Universal Automotive Acquires Three Brands from TRW Automotive’s Kelsey-Hayes Subsidiary
Universal Automotive has purchased several business assets of TRW Automotive’s Kelsey-Hayes subsidiary. The Livonia, Mich.-based businesses sold for $11 million in cash plus additional contingent payments. Universal has acquired the Autospecialty, ValuMaxx and Power Stop brands from Kelsey-Hayes. It also has entered into a licensing agreement for the use of the TRW trademark for premium quality brake rotors and drums and a supply agreement for TRW suspension products.
Starcraft Shareholders Approve Merger With Wheel to Wheel, Tecstar
Shareholders of aftermarket and OEM supplier Starcraft Corp. have voted to approve a proposed merger agreement with Troy, Mich.-based Wheel to Wheel, Inc., an automotive engineering and design business. The transaction has received all required regulatory clearance and the merger is expected to close by the middle of January. In 1988, Starcraft and Wheel to Wheel jointly formed Tecstar, which provides and installs appearance enhancement items on vehicles provided by and returned to an original equipment manufacturer. The new agreement calls for Starcraft to acquire the remaining 50 percent ownership of Tecstar LLC and Tecstar Canada that it does not currently own by acquiring closely held Wheel to Wheel. The transaction merges Wheel to Wheel into a newly created subsidiary of Starcraft, which will exchange Starcraft common shares for shares of Wheel to Wheel.
Aftermarket Legislative Advocate Passes Away
A long-time friend of the aftermarket, Jack Heyler, died on Dec. 26, 2003 after a six-year battle with emphysema. Heyler was a tireless worker in support of the independent aftermarket, leading industry efforts to defeat legislation that would have extended state mandated emissions warranties to 10 years/100,000 miles; and to obtain passage of SB 1146, which mandated that car companies make emissions-related service information and diagnostic tools available to the independent service industry. He was active in the Automotive Service Counsels of California and the Society for Automotive Engineers, helping found the Service Technicians Society a SAE affiliate group.
Visteon Projects Profit After Losses
Visteon Corp. expects to earn a small net profit this year after losing at least $1.6 billion from 2001 to 2003, executives said Thursday. If Visteon turns a profit this year, it would be the first since 2000, the year the auto parts maker separated from Ford Motor Co. In a briefing for Wall Street analysts in conjunction with the North American International Auto Show, Visteon laid out its financial expectations for the first time in at least a year.
Automotive Market Research Council Begins 2004 Light Duty Aftermarket Forecasting Project
The Light Duty Aftermarket Committee of the Automotive Market Research Council (AMRC) has begun research for its annual aftermarket product forecasting project. The project gathers market information, both in dollars and units, for 11 different product lines and systems. Each year the light duty aftermarket project establishes demand trends by product line and for the light duty aftermarket overall, including a three-year dollar forecast by product and a review of market issues impacting sales.
Hayes Lemmerz Announces Agreement with Strick
Hayes Lemmerz International’s commercial highway division has reached a new supply agreement with Strick Corp. Hayes Lemmerz will supply 100 percent of all standard, non-specified, wheel end components for Strick in 2004 and 2005. This includes CentruMount steel wheels, cast hub and drums and Centrifuse brake drums.
MEMA Names New Director of Finance and Administration
Wendy Earp has been promoted to director of finance and administration for MEMA. She formerly served as the association’s controller, a position she has held since May 2001. Earp succeeds Joseph “Joe” Griscti, who is retiring after 22 years of service to the association and industry.
Auto Executives Don’t See Big Profit Rise Until 2006, KPMG Study Reveals
The global automotive industry is not expected to return to peak profitability levels until at least 2006, according to the results of an annual global survey by KPMG, an audit, tax and advisory firm. However, automotive executives indicate the worst is behind them, citing 2003 as the worst year for profits in the half-decade, KPMG said. KPMG’s fifth annual survey, conducted in October and November 2003, polled 100 American, Asian and European automotive executives from 19 automakers and from 49 Tier 1 and 32 Tier 2 suppliers.