Ramping Up U.S. Production, Ford Expands in Ohio

DETROIT — Ford Motor Company is adding 450 jobs and expanding an engine plant in Ohio to feed the growing demand for more fuel-efficient cars and S.U.V.'s in the American market.

Ford, the nation’s second largest automaker after General Motors, said Thursday it would spend $200 million to renovate its Cleveland engine plant to produce small, turbocharged engines for use in its top-selling models.

The move is the latest by automakers to expand production in the United States, where sales have increased 14 percent so far this year compared with 2012.

Last month, G.M. announced plans to invest $600 million in its assembly plant near Kansas City, Kan., one of the company’s oldest factories. And Chrysler, the smallest of the Detroit car companies, is adding a third shift to its Jeep plant in Detroit.

The expansions are another tangible sign of the steady recovery in the American auto market, which fell to historic lows during the recession.

Both G.M. and Chrysler were forced to declare bankruptcy in 2009 in exchange for big government bailouts. While Ford survived the industry’s financial crisis without help, it still cut thousands of jobs and shuttered several factories to reduce costs and bring production more in line with shrinking sales.

But the tide has turned in car showrooms across the United States, prompting automakers to strategically increase output in their remaining plants.

In Ford’s case, the company added about 8,000 salaried and hourly jobs last year, and has said it plans to hire about 2,200 white-collar workers in 2013. Ford is also moving some vehicle production from Mexico to a Michigan plant, where it will add 1,200 jobs.

The investment in Cleveland is indicative of how Ford and other carmakers have trimmed labor costs in the United States and improved productivity since the recession.

Just a few years ago, the company was forced to consolidate two engine plants into one in northern Ohio and to close a major component operation.

“No question we have been through a lot in northern Ohio,” said Joe Hinrichs, the head of Ford’s Americas region, in an interview. “But now our North American business is very competitive with the best in the world.”

Ford plans to centralize production of its 2-liter, EcoBoost engine — used in popular models such as the Fusion sedan and Explorer S.U.V. — at the Cleveland facility by the end of next year. Currently, the company makes the engines at a plant in Spain and ships them to America.

While Ford is adding jobs and production domestically, it is racing to reduce costs in its troubled European division. Workers who previously built the small engines in Spain will be moved to a nearby assembly plant that is taking on work from a plant to be closed in Belgium.

Mr. Hinrichs said that a new agreement with the United Automobile Workers union local in Cleveland paved the way for the expansion there. The plant now employs about 1,300 workers.

“This is about servicing more demand in the U.S.,” Mr. Hinrichs said. “And with our competitive labor agreements, we can bring business to the U.S. from Spain and Mexico.”

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Interstate 5 reopens through the Grapevine

From Times Staff

February 20, 2013, 9:44 a.m.

The California Highway Patrol has reopened a stretch of Interstate 5 through the Grapevine that was closed earlier today because of ice.

The highway was opened to vehicles with escorts at about 9:15 a.m., said CHP Officer Ed Jacobs. The freeway was closed between Castaic and Grapevine Road about 6:35 a.m., Jacobs said.

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Navy Tweets How Budget Cuts Will Sink Its Fleet, Ground Its Planes

If automatic Pentagon budget cuts go through as scheduled next week, the Navy is going to grind its major operations practically to a halt. Or at least that’s the message it’s sending on social media.

The Navy’s top public-affairs officer, Rear Adm. John Kirby, tweeted out an updated plan Tuesday for how the Navy absorbs billions of dollars in budget cuts scheduled to take effect on March 1. The deployments of 10 destroyers will be cancelled, including seven tasked with missile defense. Four aircraft-carrier air wings will be “shut down.” The Navy will “Reduce Investment in ships, aircraft, weapons, R&D” by $7.75 billion. Should a crisis break out somewhere in the world in 2013, only one aircraft carrier strike group will be available for deployment.

Others in the Navy public-affairs shop took to their own social-media accounts to spread the word. The Navy’s official Twitter account retweeted the planning document to its 114,000-plus followers. Consider it a form of public pressure.

