FMC INDUSTRY NEWS
MEMA
Event News
July 11, 2007
Lawmaker
Sets Up Fight In House over Fuel Rules: Showdown with Dingell Possible
In Energy Debate
Detroit
Free Press
WASHINGTON -- Rep. Ed Markey, a Massachusetts Democrat and chief backer of tougher fuel-economy standards in the U.S. House, pledged for the first time Tuesday to make fuel economy part of the energy bills the House will consider later this month.
Supporters of Markey's proposal say they have more than enough votes to prevail should the bills reach the House floor, despite increased lobbying by automakers and Michigan lawmakers in favor of an alternative plan that sets less-stringent rules...more
Crackdown on Counterfeiting, Piracy Gathers Steam in Congress
Wall Street Journal
WASHINGTON -- As counterfeit goods like tainted toothpaste and fake medicines from China continue to make headlines, a push to crack down on product counterfeiting is gaining traction on Capitol Hill.
Two senators recently unveiled legislation that would require the federal government to invest more resources in the fight against counterfeiting and seek to better coordinate the efforts of the various agencies involved. The bill is backed by a coalition of industry and labor groups. The U.S. Chamber of Commerce, meanwhile, is pushing Congress to toughen antipiracy penalties and enforcement...more
China Trade Surplus Reached Record at $26.91 Billion in June
Wall Street Journal
KONG -- China's export juggernaut reached new milestones in June, government figures issued yesterday showed, with the nation exporting more than $100 billion of goods in a single month and marking another record monthly trade surplus.
Merchandise exports for the month, at $103.27 billion, were 27 percent higher than a year earlier, while imports of goods increased 14 percent to $76.36 billion, China's Customs agency said. That left a trade surplus for June of $26.91 billion, beating the previous monthly record of $23.83 billion set in October...more
China World's Top Auto Producer by 2010?
AutoBeat Daily
China could pass the U.S. and Japan to become the world’s largest auto-producing nation by 2010, says The Nikkei.
The Tokyo daily cites unidentified industry data that projects China will be producing 16 million vehicles by then—150 percent more output than in 2006...more
Truck Makers and Emissions
Wall Street Journal
STOCKHOLM -- Governments around the world are tightening emissions standards for heavy-duty trucks, forcing the world's largest manufacturers to increase spending on research and raising concerns that sales and profits could suffer.
The European Union, U.S. and Japan all are pushing for cuts in diesel-engine emissions of nitrogen oxide, or NOx, and sooty particulates, the main contributors to smog and acid rain. Truck manufacturers in Europe are positioning themselves for the technical leap needed to meet tough new EU standards, expected to be outlined this summer...more
Gerdau Agrees to Buy Chaparral for $4.22 Billion
Bloomberg
Gerdau Ameristeel Corp., the U.S. unit of Latin America's biggest steelmaker, agreed to buy Chaparral Steel Co. for $4.22 billion to boost output of metal used in bridges and office buildings as demand surges.
Chaparral shareholders will receive $86 a share, 14 percent more than yesterday's closing price, Tampa, Florida-based Gerdau said in a statement. Gerdau may sell new stock to pay for the transaction, a move that could “slightly'' curb earnings per share growth this year and next, it said...more
July 10, 2007
AAPEX
to Have First-Ever "Green" Zone
Aftermarket
News - Association & Legislative News
ORLAND PARK, IL -- The Automotive Aftermarket Products Expo (AAPEX) will have its first-ever "Green" Zone at this year's event, to highlight environmentally-friendly products, tools and services. AAPEX will be held Tuesday, Oct. 30 through Thursday, Nov. 1, at the Sands Expo Center in Las Vegas.
The AAPEX "Green" Zone will feature products that service providers and retailers can sell to consumers to help make their vehicles more efficient and environmentally friendly. It also will have tools and diagnostic equipment used to repair new green cars, as well as suppliers that recycle waste or remanufacture parts, or that have environmentally-friendly aftermarket parts...more
From Counterman.com: Mitch's World -- Change Partners? I Didn't Think So!
Aftermarket News - News Extras
On the outside chance you may not have noticed, you and I share a very peculiar relationship.
It is symbiotic in that we really can’t live without each other and yet what we do couldn’t be more different. It is synergistic. Or, at least it can be when our efforts blend together perfectly and the right part gets to the right place at the right time and at the right price and what we accomplish together exceeds whatever we could have accomplished individually. It can even spiral downward into a dysfunctional kind of co-dependency when things slowly go to hell and a relationship deteriorates, but continues regardless...more
July 9, 2007
Big
3 Car Makers Seen Losing U.S. Edge
Aftermarket
News - OE News
DETROIT -- Ominous industry predictions have the Big 3 U.S. automakers' share of their domestic market falling below half for the first time.
With General Motors, Ford and Chrysler opting for scaling back and making a profit over concentrating on market share, USA Today reported Friday, industry analysts predict a mid-40s share, perhaps within months...more
Chain Reaction: Parts Makers Feel the Pinch as U.S. Market Shrinks
Detroit Free Press
The woes of the Detroit automakers, who lost a combined $15 billion last year, are taking their toll on North America's financially distressed parts makers.
Recent studies of the supplier industry show that these companies are cutting costs, changing where they do business and what they make in order to survive the most competitive auto industry they've ever seen...more
Energy Debate Splits Democrats
The Wall Street Journal
WASHINGTON -- Michigan Rep. John Dingell is one of the most powerful lawmakers in Congress, used to setting the agenda on the issues he cares about -- such as watching out for Detroit's auto makers. So when Democratic leaders created a special panel to prod more aggressive action on climate change, the chairman of the Energy and Commerce Committee dismissed the effort as "about as useful as a fish with feathers."
