FMC
NEWS RELEASE
Archives
May 31, 2007
Herman
Trend Alert: Healthcare Costs Out of Control
Aftermarket
News - News Extras
GREENVILLE, SC -- While the cost of living in the United States rose by a mere 3.3 percent, healthcare costs for an average U.S. family of four increased by 8.4 percent from 2006 to 2007. The good news is, as we forecast last year, the increase has slowed a bit, though most would agree, not enough. This reduction is a welcome slowing from the 9.3 percent average annual rate of increase between 2003 and 2007.
According to the third annual Milliman Medical Index (MMI), the average healthcare cost for a typical family of four in the United is now $14,500 for the year 2007. This amount represents an increase of $1,118 over the preceding year. The MMI, released for the third year in a row, tracks the changes in average yearly healthcare costs for a family of four covered by an employer-sponsored Preferred Provider Organization (PPO). It is based on analysis of historical claim data and understanding of trends in provider contracting. Milliman is one of the leading global consulting and actuarial firms...more
Southeast U.;S. Automotive Research Initiative Unveiled
Aftermarket News - News Extras
NASHVILLE, TN -- Seven of the Southeast's most prominent universities, along with the National Transportation Research Center, Inc. (NTRCI), the Oak Ridge National Laboratory (ORNL) and the Tennessee Valley Authority (TVA), have launched the Automotive Research Alliance (ARA).
The ARA will provide a broad range of research resources to automotive manufacturers and suppliers, including technology and manufacturing solutions as well as academic and training programs...more
Fighting for the Right to Make Big Cars
BusinessWeek.com
It's an all-American scene: Two men discussing buying a new pickup truck, presumably somewhere in the heartland. After a little chit-chat, talk turns to government regulations. "[Congress] wants to set the same fuel economy standards for pickup trucks as they use for cars," says a male voice in the radio advertisement, following the sound of a truck engine and clucking chickens. "When you buy that new pickup it's gonna really jack up the price."
The ad is part of a campaign by the Alliance for Automobile Manufacturers (the Alliance), an automakers trade group, to win popular support in their battle against tighter government regulations over fuel efficiency. The radio spots, which kicked off Memorial Day weekend, are designed to appeal to SUV- and truck-loving consumers, warning that possible new laws could raise prices for trucks and make it harder for safety-obsessed families to get bigger cars. The ads come as Congress is considering a bill calling for the first major boost to car fuel economy since 1975...more
May 30, 2007
Bill
to Expand R&D Tax Break Divides Supporters
The
Wall Street Journal
Congress is considering a major increase in the multibillion-dollar tax break for corporate research, but a proposal to change how the credit is calculated is prompting an unusual split among its beneficiaries.
The boost would follow Congress's expansion in December of the "Research & Experimentation" tax credit, which gives companies a credit on their tax bills for part of their research-and-development spending. That version increased the annual subsidy to an estimated $9.3 billion from $7.3 billion, chiefly by adding a new formula for calculating the credit...more
Toyota, BMW Show Deft Touch with Suppliers' Innovations
Automotive News
NASHVILLE -- Toyota, BMW and Honda are the most effective North American automakers in encouraging and implementing suppliers' innovations, according to the suppliers themselves.
And suppliers tend to offer their best innovations to automakers that are most likely to use - and pay for - them...more
Growing Volvo Rumble Hits Ford
the Wall Street Journal
DETROIT -- As Ford Motor Co. considers its options concerning its portfolio of assets, questions are growing over the fate of its Volvo unit.
Ford said it isn't in talks with any party, including BMW AG, to sell Volvo, of Sweden. The company was responding to reports that the two auto makers had been in talks regarding the Volvo unit.
Earlier in 2007, BMW signaled interest in acquiring at least a stake in Volvo, according to people familiar with the German auto maker's situation. But these people said BMW interest has cooled...more
Cheaper Form of Ethanol on the Way
Detroit Free Press
Ethanol could become a more practical fuel for Americans who would like to slow the pace of global warming and their dependence on foreign oil, if one Michigan State University professor's predictions about ethanol production are accurate.
MSU professor Bruce Dale says the cost of so-called cellulosic ethanol -- a form of ethanol produced from nonfood plant materials -- could be cut in half, to about $1.30 per gallon by 2012, and fall below $1 per gallon by 2020. Dale said it costs about $2.20 per gallon to produce gasoline at current oil prices...more
Gas Prices: 'We're on the Verge of Real Relief'
USA Today
The average price of gasoline fell nearly a penny the past week to $3.209 a gallon, the government reported Tuesday, the first drop in its nationwide average in five weeks.
The decline tracks recent drops reported separately by travel organization AAA, which said the U.S. average Tuesday was $3.201, down from the nominal record of $3.227 that AAA posted Thursday. The government says the inflation-adjusted record is $3.292, today's equivalent of $1.417 in 1981...more
Auto Industry Plots Counterattack against calif. CO2 Rules
Automotive News
WASHINGTON -- Automakers are going back on the offensive against attempts by states to have their own limits on greenhouse gas emissions from cars and trucks.
The Alliance of Automobile Manufacturers said Tuesday that California regulators and their allies in other states have misled the public about the costs and benefits of their greenhouse gas rules. California and 11 other states seek a 30 percent cut in vehicle emissions, mainly carbon dioxide, by 2016. They say the cut will help fight global warming...more
May 29, 2007
1,540
Supplier Jam Comments Distilled to 3 Priorities
Automotive
News
IBM Corp. and the Original Equipment Suppliers Association have funneled 1,540 online comments made during the Automotive Supplier Jam in March into three auto industry priorities.
Now, with the help of some key Tier 1 supplier executives, those priorities will be transformed into action plans for automakers and suppliers. The three priorities are:..more
North Korea to be Asia's Next Lowcost Production Base?
AutoBeat Asia
South Korean companies increasingly are setting up operations across the border in North Korea’s Kaesong Industrial Park to cut costs and improve ties with the volatile neighboring country, Business Week observes.
The industrial park is operated by a South Korea-run committee under a 50-year lease that began in 2004 with the help of Hyundai Group...more
New Emissions Rules Will Boost GDI Sales
Automotive News Europe
Makers of gasoline direct-injection systems expect to benefit greatly from toughening emissions rules.
“In view of the CO2 discussion, we see GDI picking up,” said Bernd Bohr, Bosch’s auto division head. “Today we have about 800,000 to 900,000 units in western Europe. We expect that to rise in to about 2 million units by 2010. That’s 28 percent of the market for gasoline engines.”..more
Advance Auto Parts Murray Executive Vice President, Merchandising
Associated Press
ROANOKE, Va. -- Advance Auto Parts Inc., a retailer of automotive aftermarket parts, said Friday it named Elwyn G. Murray III as executive vice president, merchandising, supply chain and technology, effective immediately.
Murray, who joined the company in April 2005, was most recently executive vice president, administration.
In conjunction with the move, Dave Mueller has resigned as executive vice president, merchandising and marketing. Mueller joined the company in March 2003 and has held his current position since November 2004.
U.S. Electric Vehicle Research Funded
Aftermarket News - News Extras
WASHINGTON -- The U.S. Department of Energy has selected five next-generation vehicle research projects to share $19 million in government funding.
The projects are designed to further development of hybrid electric vehicles and fuel cell vehicles. Combined with industry cost sharing, the selected projects will receive total funding of nearly $34 million, officials said.
The projects will focus on reducing the cost, weight and size of electric drive and power conversion devices, while increasing vehicle efficiency.
The winning projects were submitted by Delphi Automotive Systems in Troy, MI; Virginia Polytechnic Institute of Blacksburg, VA; General Electric Global Research of Niskayuna, NY; the General Motors Corp. in Torrance, CA; and the U.S. Hybrid Corp. of Torrance, CA.
May 25, 2007
WIX
Filters Celebrates 40 Years in Racing
Aftermarket
News - Racing and Performance News
GASTONIA, NC – WIX Filters, part of Affinia Group’s family of brands, is celebrating 40 years in racing. To recognize the milestone, WIX will introduce a commemorative logo during Memorial Day weekend NASCAR events and make a special charitable donation in the name of the driver that leads the 40th lap of the Coca-Cola 600.
WIX Filter’s history in racing begins with racing legend Richard Petty, who began using WIX filters in his stock car engines in 1967. In 1968 WIX became an industrial member of the National Association of Stock Car Racing. Since then, a growing number of teams each year have used WIX filters to guard their engines from contaminants, and today nearly 100 percent of NASCAR race teams depend on WIX to keep their engines free from dirt, grime and dust on race day, according to the company...more
Chinese Auto-Parts Companies See Open Road at Home, Abroad
Wall Street Journal
SHANGHAI, China -- Investors looking to place a bet on China's move up the manufacturing ladder, from low-tech, labor-intensive goods to more-sophisticated -- and profitable -- products, should consider the country's burgeoning auto-parts industry.
Stocks of Chinese component makers are poised for a significant upturn, analysts say, fueled by stabilizing raw-material costs, booming domestic demand for cars and rapidly growing exports as Chinese companies become suppliers for the world's largest auto makers...more
Shares of Pep Boys Rise on Upgrade
Associated Press
NEW YORK -- Shares of Pep Boys -- Manny, Moe & Jack on Thursday regained some of the previous day's losses after a Morgan Joseph analyst said the auto parts retailer is transforming into a more profitable service company.
The Philadelphia-based company's stock fell 5.6 percent Wednesday after Pep Boys reported a decline in quarterly sales to $546 million. Pep Boys, which operates almost 600 stores, said sales of power equipment and tires slipped...more
Volvo Says Truck Deliveries Fall
Associated Press
STOCKHOLM, Sweden -- Swedish truck and bus maker AB Volvo said Thursday that total deliveries from its three truck companies fell 17 percent in April, hurt by a 57 percent drop in the United States.
Volvo said in a statement that it delivered a total of 60,536 trucks in the first four months of the year, compared with 72,661 in the same period the previous year...more
May 24, 2007
Filter
Sales Expected To Grow 3.2%
SEMA
3NEWS
The future of filters appears to be heading in a good direction, according to a new study from The Freedonia Group, Inc. A recent Aftermarket Business article states that filter shipments are projected to advance 3.2% annually through 2011 to $10.9 billion. Gains will be driven by ongoing sales in the aftermarket, which accounts for the vast majority of demand. Advances will also be spurred by pending changes in environmental regulations, particularly those involving cleaner air and a reduction in diesel engine emissions. Manufacturers’ increasing interest in reclaiming production inputs from process water and investing in water-recycling processes to reduce costs will also drive demand for filters.
Additionally, advances will be aided by an increasing penetration of newer products, particularly motor-vehicle cabin air filters, many varieties of home air and water filters and the development of a significant aftermarket within these segments. These and other trends are presented in “Filters” a new study from The Freedonia Group, a Cleveland-based industry research firm...more
COMMENTARY: John Stossel, Townhall.com: The Many Myths of Ethanol
Townhall.com
No doubt about it, if there were a Miss Energy Pageant, Miss Ethanol would win hands down. Everyone loves ethanol. "Ramp up the availability of ethanol," says Hillary Clinton. "Ethanol makes a lot of sense," says John McCain. "The economics of ethanol make more and more sense," says Mitt Romney. "We've got to get serious about ethanol," says Rudolph Giuliani. And the media love ethanol. "60 Minutes" called it "the solution."
Clinton, Romney, Barack Obama and John Edwards not only believe ethanol is the elixir that will give us cheap energy, end our dependence on Middle East oil sheiks, and reverse global warming, they also want you and me -- as taxpayers -- to subsidize it...more
U.S. Carbon Emissions Fell 1.3 Percent in 2006
Washington Post
U.S. carbon dioxide emissions dropped slightly last year even as the economy grew, according to an initial estimate released yesterday by the Energy Information Administration.
The 1.3 percent drop in CO2 emissions marks the first time that U.S. pollution linked to global warming has declined in absolute terms since 2001 and the first time it has gone down since 1990 while the economy was thriving. Carbon dioxide emissions declined in both 2001 and 1991, in large part because of economic slowdowns during those years...more
Stricter Fuel Rules Linked to Bundle of Bills on Energy
Detroit Free Press
WASHINGTON -- Senate Democrats said Wednesday they would start debating in the second week of June a package of energy bills that includes a sharp increase in fuel economy standards and penalties for gas-price gouging.
For Detroit automakers, the move by Senate Majority Leader Harry Reid, D-Nev., to wrap fuel economy increases into a bundle of popular energy proposals adds to their burden in slowing congressional momentum for tougher efficiency rules on their cars and trucks...more
May 23, 2007
Franchise
Capital Corp. Announces Rollout of New Aero Exhaust Products
Aftermarket
News - Parts and Accessory News
TEMECULA, CA -- Franchise Capital Corp. has announced the rollout of new products in the Aero Exhaust line of automotive performance exhaust systems, which the company is in the process of acquiring.
Aero Exhaust mufflers are an exclusive NASCAR Performance product and carry the prestigious NASCAR brand on product, packaging and related media.
According to the company, prototypes for several new products have been completed and are currently being tested. Aero is planning to rollout in June the first of these products, which range from a complete line of direct fit mufflers to full turbo and cat-back systems...more
DENSO Announces New Service Training Programs for Technicians
Aftermarket News - Parts and Accessory News
LONG BEACH, CA. – DENSO Sales California announces the addition of four new service training seminars for technicians including Hybrid Vehicle Safety and Service (HVS), Advanced Scan Tool Diagnostics (AST), Honda and Acura Engine Performance (HEP), Nissan and Mitsubishi Engine Performance (NEP).
These four new classroom-style seminars will focus on “best practices” concerning service, diagnostic and repair. Tips to help reduce diagnostic time and increase first-time repair success are interwoven throughout the training, which can be conducted in either an all-day format or two consecutive evenings totaling approximately 8 hours of instruction each...more
Pep Boys Swings to 1Q Profit on Gains
Associated Press
PHILADELPHIA -- Automotive retail and service chain Pep Boys -- Manny, Moe & Jack said Tuesday it swung to a first-quarter profit, despite lower same-store and overall sales.
Excluding the cumulative effect of a change in accounting principles, the company earned $3.2 million, or 6 cents per share, compared with a loss of $867,000, or 2 cents per share, during the same period a year before.
Revenue fell to $546 million from $556.6 million...more
Some in Industry Favor California CO2 Rules
Automotive News
WASHINGTON -- Not everyone in the auto industry is opposed to letting California and other states have their own greenhouse gas emissions rules for cars and trucks.
Dealer Adam Lee, who heads a 12-franchise group in Maine, testified at a U.S. EPA hearing in favor of a waiver for California to implement its own rules...more
New York Cabs to Go Hybrid
Associated Press
NEW YORK -- The city's fleet of yellow cabs will go entirely hybrid within five years, and all its vehicles for hire will have to meet new emissions and mileage standards by next year, Mayor Michael Bloomberg announced Tuesday.
Today, there are just 375 fuel-efficient hybrid vehicles among the 13,000 taxis rolling on city streets. That number will increase to 1,000 by October 2008 and will grow by about 20 percent each year until 2012, when every yellow cab will be a hybrid...more
COMMENTARY: David Welch, Business Week: How Cerberus Makes Its Money on Chrysler
BusinessWeek.com
The private equity giant may be sincere in its desire to revive the U.S auto industry, but its real interest is making a lot of money. The early rhetoric about Chrysler's sale to private equity firm Cerberus Capital Management tugs at the heartstrings.
Cerberus Chairman John Snow said in an interview that American manufacturing is vital and that Cerberus would like to play a role in saving it. Sources close to Cerberus founder and CEO Stephen Feinberg, who gives few interviews, say he owns a Ford (F) pickup and has a vision to restore America's prominence in the auto industry. "Speaking as an American, [Feinberg] and I wouldn't be alone in being delighted to see this icon of American industry return to American ownership and thrive," says Snow...more
May 22, 2007
R.
L. Polk & Co's Ask the Industry Looks at the Increased Selling and
Buying of Outsourced Products
Aftermarket News - Ask The Industry
The words “offshoring” and “outsourcing” are loaded terms that can touch a nerve with some in the automotive aftermarket. The idea of manufacturing or importing product from overseas brings up questions about quality, safety and intellectual property, not to mention concerns over the loss of U.S. manufacturing jobs. However, for many in the aftermarket, outsourcing is starting to lose its stigma; not everyone in the aftermarket still sees outsourcing as a dirty word.
According to Chris McKenzie, director of marketing for Penray, this U.S.-based automotive and heavy duty chemicals manufacturer purchases nearly 100 percent of its supplies from other American businesses, however he knows his company isn’t immune to changes in the marketplace...more
AutoZone Third Quarter Sales Increase 4 Percent
Aftermarket News j- Distribution & Service News
MEMPHIS, TN – AutoZone has reported net sales of $1.474 billion for its third quarter (12 weeks) ended May 5, an increase of 4 percent from fiscal third quarter 2006. Domestic same store sales, or sales for stores open at least one year, increased 0.4 percent for the quarter.
Net income for the quarter increased 5 percent over the same period last year to $151.6 million, while diluted earnings per share increased 15 percent to $2.17 per share from $1.89 per share reported in the year-ago quarter...more
Dave Lundstedt to Retire From Honeywell CPG, Chris Stephens Named Successor
Aftermarket News - Personnel News
DANBURY, CT – Honeywell has announced the retirement of its Consumer Products Group (CPG) President, Dave Lundstedt. He will be succeeded by Chris Stephens, currently the vice president and chief financial officer of Honeywell Transportation Systems.
Honeywell CPG is a $2 billion global business within Honeywell Transportation Systems with six premium automotive brands and approximately 7,500 employees. The six brands include: Autolite spark plugs, Bendix aftermarket brake products, FRAM oil, air, transmission and fuel filters, Holts car care products, Jurid brake products and Prestone antifreeze/coolant and car care products...more
From Counterman.com: The Best Bang for Your Buck
Aftermarket News - News Extras
Whether you’re purchasing parts for inventory, purchasing accessories or purchasing supplies of any kind, you are no doubt dealing with one or more vendors. Depending on the vendor you are dealing with, they may offer a discount for early payment, customarily known as a trade credit. The best return on your investment for whatever you happen to be purchasing is, most likely, this discount or trade credit.
The trade credit is offered by vendors when they can’t afford
to carry accounts for long periods and prompt payment is critical to
their cash flow, or when they simply want to induce the customer to
pay within 30 days. Owners of small parts stores who are making relatively
minuscule purchases from vendors offering trade credits may not deem
it worthwhile to pursue the credits. Don’t, however, rule out
examining the return potential before making any decision. Those owners
or managers of large distributors that make consistent and significant
purchases certainly would benefit from such credits if they aren’t
already taking advantage of them. In any case, all owners and managers
should examine such purchases and discuss the issue with their accounting
office...more
Clean Diesel Signs Deal With Robert Bosch
The Detroit News
Clean Diesel Technologies Inc, a U.S. maker of fuel catalysts for cutting engine emissions, signed a licensing deal with Robert Bosch GmbH , the world's top auto-parts maker. Shares rose to the highest in almost 2 1/2 years. Stuttgart, Germany-based Robert Bosch will use technology patented by Clean Diesel to supply components that control nitrogen oxide emissions and boost fuel efficiency in truck engines, Stamford, Conn.-based Clean Diesel said Monday in a statement. The company didn't specify the value of the agreement. Revenue from the contract will make a "significant" contribution to 2007 earnings, said Timothy Rogers, vice president of the company's international division.
May 21, 2007
Turning
an 'Invisible Giant' Into a Giant Leader in Washington
Aftermarket
News
WASHINGTON, DC -- In its 2007 report, "Motor Vehicle Suppliers: The Foundation of U.S. Manufacturing," the Motor & Equipment Manufacturers Association (MEMA) dubbed the automotive aftermarket supplier industry an “invisible giant" for its quiet, behind-the-scenes impact on the U.S. economy. And when you consider that MEMA’s study shows that the automotive supplier industry, virtually unknown to the average consumer, contributes 4.5 million private industry jobs and $253 billion in annual compensation to the nation's economy, invisible giant seems like an apt moniker.
One hundred and thirty senior executives from the automotive and heavy-duty industries gathered in Washington, DC, last week to meet with members of Congress and educate legislators on just how much of an impact this industry has in the United States. The attendees of MEMA’s 2007 Legislative Summit set out not only to educate U.S. legislators on the issues that are affecting aftermarket suppliers today, but also raise the image of the industry and turn that ‘invisible giant’ into a leading player on Capitol Hill...more
Executive
Interview with Jeff Stauffer, Senior Vice President of Global Group
Marketing for Affinia Group, Inc.
Aftermarket
News
ANN ARBOR, MI -- This week we hear from Jeff Stauffer, senior vice president of global group marketing for Affinia Group, Inc. Prior to joining Affinia in September 2006, Stauffer was vice president of marketing for the consumer products division of Old World Industries. In that position he managed all aspects of product development and brand management for a diverse portfolio of products, including PEAK Antifreeze and Mr. Clean Auto Care. Before moving to Old World in 1997, Stauffer had worked at Moog Automotive/Cooper Industries for 13 years. He began his career at Tenneco Automotive in 1976. His 30 years in the aftermarket also have included extensive experience in sourcing, research, sports marketing, public relations, advertising, as well as category management.
Stauffer is a board member of the Automotive Sales Council and has served on the AAIA Marketing and Membership committees. He earned a B.B.A. degree in Business Management and Accounting from Northwood University, where he serves on the Board of Governors for Michigan and the Automotive Aftermarket Advisory Council.
Join us as Stauffer shares with aftermarketNews some of his branding philosophies and some of the key strategies behind Affinia’s restructured marketing organization...more
Supplliers See Specter of Card Check in GOP Decline
Automotive News
WASHINGTON - Some supplier executives await the end of President Bush's term with anxiety.
They're concerned that a future president and Congress may enact a law that would make it easier for labor unions to organize workers with a system known as the card check. Under the system, workers can approve a union by signing cards, without holding a secret-ballot election.
It is unlikely a card check bill will be enacted this year or next. Still, suppliers had the issue on the agenda last week at their fourth annual Washington summit. It was a topic at meetings with lawmakers, along with fuel economy, health care and parts counterfeiting...more
Will the Chrysler Affect What People Drive?
The Wall Street Journal
Most of us only buy cars, not car companies. So what does it matter to ordinary car shoppers who owns Chrysler?
That's a question that doesn't get a lot of attention in the hurly-burly of covering a big business deal such as Cerberus Capital Management LLC's agreement to buy 80.1 percent of Chrysler from its German parent, the company formerly known as DaimlerChrysler AG. (The first benefit to society from this deal: We no longer have to write or read the name DaimlerChrysler. It'll just be Daimler.)
For most consumers outside of Chrysler's Southeast Michigan base, "it means zero," says Jason Vines, chief spokesman for Chrysler. Customers care about how they are treated by dealers, he says, and they want to know that a car maker will be around long term to back up a purchase. Vines says research he's seen, and his own experiences, tell him that for the vast majority of Americans Chrysler's big deal is no big deal...more
May 18, 2007
ArvinMeritor
Wraps Emissions Unit Sale
Associated
Press
TROY, Mich. -- Automotive parts supplier ArvinMeritor Inc. said Thursday that it completed the sale of its emissions technologies business to a New York-based equity investment firm for about $310 million.
The sale to One Equity Partners includes cash and other consideration, including specified assumed liabilities, ArvinMeritor said...more
Advance To Intensify Its Focus on the Hard Parts Business
Automotive Week/The Greensheet
There are a lot of changes taking place at Advance Auto Parts. Out as chief executive is Mike Coppola. Enter Jack Brouillard, who has relinquished his position as lead director to take on the role of interim chairman, president and CEO. Meanwhile, the Roanoke, VA-based retailer is beginning to implement initiatives identified during its recently-completed strategic review.
During a conference call this week, the company gave analysts a peek at some of Advance’s initiatives for the next several months. To start with, management is not happy with the company’s recent sales trends and is looking at ways to drive both DIY and commercial sales. Along these lines, Advance plans to intensify its focus on the hard parts business...more
Southerners Unite to Go after Auto R&D
Automotive News
A potentially powerful alliance of federal research, economic development and southern university interests has been formed in a bid to lure the U.S. auto industry's r&d work to the South.
The Automotive Research Alliance, which was unveiled Wednesday, May 16, in Nashville, is being billed as a central clearinghouse for technological research in five Southern states...more
May 17, 2007
STB
Ends Antitrust Immunity for Trucking Rate Bureaus
Transport
Topics
The Surface Transportation Board has revoked the authority of motor carriers to engage in collective ratemaking and freight classification, a decision that could dramatically alter the way many motor carriers set freight rates, said transportation industry officials.
The board ruled that collective ratemaking results in an “inevitable . . . reduction in competition” and said the removal of antitrust immunity would “encourage fair competition and reasonable rates by motor carriers.”
The STB decision is effective Sept. 4...more
Automotive Suppliers Arrive in Washington
WASHINGTON, D.C. -- 130 top level executives from aftermarket, heavy duty and original equipment suppliers attended the Motor & Equipment Manufacturers Association’s (MEMA) 4th Annual Legislative Summit in Washington, D.C., which began Wednesday, May 16 and will wrap up on Thursday, May 17.
The Summit began with the keynote address by Dave McCurdy, president,
Alliance of Automotive Manufacturers who urged members of Congress to
tour automotive manufacturing facilities. By doing so, they would be
able to “see first-hand how much technology is involved in today’s
vehicles.” He concluded his speech by saying “the hot issues
for this session of Congress will be climate change, energy security
and fuel efficiency.”..more
Magna Looks for New Customers in Austria
Automotive News
Magna International Inc. says it talking with other automaker customers about assembling vehicles at its Graz, Austria, plant now that BMW AG is moving production of its X3 crossover to the United States.
Norbert Reithofer, chairman of BMW's Board of Management, said Tuesday, May 15, that the next-generation X3 would be built at BMW's plant in Spartanburg, S.C., as part of a plan to boost U.S. production capacity from 140,000 units to 200,000 units annually...more
May 16, 2007
United
Components Reports Results of Operations for First Quarter
Aftermarket
News
EVANSVILLE, IN -- United Components, Inc. (UCI) has announced results for the quarter ended March 31. Revenue of $238.8 million increased $24.3 million over the year-ago quarter, including $24.3 million in sales by water pump manufacturer ASC Industries, which was acquired by UCI during the second quarter of 2006. On a comparable basis (excluding ASC sales in 2007 and the non-recurring effects of obtaining new customer business in both years), revenue increased by approximately 5 percent from the year-ago quarter. On this basis, the company reported revenue increases in the retail and heavy duty channels and declines in the OEM, traditional and original equipment service channels.
Net income from continuing operations for the quarter was $4.5 million, compared to $3.4 million for the first quarter of 2006. Both periods included special items. The 2007 quarter included $0.6 million in special income, net of tax, consisting of a gain from the sale of a facility, partially offset by costs related to the acquisition of ASC. The 2006 quarter included $0.9 million in special charges, net of tax, relating to costs of closing facilities and consolidating operations. Excluding these special items, adjusted net income from continuing operations would have been $3.9 million and $4.3 million for the first quarter of 2007 and the first quarter of 2006, respectively...more
DENSO Sales California Announces Executive Promotions
Aftermarket News
LONG BEACH, CA -- DENSO Sales California has announced the promotion of Gene Stark to senior manager from manager. Stark now is responsible for the Technical Services, Engineering, Navigation Services and East Coast Service departments.
Stark graduated from the University of Wisconsin with a bachelor's degree in Engineering. He joined DENSO in 1988 in the Quality Assurance department and has held various management positions in the Quality Assurance and Engineering departments. Stark was named senior manager effective April 2...more
DaimlerChrysler Supervisory Board Clears Way for Chrysler Sale
Associated Press
BERLIN -- DaimlerChrysler's supervisory board formally cleared the way for the sale of most of the company's money-losing U.S. unit, Chrysler Group, to private equity firm Cerberus Capital Management LP.
The board, the equivalent of a U.S. board of directors, "approved the concept for the Chrysler Group and the realignment of DaimlerChrysler AG in the form submitted by the board of management," DaimlerChrysler said in a statement...more
GM to Revamp Plant
Detroit Free Press
General Motors Corp. said Tuesday it will spend $63 million on a casting plant to produce cylinder heads for 3.6-liter, high-feature V6 engines used in the GMC Acadia, Saturn Outlook and Buick Enclave models.
About 130 hourly employees at the Saginaw facility will be retained with the investment, the automaker said...more
EU Car Companies Seek 3-Year Reprive on CO2 Rules
Reuters
BRUSSELS – Car manufacturers called on the European Commission on Tuesday, May 15, to delay setting new requirements for carbon dioxide (CO2) emissions to 2015, three years later than currently proposed, to give them more time to prepare.
