Publisher Buys J.D. Power
James Dave Power III, who has spent more than half his life building an idea into a trusted company that provides information to consumers and companies — especially about automobiles — agreed Monday to sell his research firm to the behemoth McGraw-Hill Cos. Inc.
Standard & Poor’s Lowers C&A’s Rating
Collins & Aikman Corp.’s debt rating, already below investment grade, was lowered one level by Standard & Poor’s Thursday because of production cuts by the auto-parts maker’s customers and rising costs of materials such as plastics.
Yellow Roadway to Acquire USF Corporation
Yellow Roadway Corp. has entered into a definitive agreement to acquire USF Corp. The acquisition, which is expected to close in summer 2005, will further advance Yellow Roadway as one of the leading transportation services companies in the world. The combined enterprise is expected to have annual revenue in excess of $9 billion, with more than 70,000 employees and 1,000 service locations.
S&P Cuts Cooper Tire to Near Junk with Stable Outlook
Standard & Poor’s has downgraded its credit rating on the Cooper Tire & Rubber Co. to one level above junk status but with a “stable” outlook.
Class Action Bill Passes Both House and Senate, Signed into Law
The House of Representatives has followed the Senate’s lead and passed legislation that proponents hope will protect businesses from massive class action lawsuits. By a 279-149 vote, the House approved the same measure that won Senate approval on Feb. 10.
U.S. Steel Market in Crisis: MEMA Report
A new research report by the Motor & Equipment Manufacturers Association (MEMA) suggests that government intervention in the U.S. steel market has caused a cost crisis that is hurting automotive and heavy-duty suppliers across the country. The MEMA report says that the result has been “unprecedented bankruptcies and job losses.”
Goodyear May Restructure NA Tire Division
The Wall Street Journal reported Friday morning Goodyear Tire & Rubber Co., facing mounting debt pressure and stiffening global competition, may be looking to restructure its North American Tire division, an effort that could include plant closures, layoffs and shifting of tire production overseas. Goodyear officials, according to the WSJ story, said no decisions had been made, and that any restructuring talk was part of larger strategies to reduce debt and improve its cost structures.
CTNA Drops Sponsorship of Continental Tire Bowl; Meineke Takes Over Sponsorship
Continental Tire North America (CTNA) has dropped its sponsorship of the Continental Tire Bowl, ending a three-year run as title sponsor after its contract with Raycom Sports ended Dec. 30, 2004. The Continental Tire Bowl, held in CTNA hometown of Charlotte, N.C., had been a showcase promotional event for the tiremaker. Meineke Car Care Centers, also based in Charlotte, signed on to take over title sponsorship of the event, which has been renamed the Meineke Car Care Bowl. Financial terms of the three-year contract were not disclosed.
PPG Names Morales Director of Investor Relations
Vince Morales has been named director of investor relations for PPG Industries. Morales has 20 years of finance and financial management with the company. Morales started with PPG in 1985 as an accounting trainee in the corporate controller’s department at the company’s headquarters. He transferred in 1989 to PPG’s shared financial services center in Chillicothe, Ohio, and progressed through a series of financial assignments supporting the glass, fiber glass and coatings businesses.
Delphi Plans More Job Cuts
Delphi Corp. said Friday it plans to cut 8,500 jobs, or 4.6 percent of its workforce, worldwide next year as part of an ongoing restructuring. The world’s largest automotive-parts supplier also expects to lose $350 million as it struggles with lower vehicle production and rising commodity prices. The Troy, Mich.-based company had a similar goal for global job reductions in 2004 and exceeded it through attrition, retirements and job transfers. In the first nine months of 2004, Delphi trimmed between 9,100 and 9,200 jobs, spokeswoman Claudia Baucus said.