GM adding 1,000 jobs in Michigan

GM adding 1,000 jobs in MichiganGeneral Motors is adding 1,000 jobs in Michigan to develop more electric and hybrid vehicles similar to the Chevrolet Volt, which it officially introduced Tuesday, the company said. The jobs, in engineering and research, are the latest commitment by GM to broaden its lineup of energy-efficient models as well as to invest in its home state, which has the nation's second-highest unemployment rate, 12.8 percent. Also, Chrysler said it would hire 1,000 engineers and technicians by early next year to work on its next generation of small and midsize cars.

Merck moving president up to CEOKenneth Frazier, president of Merck, is to become chief executive of the pharmaceutical giant at the beginning of next year, the company said Tuesday. Frazier, 55, a lawyer by training who graduated from Harvard Law School, is believed to be the first African-American tapped to run a global drug powerhouse. Merck, which merged last year with Schering-Plough in a $49 billion deal, is the world's largest drugmaker after Pfizer.

Toyota issues non-recall of 650,000 Prius carsToyota is replacing pumps that cool the hybrid system in 650,000 Prius cars. Toyota Motor Corp. spokesman Paul Nolasco said Tuesday the fix is needed in Prius cars for model years 2004 to 2007. When the pump malfunctions, the car's hybrid system switches off to prevent overheating and the vehicle's regular gasoline engine takes over, he said. But the Japanese automaker is adamant the repair being carried out isn't another recall. It is calling the move a "customer satisfaction campaign" because the problem doesn't warrant a recall under regulations where the vehicles have been sold, according to Nolasco. Of the Prius cars that need fixing, 390,000 are in North America.

Economy not growing fast enough: BernankeThe economy isn't growing fast enough to significantly reduce unemployment and low consumer confidence remains a barrier to a faster recovery, Federal Reserve Chairman Ben Bernanke said Tuesday during an event at Ohio State University. Bernanke said the economy needs growth of 2 percent to 2.5 percent just to create enough jobs to accommodate new people looking for work. The Fed chairman also expressed worries that households don't have enough confidence yet to make purchases or consider changing jobs or locations. He called this "part of the barrier to faster growth in the recovery." Bernanke also signaled concern about the 6.2 million people unemployed for more than six months, 42 percent of all unemployed Americans.

Motorola splitting into two companiesMotorola Inc. will split into two companies effective Jan. 4, finalizing the breakup of one of the founders of the U.S. electronics industry. Motorola is splitting its consumer-oriented side, which makes cell phones and cable set-top boxes, from the side that sells police radios and barcode scanners to government and corporate customers. Shareholders of record on Dec. 21 will receive shares in both the consumer business, Motorola Mobility, and the professional business, Motorola Solutions.

Novartis plans to cut 1,400 U.S. sales jobsSwiss drugmaker Novartis AG said it'll eliminate 1,400 U.S. sales jobs by Jan. 1. The company said it will cut the jobs from the sales force of its general medicines business, as sales at that business will be hurt after the patent on its high blood pressure drug Diovan expires in 2012. Novartis said it has 6,449 employees in its U.S. general medicines business, meaning it'll eliminate about 22 percent of the staff of that business. The company said it has 18,519 employees in the U.S. and about 100,000 worldwide.

Euro zone inflation stays below 2%Inflation in the 16 countries that use the euro remained below the European Central Bank's target of 2 percent in November, while the unemployment rate rose to a 12-year high in October, official figures showed Tuesday.