But the man put in charge of the new committee -- Massachusetts Democrat Edward Markey, a Dingell protégé -- appears to be making something of it. He is threatening to best his legislative master on the defining issue in the energy debate moving to the House floor this month -- raising vehicle fuel-economy standards...more
The Real Test for Buyouts Starts Now
The Wall Street Journal
The buyout boom is about to get very interesting.
The past few weeks, debt investors have balked at financing several deals in the works, even as new, big deals get announced. But the real test for the buyout boom starts now, as investors are asked to finance the takeovers of First Data Corp. and DaimlerChrysler's Chrysler unit.
Chrysler will try to place about $20 billion of loans this month, part of a total financing package of $62 billion to fund its purchase by Cerberus Capital Management. First Data, meanwhile, plans to raise $24 billion, including $16 billion in loans and $8 billion in bonds, the biggest junk-bond sale ever...more
Haves and Have-Nots of Globalization
The New York Times
While individual Americans debate the merits of globalization, corporate America has already moved overseas, with dramatic financial results.
The GE90-115B, the powerful jet engine made by General Electric, drew attention in June at the Paris air show.
United Technologies is a case in point. Fully 60 percent of its total sales are either made in the U.S.A. and exported, or made and sold offshore. It exports Pratt & Whitney engines and Sikorsky helicopters, mostly from Connecticut. And its Otis elevator and Carrier air-conditioning subsidiaries have carved out leading positions in emerging markets like China, where the two divisions assemble most of their products...more
New Ala. Plant May Double Steel Capacity
Automotive News
ThyssenKrupp AG's $3.7 billion steel plant planned for Alabama could eventually double in size to produce more than 10 million metric tons of steel and stainless steel annually.
The plant has huge implications for automakers and suppliers in North America. About 40 percent of the new plant's steel will go to automotive customers, the company has said. The plant is expected to serve many of the Southern transplant automakers - and bring new competition among steel makers in North America...more
Foreigners Invest in N. American Suppliers
Automotive News
For nearly two years, merger and acquisition pros have said foreign companies were shopping for U.S. auto suppliers. But actual deals were hard to find.
That's changing.
In recent months, several overseas automotive suppliers and manufacturers have invested or contemplated investing in the assets of North American suppliers. Analysts say the trend stems from a growing Asian automotive industry that seeks top technology and global manufacturing capabilities...more
July 6, 2007
Cars.com
Unveils American Made Index, Identifies Top 'American' Cars
Aftermarket
News - News Extras
CHICAGO -- Cars.com has updated its American Made Index to help consumers identify the top 10 vehicles that are truly the most American in terms of their parts, where they're produced and their popularity with U.S. buyers.
In today's global economy, there's no easy way to determine just how American a car is. Many cars built in the U.S., for example, are assembled using parts that come from somewhere else. Some cars assembled in the U.S. from strictly American-made parts don't sell very well, meaning that fewer Americans are building those models...more
Schwarzenegger Taps Nichols to Lead Air Resources Board
Los Angeles Times
SACRAMENTO — Gov. Arnold Schwarzenegger sought Tuesday to quiet turmoil at the state's air board and reassert his commitment to the environment by appointing an official from past Democratic administrations to the board's top position.
Mary Nichols will take over the embattled Air Resources Board, which she chaired 30 years ago under Gov. Jerry Brown. She also served as secretary of resources under Democratic Gov. Gray Davis and as a high-ranking environmental official in the Clinton administration...more
Midwest Gas Prices to Rise Due to Flooded Refinery
Associated Press
WICHITA — Midwestern states that depend on fuel supplies from a flooded refinery in southeast Kansas will see some of the highest prices in the nation for gasoline and diesel this summer, industry experts said.
"It is really bad timing, it is bad luck. ... For all intents and purposes it looks like that refinery is not going to be contributing any gasoline or diesel fuel for the rest of the summer," said Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service...more
Service Sector Notches Strong Growth
The Wall Street Journal
U.S. service sector firms turned in their strongest month of growth since April 2006 during June, as price pressures grew at a slightly less strong rate.
A report Thursday from the Institute for Supply Management said its nonmanufacturing index, which is comprised mostly of service-related companies, moved to a reading of 60.7 in June from 59.7 in May and 56.0 in April. Index readings above 50 indicate expansion of activity, while readings under 50 denote contraction. Economists had expected the June index to come in at 57.5...more
July 5, 2007
In Wake
of Tire Recall, Senate To Examine Chinese Goods
The
Detroit News
WASHINGTON -- Congress plans to hold a hearing this month on the safety of Chinese manufactured goods, including tires, in the wake of the planned recall of 450,000 Chinese made tires.
The Senate Commerce Committee's Interstate Commerce, Trade and Tourism subcommittee has set a hearing on Chinese product safety for July 18, said Daniel Zielinski, a vice president at the Rubber Manufacturers Association, a tire industry trade group...more
Chery Assembly Deal Makes Chrysler a Model in Exporting from China
The Wall Street Journal
BEIJING -- Chrysler Group's move to outsource the entire assembly of some vehicles to a Chinese company puts it at the leading edge of global auto makers looking to use China as an export base.
