Detroit Free Press from Detroit, Michigan • 20

BUSINESS FRIDAY, MARCH 23, 200 1 2C DETROIT FREE PRESS i Lemons spark lawsuit Business HP 1 Compiled from Free Press stuff und news services. makers buy back about 100,000 vehicles in the United States an-; nually, and resell about 95 percent. The suit alleges that the seven plaintiffs bought Chrysler vehi-' cles from authorized Chrysler dealers without being told they were lemons. It alleges that the plaintiffs "would have elected not to purchase the vehicles in the first instance if they had received proper disclosure." According to the documents released in the North Carolina case, Chrysler buys back most of its problem vehicles before they pass all the way through the legal process. The company said such vehicles are repaired and sold with a one-year, unlimited-mileage Chrysler was mum about cars, suit says RtUTLRS A group of car buyers has sued Chrysler over its practice of fixing and reselling defective vehicles returned to the company by unhappy customers.

The suit stems from documents, uncovered in a North Carolina case against the Auburn Hills automaker, that show Chrysler has resold about 41,000 lemons over the last several years. The suit alleges that Chrysler, a unit of DaimlerChrysIer AG, resold lemons without telling customers what they were "Recycling lemons, at the highest possible price, with the littlest possible disclosure, is a standard business practice at Chrysler," said Doug Abrams, lead attorney in the lawsuit, which seeks class-action status. Chrysler says it has strict procedures for handling such sales, including requirements that dealers tell buyers about the history of such cars. All states have versions of lemon laws, which require automakers to pay customers or buy back vehicles that have chronic defects that are not fixed despite repeated work on them. All but three states require that consumers be told when they are buying a vehicle that has been bought back under lemon laws.

Consumer groups say auto INDUSTRY REPORT PEOPLE MAKING NEWS NWA, union may talk soon Members seek progress on pay levels, pensions By DAVID MORGAN REUTtRS PHILADELPHIA The head of the union representing Northwest Airlines mechanics said Thursday that contract talks could resume soon with the fourth-largest U.S. carrier. Nearly two weeks after President George W. Bush intervened to avert a threatened strike, a special presidential emergency board ended 3'2 days of closed-door hearings and told the two sides that it will recommend a settlement to the president by April 11. The law would allow the union to stage a walkout May 11, and union officials vowed to strike if the emergency board recommendation fails to address the mechanics' demands for improved wages, pension benefits and back pay- The Center for Creative Studies hired Mikel Bresee as director of Community Arts Partnership.

Bresee comes to Detroit from Chicago and brings more than 12 years of community arts and education development experience. Allan Nachman was elected to the board of directors for Hospice of Michigan, based in Southfield. Nachman is an investigator for the State Bar Grievance and a member of the Panel of Construction Arbitrators for the American Arbitration Association. Rebecca Cherry was promoted from account planner to vice president, account planner at Campbell-Ewald, a Detroit-based advertising and marketing communications firm. Dianna Bargerstock has joined G2 Consulting Group LLC, a Troy-based geotechni-cal and geoenvironmental firm, as a controller.

Bargerstock was controller and corporate officer as secretarytreasurer with Kessler Francis Cardo-za Architects, based in Detroit. Lason a Troy-based data management company, named William Brooks chairman of the board. Brooks is founder and chairman of the Brooks Group International Ltd. Arthur Andersen, a consulting firm, promoted Scott Bowser, John Cooper, Ronald Eisenhart, Lisa Harbin, Bryan Marx, Kyle McNa-mara, Stephanie Mountz, Gina Nienberg and Kathryn Walkowicz to seniors in the audit practice of the Detroit office. ArborComm an Ann Markets stir domestic AIRLINES Icahn earmarks money (or airline Financier Carl Icahn, chairman ofLowestfare.com, pledged $400 million to finance the effort to build or buy an airline for Lowestfare.com.

