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