Friday, April 1, 2005

Nation/World Briefs

Detroit News staff, wire and Bloomberg News reports

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Court

DCX case testimony, evidence not stricken

WILMINGTON, Del. -- U.S. District Judge Joseph Farnan, who is presiding over the DaimlerChrysler AG fraud trial, issued several rulings Wednesday that denied most of the requests by DaimlerChrysler and billionaire investor Kirk Kerkorian to eliminate testimony and evidence from the opposing side. Kerkorian, the largest investor of the former Chrysler Corp., is suing DaimlerChrysler and its CEO, Juergen Schrempp. He claims they plotted a takeover of Chrysler in 1998 and robbed investors of a takeover premium by characterizing the deal as a merger of equals. The trial in Wilmington, Del., wound up in February 2004 and a verdict is pending.

 

Retail

Sears offers new line of women's clothing

Sears Holdings Corp., the newly created No. 3 U.S. retailer, will offer a new women's clothing line from BCBG Max Azria Group to boost sales at its Sears department stores. BCBG Max Azria's Parallel spring collection of contemporary tops and pants will only be available at Sears, Hoffman Estates, Ill.-based Sears Holdings said Thursday. Terms of the agreement with Vernon, Calif.-based BCBG Max Azria weren't disclosed. Parallel will be marketed to women ages 18 to 35, the company said, and stocked at only about 150 stores of its 870 stores this season.

J.C. Penney, Saks shares jump 8 percent

NEW YORK -- Shares of J.C. Penney Co. Inc. and Saks Inc. each climbed more than 8 percent Thursday, fueled by published reports this week that both retailers could be selling their businesses. Women's Wear Daily's reported Thursday that Cerberus Capital Management LLP and the Carlyle Group are teaming up to make a bid for Penney, which is based in Plano, Texas. Penney said in a statement that its policy is "not to comment on such rumors." But the statement also quoted Chairman and Chief Executive Myron Ullman as saying the company has developed a long-range plan that it will discuss at an analyst meeting on April 19-20. The Carlyle Group declined to comment on the report. Officials at Cerberus Capital did not immediately return calls.

 

Airlines

Minn. mechanics union boss is suspended

EAGAN, Minn. -- The president of the Twin Cities mechanics union at Northwest Airlines has been suspended by the airline for questioning the safety of outsourced aircraft repairs, the union said. Northwest suspended Ted Ludwig from his job as a mechanic for 60 days without pay, the union he heads, the Aircraft Mechanics Fraternal Association, said Wednesday. While refusing to comment on the suspension, Northwest said aircraft safety is never compromised. Two weeks ago, Northwest warned Ludwig he could lose his job if he continued to suggest that aircraft maintenance performed by third-party repair facilities could pose a danger to passengers.

Continental flight attendants reject deal

HOUSTON -- Continental Airlines flight attendants rejected a tentative deal to cut wages and benefits, but the nation's fifth-largest carrier said it would implement concessions approved by other unions, including those representing pilots and mechanics. Continental said early Thursday it would continue discussions with flight attendants, noting that their "current levels of pay and benefits for flight attendants are not sustainable."

 

Software

Microsoft sues 117 identity theft suspects

REDMOND, Wash. -- Microsoft Corp. on Thursday filed 117 federal lawsuits against unnamed defendants, accusing them of a high-tech form of identity theft known as "phishing." The lawsuits, filed in U.S. District Court for the Western District of Washington, accuses the "John Doe" defendants of using mass e-mail or pop-up ads to coerce consumers into revealing personal information such as bank account information, passwords or social security numbers. The Redmond-based software company said it filed the lawsuits in hopes of uncovering some of the largest operators.

 

 

Mazda issues a recall for 67,000 minivans

Mazda Motor Corp., Japan's fourth-biggest automaker, said it will recall 67,119 minivans in the country to fix faulty shift levers. The recall, which starts today, affects Mazda MPV, Premacy and Ixion models, which the company built for its biggest shareholder, Ford Motor Co., Mazda said in a filing Thursday to the Tokyo-based transport ministry. The faulty vehicles were made between Feb. 25, 1999, and Feb. 29, 2000, the company said. Faulty components are finding their way into the vehicles made by different carmakers as they increasingly share more parts to cut costs. Automakers fix the vehicles at no cost to customers.

Continental AG's 4th quarter profits triple

HANOVER, Germany -- Automotive supplier Continental AG's fourth-quarter profit more than tripled, reflecting higher demand for electronic car parts and replacement tires. Net income rose to $315.2 millionfroma year earlier. Sales rose 11 percent to $2.8 billion . Automotive suppliers including Continental are gaining sales as carmakers install safety devices and other electronic parts. The Hanover-based company expects U.S. deliveries of electronic stability systems to triple by 2006 because of orders from makers of sport-utility vehicles, including General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler unit. The company also plans to raise tire prices by between 1 percent and 4 percent this year.

Toyota appoints new marketing manager

Toyota Motor Corp. appointed Jim Farley, vice president of its youth-oriented Scion brand, as vice president for Toyota marketing, replacing Jim Lentz, who has been appointed new general manager of the Toyota division. Toyota Motor Sales USA said Farley's and other new appointments follow previous top management changes at its U.S. operations. Mark Templin, formerly vice president at Lexus, will replace Farley at Scion.

 

 

Economy

China pledges more curbs on investments

SHANGHAI, China -- China's top leaders have pledged more curbs on investment, warning that excess spending on steel factories and surging prices for iron ore threaten the economy. The moves were announced by the government following a meeting of the State Council, China's Cabinet, the official Xinhua News Agency reported. China has been imposing curbs on bank lending and restricting investment in some sectors it says have been expanding at an unsustainable pace, risking financial problems and pushing prices dangerously higher.