The European Union's executive said in February it would propose legislation by mid-2008 to force carmakers to cut CO2 emissions from new cars to an average of 130 grams per kilometer across the fleet by 2012 through improved engine technology...more
May 15, 2007
CVSN
Agrees to Talks with HDAW
Truckinginfo.com
The Commercial Vehicle Solutions Network (CVSN) says its board of directors has agreed to discuss the development of a new meeting model with organizers of Heavy Duty Aftermarket Week.
Ken Duval, president of Canadian Wheel Industries, Edmonton, Alberta, and incoming CVSN president in September, is chairman of the CVSN negotiating team that will meet with HDAW organizers. The team also includes Wayne Keller, Keller Truck Parts; Tom Stewart, Carolina Rim and Wheel; and Marc Karon, Total Truck Parts...more
'Upside Surprise' for U.S. Profits
Bloomberg News
NEW YORK—Profits at U.S. companies rose by more than 10 percent for the 19th straight quarter in the period ended March 31, according to data compiled by Bloomberg.
Through May 11, companies in the Standard & Poor's 500 index reported an average earnings gain of 13 percent in the quarter. The last time growth was less than 10 percent was the second quarter of 2002...more
Freightliner to Cut Staff
Detroit Free Press
Truck manufacturer Freightliner LLC said Monday it would lay off up to 1,528 workers at its assembly plant north of Charlotte, N.C. in July.
In a statement to The Charlotte Observer, the Portland, Ore.-based company said "continued depressed market conditions" forces it to reduce the size of the work force at the plant as of July 10...more
Meet Stephen Feinberg, the Reclusive Investing 'Machine' Who Runs Cerberus
Automotive News
When Cerberus Capital Management starts running the Chrysler group, it's a good bet there will be no funny TV ads featuring Cerberus CEO Stephen Feinberg. This is no "Dr. Z."
The man behind Cerberus is a reclusive Princeton University graduate who prefers working in the shadows of the private equity firm he founded in 1992. He doesn't grant media interviews and reportedly hates to travel beyond his simple, unadorned offices on New York's Park Avenue...more
Bush Orders Stricter Rules on Auto Mileage
The Wall Street Journal
President Bush ordered up new rules aimed at increasing automobile fuel efficiency and the use of alternative fuels -- and at putting a Republican stamp on energy conservation while Democrats in charge of Congress remain gridlocked on the issue.
Bush's pledge yesterday to toughen standards signals the inevitability of new burdens on auto makers and gasoline refiners, even if legal challenges were to delay implementation of the changes. Within the next few years, auto makers will have to make more fuel-efficient vehicles, while refiners will have to increase their use of ethanol and other alternatives to oil products in the gasoline they produce. And with the cost likely passed through to consumers, the new rules also are likely to mean higher prices for vehicles and the fuel needed to drive them...more
May 14, 2007
Ford
CEO: Turnaround Plan is Progressing
Aftermarket
News
WILMINGTON, DE -- Ford President and Chief Executive Alan Mulally reassured shareholders Thursday that the automaker's turnaround plan was on track and that it was investing in environmentally friendly technologies amid concerns about climate change.
Mulally, making his first appearance before company shareholders, said Ford was taking "painful but necessary steps" to streamline costs and bring more accountability to the company with the goal of building "more of the products that people really want and value."..more
Bosch Sales Increase 5 Percent in North America
Aftermarket News
FARMINGTON HILLS, MI -- In 2006, the Bosch Group increased its North American sales by 5 percent, reaching $8.8 billion. All three of the company's business sectors – Automotive Technology, Industrial Technology, and Consumer Goods and Building Technology -- contributed to the result, according to the company.
The company said increased sales however could not surmount the impact of key market factors (i.e., rising raw materials and fuel costs, production cuts among key automakers and a slowdown in construction) on capacity utilization and productivity...more
Cerberus Buys Chrysler Group for $7.45 Billion
Automotive News
MUNICH -- Private equity group Cerberus Capital Management will take control of the Chrysler group in a transaction valued at $7.45 billion (5.5 billion euros).
DaimlerChrysler AG announced the Cerberus deal this morning. An affiliate of Cerberus will acquire 80.1 percent of Chrysler, while DaimlerChrysler will retain 19.9 percent.
Most of the $7.45 billion outlay from Cerberus will go directly to the future new company, Chrysler Holding LLC. Chrysler's automotive business will get $5 billion, while the financial services business gets $1.05 billion. DaimlerChrysler will receive the balance of $1.35 billion. In addition, DaimlerChrysler will loan $400 million to the Chrysler automotive operation...more
Magna Aims to Expand in Russia
Automotive News
TORONTO - Frank Stronach did it his way for 50 years at the helm of Magna International.
Now he’s selling a chunk of the world’s third-largest auto parts-maker – a company the rough-hewn Austrian started in his garage near here – to a Russian billionaire as part of a plan to grow quickly in Russia.
“We will be a leader with the Russian automakers,” he told shareholders at the company’s annual meeting here on Thursday, May 10. “And we will be in an excellent position when other automakers build in Russia.”..more
German Steelmaker OKs Alabama for Plant
Associated Press
FRANKFURT, Germany -- Steelmaker ThyssenKrupp AG said Friday it will build a new $4.19 billion steel plant in Alabama, which has attracted other German companies including DaimlerChrysler AG in recent years.
The plant - scheduled to open in 2010 and employ as many as 2,700 workers when fully operational - will be near Mobile. The company was lured by several tax breaks and a $400 million incentives package.
The Duesseldorf-based company chose Alabama over Louisiana, which also had offered tax breaks...more
Profit as We Know It Could Be Lost With New Accounting Statements
The Wall Street Journal
Pretty soon the bottom line may not be, well, the bottom line.
In coming months, accounting-rule makers are planning to unveil a draft plan to rework financial statements, the bedrock data that millions of investors use every day when deciding whether to buy or sell stocks, bonds and other financial instruments. One possible result: the elimination of what today is known as net income or net profit, the bottom-line figure showing what is left after expenses have been met and taxes paid...more
May 11, 2007
How
a Russian May Complicate Chrysler Auction
The
Wall Street Journal
A controversial Russian aluminum magnate announced plans to buy a hefty stake in a Canadian company that is a leading candidate to bid for DaimlerChrysler AG's Chrysler Group, a surprise move that could complicate the auction for the auto maker and raise new concerns about foreign investment in the U.S.
Oleg Deripaska's plan to buy a $1.54 billion stake in Magna International Inc. could provide vital cash for any Chrysler bid made by the Canadian auto-parts maker, although the Russian's past offers a potential red flag for regulators and political leaders who will scrutinize the deal. U.S. law-enforcement officials suspect Deripaska may have ties to Russian organized crime. He has consistently denied participating in any criminal activity...more
What Do the Presidential Candidates Drive?
Associated Press
Hybrids are gaining in popularity in the political class, judging from the cars of choice of the presidential candidates.
The Associated Press is asking the candidates a series of questions about their personal tastes, habits and backgrounds. Today’s question and their answers: What car or cars do you drive?..more
May 10, 2007
Affinia
Reports Gross Profit Increase for the First Quarter of 2007
Aftermarket
News
ANN ARBOR, MI -- Affinia Group has reported improved profit on lower sales for the first quarter ended March 31.
Net sales were $502 million for the quarter compared to $548 million for the same period in 2006. The decline was a result of Affinia's planned exit from certain unprofitable brake and chassis product contracts and the discontinuation in early 2006 of a customer relationship. General softness in retail and traditional market channels also contributed to lower brake and chassis product sales...more
China's Auto Imports and Exports Exceed $13 Billion in First Quarter
Aftermarket News
BEIJING -- China's total import and export of automotive products reached $13.361 billion in the first quarter of this year, according to statistics from the customs.
Of this, imports made up $5.362 billion, increasing 18.46 percent year on year, and exports were $7.999 billion, up 36.30 percent...more
MAHLE Clevite Supports "NASCAR DAy" with Contribution
Aftermarket News
ANN ARBOR, MI -- MAHLE Clevite has pledged its support of NASCAR Day by making a donation on behalf of every one of its employees.
NASCAR has officially designated May 18 as a day dedicated to supporting the many charitable causes of the NASCAR Foundation. The NASCAR Foundation welcomes donations of any amount, yet it asks fans to donate just five dollars in order to receive a commemorative pin showing their support for the selected causes. MAHLE Clevite stepped up by making a contribution for each of its more than 500 employees located throughout the country by writing a check payable on their behalf to the NASCAR Foundation. MAHLE Clevite encourages all of their employees to proudly wear their NASCAR Day pin, not only on May 18, but also beyond, displaying MAHLE Clevite's commitment to the Foundation and the causes it supports...more
May 9, 2007
CEO
of Advance Auto Parts Leaves Company
The
Detroit News
Advance Auto Parts Inc., the second-largest U.S. retailer of car parts, said that CEO Michael Coppola resigned. John Brouillard, the company's lead director, will serve as interim chief until a permanent replacement is found. Coppola is pursuing other business opportunities, the Roanoke, Va.-based company said Monday.
German Steelmaker Looks at U.S. Plant Sites
The Detroit News
TROY -- ThyssenKrupp on Monday said the siting of the company's multibillion dollar facility in the United States will be considered by its supervisory board on Friday in Duesseldorf, Germany. ThyssenKrupp AG and ThyssenKrupp Steel and Stainless USA will release details of the board's actions following the meeting. In February, ThyssenKrupp confirmed that it is proceeding with the development of a new carbon steel and stainless steel manufacturing and processing facility in either Alabama or Louisiana. The new plant complex, which is expected to begin operations in 2010, is considered to be one of the largest private industrial development projects in the United States over the next decade.
Leuliette: Private Equity Could Cure What Ails Detroit
Automotive News
DETROIT -- Metaldyne Corp. CEO Tim Leuliette says he believes Detroit -- both the region and its auto industry -- has become a "giant disaster."
The often outspoken executive thinks private equity and globalization
are solutions. He spoke today at an automotive media luncheon in Detroit.
An infusion of private equity funds could jolt the industry by eradicating complacency in management and bringing on "healthy restructuring," Leuliette says. In an interview with Automotive News, he cited Roger Penske's successful acquisition of engine maker Detroit Diesel as an example of a private equity leader imposing "clarity" and "laser-light focus" on a company...more
Senate Panel Oks 35 Mpg Fuel Economy Plan
Detroit News Washington Bureau
WASHINGTON -- A key Senate committee today adopted a fuel-efficiency plan that would require automakers' products to average 35 miles per gallon by 2020.
Democrats said the measure is on a fast track to be voted on next month by the full Senate, bolstering momentum for a rule change automakers have successfully blocked for nearly two decades.
By a voice vote, the Senate Commerce Committee today unanimously approved a compromise bill, but was still considering amendments this morning, said U.S. Sen., Daniel Inouye, D-Hawaii...more
May 8, 2007
Suppliers
Seek Higher Profile with D.C. Event
Automotive
News
WASHINGTON -- Amid trying times for their industry, top supplier executives and managers head here next week for their fourth annual legislative summit.
The theme of the gathering is "The Invisible Giant of U.S. Manufacturing."
Suppliers claimed the title after a new economic impact study found that car and truck parts makers are the largest segment in U.S. manufacturing, their leaders say. A goal of the summit is to reduce what they consider the invisibility of that finding...more
Power Shifts in Fuel Debate
Detroit Free Press
As war shakes the Middle East and gasoline prices surge, Congress mulls tough efficiency rules for Detroit's automakers, which warn of catastrophic job cuts. The year: 1990.
That's just one example of the several attempts over the past three decades to raise fuel economy standards that have been beaten back by the U.S. auto industry. Time and again, automakers -- from Detroit and elsewhere -- have united to deflect calls for tougher rules with arguments of lost jobs, less-safe vehicles and scientific doubt...more
May 7, 2007
Magna
Plots Chrysler's Future
Automotive
News
The top brass at Magna International Inc. -- the giant Canadian supplier considered to be the leading candidate to take over the Chrysler group -- already has a vision of what's needed to fix the troubled automaker.
High on the list: Reduce the number of Chrysler group dealerships...more
Dana Fights to Appeal $43.9M Court Ruling
The Detroit News
Dana Corp. wants to suspend Chapter 11 protections against litigation so it can appeal a $43.9 million judgment won by Microtherm Inc. The Toledo, Ohio-based auto-parts maker believes the move would benefit its bankruptcy restructuring efforts because it could erase a $70.8 million claim filed in the Chapter 11 case, Dana said in papers filed with the U.S. Bankruptcy Court in Manhattan.
Dana is among a number of auto-parts companies that have sought protection from creditors amid cutbacks from the largest U.S. vehicle manufacturers. The dispute stems from a 2002 lawsuit in which Microtherm claimed Dana violated Texas' Deceptive Trade Practice Act in connection with the sale of allegedly defective heat sensors. After a jury verdict, a trial court awarded the Gainesville, Fla., engineering firm a $43.9 million judgment against Dana. Microtherm used the Dana-made sensors in "tankless electric water heaters."
Freightliner Workers Ratify Contract
AutoBeat Daily
Workers at Freightliner LLC’s Cleveland, N.C., plant—the company’s largest—have approved a new three-year contract by an 89:11 margin just two weeks after rejecting a pact. It was not clear what, if any, changes are included in the new agreement. The United Auto Workers had called a strike for last Wednesday but announced at the last minute that members would instead vote again.
Portland, Ore.-based Freightliner, a unit of DaimlerChrysler AG, is shedding 4,000 U.S. jobs, including nearly 1,200 that were eliminated at the Cleveland plant last month. The cuts are in response to a sharp decline in U.S. sales of Class 8 trucks after new diesel emissions standards took effect Jan. 1.
May 4, 2007
Affinia Group Building Manufacturing Facility in Mexico
ANN ARBOR, Mich. -- Affinia Group Inc., a global leader in the on and off highway replacement products and service industry, announced that it is expanding its presence in Latin America with the construction of a new Wix Filtration manufacturing and distribution facility in Mexico.
The company has begun construction of a 315,000 square foot facility in the rapidly growing Santa Maria Industrial Park in Ramos Arizpe, Coahuila, 180 miles south of Laredo, Texas. Scheduled for completion in the second half of this year, the facility initially will manufacture and distribute a variety of filtration products...more
SSAB Agrees to Acquire Ipsco
The Wall Street Journal
Swedish steel giant SSAB said that it had agreed to buy North American steel maker Ipsco for $160 a share, in a cash deal worth about $7.7 billion. Chief Executive Olof Faxander said that the transaction is a way for SSAB to acquire a platform for future market expansion and market presence in North America. Ipsco has an annual steel-making capacity of 4.3 million tons. "This transaction delivers significant value to Ipsco's shareholders," said Ipsco's Chief Executive David Sutherland, adding that "It also joins IPSCO with a leading player in the global steel industry." The deal is subject to shareholder and regulatory approval.
May 3, 2007
Navistar
Seeks $2 Billion from Ford as Engine Battle Escalates
Reuters
CHICAGO -- Truck and engine maker Navistar International Corp. said it had filed an amended counter-complaint in its legal fight with Ford Motor Co. that seeks damages of more than $2 billion from the automaker.
Navistar, the exclusive supplier of diesel engines to Ford's Super Duty pickups since 1979, said the amended complaint was prompted by indications that Ford was planning to develop diesel engines of its own for introduction prior to 2012...more
Magna Files Second Bid for Chrysler
Detroit Free Press
Magna International Inc. wants to go to the next round in its attempt to buy the Chrysler Group.
The Canadian auto-parts supplier filed its new bid Tuesday, seeking to become a finalist to buy the struggling Auburn Hills automaker, the Free Press has learned...more
Auto Group Fights Fuel Rule
The Detroit News
WASHINGTON -- Stung by the prospect of an even-tougher fuel economy bill going up for a Senate committee vote next week, automakers will take their hardest line in urging Congress not to raise fuel efficiency standards.
At a hearing of the Senate Commerce Committee, the head of the Alliance of Automobile Manufacturers -- which represents General Motors Corp, Ford Motor Co., DaimlerChrysler AG and Toyota Motor Corp. -- will warn about the dangers of excessively raising corporate average fuel economy, or CAFE, standards...more
May 2, 2007
CSK
Auto Releases Restated Financials
MEMA
Financial Services Group
On May 1, CSK Auto Inc. released financial results for its fiscal year ended Jan. 29, 2006, which it calls fiscal 2005, as well as the restated financial statements for fiscal years 2004 and 2003.
This investigation resulted in the restatement of financials for previous years and significant one time charges for inventory valuations and vendor rebates that were booked incorrectly. According to CSK management, this lengthy investigation and restatement has cost the company in excess of $26 million...more
DENSO Announces Management Changes
Kariya (Japan) - DENSO Corporation announced changes to its board of directors and managing officers. Changes will take place after the annual shareholders meeting on June 26...more
May 1, 2007
At Marathon,
a Gamble on Diesel
The
Wall Street Journal
HOUSTON -- Amid talk of cars powered by everything from ethanol to electricity to hydrogen, one oil company is betting big on another alternative fuel: diesel.
Marathon Oil Corp. is beginning construction of a $3.2 billion addition to its largest refinery, in Garyville, La. The current facility, like most U.S. refineries, makes about twice as much gasoline as diesel. The addition, which Marathon expects to begin production in the fourth quarter of 2009, will crank out roughly equal amounts of both...more
Manufacturing May Be on Path to Better Health
The Wall Street Journal
After a long time in the doldrums, manufacturers may be feeling the wind pick up.
It has been a less-than-ideal time for the smokestack economy. U.S. car companies -- not just important manufacturers in their own right, but major customers for hundreds of other manufacturing companies -- have been in a funk. Meantime, the housing downturn has cut into demand for manufactured items such as washing machines and earth-moving equipment...more
Ford to Sell Mexico Parts Plant
Bloomberg News
Ford Motor Co. agreed to sell a Mexican auto parts plant to a Canadian supplier, bringing the automaker closer to its goal of shedding a group of unprofitable businesses.
The plant, in Nuevo Laredo, will be sold to Linamar Corp., Ford said Monday. Terms weren't disclosed. It is one of the properties that was returned to the No. 2 U.S. automaker from former subsidiary Visteon Corp. in 2005...more
April 30, 2007
Affinia Group Begins Manufacturing in Ukraine
ANN ARBOR, Mich. -- Affinia Group Inc., a global leader in the on and off highway replacement products and service industry, announced that it has begun production at its recently completed WIX-Filtron manufacturing and distribution facility in Krasilov, Ukraine. The new 65,000-square-foot facility is the company's second operation in Eastern Europe, joining Affinia WIX-Filtron manufacturing and distribution plant in Poland. WIX-Filtron is an Affinia company and part of Affinia's Under Hood Group.
With the expansion of its global operations into the Ukraine, Affinia is positioned to enhance its service to customers in Eastern Europe and Russia. In this region, demand for air, oil and fuel filter applications represents a significant market opportunity for Affinia. The Ukraine facility will manufacture and distribute filtration products to this growing customer base...more
Mississippi Hopes to Lure New Paccar Plant
AutoBeat Daily
Mississippi lawmakers have approved a package of more than $60 million in subsidies and tax breaks to persuade PACCAR Inc. to build a new $300 million engine plant in the state to open in 2009 or 2010. They hope for an announcement next month...more
Wall Street Journal Commentary: How to Get China and India Right
The Wall Street Journal
The breakneck economic growth in China and India presents tremendous opportunity for Western multinationals -- as well as major challenges.
For all the big investments Western companies are making in the two nations, the vast majority of businesses don't have much of a clue regarding how to succeed in China and India, or how to leverage the strengths of these two countries for global advantage...more
April 27, 2007
DENSO to Establish New Plant in Japan
Kariya, Japan – DENSO Corporation announced that it will establish a new company in Chitose, Hokkaido, Japan to produce automotive semiconductor products. The new company—DENSO ELECTRONICS CORPORATION—will have an initial capital investment of approximately US$17 million (2 billion yen).
DENSO plans to start production at the new plant in April 2009. By fiscal 2015, DENSO expects investment in the new operation to total approximately US$200 million (approximately 24 billion yen), with projected sales of approximately US$850 million (approximately 100 billion yen)...more
MISG, ANXeBusiness Merger Creates Strong Business Partner for Aftermarket, Heavy Duty Parts Manufacturers
The merger of Management Information Systems Group Inc. (MISG), the former commercial business-to-business data interchange subsidiary of MEMA, with ANXeBusiness Inc., the owner and operator of the largest multi-provider data interchange network in the world, has resulted in a strong partner for business-to-business e-commerce for automotive aftermarket and heavy duty parts manufacturers.
The transaction, announced in January and completed as of March 30, combines the clients, assets and trademarks of MISG with those of ANXeBusiness. MISG now operates as a division of ANXeBusiness – based in Southfield, Mich. -- and offers expanded data interchange services to the aftermarket and heavy duty parts suppliers...more
April 26, 2007
Bosch
Does Not Fear a Possible Conti-VDO Merger
Automotive
News
STUTTGART -- Robert Bosch’s CEO is not worried about a possible fusion of rivals Continental and Siemens VDO Automotive.
“That merger would not lead to a dramatic change for us,” Franz Fehrenbach said during Bosch’s annual press conference here...more
New Bids for Chrysler Expected Next Week
Detroit Free Press
Suitors for the Chrysler Group must submit new bids by the middle of next week in hopes of making the cut for what is expected to be a lengthy period of negotiations, likely including two competing bidders, the Free Press has learned.
One or two preferred bidders are expected to emerge from the second round to continue talks with DaimlerChrysler AG, people familiar with the process say...more
Automotive Communicators Honored for Outstanding PR Achievements
RESEARCH TRIANGLE PARK, N.C. – The winners of the sixth annual Excellence in Automotive Public Relations Award were honored Tuesday, April 24 at the Spring Conference of the Automotive Public Relations Council (APRC) held in Dearborn, Mich. The awards are the only of their kind that are dedicated to recognizing excellence in automotive public relations.
The Excellence in Automotive Public Relations Award identifies public relations programs that have successfully addressed an automotive-related public relations issue with exemplary professional skill, creativity and resourcefulness. The award honors complete public relations programs that incorporate sound planning, execution and evaluation...more
April 25, 2007
O'Reilly
Automotive Reports First Quarter 2007 Earnings
Aftermarket News - Distribution & Service News
SPRINGFIELD, MO -- O’Reilly Automotive has announced record revenues and earnings for the first quarter ended March 31. The company said this marks 54 consecutive quarters of record revenues, earnings and comparable store sales increases for O’Reilly since becoming a public company in April 1993.
Net income for the first quarter totaled $48.4 million, up 19.3 percent from $40.6 million for the same period in 2006. Diluted earnings per common share for the first quarter of 2007 increased 20 percent to 42 cents on 115.5 million shares compared to 35 cents for the first quarter of 2006 on 114.6 million shares. Sales for the three months ended March 31 totaled $613 million, up 14.3 percent from $537 million for the same period a year ago. Gross profit for the first quarter of 2007 increased to $269 million (or 43.9 percent of sales) from $233 million (or 43.5 percent of sales) for the first quarter of 2006, representing an increase of 15.4 percent. Operating, Selling, General and Administrative expenses increased to $192 million (or 31.3 percent of sales) for the first quarter of 2007 from $168 million (or 31.4 percent of sales) for the first quarter of 2006, representing an increase of 14 percent...more
Old World Introduces New Line of PEAK Lubricants
Aftermarket News - Parts and Accessory News
NORTHBROOK, IL – Old World Industries is parlaying its brand recognition in the antifreeze and washer fluid categories to introduce a new motor oil line, which the company said is attractively priced and designed to deliver the trusted quality and performance that is synonymous with the PEAK brand name. Old World has introduced the new line of PEAK Premium Motor Oils and Lubricants, to fill what it describes as “the void for a top-quality, national, value-priced brand.”..more
GM Exec Touts Renewable Energy Push
Aftermarket News - OE News
LOUISVILLE, KY -- A top General Motors Corp. executive said Monday that the nation should accelerate the push toward renewable energy to fuel automobiles and said the conversion to ethanol as a leading contributor is "entirely realistic" in a few years.
Speaking at an automotive conference, GM Vice Chairman Bob Lutz said that instead of being satisfied with incremental change, the country should make it a priority to replace fossil fuel with renewable energy in "huge chunks."..more
EPA May Let California Set Rules
Detroit Free Press
WASHINGTON -- The Environmental Protection Agency said Tuesday it will start considering a request by California to set its own fuel economy standards for cars and trucks, as Congress pressures the agency to write new rules for vehicles.
But during a contentious Senate hearing, EPA Administrator Stephen Johnson rebuffed demands from Democratic senators to spell out a timetable for making decisions, declining to specify what steps the agency is considering following a Supreme Court ruling earlier this month that it can control carbon dioxide from cars and trucks...more
No Timetable on Carbon Dioxide Regulation
Associated Press
WASHINGTON -- The head of the Environmental Protection Agency repeatedly refused to say Tuesday how soon he will comply with a Supreme Court ruling and decide whether to regulate carbon dioxide, the leading gas linked to global warming.
EPA Administrator Stephen Johnson, appearing before the Senate Environment and Public Works Committee, was asked repeatedly to provide a timetable for responding to the April 2 Supreme Court decisions. The court said the Clean Air Act makes clear the agency must regulate carbon dioxide if it's found that it endangers public health...more
April 24, 2007
Fuel Economy,
Auto Emissions Take Center Stage
Detroit
News
WASHINGTON -- The decision on whether to dramatically increase the regulation of automobile emissions and auto safety returns to the forefront in Congress this week.
On Wednesday, the Senate Commerce Committee was to begin consideration of a bill to dramatically raise corporate average fuel economy, using a bill introduced by Sen. Dianne Feinstein, D-Calif., as a draft proposal. But with committee staffers still trying to reach consensus the bill's language, auto industry and Senate officials on Monday decided that debate on the fuel economy bill will be delayed until May 8...more
April 23, 2007
China's
Car Makers Break Out of the Pack
The
Wall Street Journal
SHANGHAI -- China's domestic car makers are mounting a serious challenge to foreign companies in the world's fastest-growing major auto market, bringing down prices for mass-market vehicles.
The Shanghai auto show, which opened here over the weekend in a vast convention complex, featured an expanding array of increasingly sophisticated vehicles -- including sedans, SUVs and hybrids -- from an assortment of Chinese manufacturers...more
Chinese Auto Maker Heading for U.S.
TheAutoChannel.com
SHANGHAI -- Reuters reported that an automaking unit of Brilliance China Automotive Holdings aims to sell internally developed sedans in the United States as early as this year, a senior executive said.
"We are making preparations for the market entry currently and hope to ship the first batch of the BS6 sedan there late this year or in early 2008," Zhigang Liu, president of Shenyang Brilliance Jinbei, told Reuters on the sidelines of the Shanghai auto show late on Sunday...more
GM to Boost Output, Purchasing in India
AutoBeat Asia
CEO Rick Wagoner says General Motors Corp. aims to increase its share of India’s expanding auto market from 2.8 percent to 10 percent by 2010. He expects India to be the second-fastest-growing market next to China with overall industry sales in the country nearly doubling to 2 million units within three years.
Speaking at a conference in Mumbai, Wagoner notes that half of India’s population is under 25 years old, thus presenting a huge opportunity for OEMs in the country...more
April 20, 2007
EPA Expects
a Repeat of '70s Tech Leap
Automotive
News
DETROIT -- Automakers made huge leaps in the fight against air pollution in the 1970s, and they can do it again with greenhouse gases, a top EPA official said here Wednesday, April 18.
Margo Oge, director of the EPA Office of Transportation and Air Quality, said that many in the 2007 SAE World Congress audience would remember when tough new emissions limits were imposed in the early 1970s...more
April 19, 2007
More Chrysler
Bidding Due
The
Wall Street Journal
As talks for possibly selling Chrysler Group progress, bidders interested in DaimlerChrysler AG's U.S. unit are expected to submit a second round of offers within the next week or so, people familiar with the matter said.
Afterward, DaimlerChrysler will likely narrow it down to two bidders and then eventually choose one leading candidate in early May, these people said. The first round of bids were submitted at the end of March, and all of the proposals include giving the United Auto Workers union a stake in Chrysler as a way to address the company's health-care costs...more
Workers at Freightline Plant in North Carolina Reject Contract
Associated Press
RALEIGH, N.C. -- Workers at Freightliner LLC's largest truck manufacturing plant rejected a new contract Wednesday, just weeks after the company laid off more than 1,000 employees at the facility.
