Executive Interview with Terry McCormack, President, Dana Automotive Aftermarket Group (AAG)
Our latest edition of “Executive Interview” features Terry McCormack, president of Dana Automotive Aftermarket Group (AAG). McCormack talked to aftermarketNews.com about the recent news that Dana will divest its aftermarket group. He shared details of the announcement as well as his insights on what this major change means for the company and the division.
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.
Cooper Tire Ups Investments in U.S. Manufacturing Plants, Hires 116 Plant Workers
Cooper Tire & Rubber has increased capital equipment investments in three of its four U.S. tire manufacturing facilities. The company said this increase provides additional production capacity of more than 2.4 million units to meet the steadily increasing demand for the company’s tires. The $32.1 million investment will include the purchase of new tire building machinery and presses. An additional 116 manufacturing employees will also be hired.
ArvinMeritor to Sell Ohio Trailer Systems Business to Sypris Solutions
ArvinMeritor has announced plans to sell its Kenton, Ohio, trailer systems business to Louisville, Ky.-based Solutions. ArvinMeritor said the sale of the facility, which employs more than 200 people, will allow the company to focus strategically within trailer products on its core processes for the design and assembly of complete systems, which consist of axles, brakes, suspension and ride control. Once the transaction is complete, Sypris Solutions would become a long-term, key supplier of trailer axle beams to ArvinMeritor’s trailer assembly facility in Frankfort, Ky.
Keystone Automotive Acquires Toronto-Based Quinte Bumper & Fender
Keystone Automotive Industries has acquired Quinte Bumper & Fender, a privately held company based in Ontario, Canada, that distributes automobile collision replacement parts. Quinte recorded sales of approximately $6.5 million during its most recent fiscal year. Terms of the transaction were not disclosed. The acquisition is a continuation of Keystone’s strategy to expand throughout Canada, according to Charles Hogarty, president and CEO of Keystone.
Transpro Named NAPA Branded Radiator Supplier
Transpro has been named supplier of a new radiator program for NAPA. Under the agreement, Transpro will supply NAPA with a radiator program that will offer a selection of popular radiator models covering a variety of automotive and light truck applications. Transpro will begin shipping product to NAPA this month, and the program will be rolled out to the NAPA distribution system in February.
Auto Executives Don’t See Big Profit Rise Until 2006, KPMG Study Reveals
The global automotive industry is not expected to return to peak profitability levels until at least 2006, according to the results of an annual global survey by KPMG, an audit, tax and advisory firm. However, automotive executives indicate the worst is behind them, citing 2003 as the worst year for profits in the half-decade, KPMG said. KPMG’s fifth annual survey, conducted in October and November 2003, polled 100 American, Asian and European automotive executives from 19 automakers and from 49 Tier 1 and 32 Tier 2 suppliers.
SEMA Creates Specialty Equipment Insurance Alliance
SEMA has expanded its member benefits with the creation of the Specialty Equipment Insurance Alliance (SEIA). The Alliance provides business insurance coverage to SEMA member companies through the services of Driver Alliant Insurances Services, one of SEMA’s benefit partners. Headquartered in San Diego, Calif., Driver Alliant has been a SEMA member company since 1993, and has provided services to SEMA members for a decade. An insurance provider with extensive experience working with trade groups such as SEMA, Driver Alliant works with each SEMA member on an individual case basis.