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Visa stays as FIFA sponsor for 2 more World Cups

Written By Unknown on Rabu, 15 Januari 2014 | 03.39

ZURICH — FIFA says Visa has extended its World Cup sponsorship deal through the 2018 and 2022 tournaments.

The value of the deal was not disclosed.

FIFA President Sepp Blatter says "we are delighted to have such a strong global brand by our side until at least 2022."

Visa signed as a top-tier World Cup sponsor in 2007 following a controversial legal suit brought by FIFA's former financial services partner Mastercard.

FIFA paid more than $90 million to settle that case after a New York judge criticized the governing body for breaching Mastercard's exclusive negotiating rights.

FIFA marketing director Thierry Weil says "Mastercard did not come to us and declare an interest to be part of the World Cup 2018 and '22."


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Boeing confirms new 787 battery incident

Battery problems resurfaced on Boeing's 787 on Tuesday, after gas was discovered coming out of a battery on a plane parked in Tokyo.

Boeing said the problem on a Japan Airlines 787 was discovered during scheduled maintenance. No passengers were on board. The company said it appears that a single battery cell "vented," or released gas.

The incident comes a year after a fire in a lithium ion battery aboard a Japan Airlines 787 parked at Boston's Logan International Airport. That was followed nine days later by another battery incident that forced an emergency landing in Japan by an All Nippon Airways 787.

Those problems prompted the FAA and other authorities to ground all 787s for more than three months. The planes began flying again after Boeing changed the battery system, adding a tougher box to hold the battery and measures to contain any short-circuit or fire.

Boeing said those changes appear to have worked as designed in the battery incident on Tuesday. It said it's working with Japan Airlines to get the plane flying again.

Because the incident happened in Japan and involved a Japanese airline, Japanese authorities would take the lead in any investigation. If the Japan Transport Safety Board opens an investigation, the U.S. National Transportation Safety Board "would certainly participate," NTSB spokesman Peter Knudson said.

The NTSB expects to finish its investigation of the 787 fire in Boston by the end of March, and present findings at a public meeting this fall.

"Anything we can learn about the (latest) battery failure would be helpful" to the ongoing investigation, Knudson said.

Representatives for Japan Airlines did not respond to requests for comment.

___

AP transportation reporter Joan Lowy in Washington contributed to this report.


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Mass. holiday sales fall short of forecast

BOSTON — An organization representing retailers says holiday sales in Massachusetts fell short of the group's earlier forecast and lagged behind national results.

The Retailers Association of Massachusetts said Tuesday that a member survey showed retail sales for November and December increased two percent over the same period in the previous year.

The association, which had forecast a 3.5 percent increase in sales, said a strong month of November apparently did not carry over into December.

The National Retail Federation said holiday sales nationally rose 3.8 percent over the prior year. The head of the Massachusetts retailers group, Jon Hurst, noted that the national report included more Internet sales and was more heavily weighted by large national chains than was the state results.


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GM global sales hit 9.7M last year, beats VW

DETROIT — General Motors sold 9.71 million cars and trucks last year, probably not enough to beat out Toyota for the global sales crown, but about 200,000 better than Volkswagen.

Toyota, the sales champion in 2012, will report its sales next week. It only needs to show a little growth to beat GM again.

GM said Tuesday that sales of light vehicles worldwide grew 4 percent in 2013, led by growth in China and the United Kingdom. The company's sales in China rose 11 percent to set a record. U.S. sales were up 7 percent, slightly below the market's growth of nearly 8 percent.

Volkswagen said Monday that it sold 9.5 million light vehicles last year, setting a company record for overall sales.

Toyota sold roughly 9.7 million cars and trucks in 2012, recapturing the lead it ceded to GM in 2011.

GM was the top-selling carmaker for more than seven decades before losing the title to Toyota in 2008. But GM retook the sales crown in 2011 when Toyota's factories were slowed by an earthquake and tsunami in Japan. The disaster left Toyota dealers with few cars to sell. The Japanese company has since recovered.

Both companies say publicly that they don't care about who wins, but concede that the crown is an important morale booster for employees.

Toyota's global sales for the first nine months of the year reached 7.41 million vehicles, little changed from the previous year but outpacing General Motors to keep its lead over GM. Detroit-based GM sold 7.25 million vehicles from January through September.


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US correspondent barred from entering Russia

MOSCOW — Russia said Tuesday it has barred a journalist for U.S.-funded Radio Free Europe/Radio Liberty from the country for five years over a visa infraction, a charge rejected by the veteran American journalist, who described it as "bureaucratic trickery" to keep him out of the country.

The barring of David Satter, who has written several books about Russia, appears to reflect the Kremlin's nervousness about critical opinion before next month's Winter Olympics in Sochi.

Satter has been strongly critical of the games, which Vladimir Putin has made a priority of his presidency. In a recent commentary posted on CNN's website, Satter criticized the International Olympic Committee's "irresponsibility" in choosing Sochi and warned that it could lead to "one of the greatest catastrophes in the history of the Olympics."

Satter began working in September for RFE/RL, which is funded by the U.S. Congress to support human rights, democracy and other U.S. priorities.

Marie Harf, deputy spokeswoman of the U.S. State Department, said Tuesday the U.S. is disappointed that Russian authorities denied a visa to Satter and is monitoring his case.

