Audi SQ5 SUV is spacious and sporty

The SQ5, Audi's first utility vehicle available in a sport version, has the capacity of a midsize vehicle with the performance and handling of a sport sedan.

Our tester with its blue paint and 21-inch wheels had an understated appearance that shrouds the SQ5's power and performance. A 3.0-liter, supercharged V6 produces 354 horsepower that was accentuated by a beefy exhaust note. An eight-speed Tiptronic transmission made acceleration silky smooth and provided the option to shift manually. Paddle shifters on the steering wheel were useful for a quick downshift for highway passing.

The Audi's throttle response was swift and I was pinned back in the seat while accelerating on straightaways. The SQ5's sport suspension reduced body roll through tight turns. Ride quality remained reasonable considering its size and weight.

Audi's quattro permanent all-wheel drive that sends power to wheels with the most grip gives the SQ5 an edge on both dry roads and in adverse driving conditions. Our tester's low-profile tires would have to be replaced for the snow. The SQ5 yields an average of 19 miles per gallon in fuel economy and burns premium fuel.

The SQ5's black interior was highlighted with a bulging flat-bottomed steering wheel and supple Nappa leather seats. Heated front bucket seats were comfortable and reduced fatigue on long drives. Extended seat belt buckles that stayed on top of the rear seats made strapping in our children with boosters a breeze. A panoramic sunroof made the interior feel much larger. Audi takes navigation to another level with its system enhanced with Google Earth satellite imagery that provides a realistic picture of the route. Other interior highlights were an excellent Bang & Olufsen sound system with 14 speakers, a rearview camera, thermal cupholders and a three-zone climate control system.

Many of the interior features were part of a $7,500 prestige package that was included in our $64,770 tester. The SQ5 has a base price of $51,900. My only gripe with the SQ5 was the location of the cruise control stalk. It's difficult to see behind the steering wheel, which made it hard to use.

A non-sport version Q5 with a turbocharged four cylinder starts at $37,700. Audi also offers the Q5 with hybrid and turbo diesel engine options. Other SUVs to consider are the BMW X3, the Land Rover Evoque, or the Volvo EC60.

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Cold weather stalls U.S. auto sales in December

U.S. auto sales fell short of expectations last month, thanks to strong November sales and cold December weather, but the industry is in a good position for 2014, experts said.

General Motors sales fell 6.3 percent last month, Toyota sales fell 1.7 percent, and Ford and Chrysler both missed analysts' expectations.

Still, the industry had its best year since 2007, and the Ford F-series truck was the top-selling vehicle for the 32nd year.

Chris Hopson, an auto analyst for IHS, said he sees a recent trend of strong sales continuing.

"If you look at this five-month period as a whole, it reflects a nice running rate for sales," Hopson said. "The strength that we've seen in the second half of 2013 will continue in 2014."

Hopson said auto sales will follow the trajectory of the economy as a whole.

"We're hoping that sales are going to be supported by a recovery economy," Hopson said.

Both analysts and automakers blamed poor weather for slow sales at the year's end.

"When you start taking a look at the end in terms of when we closed in the month of December, there was some bad winter weather," said Erich Merkle, U.S. sales analyst for Ford.

Michelle Krebs, an analyst with Edmunds.com, said, "The sales pace at the beginning of the month was slower than expected as a lot of places were hit by bad weather."

Hopson said the end of November was strong, and that may have played a factor in the slow month.

"It looks like the pace of sales might have been attributable to sales in November," Hopson said.

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Skimpy health law plans leave some 'underinsured'

WASHINGTON — For working people making modest wages and struggling with high medical bills from chronic disease, President Barack Obama's health care plan sounds like long-awaited relief. But the promise could go unfulfilled.

It's true that patients with cancer and difficult conditions such as multiple sclerosis or Crohn's disease will be able to get insurance and financial help with monthly premiums.

But their annual out-of-pocket costs could still be so high they'll have trouble staying out of debt.

You couldn't call them uninsured any longer. You might say they're "underinsured."

These gaps "need to be addressed in order to fulfill the intention of the Affordable Care Act," said Brian Rosen, a senior vice president of the Leukemia & Lymphoma Society. "There are certainly challenges for cancer patients."

