Traverse City Record-Eagle

November 20, 2012

Business in Brief: 11/20/2012

FROM WIRE REPORTS
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DEARBORN —

Ford to bring smaller engine to U.S. in 2014

Ford is bringing its smallest engine to the U.S. in the race to meet stricter government fuel economy standards.

The company says the 2014 Fiesta will be the first North American vehicle to get Ford's new 1-liter, three-cylinder EcoBoost engine when it goes on sale next year.

The 1-liter has been sold in the European version of the Focus sedan since March.

Ford isn't releasing fuel economy numbers yet, but says the 1-liter Fiesta will be the most fuel-efficient non-hybrid available. It should get well over 40 miles per gallon.

Three-cylinder engines are common in Europe but not in the U.S., where they got a reputation for being shaky and underpowered in the 1990s.

Judge asks Hostess to mediate with union

WHITE PLAINS, N.Y. — Twinkies won't die that easily after all.

Hostess Brands Inc. and its second largest union will go into mediation to try and resolve their differences, meaning the company won't go out of business just yet. The news came Monday after Hostess moved to liquidate and sell off its assets in bankruptcy court citing a crippling strike last week.

The bankruptcy judge hearing the case said Monday that the parties haven't gone through the critical step of mediation and asked the lawyer for the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, which has been on strike since Nov. 9, to ask his client, who wasn't present, if the union would agree to participate.