TOYOTA SHIFTS GEARS, PLANS NEW SUV PLANT

» Toyota

, says it will scrap plans to build the Corolla compact car at a new factory under construction in Alabama. Instead, it will build a new unspecified SUV at the plant it’s building with Mazda in Huntsville.

The company announced Wednesday that the decision is being made in response to growing demand for SUVs and light trucks.

For the first half of this year, Corolla sales are down 5.3 percent, to just under 153,000.

Toyota will continue to build Corollas at its factory in Blue Springs, Miss.

Mazda recalls more than 262,000 vehicles to fix engine stall problem.

DETROIT» Mazda is recalling more than 262,000 SUVs and cars in the U.S. to fix a software problem that could cause the engines to stall unexpectedly.

The recall covers certain Mazda6 midsize sedans and CX-5 SUVs from the 2018 and 2019 model years. Also included are Mazda3 small cars from 2019.

Mazda traced the problem to a software error in the computer that controls valves as part of the vehicles’ fuel-saving cylinder deactivation technology.

U.S., Chinese trade envoys have first contact after Trump-Xi truce.

The top U.S. and Chinese trade envoys have spoken by phone in their first known contact since Presidents Donald Trump and Xi Jinping agreed to resume stalled talks on ending the U.S.-China tariff war.

Beijing’s envoy, Vice Premier Liu He, spoke Tuesday with U.S. trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, the Commerce Ministry announced. Its one-sentence statement gave no details or timeline for more contacts.

Last month’s agreement by Trump and Xi at a meeting in Osaka, Japan, helped to steady jittery financial markets.

EU reduces economic growth forecasts.

BR U S

SELS» The European Union announced it has trimmed its forecasts for economic growth next year as global trade tension weighs on the bloc’s export-focused manufacturers.

The EU executive commission reduced its forecast for next year for both the 19-country eurozone and the 27 countries that are due to remain in the bloc after Britain leaves, which is scheduled to happen at the end of October.

Eurozone growth is expected to pick up from 1.2 percent to 1.4 percent in 2020.