Moody’s Cuts ArvinMeritor Rating
ArvinMeritor Inc. said its debt rating was lowered to non-investment grade by Moody’s Investors Service and that the move will boost the company’s borrowing costs. Moody’s cut its rating on the Troy-based company’s long-term debt to Ba1, one level below investment grade, from Baa3, ArvinMeritor, said in a filing with the Securities and Exchange Commission. The company makes truck axles and automotive exhaust systems. Moody’s said the downgrade reflects ArvinMeritor’s “relatively poor performance” in 2003 and the first quarter of 2004, a result of lower vehicle production and slow demand for heavy trucks.
“DST Asks” Parts Distributors: Which Features of a Computerized Business Management System are Most Useful to Your Business?
Our youngest readers may not be able to remember that there was a time before remote control technology when changing the channel on your television actually required getting up off the couch and making the long walk over to it. “Channel surfing” only existed when you could get one of your kids to sit next to the TV and turn the dial for you. Life was brutal then.
Executive Interview with Jim Taylor, CEO of Thomas Group
Our latest edition of “Executive Interview” features Jim Taylor, CEO of the Thomas Group. Taylor joined the Thomas Group in 2001 as vice president and CFO. From 1997 to 2001, Taylor served as president of the Chancellor Group, a Dallas, Texas, management consulting firm, where he assisted companies in restructuring, raising funds and completing initial public offerings. Join us as Taylor tells us more about the Thomas Group culture and how it works for its clients.
Delphi Continues Relationship with Hendrick Motorsports for 2004
Delphi is continuing its relationship with Hendrick Motorsports by becoming a major associate sponsor of the No. 5 Chevrolet in the NASCAR NEXTEL Cup Series, beginning this weekend with the Daytona 500 in Daytona Beach, Fla. The sponsorship is in association with Kellogg’s for the No. 5 NASCAR driven by two-time Winston Cup champion Terry Labonte.
Automotive Supplier ZF Lemforder Plans to Close Duncan, S.C., Plant
Automotive supplier ZF Lemforder will close one of its two Duncan, SC, plants within two years and will lay off an unspecified number of employees, officials confirmed last week. Frank Buscemi, public affairs director with ZF Group North America, said the company’s components plant would be closed by the end of 2005 because it cannot fill demand and cannot be expanded.
Auto Suppliers Under Pressure to Shift Production Abroad
A new study soon to be released by the Society of Automotive Engineers (SAE) is showing that the pressure to move automotive manufacturing jobs abroad will continue, despite federal and local government efforts to maintain or increase industry employment levels in the U.S. The SAE will release the report at the 2004 SAE World Congress in Detroit next month. The study, which is still under development, will outline “best practices” for global automotive suppliers. The Odyssey study seeks to help suppliers understand how their global manufacturing operations will need to change and how best to make those changes to survive and thrive.
Clemson Nabs Top Leader For Auto Project
The new director of Clemson’s automotive research center drives a minivan, but Robert Geolas does not recall how many pistons it packs. Geolas, a North Carolina State grad, said his Honda CRV was built in 1991. Or was that 1992? His wife once told him he did not have enough automotive experience to change a tire. “I hope they didn’t hire me to be an automotive expert,” Geolas said. But Geolas said there are plenty at Clemson. He said the university has automotive engineering talent and the vision to build a graduate program designed to attract research and higher-paying jobs to South Carolina.
Fewer U.S. Vehicles are Being Scrapped, According to R. L. Polk & Co.
The fact that vehicles are staying on the road longer is a boon for the aftermarket, and according to recent research from R. L. Polk & Co., the numbers are moving even more in the aftermarket’s favor. Vehicle scrappage rates declined 9.1 percent in 2003, according to recent Polk research. The number of passenger cars scrapped in 2003 was down 6.1 percent while light trucks experienced a 12.7 percent decrease. Both numbers were factors in driving the scrappage rate down for all vehicles, a trend since 1970, according to Polk.
ArvinMeritor Launches Search for CEO Successor
ArvinMeritor’s board of directors has retained an international executive search firm to identify a successor to Larry Yost, chairman and CEO. Yost said he will remain in his current capacity until a successor is found.
AMN Perspectives by Thomas Group: Experience at Work
In our last article we talked about inventory management as a trade-off. In most organizations there are conflicting inputs from various departments that affect inventory decisions: finance wants low inventory levels to minimize working capital costs; sales and marketing wants high inventory levels to ensure excellent customer service; production wants long-term planning with low flexibility to create high production efficiencies. Logistics wants to minimize transportation, handling and inventory holding costs.