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.
Monro Muffler Brake Completes Mr. Tire Acquisition
Monro Muffler Brake has completed its previously announced acquisition of 36 leased Mr. Tire locations from privately held Mile One Automotive. The acquired locations generated approximately $50 million in sales last year. Monro said the acquisition will expand the company’s market share in the mid-Atlantic region, particularly the Baltimore market. The transaction, valued at approximately $29 million, is expected to contribute between $5 million and $6 million to Monro’s EBITDA in the first year.
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.
Hankook Premiers New Corporate Identity Program
Hankook Tire Co. unveiled a new corporate identity program during a recent presentation at its headquarters in Seoul, Korea. The new look is the latest in a series of strategic moves to build the company’s global image as a leading manufacturer and marketer of tires.
Federal-Mogul Files Disclosure Statement in Bankruptcy Case
Federal-Mogul has filed a disclosure statement and an amended plan of reorganization with the U.S. Bankruptcy Court in Delaware. Inundated with lawsuits from people claiming exposure to asbestos from products made by companies that Federal-Mogul later bought, the company filed for bankruptcy court protection in October 2001. The company has been working on plans to emerge later this year, under the control of a trust established to handle the asbestos claims.
Delphi Debuts New Ad Campaign; Aims to Bring Automotive Technology to Other Markets
Delphi has debuted a new television ad campaign aimed at showing how the company is taking automotive technology to other markets. The new campaign, created by McCann Erickson’s Detroit office, depicts how Delphi technologies can be used to benefit other industries outside the automotive arena, including medical, homeland security and computers.
Bankrupt Venture Might Sell Some Assets
Bankrupt auto supplier Venture Corp. plans to put itself up for sale to see if there is any interest in the Fraser firm’s assets or business contracts, say lawyers and others familiar with the struggling company. Venture, which makes plastic parts such as instrument panels for the auto industry, has asked the U.S. Bankruptcy Court in Detroit for permission to market the company. A hearing to get approval and determine how marketing would be handled is scheduled for March 11.
Earl Scheib Adds Two Board Directors
The board of directors for Earl Scheib Inc. has appointed James Burra and Salvatore Zizza as members. The board also accepted the resignation of Gregory Helm from the board. Helm resigned to pursue other interests. Earl Scheib is a nationwide operator of 115 auto paint and body shops throughout the U.S.
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.
Lord Corp. Opens New Michigan Facility
Lord Corp. — which makes specialty adhesives, polyurethane coatings as well as electronic, vibration and noise control solutions for the automotive market — has expanded its Detroit area facility in an effort to better serve the automotive market. Located on 4.8 acres in Wixom, Mich., the newly constructed 19,020-square-foot facility houses the company’s automotive sales office and includes a 7,736-square-foot high-technology formulation and testing laboratory, automotive aftermarket training classroom, and a garage for hands-on automotive application training.