LOCAL BUSINESS
Allstate gets outlook upgrade
Allstate Corp., the largest publicly traded U.S. auto and home insurer, had its outlook raised to stable from negative Monday by Standard & Poor’s after the company announced plans to retire debt.
“We view the combination of Allstate’s capital plans and continued improvement in its risk profile as a demonstration that capital adequacy will continue to support the rating level,” S&P said in a statement about the Northbrook, Ill.-based insurer that has regional operations based in Hudson.
Panera to sponsor marathon
The Akron Marathon announced Panera Bread has become a partner of the event. The marathon organization said Panera will have special registration from June 4-19. The race will be Sept. 28.
“The Akron Marathon is thrilled to partner with Panera Bread,” said Anne Bitong, executive director. “Our partnership highlights the importance of proper training and nutrition.”
The Marathon includes four events: the full marathon, the half marathon, the five-person team relay and the kids fun run. The marathon said it has grown by more than 10,000 participants since the inaugural in 2003.
Registration information for the 11th event is online at akronmarathon.org.
LEGAL
Kellogg to settle lawsuit
Kellogg has agreed to pay $4 million to settle a class-action lawsuit over the marketing claims it made for Frosted Mini-Wheats. The company, which also makes Frosted Flakes, Eggo waffles and Pop Tarts, was sued for saying that the cereal improved children’s attentiveness, memory and other cognitive functions.
Kellogg says in a statement that the ad campaign in question ran about four years ago and that it has since adjusted its messaging. If approved by the court, the law firm representing consumers says the settlement will result in cash refunds for up to three boxes of cereal purchased during the time of the advertising in question.
AUTO INDUSTRY
Volkswagen to increase pay
Volkswagen, Europe’s largest carmaker, agreed to raise wages for German workers by 5.7 percent over 20 months as the country’s biggest manufacturing union helped employees tap into the company’s growing profit. VW will increase base pay by 3.4 percent as of Sept. 1 and another 2.2 percent as of July 1, 2014, the company said.
Contract terms are in line with an industrywide pay increase that the IG Metall union won in mid-May for about 770,000 manufacturing workers in the state of Bavaria. That accord is being used as a model for labor agreements elsewhere in the country. The VW pact, negotiated separately from IG Metall’s regional accords, covers 102,000 employees at six plants in western Germany and the financial services unit.
Germany’s economy grew just 0.1 percent in the first quarter, according to the Federal Statistics Office. The economy of the euro area, Germany’s biggest export destination, is slated to shrink a second consecutive year in 2013.
Toyota to give board raises
Toyota said it plans to increase compensation and bonuses for board members as it forecasts profit and sales will climb to the highest level in six years. Toyota plans to increase by 28 percent compensation and bonuses to directors, as well as audit and supervisory board members, for the year ended March 2013, the company said in a notice sent to shareholders. The Japanese carmaker projects net income to increase 42 percent in the year ending March 2014. The company earlier this month reported its biggest annual profit in five years, and in March approved the biggest bonus for workers since 2008. The amount to be paid to directors will be decided at Toyota’s June 14 shareholders’ meeting.
Ford engine gets scrutiny
The federal government is investigating reports that Ford F-150 pickup trucks equipped with Ecoboost engines lost power during hard acceleration, particularly under humid or damp conditions. The 95 reports involve model year 2011-through-2013 F-150 trucks equipped with 3.5-liter gasoline turbocharged direct injection engines, which are designed to boost fuel economy.
The magazine Consumer Reports previously has challenged whether the engines live up to the claims of Ford and other automakers. About 400,000 Ecoboost-equipped F-150 pickups are involved. Many complaints allege safety concerns associated with overtaking other vehicles, the National Highway Traffic Safety Administration said last week in announcing the investigation.
No related crashes have been reported so far, according to NHTSA, which said its investigation is preliminary and designed to determine whether the pickups have a safety defect. The Dearborn, Mich., automaker said it’s cooperating with the investigation.
Compiled from staff and wire reports