German Auto Parts Makers Tour Southern U.S. Sites
Ten executives from German companies that serve the automotive industry are in Charlotte, N.C., and upstate South Carolina this week to investigate expansion sites. While rushing to expand in China, German automotive companies still consider the U.S. the most attractive market, in large part because BMW, Mercedes-Benz, Porsche and Audi continue to increase sales here.
Small is Satisfactory: Dura Builds a Niche
So it’s not as big as Delphi. It doesn’t employ as many as Lear. But Lawrence Denton, chief executive for Dura Automotive Systems Inc., says he’s satisfied with his company’s size. Dura, he says, is just better off being small.
Pep Boys to Offer Shares of Its Common Stock
Pep Boys has commenced a public offering of 4,250,000 shares of its common stock (with up to an additional 637,500 shares to cover over-allotments, if any). The company said it intends to use the net proceeds from the offering for repayment of borrowings and store redesigns.
American Axle Pact Ratified; Supplier Gets the Right to Negotiate 2-Tier Wages
UAW members ratified a four-year contract with American Axle & Manufacturing Inc., after a one-day strike late last month that disrupted General Motors Corp. truck production. About 68 percent of the employees voted for the contract, the union said Monday. About 68 percent of the employees voted for the contract, the union said Monday.
Pep Boys Reports Fourth Quarter, Full Year Results
The Pep Boys has posted results for the fourth quarter and fiscal year, which ended January 31. Sales for the thirteen weeks were $529,639,000, 13.6 percent higher than the $466,192,000 recorded last year. Comparable merchandise sales increased 15.9 percent and comparable service revenue increased 5.1 percent.
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.
CARDONE Industries Accepted into EPA’s National Environmental Performance Track Program
Automotive parts remanufacturer CARDONE Industries has been accepted for membership in the Environmental Protection Agency’s (EPA) National Environmental Performance Track Program. Performance Track rewards facilities that voluntarily exceed regulatory requirements, implement environmental management systems, work closely with their communities and set three-year goals to continuously improve environmental performance.
CARDONE Industries Named O’Reilly Auto Parts 2003 Vendor of the Year
CARDONE Industries was recently named “2003 Vendor of the Year” by O’Reilly Auto Parts. CARDONE is a leading supplier of remanufactured automotive products, including a full line of brakes, drivetrain, electronics, motors, pumps and steering. CARDONE was selected for the award based on its high service levels, including effective sales support, ease of business and high order fill, according to the company.
American Axle Strike Causes GM to Idle Plant
In a move that already is rippling through the auto industry, about 6,500 UAW auto-parts workers hit the picket lines Thursday morning at American Axle & Manufacturing Inc. in Detroit and other cities. A 4-year contract with UAW members at American Axle, one of the world’s largest auto suppliers, expired at midnight Wednesday and the two sides could not reach a tentative agreement. By late Thursday the strike already was affecting General Motors Corp., American Axle’s biggest customer and former owner.
“Got Milk?” Promotion Found to be Illegal; Effect on TIA’s Tire Industry Checkoff Program Uncertain
On Feb. 24, a federal appeals court ruled that the familiar “Got Milk?” dairy promotion violates the First Amendment by forcing all farmers to pay for the ads, whether they agree with the ads or not. The 3rd U.S. Circuit Court of Appeals in Philadelphia ruled that federal laws requiring dairy farmers to pay fees to promote the industry infringe “free speech and association rights.” The decision could have serious ramifications for the tire industry, especially with regard to the Tire Industry Association’s (TIA) ongoing support and formal proposal for a tire industry checkoff program.