Redefining Reman
For many reman products, the core market remains healthy. According to Frost & Sullivan, however, metal prices have gone up, creating increased competition for cores, making it more difficult for remanufacturers to obtain certain hard-to-find ones. The study says that scrap metal is so valuable that people are buying up starter and alternator cores to sell as scrap rather than for use by remanufacturers. Thus, among certain product categories, the core market is tightening up, creating additional pressures.
American Axle CEO Has Eye on Delphi: Some Units Would Fit Well, Exec Says
Dick Dauch, CEO of American Axle & Manufacturing Holdings Inc., said Wednesday that parts of auto supplier Delphi Corp., which is in bankruptcy, would fit with his company’s business model.
GKN Pays $200 Million for Two Firms to Strengthen U.S. Position
GKN, the automotive components and aerospace group, strengthened its position in the U.S. by paying approximately $200 million to acquire two companies. The group, which still has some $763 million left over from $1.9 billion of its half stake in the helicopter maker AugustaWestland, has bought Rockford Powertrain, which makes drive-shafts for the construction industry, and an aerospace firm Stellex Aerostructures.
Dana Completes Acquisition of Core Operations in Mexico
Dana Corp. and Desc S.A. de C.V. have completed the dissolution of their Mexican joint venture. The closing of this transaction provides Dana with full ownership of several core operations based in Mexico, which will operate under Dana Holdings Mexico, S. de R.L. de C.V., a new Dana subsidiary.
The Collapse of American Remanufacturers Inc: An In-depth Look at ARI’s Fall into Bankruptcy
At one time, American Remanufacturers, Inc. (ARI) was huge, with a near legendary aftermarket executive at the helm. But in the span of 25 months, the honeymoon between ARI and its new CEO Larry Pavey was more than over — it had ended in a bitter divorce that jeopardized the reputation of a respected leader, sending the company first into Chapter 11 bankruptcy, then a disastrous Chapter 7 filing that shuttered ARI’s nine businesses across North America. It left 1,600 workers without jobs, other manufacturers without product, distributors without a supplier and a question mark over the future of the remanufacturing industry in the U.S.
AAM Breaks Ground for its Changshu Gear & Axle Manufacturing Facility in China
American Axle & Manufacturing Holdings (AAM) this week broke ground for a new gear and axle facility in Jiangsu Province, China. AAM has acquired land-use rights for approximately 30 acres in an industrial park in the city of Changshu for the construction of a 180,000-square-foot, manufacturing plant for its highly engineered driveline systems. From the new plant, the company will manufacture independent rear drive axles (IRDA), power transfer units (PTU), integrated oil pan (IOP) front axle module and driveshafts for several customers, including SsangYong Motors, Beijing Benz DaimlerChrysler, General Motors and additional OEMs.
Dana Completes Financial Restatements
Dana Corp. has completed its financial restatements for the first two quarters of 2005, the year 2004 and prior years. The company has filed amended annual and quarterly reports for the applicable periods with the U.S. Securities and Exchange Commission. As a result of these restatements, the total reduction in net income after tax for all periods restated was $44 million.
Dana Corp. to Acquire Full Ownership of Core Operations in Mexico
Dana Corporation has signed a letter of intent with DESC S.A. de C.V. under which Dana will acquire full ownership of several core operations based in Mexico. Under terms of the letter, Dana and DESC will dissolve their existing joint venture partnership, Spicer S.A. de C.V., with Dana assuming 100-percent ownership of five manufacturing operations, which had combined sales of $290 million (USD) for the trailing 12 months ended Sept. 30, 2005.
Divestment May Be Tough for Dana Corp.
With operations from Visteon Corp. and other troubled automotive suppliers already up for sale, Toledo’s Dana Corp. may have a tough time divesting $1.3 billion worth of businesses that it put up for sale.
Obituary: Recon Automotive Remanufacturers Founder Armand J. Mancini Dies
Armand J. Mancini, founder and chairman of Recon Automotive Remanufacturers, Inc. died of cancer yesterday at age 62. Mancini was an icon of the automotive remanufacturing industry, having founded Recon in 1973 and building it into one of the largest production engine remanufacturing operations in the country.