India: New Hub of the Automotive Industry
India’s car market has emerged as the fastest-growing in the world. With the number of cars sold in the country projected to double by 2010, Europe’s key automotive players are busy building factories in the sub-continent, where costs are low and margins high. In the space of five years, production of passenger cars in India has jumped by more than 100 percent to 1.11 million vehicles sold last year. International analysts agree that the country is in the major league of Asian automotive markets, but until now most car companies preferred China over India as the location for a manufacturing bridgehead.
Tower Automotive to Invest $5.6 Million in Ohio Plant
Tower Automotive Products Company, Inc. has proposed an expansion at a facility located in Bellevue, OH. The company owns two facilities in Bellevue, but one facility, which manufactures and e-coats truck frames for the Ford Motor Co. Lorain Ohio Assembly Plant, will be the site of expansion. This location maintains 15 full-time employees. The other Tower Automotive Bellevue facility manufactures suspensions and modules.
International Automotive Components Acquires Collins & Aikman Brazil
International Automotive Components Group Brazil, a joint venture between WL Ross & Co. LLC and Franklin Mutual Advisers, LLC, has acquired a controlling stake in the Brazilian operations of Collins & Aikman. The deal includes 100 percent of the equity interests in Permali do Brazil Industria e Comercio Ltda. (Permali), and approximately $48.2 million of intercompany loans (including accrued interest), to Plascar Industria de Componentes Plasticos Ltda. (Plascar Ltda).
Chris Theodore Joins ASC Incorporated
ASC announced that auto-industry veteran Chris Theodore has joined the company as vice chairman. Theodore, 55, will report to ASC President and CEO Paul Wilbur, and will immediately assume primary responsibility for all of the company’s product-development activities, while also assisting with operations and all other automotive business matters at ASC.
Tenneco Automotive CEO Optimistic About New OE Business
Mark P. Frissora, chairman, CEO and president, Tenneco Automotive said the company is winning new OE business with its advanced suspension and emission control technologies. Its products are featured on more than 30 vehicle model premieres at the 2005 Frankfurt Auto Show (IAA).
General Motors Loses $1.1 Billion in Last Quarter
General Motors Corp. just finished its worst three-month period in more than a decade, losing $1.1 billion, and spending $3.5 billion out of its savings. But as Chairman and CEO Rick Wagoner works to get the world’s largest automaker through its toughest year since the early ’90s, one headache he doesn’t have is worrying about running out of cash, as Chrysler Corp. did in the late ’70s.
EU Probing Four Car Makers Over Access to Technical Maintenance Info
The EU Commission said it is probing four car makers on suspicion that they restricted access to technical information required for vehicle maintenance in a way that may contravene EU competition law. The EU Commission said it is probing four car makers on suspicion that they restricted access to technical information required for vehicle maintenance in a way that may contravene EU competition law.
Manufacturer to Establish U.S. Headquarters in Toledo, Ohio
After considering a number of competitive sites within a two-hour driving radius of Detroit, Egelhof Controls Corp., a German-based manufacturer serving the automotive and heating industries, has selected Toledo, Ohio, to house its U.S. headquarters and manufacturing operations. Cornel Broenner, currently at Egelhof’s production facility in Breitenbach, France, will relocate to Toledo to become the plant manager. Sales and engineering activities, which were established in metro Detroit in 2000, will also relocate to the new facility in Toledo.
Lear Announces Executive Appointments
Fortune 500 automotive interiors company Lear Corp. announced the following organizational changes this week. Jim Brackenbury, has been named president – Mexican Operations, succeeding Dino de Falco who is retiring. Frank Orsini succeeds Brackenbury as president of the DaimlerChrysler Division and Dan Golles replaces Orsini as vice president – GM Truck Group. Brackenbury, Orsini and Americo Nesti, president – South American Operations whose position remains unchanged, report directly to Douglas DelGrosso, president and COO – Americas. Golles will report to Frank Sovis, president of Lear’s GM Division.
Joint Venture to Develop New Car Race to Replace Formula One
GPWC Holdings BV, a group of four carmakers, said it has appointed International Sports and Entertainment AG (iSe) to start building the operational and commercial structure immediately for a new car racing event replacing Formula One by 2008 at the latest.