Shelia Howard, a recording secretary for United Auto Workers Local 3520, told The Salisbury Post that workers rejected the contract in a 749-621 vote. Union officials did not return messages left Wednesday night by The Associated Press...more
Herman Trend Alert: The Future of Wellnes
Aftermarket News - News Extras
GREENSBORO, NC -- For a while now, employers have recognized the value of supporting workers to stay healthy. In the United States, we call them “wellness programs.” Not only do these valuable programs reduce absenteeism, but they also increase productivity and reduce employee turnover -- both directly and indirectly.
The financial impact of healthcare spending is indisputable. Starbucks spends more money in one year on health insurance for its employees than it spends on coffee for its customers. The U.S. automakers will spend more money this year on health insurance than they will on the steel that goes into their automobiles...more
April 18, 2007
Magna's
Chrysler Bid Gains Steam
The
Detroit News
Magna International Inc. has emerged as a strong candidate to buy Chrysler as representatives from the Canadian supplier and its financial partner Onex Corp. met with Chrysler executives this week for a second round of talks.
Private equity bidders for the Auburn Hills automaker may have deeper pockets, but the Canadian firm has the advantage of being one of DaimlerChrysler's most trusted suppliers, say people familiar with the situation...more
Supplier Success Outlined
Detroit Free Press
To be an auto supplier can mean you feel like you're constantly trying to catch up.
There are rising material prices, quicker schedules for vehicle launches, and changes in how and with whom your customers are doing business. Your customers squeeze your profits. Production shrinks.
Amid these changes, dozens of auto suppliers have filed for bankruptcy...more
April 17, 2007
Report
Says Chrysler Deal May Be at Hand
Associated
Press
FRANKFURT, Germany -- Magna International Inc., a Canadian auto parts maker, is in advanced talks with DaimlerChrysler AG about a possible purchase of the money-losing Chrysler unit, a German newspaper reported Tuesday.
The Frankfurter Allgemeine Zeitung reported that the Aurora, Ontario-based company is in continuing talks with the German-American automaker about acquiring a majority stake in the Chrysler division, but the paper did not name its sources. The paper said DaimlerChrysler would keep a minority stake in the U.S. division...more
Future of Diesel Engines Looks Brighter
Detroit News
DETROIT -- Government and auto industry officials expressed optimism Monday about the future of diesel-powered passenger cars and light-trucks, even as an oil industry official raised concerns about the costs of increasing diesel fuel use.
Concerns about energy dependence and global warming have prompted calls in Congress and the White House to reduce the nation's oil use and cut auto emissions. Industry officials see diesel-powered vehicles as part of the solution...more
Conoco, Tyson to Make Biodiesel Fuel
AutoBeat Daily
Oil refiner ConocoPhillips and meat producer Tyson Foods Inc. are teaming up to produce biodiesel fuel from beef, pork and poultry fat The companies will begin selling the fuel in the fourth quarter. They aim to boost annual production to 175 million gallons by 2009. That’s only about 3 percent of the diesel fuel ConocoPhillips makes per year, but it would boost total biodiesel output in the U.S. by 70 percent.
Tyson will equip some of its North American rendering plants to pre-process 58 percent of the 300 million gallons of animal fat it produces annually. ConocoPhillips will use a proprietary technology to process the fat and mix it with hydrocarbon feedstocks at several of its refineries. The process also can make biodiesel out of vegetable oils...more
SPX Completes Sale of Contech
Aftermarket News - Parts and Accessory News
CHARLOTTE, NC -- SPX Corp. has completed the sale of its Contech business unit to Marathon Automotive Group, LLC, a company formed by Marathon Asset Management, LLC, for approximately $146 million in cash.
Contech, based in Portage, MI, has annual revenues of approximately $300 million. Contech manufactures highly engineered, lightweight cast component solutions for the automotive and light truck markets, and also offers a variety of die cast process technologies. In addition, Contech manufactures steel forged automotive components and steel tube fabrications. ..more
Bosch Releases New Bilingual Oil Filters Catalog
Aftermarket News - Parts and Accessory News
BROADVIEW, IL -- Bosch has published a new bilingual catalog covering its premium oil filters for domestic and import cars, light trucks and vans for current models as well as those built as far back as the 1950s. In English and Spanish, this 392-page catalog lists correct oil filters for all car and light truck models from A.C. to Yugo, by year/make/model/engine.
More than 40 pages of technical information are incorporated, including numerical and alphabetical listings of all Bosch oil filters, quick cross reference tables, Bosch product and package specifications and filter installation tips. Important information on oil filter over pressure and oil pump priming solutions also fill the catalog's pages...more
April 16, 2007
Magna
Joins Bidding War for Chrysler
Forbes.com
Magna International said Friday morning that it is looking into a purchase of Chrysler Group. But a deal will be difficult for the Canadian auto parts maker, since there is already one competing bid--and more are likely coming.
Magna announced in a statement that it continues to review a "potential transaction" for Chrysler. In February, DaimlerChrysler Director Dieter Zetsche said the company would consider a sale of its struggling American arm...more
Domestic OEMs to Address Manufacturing Summit
AutoBeat Daily
The CEOs of the Big Three domestic automakers are set to attend a June 6 Washington, D.C., summit on U.S. manufacturing issues, including trade, alternative fuels and healthcare costs.
The auto CEOs are slated to address Democratic senators at a Capitol Hill luncheon as part of the event, which also will include unnamed leaders from other industries...more
R&D, Chinese Style
AutoBeat Asia
A growing number of international companies are adding research and development capabilities in China, note separate reports in Business Week and The Nikkei.
Citing a 2005 World Investment Report from the United Nations Conference on Trade and Development, BW notes that Western multinationals have more than 700 R&D facilities in China. The list includes General Motors, Nissan, DuPont, Hewlett-Packard, IBM, Intel, Lucent Technologies, Microsoft and Motorola...more
April 13, 2007
The Pulse:
Sourcing Oil Filters
Aftermarket
News - The Pulse
Each week, The Pulse provides insight into the buying, sourcing and brand-loyalty habits of counter professionals and professional technicians. This week, we look at technicians’ sourcing habits for oil filters.
LOFs are the bread and butter of many repair shops, and so the products they use should be priced well and be a brand that technicians are comfortable with.
Like many products that are heavily used by DIYers, oil filters continue to be sourced increasingly from the retail channel, which continues to take a bite out of both jobber and WD Direct market share. Statistics from a recent Counterman survey show that 56 percent of technicians go to jobbers as their primary source for oil filters, with 16 percent going first to the retailer and 15 percent to WD Direct...more
April 12, 2007
Iacocca
Rips Auto Industry, Warns: Don't Sell Chrysler
Detroit Free Press
Former Chrysler Chairman Lee Iacocca tears into the Bush administration and the U.S. auto industry in a new book, saying America's political leaders have failed the nation and urging voters to pick more carefully in 2008.
The 82-year-old Iacocca -- who was urged to run for president in the 1980s after turning around Chrysler -- also says he's for higher federal fuel-economy standards, warns that Chrysler could become a "shattered remnant" if sold and offers suggestions for Detroit's automakers to turn their businesses around...more
Schwarzenegger to Michigan: Get Off Your Butt
The Detroit News
WASHINGTON -- California Gov. Arnold Schwarzenegger pulled no punches Wednesday in telling Detroit automakers to "get off your butt" and increase the fuel efficiency of their cars and trucks, saying they are "still lagging behind."
Schwarzenegger's comments came as he responded to a billboard that went up last month along Interstate 75 in Detroit that criticized him for mandating vehicle emission caps in California that will be costly for Detroit automakers to meet...more
April 11, 2007
Repair
Shop Licensing Legislation Introduced In Texas
Aftermarket
News - Association & Legislative News
WASHINGTON, DC -- Automotive repair shop licensing legislation has been int rod uced in both the Texas state Senate and the Texas state House of Representatives. Two companion bills have been int rod uced: Senate Bill 1120 was int rod uced by Texas state Sen. John Carona (R-16th), and House Bill 2211 by state Rep. Jim Murphy (R-133rd).
If passed, the legislation will create an automobile service and repair advisory board that will consist of 12 members, including representatives of the automobile repair industry and consumers. The board will regulate proposed amendments and changes to the shop licensing requirements required by this legislation...more
Daimler to See Bidders -- Minus Kerkorian
The Wall Street Journal
A top DaimlerChrysler AG executive is scheduled to meet in New York this week with bidders for the German auto maker's Chrysler unit, but it appears that billionaire Kirk Kerkorian's Tracinda Corp. isn't among those invited.
Tracinda, which announced a surprise $4.5 billion bid for Chrysler late last week, was working up to the last minute in hopes of being included in the scheduled round of meetings with DaimlerChrysler executive Rüdiger Grube, a management-board member and head of strategy. Among the issues: DaimlerChrysler and its bankers are questioning whether Tracinda's bid, which came with several significant conditions, is competitive given proposals from three rival groups...more
Dana Ordered to Make $5.2M Pension Payment
The Detroit News
Dana Corp., the bankrupt maker of automotive axles, was ordered by a bankruptcy judge to make a $5.2 million contribution to the company's nonunion employees' pension plan by April 13. U.S. Bankruptcy Court Judge Burton Lifland in Manhattan approved an agreement Tuesday between Dana and its unions requiring Dana to make the payment. The order also requires the Toledo, Ohio-based firm to make a separate pension payment of $487,000 in connection with the February sale of its engine-parts business to Germany's Mahle GmbH for $157 million.
Bush Administration Sets Biofuel Rules
AutoBeat Daily
The U.S. Environmental Protection Agency has finalized requirements that oil refiners blend at least 7.5 billion gallons of renewable fuels, such as ethanol, into the nation’s motor vehicle fuel supply by 2012.
The increased use of biofuels is part of President Bush’s aim to reduce U.S. gasoline consumption by 20 percent in the next 10 years...more
April 10, 2007
DENSO
Honored by General Motors as a 2006 Supplier of the Year
Aftermarket
News - Parts and Accessory News
SOUTHFIELD, MI -- DENSO International America was recently presented the General Motors 2006 Supplier of the Year award for its overall business performance in providing GM with world-class parts and services. The 15th annual award -- themed the "Best of the Best" -- was given during ceremonies March 31 at the JW Marriott Orlando Grande Lakes in Orlando, FL.
DENSO was recognized for its heating, ventilation and air conditioning (HVAC) system, windshield wipers, fuel injectors and navigation system.
DCX Ponders Kerkorian Bid for Chrysler
AutoBeat Daily
This week’s big question: What will DaimlerChrysler AG make of the $4.5 billion cash bid for Chrysler Group from Kirk Kerkorian’s Tracinda Corp.?
The offer, made nearly 12 years to the day after Kerkorian’s failed $23 billion bid for the unit, generated plenty of headlines last week But analysts were quick to note that other bidders reportedly are offering as much as $13 billion for Chrysler—although Tracinda is the only one so far to go public with its bid...more
Eaton to Purchase Fuel Components Division of Saturn Electronics & Engineering
aftermarketNews.com
CLEVELAND -- Eaton Corp. has reached a definitive agreement with Saturn Electronics & Engineering, Inc. to purchase its fuel components division. Terms of the deal were not disclosed. The transaction, expected to close in the second quarter, is subject to customary regulatory approvals and closing conditions.
The fuel components division of Saturn Electronics & Engineering makes fuel containment valves for vehicle safety in the event of vehicle rollover or accident impacts, as well as fuel shutoff valves to prevent splash back and vapor release during refueling. Saturn also produces valves to control Environmental Protection Agency-regulated fuel tank vapor emissions and a variety of other specialty actuators controlling motion and vibration. The division employs approximately 100 people at a facility in Oxford, MI, in 2006, and has annual sales of approximately $28 million...more
Automakers Cautios on South Korea-U.S. FTA
BusinessWeek..com
Automakers said Thursday they are hopeful a free trade agreement between South Korea and the United States will prove a boon to their industry, but taking a cautious approach until the deal gets final approval.
"The specific details of the free trade agreement are still being analyzed by all of the auto manufacturers," Michael Grimaldi, president and CEO of GM Daewoo Auto & Technology Co., said on the sidelines of the 2007 Seoul Motor Show. "We export our products around the world. We look forward to the resolution of the agreement."..more
Japan Formalizes Free Trade Agreement with Thailand; U.S. Deal Next?
AutoBeat Asia
Japanese Prime Minister Shinzo Abe and acting Thai Prime Minister Surayud Chulanont signed a free trade agreement last week in Tokyo that will cut tariffs on a range of manufactured goods, including finished vehicles and automotive parts. The deal had been in the works prior to last fall’s coup in Thailand that ousted then-Prime Minister Thaksin Shinawatraa, a strong proponent of the agreement.
Under the accord, Thailand gradually will reduce duties on Japanese cars and automobile parts and may eliminate them entirely within eight years. Japan immediately will end duties on Thai shrimp and tropical fruit and scale back tariffs on Thai farm goods over the next five years. Japan also will ease visa requirements to Thai entertainers, cooks and service personnel...more
Car Makers Mobilize Over CO2 Curbs
The Wall Street Journal
Auto makers are shifting into high gear to protect themselves under a federal global-warming cap they see around the corner.
Cars and light trucks generate about one-fifth of U.S. emissions of carbon dioxide, the main global-warming gas, which is produced when fossil fuel is burned. With pressure for U.S. emission curbs intensifying, auto makers are mobilizing to try to shift the potential economic pain onto someone else.
April 9, 2007
Eaton
to Purchase Fuel Components Division of Saturn Electronics & Engineering
Aftermarket
News - Parts and Accessory News
CLEVELAND -- Eaton Corp. has reached a definitive agreement with Saturn Electronics & Engineering, Inc. to purchase its fuel components division. Terms of the deal were not disclosed. The transaction, expected to close in the second quarter, is subject to customary regulatory approvals and closing conditions.
The fuel components division of Saturn Electronics & Engineering makes fuel containment valves for vehicle safety in the event of vehicle rollover or accident impacts, as well as fuel shutoff valves to prevent splash back and vapor release during refueling. Saturn also produces valves to control Environmental Protection Agency-regulated fuel tank vapor emissions and a variety of other specialty actuators controlling motion and vibration. The division employs approximately 100 people at a facility in Oxford, MI, in 2006, and has annual sales of approximately $28 million...more
MAHLE Clevite Gears up to Host NASCAR's Top Engine Builders at the 2007 Clevite Engine Builder Showdown
Aftermarket News - Parts and Accessory News
ANN ARBOR, MI -- Preparations are in full swing at MAHLE Clevite Inc. for the Seventh Annual Clevite Engine Builder Showdown. The finals this year are scheduled for May 23 at the NASCAR Technical Institute in Mooresville, NC.
The Showdown pits NASCAR's top engine builders in a race to build and successfully run a NASCAR NEXTEL Cup 357-cubic inch Ford engine in the shortest time possible. Through a process of three rounds of preliminary and semi-final eliminations, the competition culminates in a final showdown between the two fastest teams...more
In Vermont, Court Challenge for State Regulation of Emissions
Associated Press
BURLINGTON, Vt. -- A week after the U.S. Supreme Court said vehicle carbon dioxide emissions can be regulated like other pollutants, an effort by several states to do that is about to get its first court test.
California long has been the pacesetter in regulating car emissions, setting tougher limits than those imposed by the federal government...more
April 5, 2007
Daimler
May Favor Magna for Chrysler
The
Wall Street Journal
BERLIN -- DaimlerChrysler AG's criteria for a possible sale of its Chrysler division could help a bid by Canadian auto-parts supplier Magna International Inc., a company seen by some labor leaders and people inside the auto maker as more interested than private-equity buyers in a long-term strategy for the unit.
Speaking at the company's annual shareholders meeting in Berlin, DaimlerChrysler Chief Executive Dieter Zetsche confirmed the company is in talks with would-be buyers, and for the first time he outlined the priorities that will guide the company in deciding what to do with its U.S. division...more
Mulally Met with International CEO over Engine Dispute
Automotive News
Ford Motor Co. CEO Alan Mulally has met with his counterpart at International Truck and Engine Corp. over a dispute involving diesel engines.
Spokesmen for Ford and International today refused to say when and where the meeting took place, what was discussed or whether the officials will meet again. But the meeting could be a signal that both companies are eager to end their legal wrangling and settle a dispute over warranty cost and pricing issues...more
Lutz Touts Increased Ethanol Use to Save Oil
Detroit Free Press
NEW YORK -- General Motors Corp. Vice Chairman Bob Lutz has an offer for lawmakers and environmentalists who are calling for tougher fuel economy standards: Instead of forcing GM to add $6,000 in cost to every vehicle it builds, why not require all vehicles to run on ethanol?
Lutz and other GM executives at the New York auto show said Wednesday that the company's U.S. sales strategy is on track despite a steeper-than-expected drop in sales during March...more
April 4, 2007
Zetsche
Confirms Chrysler Up For Sale
Detroit
Free Press
BERLIN -- DaimlerChrysler AG is in talks to sell the Chrysler Group, Chairman Dieter Zetsche will indicate during his speech to shareholders this morning.
According to parts of his prepared speech, released early this morning in Germany, Zetsche will say DaimlerChrysler is in talks with “interested” partners regarding future options...more
Fill Up With Ethanol? One Obstacle Is Big Oil
The Wall Street Journal
President Bush, domestic auto makers, farmers and others tout ethanol as a home-grown alternative to imported oil. Across the Midwest, plants that make the fuel out of corn are multiplying at a torrid pace. Yet so far, only a tiny fraction of U.S. service stations let a driver fill up with ethanol. There are a number of reasons, but one big one is resistance from oil companies.
Although some oil executives voice enthusiasm for alternative fuels, oil-company policies make it harder for many service stations to stock a fuel called E85, a blend of 85 percent ethanol and 15 percent gasoline...more
Aftermarket Senior Statesman Jack Dreyfus Dies
Jack Dreyfus, president of Dreyco Inc. and well-known automotive aftermarket export management businessman, passed away on April 2.
Dreyfus founded the family business in 1950. Based in Carlstadt, N.J., Dreyco continues to serve as the export sales department for leading U.S. manufacturers...more
April 3, 2007
EPA Can Regulate Vehicle Exhaust
WASHINGTON -- Calling global warming a serious threat, the U.S. Supreme Court on Monday said the Environmental Protection Agency has the authority to regulate the fuel economy of cars and trucks to slow the release of greenhouse gases.
The 5-4 decision is a defeat for the U.S. auto industry, which had argued that the EPA correctly ruled in 2003 that it should not regulate carbon dioxide emissions from vehicles. But the ruling also could provide automakers with new ammunition in battles against California and other states trying to set their own mileage standards...more
South Korean Automakers Seen Big Winners in U.S. Trade Deal
Automotive News
SEOUL -- Hyundai Motor Co. and other South Korean auto companies should see a significant boost in sales following this week's trade deal with the United States, analysts and officials said.
The two countries on Monday, April 2, agreed the biggest U.S. trade pact for 15 years, including tax and tariff cuts on cars along with other barrier-lifting measures on food and services...more
Ford Agrees to Sell Auto Parts Plant
Associated Press
DEARBORN, Mich. -- Automaker Ford Motor Co. said Monday it has entered into an agreement to sell a Michigan auto parts plant to an affiliate of a China-based company, while it has closed the sale of a Mexico factory to another company.
Financial terms for both transactions were not disclosed...more
April 2, 2007
Affinia Group Continues Restructuring Initiative with Closure of Canadian Foundry
ANN ARBOR, Mich. -- Affinia Group Inc. announced that it is closing its foundry in Sudbury, Ontario, Canada.
"While this closure is the right decision for the future of Affinia, it in no way reflects on the talents or dedication of the 240 hard-working people of the Sudbury plant," said John Washbish, President of Affinia's Under Vehicle Group...more
India Becoming a Non-Manufacturing Outsourcing Hub for Automakers
AutoBeat Asia
Automakers increasingly are turning to India for a variety of non-manufacturing services, including information technology, research and development, human resources and accounting, observes the country’s Economic Times. It lists Ford and Volvo Truck among the companies leading the trend in taking advantage of the large pool of low-cost, skilled workers. Ford is ramping up its finance and IT units in India.
Ford Information Technology, which supports operations worldwide, now employs 150 people directly and another 530 through third-party vendors. And a separate business service unit with more than 1,000 employees in India conducts a variety of accounting, audit, banking, internal control, taxation, marketing, sales and purchasing support for Ford businesses in Europe, North America, South America, Asia Pacific and Africa...more
End Is Near for Long Delays at European Borders
Automotive News
PRAGUE -- A widening of an EU agreement promises to bring a lot fewer headaches for logistics and supply-chain managers next year.
Effective January 1, 2008, nine new EU members will join the Schengen Agreement, meaning border controls between them and the rest of the EU will disappear. That will eliminate several-hour-long delays at border crossings for trucks carrying components and cars, allowing for more certain scheduling of deliveries...more
U.S., South Korea Reach Trade Pact
The Wall Street Journal
SEOUL -- Now that the U.S. and South Korea have reached a landmark free-trade agreement, it faces the next challenge: Getting approval from politicians, economists and business leaders in both countries.
The two countries announced a free-trade deal Monday afternoon after negotiations that began 14 months ago ended in marathon bargaining sessions over the weekend. The agreement aims to build on a relationship that amounted to $75 billion in two-way trade last year...more
March 30, 2007
The Dirty
Secret about Clean Cars
BusinessWeek.com
President George W. Bush enjoyed a high-profile photo-op Mar. 26 with the heads of the Big Three automakers and their latest clean-car models. The impressive lineup included a General Motors (GM) model that can run on ethanol, a plug-in Ford (F) powered by hydrogen, and a DaimlerChrysler (DCX) Jeep filled with a biodiesel blend. It was smiles all around as the automakers announced they would make half of America's vehicles ethanol-ready by 2012. "If you want to reduce gasoline usage—like I believe we need to do so for national-security reasons as well as for environmental concerns—the consumer has got to be in a position to make a rational choice," said a beaming Bush.
But there's a dirty secret about clean cars. The policies for flexible-fuel vehicles—those that can run on mixtures of gasoline and more than 10 percent ethanol—are written in such a way that they result in a number of unintended consequences. One result is that automakers gain some leeway in meeting fuel-economy standards if they produce flexible-fuel cars and trucks. So Detroit's automakers have been pumping out hundreds of thousands of the vehicles, even though most consumers have no access to alternative fuels because they're available at only a fraction of U.S. gas stations...more
U.S. Economy Grew Sluggishly in Fourth Quarter
Autobeat Daily
The Dept. of Commerce says America’s economy grew by 2.5 percent in the fourth quarter of 2007, up from the 2.2 percent previous estimate but down from the department’s original 3.5 percent estimate two months ago...more
The Pulse: How Technicians Source Motor Oil
Aftermarket News - The Pulse
Each week, The Pulse provides insight into the buying, sourcing and brand-loyalty habits of counter professionals and professional technicians. This week, we look at technicians’ sourcing habits for motor oil.
Oil change habits are, well, changing. While the 3,000 mile oil change was once considered to be the general rule of thumb, many motorists today are waiting longer between oil changes, waiting between the standard 3,000 and 5,000 miles before getting an oil change. With this change in driver habits, the number of oil changes repair shops perform every month has dropped. According to a recent survey conducted by Counterman magazine, most shops did about 25 oil changes a month in 2006, compared to an average of 30 oil changes a month in 2005...more
March 29, 2007
China's
Auto Industry Takes On the World
BusinessWeek.com
A little piece of England came to China this week. On Mar. 27, the classic British brand MG Rover began production in Nanjing, in Jiangsu Province, with 1.8-liter and 2.5-liter MG7sedans and a 1.8-liter MG TF roadster rolling off a Chinese factory line. Next up will be other MG nameplates with engine sizes ranging from 1.1 to 1.6 liters, says Nanjing Automobile Group, the new owner of the once-iconic British brand.
This milestone for the Chinese auto industry follows Nanjing Auto's $97 million purchase in 2005 of the failed MG Rover brand, its Powertrain engine unit, and its factory in Longbridge, England. Nanjing Auto moved the entire production line to this city northwest of Shanghai—and the rollout of these stylish cars is part of a larger transformation for a company best known for its commercial bus and truck production. It already produces the Fiat Palio and Siena, thanks to a hook-up with the Italian automaker. The company pumped $450 million into the factory producing the Rover and aims to produce 200,000 cars, 250,000 engines, and 100,000 gearboxes a year...more
Chrysler Sales is All But Certain
Detroit Free Press
DaimlerChrysler AG is expected to winnow the list of bidders for its troubled Chrysler Group to one or two finalists very soon, possibly in the next few days preceding the DCX annual shareholder meeting Wednesday in Berlin, say people familiar with the talks.
Once that happens, an intense period of exhaustive due-diligence investigation and negotiations -- perhaps lasting for months -- will follow to hammer out details and the ultimate price tag for a highly complex transaction to extricate Chrysler from the rocky nine-year marriage...more
Freightliner Says Class 8 Sales below Hopes
Automotive News
CHICAGO -- The top executive at Freightliner LLC, the leading U.S. truck maker, said today that orders for its biggest on-highway trucks had been weaker than expected so far this year and that the company was cutting second-quarter production and laying off workers to cope.
In an interview with Reuters, Chris Patterson, the company's CEO, blamed continued weakness in the freight market for the drop in demand for so-called Class 8 trucks -- not the higher prices that Freightliner and others are charging for the expensive new engines that comply with a U.S. clean-air rule that took effect Jan. 1...more
Durable
Good Orders Signal Weak Economy
AutoBeat
Daily
Aircraft orders boosted America’s orders for durable goods by 2.5 percent in February from the month before, says the U.S. Dept. of Commerce. But when the volatile transportationsector is excluded, big-ticket orders fell 0.1 percent—the sixth decline in eight months for that measure...more
March 28, 2007
Daimler
Tilts Toward a Sale
The
Wall Street Journal
Momentum within DaimlerChrysler AG appears to be moving toward a sale of its Chrysler Group unit, according to people familiar with the matter, though such a decision is far from certain and the company cautioned it will have little to say on the matter at next week's annual meeting.
DaimlerChrysler shareholders will get a chance on April 4 in Berlin to confront Chief Executive Dieter Zetsche with questions about Chrysler's future. But yesterday, people close to the company said Zetsche isn't planning to discuss a possible Chrysler deal in any detail. "Don't hold your breath," DaimlerChrysler spokesman Han Tjan said...more
Indian Suppliers Step up Investment Pace in Germany
Automotive News
Industry analysts expect Indian suppliers to increase their investment in German industry in the next few years.
“After talks with potential and existing Indian investors, we firmly believe that the number of Indian investments will significantly increase over the next four years,” said Christian Blank, a director at the Industrial Investment Council in Berlin...more
House Sends President Trade Rules
Detroit Free Press
WASHINGTON -- The two top House Democrats who oversee trade gave the Bush administration an outline of their requirements for current and future trade deals on Tuesday and said their proposals enjoy broad support in Congress.
U.S. Rep. Charles Rangel, D-N.Y., and Rep. Sander Levin, D-Mich., also warned again that any proposed trade agreement with South Korea that lowers barriers for that nation's automakers but does not take similar actions for U.S. manufacturers would be defeated in Congress. The administration has until Friday to submit an agreement...more
March 27, 2007
Freightliner:
Suppliers Must Be Global
eTrucker.com
In the years to come, major component suppliers to Freightliner must be prepared to do business with the entire DaimlerChrysler Truck Group, not just the Portland, Ore., based North American truck builder, Freightliner LLC President & Chief Executive Officer Chris Patterson says.
“The future for Freightliner is with suppliers who are competitive in global terms and meet the needs of DaimlerChrysler’s Truck Group,” Patterson told attendees at the 17th annual Heavy Duty Manufacturers Association breakfast, held Friday at the Mid-America Trucking Show in Louisville, Ky. That includes positioning Freightliner LLC as the sole channel for the aftermarket. “We are determined to control our fate in the aftermarket. We want to be the face with our customers,” Patterson said. And suppliers must be willing to invest and locate wherever Freightliner needs them to, he said. For example, by 2012 a significant portion of Freightliner’s output will come from Mexico.
March 26, 2007
Bush,
Auto Makers to Discuss Fuels Plan
The
Wall Street Journal
Detroit's Big Three auto makers hope to use their second meeting with President Bush in the past six months to stress the need for ramped-up alternative-fuel production and increased infrastructure for fueling vehicles that run on energy sources other than gasoline.