"The U.S. Embassy in Moscow has raised our concerns on this case and the treatment of journalists and media organizations in general with Russian authorities. As we've said many times before, hindering the free flow of information undermines the kind of open environment for free debate and discussion that supports innovation and dynamisms," said Harf.

The Russian Foreign Ministry said the U.S. journalist had not applied for an extension of his visa within the prescribed time. Satter argued that the case was bureaucratic obfuscation, and RFE/RL President Kevin Klose said in a statement that barring Satter from entering Russia was a "fundamental violation of the right of free speech."

Satter insisted that the ministry had promised him a new visa, but failed to provide a letter of support on time, causing the migration agency to declare him in violation of visa rules. Satter left Russia on Dec. 4 on a court order and tried to obtain a new visa in Ukraine, but he said a Russian diplomat there read him a statement on Dec. 25 saying that Russian "competent organs" considered his presence in the country "undesirable."

Satter, speaking from London, said the Russian explanation "is a case of just bureaucratic trickery."

Klose said the U.S. Embassy has lodged a protest with the Foreign Ministry.

Satter, 66, first worked in Moscow in 1976-1982 as a correspondent of the British newspaper Financial Times, and has written extensively about the Soviet Union and Russia since then. His books include "Darkness at Dawn: the Rise of the Russian Criminal State," which focuses on the alleged role of Russian security agencies in apartment building explosions in 1999 that triggered the second war in Chechnya. An abridged Russian-language version was published recently in Moscow.

"To say that I'm not allowed on the territory of the Russian Federation at the request of the security services — this I haven't seen applied to a journalist in my entire career of writing about Russia," he said.

The expulsion of Western reporters was common during Cold War times, and the Kremlin has revived the practice in recent years. In 2011, Russia denied entry to Luke Harding, a Moscow correspondent for the London-based Guardian. In 2012, French freelance journalist Anne Nivat had her business visa canceled after she tried to gather information about opposition groups in the provinces.

Satter's expulsion will likely further strain U.S.-Russian ties, which have been hurt by disputes over Washington's missile defense plans, Russia's rights record and Ukraine, which in November ditched a pact with the European Union in exchange for a $15 billion bailout package from Russia.

Some Russian commentators criticized the government's decision to expel Satter, saying that it would only hurt the Kremlin's efforts to polish Russia's image before the Olympics.

"Whoever made this decision is a fool who has inflicted much more damage on Russia than any spy," Viktor Kremenyuk, a deputy director of the state-funded U.S.A. and Canada Institute, said in an online commentary.

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AP correspondent Deb Riechmann contributed from Washington.


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Holiday sales rise on discounts, online shopping

NEW YORK — Holiday shoppers were more than willing to spend during the holiday season, if they saw big discounts or were shopping online.

Sales rose 3.8 percent from last year for November and December combined, according to the National Retail Federation's analysis of federal figures. That was a healthy gain in a season that kept merchants worried right up until Christmas as people held off on spending.

That caution and increased online shopping made the holiday less festive at the mall. Shoppers stayed away from many traditional destinations like department stores and electronics stores.

The sales increase came in just shy of the trade group's forecast of a 3.9 percent gain. It was better than the 3.5 percent increase in 2012 and the 3.3 percent average for the past 10 years.

"It was a knock-down, drag-out battle between retailers to see who could discount the most to generate the most traffic," said Ken Perkins, president of Retail Metrics LLC, a research firm.

For retailers, those discounts came straight out of their profits. Many have cut their forecasts for the fourth quarter, and profits are expected to be the weakest since second quarter of 2009, when the economy was coming out of the Great Recession.

Perkins estimates that fourth-quarter profits will fall 0.7 percent from last year, the first decline since a 6.7 percent drop seen during the second quarter of 2009, according to his tally of 120 retailers.

January is already off to a slow start. Some stores like Express Inc. and Lululemon Athleta have said weak January sales are compounding their holiday-season woes. Express said it plans to continue heavy sales promotions, which it expects to last through the month.

"The consumer is fatigued and taking a break," Perkins said.

Retailers' fiscal year typically ends in late January or early February to include the pre-Christmas and post-Christmas seasons. A lot is at stake. November and December account for 20 percent of the retail industry's annual sales, on average.

Jack Kleinhenz, economist at the National Retail Federation, agrees that the holiday season was challenging.

"It ended on a solid pace, but it was tempered by consumers' selectivity and preference to discounts," he said.

The National Retail Federation's figures include online sales but exclude sales at automotive dealers, gas stations and restaurants

They're extrapolated from Commerce Department retail sales figures, which were also released Tuesday.

That report showed retail sales rose 0.2 percent in December compared with November. That followed strong gains in October and November, helped by healthy auto sales.

According to the National Retail Federation's analysis of holiday business, sales rose 3 percent in November and 4.6 percent in December from a year earlier.

The results highlight how Americans' shopping habits are changing, posing challenges for retailers in 2014.

Over the past few months, people have been buying cars and appliances, as they take advantage of lower interest rates and replace worn-out models. That has left less room to buy more discretionary items. In a stronger economy, people could do both.

Another issue for traditional retailers: shoppers' continuing shift to online shopping.

David Haskins, 32, of Greenville, N.C. did almost all his buying online this holiday, up from about half last year. He avoided department stores and bought a camera at Best Buy only because it matched an online price that was $200 cheaper.

