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Lexus, a major source of profit for Toyota, was dethroned by Bayerische Motoren Werke AG (BMW)’s BMW and Daimler AG (DAI)’s Mercedes- Benz as the U.S. luxury sales leader in 2011 after 11 years as No. 1. Toyota is looking to revamp Lexus, making its models more like performance cars and less like family cars, as it competes with the German companies.

Toyota will produce Lexus models at the Georgetown, Kentucky, factory, Kyodo reported, citing no one. The New York Times reported that Toyoda will probably unveil production plans for the Lexus ES, citing a person with knowledge of the matter.

The company is being offered as much as $146.5 million by Kentucky to expand a plant in the state that’s Toyota’s largest in North America.

Most ES sales are “in the U.S. -- it’s not really a big seller in Japan,” said Koji Endo, an analyst with Advanced Research Japan, who estimates Lexus currently contributes about 20 percent of Toyota’s global profits. “Moving it there makes sense.”

Steve Curtis, a New York-based Toyota spokesman, declined to discuss details of today’s announcement.
Kentucky Incentives

The Kentucky Economic Development Finance Authority approved an incentive package yesterday, based on Toyota enlarging its auto-assembly factory in Georgetown by 2015 to produce an additional model. Toyota is considering increasing the Georgetown capacity by 50,000 units annually starting in 2015, according to a statement by the agency.

Toyota, based in Toyota City, Japan, would have to invest $531.2 million and add 570 full-time jobs to receive the full value of the credits, the agency said in an e-mailed statement. The Kentucky agency didn’t specify the model. Kentucky Governor Steve Beshear has scheduled an economic development announcement for 9:30 a.m. New York time at the Georgetown plant according to an e-mailed statement. That’s the same time as Toyota’s event in New York.

The ES shares underpinnings with Camry and Avalon sedans now built in Georgetown. It would be just the second Lexus to be assembled in North America, joining the Canadian-built RX sport- utility vehicle.
Lexus ‘Role’

The company has revamped the Lexus GS, ES, LS and IS sedans in the past 18 months, to help fuel global sales as demand rises for luxury models in China, Southeast Asia, Latin America and Russia. Increased sales for Lexus, with its higher prices and profit margins than mass-market Toyota models, also help the company expand earnings as sales of cheaper cars increase, Endo said.

“Globally, the real volume increases are coming from India, China, Brazil, but with cars that sell for under $10,000,” he said. “They have to have these higher margin products, and that’s the role of Lexus.”

Lexus isn’t going to reclaim its No. 1 U.S. luxury ranking, which it held in the U.S. from 2000 through 2010, anytime soon. Toyota has said it expects to sell at least 260,000 Lexus cars and trucks this year, up 6.5 percent from a year ago and the most since 2008. Deliveries for the brand grew 16 percent in the first quarter to 56,740.
Kentucky Plant

Still, that pace isn’t enough to move the brand from third place in U.S. luxury sales. BMW and Mercedes say this year they’ll exceed their 2012 totals of 281,460 and 274,134, respectively. Those figures exclude Daimler’s cargo vans and Smart cars and BMW’s Mini brand, all outside the luxury category.

The Georgetown plant, opened in 1988, is the main production site of Camry sedans, the best-selling U.S. car for the past 11 years.

Toyota has invested $6 billion at the site, according to its website, and the factory employs about 6,600 people and can build more than 500,000 vehicles and 600,000 engines annually. The new project could add 750 jobs when contract workers are included, according to the Kentucky statement. 

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       The numbers come from a computer simulation based on running the system with 10 percent fewer controllers, and using air traffic volumes from March 29, a Friday, when traffic is usually heavier. As is usually the case, bad weather or equipment breakdowns would impose additional delays. Fully staffed, most of these airports are running with modest delays in good weather.

The transportation secretary, Ray LaHood, spoke angrily about the problem, caused by the across-the-board budget cuts known as the sequester. “This is not what we signed up for,” Mr. LaHood said in a meeting with reporters. “This is a dumb idea. Sequestration is a dumb idea. Not one person in America would use sequester to figure out what to do with their budgets.”

“It’s a meat-ax approach,” he said. “Congress needs to fix it.”

But with no fix in sight, the Transportation Department is preparing to cut $1 billion from its budget by the end of September, including $635 million from the F.A.A. Some of that savings will come from canceling equipment contracts, but most of it will come through unpaid furloughs of one day per 10-day pay period, or 11 days between now and the end of the fiscal year, Mr. LaHood said.