The focus on alternative fuels at today's White House meeting caters to an area where auto executives and the Bush administration share common ground. General Motors Corp., Ford Motor Co. and DaimlerChrysler AG have said they are committed to building what are known as flex-fuel vehicles that can run on both conventional and alternative fuels, a development Bush has repeatedly endorsed...more
Automotive Suppliers to Honor Sens. Levin, Voinovich as 'Industry Champions'
AAM's Dave McCurdy to Address Annual Legislative Summit
RESEARCH TRIANGLE PARK, N.C. – Sens. Carl Levin (D-Mich.) and George Voinovich (R-Ohio) will be honored by the automotive and heavy duty supplier industry as the 2007 recipients of the “Joseph M. Magliochetti Industry Champion” award at the Motor & Equipment Manufacturers Association’s (MEMA) Legislative Summit in Washington, D.C., scheduled for Wednesday and Thursday, May 16-17, at the Mandarin Oriental Hotel, Washington, D.C.
The awards presentation is slated for the Summit breakfast on Thursday, May 17...more
Keystone to Appeal Ford Patent Ruling
Associated Press
POMONA, Calif. -- Auto parts distributor Keystone Automotive Industries Inc. said Thursday it will appeal a ruling by an administrative judge in a patent suit filed against the company by Ford Global Technologies LLC.
The U.S. International Trade Commission told the company it would not review the ruling, issued in December by an administrative law judge, that said seven of ten design patents related to the Ford F-150 truck were enforceable and infringed Ford's design patents...more
March 23, 2007
Clarcor
First Quarter Earnings Rise 1 Percent, Amid Weather-Related Shipping
Delays
Aftermarket
News - Parts and Accessory News
Clarcor Inc., which makes industrial and automotive filters, has said its first-quarter profit rose just over 1 percent, as sales were hampered by shipping delays. Clarcor posted earnings of $16.4 million, for the quarter ended March 3, up from $16.2 million, in the year ago-period.
Revenue dipped to $209.5 million from $213.2 million in the year-ago quarter. Weather-related delays slowed truck and rail traffic, including a snowstorm that causes a manufacturing plant to be closed for several days...more
GM Pledges to Cut Emissions
The Wall Street Journal
General Motors Corp. said it plans to reduce carbon-dioxide emissions by 40 percent at its North American manufacturing facilities by 2010, based on 2000 levels.
The Detroit auto maker said the reduction would equal 4.5 million metric tons (five million short tons) and would be equivalent to annual emissions from the power consumed by 432,692 households...more
AutoZone Announces Organizational Changes
MEMPHIS, Tenn., March 23, 2007 -- AutoZone, Inc. (NYSE:AZO - News) today announced Tom Newbern has been promoted to the position of Senior Vice President of Store Operations. A 21-year AutoZoner, Newbern has held several key management positions with the company, most recently Vice President of the Southwest Division.
AutoZone also announced today Larry Roesel will be joining the company as Senior Vice President of Commercial. Roesel comes to AutoZone after more than 30 years with OfficeMax, Inc. and its predecessor where he served in operations, sales and general management. Both Newbern and Roesel will report to Bob Olsen, the company's Executive Vice President of Store Operations, Commercial and Mexico...more
March 22, 2007
California
Proposes Annual Emissions Tests For Vehicles 15 Years Old and Older
SEMA
eNews
Enthusiasts in California are rallying against legislation that has been introduced in the State Assembly by Assemblyman Dave Jones to require annual smog check inspections for vehicles 15 years old and older. In addition, the bill would direct funds generated through the additional inspection fees to be deposited into an account which can be used to scrap older cars. The bill has been referred to the Assembly Transportation Committee for consideration.
The measure represents another attempt by California legislators and regulators to scapegoat older cars for air-quality deficiencies. In 2004, despite objections from the vehicle hobby community, California repealed its rolling emissions-test exemption for vehicles 30 years old and older and replaced it with a law requiring the lifetime testing of all '76 and newer model-year vehicles...more
Polk: '06 Sales of Alternative-Fuel Vehicles Exceed Expectations
Auto Remarketing
WASHINGTON — Data collected by R.L. Polk & Co. showed the 2006 sales of alternative fuel vehicles surpassed OEMs' expectations tremendously.
More specifically, Polk officials reported that 1.5 million alternative-fuel vehicles were sold last year, raising the number of those types of units on the road to 10.5 million. Executives also noted that OEMs are offering 60 models that fall into the alternative-fuel category, including hybrid electric, ethanol-capable E-85 and clean diesel...more
Vehicle Sales and Economic Forecasts
New-Vehicle sales are expected to echo last year's sales, but segment shifts are expected.
SEMA eNews
Sales of new cars and light trucks in 2007 will roughly equal the 2006 sales mark of 16.5 million, according to an economic forecast by Paul Taylor, chief economist of the National Automobile Dealers Association (NADA). Taylor reported that a strong U.S. economy and new products on the market, including a wide array of high-quality new fuel-efficient vehicles, will benefit sales throughout the year.
“Most signs in the economy and market point to another solid year for sales of new cars and light trucks," said Taylor. "Any significant increase in sales will likely be restrained by steady interest rates, as well as a continued slowing of home mortgage refinancing," he added...more
Small Business Expected to Grow in 2007
PULSE Small-Business Market Insight
2006 was a good year for small business, and according to the latest NFIB Small-Business Economic Trends report, the momentum is expected to continue this year. In the first half of the year growth was very strong, with the Small Business Optimism Index averaging over 100. The outlook weakened a bit in the second half of the year, as the average dropped to 98.
The labor market appears to be tightening, as nearly one in five of those surveyed plans to increase employment early this year, and one in five owners have a position open now they cannot fill. In the second half of 2006, more than half of those surveyed hired or tried to hire one or more workers. More than 8 in 10 of those surveyed reported few or no qualified applicants for open positions although small-business owners plan to keep looking for good help.
United Components Reports Results of Operations for Fourth Quarter 2006
Aftermarket News
EVANSVILLE, IN -- United Components, Inc. (UCI) has announced results for the fourth quarter ended Dec. 31, 2006. Revenue of $222.7 million increased $31.8 million compared to the year-ago quarter. The quarter included $20.5 million in sales by water pump manufacturer ASC Industries, which was acquired by UCI during the second quarter. On a comparable basis (excluding ASC sales), the company reported revenue increases in the retail and heavy duty channels, a decline in the OEM channel, with sales flat in the traditional and original equipment service channels...more
More States Looking at Right to Repair Legislature
Aftermarket News
Florida and Maine have joined three other states in exploring automotive service and repair issues in the state legislature. Oklahoma, Nevada and New Jersey are each currently exploring proposed legislation to address concerns about the ability of motorists and independent repair facilities to access the same information given to car dealerships for vehicle repairs. On a national level, this issue -- generally known as the Motor Vehicle Owners Right to Repair Act -- has been presented before Congress for the past several years.
Now, the state senate in Maine has proposed the new State Legislative Document 1210, "An Act Concerning the Diagnosis, Service and Repair of Motor Vehicles," which “requires an automobile manufacturer to provide the owner or lessee and repair facilities with the information necessary to diagnose service or repair, certify, activate or install equipment in a motor vehicle it has manufactured." The Maine Right to Repair bill would rely on the courts to ensure the distribution of service information...more
DCX to Decide by Fall Whether to Sell Chrysler
AutoBeat Daily
Chrysler Group expects to learn in less than six months on whether or not it will be sold, CEO Tom LaSorda told a group of the company’s biggest dealers yesterday in Naples, Fla.
Negotiations with at least five prospective bidders have moved quickly since DaimlerChrysler AG said in mid-February it would consider selling or spinning off the unit...more
Bush to Meet With Detroit 3 Executives Next Week
Automotive News
WASHINGTON -- President George W. Bush will meet next week with the chief executives from the Detroit 3, the White House said today.
The Monday, March 26, meeting with officials of General Motors, Ford Motor Co. and the Chrysler group will focus on alternative fuels, White House spokesman Tony Fratto said...more
Gore: Don't Single Out Cars and Trucks to Solve Global Warming
Automotive News
WASHINGTON -- Automakers have an ally of sorts -- in Al Gore.
In a highly anticipated appearance before Congress today, the former vice president said he supports higher fuel economy standards. But automakers alone should not be expected to solve global warming, he contended...more
March 21, 2007
Bush Pushes
Hybrids on Plant Tour
Detroit
Free Press
President George W. Bush strolled through two Kansas City-area auto plants on Tuesday extolling the potential of hybrid vehicles, the latest in a series of promotions for his energy independence plan that has yet to gain much traction on Capitol Hill.
While Bush has touted his proposals for higher fuel economy and more alternative fuels steadily since the State of the Union address, Congress has taken its own tack. All the fuel economy proposals on Capitol Hill are stricter than what Bush has outlined, and farm-state lawmakers appear to be in charge of reworking any rules on alternative fuel use...more
Pep Boys to Let Shareholder Plan Expire
Associated Press
PHILADELPHIA -- Automotive retail and service chain Pep Boys -- Manny, Moe & Jack said Tuesday it will allow its shareholder rights plan to expire at the end of the year.
The company gave no other details in a statement. Companies usually adopt shareholder rights plans, also known as "poison pills," to discourage takeover attempts...more
March 20, 2007
Bush 'Reaching
Out' to Big Three
Detroit
News
KANSAS CITY, Kan . -- President Bush today will tour two factories where Detroit automakers churn out gasoline-electric hybrid vehicles, as he expands his energy-saving message from a focus on alternative fuels to an emphasis on vehicles, as well.
After the tours here, Bush will again urge Congress to quickly adopt new costly fuel economy standards as part of a strategy to end the nation's dependence on foreign oil. His renewed call comes after prominent House Democrats said last week that a climate change bill that raises fuel economy standards is not likely until 2008 at the earliest...more
Goldman Sets Chrysler Value at $6 Billion
Detroit Free Press
Chrysler Group could be worth about $6 billion in a sale to a private equity firm, according to a leading global brokerage.
That's $1 billion more than the value purportedly ascribed to Chrysler by two firms thought to be leading suitors for the company, and $2 billion more than a Canadian parts maker supposedly believes Chrysler is worth...more
Automaker, UAW Bigwigs Back a CO2 Cap
Automotive News
WASHINGTON -- For the first time, top auto industry leaders jointly support a national cap on greenhouse-gas emissions, including those from cars and trucks.
That development nearly got lost amid the hoopla of a high-profile congressional hearing last week. Testifying before the House Energy and Commerce Committee were General Motors CEO Rick Wagoner, Ford Motor Co. CEO Alan Mulally, Chrysler group CEO Tom LaSorda, Toyota Motor North America Inc. President Jim Press and UAW President Ron Gettelfinger...more
Catevo and CTS Partner to Provide Inventory Optimization Services to the Automotive, Trucking Aftermarket Industries
Aftermarket News - Information Technology News
RALEIGH, NC – The Catevo Group, a global integrated communications, marketing, technology and management consultancy based in Raleigh, N.C., has entered into a collaborative partnership with Houston-based Custom Technology Solutions LLC (CTS) to offer supply chain consulting services and products to the automotive and trucking aftermarket industries. Through this new partnership, Catevo and CTS aim to help manufacturers and distributors optimize their inventory, which they say will significantly enhance margins and profits.
According to CTS CEO Nadeem Mazhar, the partnership will offer aftermarket companies the opportunity to see real financial benefits by utilizing CTS’ proven inventory optimization products. Catevo will support those efforts with a variety of supply chain consulting services including supply chain assessment, strategic sourcing, supplier development programs, procurement planning and forecasting/demand planning...more
CAWA to Testify Against CARB Warranty Extension Proposal
Aftermarket News - Association & Legislative News
SACRAMENTO, CA -- The California Automotive Wholesalers’ Association (CAWA) has joined a growing coalition of automotive organizations opposed to the California Air Resources Board’s (CARB) proposal to adopt regulations on mandatory warranties on emission parts and services.
According to CAWA’s Legislative Advocate Norm Plotkin, CARB is acting outside its authority...more
March 19, 2007
ThyssenKrupp
Plans for $2.9 Billion Facility in the U.S.
Aftermarket
News - Parts and Accessory News
TROY, MI -- ThyssenKrupp Steel and Stainless USA, LLC have filed permit applications in the states of Alabama and Louisiana for a $2.9 billion facility in the United States. Last month, ThyssenKrupp confirmed that it is proceeding with the development of a new state-of-the-art steel and stainless steel manufacturing and processing facility in one of the two states.
Over the past several months, ThyssenKrupp has been conducting extensive due diligence to construct and operate a $2.9 billion facility in the United States. The facility will manufacture and process carbon steel and stainless steel for high-value applications by manufacturers in the U.S. and throughout North America. The plant will serve industries including automotive, packaging, construction, electrical and utility, in addition to serving manufacturers of appliances, precision machinery and engineered products...more
PARADE Magazine Features Car Care Guide
Aftermarket News - Association & Legislative News
BETHESDA, MD – PARADE, reported to be America's most widely read magazine, featured the new Car Care Guide in this past Sunday's issue, March 18, distributed through 370 major newspapers, the Car Care Council reported today.
An article entitled "Cars & Care" in the popular Intelligence Report section of PARADE described the Car Care Guide and encouraged readers to obtain a free copy from the Car Care Council by visiting http://www.carcare.org...more
March 16, 2007
Affinia
Group Gross Profit Up 27 Percent in 2006
Aftermarket
News - Parts and Accessory News
ANN ARBOR, MI – Affinia Group has significantly improved gross profit and increased net income for the fourth quarter and fiscal year ended Dec. 31, 2006.
“Affinia gross profit increased 27 percent, while sales rose 1.4 percent as we continue to strengthen our competitive position in the dynamic aftermarket,” said Thomas Madden, Affinia’s senior vice president and chief financial officer...more
The Pulse: How Technicians Source Fuel Pumps
Aftermarket News - News Extras
Each week, The Pulse provides insight into the buying, sourcing and brand-loyalty habits of counter professionals and professional technicians. This week, we look at technicians’ sourcing habits for fuel pumps.
On average, repair shops only do about two jobs a month requiring fuel pumps, and only about 8 percent of shops keep this part in stock, according to a recent survey conducted by Counterman magazine...more
GM Wants to Reduce Health Care Costs
Aftermarket News - OE News
DETROIT -- General Motors Corp. will try to reduce its staggering employee and retiree health care liabilities in upcoming contract talks with the United Auto Workers (UAW), according to a government regulatory filing Thursday.
The world's largest automaker said its obligation for post-retirement health care and other benefits was $68 billion at the end of last year and could grow on a global basis...more
WIX Filters Announces "Geek My Garage" Sweepstakes
Aftermarket News - Parts and Accessory News
GASTONIA, NC – WIX Filtration, part of Affinia Group’s family of brands, and Speedway Motorsports, Inc., have announced the new WIX Filters “Geek My Garage” Sweepstakes, designed to stockpile and supercharge WIX customers’ garages with cool tools and equipment.
Running through November 2007, the “Geek My Garage” Sweepstakes will award winners prizes including a $1,000 auto parts store gift certificate, power and hand tools, gas for a year, lawn and garden equipment and many other prizes. The grand prize winner will receive a Chevrolet Silverado...more
Robert Bosch to Increase Procurement from China
Aftermarket News - Parts and Accessory News
BEIJING -- Robert Bosch GmbH, one of the leading auto parts suppliers in the world, is planning to increase its procurement spending in China to approximately $1.3 billion this year from approximately $400 million in 2006.
Compared with the total procurement spending of about $27 billion, the spending in China is only a small part, disclosed a source from Robert Bosch GmbH...more
Ghosn Swapping Nissan Duties
Automotive News
Nissan Motor Co. CEO Carlos Ghosn is swapping some of his duties in a management change at the Japanese automaker.
Goshn, shown, who also is CEO of Renault SA, will no longer directly oversee Nissan's operations in North and South America...more
Mitsubishi Motors See $17.2 Million Profit from Jatco Sale
Reuters
TOKYO -- Mitsubishi Motors Corp. said today it expected to book an extraordinary profit of around $17.2 million (2 billion yen) from the sale of part of its stake in unlisted Japanese auto parts maker Jatco Ltd. to Suzuki Motor Corp.
Mitsubishi Motors said it had not yet finalized the likely impact on its earnings for this business year, which ends on March 31. The automaker has projected a return to the black with a net profit of $68.8 million (8 billion yen) for the current year...more
Ford Ahead on Cost Savings Target for Materials
Reuters
DETROIT -- Ford Motor Co. exceeded its cost savings target for raw materials by 9 percent through February but sees future savings challenges due to financial weakness among its suppliers, the automaker told employees in an internal report.
Rising raw material costs, particularly steel, have presented a challenge for U.S. automakers. Ford previously had said it aims to save $6 billion in materials costs by 2010 by streamlining purchasing...more
Closed Auto Trial Sought
Detroit News
WASHINGTON -- Automakers want to bar the public from part of a trial over whether Vermont can impose new standards on vehicle tailpipe emissions in the first challenge to one of the biggest environmental issues facing the auto industry.
At issue is balancing the automakers' right to protect trade secrets, including detailed product forecasts and technology plans, against the public's right to attend court proceedings...more
March 15, 2007
Supplier
Jam Extends Around the World
Automotive
News
The first Automotive Supplier Jam online event drew more than 2,000 online participants from about 150 organizations in 17 countries.
The March 7-10 chat room was intended for North America. But the demand from other countries was so great that sponsors IBM Corp. and the Original Equipment Suppliers Association allowed any interested parties to participate...more
Auto Leaders Vow to Work for Emissions Legislation
Automotive News
WASHINGTON -- A highly anticipated congressional hearing Wednesday on the automobile industry's role in global warming turned out to be more lovefest than slugfest.
The net effect was that top automaker executives and UAW President Ron Gettelfinger agreed to work with lawmakers on broad-based legislation aimed at limiting greenhouse gas emissions from all sectors of the economy.
Details are yet to be determined...more
Register Your National Car Care Month Vehicle Check-Up Event on Carcare.org
Aftermarket News - Association & Legislative News
BETHESDA, MD – The Car Care Council would like to remind organizations that they can register their 2007 National Car Care Month vehicle check-up events on the Council’s website at http://www.carcare.org.
“The National Car Care Month event locator is very popular with motorists who visit the Car Care Council website,” said Rich White, executive director of the Car Care Council. “With more than 150,000 visitors each month, http://www.carcare.org is the ‘go to’ place to find vehicle check events throughout the country.” ..more
Bosch Releases 2007 Catalog for Premium Fuel Pumps
Aftermarket News - Parts and Accessory News
BROADVIEW, IL – Bosch has published the new 2006/2007 catalog (#2212151) to support the enhanced Bosch premium fuel pump program for domestic and import cars, light trucks and minivans.
This 480-page catalog includes vehicle identification data, product information, warranty policy, list of applications, a buyer’s guide, cross reference and UPC cross. The 164-page buyer’s guide section is supported by black and white illustrations of a wide variety of fuel pump assemblies for most domestic and import vehicles along with filter kits, gaskets and more...more
March 14, 2007
Pep Boys Names Jeffrey C. Rachor President & CEO
PHILADELPHIA--The Pep Boys - Manny, Moe & Jack, the nation's leading automotive aftermarket retail and service chain, announced the appointment of Jeffrey C. Rachor as its new president & chief executive officer. Rachor, who is expected to start in his position with Pep Boys by March 26, 2007, was also appointed to the Board of Directors.
Rachor, 45, most recently served as President, Chief Operating Officer, and a Director of Sonic Automotive Inc, a fortune 300 company and the third largest automotive retailer in the United States. Rachor joined Sonic Automotive in 1997 and has served in a variety of key operations positions with them. He has over twenty years of experience in automotive retailing, including extensive experience with multi-unit service center operations...more
General Motors Swings to Profit, Helped by Cost-Cutting Measures
The Wall Street Journal
General Motors Corp., in the midst of a massive restructuring of its North American operations, Wednesday said it swung to a profit in the fourth quarter, helped by continued cost-cutting measures and improvement in its core North American operations.
The world's largest auto maker, which had delayed its quarterly results because of accounting troubles, posted net income of $950 million, or $1.68 a share, compared with a loss of $6.6 billion, or $11.63 a share, a year earlier. The latest results included net gains of $770 million, primarily attributable to its partial sale of GMAC Financial Services, GM's former wholly owned financial arm. The year-earlier figure included hefty restructuring costs...more
Ford to Repay Navistar $80 Million
Light and Medium Truck Report
Ford Motor Co. will repay Navistar International Inc. $80 million as part of a deal that will ensure continued supply of diesel engines for its Super Duty pickup trucks in the immediate future, The Associated Press reported.
Ford had debited about $160 million from Navistar invoices as part of the dispute over warranty and pricing issues, AP said. An agreement reached last Thursday and released Friday by a Michigan circuit court judge requires Ford to transfer $80 million to Navistar by today...more
Big 3, Toyota to Congress: Emissions Not Just Car Issue
Detroit News
WASHINGTON -- In a high-stakes appearance on Capitol Hill today, U.S. auto industry leaders aim to make two crucial points -- higher fuel economy mandates can't solve America's dependence on foreign oil and a broad array of approaches across all industries is needed to fight global warming.
A subcommittee of the House Energy and Commerce Committee will hear testimony from General Motors Corp. Chairman Rick Wagoner, Ford Motor Co. CEO Alan Mulally, Chrysler Group CEO Tom LaSorda, Toyota Motor North America President Jim Press and United Auto Workers President Ron Gettelfinger...more
Affinia to Award $36,000 in Scholarships to UTI Students
Aftermarket News - Parts and Accessory News
ANN ARBOR, MI – Affinia has announced it will award $36,000 in scholarships to students at Universal Technical Institute, Inc. (UTI), a nationwide provider of technical training for automotive, diesel and collision repair technicians.
Eighteen tuition scholarships, valued at $2,000 each, will be awarded to students attending one of the company’s automotive or diesel campuses in Mooresville, NC; Phoenix; Sacramento; Orlando; Houston; Glendale Heights, IL; Rancho Cucamonga, CA; Exton, PA; and Norwood, MA...more
March 13, 2007
Hyundai
to Build $270 Million U.S. Engine Plant
Automotive
News
SEOUL -- Hyundai Motor Co. said today it plans to invest $270 million to build an engine plant at its U.S. car making unit in Alabama to serve growing demand in the world's No.1 auto market.
The engine plant, estimated to create about 520 jobs, will begin production in September 2008 and supply engines to the Alabama plant and a Georgia plant being built by its affiliate, Kia Motors Corp., Hyundai said in a statement...more
Auto Factions Unite Against Fuel Rules
Detroit Free Press
WASHINGTON -- Domestic and foreign, management and labor, the U.S. auto industry will present a rare united front to Congress on Wednesday to battle against sharply higher fuel efficiency rules for cars and trucks that could cost $114 billion.
It may not be enough to prevail...more
Offers to Buy Chrysler Could Come by Month's End
The Wall Street Journal
The pace of activity around a possible sale of DaimlerChrysler AG's Chrysler Group is accelerating, after several potential buyers met with management in anticipation of presenting preliminary offers by the end of the month.
DaimlerChrysler is hoping to narrow the list of serious buyers so its management team can give an update on a possible sale during DaimlerChrysler's general shareholders meeting in Berlin on April 4, according to people familiar with the matter. Two years ago, management was berated by shareholders fed up with a deep drop in DaimlerChrysler's market value since it was created in a landmark 1998 combination with the former Chrysler Corp...more
DuPont Scientist Takes Part in Article Touting Success of Protocol, Efforts to Combat Global Warming
Aftermarket Business
DuPont has reinforced the findings of a group of leading scientists that show the Montreal Protocol treaty has had a significant impact on protecting the Earth’s climate, as well as its ozone layer.
The article, “The Importance of the Montreal Protocol in Protecting Climate,” was published in The Proceedings of the National Academy of Science. Its authors are Guus J.M. Velders, Stephen O. Anderson, John S. Daniel, David W. Fahey and Mack McFarland, DuPont chief atmospheric scientist...more
R.L. Polk & Co.'s Ask the Industry Talks to "Green" Aftermarket Companies
Aftermarket News - Ask The Industry
Many aftermarket companies today are jumping on the “green” bandwagon and taking steps to reduce their companys' overall impact on the environment -- from office recycling programs to complete product redesigns. Consumers are showing a growing interest in vehicles and automotive products that are environmentally conscious as well. According to 2006 sales data from R. L. Polk & Co., there are 10.5 million alternative fuel vehicles on the roads today.
In addition to the 60 alternative fuel automobiles currently offered, automotive product suppliers are getting in on the game as well, looking at ways that they can minimize their impact on the environment. Among them is Aiken Chemical Co., a Greenville, SC-based manufacturer of automotive chemicals and other products. Aiken manufactures a certified biodegradable product called Purple Power Cleaner/Degreaser...more
March 12, 2007
Dana Completes
Sale of Engine Hard Parts Business to MAHLE GmbH
Aftermarket
News - Parts and Accessory News
TOLEDO, OH -- Dana has completed the sale of its engine hard parts business to MAHLE GmbH for an aggregate cash payment of approximately $97 million.
The engine hard parts business consists of 39 facilities, which manufacture piston rings, engine bearings, cylinder liners and camshafts under the Perfect Circle, Clevite and Glacier Vandervell brands. With annual revenues of approximately $670 million in 2005, the engine hard parts operations employ approximately 5,000 people in 10 countries...more
Even in China, Suppliers Are Pressed to Cut Costs
Automotive News
SHANGHAI -- Autoliv Inc. has six plants in the Shanghai area, each making a different component. But the Swedish supplier avoids costly duplication by operating one purchasing office and one sales organization.
"The danger of having multiple operations in China is that you duplicate functions," says George Chang, president of Autoliv China...more
Systems Suppliers Benefit, Too
Automotive News
High-strength steels are helping auto suppliers improve and lighten key components and systems.
Exhaust systems traditionally were considered low-tech items but now are going beyond stainless steel.
Using ferrite and austenite steel alloys, Belgium-based Bosal International has cut the weight of an exhaust system by 50 percent in the past six years, to between 22 and 27.5 pounds...more
March 9, 2007
Auto Suppliers to Continue Push To End Steel Tariffs
WASHINGTON, D.C. -- The Motor & Equipment Manufacturers Association (MEMA) said today it will continue to urge the federal government to abolish duties on imported steel which have already cost motor vehicle suppliers and other steel customers tens of thousands of jobs.
“Tariffs on imported steel continue to inflict serious damage on motor vehicle suppliers,” said Ann Wilson, MEMA vice president of government affairs. “Although the suppliers do not have the right of full participation in the International Trade Commission’s sunset review process later this year on hot rolled steel, MEMA will use every opportunity available to work for the repeal of these tariffs that drive up the cost and reduce the availability of steel used by our industry. At the same time we will work to pass H.R. 1127 which provides suppliers the fundamental right of equal access to these important proceedings,” she said...more
Ford, International Come to Terms, for Now
Automotive News
DETROIT -- Ford Motor Co. does not have to worry about running out of diesel engines for its hot-selling F-series Super Duty pickups, at least temporarily.
Ford and International Truck and Engine Corp. agreed late today to holster their lawyers in a legal duel over warranty costs, payment of invoices and other issues that caused International recently to cut off shipments of the new 6.4-liter Power Stroke diesel engine used in the 2008 F-series Super Duty trucks that went on sale in February...more
Mann+Hummel Invests 31 Min Euro in French Laval Plant
French News Digest
German automotive and industrial components maker Mann+Hummel invested 31 mln euro ($40.7 mln) in a new plant in Laval, northwestern France, it was reported on March 8, 2007.
The construction of the facility cost 16 mln euro ($21 mln) and was carried out by local diversified holding company Sacola. The new plant which has a floor space of 28,000 sq m will specialize in the design and production of car parts including air filters, air intakes and reservoirs...more
Cummins Announces Two-for-One Stock Split
Aftermarket News - Parts and Accessory News
COLUMBUS, IN -- The Cummins Board of Directors has declared a two-for-one split of Cummins Inc. stock, payable April 9 to shareholders of record as of March 26.
As a result of the stock split, each Cummins’ shareholder will receive one additional share of stock for each share owned on the record date. Since there will be twice as many shares after the split, each share will be worth half of what it was worth immediately prior to the split, while the overall value of a stockholder's investment remains the same...more
The Pulse: Sourcing Engine Management
Aftermarket News - News Extras
Each week, The Pulse provides insight into the buying, sourcing and brand-loyalty habits of counter professionals and professional technicians. This week, we look at technicians’ sourcing habits for engine management.
