Delphi reassured the public this week that it remains focused on emerging from Chapter 11 as soon as possible. Our top story this week, Delphi issued a statement yesterday in response to General Motors’ filing of its turnaround plan to the U.S. government on Tuesday. The statement comes amid recent speculation that GM may buy back several Delphi plants that it owned, prior to spinning-off Delphi more than a decade ago. Delphi said it has engaged in lengthy discussions with GM recently but did not provide any specific details in the statement.
Another highly viewed story this week was the announcement that John Rutland has joined the Automotive Distribution Network (ADN) as president of Network Products and executive vice president of the association. Rutland, previously VP of corporate development for Uni-Select USA, an ADN member, said he plans to help establish Network Products as the best supplementary warehouse possible for the Network, enabling members to improve on their return on assets.
Just prior to the passage and signing of the country’s largest economic stimulus package in history, the Motor & Equipment Manufacturers Association (MEMA) and its affiliate, the Original Equipment Suppliers Association (OESA), submitted a formal request to the U.S. Department of the Treasury seeking financial assistance specifically for motor vehicle parts suppliers. The document asked for up to $25.5 billion to support three specific actions suggested to be conducted in combination with each other. The three solutions include government guarantee of supplier receivables from GM, Ford and Chrysler so that suppliers are able to use their receivables as loan collateral with traditional lenders; institution of a “quick pay” receivables program to increase supplier liquidity by accelerating accounts payable payments from GM and Chrysler to their suppliers; and government guarantees of commercial loans for supplier companies.
In other financial news, fourth quarter and full year 2008 results from Genuine Parts Co. also topped the list of most-viewed news items on AMN this week. GPC’s 2008 sales were up 2 percent to $11 billion, while 2008 net income of $475.4 million decreased 6 percent from 2007. Sales in the fourth quarter decreased 4 percent to $2.5 billion. GPC Chairman, President and CEO Thomas Gallagher commented that “2008 proved to be an interesting, as well as challenging, year for Genuine Parts Co. We are, however, pleased to report that 2008 represents another record level of revenues for us.”
Back to the news of the U.S. stimulus package, R. L. Polk & Co. has released its predictions on how the new car sales incentives included in the stimulus bill may impact auto sales this year. According to its analysis, Polk predicts that the current proposed government incentives will increase U.S. light vehicle sales by 94,000 units in 2009, providing consumers with an average rebate of $330 for each new vehicle purchased. Under a previous version of the proposal that was rejected, Polk estimates the average rebate would have been $1,250 per vehicle, and would have provided a sales boost of 359,000 units in the U.S.