Reduced staffing, either in the control towers or at radar rooms distant from the airports, will cut the ability to land airplanes, and in some cases, like O’Hare and Atlanta, may require closing some runways, Mr. LaHood and Michael P. Huerta, the F.A.A. administrator, said.

They listed average and maximum delay times for six hub airports, which they said showed the range of effects, as follows:

¶ Newark Liberty International Airport: Maximum, 51 minutes; average, 20.5 minutes.

¶ Kennedy International Airport: Maximum, 50 minutes; average, 12.4 minutes.

¶ La Guardia Airport: Maximum, 80 minutes; average, 30.5 minutes.

¶ O’Hare International Airport: Maximum, 132 minutes; average, 50.4 minutes.

¶ Los Angeles International Airport: Maximum, 67 minutes; average, 10.1 minutes.

¶ Hartsfield-Jackson Atlanta International Airport: Maximum, 210 minutes; average, 11.3 minutes.

Some airports, like La Guardia, run near their capacity to land aircraft for most hours of the day, and if that rate is cut and a queue develops, they will have little opportunity to recover, the officials said; some, like Kennedy Airport, run at their current fully staffed capacity part of the day.

The F.A.A.’s plan is to reduce the number of planes allowed in the air to the maximum that can be safely handled by the reduced number of controllers. The agency briefed the airlines earlier this week. The trade association of the major airlines, Airlines for America, said it had three legal opinions that the F.A.A. had “the discretion to implement cuts without furloughing air traffic controllers,” but had not acted to do so. The association said it might sue the F.A.A.

Antitrust laws would allow the airlines to meet and negotiate mutual reductions in their schedules if the Transportation Department approved, but thus far there is no sign of a plan to do so.

In February, the F.A.A. announced plans to close the air traffic control towers at a variety of small airports. Shutting those towers, run by contractors, would have saved money that could have been used elsewhere in the agency, Mr. LaHood and Mr. Huerta said. But the plan was delayed for safety analysis.

will now be on the State to Launch Microsoft ofice Singapore and will get circulated in stores,
Microsoft's Surface RT tablet will be available in Singapore from April 5. The 10.6-inch tablet and its accessories will be sold at Challenger stores in the city-state.
The 32GB Surface RT is priced at S$668, which is slightly more than the base 16GB Wi-Fi fourth-generation iPad (S$658). The 64GB version is priced at S$798. If you buy both the tablet and the Touch Cover keyboard accessory together, Microsoft offers a deal--S$798 for the 32GB version and S$938 for the 64GB.
The keyboard accessories are available separately at S$168 for the Touch Cover and S$183 for the Type Cover. You can also purchase a VGA adapter or even an additional power supply at S$58 each.
Microsoft had previously announced that the Surface RT would be available in more markets in March, including Singapore. Although Microsoft offers two versions of the Surface tablet--the Pro and the RT model--in some countries, it's only selling the Windows RT model in Singapore now. There's no word on the availability of the Pro version, which uses a more powerful Intel Core-i processor.
The number and the quality of the apps in the Windows Store is likely to be crucial in the adoption of the Windows RT-based Surface. That's because you can't install desktop Windows apps on the Surface due to the locked-down nature of Windows RT. Every device, however, is preloaded with a native RT version of Microsoft Office.
Although Microsoft's app store has recorded healthy growth since its October launch--the latest count is 50,000--it's still far behind more established iOS and Android platforms.

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Suburbia trounced downtown in job growth during the 2000s in Hampton Roads, a study has found.
The region added 10,700 jobs between 10 miles and 35 miles from one of its three central business districts, and 7,800 of them between 3 miles and 10 miles away, according to a Brookings Institution report. It lost about 11,000 jobs within 3 miles of those districts, in Virginia Beach, Norfolk and Newport News.
Hampton Roads' experience roughly followed the national average. The Great Recession of the late 2000s halted the pace of job sprawl in the largest 100 metro areas but did not reverse the trend, wrote its author, Elizabeth Kneebone.
The decentralization of employment is not inherently good or bad, Kneebone wrote. It can be managed in a way that promotes dense, well-connected suburban centers or it can be allowed to sprawl, creating problems with infrastructure, transportation, energy consumption and the distance to jobs for poor and minority residents, she said.