When it comes to sourcing engine management products, technicians go to more sources than they do with any other product category. On average, a shop relies on 3.6 sources for engine management products. According to a recent survey conducted by Counterman magazine, jobbers are the primary choice for half of all technicians and shop owners surveyed. Car dealerships came in second (19 percent), followed by retailers (16 percent) and WDs (12 percent)...more
WIX Filters Launches "Hero" Marketing Campaign
Aftermarket News - Parts and Accessory News
GASTONIA, NC – WIX Filters, part of Affinia Group’s family of brands, is launching a new marketing campaign highlighting WIX through vivid imagery of the classic black WIX spin-on oil filter donning heroic appearances.
The campaign centers on the primary image of a black spin-on WIX oil filter adorned with chrome pipe wings and the tagline: “Your engine’s guardian.” Three other Hero visuals seen throughout the campaign incorporate the black oil filter with a chrome cape, crown, or trophy, along with the message that WIX is your engine’s superhero, noble protector, or champion, respectively...more
March 8, 2007
Right
to Repair Legislation Introduced in Nevada
Aftermarket
News - Association & Legislative News
CARSON CITY, NV -- The California/Nevada Automotive Wholesalers’ Association (CAWA) recently co-sponsored the Nevada Aftermarket Industry Legislative Day to meet and educate legislators about the automotive aftermarket industry and highlight the introduction of SB 1320 (Hardy), the Nevada Right to Repair Act.
Held March 6 at the legislative office building in Carson City, NV, on March 6, the event was co-sponsored by CAWA, the Automotive Aftermarket Industry Association (AAIA) and the Nevada Collision Industry Association (NCIA). Members of the three groups met to review important legislative proposals impacting aftermarket businesses in Nevada as well as showcase the Nevada Right to Repair legislation, proposed to ensure that independent repair shops have access to the same information, training and tools to diagnose and repair vehicles that the dealerships do...more
Herman Trend Alert: Don't Offshore, Lakeshore
Aftermarket News - News Extras
GREENSBORO, NC -- A fact of corporate life is that there is constant pressure to “beat yesterday,” to increase corporate earnings and push more profit to the bottom line. In their drive to increase profits, many organizations have resorted to outsourcing outside of their home countries. We call that “offshoring” and for years, The Herman Group has been sounding the alarm that, in most cases, the savings from offshoring are simply “not worth the effort.”
Recently, Joyce [Gioia, of the Herman Group] learned of an extraordinary U.S. company that faced this issue and rather than offshoring, they decided to “lakeshore.” Lakeshoring means outsourcing to another organization within the home country. Sedgwick CMS, one of the few organizations to earn the Employer of Choice designation for three years in a row, embraced this seemingly counterintuitive idea...more
Economy Grows in Most Areas of U.S., Except Automotive and Housing Industries
Aftermarket News - News Extras
WASHINGTON -- Most parts of the country saw modest economic growth in the past month, although there were pockets of sluggishness as businesses continued to cope with fallout from the troubled housing and automotive industries.
Information in the new snapshot, released Wednesday by the Federal Reserve, was collected before last week's gut-wrenching nosedive in worldwide financial markets, in part reflecting investors' worries about the health of the U.S. and Chinese economies...more
Why Hybrids Are Such a Hard Sell
Business Week
Given all the buzz about hybrids, not to mention the greening of the citizenry, you'd think they would be easy to sell. They're not. After growing nicely through much of 2006, hybrid sales began to slow early this year. The gasoline-electric vehicles now make up 1.8 percent of all vehicle sales, says Edmunds.com, down from a peak of 2.1 percent in October.
One major reason is that hybrids typically cost $3,000-plus more than conventional cars. As a result, automakers in recent weeks have been slashing prices. Less than a year ago, Toyota dealers got full price for the Prius. Now you can immediately lease one for a slim $219 a month. Ford Motor Co. (F) is also cutting the price of the latest version of its Escape hybrid. In fact, in February, carmakers spent an average of $1,500 on incentives per hybrid, says Edmunds—triple what they laid out in January...more
March 7, 2007
FRAM Heavy
Duty Launches New Ad Campaign, Unveils New Packaging
Aftermarket
News - Truck Fleet News
DANBURY, CT -- FRAM Heavy Duty has unveiled a new look for its family of filtration products, including a redesigned advertising campaign and new product packaging.
The new advertising campaign includes three print ads and introduces the new FRAM Heavy Duty tagline: “Bring it on.” The campaign highlights the brand’s extensive experience in the heavy duty market while embracing its heritage in the retail sector. The campaign uses such headlines as, “Our version of cleanup on aisle 4” and “Our version of express checkout: 10 items or less” to emphasize the FRAM Heavy Duty brand's ability to participate in all aftermarket sectors as well as showcase the advanced Honeywell technologies integrated into the product line offering. The new ads will run in numerous trade magazines...more
Blackstone Team Due at Chrysler
Detroit Free Press
Blackstone Group, a high-profile buyout firm, is expected at Chrysler Group headquarters in Auburn Hills today to meet with CEO Tom LaSorda and his executive team.
Representatives from the private equity firm will meet for hours with the Chrysler Group as they hear about every aspect of the struggling U.S. automaker...more
Toyota: America's Best Car Company
Fortune Magazine
Two Tinny sedans left the port of Yokohama in August 1957, bound for California - the first exports from Toyota. The four-door clunkers flopped. The car, which looked like a brick with a roof on top, was prone to overheating and vibrated at speeds of more than 60 miles per hour. By late 1960, Toyota realized it had made a mistake and pulled the Toyopet Crown off the market.
A less determined company might never have returned after this humiliation. But Toyota came back a few years later with a better car and has gone from strength to strength ever since...more
Copycats and Criminals
Ward's AutoWorld
Imitation sometimes is called the sincerest form of flattery, but don't tell that to Ford Motor Co.
In addition to all its other woes, Ford says counterfeit replacement parts are costing it $1 billion annually in lost sales revenue around the world...more
Autoliv Mourns the Death of its General Counsel and the Chairman of its Estonian Subsidiary
STOCKHOLM, Sweden -- Autoliv's 51 percent owned subsidiary AS Norma in Estonia today announced with great sadness and in accordance with its obligation to the Tallinn Stock Exchange, that the Chairman Jorgen Svensson of its Supervisory Board passed away suddenly on March 1, 2007. He also served as Vice President for Legal Affairs, General Counsel and Secretary of Autoliv Inc. He joined Autoliv in 1989 and became Vice President for Legal Affairs in 1994 for Autoliv AB, the Swedish predecessor to Autoliv Inc. He reached the age of 45...more
March 6, 2007
WIX Filters
Announces "Party Like a Rock Star" Sweepstakes Winners
Aftermarket
News - Parts and Accessory News
GASTONIA, NC – Thanks to Affinia Group’s WIX Filters, Ken Erickson of Loveland, CO, and his three guests will get a taste of celebrity life during the March 11 NASCAR Nextel Cup UAW Daimler-Chrysler 400. Erickson was selected as the winner of the WIX Filters “Party Like a Rock Star” Sweepstakes. The giveaway was conducted in conjunction with Speedway Motorsports.
The foursome, wearing personalized leather WIX racing jackets, with pit passes, suite tickets and $14,000 in prize money in hand, will be escorted from their Las Vegas Strip hotel to the Las Vegas Motor Speedway in a private helicopter...more
IT TAKES TWO: Collaboration Among Trading Partners Can Be a Great Thing, Except When it's a One-Sided Exercise
Aftermarket News - News Extras
Of all the buzzwords bantered about the aftermarket, “collaboration” is among the ones I hear the most. Much of the rhetoric surrounding the concept of collaboration sounds nice on paper and in industry presentations, and in practice it’s had some success. Of course, success in all things collaborative requires two things: a pair of willing parties. In the world of business collaboration, it really does take two to tango, and like most dances, sometimes you have a willing partner, and sometimes you don’t.
A few weeks ago an independent jobber emailed me about his efforts to control returns costs through the magic of collaboration. Returns are something everyone deals with, and it seems like everyone is trying to find better ways to handle or reduce them. This particular jobber took a hard look at all the time he was spending on returns and the associated paperwork. He decided to do something proactive about it, figuring that his servicing warehouses would welcome some additional efficiencies. He bet that his warehouses would be willing collaborators in his effort to control costs...more
Economist to Discuss Survival in a Global Econmy at GAAS
Aftermarket News - Association & Legislative News
RESEARCH TRIANGLE PARK, NC -- William Strauss, senior economist and economic advisor, Federal Reserve Bank of Chicago will discuss “Survival in a Global Economy…Winners and Losers” on Tuesday, May 8, at the Global Automotive Aftermarket Symposium (GAAS). GAAS will be held at the Hyatt Regency O’Hare in Chicago.
Strauss is a senior economist and economic advisor in the economic research department at the Federal Reserve Bank of Chicago, which he joined in 1982. His chief responsibilities include analyzing the current performance of both the Midwest economy and the manufacturing sector for use in monetary policy. Strauss also produces the monthly Chicago Fed Midwest Manufacturing Index and organizes the Bank’s Economic Outlook Symposium and its Auto Outlook Symposium. He conducts several economic workshops and industrial roundtables throughout the year...more
Wall St. King in Hunt for Chrysler
The Detroit News
Blackstone Group, a private-equity giant with stakes in more than 100 companies, has emerged as a leading contender to buy the troubled U.S. division of German automaker DaimlerChrysler AG, people familiar with the situation told The Detroit News.
Blackstone, led by high-flying Chairman Stephen Schwarzman, is among a handful of corporate suitors that has been given access to confidential business data about Chrysler, which was put up for sale last month...more
Bosch Sees U.S. Car Market Stable at Best in 2007
Reuters
STUTTGART, Germany -- Robert Bosch GmbH expects the U.S. car market to be no more than flat this year, the head of its automotive technology division told Reuters.
"The growth perspectives are coming very clearly from emerging markets like China and India," Bernd Bohr said in an interview...more
NY Investors Buy Bristol Compressors
BRISTOL, Va. -- A New York investment firm is buying Bristol Compressors, the city's largest employer, Gov. Timothy M. Kaine's office announced Monday.
The purchase by KPS Capital Partners LP comes less than two weeks after the company announced it would lay off about 240 workers and close for two weeks because of unusually higher inventories. It was the second round of cutbacks in a year for the company...more
Pardus Fund Raises Valeo Stake to 10.57 Percent
Reuters
PARIS -- U.S. hedge fund Pardus has raised its stake in French car parts group Valeo to 10.57 percent, France's AMF stock market regulator said today.
In a regulatory filing, Pardus said it had 10.57 percent of Valeo's share capital and 10.36 percent of its voting rights...more
O'Reilly Posts Record Revenues and Earnings
Aftermarket Business
O’Reilly Automotive, Inc. announced record revenues and earnings for the fourth quarter and year ended Dec. 31, 2006, representing 14 consecutive years of record revenues and earnings and positive comparable store sales increases for O’Reilly since becoming a public company in April 1993.
Sales increased $238 million, or 11.6 percent, from $2.05 billion in 2005 to $2.28 billion for the year ended Dec. 31, 2006, with a 3.3 percent increase in same-store sales. Gross profit for the year ended Dec. 31, 2006, increased to $1.01 billion (44.1 percent of sales) from $893 million (43.6 percent of sales) for the year ended Dec. 31, 2005, representing an increase of 12.8 percent...more
CLARCOR Announces Acquisition of Majority Ownership in Sinfa SA
FRANKLIN, Tenn. -- CLARCOR Inc. announced that it has acquired an 80 percent ownership share in Sinfa SA, a manufacturer of automotive and heavy-duty engine filters based in Casablanca, Morocco. The remaining 20 percent ownership share will continue to be owned by the Company's current shareholders. Ali Moamah, Sinfa's current Chairman and President, and the Company's former principal shareholder, will continue to manage the Company. The acquisition is expected to be accretive to CLARCOR in 2007 and will be included in CLARCOR's Engine/Mobile segment. The terms of the acquisition were not disclosed...more
March 5, 2007
Bush Fuel
Economy Plan Has Rough Debut in Congress
Automotive
News
WASHINGTON -- The Bush administration estimates that its plan to improve fuel economy would raise the price of the average General Motors car $1,800 by 2017. In contrast, the price of the average Honda would increase less than $600.
President Bush wants to raise fuel economy standards by as much as 4 percent a year, to meet his goal of cutting U.S. gasoline consumption by 20 percent over 10 years. Data on the plan's possible disparate impact on automakers emerged last week during a House hearing...more
Toyota May Face Backlash from Congress
Associated Press
WASHINGTON -- From a high school auditorium near the birthplace of Elvis, Toyota was greeted like a hometown hero this week when it announced its eighth vehicle assembly plant in North America.
Students cheered as the automaker showed off a Highlander sport utility vehicle that will be built starting in 2010 at the $1.3 billion plant near Tupelo, Miss. Gov. Haley Barbour called Toyota Motor Corp. the "world's premiere auto manufacturer," and Sen. Trent Lott, the Senate's No. 2 Republican, promised "when you are in our constituency, we are warriors on your behalf."..more
Commentary: Kudos for Spitzer
The Wall Street Journal
Eliot Spitzer has debuted to mixed reviews as New York Governor, with our favorite episode being his recent remark to one legislator that "I'm a f------ steamroller." Such charm isn't news to our readers. But he's also moved a brick or two in the right direction in corrupt Albany, most recently in this week's deal to reform workers' compensation.
New York's current workers' comp system, with its combination of high costs and low benefits, is one of the nation's worst. Its average cost per claim of $19,737 leads all other states, according to the National Council on Compensation Insurance. At the same time, benefits paid to injured workers are capped at $400 a week, an amount that hasn't increased since 1992...more
Stocks Poised for Another Fall
The Wall Street Journal
U.S. stocks were poised for another tumble Monday after selloffs in Asia and Europe and amid lingering worries about the end of the 'carry trade' and the health of the subprime mortgage industry.
Less than two hours before the start of trading, Dow Jones Industrial Average futures were 90 points lower, S&P 500 futures were down 13.40 points at 1376 and Nasdaq 100 futures were off 15.2 points at 1711. Stock futures do not always accurately predict market moves after the opening bell...more
India's Mahindra Addresses US Market Entry6 Challenges
Automotive News
Auto importer Global Vehicles USA Inc. will face a double challenge when it introduces Indian-made Mahindra vehicles across the United States in 2008. First, it must launch the Mahindra brand and its products to Americans. It also must introduce consumers to the notion of India as a serious auto manufacturing center.
``We've never seen an Indian car here,'' says Tony DeMartino, CEO of Global's newly named ad agency, the Titan Agency, of Atlanta. ``If you think about it, a manufacturing company from India is an unfamiliar thing. There aren't many Indian products of any kind selling in the United States. So there's work to be done.''..more
March 2, 2007
The Pulse:
How Technicians Source Drums and Rotors
Aftermarket
News - News Extras
Each week, The Pulse provides insight into the buying, sourcing and brand-loyalty habits of counter professionals and professional technicians. This week, we look at technicians’ sourcing habits for drums and rotors.
Out of all the product categories discussed in Counterman magazine’s recent shop survey, drums and rotors were among the top products boasting strongest brand loyalty. In fact, 78 percent of technicians surveyed said they only use a brand they trust when installing drums and rotors. And, they are willing to pay a premium to get the best...more
Brilliance China Automotive to Sell 300,000 Cars in '07
Aftermarket News - OE News
SHENYANG, China -- Brilliance China Automotive Holdings Ltd., an automaker based Northeastern China, aims to sell 300,000 cars and earn revenues of more than $5.8 billion this year, up 41 percent versus 2006.
Meanwhile, the company said it will export 35,000 cars and obtain foreign exchanges worth $360 million. The company also made a progress plan for the coming three years. Its third overseas plant is set to kick off construction soon. The company expects to sell 500,000 cars and obtain sales revenue of $10 billion in 2010...more
At GM, Lutz's Bets Starting to Pay Off
Business Week
In an otherwise bleak month for Detroit's carmakers, General Motors (GM) had a strong month powered by a big boost from its rekindled Saturn division.
The long-starved Saturn brand saw sales rise 60 percent, helping GM post a 3.5 percent gain in a flat car market. New models like the Saturn Aura midsize sedan—voted the North American Car of the Year in January—and the Outlook crossover sport-utility vehicle seem to be winning converts. And there are signs that import buyers will give the brand a look...more
Widow Urges Senators to Ban Asbestos
Associated Press
WASHINGTON -- The widow of a congressman who died from asbestos-related cancer urged Congress on Thursday to pass legislation that would ban the substance.
Sue Vento told a Senate panel about the battle waged by her late husband, Bruce Vento, against malignant mesothelioma, a rare type of cancer caused by inhaling asbestos fibers. Vento, a Democratic congressman from Minnesota, died of the disease in 2000...more
Car Industry Boom Set to Slow in Central Europe
Reuters
BRATISLAVA -- Car parts makers from Asia and western Europe will keep flowing into central Europe in the coming months, but the automotive boom is fading as qualified labor becomes scarce, industry executives said today.
Industry majors such as General Motors, Toyota Motor Corp. and Volkswagen AG have turned the region into a car assembly powerhouse over the past few years, creating thousands of spin-off jobs producing parts...more
March 1, 2007
New Jersey
State Senate Introduces S-2553, Companion Bill to New Jersey Assembly's
'Right to Repair' Bill
Aftermarket
News - Association & Legislative News
New Jersey Senate Majority Leader Bernard Kenny (D-Hoboken) and Senator Joseph Kyrillos (R-Middletown) this week jointly introduced The Motor Vehicle Owners' Right to Repair Act, S-2553, a companion bill to the New Jersey Assembly's A-931.
Similar in language to A-931, this bill specifies that motor vehicle manufacturers would be responsible for providing to vehicle owners, repair facilities and the director of the Division of Consumer Affairs in the Department of Law and Public Safety, information necessary to diagnose, service or repair a motor vehicle. This would include any information used to diagnose, service, repair, activate, certify or install parts in a motor vehicle. Under the bill, manufacturers would not be required to disclose information that would reveal any trade secrets...more
Navistar Must Ship Engines to Ford
Detroit News
WASHINGTON -- Ford Motor Co. won a court order Wednesday to force a supplier of diesel engines to resume shipments to Ford's Louisville, Ky., truck plant, though operations will remain reduced until at least next week.
In a three-page ruling, Oakland County Circuit Judge John McDonald issued a temporary restraining order requiring Navistar International Corp. to resume production and shipment of its 6.4-liter diesel Ford PowerStroke engines used in Ford F-Series Super-Duty trucks. The supplier stopped shipping engines Monday over a pricing and warranty dispute...more
Bosch in Deal to Buy Tire-Service Equipment Outfits
Service Executive
Bosch has reached a deal to acquire two tire-service equipment companies: Beissbarth, a German company that specializes in chassis-measurement systems and tire-testing/tire-service equipment, and Sicam, an Italian company focusing on tire-servicing equipment. Together, the two companies generate sales of roughly $118 million and employ some 430 workers at two locations. This deal is subject to approval by antitrust authorities. If approved, Beissbarth and Sicam are to be integrated into the Bosch Diagnostics unit of the company’s automotive aftermarket division...more
Goodyear to Freeze U.S. Salaried Worker Pensions
Reuters
CHICAGO -- Goodyear Tire & Rubber Co. said today it would freeze pensions and require salaried retirees in the United States to contribute more for health coverage to cut costs.
Goodyear, the largest U.S. tire maker, said it would phase in those and other changes over two years, freezing the pension plan at the end of 2008 and replacing it with enhanced 401(k) savings accounts with company contributions...more
Bush Fuel Economy Plan Battered in First Outing
Automotive News
WASHINGTON -- President Bush's plan to raise fuel economy standards by as much as 4 percent a year took heavy flak in its first airing before Congress.
"It's a target. I don't know that we'll get there," Nicole Nason told a subcommittee of the House Energy and Commerce Committee. Nason is the administrator of the National Highway Traffic Safety Administration, the agency responsible for setting standards...more
February 28, 2007
Shares
of Auto Parts Companies Fall
Associated
Press
NEW YORK -- Shares of auto parts companies fell Tuesday on a bigger-than-expected drop in demand for durable goods, along with concerns about a possible slowdown in economic growth in the U.S. and China.
The Commerce Department reported demand for big-ticket manufactured goods fell by 7.8 percent in January, the sharpest drop in three months...more
CSK Auto Corporation Obtains Additional Two Month Trading Period from New York Stock
PHOENIX--CSK Auto Corporation announced today that the New York Stock Exchange granted the Company an additional two month period for continued listing and trading, subject to reassessment by the Exchange on an ongoing basis. Although the Company expects it can achieve an earlier filing date, this action provides the Company until April 30, 2007 to file its 2005 Annual Report on Form 10-K for its fiscal year ending January 29, 2006 with the Securities and Exchange Commission...more
Toyota Will Build Highlander in Miss. Plant -- and Maybe More
Automotive News
Toyota Motor Corp. will build a $1.3 billion SUV plant near Tupelo, Miss., about 100 miles southeast of Memphis, the automaker said today.
But evidence suggests the company is already planning to expand the plant...more
Chinese Carmaker, Chrysler near Deal
USA Today
Chrysler Group moved a step closer Tuesday to becoming first to bring Chinese-made cars to the USA.
German parent DaimlerChrysler (DCX) approved a deal to team with Chinese carmaking phenomenon Chery Motor to develop small cars that could be sold in the USA and Europe...more
R.L. Polk & Co.'s Ask the Industry Looks at Aftermarket Legislative Issues
Aftermarket News - Ask the Industry
Motor vehicle suppliers are the largest single manufacturing industry in the U.S. As such, this industry is not only greatly impacted by what goes on in Washington , but it can also be a great influence on Capitol Hill as well. There are a number of issues in debate right now that this industry must keep a close watch of – from environmental emissions regulations to small business health insurance plans and more.
The Motor & Equipment Manufacturers Association (MEMA) will hold its annual Legislative Summit May 16-17. Key issues slated for discussion at MEMA’s event include health care, raw material prices, tariffs, R&D tax credits, counterfeiting and others. The Automotive Aftermarket Industry Association (AAIA) will hold its bi-annual Legislative Summit June 12-13. Among the key issues slated to be addressed with state legislators and their representatives are the Motor Vehicle Owners’ Right to Repair Act and health insurance...more
O'Reilly Automotive Reports Fourth Quarter and Annual Earnings
Aftermarket News - Distribution & Service News
SPRINGFIELD, MO -- O’Reilly Automotive has announced record revenues and earnings for the fourth quarter and year ended Dec. 31, 2006. This represents 14 consecutive years of record revenues and earnings and positive comparable store sales increases for O’Reilly since becoming a public company in April 1993.
Sales increased $238 million, or 11.6 percent from $2.05 billion in 2005 to $2.28 billion for the year ended Dec. 31, 2006, with a 3.3 percent increase in same-store sales. Gross profit for the year increased to $1.01 billion (or 44.1 percent of sales) from $893 million (or 43.6 percent of sales) for the year ended Dec. 31, 2005, representing an increase of 12.8 percent. Operating, selling, general and administrative (OSG&A) expenses for the year increased to $724 million (or 31.7 percent of sales) from $640 million (or 31.3 percent of sales) for the year ended Dec. 31, 2005, representing an increase of 13.2 percent. The increase in the effective tax rate from 34.6 percent for the year ended Dec. 31, 2005 to 36.9 percent for the year ended Dec. 31, 2006, reflects a one-time benefit of $6.1 million from the favorable resolution of prior tax uncertainties in the third quarter of 2005...more
February 27, 2007
China
Automaker Looking at Chrysler Stake
AutoChannel
SHANGHAI, China -- The AP reported that Chinese automaker FAW Group Corp. refused comment Tuesday on a report it is considering bidding for a stake in DaimlerChrysler AG's ailing Chrysler Group.
Meanwhile, the Detroit News reported that Chrysler was seeking permission from its parent company to begin building small cars with China's Chery Automobile Co. for export to overseas markets...more
Navistar
Stops Work on Engine for Ford
Detroit
Free Press
In a showdown that could cause Ford Motor Co. more financial pain, Navistar International said Monday it has halted production of the Power Stroke diesel engine that Ford puts in its profitable and recently revamped Super Duty lineup.
The escalating dispute between the two companies, which was touched off when Ford sued Navistar over a contract disagreement last month, could eventually disrupt production of one of Ford's key new vehicles...more
Genuine
Parts Sees Record Growth in 2006, Automotive Group Reports Increases
As Well
Aftermarket
Business
Genuine Parts Company last week released its sales and earnings for the year ended Dec. 31, 2006, and reported record numbers.
“It was a terrific year for our organization,” Chairman, President and CEO Tom Gallagher told a group of analysts and others during a conference call to report the figures...more
Nissan
Joins Renault to Build Car Plant
Associated
Press
NEW DELHI -- Japan's Nissan Motor on Monday joined France's Renault SA's plan to build a car plant in southern India in collaboration with local automaker Mahindra & Mahindra amid strong demand for passenger cars from India's growing middle class.
The three companies will together invest about $900 million to build the plant near the southern Indian city of Chennai, said Pawan Goenka, president of the automotive division at Mahindra & Mahindra...more
AutoZone
Second Quarter Sales up 3.7 Percent; EPS up 15.5 Percent
Aftermarket
News - Collision Repair News
MEMPHIS, TN -- AutoZone has reported net sales of $1.3 billion for its second quarter (12 weeks) ended Feb. 10, up 3.7 percent from fiscal second quarter 2006. Same store sales, or sales for stores open at least one year, were down 0.3 percent for the quarter.
Net income for the quarter increased 6.2 percent over the same period last year to $103 million, while diluted earnings per share increased 15.5 percent to $1.45 per share from $1.25 per share reported in the year-ago quarter...more
Affinia
Group Launches New Website
Aftermarket
News - Parts and Accessory News
ANN ARBOR, MI – Affinia Group has re-launched its website -- http://www.affiniagroup.com – to provide insights into the company’s sense of mission and information on its industry-leading brands.
“Anyone interested in our company will find something of value on the website,” said Scott Howat, director of corporate communications for Affinia. “Whether you are an Affinia customer, observer of the replacement parts industry or a potential investor, the information you need is readily accessible.”..more
Sales
of Hybrid Cars Continue to Rise
Aftermarket News - News Extras
DETROIT -- U.S. sales of gas-electric hybrid vehicles rose 28 percent from 2005 to 2006, but the rate of growth is starting to slow, according to a company that analyzes automotive industry data.
Consumers bought 254,545 hybrids last year as gasoline prices hit $3 per gallon or more for much of the year. That is up from 199,148 in 2005, according to nationwide auto registration data compiled by R.L. Polk & Co. and released on Monday...more
February 26, 2007
Ford Heads
Off Supplier Problems
The
Detroit News
The domestic auto industry has been rocked by an epidemic of supplier bankruptcies in recent years. Each raises the specter of supply chain disruptions that could halt assembly lines and cost automakers millions in lost revenue.
To help key suppliers stay in business and keep the flow of parts coming, Ford Motor Co. is employing a secret weapon of sorts...more
European Suppliers Open Shop in Japan
Automotive News
TOKYO -- An increasing number of European suppliers are setting up shop in Japan.
They may not have the long Japanese history of Robert Bosch GmbH, but they desire to build sales to Japanese automakers...more
New Owners of Parts Plants have Mixed Results on Labor Concessions
Automotive News
The prospective owners of distressed auto supplier plants in Pennsylvania and Michigan are having mixed results in their efforts to obtain labor concessions.
This month, about 450 unionized workers at a Lear Corp. interiors plant in Carlisle, Pa., rejected a cut in wages and benefits of about $8 an hour for this year and next...more
China's Parts Exports to U.S. Rise 28 Percent
Automotive News
Mexico continues its reign as the United States' chief supplier of auto parts, but China is looming in its rearview mirror.
According to newly released data from the U.S. Commerce Department, imports of China-made components totaled $6.9 billion last year, up 28.1 percent...more
JP Morgan Readies Chrysler Prospectus
AutoBeat Daily
JPMorgan Chase & Co. has prepared a prospectus for would-be bidders for DaimlerChrysler AG’s Chrysler Group and will begin circulating it this week, according to news reports.
At least a few carmakers are expected to take a look, but it isn’t clear if any of them is seriously interested in buying. General Motors Corp., which is already believed to be in talks with DCX, is an exception. Volkswagen AG is the latest to join the “not interested” list, which also includes Fiat, Hyundai, Renault-Nissan and Toyota...more
Navistar Suspends Production of Ford Power Stroke Diesel Engines Over Commercial Terms Dispute
Aftermarket News - Truck Fleet News
WARRENVILE, IL -- Navistar International is suspending production of the Power Stroke diesel engine that it builds for Ford Motor Co. because the company claims that Ford has stopped honoring the terms of agreement under which the engines were built.
