Korean auto major Kia will recall around 4.3 lakh cars on safety concerns. Alaska Air to feel the turbulence in its bottom-line as Boeing models remained grounded, while Japanese Nippon Steel faces heightened scrutiny ahead of its proposed acquisition of US Steel. All these and more on the April 1 edition of World Street.
Rollback Recall
Kia has issued a recall for 4.27 lakh Telluride SUVs after identifying a defect that could lead the vehicles to roll away when they're parked. The intermediate shaft and right front driveshaft of certain models might not be fully engaged, which would lead the cars to move unintentionally even when they are parked. By the time Kia decided to issue the recall, no crashes had been reported.
Plugging the Leak
Telecom operator AT&T confirmed that it spotted a massive data breach, with millions of customers seeing their data stolen and uploaded to dark net. AT&T reset the password of millions of account, but 7.6 million members and 65.4 million former customers saw their personal information and details compromised and leaked.
Proving Its Mettle
Japan's Nippon Steel is pursuing its proposed acquisition of US Steel and wants its 'deep roots' in the sector to be recognised. The remarks come after US President Joe Biden shared his opposition to the deal. Nippon Steel agreed to buy US Steel for a total consideration of $15 billion, but requires approval.
Behind Bars
Ex-crypto top boss Sam Bankman-Fried was sentenced to over 25 years in prison for a massive fraud, which led to the collapse of FTX. Bankman-Fried was also made to forfeit over $11 billion, as prosecutors claimed he stole money from customers, lied to investors, sent fabricated documents to lenders, pumped millions of dollars in illegal donations into our political system and bribed foreign officials.
Turbulence Ahead?
The Alaska Air Group said that the lost capacity from grounding its Boeing 737 Max 9 fleet will cause the company's long-term profit plans to slip below its target of 4-8 percent. Alaska Air's profit forecast showed that it would see an adjusted loss of 45-55 cents per share. Its capex plans and expectations were also in a flux, as the delivery timings of Boeing had been increased due to increased regulatory scrutiny.
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