Arizona Republic from Phoenix, Arizona • Page 25

STREET EDITION SjATE EDITION USINE The Arizona Republic MONDAY, FEBRUARY 29, 1988 In Brief Reagan to make ICC nomination President Reagan will nominate Karen Borlaug Phillips, a congressional staff economist, to be a member of the Interstate Commerce Commission, the White House has announced. If confirmed by the Senate, she will succeed Malcolm M.B. Sterrett Since 1987, Phillips has been minority economist on the Senate Finance Committee. i i 1 17. VW raises prices Volkswagen United States is raising prices of most 1988 models by an average $248, or 2.2 percent, effective today.

The U.S. marketing arm of the German carmaker said the price of its least expensive Golf subcompact is unchanged at $7,990. All of its Brazilian-built Fox subcompact models, which start at $6,290, also are unchanged. Cars affected by the price increases include the Golf GL two-door, which is up $205, to $8,695. The larger Jetta has been raised by $205, to $9,195 for the Ho-door with a five-speed transmission.

VW's Vana-gon GL van is up $350, to $16,590. The five-mild oval that surrounds the GM proving grounds allows' test drivers to perform -on vehicles at speeds well over 100 miles an hour. State's climate lures car-test centers Diverse conditions draw automakers about all types of testing," said Jim Mooncy, spokesman for the General Motors Corp. Desert Proving Grounds southeast of Mesa. He said the torturous desert sun and torrid temperatures are perfect for the testing of engine heating and cooling, the high-speed and banked oval and several miles of paved highways that duplicate, potholes and all, actual roads in Arizona, Michigan and New York roads.

"We used to find a perfect road (for testing) in Arizona and then come back to it sometime and find out that the county or state had fixed it up," said Mooney. "So we decided to duplicate some of the better roads." Now, without leaving the testing grounds, GM drivers can run their cars on long "stretches" of the Black Canyon Freeway, Val Vista Road, Elliott Road, and Higley Road, in Arizona, Pontiac Trail and See Arizona, page C3 Frank Turco N. Michigan proves ideal for cold-weather testing Supercomputer firm picks site Supercomputer Systems Inc. has decided to remain in Wisconsin, ending a battle with neighboring Illinois to attract the company, which is developing fast, high-powered computers. Wisconsin will help Supercomputing Systems to secure $25 million in private loans.

Eau Claire, will provide a $27 million incentive package by selling a building at a reduced cost, applying for development grants and helping raise money to secure other loans. The decision came after Eau Claire approved a $25 million backup aid plan if problems arise with the state's share of the package. Martin Marietta cuts 150 The Martin Marietta Corp. has laid off about 150 workers, and it appears that more layoffs are on the way. Citing the end of work on parts for the B-l bomber and equipment for anti-aircraft missiles, Martin Marietta officials confirmed they are making cuts in production staff.

About 450 people worked on the B-l and missile-component projects. Fleming Supermarkets sold Borman's Inc. has agreed to sell 29 of its 61 Farmer Jack supermarkets, primarily in Utah and Idaho. The agreements are with Fleming Cos. Inc.

for ownership and operation by Fleming retailers and with Albertson's Inc. A spokesman said the company also plans to dispose of the remaining 32 facilities in the West. Discussions are under way with other potential buyers, he said. Banks reach agreement Wells Fargo Co. said it has reached a definitive agreement to purchase the California subsidiary of Britain's Barclays Bank PLC for $125.7 million.

Barclays is California's 17th-largest bank, with assets of approximately $1.3 billion. Wells Fargo is the nation's lOth-largest banking company, with assets of $44.2 billion. BP division to buy Lear Petroleum BP America has announced a definitive agreement to acquire Lear Petroleum Corp. for $44 million in cash and assumption of $100 million of Lear's debt. The original offer to merge Lear, a supplier of natural gas, with a subsidiary of BP America, the U.S.

affiliate of British Petroleum was made last month. Under the agreement, holders of Lear's 11.8 million outstanding common shares would receive $2.65 per share, or about $31 million. Holders of Lear's 2.19 million preferred shares would receive $6 per share if two-thirds of the holders agreed to relinquish the right to dividends in arrears and permit the stock to be redeemed. The Arizona Republic Arizona's diverse weather and terrain have long made it one of the nation's premier tourists stops. But tourism isn't the only economic plum snared by the state because of its unusual environment.

