ReportWire

Tag: Consumer product manufacturing

  • Cocoa farmers fear climate change lowering crop production

    Cocoa farmers fear climate change lowering crop production

    KOREAGUI, Ivory Coast — For more than 40 years, Jean Baptiste Saleyo has farmed cocoa on several acres of his family’s land in Ivory Coast, a West African nation that produces almost half the world’s supply of the raw ingredient used in chocolate bars.

    But this year Saleyo says the rains have become unpredictable, and he fears his crop could be yet another victim of climate change.

    “When it should have rained, it didn’t, it didn’t rain,” Saleyo said as he inspected the ripeness of one of his cocoa pods. “It’s raining now, but its already too late.”

    Cocoa farming employs nearly 600,000 farmers here in Ivory Coast, ultimately supporting nearly a quarter of the country’s population — about 6 million people, according to the Coffee-Cocoa Council.

    And it makes up about 15% of Ivory Coast’s national GDP, according to official figures.

    National production remains on track because the amount of land being cultivated is on the rise. But experts say small-scale farmers are hurting this year. For the cocoa tree to fruit well, rains need to come at the right times in the growing cycle. Coming at the wrong times risks crop disease.

    Some who are used to producing 500 kilograms are looking at only 200 kilograms this year, said Jean Yao Brou, secretary-general of the Anouanze cooperative, which helps farmers bring their crops to markets.

    “Our producers have big worries with the production,” he said.

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  • Norwegian battery firm plans $2.6 billion plant in Georgia

    Norwegian battery firm plans $2.6 billion plant in Georgia

    ATLANTA — A Norwegian company will build a giant electric battery factory just southwest of Atlanta, company and state officials announced Friday, investing up to $2.6 billion over multiple phases.

    Freyr Battery said it would build an initial plant that would produce batteries that could hold 34 gigawatt hours of electricity each year. Among battery plants currently operating, that would be the second-largest worldwide, behind a factory owned by Panasonic and Tesla in Nevada.

    Freyr CEO Tom Jensen told attendees at the announcement in the Atlanta suburb of Newnan that the company’s vision of using renewable energy to make batteries could play an important role in reducing carbon emissions from electricity generation and transportation. The company’s initial plan is targeted toward storing electricity produced by renewable sources and releasing it later, but Jensen said sales to vehicle makers could also be included.

    Jensen said battery production is a “massive growth opportunity,” predicting 70% of decarbonization efforts will somehow include batteries.

    “We want to build something that matters, something that we can be proud of something that will matter for our children,” Jensen said. “Because at the end of the day, the world needs to rapidly decarbonize the society.”

    The company said it plans an initial investment of $1.7 billion, and would hire 720 people at a site it has purchased in an industrial park near Newnan, about 35 miles (55 kilometers) southwest of Atlanta. Phases through 2029 involving $700 million of additional investment could include more production lines, material processing and other activities.

    Employees are projected to make an average of $60,284 a year, said Molly Giddens of the Coweta County Development Authority.

    Freyr, named for the Norse god of peace and fertility, rain, and sunshine, is also building a large factory in northern Norway and is planning a battery cell production facility in Vaasa, Finland.

    The company aims to make batteries, an electricity-intensive process, using renewable energy. In Georgia, that could mean buying electricity from a dedicated solar facility with battery storage run by a third party, the company said.

    Freyr said it looked at 130 sites in 25 states before selecting Georgia, citing the availability of engineers trained by Georgia Tech and other schools, job training, and proximity to Atlanta’s big airport, Savannah’s port, railroads and highways.

    The company said it sees opportunities in the United States in part because of incentives for renewable energy passed by Congress earlier this year. Freyr said it intends to seek federal grants or loans.

    In addition, the company said it is getting “strong” financial incentives from state and local officials in Georgia. The state plans to pay for worker training, and Freyr will eligible for up to $4.5 million in state income tax credits over five years, as long as workers make at least $31,300 a year. Coweta County will give property tax breaks for 20 years, Giddens said, not disclosing a projected value. She said the company would also get a “quality jobs creation grant.”

    It’s the second huge battery factory announced in Georgia. Korean firm SK Innovation has built a $2.6 billion plant in Commerce, northeast of Atlanta, with plans to hire 2,600 workers eventually.

    The state has targeted the electric vehicle industry. Hyundai Motor Group has announced plans to invest $5.5 billion in a plant near Savannah and hire 8,100 workers, also planning to make batteries there. Electric truck maker Rivian has plans to build a plant east of Atlanta, investing $5 billion and employing 7,500 workers.

    ———

    Follow Jeff Amy on Twitter at http://twitter.com/jeffamy.

