Lear Sells $200 Million in Shares to Icahn Group
Automobile parts maker Lear Corp. has agreed to issue $200 million of common stock in a private placement to affiliates of and funds managed by billionaire financier Carl Icahn. The offering includes 8,695,653 shares of Lear common stock issued at $23 per share. Under the deal, Icahn will have the right to place a representative on Lear’s board.
The Week In Review (Aug. 21-25, 2006)
THE WEEK IN REVIEW (August 21-25, 2006) _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ ASSOCIATION & LEGISLATIVE NEWS: _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ ASA to Communicate with Members through New Blog The Automotive Service Association (ASA) is among the latest in the aftermarket industry to launch a blog website. ASA’s new blog (http://blog.asashop.org) will provide commentary and analysis about the automotive service industry
Suppliers Must Think Globally, Leaders Say; Many in Auto Parts Industry are Struggling
The Milwaukee Journal Sentinel TRAVERSE CITY, MI — To avoid becoming casualties in the auto industry’s restructuring, parts suppliers need to become less beholden to Detroit, more globally focused and focused on products that improve safety or boost fuel economy. That was the consensus of experts who reflected Tuesday on the industry tumult that has
Johnson Controls to Close 16 Plants
The Milwaukee Journal Sentinel MILWAUKEE, WI — Johnson Controls Inc. announced details of a worldwide restructuring that will eliminate 5,000 jobs and close 16 factories. The Glendale, WI-based company outlined the cost-cutting plans in a filing to the U.S. Securities and Exchange Commission. On June 30, Johnson Controls announced without elaboration that it absorbed a
Automakers Reach Out to Women Car Designers of the Future
Katie Slater, a soft-spoken, ponytail-sporting 17-year-old, is attracted to fast cars and powerful engines. As a 14-second, 100-meter sprinter at Cabrini High School in Allen Park, MI, Katie says she thinks cars should run and look as sleek and fast as her sprint.
Visteon Begins Production in Slovakia, Strengthens Manufacturing Footprint in Eastern Europe
Visteon has begun producing automotive components at its new manufacturing plant in the Slovak Republic. The company’s investment in the Nitra plant was announced in October 2004. The facility manufactures interior and climate control products and gives Visteon a manufacturing base to serve the rapidly expanding automotive market in Slovakia and Eastern Europe.
Johnson Controls Stock Hits New High: Company Predicts Higher Profits This Year
Shares of Johnson Controls Inc. surged 9 percent to an all-time high after the company said a lower tax rate and strong sales of air conditioners and automotive batteries will boost its profits this year. Net income fell $38 million, or 20 cents a share, to $165 million, or 84 cents a share, in the quarter that ended on March 31. But net income from continuing operations, which excludes restructuring costs and a tax credit, was $162 million, or 83 cents, up from $54 million, or 28 cents, a year ago. The 83 cents was higher than the 75 cents forecast by analysts surveyed by Thomson Financial First Call.
Lear Introduces New ‘Core Dimension’ Product Strategy
Lear Corp. is rethinking the way it brings products to market with a new product strategy dubbed the “Core Dimension” product strategy. The company will now introduce product and technology solutions as one of seven consumer-focused dimensions: comfort & convenience, commonization, craftsmanship, environmental, flexibility, infotainment and safety. These categories highlight dimensions of consumer emphasis where Lear believes it offers products that make vehicles more attractive to consumers and can potentially influence a purchasing decision.
Financier Wilbur Ross to Acquire Lear’s European Interior Systems Division
Wilbur Ross, chairman of International Automotive Components Group (IAC), continues to grow his automotive empire. It was announced that IAC will acquire Lear’s European Interiors Systems Division on a debt-free basis in exchange for 34 percent of the stock in IAC. IAC was recently formed by WL Ross & Co. LLC and Franklin Mutual Advisers, LLC initially to acquire for cash the principal businesses of Collins & Aikman Corp. in Europe. Ross has been making headlines over the past several months talking about his desire to create a massive automotive supply company with the global footprint to match the automakers.
Chinese to Enter U.S. Auto Market
With one humble car, a modest sedan called the Geely CK 1.5, parked Tuesday in the lobby of the North American International Auto Show, a Chinese automaker announced it’s coming to the U.S. And it has other automakers concerned, not only the now-struggling U.S. manufacturers but also those from Japan and South Korea.