Most of his shopping was done at Amazon.com, where he joined as a Prime member to get free shipping.

"When you are looking for something you need, you can just lay in bed and pull up a phone app," Haskins said. But he said he doesn't spend willy-nilly.

"I do a lot of research. I know exactly what I want before I make a purchase."

Haskins' shopping habits played out in the December figures.

Excluding spending on autos, gas and building supplies, retail sales rose a solid 0.7 percent in December from November. But the report shows less spending at traditional holiday outlets. Online sales grew 1.4 percent in December compared with the previous month and 14 percent from last year.

But furniture and electronic purchases fell last month. And sales at department stores fell 0.7 percent in December from November — and 3.3 percent for the full year.

For all of 2013, total retail sales rose 4.2 percent, the weakest gain in four years.

___

AP Economics Writer Josh Boak contributed to this report from Washington.

___

Follow Anne D'Innocenzio at http://www.Twitter.com/adinnocenzio


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Spy court judge slams proposed privacy advocate

WASHINGTON — The former chief judge of the Foreign Intelligence Surveillance Court is slamming the idea of having a privacy advocate on the secret court. He says it's unnecessary and possibly counterproductive.

A presidential advisory panel on National Security Agency reform recommended adding such an advocate. FISA court judges now hear only from the government seeking a spying warrant.

In a letter to the Senate Intelligence Committee Tuesday, U.S. District Judge John D. Bates says appointing an independent privacy advocate to the secret surveillance court would "hamper" the court's work.

Bates also rejected the panel's recommendation that the government seek court approval every time the FBI wanted to obtain information in cases of national security, known as a national security letter.


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CBS clobbers rivals with 15 of Top 20 shows

NEW YORK — The Nielsen ratings company says football and a slate of robust comedies and dramas gave CBS a big prime-time win last week.

CBS surged with its playoff game between the Indianapolis Colts and the New England Patriots, which drew nearly 32 million viewers as the week's most-watched program. The network claimed an additional 14 of the Top 20 shows on broadcast and cable.

NBC's only entry in the Top 20 was its Golden Globe Awards telecast, which ranked third with nearly 21 million viewers.

Overall for the week, CBS won with an average of 15.2 million viewers, while runner-up NBC had 7.2 million.

The week's top-rated cable networks were ESPN, averaging 4.19 million viewers, followed by USA and History.


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US stocks move higher a day after big loss

NEW YORK — The stock market rebounded Tuesday, putting it on track for the best day of the year. Gains were led by the technology sector, which got a lift from some positive comments from analysts.

KEEPING SCORE: The Standard & Poor's 500 index climbed 19 points, or 1 percent, to 1,838 as of 3:20 p.m. Eastern time. The Dow Jones industrial average gained 102 points, or 0.6 percent, to 16,360. The Nasdaq composite rose 68 points, or 1.7 percent, to 4,181.

CABLE BID: Time Warner Cable rose $4.59, or 3.5 percent, to $136.97 after Charter Communications intensified its pursuit of the company. Charter said Monday it would bring an offer directly to shareholders if needed after getting rebuffed by Time Warner Cable's management.

TECH MOVERS: Technology companies rose 1.8 percent, the most of the 10 sectors that make up the S&P 500.

Intel climbed 96 cents, or 3.8 percent, to $26.46 after analysts at JPMorgan raised their rating on the stock and predicted that demand for PCs will stabilize this year and that the company's CEO will focus improving margins and returns.

Jabil Circuit jumped $1.24, or 7.5 percent, to $17.83 after Goldman Sachs recommended buying the stock of the electronics company, predicting that its earnings for next year could be better than most analysts are expecting.

BANK EARNINGS: Investors were watching results from two big banks. JPMorgan Chase, the nation's biggest bank by assets, rose 18 cents, or 0.3 percent, to $57.88 after reporting gains in most of its divisions except for investment banking.

Wells Fargo was flat at $45.59 after the nation's biggest mortgage lender reported a sharp drop in its mortgage business even as its bottom-line income rose 11 percent.

CONSOLIDATION, NOT CAPITULATION: Despite the slow start to the year — the S&P 500 index is down 0.7 percent in 2014 after a gain of almost 30 percent last year — many investors remain optimistic that stocks will end this year higher as well, and will come to see the current slump as a pause rather than a collapse.

"Valuations have been certainly been pushed higher, so (stocks) are no longer cheap," said Eric Wiegand, senior portfolio manager at U.S. Bank Wealth Management. "But we would contend that they are still fair."

RETAIL SALES: Investors got some encouraging news on the economy on Tuesday, as report showed that Americans spent more on clothing and online in December Retail sales rose 0.2 percent last month, the Commerce Department said Tuesday. Excluding auto sales, retail sales gained 0.7 percent, compared to a forecast of 0.4 percent.

SURGING SURGERY: Intuitive Surgical jumped $26.53, or 6.8 percent, to $419.61 after the company said it will report revenue in the fourth quarter that is higher than Wall Street analysts are forecasting, as procedures performed with its robotic da Vinci system increased.

GAMESTOPPED: GameStop plunged $9.01, or 20 percent, to $36.30 after the world's largest video game retailer gave a profit forecast that fell below Wall Street's expectations for its crucial holiday quarter, despite higher-than-expected sales.

