STATEWIDE

COMMISSION’S PLAN CREATES ‘REGIONAL CITY OF BUFFALO’

Don’t change the mailing labels yet. But if a commission’s vision becomes a reality, Buffalo will become the “Regional City of Buffalo,” melded with Erie County as a way to combat the city’s disappearing tax base and urban sprawl. A panel appointed by city and county leaders last spring released a legislative proposal yesterday that would merge Buffalo and Erie County. Supporters point to similar actions in Indianapolis, Minneapolis, and elsewhere, and see an opportunity to better position Buffalo to compete against other regions for new development and investment. The panel hopes to push the proposal through the county and state legislatures in time to get a voter referendum on the ballot in November. Buffalo Mayor Anthony Masiello will not be among those campaigning for it. Although he was instrumental in forming the commission, and served as a member, he was notably absent at the plan’s unveiling, explaining later that he had “serious disagreements.” Under the measure, Buffalo would be folded into the county, whose name would be changed to the Regional City of Buffalo. Buffalo would become a municipal services area while the county’s more than 40 other municipalities would remain intact. The city’s 2,700 workers would become county workers and the region would be governed by a 21-member legislature. Buffalo schools would continue to be funded only through city property tax revenue and the state. Labor contracts with city workers would be set aside.

– Associated Press

PEOPLE

INTERPUBLIC NAMES ROTH CHIEF EXECUTIVE, BELL CO-CHAIR

Interpublic Group of Companies, the world’s third-largest advertising company, said Chairman Michael Roth is taking the additional title of chief executive officer. David Bell, who has served as CEO, was named co-chairman, the company said in a statement yesterday. Roth was appointed chairman in June 2004. Interpublic, based in New York, has been cutting jobs and shedding unprofitable units to save money after posting seven consecutive quarters of losses. The company took a third quarter charge of $445 million in November to reduce the value of advertising firms it acquired. “We’ve always been clear that an organization as complex as Interpublic needs two senior executives at the top,” Mr. Bell said in a statement. Interpublic said last year it’s trying to restructure with the goal of saving $170 million to $180 million a year. The company, which created the “Got Milk?” campaign, owns advertising agencies including Lowe & Partners, Universal McCann, and Foote Cone & Belding Worldwide.

– Bloomberg News

AUTOMOTIVE

GM’S 4TH-QUARTER NET FALLS 37% ON EUROPE, MEDICAL COSTS

General Motors Corp., the world’s largest automaker, said fourth-quarter profit fell 37% as health-care costs climbed and losses increased in Europe. The company projected a decline in first-quarter profit. Net income fell to $630 million, or $1.11 a share, from $1 billion, or $2.13 a share, a year earlier, Detroit-based GM said yesterday in a statement. Revenue rose 5.1% to $51.3 billion. Profit was reduced by $597 million in costs related to American plant closings and writing down an investment in Fiat Auto SpA. GM lost American market share for the second straight year in 2004, while Asian companies led by Toyota captured a record 35%. GM, which has the smallest market capitalization of the six largest automakers in America, is relying on new models such as the Chevy Cobalt sedan this year to stabilize demand after market-share losses last year, Chief Financial Officer John Devine said in an interview today. Cost cuts in Europe and North America later this year should help make up for the “slow start” to the year, he said.

– Bloomberg News