Key hire for flagging GM

        General Motors Corp. hired former Chrysler Corp. Vice Chairman Robert Lutz as vice chairman of product development to help the largest automaker improve its vehicles and reverse falling market share.

        Mr. Lutz, 69, will report to GM Chief Executive Rick Wagoner. The automaker's design chief, vice president of North American engineering and 14 vehicle-line executives will report to Mr. Lutz.

        General Motors' U.S. market share has plummeted to about 28 percent from more than 50 percent in the 1960s partly because its cars have been less attractive than models made by rivals, analysts said.
       

New orders fall

        New orders placed at U.S. manufacturers fell more than expected in June, pulled down by slower demand for automobiles and computers as well as less spending on non-durable goods such as gasoline.

        The 2.4 percent decline in bookings to $334.6 billion in June followed a 2.2 percent increase in May that was smaller than first estimated, the Commerce Department said. Analysts had expected a drop of 1.3 percent after a previously reported rise of 2.5 percent in May.

        Orders excluding transportation equipment fell 2.3 percent after rising 2 percent a month earlier. Reduced business investment showed up in bookings for non-defense capital goods excluding aircraft. Those declined a fifth straight month. All suggest the year-old slump in manufacturing hasn't neared an end.
       

Oakley shares drop

        Oakley Inc.'s shares dropped a record 37 percent after the company said second-half earnings will fall because its largest customer, Luxottica SpA's Sunglass Hut chain, reduced orders.

        The stock fell $5.71 to $11.78 in midafternoon trading, after earlier dropping to $11. It had risen 2.9 percent in the past year.

        Luxottica this week told Oakley it planned to stock more of its own brands at Sunglass Hut, which the Italian company bought in April. As recently as three weeks ago, Luxottica intended to continue ordering Oakley products at the same level, Oakley said.

NetZero cuts jobs

        NetZero Inc., which offers free Internet access, has cut 66 jobs, or 26 percent of its work force, and will reduce the hours its users can log on without charge to trim operating expenses.

        The company said yesterday that it fired 39 employees and sold its RocketCash electronic-commerce business, which employs 27. Spokeswoman Liz Gengl today declined to say who bought RocketCash or how much was paid. NetZero, which is unprofitable, has been trying to pare expenses as its advertising sales decline.
       

PepsiCo buys Oats

        PepsiCo Inc., the second-largest soft-drink maker, completed its $14 billion acquisition of Quaker Oats Co., gaining top-selling Gatorade sports drink.

        The purchase was cleared Wednesday when the U.S. Federal Trade Commission deadlocked on a staff position that the acquisition would hurt competition for thirst-quenching cold drinks.
       

Jobless claims slide

        The number of U.S. workers filing new claims for state unemployment benefits unexpectedly declined last week to the lowest level in almost 5 1/2months, government figures showed.

        Initial jobless claims fell by 23,000 to a level of 346,000 in the week that ended Saturday from a revised 369,000 the prior week, the Labor Department said.

Mortgage rates down

        Rates on 30-year and 15-year mortgages around the country hit a four-month low this week, while rates on one-year adjustable mortgages rose.

        The average interest rate on 30-year fixed-rate mortgages dipped to 7.00 percent for the week ending today, down from 7.03 percent last week, according to a nationwide surveyy by Freddie Mac, the mortgage company.

Armor, O'Gara make plans
Radio ads suddenly a bit cheaper
Flood cleanup backs up
N. Ky. putting the 'knew' in New Economy
Generic version of Prozac debuts
Industry notes: Manufacturing
Shares fall after loss at American Financial posted
Business Digest
Morning Memo
Tristate Summary
What's the Buzz?