"Cost may still be an issue for those in need of the most care," said Steven Weiss, spokesman for the American Cancer Society Cancer Action Network. That "makes it critically important for patients looking at premiums to also consider out-of-pocket costs when choosing a plan."

Out-of-pocket costs include a health plan's annual deductible, which is the amount before insurance starts paying, as well as any copayments and cost-sharing.

A few numbers tell the story. Take someone under 65 with no access to health insurance on the job and making $24,000 a year — about what many service jobs pay.

Under the health care law, that person's premiums would be capped below 7 percent of his income, about $130 a month. A stretch on a tight budget, yet doable.

But if he gets really sick or has an accident, his out-of-pocket expenses could go as high as $5,200 a year in a worst-case scenario. That's even with additional financial subsidies that the law provides people with modest incomes and high out-of-pocket costs.

The $5,200 would be more than 20 percent of the person's income, well above a common threshold for being underinsured.

"Chronically ill people are likely to be underinsured and face extremely high out-of-pocket costs," said Caroline Pearson, who tracks the health care overhaul for Avalere Health, a market research and consulting firm. "While the subsidies help, there still may be access problems for some populations."

Under the law, insurance companies competing in new online markets like HealthCare.gov can offer four levels of coverage.

All plans cover the same benefits; the difference is in financial protection. A bronze plan covers 60 percent of expected costs, silver covers 70 percent, gold covers 80 percent, and platinum covers 90 percent.

Bronze plans have the lowest premiums but provide less insurance. Gold plans are the closest to employer-provided coverage. Indeed, members of Congress and staffers who will now get their coverage through the health care law have been steered to gold plans.

Silver, however, is the standard for most consumers. The law's tax credits to help with premiums are keyed to a benchmark silver plan in each geographical area. And the law's subsidies to help with out-of-pocket costs are only available to people who get a silver plan.

Avalere found that the average annual deductible for silver plans is $2,567, more than twice what workers in employer plans currently face. Additionally, many silver plans have high cost-sharing requirements for prescriptions, particularly "specialty drugs" to treat intractable conditions such as severe forms of arthritis.

Some plans may offer limited relief by covering certain services before a patient has met their annual deductible. Those services can include primary care, some prescription drugs and routine care for common chronic conditions such as high blood pressure and diabetes.

But Pearson says that won't help people with high-cost illnesses. "Chronically ill people may still experience significant financial challenges," she said.

Platinum or gold coverage may be the better option for people with serious health problems. They'll pay more in premiums, but reduce exposure to out-of-pocket costs.

Obama administration spokeswoman Joanne Peters said the new system is still "night and day" from what patients faced for years, because insurers can no longer turn away those with pre-existing medical conditions, and because the new plans cap out-of-pocket costs. While that limits medical debt, it doesn't eliminate it.

One of the leading advocates of the health care law says most people will still come out ahead.

"If the question is, will some people find that coverage and care remain unaffordable, the answer is yes," said Ron Pollack, executive director of Families USA. "There will be some people who feel that way. The overwhelming majority will be far better off, even if what they have is not perfect."

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Boeing machinists OK contract tied to 777X

SEATTLE — The stakes were high and the vote was close as Boeing production workers agreed to concede some benefits in order to secure assembly of the new 777X airplane for the Puget Sound region.

Washington Gov. Jay Inslee and Boeing hailed Friday's vote, which proponents said solidifies the aerospace giant's presence in the Seattle area.

"Tonight, Washington state secured its future as the aerospace capital of the world," Inslee declared.

Under the terms of the eight-year contract extension, Boeing said the 777X and its composite wing will be built in the Puget Sound area by Boeing employees represented by the Machinists union.

"Thanks to this vote by our employees, the future of Boeing in the Puget Sound region has never looked brighter," Boeing Commercial Airplanes President and CEO Ray Conner said. "We're proud to say that together, we'll build the world's next great airplane — the 777X and its new wing — right here. This will put our workforce on the cutting edge of composite technology, while sustaining thousands of local jobs for years to come."

Local officials of the International Association of Machinists and Aerospace Workers had urged their 30,000 members to oppose the deal, arguing that the proposal surrendered too much at a time of company profitability. They had opposed taking a vote at all but were overruled by national leaders in the Machinists union.