TREASURYS AND COMMODITIES: Bond prices fell. The yield on the 10-year Treasury note rose to 2.87 percent from 2.83 percent on Monday. The price of oil climbed 79 cents, or 0.9 percent, to $92.59. Gold fell $5.70, or 0.5 percent, to $1,245.40 an ounce.


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Dozens of trade-offs in $1.1 trillion budget bill

WASHINGTON — A massive $1.1 trillion spending bill, aimed at funding the government through October and putting to rest the bitter budget battles of last year, is getting generally positive reviews from House Republicans who are eager to avoid another shutdown crisis with elections looming.

Republicans say the favorable response to the all-encompassing spending bill reflects the desire of the rank and file to avoid a repeat of the politically damaging standoffs with the White House that led to last year's 16-day partial government shutdown. The closure sent congressional approval numbers plummeting and roughed up Republicans in particular.

Since then, they have regained support amid the troubled rollout of President Barack Obama's health care law.

"The shutdown educated — particularly our younger members who weren't here during our earlier shutdown — about how futile that practice is," said House Appropriations Chairman Harold Rogers, R-Ky. "There is a real hard determination now that we will reacquire and use the power of the purse that the Congress constitutionally has been given."

Rep. Steve Womack, R-Ark., said the new legislation would get "our country off this notion of shutting the government down" and would allow Republicans to keep the spotlight on other issues, a reference to the health care law that's weighing politically on Democrats.

Tea party favorites including Sen. Ted Cruz, R-Texas, also have been slow to criticize the spending measure, which appears likely to pass the Senate no later than Saturday and probably before then. Cruz was a key force in the strategy to shut down the government over funding of so-called Obamacare.

The spending measure contains dozens of trade-offs between Democrats and Republicans as it fleshes out the details of the budget deal that Congress passed last month. That pact gave relatively modest but much-sought relief to the Pentagon and domestic agencies after deep cuts last year.

Western Republicans from timber country were anxious about payments to towns surrounded by federal lands but were reassured that the payments would be extended though separate legislation. Gulf Coast lawmakers praised a provision aimed at delaying federal flood insurance premium increases from new flood maps that have proven faulty, but the provision left in place other changes enacted in 2012.

The GOP-led House is slated to pass the 1,582-page bill Wednesday, though some tea party conservatives are sure to oppose it.

Democrats pleased with new money to educate preschoolers and build high-priority highway projects are likely to make up the difference even as Republican social conservatives worry about losing familiar battles over abortion policy.

The bill would avert spending cuts that threatened construction of new aircraft carriers and next-generation Joint Strike Fighters. It maintains rent subsidies for the poor, awards federal civilian and military workers a 1 percent raise and beefs up security at U.S. embassies across the globe. The Obama administration would be denied money to meet its full commitments to the International Monetary Fund but get much of the money it wanted to pay for implementation of the new health care law and the 2010 overhaul of financial regulations.

"This agreement shows the American people that we can compromise, and that we can govern," said Senate Appropriations Committee Chairwoman Barbara Mikulski, D-Md. "It puts an end to shutdown, slowdown, slamdown politics."

The measure doesn't contain in-your-face victories for either side. The primary achievement was that there was an agreement in the first place after the collapse of the budget process last year, followed by the shutdown and another brush with a default on U.S. obligations. After the shutdown and debt crisis last fall, House Budget committee Chairman Paul Ryan, R-Wis., and Senate Budget Committee Chairman Patty Murray, D-Wash., struck an agreement to avoid a repeat of the 5 percent cut applied to domestic agencies last year and to prevent the Pentagon from absorbing about $20 billion in new cuts on top of the ones that hit it last year.

To be sure, there is plenty for both parties to oppose in the legislation. Conservatives face a vote to finance implementation of Obama's health care overhaul and Wall Street regulations, both enacted in 2010 over solid Republican opposition. A conservative-backed initiative to block the Environmental Protection Agency from regulating greenhouse gas emissions was dumped and social conservatives failed to win new restrictions on abortion.

Democrats must accept new money for sexual abstinence education programs they often ridicule, and conservatives can take heart that overall spending for daily agency operations has been cut by $79 billion, or 7 percent, from the high-water mark established by Democrats in 2010. That cut increases to $165 billion, or 13 percent, when cuts in war funding and disaster spending are accounted for. Money for Obama's high-speed rail program would be cut off — a defeat for California Democrats — and rules restricting the sale of less efficient incandescent light bulbs would be blocked.

The Pentagon will get about $6 billion more in war funding than the $79 billion Obama requested. The additional money is helping the Pentagon deal with a cash crunch in troop readiness accounts. Including foreign aid related to overseas security operations, total war funding reaches $92 billion, a slight cut from last year.

At the same time, the bill is laced with sweeteners. One is a provision exempting disabled veterans and war widows from a pension cut enacted last month. The bill contains increases for veterans' medical care backed by both sides and fully funds the $6.7 billion budget for food aid for low-income pregnant women and their children.

___

Associated Press writer Donna Cassata contributed to this report.


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Aluminum Revolution: Ford introduces a new F-150

Written By Unknown on Senin, 13 Januari 2014 | 23.16

DEARBORN, Mich. — Ford pickups have been doing the country's work for 66 years. They've hauled grain, towed logs and plowed snow. They've cleared debris after tornadoes and pulled floats in the Rose Bowl parade.

They've shouldered those loads with parts forged from steel. Until now.