Tweeting the expected impact for what’s called “sequestration” inside the Beltway fits a recent Navy pattern. The seafaring service has been vocal in advertising how budget cuts will hobble it. Earlier this month, it publicly cancelled the deployment of the USS Harry Truman to the Middle East, leaving the region with only one U.S. aircraft carrier near Iran for the first time in two years, right before a new round of nuclear negotiations with the Iranians. Days later, it said it would delay the years-long refueling and retrofitting of another aircraft carrier, the USS Abraham Lincoln, which saves money by putting additional strain on the other carriers. (And something also prominently tweeted by the Navy.) Air-show attendees will also have to do without the Blue Angels.

Turns out the aircraft carriers are just the beginning of the Navy’s expected woes. There will be “immediate coverage gaps” in multiple military commands worldwide, according to the Navy plan. No amphibious ready groups will be prepared to go into crisis zones. The Marines’ version of the F-35 stealth fighter won’t go into flight testing on the USS Wasp. There won’t be any Navy operations in South America. And all of this is on top of the Navy’s recent announcement that it expects to build fewer surface ships than it had planned for years.

It’s debatable how much this Navy planning is intended to pressure Congress and President Obama to work out a deal averting the cuts ahead of the March 1 deadline. At least one commentator thinks the Navy’s public cries of impending penury are inappropriate. “The Navy could have cut back other, less-sensitive deployments or acquisition programs,” Ralph Peters wrote in the New York Post last week. “But the Chief of Naval Operations, Adm. Jonathan Greenert, chose to embarrass the White House and pressure Congress. He should have been fired.”

As Sam LaGrone of the U.S. Naval Institute wrote for Danger Room last week, the Navy’s making a specific gamble with its deployment cuts and their impact on short-term naval readiness. It’s sacrificing what it does in the near-term in order to preserve its long-term, high-budget shipbuilding plans, which take years to come to fruition.

But the Navy’s social-media plan already is. It took the unusual step of tweeting its budget documents shortly after sending it to Congress. Congress is out of session this week — indicating that Navy is diving into the blue waters of public opinion to save its money.

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Paul McCartney tops Bonnaroo music festival lineup

NASHVILLE, Tenn (Reuters) – Paul McCartney will perform at the Bonnaroo Music and Arts Festival in Tennessee in June along with Tom Petty & The Heartbreakers, Mumford & Sons, Bjork and Wilco, festival organizers said on Tuesday.

“Top to bottom, this is one of the strongest lineups we have ever had,” Bonnaroo spokesman Jeff Cuellar said in an interview. “Looking at the festival landscape out there … no other American festival has Mumford & Sons, Paul McCartney and Bjork all under one roof.”

Bonnaroo is among the top live music gatherings of the year, much like the Coachella Valley Music and Arts Festival in California and the Glastonbury Festival of Contemporary Performing Arts in Britain.

Up to 100,000 fans flock to the annual festival in Manchester, Tennessee, to see singers, comedians, art and films.

The 2013 concert lineup announced on Tuesday also included R. Kelly, Wu-Tang Clan, David Byrne & St. Vincent, ZZ Top, “Weird Al” Yankovic, Gov’t Mule and Dwight Yoakam.

Tickets for the festival go on sale February 23 on bonnaroo.com.

(Reporting by Tim Ghianni; Editing by David Bailey and Stacey Joyce)

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Well: Caffeine Linked to Low Birth Weight Babies

New research suggests that drinking caffeinated drinks during pregnancy raises the risk of having a low birth weight baby.

Caffeine has long been linked to adverse effects in pregnant women, prompting many expectant mothers to give up coffee and tea. But for those who cannot do without their morning coffee, health officials over the years have offered conflicting guidelines on safe amounts during pregnancy.

The World Health Organization recommends a limit of 300 milligrams of caffeine a day, equivalent to about three eight-ounce cups of regular brewed coffee. The American College of Obstetricians and Gynecologists stated in 2010 that pregnant women could consume up to 200 milligrams a day without increasing their risk of miscarriage or preterm birth.