The move follows Icahn's failed bid to acquire Trans World Airlines Inc. for $1.1 billion this month. Lowestfare.com provides discount travel products and services to travelers and travel agencies. Lowestfare.com, originally named Global Discount Travel Services, started in 1995 as a result of the Karabu ticket agreement with TWA to sell tickets at a discount. March 12, a bankruptcy court approved AMR American Airlines proposal to buy TWA for $742 million.

The court allowed TWA to end its discount ticket arrangement with Karabu. AUTOS Freightliner to build 5,000 vans DaimlerChrysIer AG said its Freightliner unit's Gaffney, S.C., plant will assemble 5,000 Sprinter light vans as it seeks to overcome weak sales of its bigger trucks. This month FedEx the largest overnight package delivery service, ordered 1,900 Freightliner Sprinters. Freightliner and its rivals are looking to new markets as U.S. demand for big trucks is expected to fall about 45 percent.

It will assemble the vans using parts kits shipped from Mercedes-Benz's Sprinter plant in Dusseldorf, Germany. The German factory can make 20,000 vans annually for the United States, said spokesman Othmar Stein. The Sprinter will compete against Ford Motor F-se-ries vans and others. DaimlerChrysIer sold 140,000 Mercedes-Benz Sprinters worldwide last year, though they haven't been available in the United States, where the market for commercial vans is 360,000 vehicles annually. Trans-Industries posts losses Trans-Industries Inc.

lost 1.5 million, or 49 cents per share, on sales of $10.1 million in the fourth quarter. The Rochester Hills-based manufacturer of commercial-vehicle interior lights and components earned $54,206, or 2 cents per share, on sales of $11.4 million for the same quarter in 1999. For the year, Trans-Industries lost $2.3 million, or 73 cents per share, on sales of $44.68 million. It earned $225,643, or 7 cents per share, on sales of $39.5 million in 1999. Tire maker setting up D.C.

office BridgestoneFirestone Inc. has hired a new vice president to open an office in Washington, D.C, and coordinate the company's lobbying. Steven Akey, a public relations executive who specializes in transportation issues, is to become BridgestoneFirestone's division vice president for government affairs April 16. The Nashville-based company did not have a presence in Wash-. ington before last fall's congressional investigation into its recall of 6.5 million tires that tended to come apart on the road.

The tires have been linked to 174 deaths across the country. ENERGY Official accuses electricity dealers The manager of California's power grid says the state was charged $6.2 billion too much by wholesale electricity generators and traders between May and February. Reliant Energy Dynegy Duke Energy Williams Cos. and Mirant formerly Southern Energy are among 26 energy suppliers the California Independent System Operator believes overcharged the state. The generators say their prices were fairly based on market conditions.

The ISO made the allegation in OVERHEARD McDonald's Corp. is introducing a "Mighty Kids Meal," a bigger version of its Happy Meals that's aimed at children 8 to 10. The new meals will offer a double hamburger, double cheeseburger or six Chicken McNuggets. Like Happy Meals, fa "I Mikel Bresee Allan Nachman Rebecca Cherry Dianna Bargerstock Arbor online documentation and user interface design firm, appointed Lisa Tallman as information designer. Tallman comes from an engineering, consulting firm where she designed, wrote and edited instruction manuals.

National City Bank of MichiganIllinois, a subsidiary of National City named Karen Thompson as vice president and private banker of National City's Birmingham Private Client Group. Thompson has 18 years' experience in the financial services industry. Michelle Caldwell and Kathleen Hickey have been promoted to senior counselor at PR Associates Inc. in Detroit. Caldwell was an assistant account executive.

Hickey was a senior account executive. they will come with a toy but in a more mature, brown paper bag, the company says. man Miller Inc. reported fiscal third-quarter earnings that were on target, but warned that fourth-quarter profits would fall below expectations. The Zeeland-based company's earnings for the period ended March 3 rose to $33 million, or 43 cents per share, from $31.8 million, or 40 cents per share, a year earlier.