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  • Adidas lowers earnings outlook after breakup with Yeezy

    Adidas lowers earnings outlook after breakup with Yeezy

    Shoe and sports apparel maker Adidas has lowered its earnings forecast for the full year to account for losses from ending its partnership with rapper Ye, formerly known as Kanye West, in response to Ye’s antisemitic remarks

    FRANKFURT, Germany — Shoe and sportswear maker Adidas on Wednesday lowered its earnings forecast for the full year to account for losses from ending its partnership with rapper Ye, formerly known as Kanye West, in response to the artist’s antisemitic remarks.

    Adidas cut its sales outlook for the year as part of its third-quarter earnings statement, to a low single digit increase from a mid-single digit increase, and net profit from continuing operations to 250 million euros ($252 million) instead of 500 million euros.

    The company, based in Herzogenaurach, Germany, had previously said ending the partnership with Ye’s Yeezy brand would cost it 250 million euros. The Yeezy brand accounted for up to 15% of Adidas’ net income, according to Morningstar analyst David Swartz. Adidas has ended production of all Yeezy products and ceased royalty payments.

    For weeks, Ye made antisemitic comments in interviews and social media, including a Twitter post earlier this month that he would soon go “death con 3 on JEWISH PEOPLE,” an apparent reference to the U.S. defense readiness condition scale known as DEFCON. He was suspended from both Twitter and Instagram.

    The company had already cut its year forecasts on Oct. 20, five days before it announced it was ending the relationship with Yeezy. The earlier outlook revision cited slowing activity in China, where severe restrictions aimed at limiting the spread of COVID-19 have held back the economy, and clearance of elevated inventory levels.

    Net income for the third quarter from continuing operations was 66 million euros, down from 479 million euros in the same quarter a year ago. The decrease largely reflected 300 million in one-time costs, most of it from winding down the company’s business in Russia.

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  • EU’s Call of Duty: Probe Microsoft-Activision Blizzard deal

    EU’s Call of Duty: Probe Microsoft-Activision Blizzard deal

    BRUSSELS — The European Union has launched an investigation into Microsoft’s planned takeover of video game giant Activision Blizzard, fearing the $69 billion deal would distort fair competition to popular titles like Call of Duty.

    Microsoft, maker of the Xbox gaming system, first announced the agreement to buy the California-based game publisher in January, but it still awaits scrutiny by antitrust regulators in the U.S., Europe and elsewhere. If it goes through, the all-cash deal would be the largest in the history of the tech industry.

    Members of the European Commission, the 27-nation bloc’s executive arm, said in a statement Tuesday that “the point is to ensure that the gaming ecosystem remains vibrant to the benefit of users in a sector that is evolving at a fast pace.”

    “We must ensure that opportunities remain for future and existing distributors of PC and console video games, as well as for rival suppliers of PC operating systems,” the commissioners said. They have until March 23, 2023, to decide whether to approve the deal.

    At the heart of the dispute is who gets to control future releases of Activision Blizzard’s most popular games, especially the first-person military shooter franchise Call of Duty. Activision this week said its latest installment, Call of Duty: Modern Warfare 2, has already made more than $1 billion in sales since its Oct. 28 launch.

    Microsoft’s console rival Sony, maker of the PlayStation, has brought its concerns about losing access to what it describes as a “must-have” game title to regulators around the world. In response, Microsoft has promised to keep Call of Duty on the PlayStation “for at least several more years” beyond its current contract with Sony. It also has said it might bring it to Nintendo’s Switch console, where the game isn’t currently available.

    In a preliminary probe, the EU found potential antitrust issues with the distribution of video games and halting access to Microsoft’s rivals. The bloc said it has concerns that the proposed acquisition could hurt competitors to Microsoft’s Windows operating system, because computers without Windows might not be able to get Xbox’s game-streaming subscription service and growing collection of titles.

    Microsoft said it will keep working with the European Commission on next steps “and to address any valid marketplace concerns.”

    “Sony, as the industry leader, says it is worried about Call of Duty, but we’ve said we are committed to making the same game available on the same day on both Xbox and PlayStation,” Microsoft said in a statement Tuesday. “We want people to have more access to games, not less.”

    Activision Blizzard CEO Bobby Kotick said in an email to employees Tuesday that global competition in the video game industry makes it “understandable that regulators are trying to better understand the games business.” But he said the “process is moving along as we expected” and foresees the deal closing by June.

    “We will continue to cooperate with the European Commission where, in the countries they represent, we have many employees,” Kotick wrote.

    He highlighted Brazil’s recent approval, saying the country’s competition authority understood “we operate in a highly dynamic and competitive industry, and that the merger will not harm competition in any way.”

    Saudi Arabia also has signed off on the deal, but it still awaits important decisions from the U.S. Federal Trade Commission and authorities in the U.K. and EU.

    Tuesday’s decision was another example of how the EU has led the way on regulating Big Tech companies, opening antitrust investigations, enacting strict regulations on data privacy and pushing through landmark rules that threaten online platforms with billions in fines unless they respect fair market conditions and crack down on harmful content like hate speech and disinformation.