In the latest study, published in the journal BMC Medicine, researchers collected data on almost 60,000 pregnancies over a 10-year period. After excluding women with potentially problematic medical conditions, they found no link between caffeine consumption – from food or drinks – and the risk of preterm birth. But there was an association with low birth weight.

For a child expected to weigh about eight pounds at birth, the child lost between three-quarters of an ounce to an ounce in birth weight for each 100 milligrams of caffeine from all sources that the mother consumed each day. Even after the researchers excluded from their analysis smokers, a group that is at higher risk for complications and also includes many coffee drinkers, the link remained.

One study author, Dr. Verena Sengpiel of the Sahlgrenska University Hospital in Sweden, said the findings were not definitive because the study was observational, and correlation does not equal causation. But they do suggest that women might put their caffeine consumption “on pause” while pregnant, she said, or at least stay below two cups of coffee per day.

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Correction: The story was revised to clarify that the child lost up to an ounce in birth weight for each 100 milligrams of caffeine that the mother consumed daily.

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DealBook: Office Depot and OfficeMax Announce Plans to Merge, After Erroneous Release

11:12 a.m. | Updated

Office Depot and OfficeMax announced plans to merge on Wednesday, just hours after an erroneous news release about the deal surfaced briefly.

Under the terms of the deal, Office Depot said it would issue 2.69 new shares of common stock for each share of OfficeMax. At that level, the transaction would value OfficeMax at $13.50 a share, or roughly $1.19 billion, a premium of more than 25 percent to the company’s closing price last week.

The deal has been anticipated, as the companies face an increasingly difficult competitive environment. Both companies, which are burdened with big real estate footprints, have struggled against lower-priced rivals like Amazon.com and Costco. By uniting, the two companies should be able to reduce costs and better negotiate prices.

“In the past decade, with the growth of the Internet, our industry has changed dramatically,” Neil R. Austrian, chairman and chief executive of Office Depot, said in a statement. “Combining our two companies will enhance our ability to serve customers around the world, offer new opportunities for our employees, make us a more attractive partner to our vendors and increase stockholder value.”

While the deal has been years in the making, it was initially announced prematurely. A news release announcing the merger of the companies was posted on Office Depot’s Web site early on Wednesday morning, but it quickly disappeared.

Several news organizations reported the terms disclosed in the errant news release for Office Depot’s earnings. The details were buried on page four of the release, under the header “Other Matters.”

As the details filtered through the market, shares of the companies jumped. In premarket trading, Office Depot’s stock rose more than 7 percent, while OfficeMax shares were up more than 8 percent.

In a call with analysts, Mr. Austrian said that Office Depot’s webcast provider “inadvertently” published his company’s fourth-quarter earnings “well ahead of schedule.”

The episode is reminiscent of other times that companies’ earnings releases were published prematurely. Last fall, Google‘s third-quarter earnings were published three hours early, which the technology giant blamed on a mistake by R.R. Donnelley & Sons, the company’s printer.

Representatives for Office Depot and OfficeMax were not immediately available for comment on the erroneous release.

Strategically, the deal makes sense, as the companies face a changing competitive environment.

Combined, the companies reported about $4.4 billion in revenue for their third quarter of 2012; in comparison, Staples disclosed $6.4 billion in revenue for the same period.

Office Depot has also been under pressure from an activist hedge fund, Starboard Value, which sent a letter to the retailer’s board last fall. In it, Starboard called for more cost cuts and a greater focus on higher-margin businesses like copy and print services. With a 14.8 percent stake, Starboard is the company’s biggest investor.

In announcing the deal, the two companies emphasized their new financial heft.

With the merger, the retailers expect to generate $400 million to $600 million in annual cost savings. The combined entity would also have $1 billion in cash, providing additional firepower to invest in the business.

“We are excited to bring together two companies intent on accelerating innovation for our customers and better differentiating us for success in a dynamic and highly competitive global industry,” Ravi K. Saligram, chief executive of OfficeMax, said in a statement. “We are confident that there will be exciting new opportunities for employees as part of a truly global business.”

Each company will have an equal number of directors on the board of the combined retailer. Before the deal closes, OfficeMax will pay a special dividend of $1.50 a share to its shareholders.

