This was a busy week for Detroit automakers as the Obama administration announced that it was rejecting GM and Chrysler’s initial plans for restructuring. The U.S. government stipulated that it will only provide funding for GM’s operations for the next 60 days while it develops a revised restructuring plan. Chrysler has just 30 days to complete its proposed technology partnership with Fiat or the government could cut off its funding as well. Also as part of the negotiations, GM’s CEO Rick Wagoner was forced to resign at the behest of the Automotive Task Force panel established by the Obama administration as part of the government’s bailout package for the ailing automakers.
The Obama administration also this week announced its own plans for the automaker turnaround, which included a retroactive warranty program to ensure that consumers of new GM and Chrysler vehicles will have a warranty even if the automakers shut their doors. Of greater concern to the automotive aftermarket is the re-introduction of the “Cash for Clunkers” provision in the program. Several industry associations issued statements in opposition to “Cash for Clunkers.” You can read their statements here.
As the automakers go back to the drawing board on their viability plans, Delphi Corp. is forging ahead with its own transformation plan. As part of its ongoing reorganization plan, Delphi is selling its remaining brake and suspension business to a Chinese company called BeijingWest Industries Co. BeijingWest is acquiring all remaining equipment, property and intellectual property. Assignment and assumption of certain customer and supplier contracts will also transfer to BeijingWest. The deal, expected to close in the fourth quarter, must still be approved by the bankruptcy court.
In other top news this week, NAPA Auto Parts announced it is launching a new rebate program supported by a nationwide campaign for its Adaptive One brake pads and “The Perfect Brake Job.” During the month of May, consumers can get "The Perfect Brake Job" — which NAPA describes as the combination of the correct premium parts and the correct repair procedures — for less with a mail-in rebate. Consumers can get $70 to $90 back from the rebate program.
The last item in our round-up of the week’s top news comes from Beck/Arnley, which announced that it has been named a supplier to the new not-for-profit parts look-up called Free-Cat. Free-Cat.com was created by several North American auto parts manufacturers that banded together to create a website to look-up all parts for all vehicles from leading suppliers. According to the group, the information found on Free-Cat.com is more current and more accurate than the information typically found in other eCats used in the aftermarket since the information comes directly from the supplying companies. Other companies participating in Free-Cat include Affinia, Beck/Arnley, Bosch, Cardone, Dayco, Federal-Mogul, Gates, ROL Manufacturing, Standard Motor Products and Tenneco.
ABOUT THE AUTHOR
Amy Antenora has served as Editor of aftermarketNews since 2002. She is also Managing Editor of sister publication Counterman magazine.
