Filed under: Cellphones

Germany wanted $6.2 million in research subsidies back from Nokia, and in addition to the “tens of millions” that the company has already relinquished after the highly-disputed Bochum plant closing, it’ll be coughing up another €1.3 million ($2.04 million) to hopefully close the door on the matter. Said payment will be addressed to North Rhine-Westphalia, which was quite angry after the handset maker decided to hack 2,300 jobs from Germany and relocate operations to Romania for “lower labor costs.” The sum here is in addition to the €20 million “Growth for Bochum” foundation that the outfit started, but apparently that show of goodwill didn’t really change the hearts of those already bitter.

[Via PhoneScoop, image courtesy of Reuters]

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Filed under: Cellphones

Nokia’s decision to close that factory in Bochum, Germany and move its operations to a cheaper site in Romania might lower costs in the long run, but for now things seem decidedly in red: Nokia and the German unions who represented the 2,000 laid-off workers at the plant have agreed to a €200M ($314M) settlement, which will probably end the demonstrations and calls for boycotts that have been going on. Of course, that’s on top of the $92M (plus another $6.2M) the German government wants back in grants and tax breaks for subsidizing the plant, but what’s another hundred mil between friends?

[Via Textually.org; image courtesy of Reuters]

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Filed under: Cellphones

As if being on the hook for $92 million wasn’t enough, Nokia is now being chased down for what looks to be another €4 million or so, which comes out to just over $6.2 million. This time, the German government is “demanding” that Nokia repay said amount in research subsidies now that it is closing its factory in Bochum. Reportedly, the German Research Ministry gifted the cellphone maker with €4 million in order to “fund four separate research projects dealing primarily with new antennae and wireless transmission technology,” and now it’s asking Nokia to “explain by early April which patent filings resulted from the projects and which German production or research sites benefited from the results of the projects.” So much for basking in the glory of Q4, eh?

[Via IntoMobile, image courtesy of Reuters]

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Filed under: Cellphones

Looks as if Nokia’s going to be using a portion of that gigantic profit it raked in during Q4 to appease NRW.Bank — unless a meeting it hopes to establish within the next few days changes matters, that is. Apparently, a German state has “asked” the handset maker to hand back government-issued subsidies (with interest, no less) that it received to build a cellphone factory in Bochum which it now plans to close. In sum, Nokia’s looking at a tab of $92 million, as the folks in the industrial Ruhr region are none too pleased about what will likely result in the loss of some 2,300 jobs. Purportedly, the cash is due by March 31st, and if Nokia refuses to comply, the bank has stated that it will “take legal action to secure payment.” Them’s fightin’ words there.

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Filed under: Cellphones

The German state of North-Rhine Westphalia wants its €41.3 million (about $60.5 million) back. The reason? Germany wants the corporate subsidies given to Nokia back in 1998 and 1999 for its plant in Bochum. The very plant Nokia is about to shut down at the cost of some 2,300 German jobs. Nokia responded to Germany’s demand saying that it is “astonished” and “Based on the facts available to the company and Deutsche Bank, its advisor throughout the entire period, both parties feel strongly that such an attempt is without merit.” Of course, Nokia won’t hurt too badly if forced to pay out. Nokia’s new Romanian plant is expected to cost just a tenth of the Bochum plant to operate. Nokia also posted a staggering $2.6 billion in profit from the last quarter alone. The German authorities know a cash cow when they see it.

Read — Reuters’ take
Read — Nokia response in full

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