Visteon has 1st profit since ’02
Auto-parts maker Visteon Corp. said Thursday that it turned a quarterly profit for the first time since mid-2002 and surpassed earnings expectations, largely due to new business from the automakers and lower health-care costs for employees. The Dearborn, Mich.-based supplier reported first-quarter net income of $30 million, or 23 cents a share, compared with a loss of $15 million, or 12 cents a share, in the same quarter a year ago.
Cooper Tire Reports All-Time Record Sales
Cooper Tire & Rubber has reported all-time record high sales of $974 million and a 56 percent increase in net income for the quarter, which ended on March 31. The record sales represent a 23 percent increase compared to the same period a year earlier. Net income increased by 56 percent, to $24 million, compared to $15 million in the first quarter of 2003.
ASA Calls for Support of AHP Legislation
The Automotive Service Association (ASA) is asking automotive repairers to help support Association Healthcare Plans (AHP) legislation that allows associations to band together to purchase health care insurance for employees. The AHP legislation, H.R. 660, has passed the U.S. House of Representatives and is supported by President George W. Bush, but the U.S. Senate has not acted on its companion legislation, S. 545. With the Senate set to adjourn on Oct. 1, ASA is encouraging repairers to contact their senators and ask them to support and co-sponsor S. 545.
Florida Senate Committee Passes Insurer-Owned Repair Facility Legislation
By a vote of 8 to 1, the Florida Senate Committee on Banking and Insurance has passed Senate Bill 2692, which prohibits insurer-owned shops in the state of Florida.
High-tech is Giving Drivers Another Set of Eyes on Highways
Advances in automotive technology are giving drivers another set of eyes. There is parking assistance that backs a car into a parking space, miniature cameras that help a driver see at night and in blinding sunlight, detection devices that sound an alert when a driver crosses into a lane without activating the turn signal or starts to get too close to a pedestrian.
Aftermarket Suppliers: Be Aware of Legal Implications Related to Current Business, Industry Practices
Automotive aftermarket product manufacturers should review corporate internal and business policies with their company attorneys to assure compliance with Robinson-Patman and Sarbanes-Oxley laws, according to recent presentations to aftermarket executives sponsored by the MEMA Financial Services Group (MFSG). MFSG held the meeting for aftermarket supplier executives to discuss issues arising from current industry practices in regard to the laws passed by Congress.
Technology Outpaces Would-be Technicians
Help Wanted: Automotive technician. Starting salary: $30,000. Benefits include medical insurance, plus two weeks paid vacation and two long weekends off — that’s Thursday through Sunday — a year. How difficult is it to fill a job like that in Michigan’s lackluster economy? Plenty, according to Stan Shephard, owner of Shephard’s Hi Tech Automotive in Detroit. Shephard posted his help-wanted sign 18 months ago, and today the position remains unfilled. He’s had only 15 applicants for the job.
Federal-Mogul Changes its Plan, Shareholders to Be Offered New Stock
Federal-Mogul Corp. has amended its plan for emerging from bankruptcy to guarantee current shareholders the right to buy new shares in the reorganized auto supplier at a predetermined price. Under both the former and amended plans, current shares would be voided once the company exits bankruptcy and new shares would be issued. In an unrelated matter, Federal-Mogul announced Friday that a fire had extensively damaged its Smithfield, Tenn., distribution facility. All employees were evacuated safely. The company is working on a plan to resume operations elsewhere late this week. The center employed 225.
CSK and NHRA to Educate Youth on Dangers of Street Racing
CSK Auto Inc. and the National Hot Rod Association (NHRA) have joined forces to educate America’s youth of the dangers of street racing and the benefits of racing at licensed race tracks under controlled conditions. According to the National Highway Traffic Safety Administration, motor vehicle accidents are the leading cause of death for people aged 16 to 20. CSK Funny Car drivers Del Worsham and Phil Burkart, in conjunction with local police departments, are scheduling visits to high schools throughout the country to share their professional racing experience and offer firsthand knowledge of why drivers should “Race on the Track, Never on the Street.”
CBS Segment Featuring ASA’s Ron Pyle Sparks Criticism from Insurers, Repairers
The Automotive Service Association’s (ASA’s) Chief Staff Executive Ron Pyle was recently featured in two CBS programs that addressed the issue of insurer-owned body shops. A number of insurers and repairers responded negatively to the segment, including the National Auto Body Council (NABC), which sent a stern letter to CBS News stating that the segment didn’t live up to its sensationalized billing, when Dan Rather told the viewing audience to stay tuned to see how consumers are possibly being ripped off by collision repair shops.