    It’s possible regulators could impose conditions on the gaming deal that force Microsoft to keep access open to Call of Duty for longer and ensure that its rivals aren’t getting a lesser version.

    Among those listening to Sony’s concerns are antitrust regulators in the United Kingdom. Last month, they escalated their investigation into whether Microsoft could make Call of Duty and other titles exclusive to its Xbox platform or “otherwise degrade its rivals’ access” by delaying releases or imposing licensing price increases.

    “These titles require thousands of game developers and several years to complete, and there are very few other games of similar caliber or popularity,” according to a September report from the U.K.’s Competition and Markets Authority.

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    O’Brien reported from Providence, Rhode Island.

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  • Renault, China’s Geely announced powertrain joint venture

    Renault, China’s Geely announced powertrain joint venture

    Renault SA and China’s Geely say they plan to launch a joint venture to produce gasoline-powered and hybrid powertrains, adding to a series of partnerships between global automakers to share soaring technology costs

    BEIJING — Renault SA and China’s Geely announced plans Tuesday for a jointly owned venture to produce gasoline-powered and hybrid powertrains, adding to a series of partnerships between global automakers to share soaring technology costs.

    The venture will have 17 plants with annual production capacity of 5 million powertrains, five research and development centers on three continents and some 19,000 employees, the companies said. They gave no financial terms but said each partner will own half of the venture.

    It will supply brands owned by or linked to Renault and Geely including Nissan, Mitsubishi, Volvo Cars, Renault, Dacia, Geely Auto, Lynk & Co. and Proton, the companies said. They said it might later supply third-party brands.

    Global automakers have been forming partnerships over the past decade to share the multibillion-dollar development costs of electric vehicles and more efficient gasoline engines.

    The Renault-Geely agreement will “enable the creation of a global leader in hybrid technologies to provide highly efficient advanced solutions for automakers around the world,” Eric Li, chairman of Geely Holding Group, said in a statement.

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  • California settles with firm in Volkswagen emissions scandal

    California settles with firm in Volkswagen emissions scandal

    SACRAMENTO, Calif. — California on Monday settled a lawsuit against a German company stemming from the emissions scandal that tarred Volkswagen in 2015 and Fiat Chrysler two years later.

    German auto supplier Bosch will pay $25 million to settle allegations by the state and California Air Resources Board under a court complaint and settlement agreement, both filed Monday. A judge will need to sign off on the settlement.

    Volkswagen and Fiat Chrysler installed “defeat devices” in nearly 100,000 diesel passenger vehicles sold in California, the state said previously. The devices made it seem like the vehicles were meeting emissions requirements as they were undergoing testing, but on the road they actually polluted at many times the legal limit.

    The settlement stems from some Volkswagen and Fiat Chrysler diesel vehicles sold in the U.S. from model year 2016 and earlier.

    The complaint filed Monday said Bosch knew or should have known that the automakers were violating environmental and consumer protection laws, and that Bosch broke consumer protection laws through its marketing of Volkswagen and Fiat Chrysler vehicles and its own diesel components.

    “Bosch violated consumer trust when it gave Volkswagen and Fiat Chrysler the technology they needed to skirt state and federal emissions tests,” Attorney General Rob Bonta said in announcing the settlement.

    The Air Resources Board’s executive officer, Steven Cliff, said the company’s technology “was at the heart of the automobile emissions cheating scandals at Volkswagen and Fiat Chrysler and that has led directly to increased emissions and unhealthful air, especially in neighborhoods suffering from persistent air pollution.”

    Bosch said in a statement that it “neither acknowledges the validity of the claims … nor does it concede any liability.” But it said its “robust compliance systems, as well as its full cooperation” aided the settlement. It also said that since 2015, the company’s “already existing extensive compliance policies and procedures have been substantially enhanced.”

    Aside from the $25 million, the settlement requires Bosch to make changes in its policies and procedures and to tell state officials if it discovers that a manufacturer will use or has used cheating technology.

    California previously settled with Volkswagen for nearly $1.5 billion in environmental mitigation payments, investments in zero-emissions technology and other damages. The company also was required to buy back at least 85% of affected vehicles or make emissions modifications on those vehicles.

    Fiat Chrysler paid more than $78 million and similarly was required to bring at least 85% of the affected vehicles into compliance.

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  • California settles with firm in Volkswagen emissions scandal

    California settles with firm in Volkswagen emissions scandal

    SACRAMENTO, Calif. — California on Monday settled a lawsuit against a German company stemming from the emissions scandal that tarred Volkswagen in 2015 and Fiat Chrysler two years later.

    German auto supplier Bosch will pay $25 million to settle allegations by the state and California Air Resources Board under a court complaint and settlement agreement, both filed Monday. A judge will need to sign off on the settlement.

