Federal-Mogul Changes its Plan, Shareholders to Be Offered New Stock
Federal-Mogul Corp. has amended its plan for emerging from bankruptcy to guarantee current shareholders the right to buy new shares in the reorganized auto supplier at a predetermined price. Under both the former and amended plans, current shares would be voided once the company exits bankruptcy and new shares would be issued. In an unrelated matter, Federal-Mogul announced Friday that a fire had extensively damaged its Smithfield, Tenn., distribution facility. All employees were evacuated safely. The company is working on a plan to resume operations elsewhere late this week. The center employed 225.
Advance Auto Parts Unveils New “2010” Format in Orlando
Advance Auto Parts has announced its grand re-opening in the Orlando, Fla., market, bringing 49 retail stores and 525 employees under the newly branded name, “Advance Discount Auto Parts.” Advance Auto Parts has invested approximately $4 million to remodel the 49 stores to the new “2010” format, which is currently being rolled out across the company’s chain. The new format features a new floor layout with improved product adjacencies, enhanced systems to offer more convenience to customers and high-impact signage.
Campaign to Bring Back the “Midas Touch”
Midas wants to return to its core value of trust with the resurrection of a marketing campaign first used in Midas advertising in the 1980s. The company’s new national advertising agency DDB Chicago is collaborating with Ogilvy & Mather Toronto on the “Trust the Midas Touch” campaign. The campaign will include commercials that take place in a Midas shop and show a humorous dialog between a customer of Midas and a Midas service employee, who is hooked up to a polygraph machine. The commercials are the first in a long-term campaign to grow Midas’ category-leading shares in brakes and exhaust and to support the expansion of its services, including oil changes and other routine maintenance services.
Herman Trend Alert: Outsourcing, Insourcing, Resourcing, Flexsourcing
Worker-employer relationships are changing. In addition to full-time, part-time and job-sharing options, employers are developing and enhancing alternative relationships with other employers and individuals in contingent arrangements. Over the next few years, outsourcing will increase. For-profit corporations, not-for-profits, government agencies and school systems will all distribute work to outside contractors. As more small companies are formed to meet the exploding need, expect an increase in the number of outsourced service providers.
Restructuring Charges Drive Midas to a Net Loss of $76.2 Million in 2003
Midas reported a net loss of $76.2 million — or $4.93 per diluted share — for fiscal 2003, which ended Jan. 3. Midas said the loss is primarily the result $102.6 million in charges related to its restructuring, completed in April. As part of the restructuring, Midas exited its wholesale distribution business and refocused its resources on retail franchising and real estate businesses.
Executive Interview with Howard Kesten, President and Founder of Workboards
Our latest edition of “Executive Interview” features Howard Kesten, president and founder of Workboards, which launched the automotive job site, aftermarketJobs.com, in December 2003. A two-time guest speaker at AAPEX, Kesten is also founder and CEO of APA Search, Inc., an executive search and human resources consulting firm serving the automotive industry. In 18 years, he has placed more than 1,600 automotive professionals. Join us as Kesten provides an introduction to aftermarketJobs.com and shares with us his predictions for the future of the aftermarket and the job market.
American Axle Gets 2-Tiered Pay Plan In Tentative Deal
The UAW’s quick settlement Friday morning of the one-day strike at American Axle & Manufacturing Inc. in Detroit finds the union again authorizing a concept it once loathed — a two-tier wage structure that ensures future employees never make as much as current ones.
Dana Corp. Prepares for 100th Anniversary Celebrations
Dana Corp. will kick off its centennial-year celebrations at an automotive technology event in downtown Detroit, this while banners announcing the anniversary will begin peppering downtown Toledo. The Toledo firm, which turns 100 on April 1, will start its centennial celebration at the Society of Automotive Engineers World Congress. Dana will return to the March 8 to 11 event at Cobo Center for the first time since 2001 after bowing out, along with other large suppliers, for business and financial reasons.
Crump to Chair NACE 2004 in Las Vegas
The International Autobody Congress & Exposition (NACE) has re-appointed Vernon Crump, body shop director for John Eagle Collision Center in Dallas, Texas, as chairman for NACE 2004, which will be held Nov. 3-6, in Las Vegas, to coincide with Automotive Aftermarket Industry Week (AAIW). Crump was NACE 2003 chairman and received accolades for his leadership and experience, and for the innovative programs he introduced at NACE to spotlight new technologies and to strengthen industry and global relationships.
Tower Automotive Acquires Remaining Shares of Seojin Industrial Co.
Tower Automotive has acquired Seojin Industrial Co. Ltd., a supplier of components to the Korean automotive industry. Tower previously held a 66 percent equity interest in Seojin and acquired the remaining shares as part of a settlement of an outstanding note from the minority interest partner.