Navistar’s principal operating company, International Truck and Engine Corp., has been the exclusive diesel engine supplier for Ford’s heavy duty pickup trucks since 1979 and recently launched a new 6.4L Power Stroke diesel engine that meets 2007 emissions standards while increasing performance, durability and fuel economy...more
February 23, 2007
Affinia
Group's WIX Filtration Wins 2006 Supplier of Excellence Award from NAPA
Canada
Aftermarket
News - Parts and Accessory News
ANN ARBOR, MI -- Affinia has received NAPA Canada’s 2006 Supplier of Excellence Award, recognizing the company for most outstanding vendor support and service as well as marking the company’s second major award from channel partner NAPA for 2006.
Affinia’s NAPA Filters was presented with the 2006 Canadian Supplier of Excellence Award in Montreal on Feb. 12, and they received the 2006 U.S. Spirit of NAPA Award in December. The Spirit of NAPA Award and the Supplier of Excellence Award are two of the industry’s most prestigious honors...more
The Pulse: 61 Percent of Shops Only Buy Brands They Trust When Sourcing Chemical Lubricants
Aftermarket News - News Extras
Each week, The Pulse provides insight into the buying, sourcing and brand-loyalty habits of counter professionals and professional technicians. This week, we look at technicians’ sourcing habits for chemical lubricants.
As one of
the most common products a repair shop will have on hand, lubricants
are an important product line for technicians and shop owners. And shop
owners are fairly loyal when it comes to the brands they’ll use...more
February 22, 2007
Employee
Free Choice Act Marked, Headed for Vote
National
Association of Manufacturers
H.R. 800, deceptively entitled "The Employee Free Choice Act," was marked up earlier this week and is likely headed for a full house floor vote during the week of February 26.
Of this proposed legislation, Vice President Cheney said "[o]ur administration rejects any attempt to short-circuit the rights of workers. We will defend their right to vote yes or no by secret ballot, and their right to fair bargaining. H.R. 800 violates these principles, and if it is sent to the President, he will veto the bill."..more
Hedge Fund Again Says CSK Auto Should Be Sold
Reuters
NEW YORK - Hedge fund Karsch Capital Management LP on Wednesday reiterated its call that CSK Auto Corp. (CAO.N: Quote, Profile, Research) should put itself up for sale, saying it believes a private equity buyer could be found, according to a regulatory filing...more
Austria: BMW to Expand Diesel Engine Plant
Automotive World
BMW has announced a €14m (US$18.4m) expansion at its engine plant in Steyr, upper Austria. Work is expected to start in April and to be completed in December 2008.
According to the OEM, the expansion is aimed at meeting an increase in demand for diesel engines...more
China's Automakers Earn 10 Billion USD in 2006
Xinhua's China Economic Information Service
BEIJING -- China's automobile industry made a profit of 76.8 billion yuan (approximately 10 billion US dollars) in 2006, up 46 percent from the previous year, according to figures from the China Association of Automobile Manufacturers (CAAM).
A report by the CAAM said in 2006 China's auto industry sold 7.22 million auto vehicles, increasing 25 percent over 2005, and the country overtook Japan for the first time to become the world's second largest auto market...more
February 21, 2007
Fram,
Prestone and Bendix Team Up to Offer New Box Top Rewards Program
Aftermarket
News - Parts and Accessory News
DANBURY, CT -- Starting in March, the FRAM, Prestone and Bendix brands are teaming up to offer their technician customers the best in ultimate rewards with their newly enhanced Box Top Program.
Technicians that collect and send in proofs of purchase from eligible FRAM, Prestone and Bendix products will earn points that can be redeemed for a wide array of gifts. New prizes include a drive in an Indy-style race car at the Mario Andretti racing school, a flat screen TV, Swiss Army brand luggage, a Bose SoundDock, a GPS navigation system and more...more
MEMA Applauds Knollenberg's American Manufacturing Competitiveness Act
MEMA, the nation’s oldest and largest association representing automotive and heavy duty suppliers, offered its support of the American Manufacturing Competitiveness Act introduced on Feb. 16 by Rep. Joe Knollenberg (R-Mich.).
The legislation would allow American manufacturing companies that use internationally traded products to participate fully in trade cases before the U.S. Department of Commerce and the U.S. International Trade Commission (ITC). The current law excludes industrial users, including many small- and medium-sized manufacturing businesses, from the antidumping/countervailing duty (AD/CVD) cases brought before the ITC and Commerce Department...more
DaimlerChrysler: The Divorce
The Wall Street Journal
DaimlerChrysler last week hung a big "for sale" sign on the Chrysler part of its corporate corpus. It seems likely now that the deal hailed nine years ago as the harbinger of a new age of transnational industrialism now will be regarded as just another failed mega-merger.
Whether the marriage of Daimler-Benz AG and Chrysler Corp. was a flawed idea based on phantom synergies, or whether it was a brilliant concept whose execution was horribly botched, will be debated within the auto industry and in business schools for years to come. It's likely that both are true: The synergies were overestimated and the clash of cultures made things much worse...more
February 20, 2007
Volvo
Offers $1 Billion for Full Acquisition of Nissan Diesel
Associated
Press
TOKYO -- Swedish truck maker AB Volvo made a $1.07 billion offer Tuesday to take over Japan's Nissan Diesel in a strategic move aimed at gaining a solid presence in Asia.
The move, which would give Volvo full ownership of Nissan Diesel from the current 19 percent, highlights Volvo's ambitions in Asia, where the company has lacked a local brand while owning Mack Trucks in the U.S. and Renault Trucks in Europe...more
CSK Auto Announces Fourth Quarter and Preliminary 2006 Sales Results
Aftermarket News - Distribution & Service News
PHOENIX -- CSK Auto has announced preliminary sales results for the fourth quarter and fiscal year ended Feb. 4.
Fiscal 2006 had 53 weeks of sales (14 weeks in the fourth quarter); while the company’s fiscal year ended Jan. 29, 2006 (fiscal 2005) had 52 weeks (13 weeks in the fourth quarter). The net sales increases in both the fourth quarter and the fiscal 2006 year are primarily attributable to the sales from Murray’s Discount Auto Stores, which CSK acquired in December 2005, the additional week in the fourth quarter and the fiscal 2006 year and the opening of 55 net new stores in fiscal 2006...more
Counterman Magazine Makes Donation to NATEF
Aftermarket News - Association & Legislative News
AKRON, OH -- Counterman magazine has made a donation in the name of Harris Steinberg, the 2006 Counterperson of the Year Presented by WIX Filters, to the National Automotive Technicians Education Foundation (NATEF).
NATEF, founded in 1983, is an independent, non-profit organization that evaluates technician training programs against the standards developed by the automotive industry and recommend qualifying programs for certification by ASE, the National Institute for Automotive Service Excellence...more
February 19, 2007
FEV Engine
Plans $4.3-Million Expansion in Auburn Hills
Detroit Free
Press
FEV Engine Technology Inc. said it plans to spend $4.3 million to expand its Auburn Hills facilities.
The Germany-based engine, powertrain and fuel-cell systems research company said it will receive a $1.1-million Single Business tax credit over seven years from the Michigan Economic Development Corp...more
Pep Boys Reduces Interest Rate on Term Loan Facility
PHILADELPHIA--The Pep Boys - Manny, Moe & Jack, the nation's leading automotive aftermarket retail and service chain, announced that it has reduced the interest rate on its $320 million senior secured term loan facility due 2013 syndicated by Wachovia Capital Markets, LLC from London Interbank Offered Rate (LIBOR) plus 2.75 percent to LIBOR plus 2.00 percent...more
February 16, 2007
JAMA Chief
Says Yen May Remain Weak
AutoBeat
Daily
The head of the Japan Automobile Manufacturers Assn. says the yen's current weakness could presist—in contrast to what Japan’s finance officials have been hinting.
Fujio Cho, chairman of both JAMA and Toyota Motor Corp., says Europe’s economy is robust and the U.S. is also solid. But he says Japan’s consumer spending remains slack, which will continue to suppress the value of the yen.
February 15, 2007
Chrysler
Will Cut 13,000 Jobs, Close Delaware Plant
Automotive
News
The Chrysler group announced that it will cut 13,000 jobs; close its Newark, Del., assembly plant, cut 400,000 units of annual production capacity and spend $3 billion on new powertrains.
The 13,000 job cuts will occur through 2009. Of that total, 11,000 jobs will be hourly workers, with 9,000 jobs cut in the United States and 2,000 in Canada. The Chrysler group also plans to cut 2,000 salaried jobs -- 1,000 each this year and in 2008...more
Chrysler's Plan Good for Some Suppliers, Not So Good for Others
Detroit Free Press
Automotive suppliers, already bearing customer production cuts, spent Wednesday calculating what DaimlerChrysler AG's plan to make fewer vehicles and reduce vehicle platforms would mean to their operations.
But Chrysler's restructuring plan reveals that not all suppliers will be affected the same. In some instances, Chrysler will consolidate operations that may hurt suppliers. Elsewhere, it will invest billions that may benefit suppliers...more
Private Investor Acquires Former Honeywell Plant
Automotive News
DETROIT -- The private-equity firm Industrial Opportunity Partners on Tuesday, Feb. 13, said it had acquired the assets of a former Honeywell International auto parts manufacturing plant in Shelby, N.C., and renamed it FAS Controls Inc.
FAS Controls will manufacture pressure switches, valves, circuit breakers, mechanical switches, coils and solenoids for trucks and light vehicles...more
Delphi Reports Revenue of $6 Billion in Third Quarter 2006
Aftermarket News - Parts and Accessory News
TROY, MI -- Delphi has reported third quarter financial results for the period ended Sept. 30, 2006.
Delphi has reported revenue of $6 billion in the third quarter of 2006, down from $6.3 billion in the third quarter of 2005. The company reported revenue of $20 billion for the first nine months of 2006, down slightly from the comparable period in 2005...more
February 14, 2007
Commerce Secretary Lauds Record Exports in 2006
New Delhi, India – With today’s release of the 2006 annual trade numbers, U.S. Commerce Secretary Carlos M. Gutierrez issued the following statement praising American companies and workers for making 2006 a record year in exports, and encouraged Congress to support the President's trade agenda.
“In 2006, American workers and businesses had a banner export year with an all time record high of over $1.4 trillion in exports of goods and services. For the first time in nearly a decade, the growth rate of exports outpaced the growth rate of imports...more
Bush Supports Plug-In Hybrids
The Detroit News
ANN ARBOR -- In an effort to break the country's "oil addiction," the federal government needs to speed development of plug-in hybrid vehicles and new forms of ethanol, U.S. Secretary of Energy Samuel Bodman said Tuesday in a speech at the University of Michigan.
Bodman said advancements in both areas are needed to reach President Bush's goal of reducing America's gasoline consumption by 20 percent within the next 10 years...more
Advance Auto Parts to Open New Distribution Facility in Indiana, More than 600 Jobs to Be Created
Aftermarket News - Distribution & Service News
ROANOKE, VA -- Advance Auto Parts has announced plans to open a new distribution facility in Remington, IN.
The new distribution center will serve Advance's growing store base in the Midwest, and will play an integral role by providing capacity for future growth. The company expects that the facility will open in summer 2008, making it the ninth distribution center in the company's logistics network...more
Febraury 13, 2007
MEMA Offers
Support for Intellectual Property Rights Enforcement Act
Aftermarket
News - Association & Legislative News
WASHINGTON, DC – The Motor and Equipment Manufacturers Association (MEMA) has offered its support of the Intellectual Property Rights (IPR) Enforcement Act, introduced Feb. 7 by Sens. Evan Bayh (D-IN) and George Voinovich (R-OH).
“The automotive parts and components industry and our customers are being seriously affected by counterfeiting,” said Bob McKenna, president and CEO of MEMA. “Penetration of our domestic and overseas markets by counterfeit automotive products undercuts U.S. and foreign safety standards putting consumers at risk, damages brand reputation with our customers, cuts into sales and profits and steals good American jobs. Our challenges as an industry dealing with this issue are enormous, and we applaud Senators Bayh and Voinovich for sponsorships of this vital legislation to aid industry in this fight,” he added...more
CSK Auto Corporation Requests Additional One-Month Extension from New York Stock Exchange
PHOENIX--CSK Auto Corporation today announced it has submitted a request to the New York Stock Exchange for an additional one-month extension to file its 2005 Annual Report on Form 10-K for its fiscal year ended Jan. 29, 2006. As announced in November 2006, the exchange had previously granted the Company a four-month extension until Feb. 28, 2007 to file its 2005 Form 10-K with the Securities and Exchange Commission...more
Advance Auto Parts to 0perate New Distribution Facility in Remington, Indiana
ROANOKE, Va.--Advance Auto Parts, Inc., a leading automotive aftermarket retailer of parts, batteries, accessories and maintenance items, announced today plans to operate a new distribution facility in Remington, Indiana.
The new distribution center will serve Advance's growing store base in the Midwest, and play an integral role by providing capacity for future growth. The Company expects that the facility will open in summer 2008, making it the ninth distribution center in the company's logistics network...more
February 12, 2007
Automotive, Heavy Duty Suppliers Offer Support to the Intellectual Property Rights Enforcement Act
WASHINGTON, D.C. – The Motor and Equipment Manufacturers Association (MEMA), the nation’s oldest and largest association representing automotive and heavy duty suppliers, offered its support of the Intellectual Property Rights (IPR) Enforcement Act, introduced Feb. 7 by Sens. Evan Bayh (D-Ind.) and George Voinovich (R-Ohio)...more
Mileage Rules Harsher Than Bush's Plan May Hurt Automakers
Detroit Free Press
As Congress revs its debate on global warming, the auto industry will face growing momentum for fuel economy standards far stricter than what the Bush administration has pitched.
Mandating more efficient cars and trucks may be one of the few ideas with a broad consensus on Capitol Hill, appealing to global warming and energy security concerns. That momentum may overwhelm any initial objections from Detroit automakers about how higher standards could raise their costs even as they lose money and shed jobs in North America...more
February 9, 2007
Oklahoma
New Battleground in the Right-To-Repair Fight
Automotive
Week/The Greensheet
The Right to Repair scuffle has come to Oklahoma, where the MotorVehicle Owners' Right to Repair Act (HB 1584) is being sponsored by State Rep. Lucky Lamons (D-Tulsa).
It would allow motorists to choose where, how and by whom to have their vehicles repaired. It’s designed to protect car companies’ proprietary information, while allowing consumer choice...more
Oil Prices Near $60 Again
AutoBeat Daily
Oil futures, which fell below $60 per barrel at the beginning of the year and remained there, inched above that mark yesterday during intraday trading before closing at $59.71, up $2, on the New York Mercantile Exchange.
Analysts attribute the upswing to frigid weather in the north half of the U.S., production cutbacks by the Organization of the Petroleum Exporting Countries and new threats from Iran, the world’s fourth-largest oil exporter...more
February 8, 2007
Automakers
Express Opposition to Oklahoma right to Repair Bill
Aftermarket
News - Association & Legislative News
ARLINGTON, VA -- The Association of International Automobile Manufacturers Inc. (AIAM) announced its opposition to the Motor Vehicle Owners Right to Repair Act (H.B. 1584) bill that was recently introduced in the Oklahoma House of Representatives.
In a letter sent to Oklahoma state legislators, AIAM said the bill was unnecessary, counterproductive and did not adequately protect the intellectual property of automakers...more
White House Submits New Fuel Economy Plan
Detroit Free Press
WASHINGTON -- The Bush administration has sent Congress its proposal for revising fuel economy standards for cars and trucks, with U.S. Rep. John Dingell's committee pledging to hold hearings on the plans in a couple of weeks.
President George W. Bush has said that giving his administration new powers to raise standards was a key part of his "20 in 10" plan to reduce the total amount of gasoline used in the United States by 20 percent by 2017. That would save 8.5 billion gallons of gas a year through an expected 4 percent annual increase in vehicle fuel economy, raising mileage standards to an average of 30 m.p.g. for trucks and 37 m.p.g. for cars...more
Europe Sets CO2 Limits for Cars
AutoBeat Daily
As expected, the European Commission has ruled that cars sold in
Europe by 2012 must emit about 20 percent less carbon dioxide than they do now.
The EC had been considering a rule to slash CO2 emissions by 26 percent. But OEMs and the German government argued that such a limit would wreak havoc on the European auto industry...more
February 5, 2007
DENSO
Says Third Quarter Global Consolidated Sales are Up 14.7 Percent
Aftermarket
News - Parts and Accessory News
TOKYO -- DENSO Corp. has announced global financial results for the third quarter ended Dec. 31, 2006. Consolidated net sales totaled $7.8 billion, a 14.7 percent increase from the previous year. Operating income totaled $748 million, a 3.3 percent increase from the previous year.
Income before income taxes and minority interests for the period totaled $819.4 million, a 4.4 percent increase from the previous year. Consolidated net income totaled $518 million, a 9 percent increase from the previous year...more
Clarcor Buys Fiber Filtration Business
FRANKLIN, Tenn. -- CLARCOR Inc. today announced that it has acquired the synthetic fibers filtration business from the Newton Tool & Manufacturing Co., a privately-owned engineering and machining company based in Swedesboro, New Jersey. The synthetic fibers filtration business, including all of the related production equipment, will be moved into CLARCOR’s Purolator EFP operations in Houston, Texas and Shelby, North Carolina. The terms of the acquisition were not disclosed...more
ArvinMeritor to Sell Emissions Technologies Group
AftermarketNews.com
TROY, MI -- ArvinMeritor has signed a definitive agreement to sell its Emissions Technologies business group to One Equity Partners (OEP), an equity investment firm based in New York.
Cash and other consideration total approximately $310 million. The transaction is expected to be completed in the third quarter of fiscal year 2007...more
February 2, 2007
A New
Big 3?
Detroit
News
For the first time in recent memory, Ford Motor Co. fell to No. 4 in U.S. auto sales behind General Motors Corp., Toyota Motor Corp., and DaimlerChrysler AG's Chrysler Group, demonstrating just how far the automaker has fallen as it battles to stop a decade-long decline in market share.
At the same time, the Detroit automakers' share of the American auto market fell to just 50.6 percent in January as they narrowly avoided selling fewer cars and trucks than foreign makers in a month for the first time ever..more
Calif. Aims to Settle Emissions Lawsuit
Associated Press
SAN FRANCISCO -- The state's new attorney general is reaching out to automakers as he continues a federal lawsuit that seeks millions of dollars for the greenhouse gases produced by their vehicles.
Attorney General Jerry Brown sent a letter Wednesday to attorneys for the six major automakers California is suing, asking to meet personally with the chief executives of General Motors, Ford, DaimlerChrysler, Toyota, Honda and Nissan...more
February 1, 2007
Caterpillar
Reman Acquires Remy Subsidiary Companies
Truckinginfo.com
Caterpillar Inc. and Remy International Inc. announced today that Caterpillar is acquiring certain assets of Franklin Power Products Inc. and International Fuel Systems Inc., subsidiaries of Remy International. The deal is expected to close soon and is subject to the completion of legal and regulatory requirements...more
Polk Acquires AIC (R) Price and Specification Business from Autobytel
SOUTHFIELD, Mich., Feb. 1 -- Autobytel Inc. and R. L. Polk & Co. today announced Polk has purchased Automotive Information Center (AIC)(R), the price and specification business of Autobytel.
Through this acquisition, Polk will strengthen its platform for growth within the price and specification sector by adding key North American market planning information to its expanding global network of resources. Under the terms of the deal, Autobytel received license to use AIC data with its Internet business, including consumer sites such as Autobytel.com, Autoweb.com, CarSmart.com, and Car.com...more
As Fed Holds Steady, Bernanke Gains Praise
The Wall Street Journal
As he finishes his first year as Federal Reserve chairman, Ben Bernanke has dispelled early doubts about his ability to steer the world's largest economy. But his biggest challenge -- bringing the economy in for a soft landing -- lies ahead.
Dow Jones Online's Ed Crane interviews WSJ reporter Greg Ip about the Federal Reserve's decision to leave rates unchanged...more
Oklahoma State Legislature Proposes State 'Right to Repair' Bill
Aftermarket News - Association & Legislative News
Oklahoma’s House of Representatives has proposed its own version of the Right to Repair Act. House Bill 1584, known as the “Motor Vehicle Owners Right to Repair Act,” was introduced Jan. 3 by Rep. Lucky Lamons (D).
Text of the bill states that the Legislature finds that limiting access to vehicle repair information limits consumer choice and thus limits competition. It also states that the “ability to diagnose, service and repair a motor vehicle in a timely, reliable and affordable manner is essential to the safety and well-being of consumers in this state."...more
UL To Deliver AIAG Gap Assessment Services to Prepare Chinese Auto Parts Suppliers for Entry into N.A. Auto Market
Aftermarket News - Parts and Accessory News
SHANGHAI, China -- The Automotive Industry Action Group (AIAG) has announced that Underwriters Laboratories, Inc. (UL), an independent, not-for-profit product safety testing and certification organization, will provide AIAG Gap Assessment Services to automotive parts and accessories manufacturers in China to facilitate North American market access for these suppliers.
A gap assessment (or gap analysis) is a business evaluation tool enabling a company to compare its actual performance with its potential performance. This provides the company with insight into areas that offer opportunity for improvement. The gap assessment process involves determining, documenting and analyzing the variance between business requirements and current capabilities...more
UAW Losing Pay Edge: Foreign Automakers' Bonuses Boost Wages in U.S. Plants as Detroit Car Companies Struggle
Aftermarket news - OE News
The UAW is losing its edge in pay compared with non-unionized U.S. assembly plant workers for foreign companies, even as Detroit automakers aim for deeper benefit cuts to trim their losses.
In at least one case last year, workers for a foreign automaker for the first time averaged more in base pay and bonuses than UAW members working for domestic automakers, according to an economist for the Center for Automotive Research and figures supplied to the Free Press by auto companies...more
Cummins Completes Third Consecutive Year of Record Sales and Profits
Aftermarket News - Truck Fleet News
COLUMBUS, IN -- Cummins has reported record sales and earnings for the fourth quarter and all of 2006, marking the third consecutive year of record financial performance for the company.
Cummins eclipsed
$3 billion in quarterly sales for the first time during the fourth quarter.
All four of the company’s operating segments posted record revenues,
and Cummins’ Power Generation and Distribution businesses reported
record Segment EBIT in the fourth quarter, as well as for the entire
year...more
January 31, 2007
Deadline
Approaching for Fourth Annual AASA Top Aftermarket Suppliers List
Aftermarket
News - Association & Legislative News
RESEARCH TRIANGLE PARK , NC and AKRON , OH -- Applications for the 2007 “Top Automotive Aftermarket Suppliers List,” published by AASA and p rod uced by Babcox Publications, are due by Friday, March 16.
This annual multi-page, full-color publication will feature insightful information on the largest suppliers to the automotive aftermarket. Participation in the publication is free and the form to participate is available online. Click here to submit your company’s information...more
Germany Resists EU Plans for Blanket CO2 Cap on Cars
Reuters
BERLIN -- Germany said today it would resist attempts from the European Commission to impose a general cap on auto emissions which would apply to all cars.
Chancellor Angela Merkel said in a speech to economists and business leaders she regretted that voluntary carbon dioxide (CO2) emissions targets were not being met...more
Automakers Split over Fuel-Saving Strategies
Automotive News
WASHINGTON - Automakers presented sharply conflicting views Tuesday to a Senate committee looking for ways to cut vehicle fuel consumption.
Lawmakers of both parties expressed interest in raising fuel economy standards. They did not indicate how soon they might consider legislation...more
January 30, 2007
Congress
Tackles Fuel Economy for Cars, Trucks
Detroit
Free Press
WASHINGTON -- When the new Congress gavels in its first hearing on higher fuel economy standards for cars and trucks today, the U.S. auto industry will be ready to defend its positions, but waiting to lay out its offense until the debate unfolds.
According to auto industry executives, the debate over fuel economy will be their top priority in the coming months.
They may get some help from the United Auto Workers, too. In the past, the union opposed suggested changes that it contended would threaten jobs in the United States...more
January 29, 2007
Freightliner
to Lay Off North Carolina Workers
AutoBeat
Daily
Freightliner LLC plans to cut one shift and lay off as many as 1,180 workers at its Cleveland, N.C., heavy-duty truck assembly plant on April 1 because of declining demand.
The company, a unit of DaimlerChrysler AG, expects its U.S. sales to plummet 39 percent this year. The reason: tougher diesel emission standards in the U.S. and Canada that took effect on Jan. 1. Freightliner says the technology required to meet the regulations has pushed up its truck prices by $4,600-$12,500...more
Custom Parts Might Derail Vehicle Stability
Detroit News
WASHINGTON -- Millions of vehicles could have malfunctioning electronic stability systems if drivers have customized their vehicles with add-on parts and accessories, a trade association says.
The Las Vegas-based Specialty Equipment Market Association, or SEMA, says the National Highway Transportation Safety Administration's proposal to mandate that all vehicles be equipped with the anti-rollover technology could prevent owners from customizing their cars and trucks or make the stability system inoperative. SEMA and NHTSA officials recently met to discuss the issue...more
Dingell Wants Fuel Economy Documents
Detroit News
WASHINGTON -- U.S. Rep. John Dingell, D-Dearborn, chairman of the House Energy and Commerce Committee, turned up the heat on the White House on Thursday over its proposal to require automakers to dramatically increase the fuel efficiency of their vehicle fleets.
Dingell asked that key documents used to create the proposed changes to the Corporate Average Fuel Economy standards for cars and trucks be turned over by Feb. 1...more
Key Ford Hybrid Exec Joins Arvinmeritor
Automotive News
DETROIT - The exodus of top engineering talent from Ford Motor Co. continues.
Tom Watson, who spent the past eight years working on Ford's hybrid powertrains, joined his old boss Phil Martens at supplier ArvinMeritor Inc. in early January...more
January 26, 2007
U.S. Chamber,
Coalition Issue Best Practices on How Companies Can Combat Counterfeiting
and Piracy
Aftermarket
News
WASHINGTON, DC — The U.S. Chamber of Commerce and the Coalition Against Counterfeiting and Piracy this week released recommendations on steps companies can take to protect their supply chains from counterfeiters and modern-day pirates.
The Chamber’s new “No Trade in Fakes Supply Chain Tool Kit: Protecting Businesses, Consumers, and Brand Integrity,” includes best practice guidelines and seven case studies of companies that devised and implemented aggressive techniques to fight counterfeiting and piracy and protect themselves and their customers. Participating companies included Bendix Commercial Vehicle Systems, New Balance, Ford and Purdue Pharma. The tool kit will be distributed to more than a million members of the business community over the next month...more
MAHLE to Expand Valve Train Operation in China
Aftermarket News
STUTTGART, GERMANY -- On Jan. 16, MAHLE celebrated the grand opening of the new valve company MAHLE Tri-Ring Valve Train (Hubei) Co., Ltd. in Macheng, China.
The business is a joint venture in which MAHLE holds 60 percent of the shares and Hubei Tri-Ring Co. Limited holds 40 percent...more
ALLDATA's Cracking Down on Software Piracy
Aftermarket News
ELK GROVE, CA – ALLDATA wants repair shop owners to be aware that copying and/or distributing copyrighted software illegally isn’t the only way one can be guilty of piracy. Even being in possession of software that has been illegally copied is piracy.
To protect
their customers and product integrity, ALLDATA is aggressively pursuing
civil and criminal action against all software pirates...more
Clarcor Opening Pennsylvania Plant
bizjournals.com
Clarcor Air Filtration Products is opening a manufacturing facility in Pennsylvania.
CLC Air, which is owned by Franklin-based Clarcor, makes air filtration products for the commercial, industrial and institutional markets. The company's new 250,000-square-foot plant - which will also serve as a distribution center - will be in Pittston, Pa., which is located southwest of Scranton...more
Ford Reports Record Net Loss of $12.7 Billion in 2006
The Detroit News
DEARBORN -- Ford Motor Co. announced today that it lost more than $12.7 billion last year, the biggest annual deficit in the company's 103-year history.
Before today, Ford's worst year had been 1992, when it reported a loss of $7.4 billion. Today's figure not only dwarfed that grim sum, but also surpassed the $10.6 billion loss rival General Motors Corp. reported for 2005...more
January 25, 2007
UAW May
Run Some Retiree Benefits
The
Wall Street Journal
Detroit's auto makers and the United Auto Workers are examining a potentially revolutionary plan that would shift to the union responsibility for tens of billions of dollars in retiree health-care liabilities, according to people familiar with the matter...more
Bush Seeks Cutback in Gas Consumption
Associated Press
WASHINGTON
-- President Bush on Tuesday asked Congress to help the nation reduce
its gasoline consumption during the next ten years, outlining an energy
plan that would seek increased fuel economy standards from the auto
industry.
