theSun | MONDAY MAY 11 2009 15
business
GM, union spar
over plant
closures
DETROIT: General Motors is sparring with
its main union over plans to shut US plants
and outsource production to Mexico
and Asia as bankruptcy looms over the
troubled automaker, union sources said.
Negotiations were also complicated
by a long-standing feud between GM and the
United Auto Workers as they raced to fashion
a new labour agreement ahead of the June 1
deadline imposed by President Barack Obama’s
automotive task force.
“This is really about the shape of GM in the US
and its foot print in North America in the future,” a
senior UAW official who asked not to be identified
told AFP.
Neither the UAW nor GM would comment on
the status of negotiations which formally began
last week, although two senior union officials
went public with their criticism.
“The UAW strongly objects to GM’s restructur-
ing plan because it essentially means that GM will
be shifting more of its manufacturing footprint
from the US to Mexico, Korea, Japan and China,”
UAW legislative director Alan Reuther wrote in a
letter to Congress.
LBS Bina in new
property deal
by S. Tamarai Chelvi
newsdesk@thesundaily.com
PETALING JAYA: LBS Bina Group Bhd, through
its wholly-owned subsidiary LBS Bina Holdings
Sdn Bhd, has entered into a project management
agreement with Astana Modal (M) Sdn Bhd for
the development of a 175-acre housing and com-
mercial project in Puchong, Selangor.
The signing of the agreement last Thursday
increased the LBS land bank to about 2,700 acres
in Klang Valley, Perak, Cameron Highlands, Johor
and Zhuhai, China, LBS Bina said in a press state-
ment.
The project is strategically located in Puchong
and is connected via the Puchong-Damansara
Highway and it also accessible from Elite Ex-
pressway, to be linked by the Approved Cloverleaf
Interchange-Putrajaya soon.
The interchange, developed by PKNS and
targeted to be completed this year, will provide
links to most integrated townships like Puchong,
Seri Kembangan, Putrajaya, Cyberjaya and KLIA.
Spread over a development period of five years,
this project has an estimated gross development
value of about RM1 billion.
US banks seek to shed aid
after stress tests
WASHINGTON: A growing number of banks
are eyeing quick repayment of US government
capital injections after “stress tests” showed
major lenders are healthy enough to manage
without public support.
Goldman Sachs, Morgan Stanley, Bank of
America and others said they would seek early
reimbursement of the capital aid injections that
began last year to shore up a financial system
reeling from a housing meltdown and economic
slump.
Others, notably Citigroup, may improve capi-
tal ratios by converting some of the government
preferred shares to common stock -- which will
make the US Treasury a large stakeholder.
The Treasury has injected some US$200
billion (RM710 billion) in capital into dozens of
banks out of a total programme commitment
for US$250 billion (RM887.5 billion) within the
Capital Purchase Programme and Troubled As-
set Relief Program (TARP).
Some banks had argued that the capital
programme was forced on them and imposed
conditions such as limits on executive com-
“If GM is going to receive government as-
sistance to facilitate its restructuring, along
with the benefits from tremendous sacrifices
by UAW members and other stakeholders, we
believe it should have an obligation to build in
this country the vehicles it will be selling in the
US,” he added.
The comments were echoed by UAW vice-
president Bob King, who is widely expected to
become the UAW’s next president in 2010.
“There are some companies that want to sell
cars here that they are not going to build here,”
King said during a celebration of Ford’s plans to
re-tool a plant near Detroit to build small cars
instead of trucks.
“There are some restructuring plans that are
saying they want to take the jobs out of America
and they want to build (cars) in China and Korea
and Mexico rather than building them in the
United States of America,” King said.
“We believe this development, with a unique
island feature, will create a new landmark in
Puchong. Green elements will also be incorpo-
rated into the development, consistent with our
philosophy to improve the operational perform-
ance of our project while delivering environmental
sustainability,” said LBS managing director Datuk
Lim Hock San.
The development land is a piece of island-
featured land with major parts surrounded by
water, with only a small portion in the north
connecting to the mainland. This island feature
lends it a perfect opportunity for a unique island
resort living with scenic natural panoramic view
of the surrounding lake and the mainland green
ranges.
The project comprises about 1,100 units of
bungalows, semi-detached houses, superlink
houses, luxury condominium and commercial
units with designs featuring a distinctive lifestyle
in Malaysia with the combination of city colours
festival and islander holiday retreat livings.
Key design concepts for this development
would emphasis waterfront residences, gated and
guarded community, family-oriented club house
and venues for festivals and city activities.
pensation, and raised fears about government
meddling in bank operations.
“These (stress test) results produced a collec-
tive sigh of relief heard around the world,” said
Patrick O’Hare at the research firm Briefing.com.
“It has been the market’s conclusion that
these collective results are much less wor-
risome than had been thought weeks ago.
Accordingly, it is now envisioning a new phase
for the banks in which they start earning their
way out of the TARP halfway house in which
they now reside.”
Goldman Sachs, which according to the
stress tests did not need additional capital,
said in a statement that “we have met all of
the requirements stipulated and are highly
confident we will soon repay the government’s
investment from the TARP’s Capital Purchase
Programme.”
Al Goldman at Wachovia Securities said the
news that banks will turn to private capital
markets was “very positive,” adding that, “the
free enterprise system will rise from the dead if
these offerings are successful.” – AFP