Executives at Chrysler, which is struggling to pare costs, said the agreement with China's Chery Automobile Co. to assemble a series of small, inexpensive cars for export under the Dodge brand is likely to serve as a template as the company looks to roll out new models quickly, inexpensively and with less capital investment...more
July 3, 2007
New
Concerns about Safety of Imports from China as Tires Recalled, Factories
Closed
World
Trade Interactive
Concerns about the safety of consumer goods imported from China emerged again this week amid reports that hundreds of thousands of Chinese-made automobile tires will be recalled in the U.S. In addition, Chinese authorities announced that safety problems related to food production appear to be broader than previously believed.
U.S. importer Foreign Tire Sales Inc. notified the Department of Transportation’s National Highway Traffic Safety Administration June 11 that it had discovered a defect in light truck radial tires it had imported from China. FTS stated that the Chinese manufacturer, Hangzhou Zhongce, had at some point unilaterally and without notice stopped including in the tires a key component, a gum strip, that helps prevent the treads from coming apart. Although FTS claimed that HZ had admitted to the change, an HZ official denied the accusations against the company this week, saying they were “concocted out of thin air” and suggesting that the complaint was grounded in concerns about surging U.S. imports of tires from China...more
United States and Vietnam Sign Trade and Investment Framework Agreement, Review Bilateral Trade Agreement
The United States and Vietnam signed a Trade and Investment Framework Agreement (TIFA) on June 21 that will create a platform on which to further expand and deepen their bilateral trade and investment ties. Under the TIFA, the United States and Vietnam will discuss implementation of the 2001 U.S.-Vietnam Bilateral Trade Agreement (BTA) and Vietnam’s World Trade Organization (WTO) commitments. The two sides also will explore new initiatives to increase trade in industrial and agricultural products and services, and to encourage further investment between the two countries...more
July 2, 2007
Some
Suppliers See Dollars in a Higher CAFE
Automotive
News
WASHINGTON -- Most auto industry lobbyists are united against what they call “extreme” fuel economy proposals. But some companies see business opportunities in the proposals.
A case in point: Top executives of CellTech Metals Inc. last month pitched to lawmakers a new sheet metal that the executives said would help future light vehicles meet the toughest fuel economy standards Congress is considering...more
Robust Quarter Ends as Caution Clouds Market
Washington Post
NEW YORK -- U.S. stocks ended the second quarter awash in uncertainty Friday, with worries over rising interest rates, inflation and housing-market troubles putting the brakes on a go-go sentiment that had dominated Wall Street during much of spring.
In April and May, stocks appeared headed straight for the sky as investors recovered from the shock of a late-February sell-off in global equities and put aside concerns that a slowdown in real estate would damage the broader economy. Companies reported slowing but better-than-expected earnings growth. Markets cheered. And on May 30, the Standard & Poor's 500-stock index hit a record high, surpassing its peak during the tech bubble in 2000...more
Commentary: The Wall Street Journal: The Drive-a Toyota Act
The Wall Street Journal
The next time Democratic leaders lament the decline of American industry, please refer them to the current Congressional brawl over auto fuel-efficiency standards. Nancy Pelosi, Harry Reid and most of their colleagues are siding with upscale environmental lobbies over American carmakers and workers. Call it their Drive-a-Toyota Act.
Foreign automakers were cheering in June when Senate Democrats muscled through energy legislation to raise Corporate Average Fuel Economy (CAFE) standards, requiring that automaker fleets hit an average of 35 miles per gallon by 2020 (up from today's 27.5 mpg). GM, Ford and Chrysler all warned Congress that this would add to their financial burdens, making their vehicles even less competitive with those made by Toyota, Honda and other automakers. The United Auto Workers warned that even a small mileage increase could cost more than 65,000 jobs...more
MEMA Strengthens Management with Two New Vice President Positions
RESEARCH TRIANGLE PARK, N.C. – The Motor & Equipment Manufacturers Association (MEMA) announced the promotion of two employees to vice president positions, strengthening its association management structure and operating efficiency.
Dan Pike, formerly general manager of MEMA Financial Services Group Inc. (MFSG), has been named vice president of the association and general manager of MFSG and MEMA Managed Services Group (MSG). In this new position, Pike will continue his responsibilities directing operations of MFSG, the association’s commercial subsidiary and the source of global credit and financial information for suppliers to all aspects of the motor vehicle industry. He also will direct MEMA association management group...more
Mighty Auto Parts Unveils New Fuel System Cleaner
Aftermarket News - Parts and Accesory News
Mighty Auto Parts has unveiled Syntramax Complete, the company’s new advanced fuel system cleaner. According to the company, this new additive provides the maximum in fuel system cleaning by removing fuel-related deposits in today’s sophisticated fuel injection systems. It also helps reduce the need for high-octane fuel, utilizing its unique “octane benefit” chemical formulation, designed to lower an engine’s octane intake requirement (OIR), thus restoring power and performance...more
Rep. Joe Knollenberg Challenges Japan on Misaligned Yen
Aftermarket News - Association & Legislative News
WASHINGTON -- The Automotive Trade Policy Council, whose members include General Motors, Ford and DaimlerChrysler, applauded legislation int rod uced this week by Rep. Joe Knollenberg (R-MI) that directs the U.S. to work with its major trading partners and the International Monetary Fund (IMF) to insist that the Japanese government return the severely undervalued yen to its true market value. Japan has spent more than $400 billion since 2001 to weaken the yen in an effort to facilitate economic growth through greater exports...more
June 29, 2007
Head
of CARB Resigns
Sacramento
Bee Capitol Alert
The head of the California Air Resources Board resigned Thursday, apparently as a result of a disagreement with Gov. Arnold Schwarzenegger over the agency's decision to delay a smog reduction plan for the San Joaquin Valley.