Buisniess Microsoft Windows Hangs Tough in Face of Falling PC Shipments

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 Flat revenue growth ordinarily doesn't get much attention on Wall Street, but in the case of Microsoft Corp.'s (MSFT) Windows division it may be something to pay attention too, say analysts.

Global PC shipments fell 14% in the first quarter, according to research firm IDC, their steepest decline ever. As the leading operating system used on PCs, many analysts expected Windows revenue to follow a similar path in its fiscal third quarter. Microsoft reported that after adjustments third quarter Windows revenue was flat at $5.7 billion.

Windows revenue met analysts' expectations, which was a leading reason Microsoft shares rose 2.6% to $29.55 in after-hours trading.

"All eyes are on the Windows business," said analyst Gregg Moskowitz of Cowen & Co. "It's critical the Windows business hold in close to what the street is expecting."

Microsoft is engaged in a multiyear effort to recalibrate Windows from an operating system for desktop and laptop computers into something that will power tablets and smartphones as well. Microsoft is striving to catch up with the mobility of Apple Inc.'s (AAPL) iPad and devices running Google Inc.'s (GOOG) Android operating system, but it doesn't want to abandon those legacy customers in the process.

"The transition is complicated given the size of the hardware and software ecosystems," Peter Klein, chief financial officer said on the earnings call.

Microsoft's Surface tablet computer introduced last October could be helping. Surface sales are included in Windows revenue, but not broken out. The same goes for the benefit of multiyear license revenue. While it isn't clear what benefit those things had, the fact that revenue for the Windows division was flat during a quarter when PC shipments slid "shows the strategy is working to offset the PC numbers," said analyst Brent Thill of UBS.

To further propel Windows revenue, Microsoft is working with manufacturers to introduce smaller, lower cost Windows 8 devices, but price alone isn't the key to consumer success, said Mr. Klein.

"It's not just the devices. It's the chips, it's the apps, it's the buying experience and the user interface. We're really focused on all five of those things," said Mr. Klein.

As more people abandon the desktop for mobile, Microsoft also is working to build services that can still drive revenue, he said. The online version of its Office software, Office 365, has grown to a $1 billion annual business and its consumer version of Office 365 has enjoye
d "strong adoption" since it was introduced early this year, he said. Users of its Xbox Live gaming and home entertainment service grew 18% in the past year to 46 million

Google Fiber to buy iProvo network, upgrade Utah city to 1 Gbps


Google (Nasdaq: GOOG) on Wednesday named Provo, Utah as the third market where it will deliver its 1 Gbps fiber to the home service by purchasing the city's existing iProvo fiber network.

Although the deal still needs city council approval, Google said that it would upgrade the existing network to 1 Gbps technology and complete network construction so all homes in the city can get access to the service. In addition to the 1 Gbps service, it would offer a free 5 Mbps service to the 115,000 residents on the existing Provo network who pay a $30 activation fee.

City council members are scheduled to vote on the deal next Tuesday, April 23.  
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Kevin Lo, general manager, Google Fiber, said in a blog post that they "intend to begin the network upgrades as soon as the closing conditions are satisfied and the deal is closed."

Google said that if the deal closes, it hopes to have service up and running by late 2013, meaning Provo would be the second city besides Kansas City where it offers the service. Amidst great fanfare, Google Fiber announced earlier this month that it would bring its service to Austin, Texas where it would compete against AT&T (NYSE: T) and Time Warner Cable (NYSE: TWC). In Austin, Google won't begin offering services until 2014.

Hours after Google made its Austin announcement, AT&T said that it too would build a 1 Gbps service, but it did not specify a timeline of when it would actually deliver it to the city.

What's different about the latest proposal in Provo is that Google is purchasing another service provider, whereas in the other markets it's building its network from scratch.

In Provo, Google Fiber will compete with area cable operator Comcast (Nasdaq: CMCSA) and incumbent telco CenturyLink (NYSE: CTL).

Comcast currently provides up to 105 Mbps speeds on its existing HFC-based DOCSIS cable systems, while CenturyLink offers a mix of ADSL2+ and VDSL2 services on its hybrid hybrid copper/fiber fiber to the node (FTTN) network with speeds from 1.5 Mbps to 40 Mbps depending on how far away a customer resides from the nearest remote terminal or central office