The company reported net sales of $538.4 million, up 12.6 percent from $478.2 million a year ago. The company said it expects to earn 37 cents to 43 cents per share in its fiscal fourth quarter. Wall Street analysts had been expecting the company to earn 55 cents per share, based on First Call estimates. RETAILING Barnes Noble down in 4th quarter Barnes Noble Inc. said it had a fiscal fourth-quarter loss because of sluggish holiday sales, write-downs at its B.

Dalton stores and losses at Barnes Noble.com in which it has about a 40-percent stake. The largest U.S. bookseller had a loss of $34.0 million, or 52 cents a share, compared with net income of $103.5 million, or $1.48, a year earlier. Sales rose 21 percent in the quarter ending Feb. 3 to $1.61 billion.

feu I -J A Northwest spokesman declined to comment on the union leader's remarks. The airline lat-' er issued a statement saying it Citll Ctn jJ bill, wwui v. iTtrna nionf tho hnain van nmmpnnntinn AMFA represents 10,000 Northwest mechanics, aircraft 1 cleaners and custodians and has been negotiating with the Eagan, airline since Octo- Delle-Femine said the union wants a three-year contract with a 28-percent to 32-percent pay increase, $80,000 to $100,000 in -back Dav. and an increase in pen sion benefits from $40 to $100 a month for every year worked. "We're going to strike on May 11 IP r.4- Innnt ttrn icmiAD nwrt ll ait iCdDt liiusc tiiicc issuca aic not addressed." Northwest is among several airlines with labor problems.

1 .1 A 1 il. I i. nirpn Hir nMN. i.nn rnr rier, faces a possible walkout by flight attendants while No. 3 Delta Air Lines Inc.

is embroiled in a contract dispute with the Air Line Pilots Association. fears trial Average finished down 97.52 points at 9,389.48, in preliminary 1. rni XTJ VHIVUlHVtUlia. 11C Will posite index, though, was up 67.47 points to 1,897.70. Over-" seas, siocks leu in Lionuon, 1 i T- TT Tr I riuiiMui rails, nung ivuug anu tvi Earlier this week, the Federal Reserve cited "the potential weakness in global economic conditions" as a possible risk to the U.S.

economy. A serious panic in Japan or Europe could force foreign inves- tnr tn null tViplr mnnpu nnf nf tVio United States to meet needs at home. that could trigger a collapse in the exchange rate of the U.S. dollar, which in turn could cause inflation, push up interest rates and drive the stock market to new lows. But foreign investors also might look to U.S.

investments, particularly Treasury bonds, as a safe haven in a global crisis. And for now, the dollar remains unusually strong against other currencies. The evidence of a global slowdown is growing. The United States, Japan and Europe are the main engines of the world econo my, and all three are weakening. Alfred R.

Glancy III Anthony Earley the region's premiere energy companies," said Anthony Earley chairman and chief executive ff- i rrrn t-i ouicer ior uil Cinergy. Shares of DTE fell 79 cents Thursday to close at $37.55 on the New York Stock Exchange. MCN's stock fell 2 cents to $24.79. Detroit-based DTE Energy had earnings of $468 million on sales of $5.59 billion in 2000. MCN Energy, another Detroit company, recorded profit of $108.9 million on revenue of $2.79 billion in 2000.

Contact ALEJANDRO BODIPO-MEMBA at 313-222-5008 or bodipofreepress.com Northwest is the dominant carrier at Detroit Metro Airport. It handles about 75 percent of all passengers who pass through Metro and employs about 10,000 workers in the area. But 0. V. Delle-Femine, national director of the Aircraft Mechanics Fraternal Association (AMFA), said emergency board chairwoman Helen Witt also urged the airline and the union to resume talks and reach their own tentative agreement before her three-member panel issues its decision.

