Share this article

print logo


The strike in Canada is over, but thousands of General Motors workers in the United States and Mexico still can't return to their jobs and the number of those laid off keeps growing.

GM on Thursday temporarily closed its big Lordstown, Ohio, plant that assembles Chevrolet Cavalier and Pontiac Sunfire compacts because it is out of Canada-made parts.

The company says the 5,000-worker plant could remain closed for two weeks. The sprawling Buick City complex in Flint is expected to be the next assembly operation to close -- possibly by Monday.

GM said today that some of the 2,926 workers at the Lordstown metal-fabrication plant also would be laid off next week. Another 474 workers, at GM's Delphi interior and lighting systems plant in Vandalia, Ohio, were laid off today.

A total of 23,340 GM workers are on layoff in the United States and Mexico, 550 of them at the Tonawanda engine plant.

TWA's chief executive resigns
ST. LOUIS (AP) -- Just hours after Trans World Airlines Inc. posted a $14.3 million quarterly loss tied to the July explosion of one of its jetliners, the company's chief executive called it quits.

Jeffrey H. Erickson, who had overseen a startling comeback of the once-bankrupt airline, plans to step down in January.

His resignation was announced Thursday, shortly after TWA reported a huge loss for the third quarter, which covered the July 17 crash of Flight 800.

USAir ends code-sharing deal
ARLINGTON, Va. (Reuters) -- USAir said Thursday that it will end its code-sharing agreement with British Airways as of March 29, 1997, because of the British carrier's proposed alliance with American Airlines.

USAir, which is 24.6 percent owned by British Airways, had fiercely opposed the British Airways-American partnership, saying that they would dominate the trans-Atlantic market.

Icahn wants Nabisco chief ousted
WASHINGTON (Bloomberg) -- Financier Carl Icahn today called for the replacement of Steven Goldstone, the chief executive officer of RJR Nabisco Holdings Corp., and said the food and tobacco company should settle tobacco litigation and raise its annual dividend.

Icahn also disclosed that he raised his stake in RJR Nabisco to 7.3 percent from 5.8 percent by purchasing 2.7 million common shares.

Wired magazine pulls IPO
NEW YORK (AP) -- The publisher of Wired magazine has once more called off a planned sale of stock that was aimed at raising needed cash.

Even before the offering was pulled, the public stock sale for one of the hottest publications for the online savvy was receiving a decidedly lukewarm response from investors.

Mortgage rates drop this week
WASHINGTON (AP) -- Thirty-year, fixed rate mortgages averaged 7.86 percent this week, down from 7.88 percent a week earlier, the Federal Home Loan Mortgage Corp. said in a national survey released Thursday.

On one-year adjustable rate mortgages, lenders were asking an average initial rate of 5.57 percent, down from 5.62 percent last week.

Fifteen-year mortgages, a popular option for those refinancing mortgages, averaged 7.37 percent this week, down from 7.39 percent a week earlier.

In other business news
TCI Communications Inc. Thursday said it expects third-quarter revenues and cash flow to be higher than a year ago but rising expense levels have forced the company to ask its major equipment suppliers to suspend shipments immediately. Industry analysts have been concerned about the company's cash flow after TCI told 30 major vendors to halt shipments of equipment until further notice in order to ensure successful deployment of inventory and control unnecessary capital spending.

Twentieth Century Mutual Funds, fresh from a merger with The Benham Group and with the next century looming, announced on Thursday a new name: American Century Investments. The change goes into effect Jan. 1.

Quaker Oats Co. plans to give its struggling Snapple iced teas and fruit juices a new look and new products in November in a move analysts said may be Chairman William D. Smithburg's last chance at reviving the line.

There are no comments - be the first to comment