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China’s Richest Man to Build $8 Billion Film Park

Property developer Wang Jianlin, 58, founder of Dalian Wanda Group, was surrounded by Hollywood stars John Travolta, Nicole Kidman and Catherine Zeta-Jones on Sunday as he launched his most ambitious project yet in the picturesque coastal city of Qingdao.

When completed in 2017, the Oriental Movie Metropolis will boast 20 sound stages, including the world's first underwater studio, a massive convention and exhibition complex, a sprawling shopping mall with an indoor amusement park and seven resort hotels.

The project also will include a yacht club with 300 berths.

"The Oriental Movie Metropolis is a major step in China's strategy to become a global cultural powerhouse," Wang said.

It was not only crucial to the development of Wanda's entertainment business, he added, but also an important step for building China's cultural brand.

For Wang, who was named by Forbes as China's richest man with personal wealth of $14 billion, the Qingdao project also represents the latest move by Wanda Group to parlay its real estate and shopping mall development into a leisure and entertainment empire.

Wanda Group, which is privately held, has invested in 72 Wanda Plazas across China, along with 40 five-star hotels. The company also owns 6,000 movie screens, 62 department stores and 68 karaoke centers.

More recently, the company has turned to offshore markets to expand its real estate and leisure investment. Last year, Wanda closed its $2.6 billion buy-out of U.S. cinema chain AMC Entertainment. Wang this year also announced a 1 billion pound ($1.57 billion) British investment that included the purchase of Sunseeker, Britain's largest luxury yacht maker by sales.

The Wanda chairman told Reuters earlier this month that he could afford to spend as much as $5 billion every year to buy foreign firms or assets.

In an interview on the sidelines of Sunday's ceremony, Wang said that he expected Wanda Group revenue to increase to $30 billion this year, and to continue to increase by $10 billion every year.

Wanda Group says it has total assets of 300 billion yuan ($49.01 billion) and annual revenue for 2012 of 141.7 billion yuan ($23.15 billion).

"We will have more than $50 billion in revenue two years from now," he said. "In 2020, we will have at least $100 billion, even by conservative estimates."

Offshore hotel investment is a major focus of the company's strategy. "In the next eight to ten years, we will build high-end hotels in major cities around the world," he said.

To reach the site of Oriental Movie Metropolis, which is planned as a 376-hectare, eight-phase development, it's necessary to drive about one hour from downtown Qingdao past rows of upscale apartment complexes that appear partially occupied.

Wang, who started his own film production company in recent months that has met with mixed success, explained that movies were a "sunrise industry" in China. He expects Wanda to be among the world's leading 20 entertainment companies by 2016.

He declined to discuss financing for the new project, although he has not ruled out the use of partners or of debt.

($1 = 6.12 yuan)

(Reporting By Jane Lanhee Lee in Qingdao and Matthew Miller in Beijing; Editing by Nick Macfie)

Automakers Build Showroom in an App

“They won’t come into the stores to educate themselves,” said Peter Chung, general manager of Magic Toyota and Scion in Edmonds, Wash. “They’ll do that online.”

More than half of the younger buyers surveyed by AutoTrader.com, a car-buying site, said they wanted to avoid interacting with dealership sales representatives.

In response, automakers like Cadillac and Toyota are starting to embrace technology that tries to take the showroom to the buyer. Known as augmented reality, it embeds images and videos in a picture on the user’s smartphone or tablet. The result is a far more detailed view of the image, often in three dimensions with added layers of information.

For example, when Cadillac introduced the ATS last year, it created a campaign in cities across the country that allowed observers to point an iPad at a chalk mural and watch the car drive through scenes like China’s mountainous Guoliang Tunnel and Monaco’s Grand Prix circuit. The goal was to grab the attention of potential buyers, especially younger ones, who would not normally think of Cadillac when researching new cars.

