Ford invests $350M in Michigan plant
LIVONIA, Mich. -- Ford is pumping $350 million into a plant outside Detroit where a new transmission for fuel-efficient vehicles will be built.
The Dearborn, Mich., automaker said Friday that the investment in the Livonia Transmission Plant is expected to create or keep 800 jobs. Some jobs are expected to be added this year, but most will be filled over the next two years.
Upgrades to the Livonia facility are part of more than $2.25 billion in investments in the state announced this year by Ford Motor Co.
Ford says the advanced transmissions provide better fuel efficiency and performance.
Earlier this week, the automaker said it was cutting 1,400 nonfactory jobs in North America and Asia Pacific. It expects the actions to be complete by the end of September. The cuts are the biggest to Ford's U.S. white-collar staff since 2007.
-- The Associated Press
Butterball to shut plant employing 600
CHICAGO -- Butterball will close its Gusto meatpacking plant in Montgomery, Ill., where it employs about 600 full-time workers, marking another loss of jobs in the Aurora area.
Butterball acquired Gusto Packing Co. in 2013; now, most of the plant's products will be discontinued after the plant closes on or around July 17.
Butterball said it informed employees of the plant closing Thursday.
Butterball executives said they intend to find work at other facilities for employees willing to relocate, but many likely will be unwilling or unable to make the move. Butterball has plants in Missouri, Arkansas and North Carolina, but no others in Illinois. The employees are not unionized.
The plant processes primarily pork products, such as private-label and Gusto-branded varieties of bacon and ham. The pork products made at the Montgomery facility will be discontinued. The turkey products will be made at other Butterball facilities.
-- Chicago Tribune
Court strikes FAA drone-registration rule
The government's authority to oversee burgeoning recreational drone use was dealt a setback when a federal appeals court barred the Federal Aviation Administration from forcing hobbyists to register the millions of unmanned aircraft taking flight.
While Friday's decision by the U.S. Court of Appeals in Washington left intact FAA guidance on where recreational drones may fly, the ruling undercuts one of the agency's primary means of ensuring that unmanned aircraft are operated safely. Some 759,000 hobbyists have signed up since the FAA regulation went into effect in late 2015. The agency estimates that 2.3 million drones will be sold this year for recreational use, plus 2.5 million for commercial operations.
Acting as his own lawyer, drone hobbyist John Taylor sued, contending the FAA didn't have the power to force hobbyists to register.
"Taylor does not think that the FAA had the statutory authority to issue the registration rule and require him to register," U.S. Circuit Judge Brett Kavanaugh wrote for the unanimous three-judge panel. "Taylor is right."
Drone registration was prompted by reports of the unmanned craft flying near traditional aircraft, including airliners at some of the largest U.S. airports. The FAA uses its regulation system to give users safety information. The agency requires drones to have identifying markings to help it find users who have posed a hazard.
The FAA is reviewing the ruling, it said in an emailed statement.
The ruling doesn't apply to the growing number of commercial drone operators, such as real estate photographers and cell-tower inspectors. It also won't affect the plans of companies such as Amazon.com Inc. and Alphabet Inc. to create fleets of delivery drones.
-- Bloomberg News
Deal-maker Branson hints at new airline
Billionaire Richard Branson signaled he may jump back into the U.S. airline business after tussling with Alaska Air Group Inc. over how long the carrier must pay royalties on his Virgin America brand.
Alaska has to keep paying "unless we decide to start another airline. So, we'll see what happens," Branson said in an interview Thursday with Bloomberg TV. When asked if he would create a new carrier, he said, "Watch this space."
The entrepreneur's comments hint at a return to the U.S. airline industry after Virgin America's $2.6 billion sale to Alaska in December. Branson maintains he should be compensated for the brand through 2040. Alaska, which plans to retire the Virgin America name in 2019, has said it doesn't need to pay for a brand it isn't using.
Branson could find room for a new U.S. airline as the major carriers have held back the supply of seats in recent years and have been saddled with higher costs because of new labor deals, said Samuel Engel, an aviation consultant with consulting firm ICF.
"There's always space for another airline in the U.S.," Engel said. "It is a competitive and dynamic market, and the consolidation that has taken place in the last 10 years that has run parallel with capacity constraint only increases that opportunity."
-- Bloomberg News
Fiat Chrysler seeks diesel-emission OK
WASHINGTON -- Fiat Chrysler has applied for diesel-emission certifications for its 2017 Jeep Grand Cherokee and Ram 1500 models after months of talks with federal and state agencies.
The applications come after the Environmental Protection Agency and the California Air Resources Board in January alleged the automaker used software in previous model years that allowed the vehicles to emit more pollution on the road than showed up in emission tests. Fiat Chrysler denied that allegation.
Fiat Chrysler said it has updated the faulty software that the EPA said affected 104,000 Grand Cherokee SUVs and Ram pickups for model years 2014-16. The automaker said it would install the updated software in the 2014-16 models pending approval from the EPA and California Air Resources Board.
The automaker said Friday that the update should resolve the agencies' concerns about the emissions software in those vehicles.
A representative for the EPA declined to comment. The California Air Resources Board said it is continuing its talks with Fiat Chrysler aimed at resolving the issues.
-- The Associated Press
Business on 05/20/2017