Schwarzenegger's office confirmed that the chairman, Robert Sawyer, stepped down. The governor said in a statement that Sawyer "fought tirelessly for California's bold emission standards and did an outstanding job launching the world's first low-carbon fuel standard for transportation vehicles."..more
Bosch Opens R&D Center in Suburban Detroit
Automotive News
DETROIT -- Auto supplier Robert Bosch LLC opened its 225,000-square-foot technical center, which will house both r&d and engineering operations.
The Plymouth, Mich., center will employ more than 400 people. Projects engineered there include airbag sensors, adaptive cruise control and predictive safety technologies...more
Pelosi Unveils Energy Plan, Won't Speak to House Goals
Detroit Free Press
WASHINGTON -- House Speaker Nancy Pelosi's unveiling of a broad energy package was overshadowed Thursday by her refusal to indicate whether the House would debate an increase in fuel economy standards for new cars and trucks when the bills come to the floor next month.
The Bush administration also jumped into the debate Thursday, telling Pelosi in a letter that it would prefer to see fuel economy increases considered in the current energy bill, saying it "applauded the Senate's work" in tackling the issue. The administration has said it doesn't favor the Senate plan calling for mileage standards at 35 m.p.g. by 2020 for all vehicles...more
Commentary: The Car Connection, Gary Witzenburg: At Witz' End: The 35-MPG Showroom
The Car Connection
Most of us know that the U.S. Senate has passed an energy bill that dictates a 35-mpg Corporate Average Fuel Economy (CAFE) for all vehicles, cars and trucks, by 2020, and the House will likely follow. But how many understand what that means?
I'll bet the technologically challenged lawmakers who voted for that standard, like their accomplices in the mainstream media and the vast majority of the public, believe it means the same kinds of cars and trucks they enjoy will get much better mileage down the road. How hard could it be to move from today's long-established 27.5-mpg car CAFE to 35 miles per gallon, a mere 7.5-mpg (27-percent) increase?..more
June 28, 2007
Senate
Seeks Mileage Study before Setting Truck CAFE
Transport
Topics
The Senate last week weakened legislation that would have set fuel-mileage standards for heavy trucks, instead ordering an 18-m onth study of large-truck fuel economy before the government can set such standards.
In language presented by Senate Majority Leader Harry Reid (D-Nev.) during debate on an energy bill that could also raise fuel-economy standards for passenger cars and provide various incentives for renewable fuel production, the Senate would drop a requirement for specific cuts in large-truck fuel use...more
Cerberus Fights Fuel Bill, Warns It Will Doom Chrysler
The Detroit News
WASHINGTON -- Top executives from Cerberus Capital Management, buyer-in-waiting of DaimlerChrysler AG's Chrysler Group, are aggressively lobbying lawmakers in a bid to block fuel economy legislation they say could cripple Chrysler.
Cerberus CEO Stephen A. Feinberg and Chairman John Snow have blitzed Capitol Hill in recent weeks, with the usually reclusive Feinberg making at least two trips to meet with more than a dozen lawmakers...more
Detroit News Commentary, Brian O'Connor: Chrysler Sale Cost DCX $673M
The Detroit News
If you skipped German in high school, be glad. It's a tough language to translate.
For example, when Daimler-Benz mounted a $36 billion takeover of Chrysler Corp. in 1998, the German carmaker called it "a merger of equals."
In May, when DaimlerChrysler announced plans to rid itself of Chrysler, the Teutonic term of art was "a $7.4 billion sale."
But a look at the deal shows Cerberus will put most of its money right into Chrysler. Daimler's check is only $1.3 billion -- plus it will loan Chrysler money and eat current losses. Bottom line: Daimler actually pays out $673 million in the "sale."..more
June 27, 2007
Motor Vehicle Parts Suppliers Applaud Senate Action Defeating Card Check Bill
RESEARCH TRIANGLE PARK, N.C. – The Motor & Equipment Manufacturers Association applauded the Senate’s defeat of H.R. 800/S. 1041, the “Employee Free Choice Act” or “Card Check” bill on June 26.
“Yesterday in Washington the motion to proceed on the Employee Free Choice Act failed in the Senate stopping Card Check legislation during this session of Congress. MEMA is pleased that Card Check has been stopped and wishes to thank its many friends in the Senate who opposed this bill,” said Bob McKenna, president and CEO of MEMA. “We also wish to thank our many member companies from across the country who contacted their elected representatives opposing Card Check. The secret ballot in the workplace has been protected – for now. Card Check will be an issue again in 2008 and we must be prepared to make our case against it,” he added...more
Senate CAFE Bill Could Be Vetoed
Automotive News
WASHINGTON -- Energy Secretary Samuel Bodman warned that President Bush likely would veto an energy bill like the one passed by the Senate last week.
Bodman cited the bill’s fuel economy provisions as one of its flaws.
Senators voted for a combined car-truck fuel economy standard of 35 mpg by 2020 instead of leaving the precise numbers up to the regulatory experts, the energy secretary said. The standard would be about 40 percent higher than today’s numbers -- 27.5 mpg for cars and 22.2 mpg for trucks...more
June 26, 2007
Push
for Tougher Fuel Economy Rules Has Momentum in House
Detroit
Free Press
As the battle over fuel economy rules moves to the House, U.S. Rep. John Dingell was set to meet with House Speaker Nancy Pelosi, who has not agreed to Dingell's plan to delay the debate until September.
