Power Steering Flaw Prompts GM Recall
General Motors Corp. is recalling more than 800,000 cars because of a power steering defect that may have led to eight injuries. About 750,000 cars in the U.S. and about 55,000 in Canada — all made between Jan. 1, 1996, and Oct. 31, 1997, — are affected, GM said. The models are the 1996 Buick Regal, 1997 Oldsmobile Cutlass Supreme, 1997-98 Oldsmobile Cutlass, Chevrolet Lumina, Monte Carlo, Malibu, and 1998 Oldsmobile Intrigue cars. Also, some 1996 Pontiac Grand Prix and Oldsmobile Cutlass Supreme, and 1997-98 Buick Regal cars are being recalled. Eight reported nonfatal injuries may be related to the defect.
Universal Automotive Acquires Three Brands from TRW Automotive’s Kelsey-Hayes Subsidiary
Universal Automotive has purchased several business assets of TRW Automotive’s Kelsey-Hayes subsidiary. The Livonia, Mich.-based businesses sold for $11 million in cash plus additional contingent payments. Universal has acquired the Autospecialty, ValuMaxx and Power Stop brands from Kelsey-Hayes. It also has entered into a licensing agreement for the use of the TRW trademark for premium quality brake rotors and drums and a supply agreement for TRW suspension products.
Four CART Board Members Resign
James Hardymon, James Henderson, Rafael Sanchez and Frederick Tucker have resigned from the Championship Auto Racing Teams (CART) board of directors, leaving President and CEO Christopher Pook as the sole member of the board. Their resignations come after the recent news that CART’s assets of would be bought out by Open Wheel Racing Series LLC, following a failed merger attempt between the two racing organizations.
Starcraft Shareholders Approve Merger With Wheel to Wheel, Tecstar
Shareholders of aftermarket and OEM supplier Starcraft Corp. have voted to approve a proposed merger agreement with Troy, Mich.-based Wheel to Wheel, Inc., an automotive engineering and design business. The transaction has received all required regulatory clearance and the merger is expected to close by the middle of January. In 1988, Starcraft and Wheel to Wheel jointly formed Tecstar, which provides and installs appearance enhancement items on vehicles provided by and returned to an original equipment manufacturer. The new agreement calls for Starcraft to acquire the remaining 50 percent ownership of Tecstar LLC and Tecstar Canada that it does not currently own by acquiring closely held Wheel to Wheel. The transaction merges Wheel to Wheel into a newly created subsidiary of Starcraft, which will exchange Starcraft common shares for shares of Wheel to Wheel.
Federal-Mogul Appoints Jay Burkhart, Vice President, Global Marketing and Brand Strategy
Federal-Mogul has appointed Jay Burkhart to vice president, global marketing and brand strategy. In this new role, he will be responsible for marketing and brand strategy in aftermarket sales locations throughout the world. Prior to this promotion, Burkhart, who joined the company in 1998, was responsible for marketing in the North American aftermarket. He has been instrumental in helping the Federal-Mogul North American aftermarket organization achieve record performance in sales and numerous awards for marketing excellence, including most recently, the prestigious PACE Award for product innovation.
George Dettloff Appointed President of SKF’s North American Automotive Division
Chicago Rawhide Americas President George Dettloff has been appointed president of SKF’s North American Automotive Division, which manufactures seals and bearings for the automotive industry. In his new position, Detloff will oversee all of the division’s North American original equipment and aftermarket operations, including financial, sales, marketing, engineering and manufacturing. He assumes these new responsibilities in addition to his current position as president.
Forbes Automotive Reporters Forecast Industry Trends for 2004
Automotive industry reporters from Forbes magazine will discuss the industry outlook and trends for 2004 with automotive public relations professionals on Wednesday, Jan. 28 at Dana Corp. headquarters in Farmington Hills, Mich. Presented by the Automotive Public Relations Council (APRC), the panel discussion will be moderated by Gary Corrigan, vice president of Dana corporate communications and chairman of APRC, and will feature Jonathan Fahey and Joann Muller of Forbes. Forbes is one of the country’s leading business magazines, reaching 4.4 million readers.
Cooperation Urged in Auto Costs Fight
As a former Ford Motor Co. executive, Kathleen Ligocki knows about the carmakers’ mission to slash supplier prices. But in order to survive long-term, automakers must work with suppliers to take out the waste, said Ligocki, now chief executive of Tower Automotive. Speaking on an Automotive News World Congress panel Monday in Dearborn, Mich., Ligocki, a former vice president for Ford customer services, called for a collaborative effort between suppliers and carmakers to improve both sides’ bottom lines.
Automotive Products is Sold
German brake and clutch manufacturer FTE Automotive GmbH said Monday it bought Auburn Hills, Mich., auto clutch systems maker Automotive Products Inc. for an undisclosed price. The deal makes Ebern, Germany-based FTE a major player in clutch products with worldwide sales of $462 million.
SEMA Show 2004 Space Selection Begins in February
Online space selection for the SEMA Show 2004 will begin the week of Feb. 9. The trade show is scheduled to take place Nov. 2 through Nov. 5 at the Las Vegas Convention Center. The online selection for exhibit location will be made according to a company’s seniority as SEMA Show exhibitor, and their membership in SEMA and/or the Tire Industry Association (TIA).
Intermet to Close Havana, Ill., Foundry
Intermet Corp. intends to close its foundry in Havana, Ill., during the second quarter of this year. The company said the closure is necessary to rationalize excess production capacity and reduce costs. The facility, which manufactures ductile-iron castings for the automotive industry, currently employs 205 people, including hourly and salaried staff. The company will consolidate the plant’s equipment and products into other existing Intermet foundries.
TIA Consolidates, Maryland Office Becomes New HQ
The Tire Industry Association (TIA) will consolidate all of its offices in Bowie, Md., as of Feb. 1. TIA’s operations in Kentucky will be relocated and the building will be put up for sale. TIA said this decision comes after months of in-depth analysis into the cost-effectiveness of operating two offices in different states. Two members of the Louisville staff, Senior Vice President of Education and Technical Services Kevin Rohlwing and Director of Training Chris Marnett, will be moving to the Maryland office.