Goodyear to Seek Millions in Loans
Goodyear Tire & Rubber Co., on the verge of posting its third straight annual loss, said Tuesday it plans to take on an additional $300 million in loans to fund its turnaround. The Akron, Ohio, company said it is also taking steps to follow through on a promise made last year to the United Steelworkers of America to complete a large bond sale. The sale is designed to improve the company’s strength and protect union jobs.
Dupli-Color TV Commercial Receives Advertising Award
Automotive paints, primer and coatings manufacturer Dupli-Color Products Group was the recipient of a Gold ADDY. The Cleveland ADDY Awards Competition is the first of a three-tiered national competition conducted annually by the American Advertising Federation (AAF). The ADDY Awards Competition is the industry’s largest and most representative competition for creative excellence.
Coyle Named to Fuel Systems Job at TI Automotive
Patrick Coyle has been named North American regional director for TI Automotive’s Global Fuel Systems Division. Previously, Coyle was responsible for global fuel-system quality. TI Automotive is a tier one supplier of integrated fuel-storage and delivery systems.
Who’s Buying Whom?
Who owns the suppliers of today? New owners include leveraged buyout firms, putting a new spin on the old consolidation trend. In the wake of Dana’s announcement to sell off its aftermarket businesses comes the speculation of who will buy it. Water cooler conversations in the office haven’t exactly been at a fevered pitch. That’s a dramatic change from just a few short years ago when SPX was trying to make a hostile purchase of Echlin (which ultimately ended up in the hands of Dana), or when Federal-Mogul was buying up companies as part of former CEO Dick Snell’s major consolidation plan. Those were the good old days of major aftermarket acquisitions. Now, we’re left to ponder the fate of the Dana Automotive Aftermarket Group. The big question is: Who among the current base of manufacturers is a candidate to make such a large acquisition?
Johnson Controls’ Earnings Up 17 Percent
Johnson Controls Inc. said quarterly earnings rose 17 percent, with both its automotive parts and building controls businesses reporting double-digit sales gains. Johnson Controls also eliminated a few dozen jobs at its Milwaukee controls division, even as it plans to expand the business by about 100 jobs, the company said Wednesday.
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.
Kayaba to Expand Global Manufacturing Operations
Next month, Kayaba Industry Co., Ltd. (KYB) will acquire a 75 percent shareholding in AP Amortiguadores SA (APA) currently held by ArvinMeritor. In the U.S., Kayaba is set to expand its manufacturing base at Franklin, Ind, to support growing sales of KYB shocks and struts to the North American aftermarket.
NAPA Windshield Receives Two Manufacturer of the Year Awards
NAPA Windshield Products has received the 2003 NAPA Manufacturer of the Year Award from the NAPA Underhood Sales Group as well as the NAPA Retail Sales Group, honoring it as the top supplier for these sales groups. The two awards were presented to the Windshield Products group at the NAPA Sales Meeting in Atlanta on January 15.
Automakers Help Allies Handle Crises
Seeking to mitigate disaster costs after events such as 9/11 and last year’s blackout, Detroit automakers said Wednesday they’ll ask their suppliers and dealers to take part in a crisis management plan that will prepare them for emergencies. The automakers, working together through a trade organization called the Automotive Industry Action Group (AIAG), released a booklet that could serve as a guide for suppliers and dealers that either don’t have a contingency plan or want to modify an existing one. GM said that it will begin rolling out the process to all its 3,700 suppliers next week. The AIAG said the plan is voluntary for suppliers and will result in minimal costs for the companies.
Johnson Controls Delays Move
Plymouth Township, Mich., will retain its largest taxpayer for the time being. Johnson Controls officials recently announced they will not to move to Salem Township this year, but still expect to relocate their headquarters and technology facilities from Plymouth Township to a larger site when a suitable location is found.