Struggling Detroit Woos Japan’s Carmakers
At many union halls in Michigan, signs on parking lots still warn that foreign-made cars “will be towed away at owner’s expense.” So why is Governor Jennifer Granholm of Michigan pushing so hard to close a sweetheart land deal with Toyota?
Delphi Plans More Job Cuts
Delphi Corp. said Friday it plans to cut 8,500 jobs, or 4.6 percent of its workforce, worldwide next year as part of an ongoing restructuring. The world’s largest automotive-parts supplier also expects to lose $350 million as it struggles with lower vehicle production and rising commodity prices. The Troy, Mich.-based company had a similar goal for global job reductions in 2004 and exceeded it through attrition, retirements and job transfers. In the first nine months of 2004, Delphi trimmed between 9,100 and 9,200 jobs, spokeswoman Claudia Baucus said.
Consumer Auto Parts Joins IAPA
Independent Auto Parts of America (IAPA) recently announced that Milford, Mass.-based Consumer Auto Parts, has joined the group as its newest member. Established in 1973, Consumer Auto Parts serves more than 3,000 installers from its 22 company owned stores located in Massachusetts and Southern Vermont. The company, led by President Merrill Cohen, has a mix of customers that is 50/50 installer/retail. Annual consumer sales for the last fiscal year were $35 million.
Auto Supplier Profits Dwindle
Although new car and truck sales rose more than 2 percent during the first 10 months of 2004, many of the companies that supply parts to big automakers have little to celebrate. Their profits are shrinking as raw-material costs rise and production falls at General Motors Corp. and Ford Motor Co. Already the nation’s two largest suppliers, Delphi Corp. and Visteon Corp., which had combined sales of $45.7 billion in 2003, have warned of lower-than-anticipated earnings this year. They cite higher materials expenses, particularly for steel, and plans by top U.S. automakers GM and Ford to turn out fewer vehicles.
GM Cutbacks Sting American Axle
American Axle & Manufacturing Holdings Inc., the world’s second-largest maker of automotive drive systems, said first-quarter profit fell 32 percent as General Motors Corp. cut light-truck production and bought fewer parts. American Axle & Manufacturing Holdings Inc., the world’s second-largest maker of automotive drive systems, said first-quarter profit fell 32 percent as General Motors Corp. cut light-truck production and bought fewer parts.
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.
DuPont To Cut 3,500 Positions
DuPont Co. said yesterday that it will reduce its workforce by 6 percent, or 3,500 positions, by the end of the year to save $325 million annually. The Wilmington, Del.-based chemical company, whose products include Corian surfaces, Tyvek house wrap and auto paint, said that about 3,000 positions would be eliminated through severance programs and about 500 through normal attrition. The company also said it would stop using 450 contractors.
Auto Supplier Venture: Money Diverted Before its Bankruptcy
One of Michigan’s largest private corporations has taken the extraordinary action of suing the man who founded it, saying he, his family and side businesses owned by them siphoned more than $314 million from the corporation before it declared bankruptcy.
Yost to Retire as ArvinMeritor CEO
Auto-parts supplierArvinMeritor Inc., which lost its bid to buy Dana Corp. last year, said Monday it is searching to replace chief executive Larry Yost, who plans to retire. The Troy-based company offered few details about the search, but company spokeswoman Lin Cummins said Yost has wanted to retire for some time. Yost led the company through several transitions including the 2000 merger of Arvin Inc. and Meritor Automotive Inc. He had been CEO of Meritor before he became chairman and CEO of ArvinMeritor.
Visteon’s Biggest Loss Pushes Stock Down
Wall Street pounded Visteon Corp. stock Friday after the former parts division of Ford Motor Co. reported by far the biggest quarterly loss in its short history as an independent company and underwhelmed investors with its expectations for the first quarter of 2004. Visteon reported a loss of $863 million, or $6.87 per share, for the final three months of 2003, bringing the full-year loss to $1.2 billion, or $9.65 per share. Over the last three years, Visteon has lost about $1.7 billion.