Later, Cadillac added the technology to its print advertising, pointing readers to download the brand’s smartphone application to view a three-dimensional model of the car. The app allows users to zoom in on the car and turn it 360 degrees by swiping their finger across the screen.

“It’s obviously different than going to a dealership, but at least it’s enough to engage with the vehicle in an environment where they’re comfortable,” said Arianna Kughn, Cadillac’s social media manager.

Audi has used the technology in its brochures and instruction manuals, while Toyota added it to a campaign with the computer-generated pop star Hatsune Miku to interest a younger audience in its 2012 Corolla and to increase the number of downloads of the automaker’s shopping app.

Other businesses are seeing an opportunity as well. Metaio, a German software company with an office in San Francisco, has worked on projects for Audi, Volkswagen and Toyota.

Specular Theory, based here in Venice Beach, is using Hollywood production techniques to create renderings that allow users to open the doors of a car that is not really there, peer inside and walk around, or take a test drive, merely by running their fingers over a phone or tablet screen.

Its founder, Morris May, is applying the expertise he developed over 20 years as a graphic designer on movies like “Star Wars: Attack of the Clones” and “Spider-Man 2” to redefine the way people view cars in the showroom, online and through mobile devices.

“We’re changing the way people experience cars,” Mr. May said, as he used his finger to open the car door of the virtual model displayed on his iPad, revealing the interior of the car, including the dashboard, steering wheel and texture of the seats.

The technology offers cost savings to automakers as well. Traditionally, automakers spend millions of dollars when marketing a new model, on photo shoots or building a “cookie-cutter configurator” that changes the car’s colors or features on a Web site, Mr. May says.

When a new model is introduced, that work is scrapped, and the production team, which includes photographers, Web developers and media buyers, starts anew.

As an alternative, Specular Theory uses an automaker’s computer-aided design data to create material that is consistent across Web browsers, phone and tablet screens and showroom floors, where dealers can project and modify life-size, three-dimensional car models.

When an automaker makes a minor change to, say, the tailpipe of next year’s model, Specular Theory can eliminate the time and money spent creating a new campaign by tweaking data from the marketing materials.

Mr. May’s model uses the weight of the car and the tension of the springs to calculate how it drives, controlling the car with a joystick.

Specular Theory, which started six months ago, is still in its infancy but has landed Autodesk, which makes three-dimensional design software for a variety of industries, as a client.

The Race to Build a Better Business Class

Six feet six inches long and almost two feet wide, the V concept is the German carrier’s latest weapon in the fierce competition among global airlines. It is designed to withstand shocks 16 times the force of gravity and comes with a cozy padded footrest. It is a new business-class seat, and if you are traveling round trip from Frankfurt to New York, it can be yours for about $5,000.

“Business class is where competition really is serious,” says Björn Bosler, the airline’s manager for passenger experience design, business and premium, who led Lufthansa’s team of dozens of seat designers and engineers. Bob Lange, senior vice president, head of market and product strategy at Airbus, the European plane maker, agrees: “There’s an arms race going on among carriers.”

Billions are being spent on research and development, architects, industrial designers and even yacht designers to pack seats with engineering innovations and fancy features. Just fabricating a single business-class seat can cost up to $80,000; custom-made first-class models run $250,000 to $500,000.

Those who fly coach may have had a glimpse of these expenditures as they shuffled past the elaborate reclining, angled, semiprivate accommodations in business and first class on their way to the knee-scraping spaces and overstuffed overhead compartments in the main cabin. Travelers in business and first class may represent 10 to 15 percent of long-haul seats globally, but they account for up to half of the revenue of airlines like Lufthansa or British Airways, says Samuel Engel, a vice president at ICF SH&E, an aviation consulting firm. Carriers vying for the attention of these passengers, who have money or corporate accounts that pay for their travel, are counting on good design to escape the grinding commodity nature of their business.

But there is only so much space inside a plane. As the more lucrative seats expand, the coach section often contracts, with more seats jammed into the same cabin space and more discomfort for coach passengers.