The announcement that the contract had passed with a 51 percent yes vote was somber.

"Our members have spoken and having said that, this is the course we'll take," Jim Bearden, administrative assistant for Machinists District 751, said in announcing the results. "No member liked this vote or the position we were put in by the company, nor was it an easy vote for anyone to cast."

Opponents of the contract opposed the idea of freezing the Machinists' pensions and moving workers to a defined-contribution savings plan.

The issue fractured the union and drew unusual pleas from politicians who said the deal was necessary to support the area's economic future. Boeing has been exploring the prospect of building the 777X elsewhere, a move that could trigger a steady exodus of aerospace jobs from the place where Boeing was founded.

"We missed it by 1 percent because people were confused and worried about their jobs," said Rick Herrmann, who has been working at Boeing for 46 years.

Hazel Powers and Dena Bartman lingered at the Seattle union hall after the results were announced, their eyes swollen from crying. Powers described a solemn mood after the announcement.

"Shocked. Disbelief," she said.

"I'm still just numb," Bartman said.

Powers has worked for Boeing for almost 35 years, while Bartman has been there for 25 years. Her 25-year-old daughter has worked at the aerospace giant for seven years.

"I think people that voted for it were scared," Powers said. "The pressure from the politicians and the community - people are scared about not having good-paying Boeing jobs."

Bob Dennis, an inspector at Boeing for six years, said earlier in the day he was voting for the contract because it represented the best chance to keep the 777X jobs in Washington state.

"I don't think Boeing had to come back to the table. We forced them that way. But at the same time, I think this is our last opportunity to keep those jobs in the state," he said.

"The tough vote taken by the Machinists today means the 777X will be built in the only place it should be, by the only people prepared to deliver," said U.S. Sen. Patty Murray, D-Wash.

"I know well this decision wasn't easy for any of the Machinists or their families, and I know that many of those men and women decided Boeing's latest offer was still unacceptable," Murray added. "Their concerns about income and retirement security for current and future generations of aerospace workers - and all American workers - are legitimate."

Bearden, speaking in place of District 751 President Tom Wroblewski, who has been ill, said Boeing production workers "faced tremendous pressure from every source imaginable." He took a dig at "the politicians and the media, and others, who truly didn't have a right to get into our businesses, were aligned against us and did their best to influence our folks' votes."

Machinists International President Tom Buffenbarger, who forced the issue to a vote over the objections of local union leaders, said in a statement that "the impact of this agreement extends far beyond IAM members who voted today.

"For decades to come, the entire region will benefit from the economic activity and technological innovations that will accompany" the jet production.

Washington state has always been the most natural place for Boeing Co. to build the 777X, since most of the company's production is still done in the Puget Sound area. Chicago-based Boeing offered to keep the 777X in the region but sought two big deals: An extension of tax breaks all the way to 2040 and a new contract with the Machinists union that would transition workers away from traditional pensions.

In November, state lawmakers swiftly approved the tax benefits — valued at some $9 billion — but the Machinists rejected a proposed contract shortly afterward. After the initial contract rejection, Boeing immediately began soliciting bids from other states. The company said it received submissions for 54 locations in 22 states.

The competition has underscored Boeing's commanding bargaining position in an economy where top-notch manufacturing jobs remain scarce and elected officials feel obligated to aggressively pursue such opportunities.

Boeing improved its offer after the last vote by machinists. An initial plan to slow the rate that workers move up the pay scale was tossed while the company also offered $5,000 in additional bonus money and improved dental coverage.

In addition to the pension issue, opponents decried increased health care expenses and slower wage growth. However, some machinists will likely see their base salaries rise above $100,000 under the new agreement.

Boeing began offering the 777X in May, and company officials have said they needed to move swiftly to decide where the plane will be built.

The company recently received orders for 225 new 777X planes from three airlines at the Dubai Airshow.

Boeing has said the 777X is expected to carry as many as 400 passengers and be more fuel efficient than the current 777.

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Associated Press writer Mike Baker in Seattle and photographer Elaine Thompson in Everett contributed to this report.

