Dana Declares Bankruptcy: Fortune 500 Firm Vows to Keep Operating
Unable to get more credit and fend off mounting debts, Toledo’s Dana Corp. on Friday filed for bankruptcy protection, vowing to continue operating. The venerable Toledo, OH, firm has dealt with a series of financial problems in the last six months that ultimately led to the filing for protection from its creditors. Although the filing was not unexpected, it nevertheless was psychologically gut-wrenching to one of the nation’s largest independent automotive parts makers.
Dana in Demand: As Big Investors Increase Their Stakes, Could it Signal Attempt to Exert Control?
Struggling with financial and regulatory troubles, Dana Corp. has watched a handful of investment firms acquire tens of millions of its shares. Eight months ago, investment firms with large ownership positions owned 28 percent of the shares of the Toledo auto supplier. But Dana’s stock attracted more institutional purchases as its price shrank with the auto industry in decline, the company’s moves toward massive restructuring, and word of significantly restated profits.
Modine Announces $300 Million of Expected Net New Business Through 2010
Modine Manufacturing Co. yesterday updated and brought forward its net new business figure and announced that the company will receive $300 million of expected net new original equipment (OE) business over the next five years. The company also reiterated its fiscal 2006 diluted earnings per share guidance during a presentation at the Gabelli & Company 29th Annual Automotive Aftermarket Symposium in Las Vegas yesterday.
Monro Muffler Brake, Inc. Acquires Stake in Strauss Discount Auto
Monro Muffler Brake announced today it has acquired a 13 percent stake in R & S Parts and Service, Inc., a privately owned automotive aftermarket parts and service chain, for approximately $2 million, from GDJ Retail LLC. As a part of the transaction, Monro will provide R & S with $5 million of secured debt that carries a five year term and an 8 percent interest rate. Additionally, Monro will receive $60,000 per month in consulting fees for providing strategic advice and cost savings related to R & S’s operations and growth strategy. The transaction will be funded through Monro’s existing credit facility and is expected to be relatively neutral to the bottom line this fiscal year.
Divestment May Be Tough for Dana Corp.
With operations from Visteon Corp. and other troubled automotive suppliers already up for sale, Toledo’s Dana Corp. may have a tough time divesting $1.3 billion worth of businesses that it put up for sale.
AASA Executive Breakfast Nearly Sold Out
Top aftermarket leaders will discuss the state of the aftermarket at the first-ever Automotive Aftermarket Suppliers Association (AASA) Executive Breakfast, which will be held Tuesday, Nov. 1, just prior to the start of the Automotive Aftermarket Products Expo (AAPEX). The event, organized by AASA, the aftermarket segment association of the Motor & Equipment Manufacturers Association (MEMA), is nearly sold out.
Inaugural AASA Executive Breakfast at AAPEX To Examine State of the Aftermarket
“Examining the State of the Aftermarket” will be the theme for the first-ever AASA Executive Breakfast, to be held Tuesday, Nov. 1, just prior to the start of the Automotive Aftermarket Products Expo (AAPEX). The event is being organized by the Automotive Aftermarket Suppliers Association (AASA), the aftermarket segment association of the Motor & Equipment Manufacturers Association (MEMA).
Investor Slams GenCorp
Hedge fund Steel Partners II LP on Thursday, Nov. 11, launched a $708 million hostile bid for GenCorp Inc., attacking the aerospace conglomerate for its subpar financial performance and questioning the company’s deal making record. “Management and the board appear to have engaged in what can be best described as a game of gin rummy by buying and selling businesses with no clear corporate strategy and with very poor results, including the recent sale of the GDX Automotive business at a loss of over $300 million,” said Warren Lichtenstein, managing partner at Steel, in a letter to GenCorp’s board.
BorgWarner Says Higher Sales Expected
BorgWarner said it expects products that make engines more fuel efficient will raise sales by $1.4 billion in the next three years. Turbochargers, engine timing systems and parts that control emissions will account for 66 percent of the new business. Four- and all-wheel-drive systems will account for the rest.
Earl Scheib Adds Two Board Directors
The board of directors for Earl Scheib Inc. has appointed James Burra and Salvatore Zizza as members. The board also accepted the resignation of Gregory Helm from the board. Helm resigned to pursue other interests. Earl Scheib is a nationwide operator of 115 auto paint and body shops throughout the U.S.