Tower Seeks $200 Million Loan
Tower Automotive Inc., which makes body structures for car manufacturers, said it retained Rothschild LLC late last week as a financial adviser to help in arranging a $200-million loan.
Automotive Suppliers Applaud Passage of Omnibus Appropriations Bill: Industry Initiatives Garner Critical Funding for 2005
The fiscal 2005 Omnibus Appropriations Bill, approved by Congress on Nov. 20, includes several measures supported by the Motor & Equipment Manufacturers Association (MEMA). These measures will aid in the fight against noncompliant automotive parts; provide additional funding for MEP centers that work one on one with medium and small-sized automotive suppliers to boost competitiveness; and grant automotive suppliers and other employers the flexibility to hire international graduates of American universities.
Valvoline Announces Management Changes
Valvoline, a division of Ashland Inc., recently announced several changes in management, including the promotion of Mitchell Skaggs and Robert Craycraft to new positions on Valvoline’s senior management team. Scott Vogel, a consumer marketing executive, has joined the division as president of Valvoline Instant Oil Change (VIOC), Valvoline’s quick-lube business unit. In a related move, John Wesley, former president of VIOC, was named senior vice president and general manager for Valvoline’s DIFM (do-it-for-me) Distributor Group business unit.
Advance Auto Parts Reports Record Third Quarter Sales and Earnings
Advance Auto Parts has reported record sales and earnings for its third quarter, which ended on Oct. 9. Net sales increased 6.1 percent in the third quarter to $890.2 million from $839.1 million in the same quarter last year. Comparable store sales grew 3 percent in the third quarter. Do-it-yourself (DIY) comparable store sales decreased 0.6 percent and do-it-for-me (DIFM) comparable sales increased 21.4 percent.
Case Study: The DNA Building-Block Approach in Action
NMS Communications, a mid-sized network equipment manufacturer, employed the Thomas Group DNA building-block approach to reengineer the supply chain for its platform business, which accounts for 80 percent of the company’s revenue. NMS realized that to maintain a competitive edge, it needed to create a high-speed, demand-driven supply chain. But developing such a capability in an environment where forecasts traditionally ruled was a challenge.
Monro Muffler Brake, Inc. Announces Record Second Quarter Results
Monro Muffler Brake has announced record financial results for the second quarter, which ended on Sept. 25. Second quarter sales increased 19.3 percent to $88.4 million from $74.1 million in the second quarter of fiscal 2004. The sales increase was driven, in part, by a 6 percent improvement in comparable store sales, following a 6.6 percent increase in the same quarter of last year.
Charting Your Supply Chain DNA — The DNA Building Blocks
What is the genetic structure of a successful supply chain? This week we want to dig a little deeper into the major elements that make a supply chain competitive.
Tower Automotive to Reduce Production at Greenville, Mich., Facility
Tower Automotive plans to reduce production at its Greenville, Mich., plant as part of a company-wide effort to improve operational performance and control costs. The company intends to move manual stamping operations and related weld assemblies from Greenville to other existing Tower Automotive locations in Elkton, Mich., and Kendallville, Ind., where automation capabilities already exist.
Striking UAW Workers at Michelin’s Ontario Plant Accept Labor Terms
The strike at Michelin North America’s (MNA) Kitchener, Ontario, plant that began on June 1 is effectively over, now that workers have voted to ratify a deal with the tiremaker. On Aug. 23, members of the United Steelworkers of America (USWA), Local 677, voted 94 percent in favor of the deal. The proposal contains wage and benefit improvements and ensures the Ontario plant, as well as three U.S. plants — in Tuscaloosa and Opelika, Ala., and Woodburn, Ind. — will be protected from closure for the life of the agreement.
Automakers Shift Focus to Health Care Crisis
An aging former auto industry worker underscores a key challenge facing the U.S. automotive industry and all of manufacturing in the years to come. “Our oldest retiree is 109 years old,” said Jerry Elson, vice president at General Motors. The man, who retired in 1958, is the oldest of 1.1 million people — including 500,000 retirees — for whom GM spent more than $4.8 billion on health care last year. That’s more than the largest U.S. automaker spends on steel, even with steel prices up 30 percent to 60 percent this year.