Company News: Apple, IBM, Volkswagen, Citigroup, Bank of America, Airbus, Boeing, AbbVie, Mylan
• Apple and IBM, once fierce rivals, have struck a deal to push iPads, iPhones, and apps deeper into the corporate world. Together, they’re developing more than 100 apps for a range of industries. Apple said IBM’s vast network of corporate clients will help it win business customers, while IBM will use Apple devices to sell more of its software and services.
• Volkswagen says it will produce a new SUV at its Chattanooga factory. It promised to add 2,000 jobs at the facility, passing up cheaper labor in Mexico in a bet that a “Made in the USA” sticker will appeal to American drivers. VW sales in the U.S. slid 7 percent last year and fell 13 percent in the first half of 2014.
• Toxic mortgages continue to take a toll on big U.S. banks. Citigroup agreed to pay $7 billion to settle federal claims that it misled investors about mortgage-backed bonds sold before the credit crisis. The deal does not preclude criminal charges. Quarterly earnings at Bank of America were dragged down by $4 billion in litigation expenses, as the bank negotiates its own settlement with the U.S. Department of Justice.
• Airbus orders soared over Boeing’s in the first few days of the Fanborough Air Show. The France-based manufacturer won $38 billion in contracts in just two days, as carriers clamored for the fuel-efficient A330. Boeing booked $9.6 billion in orders in that time.
• The Obama administration urged Congress to crack down on U.S. companies moving their headquarters overseas to avoid taxes. The call to action came hours after AbbVie and Mylan, two U.S. pharmaceutical makers, announced plans to merge with foreign partners and move abroad.