With the Senate's approval last week of a tough 35-miles-per-gallon standard for new vehicles by 2020 over the strident objection of Detroit automakers and Toyota Motor Co., backers of increased fuel efficiency believe they have momentum on their side to pass a similar increase quickly in the House...more
Chrysler Readies $20 Billion Loan for Cerberus Buyout
Reuters
NEW YORK -- J.P. Morgan is launching a $20 billion senior secured bank loan this week to back Chrysler Holdings' buyout by Cerberus Capital Management, banking sources told Reuters Loan Pricing Corporation.
The deal is split between bank loans for Chrysler Financial Services and Chrysler Corp...more
Can
U.S. Adopt Europe's Fuel-Efficient Cars?
The
Wall Street Journal
Whether by presidential order or congressional mandate, car makers in the foreseeable future will likely have to build fleets that average about 35 miles per gallon. But what kinds of cars and trucks will gasoline-guzzling Americans drive to achieve that average?
The answer would seem to lie in Europe, where fuel prices are roughly double U.S. levels amid heavy taxation and more than half of the vehicles bought have diesel-powered engines. Vehicles in Europe meet the magic average of 35 mpg...more
June 25, 2007
MAHLE
and RIKEN Sign MOU for a Global Cooperation; MAHLE Acquires Mexican
Parts Business
Aftermarket
News - Parts and Accessory News
STUTTGART, Germany -- MAHLE has signed a Memorandum of Understanding (MOU) with RIKEN Corp. for global cooperation promoting each company's strengths in the areas of piston rings, camshafts and other products.
In addition to the expansion of the already existing Allied Ring Corp., a 50-50 North American joint venture manufacturer of piston rings owned by MAHLE and RIKEN, both companies will study and promote global collaborative projects making use of existing resources...more
Kornafel Appeals for Industry Collaboration to Make Scholarship Applications Easier for Students
Aftermarket News - Association & Legislative News
Pete Kornafel is on a mission — to organize a website that would serve as a one-stop application portal for aftermarket scholarships, and he is appealing to the industry to help make the site a comprehensive reality.
Kornafel, who is CARQUEST vice chairman, is passionate about the topic of automotive education. He currently serves as chairman of the Global Automotive Aftermarket Symposium (GAAS) Scholarship Selection Committee, which has provided more than $1 million in scholarships over the last dozen years. In 2007, GAAS awarded 142 U.S. and 12 Canadian scholarships. He points out, however, that there were some 400 qualified applicants. Kornafel strongly believes that getting more organizations involved will increase students’ chances of getting awards, or multiple awards from different organizations or companies, all based on just one application. And of course, more students mean more technicians, which is good for the entire industry...more
Contact the Senate Today to Oppose the Employee Free Choice Act
On Tuesday the United States Senate is expected to vote on the controversial Employee Free Choice Act (EFCA), also know at the “Card Check” bill. On June 20 MEMA President Bob McKenna sent a letter to the Senate stressing the dangers of Card Check to the automotive supplier industry and urging them to vote against Card Check.
We have identified certain key Senators that need to hear from you now, especially if you have offices, factories or customers in their states. Call or fax now and tell them to vote no on Card Check...more
ROL Mfg. and Freudenberg-NOK's Corteco Division Close Deal
ROL Mfg. and Freudenberg-NOK General Partnership jointly announced that they have closed the transaction announced on May 21st which consists of ROL Mfg. acquiring specific assets of Corteco’s North American Traditional Aftermarket Business from Freudenberg-NOK.
Specifically, the acquisition includes the assets in the USA, Canada, and Mexico which are related to Corteco Gaskets & Seals, Omega Power Steering Hose & Kits, and MounTec Engine & Transmission Mounts...more
Imports Hold Key to CAFE Outcome
Automotive News
WASHINGTON -- The fuel economy ball is in the court of import-brand automakers.
Last week's stunning Senate vote for sharply higher fuel economy standards was a bitter defeat for the Detroit 3, which had lobbied heavily against the measure...more
Auto Industry Looks to House to Rescue It from CAFE
CongressDaily
The energy debate in the House probably will highlight tax policy and fuel efficiency standards after the Senate passed legislation late Thursday that sidestepped the first issue and disappointed the auto industry on the second. House Energy and Commerce Chairman Dingell early this week removed industry-friendly language regarding the Corporate Average Fuel Economy program from a draft his committee will mark up Wednesday. Dingell, who represents a Detroit-area district, is an ally of the auto industry and unions, which opposed the Senate action on CAFE. A Dingell spokesman said the committee will not change its plan, despite the chairman's opposition to the Senate decision to boost CAFE standards. That compromise would increase CAFE from 25 miles per gallon to 35 miles per gallon by 2020. It also includes language pushed by Nissan that would eliminate the distinction between domestic and international passenger car fleets, which the autoworkers union and U.S. companies fear would send jobs overseas...more
June 22, 2007
Senate
CAFE Momentum Rolls Over Automakers
Automotive
News
WASHINGTON -- Automakers and their allies suffered a stunning defeat in the U.S. Senate on Thursday.
Without public debate and without a roll call vote, the Senate adopted an amendment to require cars and trucks to meet a combined fuel economy average of 35 mpg by 2020 -- a 40 percent increase from today’s vehicles.
The full Senate approved the energy bill on a 65-27 vote shortly before midnight. The bill now moves to the House of Representatives for consideration...more
Pep Boys Ponders Moving Its HQ; Will Remain in Philadelphia
Pep Boys has had its headquarters in a former warehouse in Philadelphia since 1947. There are currently about 500 employees that work in the 300,000-square-foot building, and Pep Boys occupies about half of the available space. With this in mind, Pep Boys is looking into whether or not it’s time to move into a new headquarters facility.