“The seat is one of the few elements that an airline can actually make its own,” says Patricia Bastard, an architect and designer who has worked with Air France on its first-class cabin. “There are very few elements like it inside an airplane. There’s customer service, of course. Maybe there’s a bar. But seats are unique to the airline. Seats are critical.”

Lufthansa, Europe’s largest airline and the world’s fourth largest in terms of passengers, is investing $4 billion to improve its cabins, offer satellite-based Internet and upgrade its onboard entertainment system. But the new business-class seat, which first appeared last year on the company’s new Boeing 747-8 planes, is perhaps the boldest attempt to lure the high-value passenger. The seat research, design, manufacture and installation accounts for roughly a third of that $4 billion investment, says Mr. Bosler — more than a billion dollars. Eleven planes are now outfitted with the new seats, and Lufthansa is expected to install about 7,000 of them on 100 wide-body airplanes by 2015.

Lufthansa’s task — like that of all the big airlines — was to create a special environment for those big-spending travelers within the inflexible boundaries of an aircraft fuselage.

“The challenge was finding a solution that provides all customer benefits but also tries to save as much space as possible and get as many passengers on board as possible,” Mr. Bosler says. “There’s only one way for Lufthansa to make money. It’s with passengers on board.”

THE first airplane business-class sections date to the 1970s, when the seats were like oversize, padded armchairs that could recline about 40 degrees. More comfortable seats for frequent business travelers came with the arrival in the 1990s of planes that could fly nonstop almost anywhere in the world. This new generation of ultralong-range airplanes that could fly for 10 to 14 hours — like the Boeing 777 — meant passengers wanted to be able to get real sleep, not just a fitful, head-snapping catnap.

DealBook: Entrepreneurs Help Build Start-Ups by the Batch

Peter DaSilva for The New York TimesRon Palmeri and Allison Rhodes Messner of MkII Ventures.

Just two years after its conception, Prism Skylabs has made enormous strides.

The 20-person company, based in San Francisco, uses video surveillance equipment to give retailers Web-like data on customer behavior in their brick-and-mortar stores. It has secured more than $8 million in financing from investors like Pacific Partners and Andreessen Horowitz and has contracts with 70 retailers.

But like many start-ups finding success in Silicon Valley and across the country, Prism Skylabs is not the brainchild of a rookie entrepreneur who risked everything. One of its founders is Ron Palmeri, a longtime Silicon Valley executive. He is among a growing group of professed company builders who are parlaying past successes — along with their own capital and thick Rolodexes — into operating companies and venture funds that work on multiple companies at the same time.

“There’s a group of us who are serial entrepreneurs who know a lot about building something and scaling it,” said Mr. Palmeri, who previously worked with CNET’s founder, Halsey Minor, at Minor Ventures. Minor Ventures used this model to build companies like GrandCentral, now Google Voice, and OpenDNS.

In 2010, Mr. Palmeri started his own operating company, MkII Ventures, with Allison Rhodes Messner, formerly of OpenDNS. The company is working on building out four different ideas.

The concept — often referred to as parallel entrepreneurship — is not entirely new. Back in the dot-com days there was CMGI, which once had a market value of more than $40 billion before dying a slow death and eventually being absorbed by one of its portfolio companies. Idealab, based in Pasadena, Calif., has been doing this for more than a decade, though with mixed results.

What is new is the number of prominent entrepreneurs and investors who are now going this route rather than staking their fortunes on single follow-up acts or taking less active roles as angel investors or venture capitalists.

“Venture doesn’t allow us to explore, only to accept and deny,” said Michael Jones, chief executive of Science, a builder platform in Santa Monica, Calif. He and a longtime entrepreneur, Peter Pham, started Science in 2011 with $10 million in venture backing, followed by $30 million from the Hearst Corporation.

