Business news digest

NATION

Chrysler, German supplier strike axle-factory deal

MARYSVILLE, Mich. — Chrysler LLC and German auto parts supplier ZF Friedrichschafen AG have struck a deal for ZF to run a new Chrysler axle factory north of Detroit.

The German company will own the equipment at the new factory, while Chrysler will own the building and employ its 350 workers.

Chrysler Vice Chairman and President Tom LaSorda said ZF’s purchase of the equipment will help the automaker’s short-term cash flow and give Chrysler access to new fuel-efficient axle technology from ZF Friedrichschafen.

Mexican billionaire has faith in Circuit City

RICHMOND, Va. — A Mexican billionaire who owns a large stake in Circuit City Stores Inc. believes there’s great market opportunity in the company, even though it is under bankruptcy protection, a spokesman said Tuesday.

Ricardo Salinas Pliego, who is on Forbes magazine’s list of the world’s richest people, is “banking on a great trademark, which is Circuit City,” said Luis Nino de Rivera, a spokesman. Salinas now owns a 28 percent stake in Circuit City, the nation’s second-largest consumer electronics retailer, after purchasing more than 47 million shares.

Associated Press