Power Steering Flaw Prompts GM Recall
General Motors Corp. is recalling more than 800,000 cars because of a power steering defect that may have led to eight injuries. About 750,000 cars in the U.S. and about 55,000 in Canada — all made between Jan. 1, 1996, and Oct. 31, 1997, — are affected, GM said. The models are the 1996 Buick Regal, 1997 Oldsmobile Cutlass Supreme, 1997-98 Oldsmobile Cutlass, Chevrolet Lumina, Monte Carlo, Malibu, and 1998 Oldsmobile Intrigue cars. Also, some 1996 Pontiac Grand Prix and Oldsmobile Cutlass Supreme, and 1997-98 Buick Regal cars are being recalled. Eight reported nonfatal injuries may be related to the defect.
Cooperation Urged in Auto Costs Fight
As a former Ford Motor Co. executive, Kathleen Ligocki knows about the carmakers’ mission to slash supplier prices. But in order to survive long-term, automakers must work with suppliers to take out the waste, said Ligocki, now chief executive of Tower Automotive. Speaking on an Automotive News World Congress panel Monday in Dearborn, Mich., Ligocki, a former vice president for Ford customer services, called for a collaborative effort between suppliers and carmakers to improve both sides’ bottom lines.
Car Care Council Reports Increased Web Site Usage, Women’s Board Membership Up
In 2003, usage of the Car Care Council’s Car Care Newspaper Supplement (CCNS) Web site grew dramatically, the council said. The growth coincides with the first year of the Car Care Council’s “Be Car Care Aware” consumer-education campaign. In addition to the news of increased usage of Car Care Council materials, the Car Care Council Women’s Board’s announced that its membership more than doubled in 2003, setting a record high number.
Visteon Projects Profit After Losses
Visteon Corp. expects to earn a small net profit this year after losing at least $1.6 billion from 2001 to 2003, executives said Thursday. If Visteon turns a profit this year, it would be the first since 2000, the year the auto parts maker separated from Ford Motor Co. In a briefing for Wall Street analysts in conjunction with the North American International Auto Show, Visteon laid out its financial expectations for the first time in at least a year.
Lear Bases Rosy Outlook on Economy, New Sales
Auto-interiors supplier Lear Corp. said Thursday it would grow its profit in 2004 as the company reaps the benefits of new business and an improving economy. Lear, in a presentation with analysts in conjunction with the North American International Auto Show, said it expects to earn $5.85 to $6.25 per share this year, in line with the analyst consensus estimate of $6.11. The forecast also beats the 2003 earnings-per-share consensus estimate of $5.51.
Bridgestone Americas’ Lampe To Retire
John Lampe, chairman, CEO and president of Bridgestone Americas Holding, who led the company’s remarkable recovery after devastating tire recalls in late 2000 and early 2001, announced today that he is retiring effective Mar. 31. He will be succeeded as chairman and CEO of BAH by Mark Emkes, currently chairman, CEO and president of Bridgestone/Firestone North American Tire (BFNAT). Lampe announced his retirement this afternoon during a company-wide live Web cast and conference call. In addition, Lampe and Emkes granted Tire Review an exclusive in-depth interview about the retirement and the company’s future plans earlier this morning.
Ex-Visteon Employees File Suit
More than 50 former employees of Visteon Corp. have filed a lawsuit against the $18-billion auto-parts supplier, claiming that the company conned them into signing non-negotiable separation agreements that they later learned were negotiable for more compensation. The multimillion-dollar suit, filed last week in the U.S. District Court in the Eastern District of Michigan, says that Visteon presented 54 workers with separation contracts in April 2001 after the Dearborn, Mich.-based company announced that it would cut its white-collar workforce.
Eaton Plans Joint Venture with Chinese Auto A/C Maker
Eaton Corp. has formed a joint venture with Chinese A/C maker Changzhou Senstar Automobile Air Conditioner Co. Ltd. The two companies will produce automotive air conditioning hose and tube assemblies and power steering hose and tube assemblies in Shanghai for Volkswagen’s China operations. Terms of the agreement were not disclosed.
Executive Interview with Wolfgang Winzer, Vice President and General Manager of Siemens VDO Automotive Corp. Service & Special Solutions, North America
Our latest edition of “Executive Interview” features Wolfgang Winzer, vice president and general manager of Siemens VDO Automotive Corp. Service & Special Solutions, North America. Winzer recently talked with aftermarketNews.com about the company’s extensive history in the OE market and how this will help them build a stronger aftermarket segment. He shared some of the company’s goals for its aftermarket business in the coming years.