Most of these investors-cum-inventors are motivated by personal passion to create companies. Under this model, entrepreneurs often tap their own networks and wallets to finance their ideas.

“I don’t have any hobbies,” said Max Levchin, a co-founder and former chief technology officer of PayPal. “This is what I do.”

His first version of this model, MRL Ventures, helped start the mobile business-rating platform Yelp and created Slide, a personal-media sharing service that Google bought for a reported $182 million but has since shut down. His new project, called Hard, Valuable, Fun, or HVF, will focus on a few big ideas with longer time frames.

Like Mr. Levchin, many of the builders came out of the recent wave of technology successes. Garrett Camp, a co-founder of StumbleUpon and Uber, has started Expa to develop new products and services and build teams to scale them. In Chicago, two Groupon founders, Brad Keywell and Eric Lefkofsky, put $200 million, primarily their own money, into Lightbank, an operating company. Lightbank has a staff of 20 and 60 projects in its portfolio, including Belly, a loyalty platform, and Frank & Oak, an online men’s clothing retailer.

Company builders say they provide a missing link in the life cycle of start-ups and do so more effectively than incubators. “The primary difference is focus,” Mr. Camp said. “I plan on creating just a couple companies per year, and spending significant time with all of them.”

Hunter Walk, a former director of product management at Google, said, “What’s often needed at the early stages isn’t more capital in a vacuum, but people with operational experience who can give their full attention to these companies.” Mr. Walk is raising a venture capital fund, called Homebrew, with another former Google executive, Satya Patel.

Once an idea gains traction, builders typically turn to venture capital firms for additional financing while gradually giving individual teams more autonomy. “It’s like raising children,” Mr. Palmeri said. “There’s a point where they eventually need their own space, but you’ll continue as a trusted adviser.”

Some company builders invest in a mix of their own ideas and early-stage concepts that fit a particular theme. Others, like Mr. Palmeri’s company, focus almost exclusively on homegrown projects, though they will recruit co-founders and teams to expand the companies into independent entities.

“It’s a highly collaborative process,” Mr. Palmeri said. “By the time we look for outside funding, the idea may have taken many different shapes.”

This approach resembles product development at large companies, like Apple or Google, only on a smaller scale. “The cycle of entrepreneurship can be pretty slow, so why not work on several ideas at one time?” said John Borthwick, chief executive of Betaworks, which was founded in early 2008 and is based in New York. (The New York Times Company is an investor.)

“Over time, you can build common tools, databases, analytics — all the things that give each idea a head start in the marketplace,” Mr. Borthwick said.

One of the biggest advantages to working on several companies simultaneously is the ability to share resources.

“The dollars used in the early stages of start-ups are often highly inefficient because you spend a lot of time and money just to get the business going,” said Mr. Jones at Science. His operating company has 25 people on its staff, specializing in areas like human resources, marketing and real estate.

“The early days of a company should be spent thinking about strategy and technology, not worrying about negotiating leases,” Mr. Jones said.

When start-ups fail, he said, often it is not because the ideas are flawed but because management did not have the tools or resources to execute the idea, were pulled in too many directions or did not move fast enough. Mr. Keywell and Mr. Lefkofsky noticed the same pattern in previous companies they had started or financed.

“We decided to bring those competencies inside of Lightbank,” Mr. Keywell said. “The whole model is designed to reduce risk and increase reward.”

Though some of the large venture capital firms have invested in ideas hatched by company builders, the concept has its skeptics.

“It’s very difficult to manufacture innovation,” said Andy Rachleff, a lecturer at the Stanford Graduate School of Business, former general partner at Benchmark Capital and chief executive of Wealthfront, an online financial advisory firm. “The reason most start-ups are successful is they had great insight, and the likelihood of having that killer insight more than once in a career is exceptionally low.”

While this approach allows individual teams to focus on ideas without having to worry about the nuances of running a business, it can pull the company builders in too many directions.