"It is in our vital interest to diversify America's energy supply - and the way forward is through technology," Bush said in his State of the Union address before Congress...more
January 24, 2007
Bush Pushes
Ethanol, CAFE Changes
Automotive
News
WASHINGTON -- President Bush is calling for a dramatic increase in the amount of ethanol the nation produces as a substitute for gasoline.
The president, in his State of the Union address Tuesday night, said he wants production of alternative and renewable fuels to reach 35 billion gallons a year by 2017 -- about five times the current level...more
EU Chief Backs Rules to Force Car Makers to Cut CO2 Emissions
BRUSSELS, Belgium -- European Commission President Jose Manuel Barroso supports forcing car makers to cut emissions of carbon dioxide, EU officials said Tuesday, deflecting questions over a split in the EU executive on proposed legislation. The split forced a postponement of a decision by the EU executive that had been scheduled for Wednesday...more
January 23, 2007
HDMA's
2007 Heavy Duty Truck Maintenance Study Now Available
AftermarketNews
- Association & Legislative News
The Heavy Duty Manufacturers Association’s annual research study, “Heavy Duty Truck Maintenance in the USA,” is now available. The 2007 study is designed to be a reliable tool for trend analysis regarding heavy duty truck user repair factors, heavy duty truck use, changes in buying patterns and service work performance.
This year’s report has been expanded to include even more information and new sections include in-depth reports of international trade in motor vehicle parts and exports of used trucks. In addition, a survey of heavy duty distributors reveals characteristics of the supply chain relationships in the heavy duty aftermarket...more
Europe Suppliers Struggle in N.A.
Automotive News
European suppliers that expanded their businesses in North America to follow their Detroit 3 customers during better days are backing away from U.S. automakers and setting their sights on Asian competitors.
"Of course we are worried about the situation of the Big 3 in the U.S.," says Mats Odman, vice president of corporate communications for Autoliv Inc. in Stockholm...more
Ford Loses $1 Billion a Year on Counterfeit Auto Parts
Reuters
DETROIT -- Ford Motor Co. is losing about $1 billion annually from counterfeit auto parts, according to a study by the U.S. Chamber of Commerce.
The figure was disclosed by Joe Wiegand, Ford's global brand protection manager, in the study that will be released on Wednesday...more
UAW Builds up $874 Million Strike Fund
The Detroit News
The United Auto Workers has amassed a war chest worth nearly $900 million and is keeping a grip on spending as the union and Detroit automakers brace for what promises to be some of the toughest contract talks ever.
The UAW's strike fund had a near-record balance of $874 million at the end of November. Union leaders disclosed the figure Friday during an online question-and-answer session with members...more
Judge Places Hold On Enforcement of California Greenhouse-Gas Rules
Automotive News
A federal court in California has halted temporarily the state's landmark effort to limit greenhouse-gas emissions by new cars and trucks.
U.S. District Judge Anthony Ishii said last week that, under the Clean Air Act, California cannot enforce its rules without federal approval...more
Rating for O'Reilly Automotive Rises
Automotive News
NEW YORK -- A Deutsche Bank analyst boosted his rating for auto parts retailer O'Reilly Automotive Inc. to "Buy" from "Hold," citing improved economic and industry conditions. Mike Baker said that lower gasoline prices are prompting motorists to drive farther and more often. In addition, there are industry signs that consumers are shifting back to normalized shopping patterns, after several soft quarters, he said. The company also faces easy sales comparisons to the prior year's results, which were hurt by tough macro economic issues, such as high gas prices, he said. Baker also increased his earnings estimates for the company and boosted his price target by $9 to $39. O'Reilly shares rose 73 cents, or 2.3 percent, to $33.13 in midday trading on the Nasdaq Stock Market...more
Detroit has a craving for Chinese
USA TODAY
DETROIT —
A generation ago, the arrival of Japanese cars here was greeted with
sledge hammers. Auto dealers selling domestic brands gleefully offered
customers visiting the sales lots a whack at one of the little imports.
Some companies and Detroit-area union locals banned foreign cars from
parking lots. A bumper sticker declared "Toyota, Datsun, Pearl
Harbor." The hostility was prompted, at least in part, by fears
that for every auto industry job created in Japan, one was being lost
in America. It inspired a wave of protectionism that has made Japanese
cars a hard-sell in much of the Midwest for decades. Now, the Chinese
are poised to become the fourth wave of exporters of inexpensive cars
to American shores — after the Germans, Japanese and South Koreans.
And how is Detroit responding this time? With open arms. Instead of
trying to throw up new barriers, Michigan seems to be taking the attitude
that if you can't beat them, at least invite them to come and sink money
into the beleaguered state's economy. "We want Chinese automakers
and their investment here," Michigan Gov. Jennifer Granholm declared
as she toured the North American International Auto Show here earlier
this month. "We want to make sure we take advantage of the global
economy and are not just victimized by it." Instead of viewing
imports as a threat, state and local officials say they see them as
a path to enhancing Detroit's role as the center of the automotive universe...more
January 22, 2007
Suppliers
Losing Contracts to Rivals
AftermarketNews
- Parts and Accessory News
Bankruptcy is not the worst thing troubled automotive suppliers have to contend with. Even as these distressed suppliers work to restructure, they also must deal with a growing trend: automakers stripping away contracts and giving them to healthier suppliers.
Automotive suppliers, already squeezed by rising raw material prices and customer production cuts, are finding the gap widening between their healthy and weak peers. The trend is driven by automakers' desire to safeguard their operations by ensuring a continuous flow of parts...more
Snarls Delay Ford Supplier Plan
Automotive News
DETROIT -- When Ford Motor Co. purchasing chief Tony Brown unveiled his initiative to improve supplier collaboration in September 2005, he set a number of admirable targets.
Today, with Ford's Way Forward turnaround plan hitting unforeseen bumps in the road, some of Brown's targets have been delayed and others are being tweaked...more
Denso Foresees 8-10 Percent Growth in N. America
Automotive News
Despite expectations for a tough year for some of its North American customers and rivals, Denso International America Inc. anticipates as much as a double-digit advance in sales this year...more
January 19, 2007
Reports
6.8 Percent Increase in Fourth Quarter Profits
AftermarketNews - Parts and Accessory News
FRANKLIN, TN -- Clarcor Inc., which makes industrial and automotive filters, said Wednesday its fourth-quarter profit rose 6.8 percent, as cost declines offset a drop in revenue.
For the quarter ended Dec. 2, Clarcor earned $26.7 million, or 52 cents per share, compared with $25 million, or 48 cents per share, for the same quarter in 2005. Revenue fell 3.7 percent to $232.6 million from $241.5 million in the year-ago period. Analysts polled by Thomson Financial had expected a profit of 46 cents per share on $244.6 million in revenue...more
Chinese Supplier Portal Opens
Automotive News
DETROIT -- Tier 1 auto suppliers looking to purchase from Chinese suppliers now have an online source, GlobalAutoSourcing.com.
The portal, which went live on Thursday, was developed by GlobalAutoIndustry.com, of Troy, Mich., and Shanghai KOWIN Automotive Components Co. Ltd., the global sourcing unit of Chery Automobile Co.The portal is designed to help Tier 1 suppliers find qualified Chinese suppliers, says Michael DaMour, portal director. It is "is an accelerator to help a supplier to begin sourcing from China," DaMour told Automotive News...more
China's Great Wall Builds New Engine Plant
Autobeat Daily
China’s Great Wall Motor Co. is building a $257 million engine plant to allow it to increase volume in China and overseas, Reuters reports.
It says the plant in the northern province of Hebei is to begin production in the first half of 2008 with an overall annual capacity of 400,000 gasoline- and diesel-powered engines...more
EU May Force Cuts In Auto Emissions
The Wall Street Journal
BRUSSELS -- The European Commission's environment department wants to impose mandatory limits on car emissions, replacing the voluntary standards currently in place, a document seen Thursday said.
The proposals would require auto makers to cut carbon-dioxide emissions from new cars to 120 grams a kilometer by 2012. Carbon-dioxide emissions from vans would be cut to 175 grams a kilometer in 2012 and to 160 grams a kilometer by 2015...more
U.S. Heads towards $2-Per-Gallon Gasoline
Autobeat Daily
Declining crude oil prices are likely to push down average U.S. gasoline prices to about $2 per gallon within a few weeks, predicts the U.S. Energy Information Administration.
A gallon of regular-grade gasoline opens today at an average $2.21, down 10 cents from a month ago, according to the AAA Daily Fuel Gauge Report...more
January 18, 2007
MEMA Releases
New Study on the Impact of the Parts Supplier Industry
AftermarketNews
- Association & Legislative News
Yesterday in Dearborn, MI, the Motor & Equipment Manufacturer Association (MEMA) in collaboration with the Center for Auomotive Research (CAR) released a new study the establishes the U.S. motor vehicle parts supplier industry as the nation's leading manuacturing sector, contributing approximately 4.5 million jobs nationwide and providing more jobs than any other sector in seven states...more
Toyota Expects to Build More U.S. Plants
AftermaketNews - OE News
Toyota Motor Corp. is studying its projected 10-year growth in the United States and the plants it will need to build, but it has not decided where those plants will go or how many will be needed, said Jim Lentz, executive vice president of the carmaker's U.S. sales arm...more
Suppliers Will Collaborate in Giant Chat Room
Automotive News
DETROIT -- North American auto suppliers can participate in what could be called the largest auto industry internet chat room March 7-10.
The event, named the Automotive Supplier Jam, is the brainchild of IBM Corp. and the Original Equipment Suppliers Association. It is designed as a 72-hour brainstorming session to identify solutions to common industry problems...more
Bosch: Low-Price Parts in Low-Cost Countries is Not Enough
Automotive News
DETROIT -- The Robert Bosch Corp. can compete with the new low-cost suppliers coming from India, South Korea and China, its chairman said.
Bosch has good manufacturing bases in India and China, but it also can provide automakers with greater value by offering them system engineering and other services, Bosch Chairman Peter Marks said...more
Suppliers Losing Contracts to Rivals
Setroit Free Press
Bankruptcy is not the worst thing troubled automotive suppliers have to contend with.
Even as they distressed suppliers work to restructive, they also must deal with a growing trend: automakers stripping away contracts and giving them to healthier suppliers...more
More Supplier Bankruptcies Loom
The Detroit News
DEARBORN -- February could bring more auto supplier bankruptcies than ever before, according to Ford Motor Co.'s global purchasing chief.
"Industry experts and others at restructuring firms working with financially troubled suppliers expect we may well see in February the largest number of bankruptcy filings in the U.S. and Europe ever," Ford's Tony Brown said Wednesday during the Automotive News World Congress...more
January 17, 2007
Auto Suppliers Largest U.S. Manufacturing Sector
DETROIT - U.S. motor vehicle suppliers comprise the nation's leading manufacturing sector, accounting for 4.5 million jobs nationwide and providing more jobs than any other sector in seven states, according to findings of a landmark study of the industry by the Motor & Equipment Manufacturers Association (MEMA)...more
Suppliers Seek More Clout
Detroit News
In a more designed to win more political clout for auto parts suppliers, a major trade group representing parts makers will release a study today that found the industry employs more Americans than any other manufacturing sector, accounting for 4.5 million jobs...more
NASCAR Champion Parsons Dies of Cancer-Related Complications
Associated Press
Benny Parsons, a taxi driver who became a NASCAR champion in 1973, died Tuesday from lung-cancer complications, his son Kieth said. He was 65.
Parsons died in Charlotte, North Carolina, where he had been hospitalized since Decemer 26...more
ALLDATA Selected as Trade Magazine Readers' Favorite
AftermarketNews - Distribution & Service News
ELK GROVE, CA -- ALLDATA, a provider of diagnostic, repair and estimating information to the professional automotive service industry, has received the prestigious 2006 Underhood Service and ImportCar Readers' Choice Award...more
MEMA Promotes Jeremy Denton to Director, Management Services Group
AftermarketNews - Personnel News
RESEARCH TRIANGLE PARK, NC - Jeremy Denton has been promoted to director of the Motor & Equipment Manufacturers Association Management Services Group (MEMA MSG).
"I am pleased to announce Jeremy's new role within MEMA MSG," said Brent Hazelett, MEMA vice president of operations. "I know that Jeremy will continue his excellent track record of superior service to our members."..more
January 16, 2007
MEMA to
Release Study on Impact of Auto Supppliers Tomorrow in Detroit
AftermarketNews - Association & Legislative News
WASHINGTON, DC - The Motor & Equipment Manufacturers Association (MEMA) tomorrow will release the findings of a new study that examines the impact of the motor vehicle supplier industry. The study will be released tomorrow at a news conference in Dearborn, MI. the editorial staff of aftermarketNews, which is attending the news conference, will report on the study's findings on Thursday...more
China's Merger Boom Continues
The Wall Street Journal
BEIJING -- China had more than a stock-market boom in 2006. It also had a surge in mergers and acquisitions as both domestic and foreign companies moved to add Chinese assets...more
UAW: Expect Sacrifice
Detroit News
DETROIT -- The message coming down from the United Auto Workers' top ranks as they prepare for this year's contract talks is not the hard-line rhetoric of the past.
Labor leaders are talking to rank-and-file workers about sacrifice and the need to help Detroit automakers become competitive again...more
R. L. Polk & Co.'s Ask the Industry Looks at the Hot Performance Items for 2007
AftermarketNews - Ask The Industry
This is the time of year that major corporations, automotive or otherwise, unveil new toys and new technologies for consumers. Keeping with that theme, for this week's Ask the Industry we asked several aftermarket professionals well versed in the performance and accessories market what they anticipate will be the hot item(s) in the performance segment this year...more
January 15, 2007
Rising
Costs in China Hamper Parts Exports
Automotive
News
DETROIT -- Three years ago, the auto industry buzzed with talk of buying inexpensive parts from china. General Motors and other companies announced ambitious plans to purchase billions of dollars worth of parts there every year.
Now reality is setting in...more
Ford is Ahead of Schedule on Overhaul, CEO Says
The Wall Street Journal
Ford Motor Co. Chief Executive Alan Mulally said the auto maker is moving faster than expected to shrink U.S. capacity to better match market demand.
Ford, which had losses of about $7 billion in the first nine months of 2006, is shaving more than 30,000 U.S. hourly jobs this year and closing seven assembly plants by 2010 in an effort to stem losses and reverse negative cash flow...more
January 12, 2007
Suppliers
Expect Modest Uptick This Year
Autobeat
Daily
Auto suppliers addressing an auto analysts convention in Dearborn, Mich., yesterday describe 2007 as a year of gradual rebuilding.
They also expect raw materials prices to ease this year. And with North American auto production likely to be flat or lower, they note the performance of their overseas units will be key to growth...more
China Surging in Car Market
Associated Press
BEIJING -- China surged past Japan to become the world's No. 2 vehicle market after the United States last year as car purchases by newly affluent drivers jumped 37 percent, the Chinese auto industry association said Thursday...more
California Emissions Target Hands Task to Industry
The Wall Street Journal
California Gov. Arnold Schwarzenegger's plan to require a 10 percent cut in the carbon content of its transportation fuels embodies a strategy to combat global warming that is likely to become more common around the world.
Instead of mandating the rollout of specific technologies, such as electric cars or ethanol pumps, California has set an emissions-related target and says it will leave it up to industry to figure out how to meet it...more
Checked Vehicles Show Consumer Neglect
Bethesda, Md.- Results of vehicle check-up events during Car Care Aware Fairs across the country in April and October 2006 revealed that nearly nine out of 10 vehicles need service or parts, underscoring the huge untapped DIY and DIFM sales opportunities for the automotive aftermarket, the Car Care Council reported. The unsatisfactory condition of vehicles also reinforces the continued need for consumer education about the benefits of regular vehicle care, maintenance and repair...more
January 11, 2007
Chavez
Moves Venezuela toward Socialism
Associated
Press
CARACAS, Venezuela -- President Hugo Chevez says nothing can stop him from swiftly transforming Venezuela into a socialist state, and few obstacles appear in his way as he prepares to be sworn in for a third term Wednesday...more
Purolator's National Sweepstakes Winner Receives $62,000 Boat/Truck Prize
AftermarketNews - Parts and Accessory News
BRENTWOOD, TN -- Eric "Scott" McDiamid, a resident of Charlotte, MI, is the grand-prize winner of a national sweepstakes sponsored by Purolator. McDiamid received the grand prize - the Purolator Bass Boat and Truck - a 21' Triton boat and a 2006 Toyota Tundra 4 x 4 truck in a ceremony in Battle Creek, MI, last month. McDiamid's name was drawn from a pool of nearly 13,000 entries. The Purolator Bass Boat and Truck, valued at $62,000, was featured on the 2006 BASS Tournament Trail....more
ArvinMeritor Sees North America Truck Orders Trough
Reuters
CHICAGO -- U.S. car and truck parts supplier ArvinMeritor Inc. expects a slow down in heavy truck orders in North America to come in March or April, with a significant pick up unlikely until 2008, the company's chief executive said today...more
Commerce Secretary Praises Record Exports and Lowest Trade Deficit Since July 2005
Los Angeles, Calif. - U.S. Commerce Secretary Carlos M. Gutierrez issued the following statement on the November U.S. International Trade in Goods and Services which shows that the trade deficit of $58.2 billion was the lowest since July 2005. The deficit narrowed for the third-straight month and it is the first three month decline since early 2003:..more
Crude Oil Price Hits 19-Month Low
AutoBeat Daily
The price of crude oil plunged by $1.62 per barrel to $54.02 yesterday on the New York Mercantile Exchange—-its lowest level since early June 2005.
Mild winter weather in the U.S. Northeast is one reason. And yesterday's weekly report from the U.S. Energy Information Administration says America's supplies of gasoline and distillates rose for the fourth straight week...more
January 10, 2007
Auto Suppliers:
Denso CEO Keen on U.S. Market
Detroit
Free Press
Denso Corp. CEO Matt Matsushita said Tuesday that the U.S. market -- thanks to a couple of troubled suppliers -- offers more growth potential for Denso's products than China, despite the rush of other suppliers to shift resources from North America to Asia.
The Kaiya, Japan-based supplier of thermal, powertrain and electrical systems is the world's second-largest auto supplier, behind only Robert Bosch GmbH, with $27.3 billion in sales last year, of which 23 percent came from the United States. Last year, Denso's U.S. business grew more than 8 percent, Matsushita said...more
January 9, 2007
MAHLE
to Acquire Siemens VDO Automotive's Air Intake Module, Air Filtration
Business Division
AftermarketNews
- Parts and Accessory News
STUTTGART, Germany -- The MAHLE Group, headquartered in Stuttgart, Germany, has announced plans to acquire the air intake module and air filtration business segment for combustion engines from Siemens VDO Automotive.
With this acquisition, the company will expand its market presence particularly in North America and Asia. MAHLE will acquire about 1,000 employees working for Siemens VDO in this business segment...more
Aftermarket Foundation Announces 2007 Goal
Aftermarket Business
The Aftermarket Foundation recently announced its goal to provide more than $250,000 in 2007 to individuals and families in need.
"The Foundation is a group of individuals and companies dedicated to the humanitarian mission of helping families in need in our industry," Aftermarket Foundation Chairman Don Schienger says. "We provide money to people who have dedicated their lives to our industry, and who now need help from the industry they helped to grow."..more
NHTSA Proposes Crash-Test Changes
Automotive News
DETROIT -- The National Highway Traffic Safety Administration today proposed across-the-board upgrades to its vehicle-safety rating program that would make it more difficult for carmakers to achieve five-star status...more
January 8, 2007
Commerce Secretary Gutierrez Hails December's Job Growth
Washington, DC – U.S. Commerce Secretary Carlos M. Gutierrez released the following statement last week on the December Employment Report, which showed that 167,000 jobs were created in December – the 40th straight month of job growth, and that the unemployment rate remained steady at 4.5 percent in 2006, nearly two million new jobs were created...more
January 5, 2007
New Year Ushers in New Era of Clean Diesel Trucks
WASHINGTON -- With new clean diesel heavy-duty engines set to roll off of assembly lines nationwide this year, the diesel industry demonstrated today it has met the technological and regulatory challenges of manufacturing trucks that produce up to 90 percent fewer emissions that the previous generation of diesels, helping to usher in a new era of clean air progress...more
Oil Prices Hit 18-Month Low
Autobeat Daily
Oil futures fell by $2.73 for the second consecutive day on Thursday to settle at $55.59 on the New York Mercantile Exchange. It was the lowest level since mid-June 2005...more
Toyota Revs Up Its Push in U.S.; Decision Expected Soon on Location of New Plant
The Wall Street Journal
Toyota Motor Corp., coming off fresh market-share gains and a steep drop in sales by its Detroit competitors last month, is poised to turn up the heat further on the Big Three by naming a site in the Southern U.S. for its eighth North American assembly plant as early as this month, people familiar with the matter said...more
GM Vows to Defend Title against Toyota
Associated Press
DETROIT -- If Toyota Motor Corp. has eyes on taking the title of world's largest automaker from General Motors Corp. next year, it won't happen without a fight.
In an interview Thursday, GM Chief Executive Rick Wagoner said his company has room for growth worldwide and will forcefully defend its title...more
January 4, 2007
Industry
Survey: Executives Expect the Unexpected
Detroit
Free Press
Auto executives are expecting yet another volatile and unpredictable year in the competitive car and truck business, influenced by outside investors, new foreign brands, global alliances, fuel concerns and even more bankruptcies, according to the eighth annual Global Auto Executive Survey by KPMG LLC, to be released to the public today...more
Camera-Based Automotive Systems Could Save Costs and Lives, According to ABI Research
NEW YORK--Automobile accident statistics show that the trend of reducing fatalities has leveled off in recent years despite advances in crash protection. In the United States and Europe, more than 40,000 people are killed each year in automobile accidents. A new study from ABI Research reveals that the active safety features under development to address many of the causes of accidents may become more affordable, thanks to recent advances in camera technology...more
Toyota Revs Up Its Push in U.S.
Wall Street Journal
Toyota Motor Corp., coming off fresh market-share gains and a steep drop in sales by its Detroit competitors last month, is poised to turn up the heat further on the Big Three by naming a site in the Southern U.S. for its eighth North American assembly plant as early as this month, people familiar with the matter said.
The opening of an eighth plant, a move Toyota has been pondering for months, would signal the company is gearing up for a drive to wrest even more of the U.S. market from the domestic car makers in the next several years. It would also further strengthen Toyota's hand politically should a new backlash against foreign brands arise out of the increasing troubles of the domestic auto makers and their suppliers...more
Why Manufacturing Shows Resilience
Wall Street Journal
U.S. manufacturing is showing surprising resilience in the face of a sharp slump in autos and housing, and in the coming year it is expected to expand roughly in line with the overall economy.
A closely watched manufacturing index turned positive in December, reversing a decline the month before that had sparked gloom about the outlook for the sector. New orders and production both edged up last month, while pricing pressures eased...more
January 3, 2007
Manufacturing
Could Signal Trouble Ahead
Wall
Street Journal
If manufacturers seem downbeat as the new year starts, it's partly because they were too upbeat at the beginning of the old one.
Gross domestic product grew at a 5.6 percent annual rate in the first quarter of 2006, slowed to 2 percent by the third quarter and is estimated to have slowed a bit more in the final three months of last year. The run from hot to cold means manufacturers produced more stuff than needed and are now suffering the consequences...more
Hearing Set for Dana Labor Dispute
AutoBeat Daily
A federal bankruptcy judge has set a March 12 hearing to consider Dana Corp.'s plans to cut hourly wages, benefits and retiree healthcare. The Toledo-based maker of axles and brakes has said it will seek court permission to reject its labor contracts if it can't reach a new agreement with its unions.
Dana plans to close 16 plants in North America. It also wants wage and benefit concessions from its 7,000 unionized workers, who represent 38 percent of its hourly workforce. The company seeks to eliminate healthcare coverage for 17,200 union retirees and 9,700 non-union retirees—a $1.5 billion obligation. And it hopes to shift pensions from defined benefit to defined contribution plans...more
Nucor Bets on Finished Steel
Wall Street Journal
With its $1.07 billion acquisition of Harris Steel Group Inc. in Canada, Nucor Corp. is breaking from its nonunion tradition and offering a glimpse of where it sees growth in the steel industry.
The move by the Charlotte, N.C., steelmaker also answers a question that has followed Nucor and other steelmakers: where to invest sizable cash reserves from three years of strong steel prices? With this deal, Nucor shows it sees opportunity in finishing steel products for its customers and in distribution rather than adding steelmaking capacity...more
CSK Auto Says SEC Inquiry Now Formal
Associated Press
RICHMOND,
Va. -- Auto parts retailer CSK Auto Corp. on Tuesday said the Securities
and Exchange Commission launched a formal investigation into the company's
accounting.
The company said it was previously sharing information with regulators
on an informal basis.
CSK Auto has been working on financial restatements going as far back as 2001 after an internal investigation in September found more than $90 million of overstatements on CSK's books. The overstatements were related mainly to inventories and vendor allowances...more
Biodiesel Boom: Chicken Fat's the Next Soy
Associated Press
DEXTER, Mo. -- Jerry Bagby is typical of the oilmen who are prospecting for a fortune in the Midwestern biofuels boom. He's convinced there's oil in these hills -- and he's found a well that no one else is using.
Bagby and a longtime friend have cobbled together $5 million to build a new biodiesel plant on the lonely croplands outside Dexter in southeast Missouri. They're betting they can hit pay dirt by exploiting a generally overlooked natural resource that's abundant in these parts -- chicken fat...more
December 28, 2006
Group
seeks tough fuel efficiency standards
Justin
Hyde - Free Press Washington Staff
WASHINGTON -- A group of corporate chief executives and retired military generals called Wednesday for the federal government to raise fuel economy standards by 4% a year and take other steps toward cutting U.S. oil imports almost in half from today's levels by 2030...more
Nissan
to develop gasoline-electric cars
Bloomberg
News
TOKYO: Nissan Motor, the second-largest Japanese automaker, said Monday that it intends to develop its own gasoline-electric hybrid cars by 2010, to compete in a segment where it lags Toyota Motor and Honda Motor...more
December 21, 2006
Forecast
Products Corp. Hires Senior Product Manager for Filters
AftermarketNews
- Personnel News
FT. LAUDERDALE, FL -- Forecast Products Corp., a national supplier of engine management components and filters, has appointed Allen Wright as its new senior product manager for filters.
In this role, Wright will be responsible for new product development, and to ensure the consistency and quality of Forecast's overseas filter production...more
December 20, 2006
Automotive, Heavy Duty Suppliers Thank Congress for Passage of R&D Credit Legislation
WASHINGTON, D.C. - The Motor and Equipment Manufacturers Association (MEMA), the nation's oldest and largest association representing automotive and heavy duty suppliers, thanks Congress for passing legislation to extend and strengthen the federal research and development (R&D) tax credit...more
U.S. Suppliers to Face More Pressures in '07
Reuters
CHICAGO -- U.S. suppliers, reeling from bankruptcies in recent years, will face added pressure in 2007 from fewer light vehicle sales and customers' demands for price cuts, analysts said...more
Freightliner LLC Announces Construction of New Truck Manufacturing Plant in Mexico
PORTLAND, ORE. -- Freightliner LLC announced today that it plans to construct a new $300 million truck manufacturing plant in Saltillo, Coahuila, in northern Mexico. Dedicated to the production of Freightliner and Sterling trucks, the new facility will provide additional capacity to accommodate Freightliner's long-range product planning including an experienced upturn in industry demand in 2009...more
The Top 10 Distribution Influences of 2006
AftermarketNews - News Extras
#1 Store
Personnel
Consider
all the jobs store personnel perform and you'll get a good sense of
the influence they wield in the aftermarket.
Of all the professions in the aftermarket, only parts professionals sit in the unique position that allows them to touch nearly every level of the aftermarket. They - and only they - deal on a daily basis with WDs, manufacturers, program groups, technicians and consumers. Parts professionals have the widest and broadest ability to influence what both professionals and DIYers alike buy, and can impact the successes of both in profound ways...more
December 19, 2006
DaimlerChrysler:
U.S. Freightliner Case Will Be Appealed
Reuters
FRANKFURT -- DaimlerChrysler will appeal the ruling of a U.S. court on Friday ordering it and its heavy truck-making unit Freightliner LLC to pay hundreds of millions of dollars in a tangled multinational fraud case, a DaimlerChrysler spokeswoman said.