On Monday, Ford unveils a new F-150 with a body built almost entirely out of aluminum. The lighter material shaves as much as 700 pounds off the 5,000-pound truck, a revolutionary change for a vehicle known for its heft and an industry still heavily reliant on steel. The change is Ford's response to small-business owners' desire for a more fuel-efficient and nimble truck — and stricter government requirements on fuel economy. And it sprang from a challenge by Ford's CEO to move beyond the traditional design for a full-size pickup.

"You're either moving ahead and you're improving and you're making it more valuable and more useful to the customer or you're not," Chief Executive Alan Mulally told The Associated Press in a recent interview.

Ninety-seven percent of the body of the 2015 F-150 is aluminum, the most extensive use of aluminum ever in a truck. And this isn't just any truck. F-Series trucks — which include the F-150 and heavier duty models like the F-250 — have been the best-selling vehicles in the U.S. for the last 32 years; last year, Ford sold an F-Series every 41 seconds.

The key question for Ford, and the people who sell its trucks, is: Will customers embrace such a radical change? Dealers who have seen the new F-150 say they expect to encounter some skepticism, but the change had to be made.

"We're aggressive, stretching the envelope," said Sam Pack, owner of four Ford dealerships in the Dallas-Fort Worth area. "I think you have to do that. If you don't, then you get into that predicament of being a 'me too' vehicle."

Still, it's a big risk. Ford makes an estimated $10,000 profit on every F-Series truck it sells, making trucks a $7.6 billion profit center in the U.S. alone last year. And the company has had some quality issues with recent vehicle launches, adding to dealers' worries. The 2013 Escape small SUV has been the subject of seven recalls.

The 2015 F-150 goes on sale late this year. While aluminum is more expensive that steel, Ford truck marketing chief Doug Scott says the F-Series will stay within the current price range. F-Series trucks now range from a starting price of $24,445 for a base model to $50,405 for a top-of-the-line Limited.

It's difficult to calculate how much more aluminum costs, since there are different grades of aluminum and steel. Pete Reyes, the F-150's chief engineer, said Ford expects to make up the premium by reducing its recycling costs, since there will be less metal to recycle, and by slimming down the engine and other components, since they won't have to move so much weight.

Aluminum was used on cars even before the first F-Series went on sale in 1948. It's widely used on sporty, low-volume cars now, like the Tesla Model S electric sedan and the Land Rover Evoque. U.S. Postal Service trucks are also made of aluminum.

Ford has spent decades researching the metal. Twenty years ago, the company built a fleet of 20 all-aluminum experimental sedans. Later, it used aluminum on exotic cars from Aston-Martin and Jaguar, brands it used to own. But up to now, Ford limited the aluminum on its trucks to the hoods and used steel for the rest.

New government fuel economy requirements, which mandate that automakers' cars and trucks get a combined 54.5 miles per gallon by 2025, are speeding the switch to aluminum. Chrysler's Ram is currently the most fuel-efficient pickup, getting 25 mpg on the highway. The current F-150 gets as much as 23 mpg. Ford won't say what the new truck's fuel economy will be, but says it will trump the competition.

That could be an especially important incentive for landscapers, carpenters and other small business owners focused on their bottom line.

"I think that's going to outweigh the aluminum part of it," said Brian Jarrett, a Ford dealer in Winter Haven, Fla., who hasn't yet seen the new truck.

Improvements in aluminum are also driving the change. Three years ago, for example, Alcoa Inc. — one of Ford's suppliers for the F-150 — figured out a way to pretreat aluminum so it would be more durable when parts are bonded together. Carmakers can now use three or four rivets to piece together parts that would have needed 10 rivets before, Alcoa spokesman Kevin Lowery said.

And Ford is able to take more risks. When the F-150 was last redesigned, in the mid-2000s, Ford was losing billions each year and resources were spread thin. But by 2010, when the company gave the green light to an all-aluminum truck, Ford was making money again. CEO Alan Mulally, a former Boeing Co. executive who joined Ford in 2006, encouraged his team to think bigger. After all, it was Mulally who led early development of Boeing's Dreamliner, which replaced aluminum with even lighter-weight plastics to be more efficient and fly further.

"Everything becomes more efficient once you take the weight out," Mulally says. He expects aluminum to be used across Ford's model lineup in the future.

Ford is convinced truck buyers will accept the change. The company says the new truck will tow more and haul more, since the engine doesn't have to account for so much weight. It can also accelerate and stop more quickly. Aluminum doesn't rust, Ford says, and it's more resistant to dents.

Reyes says the company planted prototype F-150s with three companies — in mining, construction and power — for two years without revealing they were aluminum. The companies didn't notice a difference.

Mulally says Ford's customers have already shown a willingness to adopt new technology. Forty percent of the F-Series trucks sold last year had Ford's more efficient EcoBoost engines, for example, which were introduced just three years ago. And Mulally says owners trust Ford.

Ford will still have a tough time wresting customers from the competition, mainly Chevrolet, GMC and Ram, says Jesse Toprak, an independent auto industry consultant in Los Angeles.

"Movement between brands in the full-size truck segment is extremely minimal," Toprak says. "It's the strongest loyalty of any segment."

Still, about 20 percent of pickup buyers traditionally are open to jumping from brand to brand based on features or price, Toprak said. The company with the newest, most advanced truck has the advantage in getting those customers, plus those who are new to the market, Toprak says.