In 2011, Evan Williams and Biz Stone, who founded Twitter, and Jason Goldman, another former Twitter executive, restarted Mr. Williams’s Obvious Corporation as a builder platform. Recently, however, they said they would each focus more on individual ideas rather than work on several ideas at once.

“Turns out, we like focus,” Mr. Williams wrote in an explanation on the company’s Web site.

Nevertheless, proponents of parallel entrepreneurship argue that the odds are better for those who pursue multiple ideas. “The percentage of companies that are successful should be greater than the traditional portfolio,” Mr. Jones said.

Venture partners can regard company builders as “a monstrous insurance policy,” he added. “If something goes wrong with one of our portfolio companies, we can quickly dive back in and make things work.”

Chinese Automakers Quietly Build a Detroit Presence

DETROIT — Dozens of companies from China are putting down roots in Detroit, part of the country’s steady push into the American auto industry.

Chinese-owned companies are investing in American businesses and new vehicle technology, selling everything from seat belts to shock absorbers in retail stores, and hiring experienced engineers and designers in an effort to soak up the talent and expertise of domestic automakers and their suppliers.

While starting with batteries and auto parts, the spread of Chinese business is expected to result eventually in the sale of Chinese cars in the United States.

“The Chinese are well behind the Japanese when they hit our shores 30 years ago,” said David E. Cole, a founder of the Center for Automotive Research in Ann Arbor, Mich. “They lack the know-how, and they’re coming here to get it.”

As businesses sprout up with little fanfare, Chinese companies seem to be trying to avoid the type of public opposition experienced by the Japanese automakers Toyota and Honda in the 1980s, when the sudden influx of foreign cars competing head-on with cars from General Motors, Ford and Chrysler was perceived as a threat to American jobs.

In contrast to the Japanese, Chinese auto companies are assiduously avoiding the spotlight. Last year, the biggest carmaker in China, Shanghai Automotive Industries, opened new offices in suburban Detroit without any publicity, which is almost unheard-of in an industry that thrives on media coverage.

But China’s growth in the American auto industry is drawing notice in Washington. Last year, the Obama administration filed a complaint with the World Trade Organization that China’s government was unfairly subsidizing the production of some parts shipped to America. And the country’s inroads into American-made batteries and electric vehicles have drawn scrutiny because that sector of the industry has been heavily subsidized by the United States government.

The American industry’s overall resurgence has drawn a growing Chinese population to Detroit, with Chinese-owned suppliers bringing executives from their country and American automakers adding new talent. About 50,000 Chinese, many of them engineers and other professionals who work at General Motors and the Ford Motor Company, live in the metropolitan area.

Business networks are growing too. The Detroit Chinese Business Association boasts a flourishing membership, and counts about 100 Chinese-owned businesses, mostly auto-related, in the region.

The Ford Chinese Association, with 650 white-collar workers, predominantly from mainland China, has become one of the largest employee groups at the company. Its president, Raymond Xu, recalled that in 1999, when he came to Detroit to attend college, there were very few Chinese in the area.

“I think people are going to get more and more comfortable with it,” Mr. Xu said.

Typical of the Chinese expansion are the nondescript offices of Changan Automotive in an industrial park in the suburban city of Plymouth. Changan, a major carmaker in China, set up a research center to better understand the structural chassis of a vehicle — then hired about 20 Detroit engineers, some of whom had been laid off from Detroit’s auto companies, to staff the project.

“Most of the engineers are very young in China,” said Hong Su, the Changan executive heading the American facility. “They know how to make vehicles, but they don’t know how to develop them.”One of his employees is Alan Wall, 54, a former contract engineer at Chrysler who lost his job during the recession.

“It was an opportunity,” he said. “And those tend to come from a company that is trying to expand.”

Last year, China exported about $13 billion in automotive goods to the United States — tires, wheels and radios that are sold as replacement parts — according to AlixPartners, a consulting firm.

