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Tuesday, Aug. 12, 2008

The Buzz on Business

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CHRYSLER CHIEF SEES IMPROVEMENT: Chrysler LLC's manufacturing chief says the company is working with great energy and speed to fix its quality problems, but the payoff hasn't shown up in external quality studies. Frank Ewasyshyn, executive vice president of manufacturing, said Monday that many problems reported in such studies have to do with perceived quality issues, such as ride and handling, or interiors with too many hard surfaces. In each case, the company is working hard to fix the problems, he said. The number of mechanical problems has dropped and is much lower than in the past, he said. In J.D. Power and Associates' annual survey of people who have owned cars for three years, all three Chrysler brands -- Dodge, Chrysler and Jeep -- ranked worse than the industry average in problems reported per 100 vehicles. Vehicle owners reported 229 problems per 100 Chrysler vehicles, 230 for Dodge and 253 for Jeep, compared with the industry average of 206. Ewasyshyn said Chrysler's improvements are showing up in reduced warranty costs, which are down 29 percent in the past year.

BROADBAND INTERNET DECLINES: The number of new broadband Internet subscribers in the United States fell in the second quarter to the lowest level in at least seven years, a research company said Monday. The 20 largest cable and telephone companies added a net 887,000 high-speed Internet subscribers in the three months ending June 30, according to Leichtman Research Group Inc.'s tally, which is based on public reports and estimates. The company started tracking the broadband market seven years ago. The number of new customers is half that of the second quarter of 2007. Saturation of the marketplace, along with the slowing economy, are likely reasons for the slowdown. Bruce Leichtman, president of the firm, said he believes the decline in new customers was likely exacerbated by decisions at the two largest phone companies, AT&T Inc. and Verizon Communications Inc., to emphasize faster, more expensive services over entry-level DSL.

NEW LINE FOR BABIES R US: Toy retailer Toys R Us Inc. said Monday that its Babies R Us stores will offer an exclusive line of baby products and apparel created by Amy Coe. The 300-piece collection, in stores this month, includes infant furniture, bedding sets, diaper bags, apparel and other products. Coe previously designed a line of children's bedding and other products for discount retailer Target Corp. Gerald L. Storch, company chairman and chief executive, said in an interview that the line was created to put a contemporary spin on baby products with Coe's bright and modern-looking designs.

Figuratively Speaking

43: Percentage of American credit card holders who say they always pay off the full balance on their cards each month, according to a Gallup Poll

25: Percentage who acknowledge that they usually leave a balance

12: Percentage who say they usually pay only the minimum amount due each month

JOHN MacINTYRE, UNIVERSAL PRESS SYNDICATE

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