“The company is absolutely committed to staying in Philadelphia. It is our birthplace. There is no intention of looking outside the city,” said Marie Gehret, the company’s communications manager. “The building was designed as a warehouse before World War II. It was converted into office space in 1947.”..more
June 21, 2007
Study:
Auto Industry Will Attract More Private Equity
Automotive
News
DETROIT -- The unhealthy state of the North American auto industry will continue to attract attention from private equity firms, according to an industry study released Thursday.
Because North American auto suppliers are struggling, they are cheaper to purchase, in relation to their earning potential, than companies in other industries, according to the study by AlixPartners LLC and the Original Equipment Suppliers Association...more
Pep Boys May Be Next Turnaround Play
DETROIT -- Auto parts and service retailer The Pep Boys looks like it might be the next turnaround story as its new chief executive digs in.
After a rough 2006, the Philadelphia-based company, formally known as The Pep Boys -- Manny, Moe & Jack, has posted a profit two quarters in a row. Chief Executive Jeffrey C. Rachor is moving fast to boost margins as he develops a long-term strategic plan.
Investors have responded, pushing up the stock recently to a 52-week high. Pep Boys shares are up 47 percent on the year and up about 10 percent since the company announced second-quarter results May 22. The stock is a bit expensive, however, trading at 91 times expected annual earnings per share. But it's expected to become cheaper as Pep Boys returns to sustained profitability...more
DENSO Announces Major Expansion for Canadian Manufacturing Facility
KARIYA, Japan -- DENSO Corporation announced that DENSO Manufacturing Canada, Inc., DENSO's subsidiary in Guelph, Ontario, Canada, plans to expand its 112,442 square-foot facility by approximately 215,200 square feet. The new investment will total US$63.7 million, and will create approximately 300 new jobs by 2010. Due to the expansion, capital was increased by US$24.5 million in May.
With this expansion, DENSO Manufacturing Canada will produce radiators, condensers and electric fans and integrate these products into engine cooling modules. The company will also continue producing air conditioning units...more
The Wall Street Journal Commentary: Seven Myths about Outsourcing
The Wall Street Journal
In recent years, there's been a seemingly endless boom in offshore outsourcing. But companies that think handing off an operation to an overseas provider is easy can get a rude awakening.
The transition often proves to be much more costly and complicated than expected. And companies often find that their high hopes about cost savings and greater efficiency don't pan out...more
June 20, 2007
Cerberus'
Purchase of Chrysler Approved by FTC
Associated
Press
WASHINGTON -- Federal antitrust regulators have cleared Cerberus Capital Management's $7 billion purchase of Chrysler, two people close to the deal said Tuesday.
The Federal Trade Commission made its decision before the end of a standard 30-day review, according to two people, who spoke on condition of anonymity because they were not authorized to speak publicly on the matter. Early termination of an FTC review typically signifies there will be no conditions placed on the deal...more
June 19, 2007
Dingell
Withdraws His Fuel Economy Plan
Detroit
Free Press
WASHINGTON -- U.S. Rep. John Dingell has shelved his automaker-friendly proposals on fuel economy standards and California emission rules, delaying until later this year action on tougher mileage increases.
Dingell pulled the bill after opposition by House Speaker Nancy Pelosi and other supporters of tougher fuel economy standards. The move in the House pushes off a congressional showdown over increases in fuel efficiency standards until later this year, with the Senate wrestling to produce an energy bill before its July 4th recess.
June 18, 2007
Which
of Your Employees is Ready to Take the Next Step?
Aftermarket
News - Association & Legislative News
The Automotive Aftermarket Industry Association’s Leadership Development Network (LDN) is encouraging junior-to-mid-level aftermarket professionals to develop lasting involvement in the industry and the association through participating in the Fall Leadership Days.
“The Next Step program is the heart and soul of the LDN Committee,” said LDN past chairman Frank Frederick, ROL Manufacturing of America, Inc. “As part of our mission, LDN recruits industry talent to get involved with AAIA’s various committees and initiatives which benefit the entire aftermarket.”..more
DENSO Establishes New Company in China to Produce Diesel Common Rail Systems
Aftermarket News - Parts and Accessory News
KARIYA, Japan -- DENSO has established a wholly owned company, DENSO (Changzhou) Fuel Injection System Co., Ltd., to produce common rail systems for diesel vehicles in Changzhou, Jiangsu, China. The investment will total approximately $32 million.
Construction for the new company is scheduled to begin in October with completion in August 2008. Production start is scheduled for July 2009. By fiscal 2012, the company's sales are expected to be approximately $148 million...more
New Poll Shows Many Americans Cutting Back for Gas
Aftermarket News - News Extras
New research by Quinnipiac University shows that rising gasoline prices are a “very serious problem” according to 41 percent of American voters. Another 32 percent view gas prices as a “somewhat serious problem.”
As a result, 58 percent of American voters say they have “cut back significantly” on how much they drive, the independent survey found, with 48 percent saying they have “cut back significantly” on household spending in order to pay higher gas prices...more
FRAM, Arm & Hammer Team up to Launch New Cabin Air Filter
Aftermarket News - Parts and Accessory News
DANBURY, CT -- FRAM and Arm & Hammer have teamed up to develop and launch the new FRAM Fresh Breezed cabin air filter.
