GM Puts the Brakes on Cruze, Its Most Popular Car

Jun 26, 2014 8:39am
GTY gm ml 140626 16x9 608 GM Puts the Brakes on Cruze, Its Most Popular Car

                               (Photo Credit: Bill Pugliano/Getty Images)

Morning Money Memo:

General Motors is telling dealers to stop selling all models of its bestselling 2013 and 2014 Chevrolet Cruze sedan because of an air bag problem. “We are working diligently with the supplier to identify the parts in the affected vehicles so we can resume delivery,” a GM spokesman told Automotive News. The potentially faulty airbags are made by Takata, the Japanese supplier already linked to a sweeping recall of other vehicles. The stop-delivery order is a setback for GM dealers, deprived of the top-selling car on their lots. The Cruze may have a flawed driver’s side air bag deflator. “The Cruze stop-sale order is a positive move, overall, because it reflects GM’s higher focus on safety,” says Karl Brauer, senior analyst for Kelley Blue Book’s KBB.com. “However, these blanket stop orders will have a short-term impact on sales volume, especially when they involve a high-volume model like the Cruze during the height of the summer-selling season.”

A new survey of more than 2,000 hiring and HR professionals finds more employers are looking at job seekers’ social media activity. And in some cases applicants are rejected because of postings on Facebook and other sites. “Fifty-one percent of employers say they now have found something on social media that has caused them not to hire somebody and that is up from 34 percent in 2012,” Michael Erwin of CareerBuilder says. “This means that you now more than ever have to be very careful of what you are posting on social media and what your friends are posting.” It’s difficult to erase old social media postings.

Google says it has begun deleting some search results at the request of users, following the European Union’s “right-to-be-forgotten” ruling. People have a right to ask for the removal of irrelevant or embarrassing personal information that pops up on a search of their names. Several weeks after the decision by the European Court of Justice, the company set up an online interface for users to register complaints. Google spokesman Al Verney says the company began taking down some results this week, but it has a backlog to work through. He said “each request has to be assessed individually.” Google is only deleting information that appears on its own results pages. It has no control over information on websites.

Ikea’s U.S. division is raising the minimum wage for thousands of its retail workers, pegging it to the cost of living in each location instead of to local competition. The new minimum, to take effect in the beginning of 2015, amounts to a 17 percent  increase for the lowest-paid employees. About half of Ikea’s 11,000 hourly store workers will get a raise. The move represents a big shift in approach. Ikea, which has cultivated a reputation for fair treatment of its workers, evaluates its benefits plans every year and had always adjusted wages based on its competition. But Rob Olson, Ikea’s acting U.S. president, says the company is focusing less on what rivals do and more on the needs of its work

The New York state attorney general is suing the British-owned bank Barclays. Eric Schneiderman accuses the firm of making false statements about its “dark pool” private stock trading platform and other aspects of its electronic trading division. He is seeking unspecified damages and wants Barclays to change what it’s doing. Schneiderman says Barclays’ system favors high-frequency traders at the expense of other investors. High-speed firms use highly complex computer data to buy and sell large amounts of stocks in microseconds, taking advantage of tiny changes in stock prices. “The facts alleged in our complaint show that Barclays demonstrated a disturbing disregard for its investors in a systematic pattern of fraud and deceit,” Schneiderman says.

Richard Davies Business Correspondent ABC News Radio abcnews.com Twitter: daviesnow

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