Golub departs AIG after clashing with CEOAmerican International Group Inc. said Harvey Golub resigned as chairman, citing a bad working relationship with CEO Robert Benmosche. Robert Miller was named to succeed Golub, effective immediately. In a resignation letter released by AIG, Golub said Benmosche informed the board of directors that the two executives' working relationship is "ineffective and unsustainable." Golub said he elected to resign because he believes it is easier for the board to replace the chairman than the CEO.
GM to cover Volt battery with 8-year warrantyGeneral Motors Co. is guaranteeing the battery in its Chevrolet Volt electric car for eight years or 100,000 miles in an effort to inspire confidence in the new technology. The guarantee is better than warranties on GM's conventional car engines and transmissions, which are five years or 100,000 miles. The rechargeable Volt is due in showrooms this November. The vehicle can travel 40 miles on battery power before a small gasoline engine takes over to generate power so the car can go longer distances.
Some KFCs could close, Yum executives sayTop executives with the owner of KFC hinted that some U.S. outlets of the ubiquitous chicken chain could close if that's what it takes to make it more profitable overall. "I'd rather have 4,500 great-looking KFCs than 5,000 with 500 looking at being drive-by assets," Yum Brands Inc. CEO David Novak said during a conference call with industry analysts. KFC's second-quarter revenue at U.S. restaurants open at least a year fell 7 percent. The chain had 5,040 restaurants at the end of the quarter -- 4,187 owned by franchisees and 853 by the company.
Ford will put Mustang's V6 into Edge SportThe Ford Edge Sport is getting sportier with a new engine swiped from the Ford Mustang. Ford Motor Co. said that the 2011 Ford Edge Sport -- the high-performance version of the Edge, which is one of the country's top-selling midsize crossovers -- will have the same engine as the Mustang sports car. It's the first time the Mustang's 3.7-liter engine has gone into an Edge. The 305-horsepower V6 engine will give the Edge Sport 40 more horsepower than the current model.
Kellogg: Package liners caused stinky cerealKellogg Co. said that higher-than-normal amounts of certain chemicals in its package liners caused the unusual smell and flavor that prompted a recall of 28 million boxes of its cereal in late June. The foodmaker recalled Apple Jacks, Corn Pops, Froot Loops and Honey Smacks after about 20 people complained, including five who reported nausea and vomiting. Consumers said the cereal smelled and tested waxy or metallic. Kellogg said the liners had elevated levels of hydrocarbons including methyl naphthalene.
FDIC sues former IndyMac executivesBank regulators have accused four former executives of failed IndyMac Bank of negligence in making loans to home builders and are seeking a total of $300 million in damages. The Federal Deposit Insurance Corp., which took over California-based IndyMac when it collapsed two years ago, filed the civil lawsuit against the four executives in federal court in Los Angeles. The FDIC alleges in the suit that the four IndyMac officers "negligently" approved loans to homebuilders that had slim chance of being repaid. The four deny the FDIC's allegations.
Global PC shipments up 22% in 2nd quarterMarket research group IDC said that worldwide shipments of personal computers climbed 22.4 percent in the second quarter as businesses replaced aging computers and consumers continued to show interest in inexpensive laptops. The growth came in half a percentage point less than predicted because of slightly lower PC shipments in the U.S. and Asia. IDC analyst Loren Loverde said the group will likely reduce estimates for the current quarter and the rest of the year slightly, but he still calls the industry's performance in the quarter "quite good."
Comcast deal OK'd by European regulatorsEuropean regulators have approved Comcast's purchase of a controlling stake in NBC Universal. Comcast is buying a 51 percent stake in NBC Universal for $13.75 billion in cash and assets from General Electric Co. The European Commission says that the deal would not "significantly impede competition" in the region because Comcast doesn't own any cable assets in the European economic area.
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