Study Shows Chinese Auto Industry Expanding, Facing Challenges
A new study released by IBM and the University of Michigan Transportation Research Institute’s Office for the Study of Automotive Transportation (OSAT) reveals the Chinese automotive industry is facing a number of significant challenges as it continues its expansion. The need to adapt to a market economy, a lack of technology and knowledge transfer from joint ventures, and infrastructure, air quality and oil supply challenges all combine to create an uncertain future for the Chinese automotive industry, according to the study.
Nine New Congressional Co-sponsors Sign on Right to Repair Act
Congressional support for the Motor Vehicle Owners’ Right to Repair Act continues to grow as nine new co-sponsors signed on to H.R. 2048 yesterday, Sept. 20, the Automotive Aftermarket Industry Association (AAIA) reported today. The proposed legislation currently has 50 co-sponsors.
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.
Manufacturing Isn’t the Only Way to Make a Buck
Just because Americans aren’t making things anymore doesn’t mean they can’t find work. Here’s a list of the five hot new jobs for 2005.
BFGoodrich Tires Announces Recall
BFGoodrich Tires is recalling 46,000 passenger and light truck tires today, after its quality system alerted the company to a condition initially affecting ride quality, but which could possibly result in steel belt separation.
Intermet Warning Triggers Sell-Off, Bankruptcy is a Threat, Says Analyst
Add one more name to the list of struggling Detroit-area auto suppliers. Troy, Mich.-based Intermet Corp., a maker of metal brake and suspension parts, has warned Wall Street that it will lose tens of millions of dollars this quarter and needs a new credit agreement from its banks to avoid bankruptcy. Intermet blamed higher-than-expected steel costs and unspecified “operational problems” at some North American plants for its financial predicament.
Liquidity Crunch Threatens Oxford
Oxford Automotive Inc. could face its second bankruptcy filing in three years if it’s not able to sell some of its assets or secure new funding in the coming months. Faced with the prospect that Oxford will default on a $16.8 million interest payment on Oct. 15 and that the Troy, Mich.-based company is in the midst of a liquidity crunch despite landing a $1.3 billion auto parts contract with Mercedes-Benz, bondholders have hired Rothschild LLC and AlixPartners LLC as financial advisers and Fried, Frank, Harris, Shriver & Jacobson LLP as its legal counsel to represent them in debt restructuring talks, sources confirmed.
Goodyear to Report 2003 4Q Results on May 19
The Goodyear Tire & Rubber Co. said it would report fourth quarter 2003 financial results, plus details of its restatement of financial results for the years 1999-2003 on Wednesday, May 19. The report will be followed by an investor conference call at 9 a.m. Robert Keegan, chairman and CEO, and Robert Tieken, executive vice president and CFO, will participate in the conference call. They will also provide an outlook for the first quarter of 2004.
Goodyear to Seek Millions in Loans
Goodyear Tire & Rubber Co., on the verge of posting its third straight annual loss, said Tuesday it plans to take on an additional $300 million in loans to fund its turnaround. The Akron, Ohio, company said it is also taking steps to follow through on a promise made last year to the United Steelworkers of America to complete a large bond sale. The sale is designed to improve the company’s strength and protect union jobs.