    Volkswagen and Fiat Chrysler installed “defeat devices” in nearly 100,000 diesel passenger vehicles sold in California, the state said previously. The devices made it seem like the vehicles were meeting emissions requirements as they were undergoing testing, but on the road they actually polluted at many times the legal limit.

    The settlement stems from some Volkswagen and Fiat Chrysler diesel vehicles sold in the U.S. from model year 2016 and earlier.

    The complaint filed Monday said Bosch knew or should have known that the automakers were violating environmental and consumer protection laws, and that Bosch broke consumer protection laws through its marketing of Volkswagen and Fiat Chrysler vehicles and its own diesel components.

    “Bosch violated consumer trust when it gave Volkswagen and Fiat Chrysler the technology they needed to skirt state and federal emissions tests,” Attorney General Rob Bonta said in announcing the settlement.

    The Air Resources Board’s executive officer, Steven Cliff, said the company’s technology “was at the heart of the automobile emissions cheating scandals at Volkswagen and Fiat Chrysler and that has led directly to increased emissions and unhealthful air, especially in neighborhoods suffering from persistent air pollution.”

    Bosch said in a statement that it “neither acknowledges the validity of the claims … nor does it concede any liability.” But it said its “robust compliance systems, as well as its full cooperation” aided the settlement. It also said that since 2015, the company’s “already existing extensive compliance policies and procedures have been substantially enhanced.”

    Aside from the $25 million, the settlement requires Bosch to make changes in its policies and procedures and to tell state officials if it discovers that a manufacturer will use or has used cheating technology.

    California previously settled with Volkswagen for nearly $1.5 billion in environmental mitigation payments, investments in zero-emissions technology and other damages. The company also was required to buy back at least 85% of affected vehicles or make emissions modifications on those vehicles.

    Fiat Chrysler paid more than $78 million and similarly was required to bring at least 85% of the affected vehicles into compliance.

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  • EXPLAINER: Bikes, batteries and blazes spark concern in NYC

    EXPLAINER: Bikes, batteries and blazes spark concern in NYC

    NEW YORK — A weekend fire that injured over three dozen people — and forced firefighters to use ropes to pluck people from a 20th-story window — is drawing attention to a rising concern in New York City: battery fires that can arise in the electric bikes and scooters that have proliferated here.

    City officials are considering new laws after the fire department counted nearly 200 blazes and six fire deaths this year tied to problems with lithium-ion batteries in such “micromobility” devices.

    WHAT ARE THESE BATTERIES? ARE THEY THE SAME TECH USED IN PHONES AND CARS?

    Lithium-ion batteries are a Nobel Prize-winning innovation that entered the market in the early 1990s. Hailed as rechargeable, lightweight, powerful, durable and safe, the batteries have been envisioned as a key to greening the world’s energy supply by storing energy, including from the sun, wind and other renewable sources.

    The technology has woven its way into many people’s everyday lives, powering phones, laptop computers, vehicles and more.

    WHY CAN THEY CATCH FIRE?

    The batteries’ electrolyte — a solution that lets electrical current flow — is flammable, explains Massachusetts Institute of Technology materials chemistry professor Dr. Donald Sadoway. The substance was chosen for its ability to handle the voltage involved, but fires can happen if the batteries are overcharged, overheated, defective or damaged, for instance.

    Over the years, problems have periodically triggered fires involving laptops, cellphones, hoverboards, electric vehicles, airplanes and battery power storage installations. A U.N. aviation agency said in 2016 that lithium-ion batteries shouldn’t be shipped on passenger planes.

    Battery industry group leader James Greenberger notes that other energy sources aren’t trouble-free, and he says there’s nothing inherently unsafe about the batteries. But he said the industry is concerned about the fires lately in New York and worries that they could scare off consumers.

    “This shouldn’t be happening and we need to figure out what’s going on,” said Greenberger, the executive director of NAATBatt — the North American trade association for advanced battery technology developers, manufacturers and users.

    WHY ARE E-BIKES AND SCOOTERS GETTING SCRUTINY IN NEW YORK?

    The city has seen “an exponential increase” in fires related to faulty lithium-ion batteries in recent years, Chief Fire Marshal Daniel Flynn said. He said there have been more deaths and injuries already this year than in the past three years combined.

    “It’s a big issue,” he said at a news conference Monday, describing fires that occur without warning, grow rapidly and are tough to extinguish.

    The batteries “fail almost in an explosive way — it’s like a blowtorch,” he said.

    Saturday’s fire in a Manhattan apartment was sparked by a malfunctioning e-bike battery that residents were attempting to charge and left unattended while they fell asleep, he said. They were trapped when the battery, plugged in by the front door, caught fire, Flynn said.

    Electric bikes and scooters have become popular, non-gasoline-burning ways to make deliveries, commute and zip around a city that has promoted cycling in recent decades. For the “deliveristas” who carry restaurant takeout orders, the bikes are crucial tools of the trade.

