Business News Briefs

xxxxxSmart USA, the U.S. distributor of the Smart ForTwo minicar, plans to complete by the end of the year a dealership in Bloomfield Hills that also houses the company's headquarters. The dealership and U.S. headquarters, with a total of 22,000 square feet, will be located at 1765 S. Telegraph Road. Retail sales of the car are to begin in January 2008. Smart USA wanted its headquarters employees to see first-hand the customer experience, Smart USA President Dave Schembri said Tuesday at an Automotive Press Association event in Detroit. The two-seat Smart cars are made by the Merc- edes Car Group unit of


GDO Report

Smart USA adds dealership to HQ

Smart USA, the U.S. distributor of the Smart ForTwo minicar, plans to complete by the end of the year a dealership in Bloomfield Hills that also houses the company's headquarters. The dealership and U.S. headquarters, with a total of 22,000 square feet, will be located at 1765 S. Telegraph Road. Retail sales of the car are to begin in January 2008. Smart USA wanted its headquarters employees to see first-hand the customer experience, Smart USA President Dave Schembri said Tuesday at an Automotive Press Association event in Detroit. The two-seat Smart cars are made by the Merc- edes Car Group unit of Germany's DaimlerChrysler AG.

National
 
Georgia car dealer sued over fake recall

COLUMBUS, Ga. - A consumer protection agency has filed a lawsuit against a car dealer, claiming the dealer sent out phony recall notices in a bid to increase sales. The lawsuit was filed Friday by the Governor's Office of Consumer Affairs against Bill Heard Chevrolet. It is the first lawsuit the agency has filed against a car dealer since 1975. Last fall, 10,000 Georgia car owners received what appeared to be a flier from Detroit's General Motors Corp. announcing an "Urgent Potential Recall Notice." There was no recall and the flier was not from GM. State regulators say it was the latest in a 16-year pattern of deceptive sales pitches by Bill Heard Chevrolet, the largest car dealer based in Georgia. The dealer disputes claims any violation was intentional, J. Matthew Maguire, one of the dealer's lawyers, said. Company executives admit the mailing was "not appropriate," he said, but blame an advertising firm.

Levi's earnings climb 14 percent

SAN FRANCISCO - Jeans and apparel company Levi Strauss & Co.'s fiscal second-quarter profit rose 14 percent. The company reported Tuesday it earned $45.7 million during the three-month period that ended May 27, up from a profit of $40.2 million a year ago. Revenue rose nearly 6 percent to $1.02 billion in the recent quarter from $961 million a year earlier. Although Levi's has been family owned since 1985, the company discloses its financial results because its debt is publicly traded.

Sears sinks on earnings warning

HOFFMAN ESTATES - Sears Holdings Corp. surprised Wall Street on Tuesday, warning its fiscal second-quarter earnings will likely fall below expectations because of disappointing sales at its Sears and Kmart stores. Sears' stock fell 10 percent. For the quarter that ends Aug. 4, Sears executives said the nation's third-largest retailer will earn between $160 million and $200 million, or $1.06 per share and $1.32 per share. Analysts polled by Thomson Financial had expected earnings of $2.12 per share. Sears shares fell $17.20 to $154.21.

Alcoa's profit off in second quarter

PITTSBURGH - Alcoa Inc. started the second-quarter earnings season Tuesday reporting a 4 percent profit drop after outages at two of the aluminum maker's U.S. plants eroded profits. Alcoa, the first Dow Jones industrial average component to report earnings, said it earned $715 million, or 81 cents per share, for the quarter that ended June 30. That was down from a profit of $744 million, or 85 cents per share, one year earlier. Revenue rose 3.8 percent to a record $8.1 billion in the recent quarter from $7.8 billion one year earlier.

International

EU investigates aid to GM subsidiary

BRUSSELS, Belgium - The European Commission said Tuesday it launched an investigation into $17 million in aid given to General Motors Corp. subsidiary Vauxhall by the British government. The aid was meant to offer training to workers to keep a GM plant near Liverpool viable. EU officials said they were concerned the aid could violate EU state aid rules, adding they had doubts about its legality because the money used would go to training already being carried out by Detroit automaker GM. The investigation comes after GM said last year it would cut 900 jobs at its Vauxhall plant at Ellesmere Port near Liverpool.

Court to rule in LaSalle sale battle

AMSTERDAM, Netherlands - The Dutch Supreme Court is expected to make a key ruling Friday in the fight between Barclays PLC and a consortium of banks led by Royal Bank of Scotland PLC to buy ABN Amro Holding NV. The ruling will determine whether Amsterdam's Superior Court erred when it blocked ABN's sale of Chicago-based LaSalle Bank Corp. to Bank of America Corp. in early May. If the Supreme Court upholds the decision the legal fight could carry to the United States, where courts would determine whether Charlotte, N.C.-based Bank of Amer- ica's deal is enforceable. Should the Supreme Court re- verse the lower court decision, Royal Bank of Scotland and its partners may give up on LaSalle or seek other alter- natives. London-based Barclays' bid is worth $85.3 billion. Royal Bank of Scotland's offer is worth $96.6 billion. From wire reports