General Motors signaled the start of production engineering of its hydrogen fuel cell yesterday when it told employees at its Honeoye Falls, N.Y., fuel-cell development facility that it will shift more than 500 of the fuel-cell engineers to core production engineering divisions from its advanced development laboratories division. That could lead to the hydrogen fuel-cell version of the Chevrolet Volt being ready for significant production as early as 2010. Larry Burns, GM's vice president of research development and strategic planning, says more than 400 GM fuel-cell engineers will report to GM's powertrain group to begin production engineering of fuel-cell …

With about 19 million people in the U.S.--or roughly 9% of cell phone users--highly interested in purchasing Apple's iPhone, AT&T is looking at a possible windfall of new customers, two new consumer surveys show. Two-thirds of mobile-phone users who are interested in purchasing the iPhone would be willing to switch from their current carriers to obtain the device, according to a survey of about 11,000 cell phone users by M:Metrics. 12.5% of T-Mobile USA customers express a high interest in the phone; followed by 8.1% for Sprint Nextel; and 6.7% for Verizon Wireless. T-Mobile is seen as especially …

The impact of Kellogg's decision to advertise only foods that fit a particular nutritional profile in any medium that gets more than 50% of its audience from kids under age 12 is expected to reverberate far beyond the $11-billion marketer. Sen. Tom Harkin, D-Iowa, who has repeatedly criticized food advertising to kids, says that he hopes that "other food companies follow suit." Responding to pressure from interest groups, 11 of the country's biggest food and fast-food marketers--Kellogg among them--have already prepared pledges to comply with a new initiative from the Council of Better Business Bureaus and the National …

Hammering on Amazon.com's "customer-centric" approach during the company's annual meeting yesterday, CEO Jeff Bezos revealed that the Web retailer won't make a profit on the more than 1 million pre-orders for the final Harry Potter book, due out in July. Amazon is offering a $17 discount off the cover price, free shipping and guaranteed on-time delivery of "Harry Potter and the Deathly Hallows." Bezos also told 50 or so shareholders that Amazon sacrifices $600 million in shipping revenue each year, thanks to the $79-a-year Amazon Prime free-shipping membership available in the U.S. and Japan, and other shipping offers. …

Montblanc recently sold a $700,000-plus pen--adorned with rubies, sapphires and diamonds--just a few days after it went on sale. Cartier gets $1 million to $2 million sales checks--rare only a few years ago--a couple times a month at its North American boutiques. And Bulgari reports that single purchases in the millions of dollars are becoming more common in the U.S. At a time when the average American is grousing about meager wage growth, the super rich are seeking new heights in pampering, price tags and one-of-a-kind items that set them apart. The over-the-top splurging is happening at a …

Ian Schrager, the hotelier behind hip properties like Morgans in Manhattan, will develop a chain of boutique hotels for Marriott International, one of the industry's most conservative companies. Schrager will focus on designing, marketing and branding the hotels; Marriott will operate them under long-term management contracts. The new brand--which hasn't yet been named--will be added to a stable that includes Marriott's flagship hotels, its luxury Ritz-Carlton brand and the mid-scale Residence Inn and Courtyard by Marriott brands. Rates at the hotels--planned for cities including Miami, Los Angeles, Las Vegas, London and Singapore--will be in the luxury range of hundreds …

The Food and Drug Administration is exploring ways to overhaul how it inspects and regulates imported food. It is considering--among other actions--using risk analysis to try to pinpoint shipments that might pose hazards. Under the new approach, countries and private businesses--including foreign manufacturers, importers and U.S. manufacturers using imported ingredients--might be required to provide the FDA with more information about the production, packaging and transportation of imported foods. The plan, which hasn't been finalized, is likely to include several elements from The 2002 Import Strategic Plan that has been lying dormant in the agency for five years, …

Race car driver Dale Earnhardt says Budweiser is "funner than hell," but his decision to walk away from the No. 8 Budweiser Chevrolet throws into question a nearly decade-long partnership -- one of the most recognizable corporate sponsorships in the sporting world. Earnhardt's move suggests that the field is open for other companies to swoop in and put their tag on his car, now that he has joined Hendrick Motorsports. Tony Ponturo, A-B's vice president of global media and sports marketing, says the company isn't prepared to let Earnhardt slip away too easily. "We look forward to exploring options …

The dean of Manchester Cathedral in northwest England urged the Japanese people to become involved in a dispute over a Sony computer game that that allegedly uses the British church as a backdrop for scenes of graphic violence. The new PlayStation 3 game ''Resistance: Fall of Man'' involves a virtual shootout between rival gunmen with hundreds of people killed inside the cathedral. Church officials have described Sony's alleged use of the building as ''sick'' and sacrilegious. Sony's video game unit said Wednesday it had begun talks with the Church of England over its complaint, but the …

Manufacturers and retailers say U.S. flag production and sales are rebounding this Flag Day as citizens replace worn flags, get ready for the Fourth of July and show support for troops in Iraq and Afghanistan. Cheryl Lawrence, owner of Flags 'N More in Ft. Gratiot, Mich., says she has seen a shift in customers' ages, as younger adults buy flags to support friends and loved ones serving in the war. In years past, about 70% of her customers were 35 and older, she said, but "now it's about 50-50." Flag sales hit record levels after the …