Auto Parts Suppliers’ Second Quarter Should Reflect Steady Production
U.S. auto-parts suppliers have been hit hard by slumping production of sport-utility vehicles in North America, particularly at GM and Ford Motor Co., but recent turmoil in the auto industry isn’t expected to throw a wrench into its suppliers’ second-quarter results, as auto production has remained on track and commodity costs have behaved.
Metaldyne Rescues Former Chrysler Plant with Japanese Work Ethic, Fewer Workers
When auto parts supplier Metaldyne Corp. acquired Chrysler’s machining and forge plant here last year, residents of this small Midwest town feared the worst. Chrysler had been the area’s largest employer since the 1920s, giving it an identity it treasured as dearly as its claim on native son and basketball great Steve Alford.
Ford Cuts More Salaried Jobs
Acknowledging that weak sales will reduce profits this year, Ford Motor Co. is cutting its salaried workforce and the compensation of remaining workers, the automaker said late Tuesday afternoon. Ford said it will eliminate 1,700 white-collar jobs, or 5 percent of its salaried positions in North American automotive operations, by Oct. 1, and slash its spending on agency or purchased services by 10 percent by July 1. Ford had already announced in April that it was cutting 1,000 salaried jobs.
Auto Suppliers Feel Carmakers’ Pain
Automotive supplier Collins & Aikman filed for bankruptcy-court protection Tuesday, evidence that financial troubles at the automakers are having a rapid and dramatic effect on the companies that make car parts. A May 5 decision by Standard & Poor’s to downgrade General Motors and Ford Motor to junk bond status had little near-term impact on the carmakers, but automotive suppliers are suddenly facing a cash crunch that could put their very existence at risk.
Lear’s Plunging Profit to Send Jobs Packing
The bug afflicting Detroit’s automotive industry is infecting even the healthiest companies now. Auto supplier Lear Corp. on Friday said it is planning an aggressive cost-cutting strategy, which includes moving manufacturing and engineering work to low-cost countries, after it posted a $75.8-million decline in profits during the first quarter of the year.
Accounting Concerns Jolt GM’s Stock
General Motors Corp.’s stock skidded Wednesday after accounting experts cast doubt on how the automaker reported certain transactions with former subsidiary Delphi Corp., its largest supplier. The Wall Street Journal reported Wednesday that several accounting experts it contacted had looked askance at the choices made. A GM spokeswoman insisted the accounting was appropriate and that the experts did not have complete knowledge of the transactions.
Continental Automotive Systems Appoints New Aftermarket Director
Continental Automotive Systems has appointed David Mestdagh director of its North American aftermarket business. In this position, Mestdagh will be responsible for the overall business strategy, product quality and performance; as well as development of effective sales and marketing activities in North America for the ATE brand of products.
ZF Names Ed Frutig Vice President of Customer Strategy for North America
ZF, a global automotive supplier of driveline and chassis technology, has named Ed Frutig vice president of customer strategy for ZF Group’s North American Operations (NAO). Frutig previously held the position of global customer director for Ford and General Motors, responsible for axle systems business acquisitions. He will continue these duties in his new role, while planning ZF Group NAO strategy with OEMs in North America.
In Latest Blow, Dividend Looks Shaky at Delphi
The dramatic departure of Delphi’s CFO coupled with the news that the auto supplier will restate finances could signal a final blow to its already shaky quarterly dividend. Although the payoff to investors is small — Delphi has paid 7 cents a share since it was spun off from General Motors in 1999 — the mere act of paying dividends attracts investors who may not otherwise invest in the tumultuous automotive supply sector.
Struggling Detroit Woos Japan’s Carmakers
At many union halls in Michigan, signs on parking lots still warn that foreign-made cars “will be towed away at owner’s expense.” So why is Governor Jennifer Granholm of Michigan pushing so hard to close a sweetheart land deal with Toyota?