The FRAM Fresh Breeze cabin air filter with carbon and Arm & Hammer baking soda was designed to absorb odors from the air that passes through the vehicle’s ventilation system. It is the first time Arm & Hammer baking soda has been incorporated into an automotive air filter product...more
Busy Week Ahead for Senate: Members Urged to Get Involved
This week will be a busy one in the U.S. Senate, as two bills affecting motor vehicle parts manufacturers are up for debate: HR 6 which addresses issues of fuel economy and energy efficiency and S. 1041, the Employee Free Choice Act.
Members of MEMA and its market segment associations are urged to get involved on both these important issues at the updated MEMA Action Alert Center by clicking here...more
U.S. Pushes Revisions to Free Trade Proposal with South Korea
AutoBeat Asia
The U.S. and South Korea had planned to finalize their new free trade agreement—the largest such U.S. pact since the North American Trade agreement with Canada and Mexico 15 years ago—by the end of June.
But now the U.S. is calling for changes to the proposal amid growing opposition from Democrats and constituents in auto-making states...more
China Promises to Work with U.S. to Curb Counterfeit Goods
AutoBeat Asia
Under a memorandum of cooperation signed last week, China has agreed to pursue companies identified by U.S. authorities as potential suppliers of counterfeit goods seized at American ports. About 80 percent of the nearly 15,000 shipments of illegal goods confiscated by U.S. border officials last year came from China.
Under the new plan, the Customs Dept. will share information with its Beijing counterparts about the source of seized goods. China will issue quarterly updates on its progress in apprehending intellectual property pirates...more
June 15, 2007
Michigan's
Levin Prepares Fuel-Economy Measure
Wall
Street Journal
Sens. Carl Levin and Kit Bond announced on June 14 a plan to offer an amendment to current fuel economy legislation in an attempt to ease the regulatory burden for auto makers.
The proposal would counter a current Senate energy bill requiring auto makers to achieve a fleet-wide average of 35 miles per gallon for their cars and trucks by 2020, with 4 percent annual increases the next decade after. That legislation, which has wide support, would mark the first significant increases in mileage rules in more than 20 years...more
MEMA Statement on Fuel Economy Legislation
(Statement by Bob McKenna, MEMA president and CEO, released on June 14)
RESEARCH TRIANGLE PARK, N.C. – The Motor & Equipment Manufacturers Association (MEMA) and its member companies support efforts to improve fuel efficiency of all motor vehicles. Motor vehicle suppliers have a long history of working with vehicle manufacturers to develop the technologies and products to make vehicles of today and tomorrow more fuel efficient.
MEMA supports the amendment offered by Senators Carl Levin (D-Mich.) and Christopher Bond (R-Mo.) that will seek realistic solutions to improved fuel economy that are technologically feasible. In addition, the Levin-Bond amendment provides incentives for suppliers and vehicle manufacturers alike for advanced battery systems, light-weight materials, and other innovative technologies that will bring more fuel efficient vehicles to the marketplace...more
Gasoline Pushed Up Producer Prices in May
The New York Times
A double-digit jump in the price of gasoline pushed inflation at the wholesale level up in May, but tame increases for most other goods suggested that price increases were largely contained and businesses would not react by raising prices.
The Labor Department said yesterday that the Producer Price Index, a national survey of prices before they reach retail buyers, accerlerated 0.9 percent in May, from 0.7 percent in April. From May 2006 to May 2007, they rose 4.1 percent...more
June 14, 2007
Pennzoil
Platinum Kicks Off "Ultimate Protection" Tour
Aftermarket
News - Parts and Accessory News
Pennzoil Platinum has kicked off its nationwide Pennzoil Platinum Ultimate Protection Tour, which features an interactive 53-foot mobile display unit showcasing the benefits of Pennzoil Platinum full synthetic motor oil. Now in its third season, the redesigned Tour will travel to more than 20 auto enthusiast events, select NASCAR races and for the first time ever, three National Tractor Pull Association (NTPA) races...more
Automakers Lose Loophole in Senate CAFE Debate
Automotive News
WASHINGTON -- Senate allies of car companies said today they are dropping a proposal that would allow automakers to avoid future fuel economy requirements by proving to the government they would accomplish more by other means to cut fuel use and greenhouse gas emissions.
Sen. Carl Levin, D-Mich., said the proposal had been misinterpreted by opponents of his effort to offer an alternative to the fuel economy bill that is being debated by the Senate. The industry calls the Senate measure extreme and unworkable...more
Senators Try to Limit Fuel-Efficiency Rules
Washington Post
Allies of the U.S. auto industry stepped up a campaign yesterday to soften strict vehicle fuel-efficiency mandates in proposed energy legislation before the Senate, even as momentum for the tougher measures continued to build.
Sens. Carl M. Levin and Debbie Stabenow, the two Democrats from Michigan, and Christopher S. Bond (R-Mo.) are leading the effort to craft an amendment that opponents say would water down measures already approved by the Senate Commerce Committee...more
Fed 'Beige Book' Cites Trucking Slowdowns
Transport Topics
The Federal Reserve gave a generally positive assessment of the U.S. economy last week as manufacturing and job growth picked up, but the Fed’s report cited some regional slowdowns in trucking and truck manufacturing.
Sluggish demand or declines in trucking and shipping were noted in half the Fed’s regional districts, the Fed’s “Beige Book” report released June 13 said. Dallas was the only area to note a pickup in the trucking business...more
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Washington Insider, a free e-newsletter produced by MEMA’s Washington, D.C. office, is published every Monday.