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Obama calls for restoring unemployment benefits

HONOLULU — President Barack Obama is urging Congress to reinstate jobless benefits for more than a million Americans.

In his weekly radio and Internet address, Obama says the unemployment insurance is a "vital economic lifeline" for many people. And he says failure to reinstate the benefits will cause the economy to slow for all Americans.

A bipartisan proposal in the Senate would restore the benefits for three months. Obama says if lawmakers pass the measure, he will sign it.

Obama is due to return from vacation in Hawaii on Sunday.

Mississippi Congressman Gregg Harper delivered the Republican weekly address. He calls on the Senate to pass the Gabriella Miller Kids First Research Act. It seeks to boost funding for pediatric research at the National Institutes of Health.

The measure passed the House in December.

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Online:

Obama address: http://www.whitehouse.gov

GOP address: http://www.youtube.com/HouseConference

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Hub buildings change hands

A flurry of transactions closed a heady year for the Boston real estate market, including the sales of a rare portfolio of Boylston and Newbury street properties, One Winthrop Square and The Block on Congress.

Bethesda, Md.-based ASB Real Estate Investments paid $91.2 million for the four retail-office buildings at 801 Boylston St. and 333-335, 342 and 352 Newbury St. that total 51,249 square feet and are fully leased.

"It's aggressive pricing," said Michael Jammen, a principal at UrbanMeritage, a Boston real estate investment firm. "It's not often that a portfolio of properties comes up together on Newbury Street. The buildings are quality."

The seller was an entity formed by Irish investor Paul O'Sullivan and his U.S. business partner, John Driscoll of North Reading.

In another transaction, San Francisco's Divco-
West Real Estate Services acquired One Winthrop Square — a 114,000-square-foot office building with BNP Paribas and Boston Financial Management as major tenants — for $36 million. The seller, Munich-based GLL HRE Core Properties, had purchased it in 2009 for $21 million.

Boston's Related Beal, meanwhile, bought "The Block on Congress" from Fidelity Investments for $59.2 million, according to Registry of Deeds documents. The five buildings at the top of Post Office Square consist of about 343,000 square feet of office and retail space and include 82 Devonshire St./35 Congress St., 54 and 68 Devonshire St., and 15 and 19 Congress St.

"Rarely do you have the opportunity to reposition and reinvent an entire city block, especially one in the heart of downtown Boston," Stephen Faber, executive vice president of Related Beal, said in a statement.

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Driven to distraction

The next technology-vs.-real-life clash is shaping up in the car — again — as anti-distracted-driving advocates call for a ban of Google's futuristic Glass behind the wheel, though some techies say the Internet-enhanced spectacles could end up making driving easier and safer.

"You necessarily need to take your eyes off the road," said Glass-user Andrew Perlman, a professor at Suffolk University Law School. He said he tried driving with them once, but found it too distracting. "It's not something I would want to use while driving."

"It certainly sounds like it is a visual and a mental distraction," said Jeff Larson, president of the Safe Roads Alliance, adding that he would like Google Glass-like devices that put the Internet in front of the wearer's eyes addressed by the law.

The state's safe driving law is broad enough to include Glass, the Department of Transportation said, under the same provision that bans "distracting objects" such as televisions. Spokeswoman Sara Lavoie said it is up to police to interpret and cite drivers for distracted driving.

"The technology is new," said Trooper Todd Nolan, a spokesman for the state police, "A lot of us are unfamiliar with it."

He said it does not seem to be an issue now because sightings of the sci-fi frames are rare.

"If or when they do become more prevalent, we'll have to address it then," Nolan said.

Roger Kay, a technology analyst, said Glass is still in its infancy, and the best uses have not been developed yet.

"Most of its potential is really in the future," Kay said. "Rather than being distracting ... it could actually enhance the driving experience."

Kay envisions an app that uses Glass's camera to alert the driver when another car is slowing down, or getting too close.

Perlman said he didn't see the value in wearing Glass while driving, and said it had about the same distracting effect as a common GPS on a dashboard — currently one of the few legal screen uses for drivers.

"I don't think it's any more distracting," Perlman said.

