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Business briefs: Subaru is latest to issue recall over air bags

  • July 2, 2014 - 9:41 PM

Subaru is latest to issue recall over air bags

Subaru will recall about 8,500 Legacy, Outback and Baja cars from the 2003-04 model years because they are equipped with defective Takata air bag inflators, said Michael McHale, a spokesman for the automaker. Subaru joins Toyota, Honda, Nissan, Mazda, Ford, Chrysler and BMW, which last month said they were recalling more than 3 million vehicles worldwide because of the defect. The defective Takata’s air bag inflators contain improperly prepared propellant that can produce too much pressure when ignited, rupturing the inflator’s metal case. That could send metal fragments into the passenger compartment, causing injuries.

U.S. factory orders down slightly in May

Orders to U.S. factories fell in May, ending three months of gains. The Commerce Department reported that orders fell 0.5 percent, pulled down by falling demand for military and transportation equipment. That followed increases of 0.8 percent in April, 1.5 percent in March and 1.7 percent in February. Excluding military hardware, factory orders rose 0.2 percent in May from April. Orders for transportation equipment fell 2.9 percent. Orders for computers and electronic equipment fell 2 percent, the biggest monthly drop since December. Orders for durable goods, meant to last three years or more, fell 0.9 percent in May. Orders for nondurable goods slipped 0.2 percent.

ADP survey shows hiring rose last month

A private survey shows U.S. business hiring surged in June, a sign of stronger economic growth. Payroll processor ADP said that private employers added 281,000 jobs last month, up from 179,000 in the previous month. The figure suggests the government’s jobs report, to be released Thursday, could also show a significant gain from May’s tally of 217,000 jobs. But the ADP numbers cover only private businesses and often diverge from the government’s more comprehensive report.

Infosys whistleblower files new complaint

The whistleblower who helped trigger a federal investigation into visa practices by the outsourcing firm Infosys has filed a new complaint against the company, saying it continues to retaliate against him. Mark Griffin, an attorney for former Infosys employee Jay Palmer, confirmed his client filed a claim with the Department of Labor in March. “All I ever wanted was my job back and to work for the company,” Palmer said. The India-based firm said in an e-mailed statement that Palmer’s complaint rehashes issues a federal court in Alabama dismissed in 2012.

Oil price down despite decline in supply

The price of oil slipped despite a report from the U.S. Department of Energy that showed stockpiles of crude fell more than expected last week. Benchmark U.S. crude for August delivery fell 86 cents to $104.48 a barrel on the New York Mercantile Exchange, its fifth day of declines. The contract closed at a 10-month high of $107.26 on June 20. The Energy Department said U.S. crude oil stockpiles fell by 3.2 million barrels last week to 384.9 million barrels. Analysts had expected a drop of 1.7 million barrels. Oil quickly rose on the news, but sold off as the afternoon progressed.

NHTSA questions Chrysler over Jeep recall

The U.S. government’s road safety agency is accusing Chrysler of moving too slowly to fix some Jeep SUVs in a recall announced more than a year ago. The National Highway Traffic Safety Administration, in a letter, is asking the automaker why it’s taking so long to fix as many as 2.5 million older Grand Cherokees and Libertys with gas tanks behind the rear axles. The tanks could rupture in rear collisions, leak fuel and cause fires. The letter is the latest skirmish in a long fight between the automaker and agency over the safety of the SUVs, all built before the 2008 model year. Initially NHTSA wanted the company to recall 2.7 million of them, but Chrysler refused, saying they were as safe as similar vehicles.

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