OfficeMax was advised by JPMorgan Chase and the law firms Skadden, Arps, Slate, Meagher & Flom and Dechert. Office Depot was counseled by Simpson Thacher & Bartlett, while its board was advised by the Peter J. Solomon Company, Morgan Stanley and Kirkland & Ellis. Perella Weinberg Partners provided financial advice to the board’s transaction committee.

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O.C. shootings: Ladera Ranch neighbor heard a 'bunch of ruckus'

Authorities believe the man suspected of killing three people in a series of slayings and carjackings in Orange County early Tuesday also fired at vehicles on the 55 Freeway, causing minor injuries to at least one person.

Officials said the suspect fired either while driving or that he stopped, got out of his vehicle and fired rounds at passing cars. At least three victims have reported minor injuries or damage to their cars.
Authorities asked people to contact police if they believe they were targeted.

Orange County Sheriff's Department spokesman Jim Amormino said the series of shootings ended when the gunman shot himself to death as police attempted to stop him in the city of Orange.

Amormino said a shotgun has been recovered and that there may be additional weapons. In addition to the Sheriff's Department, the FBI, Santa Ana police, California Highway Patrol and Tustin police are assisting the investigation.

The suspect's alleged series of killings appeared to begin early Tuesday at a home in Ladera Ranch, where Amormino said deputies found a woman shot to death about 4:45 a.m.

Deputies were called to the house on Red Leaf Lane when someone inside reported a shooting, Amormino said. It was unclear whether anyone else was home at the time, but no other injuries were reported.

The suspect, initially described as a man in his 20s, fled the area in an SUV to Tustin, where "multiple incidents" occurred in the city and near the Santa Ana border, Amormino said.

"There's a lot to sort out," he told The Times. A news conference is scheduled for 2 p.m.

Tustin Police Lt. Paul Garaven said the suspect attempted to carjack multiple vehicles in Tustin, with each shooting occurring a few minutes apart.

Police received a report about 5:30 a.m. of a carjacking near Red Hill Avenue and Nisson Road near the 5 Freeway in Tustin, Garaven said.

The carjacking suspect opened fire and wounded a bystander, he said.

Soon after that, another carjacking was reported near the southbound 55 Freeway at McFadden Avenue, Santa Ana police Cpl. Anthony Bertagna said. There, the suspect allegedly confronted a man in a BMW, ordered him out of the vehicle, walked him to the curb and "executes our victim," Bertagna said.

Another shooting was reported on Edinger Avenue near the Micro Center computer store in Tustin, Garaven said. Officers confirmed that another carjacking had taken place, he said.

One person was killed and another was taken to a hospital. Officers spotted the suspect in a stolen vehicle, followed him into the city of Orange and initiated a traffic stop near the intersection of East Katella Avenue and North Wanda Road, Garaven said.

The suspect then shot and killed himself, Garaven said.

Amormino said deputies were still trying to piece together a possible motive and the relationship between the suspect and victims, including the woman at the first incident in Ladera Ranch.

"Ladera Ranch is a very quiet community," Amormino said. "It's very rare for something of this nature to occur there."

Jason Glass said he was across the street from the Ladera Ranch crime scene, working in his garage, when between 2 and 3 a.m. he heard what he now believes were three to five gunshots. About 4 a.m., Glass said, he "heard a bunch of ruckus" -- no yelling, but lots of doors slamming -- before a car sped away from the house.

"I just thought somebody was being really loud and obnoxious," Glass said.

Glass said a couple had lived at the home for about a year with three children. The family was quiet, he said.
"No noise ever came out of that house," he said. "No cops ever came to that house, nothing. This is really weird."

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Barstool Ski Racing Is the Art of Not Spiffing It

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Clive Davis reveals in memoir that he’s bisexual

NEW YORK (AP) — Record executive Clive Davis says he’s bisexual.

In his new memoir, out Tuesday, the 80-year-old, who is twice divorced, reveals that he had sex with a man in the 1970s. Davis writes in “The Soundtrack of My Life” that he hadn’t been repressed or confused during his marriages and that sex with a man “provided welcome relief.”