    “What these workers have learned over the years, and they know it well, is that, like any equipment, it requires the maintenance required,” said Hildalyn Colón Hernández, a spokesperson for worker advocacy group Los Deliveristas Unidos. She said many workers have used their batteries for years without a hitch.

    WHAT’S CAUSING THE PROBLEM?

    There are different opinions. Greenberger, the industry group director, suggests there’s too little quality control on some of the largely imported batteries. Sadoway, the scientist, believes “we don’t have the appropriate protective measures” on e-bikes and scooters themselves to monitor the batteries for problems.

    Colón Hernández, the delivery worker advocate, thinks there need to be tougher standards around the batteries, such as regulations for businesses that sell or service them.

    WHAT IS NEW YORK CITY DOING ABOUT THIS?

    The Fire Department has repeatedly issued warnings and safety tips over the past year. Fire Commissioner Laura Kavanagh asked the federal Consumer Product Safety Commission in August to consider new regulations. Mayor Eric Adams pointed again to the CPSC on Monday.

    “The responsibility of navigating safe and unsafe batteries on the market should not fall to hard-working New Yorkers,” the mayor, a Democrat, said in a statement.

    Some city lawmakers want to take their own steps.

    A City Council committee has set a Nov. 14 hearing on various proposals. Some would require public education campaigns or safety reports. Another would prohibit the sale of some secondhand lithium-ion batteries, or e-bike or scooter batteries without certain seals of approval.

    Meanwhile, fire officials continue to urge everyone not to leave batteries to charge unattended, to check that they’re not damaged or near a heat source, and to make sure the batteries, chargers, cords and devices are all from the same manufacturer and used as instructed.

    “We understand the benefits that these batteries pose to our communities, and we want to encourage use of them, but safe use,” Flynn said. “So understand that it does pose a danger, and just use them safely.”

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  • Supplier to hire 630 near Hyundai’s EV plant in Georgia

    Supplier to hire 630 near Hyundai’s EV plant in Georgia

    STATESBORO, Ga. — An auto parts manufacturer plans to hire 630 workers at a new factory in southeast Georgia to supply Hyundai Motor Group’s first U.S. electric vehicle plant that’s under construction nearby, state officials said Monday.

    Joon Georgia will invest $317 million to produce parts in Bulloch County, Gov. Brian Kemp’s office said in a news release. The supplier will open shop roughly 30 miles (50 kilometers) west of the southeast Georgia site where Hyundai executives broke ground on the new EV plant two weeks ago.

    The company is “the first of many” expected to come to Georgia to supply the $5.5 billion Hyundai plant in Bryan County, Kemp said in a statement. The automaker plans to open its Georgia plant in 2025, producing up to 300,000 electric vehicles per year.

    Joon Georgia is a subsidiary of Ajin USA, which supplies parts to other Hyundai plants. It already operates a facility in Cusseta, Alabama, near the Georgia line that makes parts for Hyundai’s plant in Montgomery, Alabama, as well as for Kia’s auto plant in West Point, Georgia.

    The Joon Georgia factory near the Hyundai EV plant is expected to open near Statesboro in mid-2024, Kemp’s office said.

    “Joon Georgia’s announcement today is a landmark moment as we drive Georgia’s automotive industry into the future,” said Pat Wilson, commissioner of the Georgia Department of Economic Development, in a statement.

    State and local officials in Georgia lured Hyundai with tax breaks and incentives worth $1.8 billion, making it the state’s largest economic development deal.

    Wilson and other Georgia officials have insisted it’s a worthwhile investment. In addition to Hyundai hiring 8,100 workers, suppliers are expected to create thousands of additional jobs in the state.

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  • Mexican company to build $200M, 295-worker bakery in Georgia

    Mexican company to build $200M, 295-worker bakery in Georgia

    VALDOSTA, Ga. — A Mexican bakery will be turning out more bread in south Georgia, announcing a larger bakery to go with a smaller one that it’s already building.

    Mexico City-based Grupo Bimbo said Friday that it will spend $200 million on a new bakery in Valdosta and hire 295 workers.

    The company originally announced a $25 million bakery projected to hire 76 workers in 2021. That bakery is under construction and will start operating in December, said Andrea Schruijer, executive director of the Valdosta-Lowndes County Development Authority.

    The project announced Friday will begin work in December in the same industrial park and is expected to open in December 2025.

    The first bakery will make sandwich buns for restaurants across the Southeast. It’s unclear what the bakery announced Friday will make.

    Schruijer told the Valdosta Daily Times that workers’ wages will start between $19 and $25 an hour.

    The company will get an undisclosed amount of job training assistance from the state. Schruijer said local officials approved a 12-year graduated property tax break. She said she was unable to give a specific value for how much the city and county were forgoing in taxes.