Some steel remains on the truck. The frame beneath it is built primarily of high-strength steel, which Ford says will make it tougher and stiffer than the current frame. There's also steel in the front dashboard, because Ford thought steel was better at dampening nose from the engine.

In all, a four-door F-150 has 660 pounds of aluminum, or nearly double the average use of aluminum per vehicle used now, according to Drive Aluminum, an aluminum industry Web site. If the Ford truck is a success, use of aluminum could expand rapidly at the expense of steel.

"People are beginning to truly understand the value that aluminum can bring to the table," Lowery said.

Ford is expecting some issues with the design or the manufacturing as it makes the change, Mulally said. But the company is working hard to troubleshoot.

"I think the attitude is, expect the unexpected and expect to deal with it," he says. "Sometimes I think our core competency is scrambling. That's not unique to Ford."

Mulally, who grew up driving an F-150 on his family's farm in Kansas, particularly likes the new truck's front windows, which dip down 2 inches for better visibility.

"That's just an unbelievable innovation. You're sitting up there and you need to know where you are," he says. "I think that is absolutely a laser focus on what the customer wants and values."


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Fiat-Chrysler CEO to stay at least through 2016

DETROIT — Fiat's chairman says CEO Sergio Marchionne will lead a merged Chrysler and Fiat at least for the next three more years.

John Elkann told reporters at the Detroit auto show that he has a deal with Marchionne to stay at least through 2016.

Italian automaker Fiat SpA announced Jan. 1 that it reached a deal to acquire the remaining shares of Chrysler for $3.65 billion from a union trust fund.

Elkann says Marchionne built the two companies into one and will forge them into a strong company together.

Marchionne says the Fiat board will discuss where to locate the new company at its meeting on Jan. 29. Fiat SpA is headquarted in Turin, Italy, while Chrysler is in Auburn Hills, Mich.


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UK to assume debt in case of Scottish independence

LONDON — The British government has pledged that it will assume all U.K. government debt in the event Scotland votes for independence — a move meant to reassure markets ahead of what is likely to be a heated campaign.

The Treasury issued a paper Monday declaring that the "continuing" U.K. government will honor the contractual terms of the debt if Scotland votes to break away in a Sept. 18 referendum.

An independent Scotland would still need to pay its "fair and proportionate share" of the U.K.'s outstanding stock of debt, the Treasury added.

"In the event of independence, the full spectrum of assets and liabilities — past, future and contingent — would need to be considered in negotiations between the continuing U.K. and Scottish governments, on a case-by-case basis," the report said.

The pre-emptive statement from the Treasury is intended to provide clarity and keep a lid on borrowing rates by eliminating uncertainty, which may add to the risk premium demanded by investors. That could mean investors ask for higher interest rates on U.K government bonds that are often called gilts.

Though opinion polls continue to point to Scotland remaining in the U.K., some fund managers have voiced concerns recently about how the U.K. national debt of 1.38 trillion pounds ($2.2 trillion) would be divvied up in the event of a vote in favor of independence.

How the debt would be split up in the event Scotland leaves the union it's been part of since the early 1700s is no easy matter, though. Dividing by population or spending ratios come up with different outcomes, for example.

Pro-independence Scottish National Party leader Alex Salmond said the report showed the British authorities seriously planning for a possible Scottish exit. In the past, he had suggested that an independent Scotland would be within its rights to walk away from a portion of the debt unless there was discussion about sharing assets, like the pound.

"Any market uncertainty in the gilts market has been caused by their own refusal to discuss the terms of independence before the referendum," Salmond said.

"Today's announcement makes clear that Scotland would be in an extremely strong negotiating position to secure that fair deal," he added.

Scottish independence advocates say they want to continue to use the pound as the country's currency and remain in the European Union and NATO should independence take place.

Though Scotland is part of the U.K., it has had its own Parliament since 1999 and makes its own laws in many areas. Salmond's governing Scottish National Party supports independence, but the opposition Labour and Conservative parties both oppose it.


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Stocks edge lower in early trade; Lululemon drops

NEW YORK — Stocks are slightly lower in early trading on Wall Street as the pace of corporate earnings reports picks up.

The Dow Jones industrial average was down 30 points, or 0.2 percent, at 16,407 in the first few minutes of trading Monday.

The Standard & Poor's 500 index was down two points, or 0.1 percent, at 1,840. The Nasdaq composite was down three points, or 0.1 percent, at 4,170.

Lululemon, the high-end yoga apparel maker, slumped 15 percent after saying sales have dropped off in January and that its fourth-quarter results will be lower than analysts had expected.

Beam, the maker of Jim Beam, Maker's Mark and other liquors, jumped 24 after saying it had agreed to be acquired by Japan's Suntory for about $14 billion.


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Chevy sweep: Corvette, Silverado take show awards

DETROIT — General Motors' Chevrolet brand swept the North American Car of the Year and North American Truck/Utility of the Year on Monday, giving the resurgent Detroit automaker another boost at the beginning of the Motor City's annual auto show.

The Chevrolet Corvette Stingray received the car award, and the truck was the Silverado. The Chevy sweep came after General Motors Co. made the most appearances on this year's list finalists, which also included the Cadillac CTS and Mazda3 on the car side and Acura MDX and Jeep Cherokee on the truck/utility side.

The Cadillac ATS took top car honors last year.