The state's environmental diversity also played a key role in turning Arizona into one of the top locations for track and road testing of cars and trucks in the country, and possibly even the world. General Motors Ford Motor Chrysler Motor Nissan Motor Corp. of Japan and Volvo of Sweden all have full-service test centers and high-speed tracks in Arizona. Also, the British manufacturers of the Range Rover and the Jaguar have separate engineering and road testing operations in the state, and several other foreign automakers bring their vehicles to the state for road and track testing. Although the operations don't rank among the top employers in the state, combined, they employ as many as 1,000 people and pump millions of dollars annually into the economies of several communities and the state.

"Arizona is an ideal location for just durability of paints, fabrics and plastics, braking per-form-ance and tire wear. "And it's just a short drive up to the mountains for high-altitute testing," he added. David Champion, general manager of the Range Rover operation in Phoenix, said Arizona was selected by his British-based company, Land Rover, two years ago after a worldwide search that included sites in the Middle East, Australia and Europe. "It's got just about everything you would ever need to test a vehicle," he said. General Motors, which boasts the largest and oldest test center in the state, began testing its vehicles in Arizona in the same manner.

Drawn to the state by the hot weather and its many rural roads, the company began operating a small laboratory in Phoenix in 1937 and pcformed its hot-weather and durability testing on city streets and rural roads throughout the area. Today, it does much of its testing at its proving grounds, which opened in 1953. The center, which has as many as 600 workers on the grounds at a time, has 73 miles of test roads, including a five-mile, season. At the time, engineers were testing, anti-lock braking systems, but cold-weather tests also can involve ignition systems, heaters and other car parts. "Anything that is necessary to improving the product from a cold-weather angle," said Roy Fogle, manager of General Motors winter testing program at the Chippewa County Air-Industrial Park.

He mused whether the snow-trapped Pontiac would win his "Golden Reindeer" trophy for the worst accident of the winter tests. The park uses the former Kincheloe See Michigan, page C3 The Associated Press SAULT STE. MARIE, Mich. -Michigan's Upper Peninsula is a long way from the Motor City, but it has things that automakers badly need: bone-chilling cold plenty of snow and ice. On a day when the snow and ice covering an abandoned Air Force base challenge the wisdom of going outside, a car is driven around an oval test track to gauge the performance of critical parts.

A few moments later, the Pontiac pins into a snowdrift. But it will be pushed out, and the tests will go on until about April, v.hen the spring thaw signals the end of another winter testing I1'1 1 wmww i I State may need 2 area codes Demand likely in 2 years U.S. acting racist on Japan, prof says Claims attitude may hurt dealings Ban on Ford upsets official A Marin County, supervisor who is prohibited from leasing a Ford automobile because of the county's anti-nuclear stance said he will ask his colleagues on the board to rein in the five-member Peace Commission. The commission, created by voters in 1986, compiled a list of companies, among them Ford Motor it said were linked to the nuclear-weapons industry. The county is forbidden from doing business with these companies or investing in.

their stocks. Supervisor Robert Roumiguiere has been leasing Fords through a local business and said he'd like to continue doing so. "A Ford is like motherhood and apple pie," Roumiguiere said. He said he will ask his colleagues on the board to overhaul the Peace Commission by junking the ordinance that gives it broad powers over county purchases. The commission also has such companies as General Motors, IBM, Hewlett Packard, General Electric, Westinghouse, Sylvania, GTE, RCA and Motorola on its boycott list.

By Kathie Price The Arizona Republic You pick up the phone to call an associate. Do you dial the last four digits of the number? The whole number? One, plus the number, or one, plus the area code and the phone number, or a long-distance code, area code and the phone number? If you're at work, do you dial nine first? If you're in a hotel, do you call the operator or dial eight or nine? Well, just to complicate things a bit more, Mountain Bell may be adding another number to your dialing repertoire. Last year, Mountain Bell submitted a request to BellCore, a group that manages the North American numbering system, for another area code within The entire state currently is served by the 602 area code. "We have projected a need for another area code in two years," said Pat Evers, a spokeswoman for Mountain Bell in Phoenix. "We expect a decision will be coming Explosive growth in Arizona, particularly the business growth in the Valley, Casa Grande and Tucson, is the reason behind the request for the new area code.