    Grupo Bimbo will also qualify for a Georgia tax credit allowing it to annually deduct $3,500 per job from state income taxes, up to $5.2 million over five years, as long as workers make at least $31,300 a year. If Grupo Bimbo doesn’t owe that much income tax, it will be able to recover the rest of the credit from state income tax payments made by workers.

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  • VW recalls vehicles for tire pressure monitoring malfunction

    VW recalls vehicles for tire pressure monitoring malfunction

    FILE – In this Wednesday, Aug. 1, 2018, file photo a logo of the brand Volkswagen on top of a company building is pictured prior to a Volkswagen stock company press conference in Wolfsburg, Germany. Volkswagen is recalling nearly 225,000 vehicles in the U.S., Friday, Nov. 4, 2022, because the tire pressure monitoring systems may not detect air losses in all four tires at the same time. The recall covers certain 2019 Tiguan, Golf Sportswagen, Golf Alltrack, Golf R, and Audi Q3 and A3 vehicles. Also covered are some 2019 and 2020 Jetta, Golf, Atlas and Audi A3 models and some 2020-2021 Atlas Cross Sport and Atlas vehicles. (AP Photo/Michael Sohn, file)

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  • Stellantis: Park older models due to 3 Takata air bag deaths

    Stellantis: Park older models due to 3 Takata air bag deaths

    DETROIT — Stellantis and the U.S. government are warning owners of 276,000 older vehicles to stop driving them after Takata air bags apparently exploded in three more vehicles, killing the drivers.

    The company, formerly Fiat Chrysler, is telling people to stop driving Dodge Magnum wagons, Dodge Challenger and Charger muscle cars and Chrysler 300 sedans from the 2005 through 2010 model years.

    Stellantis says it confirmed the driver’s air bag inflators blew apart in two cases, killing two drivers. The company suspects an inflator rupture in another case that also killed a driver. All three deaths were in warm-weather U.S. states and happened in the past seven months in 2010 model year vehicles, the company said.

    The fatalities bring the death toll from exploding Takata air bags to at least 32 worldwide, including 23 in the United States.

    Takata used ammonium nitrate to create a small explosion to inflate air bags in a crash. But the chemical can become more volatile over time when exposed to moisture in the air and repeated high temperatures. The explosion can blow apart a metal canister and hurl shrapnel into the passenger compartment.

    Most of the deaths and about 400 injuries have happened in U.S. states with warmer weather.

    The Stellantis vehicles under the “Do Not Drive” warning were all recalled in 2015, and free repairs were available since then. Stellantis said it made numerous attempts to reach owners but the repairs were not made. The recalls affect vehicles in which the air bag inflators have not been replaced as part of the recall.

    “Left unrepaired, recalled Takata air bags are increasingly dangerous as the risk of an explosion rises as vehicles age,” Ann Carlson, acting administrator of the National Highway Traffic Safety Administration, said in a statement. “Every day that passes when you don’t get a recalled air bag replaced puts you and your family at greater risk of injury or death.”

    On Thursday, NHTSA urged all owners to check to see if their vehicles have an unrepaired Takata air bag recall. Drivers can go to https://www.nhtsa.gov/recalls and key in their 17-digit vehicle identification number to see if they have any open recalls.

    The agency said even minor crashes can cause air bags to inflate with the potential for explosions that can kill or hurt people.

    Stellantis said any of its customers who aren’t sure if their vehicles have been recalled can call (833) 585-0144.

    The company said it has made 210 million attempts to reach owners with recalled Takata air bag inflators, including letters, courier deliveries, emails, text messages, phone calls and home visits. The company has recalled nearly 2 million vehicles with Takata inflators.

    In the three recent cases in which people were killed, Stellantis said it made 153 attempts to reach owners.

    The company “extends its sympathies to the families and friends of those affected by these incidents,” Stellantis’ statement said.

    Potential for the dangerous malfunction led to the largest series of auto recalls in U.S. history, with at least 67 million Takata inflators recalled. The U.S. government says that millions have not been repaired. About 100 million inflators have been recalled worldwide. The exploding air bags sent Takata Corp. of Japan into bankruptcy.

    Most of the deaths have been in the U.S., but they also have occurred in Australia and Malaysia.

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  • Ford quality chief retires as CEO tries to boost reliability

    Ford quality chief retires as CEO tries to boost reliability

    DETROIT — Ford Motor Co.’s top quality executive is retiring as the company continues to struggle with high warranty claims and reliability issues.

    Stuart Rowley, chief transformation and quality officer, is leaving after 32 years with the company. He’ll be replaced by Jim Baumbick, who is now vice president of product development operations and internal combustion engine programs, the company said Wednesday.

    “Quality is our No. 1 priority as a company, and Jim Baumbick is the right leader to deliver world-class quality and reliability at Ford,” CEO Jim Farley said in a statement.

