BUSINESS BRIEFS
iTunes to offer newer movies
Associated Press
SAN JOSE, Calif. — Apple Inc. said yesterday that new movies from a slate of major studios will now be available for purchase over iTunes the same day they're released on DVD.
The change will beef up the number of new titles available in the iTunes online store and help the service compete better against DVD retailers.
Until this week, many of the movies available for purchase over iTunes were older releases.
Newer releases have been available for rental through iTunes, but users typically have to wait 30 days after the DVD release to get their hands on those films, and the titles disappear from their libraries once they're finished watching.
Apple's announcement yesterday did not include any change to the rental policies.
FUEL-EFFICIENT CARS GAIN POPULARITY
DETROIT — Small cars were the big winners in April, as high gas prices accelerated U.S. consumers' rush away from trucks and sport utility vehicles and makers of fuel-efficient models scored gains despite the weak economy.
General Motors, Ford and Chrysler all saw double-digit U.S. sales declines compared to last April. But Nissan's sales were up 7 percent on the strength of its car sales, while Toyota's sales edged up 3 percent. Honda's sales figures were delayed because of a technical problem, but the automaker said April sales were likely to be up at least 6 percent.
Pickup sales have been falling for months because of the slowdown in housing construction, and the trend away from SUVs began several years ago as Baby Boomers aged and roomy but more fuel-efficient crossover vehicles gave consumers more choice.
General Motors Corp. said its truck and SUV sales fell 27 percent, outweighing increases in car and crossover sales and the company's best-ever month for hybrids. GM's overall sales dropped 16 percent for the month compared with last April.
HOME DEPOT WILL CLOSE 15 STORES
ATLANTA — It's been 4 1/2 years since former Home Depot Chief Executive Bob Nardelli's bold prediction that the home improvement retailer could sustain "unlimited growth" without significantly affecting sales at established stores.
That statement was made during much better economic times.
The Atlanta-based company, under different leadership, a different growth philosophy and amid an ailing housing market, put the brakes yesterday on some of its future expansion plans and said it would do what was previously unthinkable — close 15 of its underperforming flagship stores.
It is the first time the world's largest home improvement store chain has ever closed a flagship store for performance reasons.
The move, to be completed within the next two months, will affect 1,300 employees.
PILOTS REQUEST SPEED UP OF TALKS
FORT WORTH, Texas — The union representing pilots at American Airlines asked federal officials yesterday to help speed talks on a new labor contract with the nation's biggest carrier.
The Allied Pilots Association asked the National Mediation Board to speed up the talks. The agency assigned a mediator to the case last month.
Last fall, the union asked for pay raises of more than 50 percent to return their pay to 1992 levels, which company officials rejected as unaffordable.
Under federal law designed to avoid strikes, labor contracts in the airline don't expire; they become "amendable." American is also facing negotiations with its flight attendants and ground workers.
CONGRESS OKS BILL ON STUDENT LOANS
WASHINGTON — Congress gave final approval yesterday to legislation aimed at ensuring the problems in the credit markets don't prevent students from getting college loans.
The House passed the legislation in a 388-21 vote, one day after the Senate approved it. President Bush is expected to sign the measure.
"Today's vote will help ensure that students' dreams of going to college aren't sidelined by the turmoil in the credit markets," said Rep. George Miller, D-Calif., chairman of the House Education Committee.
The legislation increases limits on how much borrowers can receive in federally subsidized student loans.
That should decrease student reliance on more expensive private loans. Some students have had trouble getting those nonfederal private loans because lenders have left the market in recent months due to the credit crunch.
GM TO FOCUS ON AFFORDABLE HYBRID
SAN FRANCISCO — General Motors Corp. Chief Executive Richard Wagoner says global warming is not going to be solved with $100,000 electric cars, and his company is focusing on a vehicle more consumers can afford.
Wagoner spoke to the Commonwealth Club of California yesterday on the topics of global warming, ethanol availability, and rising gas prices.
Global warming needs a solution that can "significantly shift the fleet of vehicles to different fuels or different propulsion technologies fairly rapidly," he said after the event.
So why is it taking so long to launch the plug-in electric Chevy Volt?
"Frankly it's one thing to develop a technology for a car that's going to cost $100,000, it's very different for a car that's going to cost $20,000," Wagoner said.