He also writes that he started dating a man from 1990 to 2004, which he says was a “tough adjustment” for his son Mitchell. He says after “one trying year,” he and his son worked things out. Davis is the father of three children.

Davis is the chief creative officer of Sony Music Entertainment. He writes that he’s been in a “strong monogamous relationship” with a man for the last seven years.

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Ask Well: Coaxing Parents to Take Better Care of Themselves

Dear Reader,

Your dilemma of wanting to get your parents to change their ways to eat better and exercise reminds me of an old joke:

How many psychologists does it take to change a light bulb? Answer: Only one, but the light bulb has to really want to change.

Sounds like your parents may be about as motivated as the light bulb right now. Still, there are things you can do to encourage them to move in a healthier direction. But the first step should not be to hand them a book. Unless you lay some prior groundwork, that gesture may seem almost as patronizing as an impatient tone of voice – and probably as likely to backfire.

Instead, start a conversation in a caring, nonjudgmental way. Ask, don’t tell. “Say, ‘You know, I might not know what I am talking about, but I am really concerned about you,” suggested Kevin Leman, a psychologist in Tucson, Ariz., and author of 42 books on changing behavior in families and relationships. Ask simply if there is anything you can do to help.

Leading by example is also more effective than lecturing. “The son can role-model health by inviting his parents to dinner and serving healthful items that he is fairly certain they will find acceptable, or ask them if they are interested in going out dancing with him and his wife,” suggested Ann Constance, director of the Upper Peninsula Diabetes Outreach Network in Michigan.

Pleasure is a better motivator for change than pain or threats. Use the grandchildren as bait. Ask if they want to take the grandchildren to the zoo or a park that would require a good bit of walking around for everyone. Or the grandchildren could ask them to come along on one of those 2K fund-raiser-walks that many schools hold. After all, a day with the grandchildren is always a pleasure in itself. (O.K., usually a pleasure.)

Tempted to give them the gift of a health club membership? “Save your money,” Dr. Leman said. Try a more indirect (and cheaper) approach. Create a mixed-tape of up-tempo music from their era. (“Songs they listened to from the ages of 12-to-17, which is what we all listen to for the rest of our lives,” said Dr. Leman) They will enjoy it any time — maybe even while walking.

If you really want someone you love to make a change, the key is to ask them to do something small and easy first because that increases the chances they will do something larger later. Psychologists call that “the foot in the door technique,” said Adam Davey, associate professor of public health at Temple University in Philadelphia, referring to a classic 1966 experiment called “Compliance Without Pressure.” In the study, which has been duplicated by others in many forms, researchers asked people to sign a petition or place a small card in a window in their home or car about keeping California beautiful or supporting safe driving. About two weeks later, the same people were asked to put a huge sign that practically covered their entire front lawn advocating the same cause.

“A surprisingly large number of those who agreed to the small sign agreed to the billboard,” because agreeing to the first small task built a bond between asker and askee “that increases the likelihood of complying with a subsequent larger request,” Dr. Davey explained.

Any plan for behavioral change is most likely to succeed if it is very specific, measurable and achievable, according to Ms.Constance.

And the new behavior should also be integrated into daily life — and repeated until it becomes a habit. For example, if you want to walk more, start with a 10-minute walk after dinner on Monday, Wednesday and Friday, Ms. Constance suggested. The next week, bump it up to 12 minutes.

Don’t give up, even if you meet initial resistance — it is never too late for your parents or you or any of us to change. “Taking up an exercise program into one’s 80s and 90s to build strength and flexibility can result in very tangible and enduring benefits in a surprisingly short time,” insisted Dr Davey.

As for instructive reading, Dr. Leman is partial to one of his own books, “Have a New You by Friday,” and Dr. Davey recommends “Biomarkers: The 10 Keys to Prolonging Vitality,” by William Evans. Ms. Constance recommends the Centers for Disease Control and Prevention’s Web site on physical activity and exercise tips for the elderly, as well as the National Institute of Health’s site on the DASH diet.

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