    Farley has complained about quality, warranty claims, recalls and problems with launching new vehicles since his appointment as chief executive two years ago.

    At the company’s annual shareholders meeting in May, Farley said the problems are affecting Ford’s financial performance, but also causing pain for customers.

    “We’ve made more progress on our launch quality and initial quality, you could see it in the surveys and our ramp-up of production,” Farley said at the meeting. “However, we are not satisfied at all with our quality performance, including our recalls and customer satisfaction efforts, which we need to quickly accelerate. ”

    He said fixing the problems will require new talent, which the company has, as well as a culture shift and better processes for engineering, manufacturing and supply chain management. “It’s very frustrating for our customers, and so we’re doing everything we can to accommodate them with the right policies to support them when they do have a problem, and rest assured this management team is completely committed to fixing our gap to competition and return the company to being benchmark,” he said.

    Ford’s statement said Josh Halliburton, who was hired in January from survey and data analysis company J.D. Power to be executive director of quality, will report to Baumbick.

    The move, Ford said, will integrate quality improvement work in design, engineering, manufacturing and the supply chain.

    Rowley will retire Dec. 1 after more than three decades with the automaker, where he held multiple positions including chief operating officer for North America, president of Ford Europe.

    The change is among several management moves the company announced Wednesday.

    Joy Falotico, president of the Lincoln luxury brand, will retire after 33 years with the company. She’ll be replaced by Dianne Craig, now president of the International Markets Group.

    Steven Armstrong, vice president for the India and South America transformation, also will retire, after 35 years with Ford.

    The moves come at a time of profound change that Farley is leading at Ford, including separating the company into electric vehicle and internal combustion units.

    In August the company let go of 3,000 white collar workers to cut costs and help make the long transition from combustion vehicles to those powered by batteries.

    Governments across the globe are pushing to eliminate combustion automobiles to mitigate the impact of climate change. Companies like Ford are orchestrating the wind-down of their combustion businesses over multiple years, even though they are still generating the cash to fund electric vehicle development.

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  • USDA says more than $200M will help meat processors expand

    USDA says more than $200M will help meat processors expand

    OMAHA, Neb. — The Agriculture Department announced more than $223 million in grants and loans Wednesday to help small and mid-sized meat processing plants expand to help boost competition in the highly concentrated industry.

    The effort is expected to increase cattle and pig slaughter capacity by more than 500,000 head a year and help poultry plants process nearly 34 million more birds while adding more than 1,100 jobs mostly in rural areas where the plants are located.

    The Biden administration wants to add meat processing capacity to give farmers and ranchers more options of where to sell the animals they raise while hopefully reducing prices for consumers by increasing competition because the biggest companies now have so much power over pricing. In beef, the top four companies control 85% of the market while the top four firms control 70% of the pork market. The four biggest poultry processors control 54% of that business.

    “We’re looking forward to these projects taking hold and creating new opportunity and new choice for producers and consumers,” U.S. Agriculture Secretary Tom Vilsack said.

    The USDA’s announcement Wednesday, combined with a trip to Omaha, Nebraska, where Vilsack plans to tour a beef processing plant, comes as President Joe Biden is highlighting his achievements to voters before the Nov. 8 midterm elections. Several of the administration’s recent announcements have targeted rural areas in states that generally support more Republicans than Democrats.

    Vilsack said the Greater Omaha Packing company will use its grant to expand beef processing capacity by 700 head per day and add 275 more jobs. The Omaha company is one of the biggest of the 21 grant recipients nationwide that will share $73 million.

    Some of the other grants will go to helping Pure Prairie reopen an idle poultry processing plant that will employ hundreds of people in Charles City, Iowa. And the Cutting Edge Meat Company in Leakesville, Mississippi, expects to be able to reduce its current six-month backlog for beef and pork processing by expanding its capacity.

    The other $150 million of funding announced Wednesday will go to 12 loan programs that will help independent meat processors continue operating as they work to expand. And applications for additional grants and loans are being accepted now for another round of spending next year.

    The big meat processors maintain that supply and demand factors — not industry concentration — drive prices for beef, pork and poultry products. And they say processing capacity has been restrained by the ongoing shortage of people to work at these plants, which are typically in rural areas with small populations.

    The worker shortages were highlighted during the pandemic when a number of major meat processing plants had to shut down as the virus tore through them because so many workers became ill or had to quarantine. That contributed to shortages of meat in grocery stores that drove up prices.

    The price paid for the animals that are slaughtered has long been a point of contention because even as meat prices soar with inflation and tight capacity in the industry, farmers and ranchers receive a relatively small share of the profits. Federal data show that for every dollar spent on food, the share that went to ranchers and farmers dropped from 35 cents in the 1970s to 14 cents recently.

    Agricultural economists have said that smaller processing plants also might have a hard time competing with the major meat companies because they are far less efficient than the big plants run by companies like Tyson, Smithfield Foods, Cargill, JBS, Hormel and Purdue Farms.