The awards always kick off the press preview days for the North American International Auto Show, though they aren't affiliated with the show. Forty-eight full-time automotive journalists vote on winners from the list of finalists.

The win for the Corvette, which starts at just under $52,000, is a strong point of pride for the company. The Stingray debuted exactly one year earlier and represents a redesign of a model that's been in production for 60 years.

Alan Batey, soon to be GM's North American chief, said the company can't make enough Corvettes.

"Everything that's in the factory is pretty much customer sold," he said.

Batey added that the Chevrolet brand isn't as healthy as it needs to be globally, but the independent awards should help show that the brand and automaker are "on the move."

Sweeps are a frequent feature in the awards program: GM also nabbed the truck honor for the Silverado in 2007, while the car award that year went to the Saturn Aura. Ford pulled off a double-win in 2010 with the Fusion Hybrid and Transit Connect. Honda's Ridgeline and Civic pulled it off in 2006.

A vehicle must be all new or substantially changed to be eligible for the awards, now in their 21st year.

Organizers accept no advertising, though carmakers try to capitalize on the marketing value of the honors.

Incoming GM Chief Executive Mary Barra, who attracted a throng of moving journalists as she left the hall where the awards were announced, said the sweep shows that designers, engineers and product development specialists "sweated the details." The awards, she said, should translate into customers at least considering the Chevrolet brand.

"I hope that people look and if they haven't considered General Motors or Chevrolet, they'll get into the showroom, because I'm confident if they get into the showroom they'll see a lot of vehicles they like," she said.

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Follow Jeff Karoub on Twitter at https://twitter.com/jeffkaroub

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Follow Tom Krisher on Twitter at https://twitter.com/tkrisher


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HUD probes NJ's $25M Sandy marketing campaign

TRENTON, N.J. — Federal officials are taking a closer look at how New Jersey Gov. Chris Christie's administration spent $25 million to promote the Jersey shore in the wake of Superstorm Sandy.

Democratic Congressman Frank Pallone Jr.'s office says the inspector general at the Department of Housing and Urban Development will audit the campaign, which featured commercials in which the Republican governor and his family appeared.

HUD's Inspector General's Office conducted a basic review of the issue at Pallone's urging last year. Pallone says the office found enough evidence to justify a full audit of federal funds.

The administration paid $4.7 million to a politically connected public relations company over another firm that had bid $2 million less. The winning bidder proposed using Christie in the ads, while the other bidder did not.


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Stocks are mixed in early trading; Lululemon drops

NEW YORK — Stocks were mixed in early trading Monday, led by declines in energy companies, in a week when the pace of company earnings reports will pick up.

KEEPING SCORE: The Standard & Poor's 500 index fell one point, or 0.1 percent, to 1,842 as of 10:14 a.m. Eastern time. The Dow Jones industrial average was unchanged at 16,436. The Nasdaq composite rose one point to 4,175.

OIL SLUMP: Energy stocks led the declines in the stock market after the price of crude oil fell 60 cents, or 0.6 percent, to $92.12 a barrel. The price of oil is falling amid speculation that global crude supplies will remain plentiful even if demand picks up.

SLOW START: The stock market is getting the year off to a slow start after an exceptionally strong performance in 2013. The S&P 500 is down 0.5 percent so far this year, after climbing almost 30 percent last year. A weak December jobs report that was released Friday has left investors feeling cautious about the economy.

BIG BANKS AND OTHERS: JPMorgan Chase, Wells Fargo and Bank of America are among the big banks that will report fourth-quarter earnings this week. Best Buy and the UnitedHealth group are among the non-financial companies that will report earnings.

WATCHING EARNINGS: "Stocks are still in a wait-and-see mode," ahead of earnings, said Kate Warne, an investment strategist at Edward Jones, a brokerage firm. "We think we'll continue to see more signs of strength than weakness, and that's a positive tone for the market for the year."

HIGH-END ATHLETICS: Lululemon Athletica fell $9.64, or 16.2 percent, to $49.88 after the yoga apparel maker said sales have dropped off in January and its fourth-quarter results will be lower than expected.

BEVERAGES: Beam, the maker of Jim Beam, Maker's Mark and other liquors jumped $16.09, or 24 percent, to $83.05 after the company announced that it had agreed to be acquired by Japan's Suntory for $14 billion.

TREASURYS AND GOLD: The yield on the 10-year Treasury note was unchanged at 2.86 percent from Friday. Gold fell $1.40, or 0.1 percent, to $1,245.50 an ounce.


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Chicken plant closes again after cockroach cleanup

LIVINGSTON, Calif. — A California chicken farm that reopened over the weekend after it was shut because of a cockroach infestation says it's "voluntarily and temporarily" suspending operations again.

Foster Farms said Sunday it was closing the plant in Livingston for several days so it can properly implement new food safety measures. The company said in a statement that it is "exercising vigilance" and dedicating additional time to ensure its preventative plan is realized.

Work had resumed Saturday after Foster Farms announced that it met the demands of the U.S. Department of Agriculture by performing a thorough cleanup and treatment of the plant.

The plant closed Jan. 8 when inspectors found the cockroaches on five separate occasions in various parts of the plant over four months. That closure came three months after inspectors threatened a shutdown because of salmonella problems at the Livingston plant and two Foster Farms sites in Fresno.

