At last Japanese Economics Minister Kaoru Yosano said to describe Japan’s falling production rate ‘very serious’. And this is assumed the greatest decline in the Japan’s economical history. Economics Minister said Japan had not experienced such type of sharp fall in production before. So, the Japanese industrial sector is now on threat.

He showed some statistics and said Japan’s industrial output had decreased by just about 10 percent in December 2008 compared with the previous month. It is visible that the country’s economy slipped into its first recession in seven years period in the third quarter of last year. Mr Yosano was afraid that unemployment in the country had risen to 4.4 percent in December. It was an increase of half a percent on the previous month. It should be noted that around 2.7 million inhabitants in the country are now without work. It is expected that present circumstances will increase the amount of unemployment.

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The news is shocked for the Philippines Government as an 85% dive in committed investments in 2008 to $249 million from $1.7 billion in 2007, recently reported The Subic Bay Metropolitan Authority. According to statistics from the SBMA Business Group showed the quantity of approved projects locating in Subic Freeport grew by 6% previous year to 185 from 175 the year before. However, the investments involved were considerably lower than year-ago levels. More to the point, investments approved in Subic reached an all-time high of $1.71 billion in 2007 whreas SBMA-approved projects amounted to $1.44 billion in 2006.

Armand Arreza, SBMA administrator, said Subic was still in a better position as an investment destination despite the massive drop in the investment value in 2008. In a statement Arreza said “Subic continued to attract big-ticket projects, while remaining one of the biggest employers in Central Luzon”. In 2008 the projects approved were typically in the tourism, manufacturing and services sectors. Among those the biggest one is that of Korean-led consortium Subic Neocove Corp. It worth is $175 million. It is involving the construction of a high-end leisure facility in Subic’s Cawag area, near the Hanjin shipyard. On the other hand, Hanil E&C Subic Inc. committed to provide $11 million to put up medium- and high-rise commercial residential buildings in that area. Moreover, additional $6.72 million would be infused into the free port by Sultan Ahmed Lootah Enterprises Corp. to produce corrugated duplex boards, cartons, paper cores, sheets, rolls, trays and corner pads.

The SBMA approved an investment of $6.58 million by George Dewey Medical and Wellness Center Inc., as well. It planned to operate a hospital, medical and nursing school, wellness center, and research center in Subic. Some other major projects approved were Hanafil Golf as well as Tour’s $3-million golf tour project in Australasia.

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Ron Gettelfinger, the president of United Auto Workers said that an association to give Italy’s Fiat 35-percent of Chrysler LLC was the best deal the U.S. automaker could strike to preserve jobs.

Gettelfinger also said “I think we all knew Chrysler needed to partner with somebody. It was a matter of whom and what would do the least harm to people,” and added “Do we want to see Chrysler go away? I don’t think that’s a good idea.” He also suggested that despite all the options, it was the best option.

Gettelfinger was recently speaking at the Automotive News World Congress and he said that he was positive the union could work with the new Congress and the Obama administration. While the big automakers companies in the U.S. are under the pressurethe Bush administration approved $17.4 billion in loans for GM and Chrysler in late December. Chrysler got $4 billion of loans from the administration and says it needs $3 billion more. The terms of the government funding authorized that GM and Chrysler seek deep refreshment stands from bondholders and the UAW and prove that they can be possible by end March.

The union offered its backing for Chrysler’s group-up with Fiat as soon as it was announced earlier this week. Both Fiat and Chrysler’s owner Cerberus Capital Management revealed the terms of a proposed alliance under which the Italian automaker would take a chance in Chrysler’s auto operations in exchange for access to technology and help selling vehicles outside the United States. The deal, however does not involve cash, is dependent on Chrysler securing the additional $3 billion from the U.S. government.

However, the analysts have commented that the deal would strengthen Chrysler’s truck-heavy vehicle line-up. Some also have questioned whether the automaker can find the cash to make the deal work if the U.S. auto market remains down in the dumps. Now, it is matter of time that we will find out how Chrysler’s and Fiat doing together and the result of it.

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This is the era of the nightmare for the automakers, and another name came on the list of annual lost, Nissan. Nissan Motor Co Ltd, Japans third largest automaker will post their annual operating loss instead of a before calculating their profit. The company’s source said that this is caused by the down sales of the product and a high price of the yen. The shares of Nissan are also down as 4.9 percent in early morning trade, which Nissan spokeswoman Masako Aoyama refused to comment on the report.

Tatsuya Mizuno, analyst at Fitch Ratings said “The yen is climbing, the U.S. economy is worsening at an unprecedented pitch, and structural changes in the car industry mean the pie will grow smaller and smaller for some time,” and also added that “I would not be surprised to see Nissan fall into the red.”

The auto industry downturn has made Nissan’s vehicle to drop 31 percent in the United State last month. It is also forcing the company to maintain a four-day work week until further notice for its two U.S. auto assembly plants. In last October, Nissan more than halved its operating profit forecast for the year to March 31 to 270 billion yen from 550 billion yen.

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The International Petroleum Investment Company (IPIC), an Abu Dhabi state-owned business, has recently agreed to buy a controlling 70% shares in MAN Ferrostaal. The agreement with the Munich-based MAN AG Group (founded in 1920) is worth around 490 million euros and will be paid in cash. According to deal IPIC will take over the charge of the company as soon as the closing date occurs around the end of March 2009. The officials said as soon as possible new board of the company will be formed. Expecting that in the new board there will be four members from IPIC and two members from the MAN AG Group.

IPIC is mainly responsible for all type of foreign investments in the oil as well as chemicals sector. The company is run by an independent Board of Directors directly under the chairmanship of Sheikh Mansour bin Zayed Al Nahyan. The company is supervised by the Supreme Petroleum Council of Abu Dhabi which oversees the United Arab Emirates’ oil and gas operations and related industries. On the other hand, MAN Ferrostaal is one of the biggest providers of industrial services. According to statistics in 2007, it has got 4,200 workforce and an annual turnover of euro around 1.4 billion. This company serves various customers in above 60 countries globally. It is part of the Munich-based MAN AG group. The company provides industrial services in two areas such as Projects and Services. However, the company is now focusing on energy and fuels more and more. That’s why, they make a deal with IPIC.

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