The Hershey Co. said yesterday that a new restructuring plan will move more of its production to Mexico, scaling back its work force by 1,500 jobs and forcing some plants to close. By reducing the number of production lines by more than one-third, the company expects to save as much as $190 million a year.

The maker of Hershey's Kisses, Reese's peanut butter cups and Mounds bars currently employs about 13,000 people at 20 plants in the United States, Canada, Mexico and Brazil. The planned cuts amount to 11.5% of that work force.

Reaction among financial analysts is mixed. Andrew Lazar of Lehman Brothers says the plan should provide Hershey with more marketing firepower to invest in its core brands, as well as new offerings, such as premium and dark chocolate.

Wachovia Securities analyst Jonathan P. Feeney was skeptical, however, saying that pulling capacity out of the system does not address Hershey's fundamental problem, "which is to reinvigorate consumer response to its core chocolate products." Read the whole story...

For six weeks, the Chrysler Group and General Motors have been discussing the possibility that G.M. would produce a big S.U.V. like the Tahoe for Chrysler to sell in the United States and other markets, according to people with direct knowledge of the talks.

Chrysler, whose lineup is weighted heavily toward S.U.V.'s, pickups and minivans, has talked about building a large S.U.V. for more than 20 years. But it has not been able to find a way to justify the expense of developing one. G.M. builds the Tahoe, as well as a sister vehicle, the G.M.C. Yukon.

"It's ironic that both of them are in financial trouble because they're too dependent on big vehicles, and now they're talking about doing a big vehicle together," says Kevin Smith, editorial director of Edmunds.com.

S.U.V. sales have fallen since 2002, especially after gasoline prices spiked above $3 a gallon in 2005 and 2006. Still, auto companies say there is a market for big S.U.V.'s, especially for buyers with large families and those who use them for business. Read the whole story...

The guerilla marketing devices for Aqua Teen Hunger Force that created havoc in Boston on Jan. 31 were never intended to scare people and were designed to highlight the show's character, says Sam Ewen, founder of Interference Inc., the New York marketing agency hired to create and execute the program.

In an exclusive interview, Ewen says that the signs were always intended to go on at night and go off during the day. He also says that a "making of" video posted on YouTube was not part of a multi-layer marketing campaign that would unfold over time. Instead, it was made to document the campaign for the client, Turner Broadcasting Co.'s Cartoon Network.

Ewen also points out that the campaign had been up in several markets for weeks with no commentary. "From the moment that we got word of what was happening, we focused on it and took it seriously," he says. Read the whole story...

Under Armour has reached a sponsorship agreement with the Chicago Cubs that includes displaying its logo on two doors on the hallowed ivy-covered outfield wall at Wrigley Field. It will also have signage rights behind home plate. Financial terms of the two-year deal were not announced.

Baseball diehards--particularly Wrigley Field denizens--will almost certainly decry the ad creep taking place. But baseball historians will note that stadiums regularly featured advertising on outfield walls during the heyday of the game, including the famous "Hit Sign, Win Suit" ad at Ebbets Field, former home of the Brooklyn Dodgers, in the 1940s and '50s.

Under Armour--which also has its logo on the famed "Green Monster" left field wall at Boston's historic Fenway Park--is launching an ad campaign this spring that touts its new baseball cleats. Read the whole story...

A bill introduced in both the House and Senate yesterday would grant the Food and Drug Administration legal authority to regulate nicotine. The FDA would also gain the power to restrict tobacco advertising, require stronger warnings on cigarette packs, mandate reductions in nicotine, regulate additives and set stiff penalties for selling to minors.
The FDA had previously asserted it had such power, but the Supreme Court disagreed, ruling in 2000 that Congress must specifically confer such authority.

Although the White House has not supported similar legislation in the past, it's not clear what position President Bush will take this time. The biggest cigarette company, Philip Morris Cos., favors the legislation. But many smaller companies oppose regulation, in part because it could create roadblocks to competition that would benefit Philip Morris. Most major public-health groups support federal oversight. Read the whole story...