"We've got a good opportunity," the AMFA leader said, adding that he'd be surprised if Northwest officials wouldn't meet. "I've got a good feeling that they may be interested," He described the response of Northwest representatives as noncommittal but said there could be movement on a bargaining session as early as next week. "Our position is that we're willing to meet now," Delle-Femine added. The U.S. slowdown is a major blow to Mexico, Canada, South Korea and other major exporting countries that rely on the huge U.S.

market. For the United States, a slowdown elsewhere gives a sickly patient a migraine on top of more fundamental domestic ills. "The weakness is almost starting in the United States and spreading abroad," said Sara Johnson, North American research director for Standard Poor'sDRI, an economic consultancy in Lexington, Mass. "But if this was simply a U.S. downturn, exports would help buffer the decline.

If the weakness spreads globally, we won't have that cushion of support." Johnson's firm projects that U.S. exports will grow 1.9 percent this year, down from 9.1 percent in 2000. Slowing export growth could bring the stock market down further by depressing corporate profits. Many high-tech companies are particularly vulnerable, because Europe and Asia are key markets that they were counting on to offset the domestic slowdown. Most stocks continued to slide Thursday.

The Dow Jones Indus standing common stock. "The FTC's action comes as welcome recognition of the efforts of the team of employees who worked so diligently to craft a first-of-its-kind solution to the FTC's concerns," said Alfred R. Glancy III, chairman and chief executive officer of MCN Energy Group. "For those who might believe otherwise, however, the FTC clearance was fully expected and did not factor into our decision to renegotiate the terms of our merger agreement." The renegotiated deal also extends the previous April 15 opt-out deadline to Dec. 31 in order to allow enough time for approval from the federal Securities and Exchange Commission and MCN shareholders.

"While this transaction has taken longer than originally anticipated, this FTC action is a major step forward in this process and toward creating one of Global slump may cut demand for U.S. goods By KEN MORITSUGU KNIGHT R1DDER WASHINGTON STAFF WASHINGTON Fears of a global economic slowdown, reflected in sharp stock market declines worldwide, are adding to growing nervousness about the sluggish U.S. economy. An overseas slump would not by itself drive the United States into recession, but it could worsen the domestic downturn by reducing demand for U.S. exports.

Ultimately, the fate of the U.S. economy rests largely at home. Nearly 90 percent of U.S.-pro-duced goods and services are sold here. And the greatest risk for the economy is a collapse in consumer spending or in business investment in factories and equipment. Exports rank a somewhat distant third.

"It would take a sharp slowdown abroad to slow down things here," said Jay Bryson, global economist at First Union Corp. in Charlotte, N.C. In fact, it's much more likely that the United States is dragging down the rest of the world. MERGER I FTC signs off on combining DTE, MCN s' fy! f.LDt a filing with the Federal Energy Regulatory Commission. The ISO doesn't expect federal regulators will ask generators to refund the entire amount, said ISO General Counsel Charles Robinson.

Generators said the complaint was motivated by politics. "This is nothing more than an attempt by the administration in California to shift the blame in the California crisis away, from the governor," Reliant spokesman Richard Wheatley said. MEDIA Viacom-owned stations to cut jobs Detroit's Viacom-owned television stations, WKBD-TV (UPN, Channel 50) and WWJ-TV (CBS, Channel 62), have eliminated seven positions in technical production as the stations merge operations at Channel 50's South-field building. The stations' vice president and general manager, Mike Dun-lop, called the job losses unfortunate but necessary to eliminate duplicative staffing. He said a few more job losses could occur as Channel 62 leaves Detroit's Stroh Place.

orrice ruRNisHiNCS Herman Miller issues warning Office furniture maker Her- From Page 1C its fixed price, said Cheryl Conway, spokeswoman for MichCon. But the company said it will file an application this summer with the Michigan Public Service Commission to set a gas cost-recovery factor, based upon market-price forecasts. The application, if approved, would go into effect on customers' January 2002 bills. Following the completion of the merger, the combined company will have 11,500 employees, 2.1 million electric customers and 1.2 million natural gas customers in Michigan. The name of the company will be DTE Energy.

The deal, which was revised Feb. 28, calls for DTE to purchase the outstanding shares of MCN Energy for $24 a share. In October 1999, DTE originally agreed to pay about $28.50 a share for MCN Energy's out.