Charges Add to Cooper-Standard Losses
Cooper-Standard Automotive Inc., a privately held Novi, MI-based auto supplier of body sealing and fluid handling systems, reported Wednesday that losses increased because of restructuring and acquisition costs. For the three months ended Sept. 30, Cooper-Standard lost $27 million, compared with a $1.1 million loss in the same period a year earlier. Third quarter sales were $505.5 million, up 18 percent from $426.7 million in third quarter 2005.
Martin Welch Named to Delphi Board
TROY, MI — Delphi has elected Martin Welch, 58, to its board of directors, effective today. Welch is executive vice president and chief financial officer (CFO) of United Rentals Inc., an equipment rental company located in Greenwich, CT. Welch will serve on Delphi’s Audit Committee. His election fills the vacancy created by the concurrent departure
No Shotgun Wedding for Ford and GM
It would make about as much sense as Microsoft and Apple Computer merging. Or the New York Yankees and the Boston Red Sox. Executives at Ford Motor and General Motors whispered on Monday that a report in trade publication Automotive News was on the money — that the chief financial officers of the two ailing auto giants did meet recently to discuss an alliance of some kind. It did happen. Those same executives, though, quickly added that the two sobered up, retreated to their offices, and agreed that nothing would come of it.
Advanced Accessory Systems Sells Towing System Businesses to Thule
Advanced Accessory Systems (AAS), maker of automotive roof racks and towing systems, has sold its towing system businesses in the U.S. and Europe to Thule AB of Sweden for $203 million, subject to adjustments. When the proposed transaction was announced in May, Alan Johnson, AAS president and chief executive officer, said it would "allow AAS management to concentrate all of its energies on our principal business, SportRack Automotive, which is the leading supplier of roof racks to all major original equipment automotive companies."
Metaldyne To Be Acquired by Japanese Chassis and Powertrain Supplier
Metaldyne Corp., a supplier of powertrain and chassis systems and components, is being sold to Asahi Tec Corp., a Shizuoka, Japan-based chassis and powertrain component supplier in the passenger car/light truck and medium/heavy truck segments. Headquartered in Shizuoka, Japan, Asahi Tec primarily designs, manufactures and sells ductile iron cast auto parts for truck and construction machinery OEMs, aluminum casting parts and aluminum wheels for OEMs.
Excello to Slash Half of Work Force
Automotive supplier Excello Engineered Systems of Macedonia, OH, will lay off about half of its work force in the next 45 days to offset rising raw material and medical costs. More than 70 hourly workers and 10 or more salaried workers will lose their jobs, President and CEO Larry Brehm said. Total employment at the 111,000-square-foot plant, which has been open since 1995, is about 175, he said.
2006 AFS Will Feature Breakout Sessions
The 2006 Aftermarket Financial Symposium (AFS) will feature four breakout sessions on day one of the symposium, Tuesday, Sept. 26. Participants have the opportunity to attend two of the four sessions, which will run concurrently from 3 p.m. to 3:50 p.m. and again from 4:10 p.m. to 5 p.m. Hosted by the Automotive Aftermarket Industry Association (AAIA), the 2006 AFS is scheduled for Sept. 26-27 at the Hyatt Regency O’Hare in Chicago, IL.
EaglePicher Completes Restructuring
EaglePicher Incorporated (EPI) and its U.S. subsidiaries have successfully completed their Chapter 11 restructuring process. On Aug. 1, pursuant to their confirmed plan of reorganization, substantially all the assets of EPI and its U.S. subsidiaries will be transferred to the newly formed EaglePicher Corp. (EPC) and its subsidiaries.
The Collapse of American Remanufacturers Inc: An In-depth Look at ARI’s Fall into Bankruptcy
At one time, American Remanufacturers, Inc. (ARI) was huge, with a near legendary aftermarket executive at the helm. But in the span of 25 months, the honeymoon between ARI and its new CEO Larry Pavey was more than over — it had ended in a bitter divorce that jeopardized the reputation of a respected leader, sending the company first into Chapter 11 bankruptcy, then a disastrous Chapter 7 filing that shuttered ARI’s nine businesses across North America. It left 1,600 workers without jobs, other manufacturers without product, distributors without a supplier and a question mark over the future of the remanufacturing industry in the U.S.
PART II — The Collapse of American Remanufacturers Inc: An In-depth Look at ARI’s Fall into Bankruptcy
There were certainly many internal factors that lead to the collapse of ARI. Indeed, troubled mergers and internal accounting problems are not new in business. But for the industry at large, ARI’s story poses broader questions about foreign competition and the market’s ability to adapt to today’s rapidly changing global dynamics.