But many Chinese suppliers are pursuing direct business with the Detroit car companies, which now get many of their most common parts from low-wage nations like Mexico. One supplier, Brilliance Auto, an industrial giant with about 500,000 employees in the city of Shenyang in northeast China, is still an underdog in Detroit, trying to crack an intricate network of suppliers that have long relationships with G.M. and the other carmakers.

“We have been exporting our parts to North America for 15 years for the aftermarket,” said Dongbin Chen, a Brilliance executive, referring to retail sales of replacement parts. “Now our biggest opportunity is with G.M. and the other big companies.”

Brilliance scored a coup last year by supplying lightweight engine mounts for the new Cadillac ATS sedan made by G.M. in Lansing, Mich., which has whetted the company’s appetite for more.

At a United States-China conference held here in November, Brilliance displayed a large exhibit showcasing a range of mundane parts — including seat belts, steering wheels and shock absorbers — that it hopes to export to America.

“We have the ability and the capacity to supply these kinds of parts,” Mr. Chen said. “And I think right now, it is very important for us to be here.”

Unboxed: Big Data, Trying to Build Better Workers

In telephone call centers, for example, where hourly workers handle a steady stream of calls under demanding conditions, the communication skills and personal warmth of an employee’s supervisor are often crucial in determining the employee’s tenure and performance. In fact, recent research shows that the quality of the supervisor may be more important than the experience and individual attributes of the workers themselves.

New research calls into question other beliefs. Employers often avoid hiring candidates with a history of job-hopping or those who have been unemployed for a while. The past is prologue, companies assume. There’s one problem, though: the data show that it isn’t so. An applicant’s work history is not a good predictor of future results.

These are some of the startling findings of an emerging field called work-force science. It adds a large dose of data analysis, a k a Big Data, to the field of human resource management, which has traditionally relied heavily on gut feel and established practice to guide hiring, promotion and career planning.

Work-force science, in short, is what happens when Big Data meets H.R.

The new discipline has its champions. “This is absolutely the way forward,” says Peter Cappelli, director of the Center for Human Resources at the Wharton School of the University of Pennsylvania. “Most companies have been flying completely blind.”

Today, every e-mail, instant message, phone call, line of written code and mouse-click leaves a digital signal. These patterns can now be inexpensively collected and mined for insights into how people work and communicate, potentially opening doors to more efficiency and innovation within companies.

Digital technology also makes it possible to conduct and aggregate personality-based assessments, often using online quizzes or games, in far greater detail and numbers than ever before.

In the past, studies of worker behavior were typically based on observing a few hundred people at most. Today, studies can include thousands or hundreds of thousands of workers, an exponential leap ahead.

“The heart of science is measurement,” says Erik Brynjolfsson, director of the Center for Digital Business at the Sloan School of Management at M.I.T. “We’re seeing a revolution in measurement, and it will revolutionize organizational economics and personnel economics.”

The data-gathering technology, to be sure, raises questions about the limits of worker surveillance. “The larger problem here is that all these workplace metrics are being collected when you as a worker are essentially behind a one-way mirror,” says Marc Rotenberg, executive director of the Electronic Privacy Information Center, an advocacy group. “You don’t know what data is being collected and how it is used.”

Companies view work-force data mainly as a valuable asset. Last December, for example, I.B.M. completed its $1.3 billion acquisition of Kenexa, a recruiting, hiring and training company. Kenexa’s corps of more than 100 industrial organizational psychologists and researchers was one attraction, but so was its data: Kenexa surveys and assesses 40 million job applicants, workers and managers a year.

Big companies like I.B.M., Oracle and SAP are pursuing the business opportunity. So is eHarmony, the online matchmaking service. It announced in January that it would retool its algorithm for romance so it could examine employee-employer relationships, and enter the talent search business later this year.