Those facilities stayed open as the company agreed to improve safeguards. It also issued no recalls of products and instead advised consumers to handle chicken properly and to cook it thoroughly.

The company said in its statement on Sunday that maintenance workers will remain on the job during the voluntary closure. Other workers will be called back once full operations resume, the Fresno Bee reported (http://bit.ly/19phjm0). The company also said it has temporarily shifted production to its other plants in California's Central Valley.


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Fisker bankruptcy bidding heats up quickly

WILMINGTON, Del. — Hybrid Technology, led by Hong Kong billionaire Richard Li, has offered $55 million in an auction of Fisker Automotive's assets, just days after a bankruptcy judge in Delaware rejected Hybrid's plan to take over the failed electric-vehicle manufacturer in a private sale.

In court papers submitted Monday, Hybrid made a conditional offer of $30 million in cash and $25 million in credit for what it is owed as Fisker's senior secured lender. Hybrid also is promising that at least $5.5 million will go to Fisker's unsecured creditors, provided that the official committee of unsecured creditors supports its proposal to be the lead, or "stalking horse" bidder in the auction.

Hybrid also noted that its cash consideration was subject to its rights as a secured creditor in all collateral involving a $529 million loan commitment to Fisker from the U.S. Department of Energy. Hybrid recently paid $25 million for DOE's outstanding loan balance of more than $160 million, which resulted in a loss to U.S. taxpayers of $139 million.

Hybrid's court filing came after U.S. Bankruptcy Judge Kevin Gross capped its credit bid ability at $25 million — a third of the $75 million credit bid Hybrid wanted to use in a private sale — and ordered a competitive auction that was sought by Fisker's unsecured creditors committee.

While making the new offer, Hybrid also signaled that it plans to challenge the judge's ruling, which came after Chinese auto parts conglomerate Wanxiang Group Corp., working with the creditors committee, offered $35.7 million in cash as the starting bid in a competitive auction, contingent on Hybrid's credit bid being eliminated or capped.

"Hybrid believes that the ruling was erroneous, intends to seek appellate review or other relief as promptly as practicable, and expressly reserves all of its rights in that regard," attorneys for the company wrote in Monday's court filing.

Attorneys for the creditors committee did not immediately respond to messages seeking comment Monday.

Hybrid's court filing came as attorneys prepared for a Monday afternoon hearing at which the judge was to consider a potential sale date and bid procedures, and Wanxiang's request to supplant Hybrid as Fisker's bankruptcy lender.

California-based Fisker, which had planned to build cars at a former General Motors plant in Delaware, filed for bankruptcy protection in November. The move culminated a long downward spiral that began after Fisker received the $529 million DOE loan commitment.

Hybrid has previously indicated that it does not want to include the former GM site in Wilmington in its purchase of Fisker's assets and has no interest in building cars in Delaware.

Wanxiang, on the other hand, has said it would continue development and design of a second-generation line of Fisker vehicles, and that once such vehicles were ready for mass production in volumes requiring a separate manufacturing facility, it would manufacture them at the now-shuttered GM plant. Wanxiang had indicated in earlier court documents that it wants to resume production of Fisker's problem-plagued first-generation car, the Karma, in Finland and eventually shift production to a Michigan facility.

Fisker's bankruptcy filing came after the company drew $192 million on the Obama administration's green-energy loan before DOE officials suspended funding in 2011. Federal officials suspended the loans after Fisker failed to meet several sales and production milestones for its $100,000 Karma luxury car. The Karma's problems included vehicle fires and recalls, problems with battery packs, the bankruptcy of Fisker's primary battery supplier, and inventory losses from Superstorm Sandy, which destroyed hundreds of vehicles at a port in New Jersey.

In a separate bankruptcy case, Wanxiang recently purchased Fisker's former battery supplier, A123 Systems, which is now known as B456 Systems Inc.


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Video game players can check out Toyota concept

DETROIT — Video game players will get a chance to try out a virtual version of Toyota's new concept sports car that was unveiled in Detroit as a symbol of the automaker's design future, the company said Monday.

The Japanese automaker took the wraps off the FT-1 during press previews at the North American International Auto Show. The company said the "FT" in the red, rear-wheel-drive FT-1 stands for "Future Toyota" and the number represents "the ultimate."

Technical details of the vehicle aren't being released, but it's billed as a powerhouse. The prototype's engine is in the front, with a window in the hood to showcase what's underneath.

"This provocative concept truly captures the passion, excitement and energy of the Toyota we are evolving into," said Kevin Hunter, president of Toyota's Calty Design Research facility in Newport Beach, Calif., "and embodies elements of the emotion and performance."

The vehicle's development started two years ago, and the car was devised first in the Sony PlayStation Gran Turismo game environment. Starting Tuesday, the automaker says FT-1 will be available as a downloadable vehicle for PlayStation 3 Gran Turismo 6.

With a free online update, an event featuring the FT-1 will be made available to players. With a bronze or better in the FT-1 challenge at Laguna Seca, players get the virtual car. Drivers also will be able to purchase the virtual vehicle without completing the event.

The physical car, meanwhile, represents a change in Toyota's product development strategy from heavy reliance on consumer studies with an aim at pleasing everyone and taking fewer risks. Hunter said. The car is designed to stir emotions and push limits with Toyota design.

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Follow David Runk on Twitter: http://twitter.com/runkdavi


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