Auto Supplier Venture: Money Diverted Before its Bankruptcy
One of Michigan’s largest private corporations has taken the extraordinary action of suing the man who founded it, saying he, his family and side businesses owned by them siphoned more than $314 million from the corporation before it declared bankruptcy.
Firms Eye Cooper, Dana Auto Part Units-Sources
A handful of large private equity firms are considering bids for two key automotive parts businesses on the auction block, sources close to the situation said. Both Dana Corp. and Cooper Tire and Rubber Co. have announced they may divest their auto parts businesses. Each unit may separately fetch $1 billion or more, analysts estimate.
Prolong International Appoints Two New Board Members
Prolong International Corp., parent company of Prolong Super Lubricants, which manufactures patented consumer automotive, commercial/industrial and household products, has appointed Cary Fitchey and Robert Lautz as members of its board of directors. Fitchey and Lautz fill existing vacancies on the board.
Linamar to Buy Out Wescast in Joint Venture; Reports Fourth Quarter Loss of $1.3 Million
Wescast Industries Inc. plans to sell its 50 percent stake in its European joint venture with Linamar Corp. to Linamar, the auto-parts makers announced Wednesday. The two companies were still negotiating the sale of Weslin Industries Inc., and did not provide any financial details of the transaction. In a conference call to discuss quarterly results, Linamar chief executive Linda Hasenfratz did not expect Weslin — a joint venture established in 1999 to manufacture iron automotive castings for the European market — would become profitable soon.
Foreign Countries Try to Lure Auto Jobs
Luis Salazar’s booth is one of the largest at the Society of Automotive Engineers World Congress, with four columns, flags and several comfortable leather chairs. But with space that rivals General Motors Corp.’s and Ford Motor Co.’s exhibits, Salazar isn’t pushing cool 21st-century technology, sensors or car parts — he’s pushing Mexico. If you have jobs, the Mexican deputy trade commissioner has plenty of land, workers and a proven track record with the auto industry to offer.
New Ideas Should Help Old Favorite
After getting whacked by big upheavals in the automotive supply world, the wobbly SAE World Congress, Detroit’s biggest and most important trade show, seems to be finding its legs again.
Compuware Panning to Buy Covisint
Compuware Corp., the largest high-tech company based in Michigan, is expected to announce that it will purchase financially struggling Covisint LLC, according to documents on Compuware letterhead obtained by the Detroit Free Press. The acquisition, expected to be completed within 30 days for an undisclosed “small cash transaction,” ends the most expensive Internet start-up and flop ever launched in Michigan.
Delphi’s Rodney O’Neal Elected to Goodyear Board
Rodney O’Neal, president of Delphi Corp.’s dynamics, propulsion, thermal and interior sector, has been elected to Goodyear’s board of directors. O’Neal, a 33-year veteran of the auto industry, was elected a Delphi vice president and president of its interior systems business when the auto parts maker was incorporated in 1998. Delphi was spun off from General Motors Corp. in 1999. He was named executive vice president and president of Delphi’s Safety, Thermal and Architecture Sector in 2000.
Visteon’s Biggest Loss Pushes Stock Down
Wall Street pounded Visteon Corp. stock Friday after the former parts division of Ford Motor Co. reported by far the biggest quarterly loss in its short history as an independent company and underwhelmed investors with its expectations for the first quarter of 2004. Visteon reported a loss of $863 million, or $6.87 per share, for the final three months of 2003, bringing the full-year loss to $1.2 billion, or $9.65 per share. Over the last three years, Visteon has lost about $1.7 billion.
Kayaba to Expand Global Manufacturing Operations
Next month, Kayaba Industry Co., Ltd. (KYB) will acquire a 75 percent shareholding in AP Amortiguadores SA (APA) currently held by ArvinMeritor. In the U.S., Kayaba is set to expand its manufacturing base at Franklin, Ind, to support growing sales of KYB shocks and struts to the North American aftermarket.