ArvinMeritor said it plans to initiate a new commodity surcharge starting June 1. In ArvinMeritor's second-quarter earnings report issued on April 29, the company stated that the unprecedented volatility in the commodity markets -- including a global shortage of scrap steel, a rapid escalation in the price of critical raw materials such as iron ore, coking coal and metal alloys, and higher fuel and energy costs -- would require it to take recovery actions to mitigate a significant impact to the company's financial results.
CSK Auto Corp. said Wednesday that it received a Wells Notice from the staff of the Securities and Exchange Commission (SEC) in connection with an investigation prompted by issues raised by the company's audit and accounting personnel in 2005 and 2006. A Wells notice indicates the SEC staff is considering recommending to the agency to bring an enforcement action, alleging that CSK violated some provisions of the federal securities laws.
Cooper-Standard Holdings Inc., the parent company of Cooper-Standard Automotive Inc., said its results for the first quarter of 2008 show a continuing strong performance as the company further executes its strategy to expand its footprint and diversify its customer base. Net sales for the quarter which ended March 31 increased by $180 million to $756 million compared to $576 million during the same quarter in 2007. The increase reflects sales from the Metzeler Automotive Profile Systems (MAPS) sealing businesses and the El Jarudo Mexico fuel rail operations acquired in 2007, as well as favorable foreign exchange.
Advance Auto Parts has announced that Donna Broome will join the company as senior vice president, commercial sales, effective May 19. Broome will be responsible for leading Advance’s commercial sales force, and will report to Jim Wade, executive vice president, customer development officer, commercial.
Kumho Tires held a groundbreaking ceremony on Monday for its sixth overseas manufacturing plant, located in Bibb County, near Macon, Ga. Kumho Tires plans to invest a total of $165 million in this 5.7 million square foot plant, slated for completion by the end of 2009. The plant will have an initial capacity of 2.1 million tires for original and replacement equipment markets in the U.S., and is expected to provide more than 200 jobs when it opens.
The Arizona Department of Environmental Quality (ADEQ) has confirmed it will not include any super or extended warranty provisions as it adopts its clean air rules. The California/Nevada/Arizona Automotive Wholesalers' Association (CAWA), which lobbied against the super warranty regulation, said it considered this a major victory for the aftermarket industry in Arizona and nationwide.