Google Glass is not now widely available. But the devices may start to show up on more faces in the coming months, with Google aiming to expand from 10,000 "Glass Explorers" in 2014. Yesterday, Google sent out invitations to buy the $1,500 device to subscribers of its music subscription service, All Access. In a statement, Google said, "Explorers should always use Glass responsibly and put their safety and the safety of others first."

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New Shack out to Shake up Newbury St.

Shake Shack, the much-ballyhooed burger chain from New York, is heading for Boston's Newbury Street next year.

The, 5,600-square-foot, two-level location at 236 Newbury St. will be Shake Shack's third store in Massachusetts and its largest yet.

Shake Shack signed a lease for the space in November, according to Registry of Deeds documents, and will occupy the street and lower levels of the recently renovated building.

Spokesman Greg Waters would not discuss the company's plans.

"At this point, I have nothing to report," he said.

Shake Shack opened its first Bay State restaurant to long lines at The Street shopping center in Chestnut Hill in March and will hold the grand opening for its Harvard Square location at 92 Winthrop St. in Cambridge tomorrow.

"It's been exceeding our expectations," Waters said of the Chestnut Hill restaurant. "We've been extremely pleased with the response."

The Harvard Square Shake Shack opened for several hours on Dec. 24 to serve the chain's signature frozen custard, and formally opens tomorrow at 11 a.m.

Restaurateur Danny Meyer's Union Square Hospitality Group opened the first Shake Shack in New York's Madison Square Park in 2004. The Harvard Square location will be its 40th worldwide. "We love Boston and can't wait for our grand opening in Harvard Square," CEO Randy Garutti said in a statement. "Cambridge is absolutely amazing with its vibrant food culture, energized college scene, wealth of history and central location."

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Justice delays health law's birth control mandate

WASHINGTON — Only hours before the law was to take effect, a Supreme Court justice on Tuesday blocked implementation of part of President Barack Obama's health care law that would have forced some religion-affiliated organizations to provide health insurance for employees that includes birth control.

Justice Sonia Sotomayor's decision came after a flurry of efforts by Catholic-affiliated groups from around the nation. Those groups had rushed to the federal courts to stop Wednesday's start of portions of the Affordable Care Act, also known as Obamacare.

Sotomayor acted on a request from an organization of Catholic nuns in Denver, the Little Sisters of the Poor Home for the Aged. Its request for an emergency stay had been denied earlier in the day by a federal appeals court.

The government is "temporarily enjoined from enforcing against applicants the contraceptive coverage requirements imposed by the Patient Protection and Affordable Care Act," Sotomayor said in the order.

Sotomayor, who was in New York Tuesday night to lead the final 60-second countdown and push the ceremonial button to signal the descent of the Times Square New Year's Eve ball, gave government officials until 10 a.m. EST Friday to respond to her order.

The law requires employers to provide insurance that covers a range of preventive care, free of charge, including contraception. The Catholic Church prohibits the use of contraceptives.

The Obama administration crafted a compromise, or accommodation, that attempted to create a buffer for religiously affiliated hospitals, universities and social service groups that oppose birth control. The law requires insurers or the health plan's outside administrator to pay for birth control coverage and creates a way to reimburse them.

But for that to work, the nuns would have to sign a form authorizing their insurance company to provide contraceptive coverage, which would still violate their beliefs, argued their attorney, Mark Rienzi.

"Without an emergency injunction, Mother Provincial Loraine Marie Maguire has to decide between two courses of action: (a) sign and submit a self-certification form, thereby violating her religious beliefs; or (b) refuse to sign the form and pay ruinous fines," Rienzi said.

The White House did not comment on the order Tuesday night. In a statement Tuesday night, Rienzi said he was delighted by Sotomayor's order. "The government has lots of ways to deliver contraceptives to people," he said. "It doesn't need to force nuns to participate."

Sotomayor's decision to delay the contraceptive portion of the law was joined by the U.S. Court of Appeals for the District of Columbia Circuit, which also issued an emergency stay for Catholic-affiliated groups challenging the contraceptive provision, including the Archdiocese of Washington, D.C., and Catholic University. But one judge on the three-judge panel that made the decision, Judge David S. Tatel, said he would have denied their motion.