Although phone numbers remain to be handed out to customers, Mountain Bell believes it is nearing capacity within the 602 area code. Until they get a new area code, the company caji temporarily fall back on using out-of-circulation phone See State, page C6 were succeeding," Pastin said. "I wonder if our trade complaints are even valid. The Japanese can't help but see they have been made political scapegoats." Blaming the Japanese for U.S. economic and trade woes may backfire.

Pastin believes the American market is an alternative for the Japanese, who could direct their trade to Asian neighbors, Europe or the Mideast. "Right now, we're the preferred alternative, but these other alternatives may be pursued aggressively," he said. Japan has taken a lot of American technology, he said, but has "done a better job using it than we have." He reminds Americans that "We too Were copiers and doers when we took from European industry." Pastin has worked closely with Japanese businesspeople, training mid-level Japanese managers to adjust to work in the United States and helping place Japanese projects in the United States through an organization called By Kathie Price The Arizona Republic Some of his colleagues accuse him of American-bashing, but Mark Pastin believes the current American treatment of the Japanese is a form of racism that may end up hurting the United States. The feeling of racism perceived by the Japanese stems from the past as well as the present, said Pastin, director of the Lincoln Center for Ethics at Arizona State University and a professor of management. Speaking at a Japan Week seminar recently in Phoenix, he said many Japanese have not forgotten World War II.

They believe the United States would never have used the atomic bomb on Germany or anywhere in Europe. They also remember the detention camps in the United States for Americans of Japanese descent. More importantly, today's hostility by Americans toward Japan stuns the Japanese, Pastin said. "We encouraged Japanese capitalism until we were losing and they Mark Pastin "The Japanese can't help but see they have been made political scapegoats." the Sandpiper Group. He has found many American beliefs about Japan to be "totally false." When he was a professor at Indiana University, a group of Japanese students enrolled.

Because they were Japanese, the students were not expected to be innovative or original, Pastin said. "Talk about a racial stereotype," he said. -See Racist, page C5 Follow the bouncing ages of corporate CEOs Texas Air board committee picks head Carl H. Pohlad, longtime Minneapolis-St. Paul civic, business and banking leader, has been elected chairman of the executive committee of the Texas Air Corp.

board of directors. Pohlad is the longest-standing member of the Texas Air board, having joined the board of predecessor Texas International Airlines in 1967. He continued as a board member of Texas Air when it was created as a holding company in 1980. Pohlad is president and director of the Marquette Bank in Minneapolis and has extensive other financial interests in the Midwest. Life insurance sales gain New sales of life insurance increased 11 percent in 1987 to $11 billion, representing an improvement over 1986 but short of other gains in the early 1980s.

The Life Insurance Marketing and Research Association, said that $9.8 billion in life policies were purchased in 1986. By contrast, sales of life insurance grew 25 percent in 1983 and 15 percent in 1985, according to the association. His basic studies, The Mobile Manager and Routes to the Executive Suite, hsve educated graduate students, helped executives understand where they fit in the larger scheme and guided executive recruiters. The professor, who teaches business at Michigan State University when he isn't offering confidential advice to chief executive officers, found two curious, telling splits, or indications of bimodality, in the age groupings. These splits occurred in 1965-1969 and See Average, page C6 less in the 1989-1994 period.

Such patterns obviously invite economic and political interpretations, but Jennings cautions against reading too much into them. It may be, he speculates, that it simply "becomes proper, smart." Jennings, a pioneer in the study of executive mobility, has been observing corporations since 1949 a.nd has written the book, so to speak, on the upward, sideways and downward patterns in the fortunes of high-ranking executives. management and the economy. But, one authority says, they could signify only a tendency of herd behavior. Professor Eugene Jennings found that in each five-year period from 1950 through 1969 the average age of newly appointed chief executives fell, from 57.7 in 1950-1954 to 50.1 in 1965-1969.

After that, the age at appointment rose steadily again, reaching 56.7 years in the 1980-1984 period. But now, he says, it is on the way down again, and he projects it will hit 52 years or The Associated Press NEW YORK People who attempt to determine just what is going on in the executive suite are eyeing a vital statistic that appears to have changed direction again. The average age at which chief executive officers are appointed to lead top corporations is declining again after a fairly steady rise since the middle and late 1960s. The changing numbers are likely to prompt a spate of explanations, along with interpretations about the consequences for.