Rover deal is due
BIRMINGHAM - Rover Group workers late last week were close to accepting radical new work practices and the loss of 3,000 jobs to lift the threat of closure from Britain's biggest car plant.
Unions have given agreement in principle to a package which will introduce working time flexibility to BMW's troubled UK subsidiary and cut annual employment costs by £150 million ($250 million) at the ailing Longbridge factory.
But discussions on final details of the rescue plan were still taking place at the weekend.
'We're 90 percent there, but it could take until next week to complete the deal,' said a Rover Group official.
Toyota prepares for $119m Yaris spend
LONDON - Advertising agency Saatchi & Saatchi, London, has scooped the $119 million account to launch Toyota's new small car, the Yaris, across Europe.
The agency claims it beat six European rivals.
The Saatchi network already handles the Toyota account in North America, plus a number of European, Latin American and Asian markets. Saatchi works for Renault in Italy and Audi in Germany.
Advertisements for the Yaris will break in April 1999 across 17 countries.
MediaCom wins VW business
WOLFSBURG, Germany - Volkswagen has officially confirmed that it is moving the group's entire $280 million media buying business for all its car marques in Germany to Dusseldorf-based MediaCom, the media specialist arm of Grey Advertising, from Carat in January 1999. Carat, which held the account since 1993, lost the account in pitch that also involved Initiative Media.
Volkswagen also said in a statement that media reviews are ongoing in Volkswagen's major national markets in Europe.
MediaCom is tipped to win all of Volkswagen's European media business from Carat, but local VW subsidiaries are involved in the decision.
With the VW win, MediaCom usurps Carat as the largest media buying agency in Germany.
Volvo makes job cuts warning
GOTHENBERG, Sweden - AB Volvo is planning a worldwide program of job cuts despite making profits of Skr 7.78 billion ($963.9 million) in the first nine months of 1998. The company has been hit by the economic downturn in Asia.
According to reports, Volvo plans to lay off mainly white collar staff, cutting 4,000 jobs from its total white collar workforce of 29,000.
Volvo chief executive Leif Johansson last week met with senior managers to discuss ways to reduce costs.
'In my opinion cutbacks in personnel will be necessary, but I do not wish to comment on the size of the cuts,' Johansson said.
Volvo made profits of Skr 10.72 billion in the first nine months last year.