Continued from page 1

NHTSA said in the documents that BMW and investigators have received 50 complaints about the problem.

SERBIA

Fiat opens production line for family city car

KRAGUJEVAC — Italian carmaker Fiat opened a production line in Kragujevac, Serbia, for the new family version of its popular 500 city car on Monday.

Fiat hopes to sell about 160,000 hatchbacks a year produced in this central Serbian town, which was selected to take advantage of low wages, tax breaks and government subsidies.

The Italian carmaker said the four-door 500L - the L stands for Large - multipurpose vehicle is designed to be “generous” in its size and features, and ecological and simple to drive.

Fiat and Chrysler chief executive Sergio Marchionne, who attended the opening ceremonies for the factory, said the car was set for an autumn launch and was designed to appeal to markets on both sides of the Atlantic. The basic price per car is set to be (euro) 16,000 ($21,000).

NEW YORK

Hostess workers counter bankruptcy court proposal

NEW YORK — A union official representing workers at Hostess Brands Inc. said Monday that he isn’t optimistic the two sides will come to an agreement over workers’ contracts before the dispute lands in bankruptcy court.

Hostess has said it will ask the court this week to toss its existing union contracts if its unions don’t accept cost-cutting proposals in its “final” offer. The company filed for bankruptcy protection in January, citing rising competition and pension and medical costs.

Ken Hall, general secretary-treasurer of the Teamsters union, says his union’s members will walk off the job if the court throws out the contracts. CEO Greg Rayburn says a strike will force the company to shut down and liquidate.

The unions sent Mr. Rayburn a counteroffer Sunday night.

“I don’t think we’ll hear back,” Mr. Hall said.

A representative for Mr. Rayburn and Hostess, which makes Twinkies, Wonder Bread, Ding Dongs and other popular foods, did not immediately return a call for comment on Monday.

Story Continues →