USA Truck's Harshaw earns promotion
Kandice Harshaw has replaced Burton Weis as vice president of human resources at USA Truck, according to the Van Buren-based company.
Harshaw was promoted to her new role from director of human resources on Friday, one day after Weis resigned from a position he held since 2011. Weis had been with USA Truck since 1993 and served in executive roles that included vice president of operations and vice president of customer service.
Harshaw joined USA Truck in 1992 and has been in supervisory roles since 1999, working as human resources/personnel supervisor and manager, fuel economy and quality managers and manager of corporate training.
"USA Truck is fortunate to have such a capable professional in this key role within our organization," Chief Executive Officer Tom Glaser said in a news release. "On behalf of all our team members, I congratulate Kandice on this well-deserved opportunity."
-- Robbie Neiswanger
Buyer confidence falls for 2nd month
Confidence among U.S. consumers eased for a second month in August, surprising analysts who had forecast the sentiment index would rise.
The University of Michigan's preliminary index of sentiment decreased to 92.9 from 93.1 in July, figures showed Friday. The median forecast in a Bloomberg survey of economists called an increase to 93.5. Concern about the economy was counterbalanced by the most optimistic views on wages in 15 years.
Americans' spirits have been lifted as gasoline prices retreat and companies continue to increase headcounts and limit dismissals. The global financial turmoil caused by China's recent currency devaluation has yet to affect sentiment, heightening the focus on future reports.
"Now is the time to more carefully monitor consumer sentiment in case we do see a fallout from the international problems, but I don't expect it," Richard Curtin, director of the Michigan Survey of Consumers, said on a Bloomberg conference call. Lower prices at the pump are "starting to have an impact on their spending decisions because they now no longer expect gas prices to quickly rebound to the previous levels."
-- Bloomberg News
Rates low, auto lending tops $1 trillion
Booming car sales fueled by low borrowing costs and a supportive bond market have pushed U.S. auto debt to $1.01 trillion, according to the Federal Reserve Bank of New York.
Borrowers took out $101 billion in car loans over the past year, outstripping the pace of growth for other kinds of consumer debt, the data show. By comparison, student loans grew $72 billion while mortgages increased $20 billion. On a quarterly basis, auto-loan growth is the highest in a decade, the Fed said.
The acceleration comes amid looser credit standards, seen in a car loan rejection rate as low as 3.3 percent, the least since the New York Fed began collecting that data.
The bond market is financing the loans, as investors scoop up more securities that are tied to bundles of packaged auto loans. Among the deals that package loans to borrowers most likely to miss payments, defaults have climbed.
About $73 billion in auto loan-backed bonds have been sold this year, according to Bank of America Corp., which expects full-year bond sales from car finance firms to reach $125 billion, compared with $101 billion in 2014.
U.S. auto sales may top 17 million this year for the first time since 2001, according to Kelley Blue Book.
-- Bloomberg News
420,000 VWs recalled for air bag issue
NEW YORK -- Volkswagen is recalling 420,000 vehicles in the U.S. because of a problem that can prevent front air bags from deploying in a crash.
The recall is for eight models, including the Jetta, Passat and Tiguan, with model years between 2010 and 2014. The National Highway Traffic Safety Administration said Friday that debris can rip a cable that keeps the front air bag powered, which could lead to a failure to deploy. No accidents or injuries have been reported, Volkswagen said.
The automaker said it is still developing a fix for the problem and will notify owners when it does. But it said that customers who see the air bag monitoring light illuminate should contact a dealer immediately to have the vehicle inspected or repaired.
The recalled vehicles are the CC, Passat, and Tiguan with model years 2010 to 2014; the Eos and Jetta with model years 2010 to 2013; the Golf and GTI with model years 2011 to 2014; and the Jetta SportWagen with model years 2011 to 2013.
-- The Associated Press
Tesla boosts stock offering to 2.7 million
Tesla Motors Inc. increased its stock offering to about 2.7 million shares from 2.1 million, giving itself a bit more breathing room as it prepares to start selling its Model X sport utility vehicle.
The maximum offering price was set at $242, to raise about $642 million, the company said in a regulatory filing on Friday. The underwriters will have the option for an additional 404,239 shares, Tesla said.
The smallest and youngest publicly held U.S. automaker faces huge capital expenditures as it expands globally and triples its vehicle lineup. During an earnings call with analysts last week, Chief Executive Officer Elon Musk said the company may raise equity capital "as a risk-reduction measure."
Shares of Tesla rose 64 cents to close Friday at $243.15 in New York. The shares gained 9 percent this year through Thursday.
Musk has been candid about Tesla's need for capital spending and its lack of profitability. Increasing battery production and developing new models will require billions of dollars in investment and delay consistent profitability.
-- Bloomberg News
Eurozone growth a tepid 0.3% in quarter
LONDON -- The 19-country eurozone economy weathered second-quarter troubles -- notably the escalating crisis in Greece -- with only a small drop in growth, but disparities between nations remain that could cause problems.
Economic growth was 0.3 percent in the March-June period on a quarterly basis, down slightly from 0.4 percent in the first three months of the year and just half the rate recorded in the United States, the European Union's statistics agency said Friday.
As has been the case for much of the past few years during the eurozone's crisis over high government debt, growth remains heavily reliant on the region's powerhouse economy, Germany.
An increase in Germany's growth rate, largely attributed to strong exports, helped offset a sharp slowdown in France. The eurozone's second-largest economy stagnated as investment eased and consumer spending was lackluster.
While Germany saw growth accelerate to 0.4 percent from 0.3 percent in the quarter before, France saw no growth at all after a strong 0.7 percent rise in the first three months of the year.
-- The Associated Press
Business on 08/15/2015