Ford discloses its emissions-test review
Ford Motor Co. alerted federal regulators that there could be a problem with its emissions testing, saying employees reported potential flaws months ago in the way the company certifies its fuel-economy ratings.
The automaker has hired an outside firm to investigate certain specifications used in its testing, according to a statement. A group of employees raised concerns in September, and Ford said it reported the issue to the U.S. Environmental Protection Agency and the California Air Resources Board this week.
The investigation doesn't involve looking for defeat devices, which Volkswagen AG used in the diesel-emissions scandal that's cost the company at least $32 billion. Ford said it hasn't found any inaccurate fuel-economy ratings yet. Still, the automaker is considering changes to the way it tests to ensure vehicles meet regulations.
"It has been a long and deep discovery process," Kim Pittel, Ford's group vice president of sustainability, environment and safety engineering, said in an interview. "At this time, there's been no determination that we have an issue with our fuel-economy labels or our emissions certification. It's too early in the investigation to say that."
The first vehicle Ford is evaluating as part of its review is the 2019 Ranger pickup, which went on sale early this year.
-- Bloomberg News
Google ends policy of forced arbitration
SAN FRANCISCO -- Google says it will no longer require that its workers settle disputes with the company through arbitration, responding to months of pressure from employees.
The company said Thursday that the change will take effect March 21 and will apply to current and future employees. Google said last year that it would end forced arbitration for sexual harassment and assault cases.
Mandatory arbitration requires that employees settle their disputes privately and outside of court. The practice lent itself to secrecy and is widespread in U.S. employment contracts.
Google workers staged a walk-out late last year and continued to press the tech giant to drop forced arbitration.
It said it would not require arbitration in its contract worker agreements. But it will not require vendors to change their own contracts.
-- The Associated Press
30-year home-loan rate falls to 4.35%
WASHINGTON -- U.S. long-term mortgage rates dipped this week to the lowest average in more than a year, providing a possible boost to the start of the spring homebuying season in March.
Mortgage buyer Freddie Mac says the average rate on the benchmark 30-year, fixed-rate mortgage declined to 4.35 percent from 4.37 percent last week. The key 30-year home borrowing rate averaged 4.40 percent a year ago. This week was the lowest average since the week of Feb. 8 last year.
The average rate this week for 15-year, fixed-rate loans declined to 3.78 percent from 3.81 percent.
Mortgage rates hew closely to changes in the interest charged on 10-year U.S. Treasury notes. Lower borrowing costs should help boost home sales, as rising mortgage rates in 2018 caused homebuying to tumble last year.
-- The Associated Press
Dip in jobless claims signals strong hiring
WASHINGTON -- Fewer Americans sought unemployment benefits last week, a sign that layoffs declined and hiring is likely strong.
The Labor Department said Thursday that weekly applications for unemployment benefits fell 23,000 to a seasonally adjusted 216,000, a very low level by historical standards. The four-week average, a less-volatile measure, rose to 235,750.
Businesses are hiring at healthy levels and posted the most open jobs in nearly two decades in December. With demand for workers strong, companies are holding on to their employees.
Manufacturing output and retail sales have both fallen in the past two months. Still, consumer optimism has bounced back, according to some measures, after falling sharply in the wake of the 35-day partial government shutdown. That could revive spending going forward.
The economy expanded at a 3.8 percent annual rate last summer and fall. But analysts forecast growth will have weakened in the final three months of last year, to roughly 2 percent to 2.5 percent.
-- The Associated Press
Louisiana leader defends tax-break shift
BATON ROUGE -- Gov. John Bel Edwards defended his changes to Louisiana's major industrial tax-break program, telling hundreds of business leaders Thursday that the state remains generous and competitive to industry.
The Democratic governor's comments came at an all-day business conference Edwards called in Baton Rouge, in which he encouraged business leaders to "stay engaged" and offer ideas to his administration.
But Edwards also refused to roll back limits enacted on the decades-old Industrial Tax Exemption Program, which provides property-tax breaks up to 10 years for manufacturers. He said his changes created "a better balance."
Since taking office in 2016, Edwards limited the program to an 80 percent tax break over two five-year terms and required businesses to create or retain jobs with the projects seeking exemptions. In addition, parish councils, police, sheriffs and school boards that stand to lose the property-tax money can jettison the tax-break applications.
The changes have provoked criticism from business groups, who described the regulations as confusing, complicated and damaging to economic development.
-- The Associated Press
Tesla sedan loses 'recommended' listing
Tesla's stock price sank Thursday after Consumer Reports blasted the reliability of the company's new Model 3 sedan and dropped it from a list of recommended vehicles.
"Consumers expect their cars to last -- and not be in the repair shop. That's why reliability is so important," said Jake Fisher, senior director of automotive testing at Consumer Reports.
Problems reported by Model 3 owners include loose body trim and glass defects, the organization said. The glass in the back window in Consumer Reports' own Model 3 test car cracked in the parking lot during a cold snap.
Despite the reliability problems, the Model 3 ranks high in Consumer Reports' customer satisfaction survey, which gauges buyer satisfaction over time.
-- Los Angeles Times
Business on 02/22/2019