THE penchant for digital measurement and monitoring seems most suited to hourly employment, where jobs often involve routine tasks. But will this technology also be useful in identifying and nurturing successful workers in less-regimented jobs? Many companies think so, and can point to some encouraging evidence.

Tim Geisert, chief marketing officer for I.B.M.’s Kenexa unit, observed that an outgoing personality has traditionally been assumed to be the defining trait of successful sales people. But its research, based on millions of worker surveys and tests, as well as manager assessments, has found that the most important characteristic for sales success is a kind of emotional courage, a persistence to keep going even after initially being told no.

The team of behavioral and data scientists at Knack, a Silicon Valley start-up firm, uses computer games and constant measurement to test emotional intelligence, cognitive skills, working memory and propensity for risk-taking. Early pilot testers include the NYU Langone Medical Center, Bain & Company and a unit of Shell, says Guy Halfteck, Knack’s C.E.O.

Renault to Build Assembly Plant in Algeria

PARIS — Renault will sign a deal with Algeria on Wednesday to build an assembly plant near the city of Oran, giving the French automaker wider access to one of the world’s hottest car markets and a chance to further diversify beyond Europe.

The company will sign the pact, three years in the making, on the first day of a state visit by the French president, François Hollande, a Renault spokeswoman, Rochelle Chimenes, said Tuesday.

That will pave the way for the construction of a factory to build Renault and Dacia cars to serve a market that grew 50 percent in the year through October.

Mr. Hollande is embarking on a two-day visit to smooth France’s tricky relations with Algeria, a petroleum-rich country with about 37 million people. Algeria, administered as a French department in North Africa during the colonial era, won its independence in 1962 after a bloody war. France is nonetheless Algeria’s largest trading partner.

Mr. Hollande, accompanied by a legion of French government and business leaders, is scheduled to meet with his Algerian counterpart, Abdelaziz Bouteflika, and to address a joint session of the country’s Parliament.

Algeria, which is the second-largest car market in Africa, after South Africa, is eager to reduce its dependence on the petroleum sector, which accounts for about one-third of its economy.

But restrictions on foreign investment that were enacted after the financial crisis and a failure to modernize the banking system continue to hold back the country’s economic development, according to the U.S. State Department.

Oliver Masetti, an economist at Deutsche Bank, estimates that, depending on oil prices, the Algerian economy will grow up to 2.6 percent this year and as much as 3.4 percent in 2013 — a modest increase by developing world standards.

Renault controls about 27 percent of the Algerian market, and its sales have soared about 57 percent there this year. Its Clio supermini car is the country’s best-selling model.

In Morocco, Renault opened a factory this year in Tangier to make cars for export to European and Mediterranean markets.

Renault is better diversified globally than its ailing French rival, PSA Peugeot Citroën, thanks in part to its alliance with Nissan Motor.

But it is looking for growth outside the European Union, which is gripped by recession and faces the possibility that austerity measures will mean years of stagnation.

La Tribune, a French financial daily, reported Tuesday that Mr. Hollande would raise with his hosts the possibility that the Algerian government dip into its $200 billion of foreign reserves to take a stake in Peugeot, which is undergoing a painful restructuring to stay afloat. Any such request would probably fall on deaf ears, the newspaper cited an unidentified Algerian official as saying.

Cécile Damide, a spokeswoman for Peugeot, declined to comment.

Sales of new cars in the 27-nation European Union fell 7.6 percent in the first 11 months of 2012 from a year earlier, according to the European Automobile Manufacturers’ Association. Sales declined in every major market except Britain, bringing absolute sales to a level last seen in 1993.

The Algerian government will hold 51 percent of the new factory, with Renault owning the rest, the French daily newspaper Le Figaro reported Tuesday, without identifying its source.

The company declined to comment on the details, but such an arrangement would be consistent with the standard foreign investment contract in Algeria. Le Figaro also said the plant would begin operation in 2014 with annual production of about 25,000 vehicles, which could grow to 75,000.

