Airbus for China deal after diplomatic gaffe

PARIS REUTERS: Airbus is in talks to rescue a plane sale to China thrown into doubt earlier this year shortly after a perceived gaffe by two European envoys over China’s sensitive historical relationship with Japan, people familiar with the matter said.

The Airbus talks come as France’s prime minister embarks this week on a trip to Beijing and as the United States threatens new tariffs on Chinese goods. French officials cautioned there were no signs of an imminent airplane deal.

State-controlled China Eastern is seeking 150 single-aisle jets like the Airbus A320 or the competing Boeing 737, industry sources said.

China’s ICBC Financial Leasing has also expressed interest in placing an Airbus aircraft order, the sources said.

The fate of a landmark Chinese order for 180 Airbus jets was left uncertain in January when French President Emmanuel Macron unexpectedly failed to clinch the order during a Beijing visit. China often marks such visits with industrial deals.—Reuters

VW, Ford mull alliance

FRANKFURT: Volkswagen and Ford are in preliminary talks over a development and production alliance for commercial transporter vans, two sources familiar with the matter said on Tuesday.

An announcement could come as soon as Tuesday after Volkswagen’s supervisory board gave its managers a green light to strike a deal with US-based Ford, two Germany-based sources said.

The goal is a partnership to share development and production costs, the sources said. Some preliminary talks have already been held, one of them said.

Volkswagen declined to comment on a possible alliance with Ford, but said: “As a leading automotive producer we consider various joint ventures with other companies across the globe.” Ford in Europe had no immediate comment.

Published in Dawn, June 20th, 2018