"Because I believe that appellants are unlikely to prevail on their claim that the challenged provision imposes a 'substantial burden' under the Religious Freedom Restoration Act, I would deny their application for an injunction pending appeal," Tatel said.

The archdiocese praised the appeals court's action in a statement.

"This action by the U.S. Court of Appeals for the D.C. Circuit is in line with the rulings of courts all across the country which have held that the HHS mandate imposes a substantial and impermissible burden on the free exercise of religion," the archdiocese said. "These decisions also vindicate the pledge of the U.S. Catholic bishops to stand united in resolute defense of the first and most sacred freedom - religious liberty."

The Supreme Court already has decided to rule on whether businesses may use religious objections to escape a requirement to cover birth control for employees. That case, which involves Hobby Lobby Inc., an Oklahoma City-based arts and crafts chain with 13,000 full-time employees, is expected to be argued in March and decided by summer.

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Follow Jesse J. Holland on Twitter at http://www.twitter.com/jessejholland.

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Lavish parties, uninhibited tourists rule in Vegas

LAS VEGAS — Las Vegas held one its biggest ever New Year's Eve celebrations, with sold-out concerts and an eight-minute long fireworks show that was billed as the largest in the country.

Big-ticket musical acts Bruno Mars, John Legend and Maroon 5 helped lure 335,000 visitors to Las Vegas by nightfall on Tuesday — 5,000 more than last year, tourism officials said.

Thousands celebrated late Tuesday and early Wednesday along the Las Vegas Strip and across town at the Fremont Street Experience, where Mayor Carolyn Goodman and her husband, former mayor Oscar Goodman, were on hand.

Party-goers cheered in anticipation at 10 minutes before midnight, and then again with five minutes to go, then watched as the fireworks were launched from the rooftops of seven hotel-casinos.

The holiday was seemingly custom-made to align with Sin City's boozy, bad-judgment ethos.

The Minus5 Ice Bar Mandalay Bay started handing out free champagne for hourly toasts at 11 a.m. Tourists were seen toting novelty drinks into casinos by noon.

For Lester Arnold, 50, the desert weather made Las Vegas the obvious place to ring in the New Year. Temperatures dropped from 60 to 40 degrees as the sun set.

"There are people outside here. It's minus twenty in Springfield and there's no party there," the Massachusetts native said, sipping from a red Solo cup full to the brim with champagne as nearly naked showgirls strutted past.

A Gene Simmons impersonator sat in a motorized scooter nearby, wagging his tongue at tourists in novelty hats.

Police shut down traffic on the Las Vegas Strip at 6 p.m. so revelers could spill into the 4-mile stretch of road normally packed with cars.

Randy and Patty Harkin, of Salt Lake City, were dressed in their finest. The couple had just eloped at the Stained Glass Chapel, on the anniversary of their first kiss.

"I called my mom and was like, 'We're married now, and happy New Year," Randy Harkin said.

Law enforcement officers were keeping a close eye on the festivities.

Hotels were dealing a full house, with occupancy approaching 100 percent and $200 rooms going for $600. New Year's Eve is typically the most profitable night of the year for casinos, and their executives worked to persuade visitors to make it a long weekend.

Many casinos offered up special "New Year's Eve Eve" events on Monday and advertised the two days before that as the biggest weekend of the year. DJs were counting down to 2014 as early as Sunday at the Mirage hotel-casino's 1OAK club.

Las Vegas was light this year on hosted nightclub bashes in which guests pay for proximity to a famous person. Original celebutante Paris Hilton was hosting one of the only such parties.

New Year's Eve crowds in the city have doubled since 1990 but still lag other parties in New York City's Times Square and Copacabana beach in Rio de Janeiro.

In seedier downtown Las Vegas at the Fremont Street Experience pedestrian mall, organizers held a block party that featured Blues Traveler and Papa Roach. Some revelers were disappointed to learn that they had to pay $40 to get in.

Grace Champion, 25, had come with her husband from Wasilla, Alaska. The couple bought their own yard-long plastic drink cups for 99 cents and was saving money by getting them refilled inside casinos.

Her hope for the New Year was that it would bring her a job. Her goal for the night: catch a glimpse of Papa Roach.

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Hannah Dreier can be reached at http://twitter.com/hannahdreier.

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