to the spending cuts and tax hikes

:09:08. > :09:14.that Germany has demanded in return for billions of euros in aid to

:09:14. > :09:17.stave off the country's bankruptcy. Jaguar Land Rover has announced the

:09:18. > :09:20.creation of 800 production jobs at its plant in Solihull. It comes on

:09:20. > :09:27.top of a successful retail performance by the carmaker, owned

:09:27. > :09:37.by India's Tata, in 2012. The West Midlands plant already employs

:09:37. > :09:38.

:09:38. > :09:43.6,000 people producing the Range Rover Discovery and Defender models.