Automakers Shift Focus to Health Care Crisis
An aging former auto industry worker underscores a key challenge facing the U.S. automotive industry and all of manufacturing in the years to come. “Our oldest retiree is 109 years old,” said Jerry Elson, vice president at General Motors. The man, who retired in 1958, is the oldest of 1.1 million people — including 500,000 retirees — for whom GM spent more than $4.8 billion on health care last year. That’s more than the largest U.S. automaker spends on steel, even with steel prices up 30 percent to 60 percent this year.
Johnson Controls to Acquire Grupo IMSA Automotive Battery Business
Johnson Controls announced that it is acquiring 100 percent ownership of Grupo IMSA, a joint venture automotive battery business that the company shared with a group of Mexican and South American partners. Grupo IMSA is the leading automotive battery producer in Mexico and South America. The company reported fiscal 2003 sales and operating income for the business of $429 million and $88 million, respectively. Johnson Controls has been a major customer of the joint venture since it was formed in 1998.
Rising Auto Recalls Eat Profits
General Motors Corp., Toyota Motor Corp. and two other U.S. carmakers have in six months exceeded the vehicle recalls for last year, reducing profit. GM recalled 7.92 million cars and light trucks as of July 2, and said repair costs had helped cut first-quarter profit in North America by 18 percent. Toyota recalled 367,000 Highlander sport-utility vehicles, surpassing last year’s total by 74 percent. DaimlerChryslerAG’s Chrysler and Honda Motor Co. also are ahead of 2003.
MSX International Chairman Resigns, Will Remain on Board of Directors
MSX International (MSXI) has announced the resignation of Thomas Stallkamp as chairman of the board. Stallkamp resigned as chairman on June 30, but will continue as a member of the board of directors. Prior to being named chairman in late 2003, Stallkamp joined MSXI in 2000 as CEO, vice chairman and a member of the board of directors. During this period, Stallkamp helped the company address changes in its automotive business and expanded the company’s focus into new businesses.
Automotive Tool Makers Get the Scoop on New Vehicles at ETI Detroit Tech Week
More than 80 representatives from 42 automotive tool and equipment manufacturers received technical information on new and upcoming vehicles direct from the carmakers at the 24th Annual Detroit Tech Week, held June 14-18 and hosted by the Equipment and Tool Institute (ETI).
Auto Industry Conference to Help Participants Navigate the Future of the Industry
A perfect storm is brewing for global automakers and suppliers, but those who lead, manage and influence the industry have the knowledge and capabilities for navigating the troubled waters ahead. They’ll share their insights in early August in the Traverse City, Mich. area at the Management Briefing Seminars — the automotive industry’s premier conference event.
OEM Purchasing VPs to Discuss Industry Collaboration at Auto-Tech 2004
Top purchasing executives from DaimlerChrysler Corp., Ford Motor Co., and General Motors Corp. will headline a panel discussion on global purchasing practices at the 17th annual Auto-Tech conference at the Cobo Conference Center on Wednesday, Sept. 1. Auto-Tech is an automotive industry trade conference organized by the Automotive Industry Action Group (AIAG).
DCX Accused of Intimidation
The controversy over DaimlerChrysler AG’s lending policies in Chicago, where the company is under a boycott and sales of the automaker’s vehicles continue to erode, appears to have escalated. Two longtime Chicago automobile dealers accuse DaimlerChrysler of harassing them because they plan to testify in a federal lawsuit on behalf of a former dealer, who accuses the automaker of racist lending policies. They say the company has made unreasonable requests for documents through subpoenas.
Police Raid Home of Ex-Mitsubishi Head
Police on Monday raided the home of the former president of Mitsubishi Motors Corp., who was arrested last week on suspicion of hiding auto defects. Police on Monday raided the home of the former president of Mitsubishi Motors Corp., who was arrested last week on suspicion of hiding auto defects.
Behr America Expands Production at Dayton, Ohio, Facility
Behr America has completed the first phase of a multi-million-dollar expansion plan in Dayton, Ohio, which has the company taking full ownership of Behr Dayton Thermal Products. Previously, Behr Dayton Thermal Products was co-owned by Behr America and DaimlerChrysler Corp., a joint venture that lasted two years. Behr America, a subsidiary of German company Behr GmbH & Co. KG, supplies engine-cooling and air-conditioning systems to the automotive industry.