GM, Kia Face Growing Investigation
General Motors Corp. and Kia Motors Corp. are facing an expanded U.S. auto safety investigation and possible recalls because of fuel leaks that may occur on more than 760,000 vehicles. Gasoline may leak into the engine on 483,000 Cadillacs and Oldsmobile Auroras models for 1995 through 1997, the National Highway Traffic Safety Administration said. A total of 278,266 Kia Spectra and Sephia sedans from the 2000 and 2001 model years are being checked for spills during refueling, which led to the recall of 100,000 Sephias made before 2000.
Dura Loss Shrinks
Dura Automotive Systems Inc., which makes automotive parking brakes and seating controls, said its fourth-quarter loss narrowed to $2.86 million, helped by currency exchange rates and acquisitions. Dura’s net loss narrowed to 15 cents a share from a loss of $90.7 million, or $4.97, a year earlier. Sales rose 8.8 percent to $627.2 million from $576.5 million, the Rochester Hills-based company said.
Dana Restructuring Helps Rebound
Auto parts maker Dana Corp. credited its restructuring plan and an increase in heavy-truck production for its fourth-quarter rebound. Toledo-based Dana had a fourth-quarter profit of $68 million, or 45 cents per share. Excluding onetime items, the company earned 41 cents per share, or 1 cent higher than the expectations of analysts surveyed by Thomson First Call.
Autoliv Raises Dividend by 33 Percent
Autoliv has increased its quarterly dividend to shareholders by 33 percent, from 15 to 20 cents per share. The dividend will be payable June 3 to stockholders of record on the close of business on May 6.
General Parts to Offer AutoComLink Suite of Software Products
Automotive replacement parts distributor General Parts Inc. has announced a merger with Automotive Communications Link Inc., a provider of business management software for automotive repair professionals. Automotive Communications Link does business under the name “AutoComLink.” Through the merger, General Parts will offer AutoComLink products, which includes an Internet-based auto parts ordering application (EZ2LINK), a repair estimator system (EZ2Estimate) and a business and inventory management system for automotive repair facilities (POWERLINK).
Clemson Nabs Top Leader For Auto Project
The new director of Clemson’s automotive research center drives a minivan, but Robert Geolas does not recall how many pistons it packs. Geolas, a North Carolina State grad, said his Honda CRV was built in 1991. Or was that 1992? His wife once told him he did not have enough automotive experience to change a tire. “I hope they didn’t hire me to be an automotive expert,” Geolas said. But Geolas said there are plenty at Clemson. He said the university has automotive engineering talent and the vision to build a graduate program designed to attract research and higher-paying jobs to South Carolina.
Tower Plant Move to Affect Nearly 500 Employees
Earlier this week, Tower Automotive announced that in 2005 it will move production of Dodge Ram frames from its facility in Milwaukee to a plant in Mexico. In response to this news, the Milwaukee Journal Sentinel ran a story detailing the impact this move with have on Wisconsin’s manufacturing base. According to the Sentinel report, nearly 500 Milwaukee factory workers will lose their jobs as a result of the move. Almost 80,000 factory jobs have already disappeared from Wisconsin since 1999, the article stated.
Car Care Council Offers “Be Car Care Aware” Starter Kits for National Car Care Month
“Be Car Care Aware” point-of-sale starter kits — containing marketing and promotional materials to help businesses promote vehicle maintenance and the on-going “Be Car Care Aware” consumer education campaign — are available just in time for National Car Care Month in April. The starter kit features National Car Care Month materials that can be used each April to celebrate and promote this national event. The kit includes “Be Car Care Aware” signage, consumer literature and the industry’s first comprehensive service interval schedule.
Two Off-Road Organizations Promise to Add Excitement to the 2004 SEMA Spring Expo
The Off-Road Business Association (ORBA) and the United Rockcrawling & Off-Road Challenge (UROC) will participate in the annual SEMA Spring Expo, which is slated to take place March 5-6 at the Indiana Convention Center in Indianapolis. According to Peter MacGillivray, vice president of marketing and communications for SEMA, ORBA and UROC will bring the excitement of the rapidly growing off-road sports scene to the annual SEMA Spring Expo.
SEC Investigates Goodyear
The federal Securities and Exchange Commission is investigating accounting problems at Goodyear Tire & Rubber Co., the world’s largest tire maker said. News of the investigation sent Goodyear shares down 96 cents, or nearly 10 percent, to close at $8.96 on the New York Stock Exchange. The stock had been rebounding recently as the company pushed a new line of tires that analysts said could help make Goodyear profitable again.
Dana Doubles Dividend
Citing continued confidence in the company’s performance and direction, Dana Corp.’s board of directors has doubled the dividend on the company’s stock, from 6 cents per share to 12 cents per share.
Del-Nat Tire Names VP of Marketing
Jim Mayfield has joined Del-Nat Tire Corp. as vice president of marketing. His responsibilities will include all marketing and product management functions. Mayfield joined the tire industry in 1981 with Michelin Tire Corp., where he held various sales positions in replacement and OE sales.