    In addition to these loans and grants, the White House has also adjusted administrative rules to make it easier for farmers and ranchers to report concerns or sue over anticompetitive behavior. Officials are also planning new rules to label meat as a U.S. product to differentiate it from meat raised in other countries.

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  • Tesla robot walks, waves, but doesn’t show off complex tasks

    Tesla robot walks, waves, but doesn’t show off complex tasks

    DETROIT — An early prototype of Tesla Inc.’s proposed Optimus humanoid robot slowly and awkwardly walked onto a stage, turned, and waved to a cheering crowd at the company’s artificial intelligence event Friday.

    But the basic tasks by the robot with exposed wires and electronics — as well as a later, next generation version that had to be carried onstage by three men — was a long way from CEO Elon Musk’s vision of a human-like robot that can change the world.

    Musk told the crowd, many of whom might be hired by Tesla, that the robot can do much more than the audience saw Friday. He said it is also delicate and “we just didn’t want it to fall on its face.”

    Musk suggested that the problem with flashy robot demonstrations is that the robots are “missing a brain” and don’t have the intelligence to navigate themselves, but he gave little evidence Friday that Optimus was any more intelligent than robots developed by other companies and researchers.

    The demo didn’t impress AI researcher Filip Piekniewski, who tweeted it was “next level cringeworthy” and a “complete and utter scam.” He said it would be “good to test falling, as this thing will be falling a lot.”

    “None of this is cutting edge,” tweeted robotics expert Cynthia Yeung. “Hire some PhDs and go to some robotics conferences @Tesla.”

    Yeung also questioned why Tesla opted for its robot to have a human-like hand with five fingers, noting “there’s a reason why” warehouse robots developed by startup firms use pinchers with two or three fingers.

    Musk said that Friday night was the first time the early robot walked onstage without a tether. Tesla’s goal, he said, is to make an “extremely capable” robot in high volumes — possibly millions of them — at a cost that could be less than a car, that he guessed would be less than $20,000.

    Tesla showed a video of the robot, which uses artificial intelligence that Tesla is testing in its “Full Self-Driving” vehicles, carrying boxes and placing a metal bar into what appeared to be a factory machine. But there was no live demonstration of the robot completing the tasks.

    Employees told the crowd in Palo Alto, California, as well as those watching via livestream, that they have been working on Optimus for six to eight months. People can probably buy an Optimus “within three to five years,” Musk said.

    Employees said Optimus robots would have four fingers and a thumb with a tendon-like system so they could have the dexterity of humans.

    The robot is backed by giant artificial intelligence computers that track millions of video frames from “Full Self-Driving” autos. Similar computers would be used to teach tasks to the robots, they said.

    Experts in the robotics field were skeptical that Tesla is anywhere near close to rolling out legions of human-like home robots that can do the “useful things” Musk wants them to do – say, make dinner, mow the lawn, keep watch on an aging grandmother.

    “When you’re trying to develop a robot that is both affordable and useful, a humanoid kind of shape and size is not necessarily the best way,” said Tom Ryden, executive director of the nonprofit startup incubator Mass Robotics.

    Tesla isn’t the first car company to experiment with humanoid robots.

    Honda more than two decades ago unveiled Asimo, which resembled a life-size space suit and was shown in a carefully-orchestrated demonstration to be able to pour liquid into a cup. Hyundai also owns a collection of humanoid and animal-like robots through its 2021 acquisition of robotics firm Boston Dynamics. Ford has partnered with Oregon startup Agility Robotics, which makes robots with two legs and two arms that can walk and lift packages.

    Ryden said carmakers’ research into humanoid robotics can potentially lead to machines that can walk, climb and get over obstacles, but impressive demos of the past haven’t led to an “actual use scenario” that lives up to the hype.

    “There’s a lot of learning that they’re getting from understanding the way humanoids function,” he said. “But in terms of directly having a humanoid as a product, I’m not sure that that’s going to be coming out anytime soon.”

    Critics also said years ago that Musk and Tesla wouldn’t be able to build a profitable new car company that used batteries for power rather than gasoline.

    Tesla is testing “Full Self-Driving” vehicles on public roads, but they have to be monitored by selected owners who must be ready to intervene at all times. The company says it has about 160,000 vehicles equipped with the test software on the road today.

    Critics have said the Teslas, which rely on cameras and powerful computers to drive by themselves, don’t have enough sensors to drive safely. Tesla’s less capable Autopilot driver-assist system, with the same camera sensors, is under investigation by U.S. safety regulators for braking for no reason and repeatedly running into emergency vehicles with flashing lights parked along freeways.

    In 2019, Musk promised a fleet of autonomous robotaxis would be in use by the end of 2020. They are still being tested.

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    O’Brien reported from Providence, Rhode Island.

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