14/01/2013 World Business Report

BBC World News. Now for the latest financial news with Sally and World

Business Report. The Detroit Auto show opens today to the roar of a

muscle car. The iconic Corvette is reborn, but can it fend off the

Truck maker MAN becomes the latest German firm to cut working hours to

avoid layoffs and whether the economic downturn. We have a report

from Munich. If you are lover of fast cars then you will enjoy this

week. In Detroit later today, the North American International Auto

Show kicks off and a lot of focus is on the efforts by US car giants

to seize the initiative back from its German rivals in the luxury car

market. Ford has recently relaunched its Lincoln brand and

for the Corvette faithful, this is the moment they've been waiting for.

Michelle Fleury attended the launch of General Motors' seventh

generation Corvette just a few hours ago. She reports on the

redesigned muscle car that's intended to boost Chevrolet's sales.

Meet the new muscle in Motown. Thus stingray. This is the name to

market special generation of Corvette. By calling it the

stingray, General Motors is linking its second generation Corvette to

the iconic 1963 model driven by albas. The American carmaker it

needs new products like this to excite its customers and revive its

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

portfolio will be refreshed or brand new. We have had to stem the

tide post bankruptcy. This is the might you

The Corvette is embedded in American culture. Its heritage is

meaningful to GM has it redefines itself over a few bumpy years which

included a stint in bankruptcy. Everywhere we go, people yell out,

I like your car. You find a stud is common amongst Corvette owners like

this man. -- nostalgia. You see the stars on your car and the Chevrolet.

My generation, we watched a Corvette since 1953 up until the

current year. That is 60 years. As one of those things, one day, I

will get a Corvette. Corbett is pinning hopes on its newest beat to

boost the whole brand. It is a halo vehicle. It represents the best of

Chevrolet. That draws people into a showroom that may not otherwise go

there. It is the personification of the brand. The Corvette Stingray as

not just an important launch would GM but it is a big deal for the

American home-grown car industry. Is it an original American sports

car made in the United States. And it is a showcase for what Detroit

can do. Japanese exporters are continuing to enjoy the benefits of

a very weak yen. It's at a 2.5 year low against the US dollar today.

Rico Hizon is at our Asia business hub in Singapore with the details.

This is all to do with expectations that the Japanese authorities will

take serious action to help the Japanese economy? That is correct.

You have statements from the Prime Minister who is following through

with this campaign promise, pressuring the Bank of Japan to set

a medium-term inflation target. He said over the weekend that they

must set a 2% inflation level. That is what is weakening the yen

against the US dollar. He said he would be meeting with monetary

policy experts on Tuesday to seek an opinion on who would be suitable

as next central bank governor. This rhetoric of the Prime Minister over

the weekend, pushing the yen close to 90 against the US dollar with

Asian trading. Its highest level since June 2010. It is at 120

against the euro. Its weakest level since 20th since 20th hey have

approved a stimulus package, the biggest boost since the financial

crisis to try to support the market today it is closed for a

public holiday. Analysts say it will benefit auto manufacturers

more than technology companies. Auto manufacturers will see an

increase with demand and profitability from the falling yen.

Technology companies have lost the leadership and reputation and the

recovery will take a lot longer. Today the German truck maker MAN

becomes the latest German manufacturer to slash working hours

for over 5,000 of its staff. Due to the economic slowdown, it's

introducing shorter shifts at two of its plants in Germany. The

company is following in the footsteps of a string of other

firms from Opel to Thyssenkrupp. Under the government backed scheme,

employees have their working hours cut and the government makes up

part of the shortfall in pay. MAN's chief-executive has a ambitious

dream for the long-term. You will not see this futuristic design on

the roads yet, one day it could you dramatic improvements for fuel-

efficient sleeve. The man in charge of this business has a more

immediate concerns, he has to tent with week's sales at its core

market. Demand in Europe, due to the debt crisis, started out in the

south part of Europe and is spreading to the northern parts.

says making tracks is a volatile cyclical business and he does not

expect a rapid improvement. It is not the quick fix. There are

political problems and debt problems in Europe which has the

common market. For that it will take some years to figure out. At

least until 2013, something coming back for 2014. The next couple of

years, we do not see a big pay cut for the European markets. Eurozone

crisis is making itself felt on MAN production lines. No job losses but

fewer shifts and there will have an impact on workers household budgets.

MAN is using a government scheme, employees were keys and the

government makes good part of the shortfall for pay. In the case of

MAN, bonuses being rescheduled to reduce the impact on basic pay for

workers. Even so, some will suffer. Never forget, they receive 10% less

than they would if they were care. If you are the only one who is

earning money that has some effect on you. The positive effect is that

they do not lose their jobs. MAN is one of Munich's biggest employers.

Its problems with European exports are reminders that the city and

Germany are not immune from the crisis in other eurozone countries.

Other stories making headlines - thousands of people were marching

in Madrid on Sunday to protest against plans to privatize parts of

their public health care system. The Madrid region has proposed

selling the management of six of 20 large public hospitals in its

jurisdiction and 10% of its 268 public health centers. It says

these reforms are needed to secure health services during Spain's

economic crisis. German Finance Minister Wolfgang Schaeuble will

meet Greek anti-bailout politician Alexis Tsipras in Berlin on Monday

and will try to persuade him to back the Greek government's

austerity measures. Tsipras, whose leftist SYRIZA party leads opinion

polls in Greece, has led opposition to the spending cuts and tax hikes

that Germany has demanded in return for billions of euros in aid to

stave off the country's bankruptcy. Jaguar Land Rover has announced the

creation of 800 production jobs at its plant in Solihull. It comes on

top of a successful retail performance by the carmaker, owned

by India's Tata, in 2012. The West Midlands plant already employs

6,000 people producing the Range Rover Discovery and Defender models.