The Oregonian newspaper reported on Saturday that a Multnomah County Circuit Court jury had found Freightliner liable for shifting assets among several of its divisions in a bid to avoid a legal judgment...more
Diesel Rules Could Stall Big-Truck Sales
The Wall Street Journal
Truck making has been a manufacturing bright spot in recent months, even as the U.S. auto industry has suffered. In the new year, big rigs are expected to go into a skid as well...more
December 18, 2006
R.L. Polk
& Co's Ask the Industry Looks at Predictions for Materials in 2007
(Part II)
AftermarketNews
- Ask The Industry
Editor’s Note: In this week’s edition of Ask the Industry, MEMA Senior Market Research Analyst Richard Anderson provides his predictions for some of the industry's most important raw materials. This is the final article in a two-part series. To read part one, click here.
In our interview with Anderson , he indicated that petroleum, steel, aluminum, copper and nickel will be the top five raw materials for the aftermarket to keep an eye on in 2007. Below, are his thoughts on two of the most talked about raw materials for this industry -- petroleum and steel. (It’s also important to note that this interview was conducted prior to the announcement late last week that the International Trade Commission revoked all tariffs and duties it had previously placed on imported steel .)
PETROLEUM: “Everybody knows there is petroleum in gasoline, in diesel and in engine oils. But, you have to remember that petroleum makes up a huge portion of plastics as well, and we see more and more plastics today in vehicles and replacement products, and just in everyday life. You can’t just think fuel. There are also tangible products that are very much dictated by the price of petroleum...more
WIX Filters Donates $75,000 to Victory Junction Gang Camp
AftermarketNews - Parts and Accessory News
RANDLEMAN, NC – WIX Filtration Corp. has donated $75,000 to Victory Junction Gang Camp, continuing its support for the Petty family’s camp for chronically and seriously ill children. Victory Junction Gang Camp is solely supported by contributions and donations from corporations, individuals and foundations. Located in Randleman, NC, on land donated by Richard Petty and his wife, Lynda, the Camp is the only year-round multi-disease facility of its kind in the Carolinas and Virginia...more
COMMENTARY: Recent Congressional Action Will Benefit MEMA Members
A Report from Bob McKenna, MEMA President and CEO
As the second session of the 109th Congress draws to a close, I want to call your attention to four positive legislative developments that will benefit our MEMA membership and the automotive industry in general. Each of these actions took place late in the session but was the result of months of work by our legislative office in Washington and the many MEMA members who took the time to meet with or phone members of Congress on these important issues. I want to extend my sincere thanks to all of you who helped make this success possible...more
Bama is Booming for Suppliers
Automotive News
With three transplant automakers operating at full tilt, Alabama is becoming the epicenter of a rapidly expanding Southern U.S. supply chain.
This year, more than two dozen new supplier plants and expansions have been announced in Alabama, representing more than $325 million in capital investments and 2,250 jobs...more
Freightliner Ordered to Pay Big Penalty
AutoBeat Daily
A federal jury in Oregon on Friday ordered DaimlerChrysler AG and its Freightline commercial truck unit to pay nearly $840 million in the latest chapter of an ongoing lawsuit with German truckmaker MAN AG...more
December 15, 2006
Advance
Reaches $1 Billion in Commercial Sales
AftermarketNews
- Distribution & Service News
ROANOKE, VA -- Advance Auto Parts announced it has reached a milestone of $1 billion in commercial sales during a single fiscal year, excluding Autopart International stores. In addition, 2006 marks the 10th anniversary of the launch of the company's commercial sales program...more
Truck Pride First on the Street with Fleet Service Experts Program
AftermarketNews - Distribution & Service News
BRANFORD, CT -- Truck Pride has introduced a new program that members can offer to their regional and national fleets. The Fleet Service Expert Program is a comprehensive marketing program that has been designed to take the burden of sourcing emergency repairs off members' shoulders while still offering them the best alternative to the OE dealer's parts and service...more
Honeywell Sees Sharp Profit Gain in 2007
AftermarketNews - Parts and Accessory News
MORRIS TOWNSHIP, NJ -- Diversified manufacturer Honeywell International on Thursday said it expects to meet its profit target for this year and predicted double-digit growth in earnings per share in 2007...more
International Engine Group Launches New Web Site
AftermarketNews - Truck Fleet News
WARRENVILLE, IL -- International Truck and Engine Corp. this week launched a new website for its Engine Group, which consists of its North American operations and South American subsidiary, MWM International. The new site, http://www.InternationalEngines.com presents a fresh look at the world's leading diesel engine manufacturer...more
Congressman Joe Knollenberg's Reaction to the U.S. International Trade Commission Decision on Steel Tariffs
WASHINGTON, D.C. -- Earlier today the U.S. International Trade Commission (ITC) voted to revoke tariffs on corrosion resistant steel imports from four countries while leaving in place trade restrictions against two other countries...more
Auto Suppliers Response to International Trade Commission Ruling on Imported Steel Tariffs
Statement may be attributed to Ann Wilson, vice president, government affairs, Motor & Equipment Association
Auto suppliers are pleased the International Trade Commission ruled today that the U.S. steel industry no longer needs protection from four of the six countries in question that export corrosion-resident steel into this country. We are obviously disappointed that the ITC upheld tariffs on steel from Germany and Korea...more
Delays Extending Emissions Warranties to 15 years/150,000
SACRAMENTO - The California Air Resources Board (CARB) determined not to vote on a proposal that would have extended emissions warranties to 15 years/150,000 miles on defective emissions-related components at its recent meeting...more
More Auto Production Cuts Likely Next Year
AutoBeat Daily
North American auto production, which declined by 3 percent this year to 15.8 million units, will slip by another 1 percent or 180,000 units in 2007, predicts Ward's AutoForecasts.
Ward's anticipates an especially sluggish first half because of weak consumer demand, a cooling economy and continuing need by OEMs to trim dealer inventories. Compared to this year, output will fall 6 percent in the first quarter and 4 percent in the second quarter. But Ward's says production will rebound after that, showing year-on-year improvement in the second half and rising to more than 16.3 million units in 2008...more
December 14, 2006
Group
Seeks Tough Fuel Efficiency Standards
Detroit
Free Press
WASHINGTON -- A group of corporate chief executives and retired military generals called Wednesday for the federal government to raise fuel economy standards by 4% a year and take other steps toward cutting U.S. oil imports almost in half from today's levels by 2030...more
December 13, 2006
Automakers
Pledge Joint Effort with Suppliers to Fight Slavery
Bloomberg
News
General Motors Corp., Ford Motor Co., DaimlerChrysler AG and Honda Motor Co. have joined together to train their suppliers to avoid buying materials made by slaves.
The training is being coordinated by the Southfield, Michigan-based Automotive Industry Action Group, which has 1,500 members. Toyota Motor Co., the world's second-largest automaker, chose not to join the training program because it believes it can better resolve forced labor issues on its own, said Toyota spokesman Victor Vanov...more
Bosch Doesn't See Big Acquisitions in Auto Parts
Reuters
FRANKFURT -- Robert Bosch GmbH does not plan major takeovers of auto parts firms but is open to smaller deals and expects its purchase of Australia's Pacifica Group Ltd. to go ahead, a top company official said...more
Isuzu May Build Truck Plant in North America
Reuters
YOKOHAMA, Japan -- The head of Isuzu Motors Ltd. said today that the Japanese truck maker was considering building a truck factory in North America as it focuses on growth overseas to make up for an expected stagnation in domestic demand...more
Report: Pischetsrieder Aimed for Three-Way Truck Merger
STOCKHOLM -- Outgoing Volkswagen CEO Bernd Pischetsrieder has sketched out his vision of how a deal between MAN, Scania and VW's trucks business would look, a swedish newspaper said today...more
December 12, 2006
The ITC
Should Kill the Steel Tariffs
THE
FOLLOWING STATEMENT IS FROM ANN WILSON, VICE PRESIDENT OF GOVERNMENT
AFFAIRS, MOTOR & EQUIPMENT MANUFACTURERS ASSOCIATION.
On December 14, the International Trade Commission will hand down a ruling that will impact the lives of tens of thousands of workers in the automotive industry. The issue is whether to retain duties on the imported corrosion-resistant steel used extensively in the production of cars and trucks and their components. Since these tariffs have the effect of placing upward pressure on the cost of all steel purchased in this country, keeping them in place will certainly accelerate the loss of American jobs in the auto parts industry...more
Many MPG Ratings Will Go Down
Automotive News
WASHINGTON -- The federal government completed plans today for the first significant changes in vehicle fuel economy estimates in more than 20 years.
The changes, which include newly designed window stickers, are effective with the 2008 model year...more
GM to Invest $225 Million in Tennessee Plant
Reuters
DETROIT -- General Motors said today it plans to invest about $225 million to renovate its Saturn plant in Spring Hill, Tenn., indicating plans for future production at a plant the union had feared would be closed...more
DCX May Cut 4,000 Truck Jobs
Detroit Free Press
DaimlerChrysler AG may lay off as many as 4,000 North American workers in its truck and bus division next year if its commercial truck sales decline as expected.
The German automaker, which is the world's largest truck maker, already has notified 800 employees at its St. Thomas, Ontario, plant that they will be laid off in March, though they could be recalled later in the year...more
December 11, 2006
Citigroup
Upgrades Advance Auto, Sees Revved Up Earnings and Buyout Potential
Associated
Press
NEW YORK -- A Citigroup analyst lifted his rating on Advance Auto Parts Inc. Thursday, saying the auto parts retailer has a good chance of reinvigorating earnings growth or could be an attractive takeover prospect...more
COMMENTARY: Before the Government Can Save Manufacturing, It Needs to Stop Hurting It.
The Washington Times - By Robert McKenna and William E. Gaskin
We live in an increasingly competitive world where manufactured products for the U.S. market come from all corners of the earth. While we often hear complaints about unfairness abroad, much of the encouragement for taking manufacturing offshore can be found right here in Washington. The debate on how to save manufacturing should start by examining what the government should not be doing: protecting industries when they do not need protection...more
December 8, 2006
Diesel
Oil Sensor Unveiled
National Oil & Lube
Mobile electronics and systems manufacturer Delphi Corp. used the IAA Nutzfahrzeuge show in Hanover, Germany to announce several new automotive components and technologies it has recently developed...more
Keystone Automotive to Contest Ruling in Ford Patent Dispute
Reuters
DETROIT -- Keystone Automotive Industries Inc. said along with other respondents it plans to contest portions of a preliminary ruling by the U.S. International Trade Commission in a complaint by Ford Motor Co...more
Nissan Exec: Hybrid Market Unprofitable
Associated Press
WASHINGTON -- A top Nissan Motor Co. executive in North America said Thursday that the hybrid market still remains an unprofitable proposition in the auto industry despite the interest in alternative vehicles...more
December 7, 2006
Dingell
Reclaims Powerful Post
Detroit Free Press
U.S. Rep. John Dingell reclaimed his seat Wednesday as chairman of the House Committee on Energy and Commerce, where he plans to highlight the needs of Detroit's automakers...more
As Japan's Car Makers Go Global, Suppliers Follow --- Driven by Demand, Parts Firms Snap up Foreign Counterparts
The Wall Street Journal
TOKYO -- Japanese auto components companies are on an overseas spending spree, highlighting how important foreign markets are becoming to them as the car industry continues globalizing...more
EPA Certifies Cat '07 Engines for Class 8
Fleet Owner Magazine
Peoria, IL-based Caterpillar said it has received certification from the Environmental Protection Agency (EPA) for its 2007-model C13 and C15 engines...more
Canadian Sterling Workers to be Idled; Navistar Slashes Jobs Too
Todaystrucking.com
ST. THOMAS, Ont. -- Freightliner LLC says it will lay off about 800 workers at its Sterling Trucks assembly plant in St. Thomas, Ont.
Like most truckmakers, the company is preparing for an industry-wide slowdown in 2007 as customers look to avoid new, more expensive, low emissions engines that hit the market in the New Year. Many fleets pre-bought equipment in 2006 or will take a wait-and-see approach with the new technology...more
Another Tough Year Looms for the U.S. Auto Industry
AutoBeat Daily
Fitch Ratings gloomily predicts that continuing shrinkage and restructuring among U.S. automakers—coupled with contentious labor talks next fall and a decline in overall sales volume—will generate turmoil in the industry for at least another year...more
Auto Industry: GM Loses Its Back-Seat Driver
Newsweek
Struggling General Motors had some good news lately, with its sales rising 6 percent in November and the debut last week of its curvaceous new Buick Enclave. But for besieged CEO Rick Wagner, the best news had to have come Thursday, when Las Vegas billionaire Kirk Kerkorian cashed out his final 28 million shares of GM stock. In the course of a week, Kerkorian--whom analysts believed was gunning for Wagoner--went from being GM's largest individual shareholder to just another outsider the Detroit establishment ran off the road...more
December 6, 2006
Clarcor
Expands with China Operations
bizjournals.com
Clarcor Inc. has opened a manufacturing and warehouse facility in China.
The facility includes seven buildings for manufacturing, office space, a warehouse and a technical center in Weifang, China. The company will use the complex to make heavy-duty air and liquid engine filters, sand control filters for off-shore oil drilling and filers used during the manufacture of plastic and fiber resins. Products made at the facility will be sold, primarily, in China and throughout Asia. Cost of the project wasn't disclosed...more
Preliminary November Truck Orders Indicated Decrease
Bear Sterns OEM Insider
Preliminary November Truck Orders: Monday afternoon, A.C.T. released preliminary Class 8 and Class 5-7 net new orders for November. Complete results (including cancellations, retail sales, backlog, and revised orders) should be available on December 15...more
December 5, 2006
AutoZone's
First Quarter Sales are Up 4.1 Percent
AftermarketNews
- Distribution & Service News
MEMPHIS, TN -- AutoZone has reported net sales of $1.393 billion for its first fiscal quarter (12 weeks) ended Nov. 18, up 4.1 percent from fiscal first quarter 2006. Same store sales, or sales for stores open at least one year, were up 0.3 percent for the quarter...more
Auto Deal in China to Create a Giant Marketplace
AftermarketNews - News Extras
Shanghai Automotive said Thursday that it would pay approximately $2.4 billion in stock to buy its parent company's ventures with General Motors and Volkswagen, creating the biggest publicly traded carmaker in China.
SAIC Motor would receive 3.28 billion shares in exchange for the assets, Shanghai Auto said in a statement. The transaction was approved by the China Securities Regulatory Commission...more
Mahle to Buy Dana Business in $157 Million Deal
Reuters
FRANKFURT -- German automotive parts supplier Mahle has agreed to pay U.S. rival Dana Corp. $98 million in cash and assume $59 million in debt to acquire Dana's global engine parts operation, Mahle said today...more
Leading Automakers and Suppliers Promote Global Working Conditions
DETROIT--Several leading automakers and their suppliers have launched a collaborative, industry-wide project focused on advancing a shared vision of workplace standards throughout their supply chains that promote decent working conditions for the millions of workers around the world involved in the production of automobiles...more
December 4, 2006
Manufacturing
Shrinks for 1st Time in 3 Years
CNNMoney.com
NEW YORK -- Manufacturing shrank for the first time in over three years in November, according to a closely watched survey of executives, as the slowdown in the housing and auto industries started to bite into the nation's industrial sector...more
Yuan Rises to New High against Dollar
Associated Press
SHANGHAI, China — The Chinese yuan rose to a fresh high Friday against the U.S. dollar, capping a week of gains and boosting share prices to a five-year high in Shanghai...more
Cracks Widen in U.S. Economy
The Washington Times
Economic weakness spread beyond the stricken housing and auto sectors last month, with reports showing U.S. manufacturing shrank for the first time in 3 1/2 years and construction dropped the most since the September 11, 2001, terrorist attacks...more
December 1, 2006
Toyota
Sets 10 Percent Minority Supplier Spending Goal
Automotive
News
CINCINNATI -- Toyota Motor Corp. today launched a minority spending objective that calls for the company to generate 10 percent of its North American purchasing activities with minority suppliers...more
Granholm Asks Alternative Fuels Panel to 'Think Big'
Associated Press
LANSING -- A fired-up gov. Jennifer Granholm challenged members of the newly created Michigan Renewable Fuels Commission to "think big" and "shoot the moon" as they devise strategies for promoting the state's production and distribution of alternative fuels...more
November 30, 2006
Detroit
Free Pass Tom Walsh Column: China's No Joke in the Auto World
AutomotiveNews - News Extras
BEIJING -- It would be easy to dismiss Auto China 2006, the 10-day show in Beijing that wrapped up last week, as a pretender on the world automotive scene.
With its deafening music, raffle drawings, flying acrobats and dance acts, and Disneyesque costumed donkeys, roosters, penguins and oranges strolling around, plus all the copycat cars and names, the atmosphere was more carnival than world-class business event...more
GM CEO Sees U.S. Industry Sales Growth Flat in '07
Reuters
LOS ANGELES -- General Motors CEO Rick Wagoner said he expects U.S. industry-wide auto sales in 2007 to be similar to 2006 levels.
"Probably more or less flat with this year," Wagoner said on Tuesday, Nov. 28, when asked about his sales outlook at an event ahead of the Los Angeles auto show...more
GM Pledges Hybrid Cars That Come with a Plug
Detroit Free Press
LOS ANGELES -- General Motors Corp. became the first automaker Wednesday to commit to building a gasoline-electric hybrid vehicle that can be recharged from an electric socket, a move that will lessen dependence on oil and help GM overtake Toyota Motor Co. in environmental leadership...more
November 29, 2006
Herman
Trend Alert: Manufacturers Being Squeezed
AftermarketNews
- News Extras
From "Herman Trend Alert," by Roger Herman and Joyce Gioia, Strategic Business Futurists
In the United States and elsewhere, structural (non-wage) costs for manufacturers, as a percentage of the total costs, are continuing to rise. According to a study released in September by the U.S. National Association of Manufacturers (NAM), The Manufacturing Institute and the Manufacturers Alliance/MAPI, structural costs increased from 22.4 to 31.7 percent of the total costs, compared to similar costs for similar companies in nine trading partner countries in 2003. “(This) sharp rise in these non-wage costs represents a significant and long-term problem for our nation’s manufacturers and America’s economy,” said John Engler, president of the NAM...more
Supreme Court Takes Up Global Warming for First Time
Associated Press
WASHINGTON -- The Bush administration is defending its refusal to regulate carbon dioxide emissions from new motor vehicles in the first case about global warming to reach the Supreme Court..more
November 28, 2006
Traditional Service Outlets Still Garner Most Auto Maintenance Work
According to MEMA market research, traditional service outlets still garner the majority of automotive maintenance work in the United States.
Nearly 31 percent of consumers chose "traditional" outlets – general repair facilities and tire shops – for their automotive maintenance. "When 'quick cube' facilities are included, the total is 44 percent," said Frank Hampshire, MEMA senior director of market research...more
CSK Reports 16 Percent Jump in Sales, Defers Earnings Report
The Business Journal
CSK Auto Corp. Monday reported a 16 percent increase in sales to $474 million for third-quarter 2006 compared to the same period a year ago.
Earnings numbers, however, were not released and the Phoenix auto parts retailer said it will continue to defer financial results for fiscal 2005 and the first three quarters of 2006 pending completion of an internal accounting investigation. Those restatements are expected by February...more
EU Tells Automakers: Share Data or Don't Sell Cars
Automotive News Europe
The European Commission is planning radical measures to ensure car manufacturers make technical data available to independent repair shops.
If the repairers don't get what they need, new car models won't get type approval, the EU says. Type approval grants carmakers the right to sell cars across EU member states...more
DCX, VW to Team up on Diesel
WASHINGTON -- DaimlerChrysler AG, Volkswagen AG and its Audi unit will announce tonight in Los Angeles that the automakers have agreed to jointly use a clean diesel technology developed by Mercedes-Benz as they seek to comply with stricter U.S. emissions standards, company officials said Monday...more
November 27, 2006
Supreme
Court to Hear Global Warming Case This Week
Detroit
Free Press
WASHINGTON -- Arguments before the U.S. Supreme Court could determine whether the U.S. auto industry will face tougher regulations on cars and trucks because of concerns about global warming...more
How Housing Slump Is Risk to Big Three Rebound
Wall Street Journal
DETROIT -- Detroit's beleaguered Big Three auto makers face a new risk to their turnaround plans: After a string of strong years, U.S. auto sales are slowing and an increasing number of forecasts say sales could fall next year to their lowest level in nearly a decade...more
Fed Chief's Help Enlisted for Trip to Press China
New York Times
WASHINGTON — Treasury Secretary Henry M. Paulson Jr. has enlisted Ben S. Bernanke, the Federal Reserve chairman, to join an unusual delegation of cabinet members to China next month that will press for changes in Chinese economic policies long criticized by the administration and Congress, officials said Wednesday...more
November 22, 2006
Pennzoil
Platinum Wins Prestigious Popular Mechanics Editor's Choice Award
AftermarketNews
- Parts and Accessory News
HOUSTON -- Pennzoil Platinum full synthetic motor oil with adaptive molecules was presented the Popular Mechanics Editor's Choice Award during Automotive Aftermarket Industry Week in Las Vegas. Pennzoil Platinum was selected as one of the best new automotive products by Popluar Mechanics magazine for its outstanding achievement in new product design and innovation. The prestigious award is presented to a select number of outstanding products each year at the automotive aftermarket industry's premier event...more
November 20, 2006
DENSO
Awarded Pronto OE Supplier of the Year
Aftermarket
News - Parts and Accessory News
LONG BEACH, CA – The Nationals Pronto Association awarded DENSO Sales California the Original Equipment (OE) Supplier of the Year Award. The award was presented during the National Pronto Group's fall membership meeting, held in Oct. DENSO supplies Pronto with oxygen sensors, spark plugs, starter/alternators, spark plug wires, fuel pumps, wiper blades, receiver dryers and oil and air filters...more
Booming Chinese Auto Market Spurs Car Makers to Stake Claims
Wall Street Journal
BEIJING -- Defying worries about pollution, oil consumption and economic overheating, China's automotive boom is accelerating as international auto giants and scores of Chinese automotive companies scramble to stake claims. Industry executives say the market will be the world's second-largest this year and No. 1 within 15 years...more
Keeping Trade Secrets in China is Tough for Suppliers
Automotive News
HANOVER, Germany -- Continental AG knows that doing business in China requires a company to guard its technical expertise carefully.
"We have seen photographs of some of our products in Chinese supplier catalogs," says Karl-Thomas Neumann, the Continental board member responsible for its automotive unit. "But we know there is nothing to it yet because they are not carrying our products and are missing key technologies...more
BorgWarner Outfoxes Counterfeiters
Automotive News
BEIJING -- In China, the coastal province of Zhejiang is home to an enormous number of companies that copy auto parts.
So why would BorgWarner Inc., of Auburn Hills, Mich., choose the Zhejiang city of Ningbo to establish a major manufacturing operation?..more
November 17, 2006
U.S. Auto
Woes to Continue to Weigh on Midwest, Report Says
Reuters
CHICAGO -- A decline in the U.S. automotive industry and its negative ramifications for state and local governments particularly in four Midwest states will likely continue, Fitch Ratings analysts said today...more
Toyota Building Trucks in Lonestar State
Associated Press
HOUSTON -- Toyota Motor Corp.'s latest effort in the U.S. automotive industry is considered its most important, and what a place for it: deep in the heart of Texas, where American pickups have crowded backroads and highways for decades...more
GM Aims to Grab 10 Pct. of Asian Market
Associated Press
HANOI, Vietnam -- General Motors Corp., its market share shrinking at home, is turning to Asia to boost its profits, and aims to capture 10 percent of the region's market by 2010, the U.S. automaker's regional chief said Friday...more
November 16, 2006
United
Components Revenue Increased $28.5 Million in Third Quarter
Aftermarket
News - Parts and Accessory News
EVANSVILLE, IN -- United Components, Inc. (UCI) has announced results for the third quarter ended Sept. 30. Revenue of $252.4 million increased $28.5 million compared to the year-ago quarter. The quarter included $25.3 million in sales by water pump manufacturer ASC Industries, which was acquired by UCI during the second quarter. The company reported revenue increases in the retail, OEM and heavy duty channels, and declines in the original equipment service and traditional channels...more
3,600 GM Jobs to Leave Pontiac
The Detroit News
PONTIAC -- General Motors Corp. dealt an economic blow to the city of Pontiac on Wednesday with its plan to relocate 3,600 manufacturing and engineering employees there to facilities in Warren and Detroit by 2008...more
November 15, 2006
Bush,
Auto Execs to Keep Talking: President Shows Big 3 Sympathy
Detroit
Free Press
WASHINGTON -- After eight months of missed dates, mounting political pressure and a change in congressional control, just what did Detroit automakers get from their meeting Tuesday with President George W. Bush?..more
Pep Boys Narrows 3Q Loss
PHILADELPHIA (AP) -- Pep Boys -- Manny, Moe & Jack narrowed its third-quarter loss on Tuesday amid slightly higher revenue and same-store sales.
The Philadelphia-based auto parts retailer narrowed its loss to $7.9 million from $11.2 million posted a year ago...more
Leading Truck Manufacturers Unite with U.S. Department of Energy to Improve Fuel Efficiency in Tractor-Trailers
WASHINGTON -- America could save nearly one billion gallons of fuel annually by adopting new aerodynamic technologies on tractor-trailer trucks, according to a two-year collaborative study conducted by members of the Truck Manufacturers Association (TMA) and the U.S. Department of Energy (DOE)...more
November 14, 2006
Truck,
Engine OEMs Plan Layoffs as Orders for New Tractors Fall
Transport
Topics
Several signs of the long-expected drop in truck production are beginning to appear, as a new report on Class 8 orders showed a significant year-over-year decline and another engine maker announced layoffs...more
Environmentalists See Boon in Congress Power Shift
Rueters
WASHINGTON -- U.S. environmentalists see a bonanza for green issues such as sustainable energy and the push to mitigate global warming coming with the shift in Congress toward Democrats...more
Pushing Trade with Vietnam
With Vietnam slated to become the World Trade Organization's 150th member, a coalition of more than 150 companies along with farm, trade and public interest groups stepped up pressure on Congress to extend normal trade relations to the country...more
November 13, 2006
Cummins
Emission Solutions Aftertreatment Facility Equipped to Meet 2007 U.S.
EPA Emissions Regulations
Aftermarket
News - Truck Fleet News
MINERAL POINT, WI -- Cummins Emission Solutions (CES) has begun production of diesel particulate filters at its North American exhaust aftertreatment manufacturing facility. Diesel particulate filters will play a key role in enabling engine manufacturers to meet the 2007 U.S. EPA emissions standards. Those standards will reduce particulate matter emissions in on-highway diesel-powered vehicles by 90 percent, while also resulting in a significant reduction in nitrogen oxides (NOx) emissions...more
Industry Navigates Political Sea Change
Automotive News
WASHINGTON -- The political shakeup caused by last week's election is reshaping the national debate on the auto industry's top issues: health care, energy, trade and taxes...more
Suppliers Keep Secrets from China
Automotive News Europe
Neumann said that one way the German tire maker and electronics supplier protects its intellectual property is making sure that key secrets never leave home.
"We thoroughly consider which know-how we will implement into locations outside Germany," Neumann said. "Some key developmental components such as software or special production technologies will be kept in Germany."...more
November 10, 2006
NAPA Filters
Adds Bioshield 75 to Cabin Filters for Increased Protect
Aftermarket News - Distribution & Service News
GASTONIA, NC – NAPA Filters is adding the antimicrobial agend BioShield 75 to its cabin air filters to inhibit the growth of mold, mildew and bacteria that can affect comfort and health...more
UCI is Phasing out Industry Reps in Favor of Direct Sales Force
Automotive Week/The Greensheet
United Components Inc. (UCI) plans to gradually phase out its use of independent sales agencies to service the traditional aftermarket business. Instead, the Evansville, IN-based company is forming a direct sales force to represent all of its product lines and brands...more
Recharged Dingell to Boost Diesels in Congress
Automotive News
WASHINGTON -- U.S. Rep. John Dingell said today that he will use some of his restored power to promote wider use of diesel engines in vehicles...more
U.S. Cars Rise in Reliability Ratings
Associated Press
DETROIT -- Ford's new Fusion model earned high marks from both Consumer Reports testers and consumers who rated it reliability, the magazine said in its 2007 new car preview, showing that U.S. automakers may be making strides in initial quality...more
November 9, 2006
Cummins
Names Ray Amlung VP and General Manager, Fuel Systems
Aftermarket
News - Personnel News
COLUMBUS, IN -- Cummins Inc. has named Ray J. Amlung vice president and general manager – Fuel Systems. Amlung had been executive director and general manager – Fuel Systems since May 2005...more
Shift in Power May be Big Gain for Big Three