Sidley Austin Looks to Riverbed to Build a Broader Network

Sidley Austin had a legacy network connecting its 17 offices in the U.S., Asia and Europe, resulting in slow data transfers and limiting the firm's ability to centralize IT resources. To create better connectivity between offices, the firm upgraded its network with Riverbed appliances.

Australians Surge in Quest to Build Quantum Computer

In an article that appeared on Thursday in the journal Nature, a team of Australian and British scientists, led from the University of New South Wales, reported that they had successfully constructed one of the basic building blocks of modern quantum computing by relying on manufacturing techniques now used by the modern semiconductor industry.

Quantum computing will potentially lead to a new generation of supercomputers that are not intended to replace today’s machines but will instead open new computing vistas, from drug and material design to code breaking, by offering speed to address a new class of problems.

“We are used to designing cars and airplanes with computers,” said Andrew Dzurak, a physicist who is director of the Australian National Fabrication Facility and lead researcher on the latest advance. “Imagine if you could start building your molecule or your material on a computer and then completely simulate its behavior.”

The basic building blocks of quantum computers are quantum bits, or “qubits.” Unlike today’s digital computers, which process information in a binary fashion based on logic states of “on” and “off,” a qubit can for brief periods represent multiple states simultaneously. Potentially, this means it is possible to tackle vast new problems by performing parallel computations using a relatively small set of qubits — perhaps as few as several hundred. The advance by Dr. Dzurak’s team involves placing a single electron — embedded in a silicon chip — in a “quantum state,” and then repeatedly measuring the state.

In February, a second group based at the University of New South Wales published an article in the journal Nature Nanotechnology reporting their advance: the construction of a single-atom transistor using a different but related design approach.

In both cases, the research teams are international. There is an increasing awareness, however, that Australian scientists have made significant advances this year toward this long-promised new type of computing.

While there is a growing consensus among scientists that working quantum computers will emerge during this decade, there is also a growing belief that they will not replace the conventional computers that are now carried in the pockets of more than half the world’s population. For one thing, most of the quantum computing approaches only worked when temperatures were cooled to near absolute zero.

Though there are only a handful of workable algorithms designed to run on quantum computers, scientists say their application may prove vastly more useful than today’s technology in simulating a wide variety of biological, chemical and physical systems. That means they could become the standard tool for a wide range of new industries, like drug and material design.

The achievements of the two teams is a payoff from an investment the Australian government began making in the 1990s.

“Both groups are highly competitive and leading in the world in what they do,” said Gerhard Klimeck, a professor of electrical and computer engineering at Purdue, who has collaborated with both groups and was a co-author of the Nature Nanotechnology paper.

Dr. Dzurak’s group’s work contrasts with a research team led by Michelle Simmons, director of the ARC Center for Quantum Computation and Communication Technology at the University of New South Wales. That group has taken an approach based on placing individual atoms using a scanning tunneling microscope, allowing great precision in building devices on an atomic scale.

The team led by Dr. Dzurak uses conventional semiconductor techniques to implant a phosphorus atom just 10 to 15 nanometers below the surface of a silicon chip. That approach has the twin advantages of using industry standards and potentially extending the individual electron’s duration in a quantum state.

The United States has federally financed, corporate and university research efforts under way to design usable quantum computers. I.B.M., for example, recently expanded its research at its Almaden laboratory in California.

Andreas Heinrich, a physicist who is a quantum researcher at I.B.M., pointed out that neither Australian group had shown the ability to interconnect multiple qubits. That capability is necessary for a quantum computer.

Dr. Dzurak said he believed that capability could be achieved as soon as a year from now.

Sidley Austin Looks to Riverbed to Build a Broader Network

Sidley Austin had a legacy network connecting its 17 offices in the U.S., Asia and Europe, resulting in slow data transfers and limiting the firm's ability to centralize IT resources. To create better connectivity between offices, the firm upgraded its network with Riverbed appliances.