Delphi Admits Accounting Flaw
Delphi Corp., the world’s largest auto supplier, said a preliminary internal accounting review found the company improperly recorded a $20-million payment from Electronic Data Systems Corp (EDS) in 2001. In a filing Wednesday with the Securities and Exchange Commission (SEC), the Troy, Mich., company said it also booked $26 million in credits from EDS in 2000 and 2001 for future information technology services when the amount should have been recognized over a longer period of time.
A Suppliers’ Guide to Innovation
As automotive suppliers continue to get hammered by price cuts, material cost increases, and competitors in low-cost countries, renewed attention is being focused on product and process innovation as a way to improve competitive positioning and profitability. So here we’ll look at the systems automotive suppliers need to implement if they want to consistently deliver on the innovation imperative.
Delphi Delays Quarterly Financial Report
Delphi Corp. said Wednesday it was postponing a quarterly financial report because of a federal investigation of $148 million in dealings with Electronic Data Systems Corp. (EDS) and another information technology company. Troy, Mich.-based Delphi, a former General Motors Corp. division and the world’s largest auto parts supplier, disclosed Sept. 29 that the Securities and Exchange Commission was investigating its dealings with EDS, also a former GM division.
Delphi Reduces Quarterly Loss; Parts Supplier Details Widening SEC Probe
Delphi Corp. narrowed its third-quarter loss to $114 million, and generated more cash than expected, but acknowledged a widening government probe into its accounting practices. The nation’s largest auto-parts maker warned Oct. 5 that it could lose as much as $120 million from July through September because steel and plastic prices rose dramatically, and its biggest customer, General Motors Corp., built fewer cars and trucks.
Dana AAG Announces Organizational Changes
While still waiting to complete its move to new ownership by Cypress Group, Dana Corp.’s Automotive Aftermarket Group (AAG) has announced several organizational changes. The changes affect both the under hood and under vehicle portions of the business. According to Terry McCormack, president of the group, the changes will “further streamline and strengthen our ability to lead the aftermarket in responsiveness, service and product offering.”
Collins & Aikman Announces Executive Appointments
Collins & Aikman Corp. has announced a number of executive assignments and appointments. Bryce Koth has been appointed to the position of CFO, effective immediately. Koth was the company’s vice president-finance and controller and head of tax. Prior to coming to Collins & Aikman in 2002, Koth had held senior finance positions at Visteon and Ford Motor Co., and had worked at Deloitte and Touche.
UGN Names Black Vice President of Finance
UGN, Inc., a supplier of acoustic, interior trim and thermal management products to the automotive industry, has promoted Douglas Black to vice president of finance. In his new position, Black will be an officer of UGN with full responsibility for the financial component of the UGN business model.
Tenneco Automotive Re-Elects Board Members
Stockholders at Tenneco Automotive reelected board directors Charles Cramb, Timothy Donovan, M. Kathryn Eickhoff, Mark Frissora, Frank Macher, Roger Porter, David Price, Jr., Dennis Severance, and Paul Stecko during the company’s annual meeting held Wednesday.
Metaldyne Launches Internal Inquiry
Auto supplier Metaldyne Corp. has launched an internal investigation into questionable accounting practices for the last seven years that could have resulted in overstating the company’s earnings by $20 million. The error was followed by a cover-up to balance the books, the company said.
Reynolds Shareholders Re-Elect Three Board Members, Approve Stock Incentive Programs
Shareholders of The Reynolds and Reynolds Co. have approved the re-election of three board members, each for a three-year term. Re-elected were Eustace Mita, chairman and CEO of Avista Properties Worldwide LLC, Philip Odeen, former chairman of TRW Inc., and Donald Peterson, chairman and CEO of Avaya Inc.