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DURA Automotive Systems Announces Global Reorganization

DURA Automotive Systems has announced a comprehensive restructuring of the company into four global business units.

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ROCHESTER HILLS, Mich. — DURA Automotive Systems has announced a comprehensive restructuring of the company into four global business units. In addition, DURA announced several other significant corporate events, including the planned filing timeline of its regulatory financial information.

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“Macro-economic conditions affecting the global automotive industry have dramatically altered the way automotive suppliers need to do business around the world,” said Tim Leuliette, DURA’s president and chief executive officer. “Today’s announcement of our move away from a regional structure into four global business units will further enhance our efficiency and ability to compete as one global company. We are confident these actions will strengthen our ability to serve our worldwide customers and grow our business. DURA is now a lean, globally balanced technology leader.”

Following its emergence from Chapter 11 in June, DURA expects to complete the last of its previously announced plans to close or exit 16 manufacturing facilities worldwide. The company said these closures, combined with the elimination of $1.2 billion, or 85 percent, of the company’s debt and a 90 percent reduction in cash interest expense, as part of the reorganization plan approved earlier this year, have laid the groundwork for a new, lean and globally competitive DURA.

Effective Jan. 1, 2009, DURA will be organized into four global product line divisions replacing the current seven regional business units. DURA’s four new global divisions and executive leadership are:

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• Cable Systems, headquartered in Rochester Hills, Mich., is one of the world’s largest producers of light and heavy-duty automotive control cables. The Cable Systems Division has operations in Germany, Romania, the Czech Republic, Portugal, United States, Mexico and China. Leading the division will be Al Malizia, as vice president and general manager. Malizia joins the company after retiring from Metaldyne Corporation, where he served as vice president and general manager of North American Chassis Operations.

• Shifter Systems, headquartered in Dusseldorf, Germany, is the largest supplier of automatic, manual and shift-by-wire transmission shift systems in the world, with operations in Germany, Romania, the Czech Republic, France, Portugal, Russia, United States, India and China. Martin Becker has been named vice president and general manager of DURA’s Shifter Systems Division. Becker was previously vice president and general manager of DURA’s Control Systems Europe.

• Glass & Trim Systems, headquartered in Rochester Hills, Mich., is a leading provider of automotive exterior metal and plastic trim, and stationary and moving glass window systems, with operations in Germany, the Czech Republic, United States, Mexico and China. Tim Horn becomes vice president and general manager of DURA’s Glass & Trim Systems Division. He was previously DURA’s vice president and general manager, Body & Glass North America.

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• Structural & Safety Systems, headquartered in Plettenberg, Germany, is an integral OEM partner of body-in-white and structural components, as well as mechanical safety assemblies, with operations in Germany, United Kingdom, the Czech Republic, Slovakia, Spain, Mexico, United States and China. Franz Joseph Feldhaus is named vice president and general manager of DURA’s Structural & Safety Systems Division. He previously was DURA’s vice president and general manager, Body & Glass Systems Europe.

DURA’s four operating divisions supply Aston Martin, Audi, Bentley, BMW, Brilliance, Chery, Chrysler, Daimler, Fiat, Ford, General Motors, Honda, Jaguar, Land Rover, Mahindra, NedCar, NUMMI, Porsche, PSA Peugeot Citroen, Renault-Nissan, SAIC, Ssangyong, Tata, Toyota and Volkswagen with nearly $2 billion of products annually.

In 2008, the company anticipates generating approximately 59 percent of its revenues from Europe, 33 percent from North America and 8 percent from the rest of the world.

Additionally, as part of its global reorganization, DURA also announced the following leadership appointments:

• Francois Stouvenot is now group vice president of global sales. He was previously vice president of European sales.

• Dave Klein becomes vice president of North American sales. Klein formerly served as vice president and general manager of Shifter and Cable operations in North America.

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• Tim Mann is named vice president of global procurement. He was previously vice president of North American purchasing.

• Eric Rundall becomes group director of corporate development. Rundall had been director of European finance.

As a result of DURA’s Chapter 11 reorganization, which was completed on June 27, the company was unable to file its financial statements with the SEC in a timely manner. The company intends to “catch up” on those filings with the issuance of the 2007 10Qs and 10K by the end of October 2008. The 10K will include a “Fresh Start” pro-forma balance sheet showing the impact of the financial restructuring and the elimination of $1.3 billion of liabilities. Within 60 days after that, DURA expects to complete its 2007 statutory filing in relevant jurisdictions and to file its 2008 first quarter 10Q. The actual effect of “Fresh Start” accounting will be reflected in the company’s 2008 second quarter statements, which DURA expects will be completed approximately 60 days later. Given this process of “catch up”, the company currently believes it will be on a timely reporting schedule for its 2009 second quarter. 

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