This insightful weekly newsletter covers federal legislative and regulatory issues impacting the motor vehicle parts supplier industry...more
June 13, 2007
Toyota
Hits Milestone: One Million Hybrids Sold
Aftermarket
News - OE News
TORRANCE, CA -- Toyota this week announced it hit a milestone -- selling its one-millionth hybrid vehicle. Of the one million hybrid sales worldwide, more than half have been sold in the United States -- 541,210 units from 2000 through April 2007.
"The cost benefit of hybrids is becoming more apparent with climbing gas prices," said Jim Lentz, Toyota Motor Sales (TMS) executive vice president. "We anticipate combined sales of Toyota and Lexus hybrids of a quarter million units in the U.S. during calendar year 2007." ..more
Analyst Upbeat About Auto Suppliers
Associated Press
NEW YORK -- A KeyBanc analyst said he is "cautiously optimistic" about the future of automotive suppliers after meeting with automotive company officials at a recent conference.
Brett D. Hoselton said automotive production, sales and inventory are at healthy levels, while the framework for supplier pricing seems to be improving...more
Detroit Blasted over Fuel Rules: Automakers Pressed to Act
Detroit Free Press
WASHINGTON -- Detroit's auto industry was cast as an environmental villain Tuesday in an unusual blast of criticism by backers of tougher fuel-economy standards who contend the Senate must force the industry to build more efficient vehicles.
U.S. Sen. Dianne Feinstein, D-Calif., blistered Detroit automakers, saying the industry had "buffaloed" Congress with false claims of financial and technological hurdles to meeting a proposed standard of 35 miles per gallon by 2020...more
Bosch Says It Has Contract for Diesel-Hybrid Parts
Automotive News Europe
BOXBERG, Germany -- Robert Bosch GmbH has a contract to supply diesel-hybrid technology to a European automaker.
The German parts maker expects the system to be on the road by 2010, said Rolf Leonhard, Bosch's executive vice president of engineering for diesel systems, during a press event here today.
"It would be the benchmark in fuel consumption achieving CO2 emissions below 100 grams per kilometer," said Leonhard...more
Americans Falling Out Of Love With Gas Guzzlers
The Tampa Tribune
Last month, Jeff Livengood placed an ad in the newspaper in hopes of selling his sport utility vehicle, a 2003 Ford Expedition.
The response: He hasn't gotten one offer, and his hopes of selling the SUV are fading.
As many owners of large SUVs and trucks are finding, the demand for used vehicles that burn up gas is drying up - fast...more
June 12, 2007
United
Components Appoints Daniel Johnston as CFO
Aftermarket
News - Personnel News
EVANSVILLE, IN -- United Components, Inc.’s (UCI) board of directors has appointed Daniel Johnston as UCI's new chief financial officer. Johnston will also serve as a member of the board.
Johnston, 49, comes to UCI from Solae, LLC, a $1 billion producer of soy-based food products, where he was vice president and chief financial officer. Prior to Solae, he spent more than 10 years in senior financial and operational positions at United Industries Corp, a manufacturer of consumer packaged goods, which was sold to Rayovac Corp. in 2005.
"We are thrilled to have Dan Johnston join the UCI team," said Bruce Zorich, chief executive officer of UCI. "Dan has an excellent financial and operational background, and a proven track record as a successful CFO. On a personal and professional level, he'll be a great fit for our organization."
Southern Auto Exodus Continues to Weaken Midwest Economy
AutoBeat Daily
Michael Moskow, president of the Federal Reserve Bank of Chicago, says the continued shift of auto production to the South is likely to further erode the Midwest’s economic strength.
Speaking at an auto conference in Chicago, Moskow called the truck-driven rebound of domestic automakers in the 1990s “fleeting.”
He notes that the industry’s center moves farther south each time foreign OEMs add more domestic capacity in that region -- and further weakens auto-dependent Midwestern states that are already underperforming the U.S. economy...more
Rising Costs for Refiners Delay Expansion Projects: Limited Capacity Could Lift Prices at Pump for Years
Wall Street Journal
The cost of building or expanding oil refineries is rising rapidly, contributing to delays in increasing the U.S. gasoline supply at a time of near-record prices.
The decision to rethink construction comes as the industry, flush with profits from high gasoline prices, is under fire from Congress and consumer groups in the U.S. for not doing enough to build capacity. Delays could expose the industry to additional criticism and unwanted oversight...more
Champ Labs Releases New "Luber-Finder" eCatalog
Aftermarket News - Parts and Accessory News
ALBION, IL – Luber-finer, a division of Champion Laboratories, Inc., has introduced its new “Luber-finder” eCatalog for all Luber-finer-branded automotive and light truck, medium and heavy-duty filters.
All of the information in the “Luber-finder” eCatalog is contained on a CD that can be loaded onto any PC running Windows 2000 and higher systems...more
Fuel Economy Standards Must Rise, Senate Chief Says
Detroit Free Press
WASHINGTON -- U.S. Senate Majority Leader Harry Reid warned the auto industry Monday that the time for opposing tougher fuel economy standards had passed, as the Senate began debating a bill that would set a tough increase to 35 miles per gallon for cars and trucks by 2020.
The measure would require the industry to average a 4 percent annual efficiency increase, up from about 1 percent over the past few years. It will be considered over the next two weeks as part of a large package of energy proposals that includes new requirements for alternative fuels, the first federal rules against gasoline price-gouging and efficiency standards for federal buildings...more
Toyota Goal: 1 Million Hybrids a Year
USA Today
After taking a decade to sell its first 1 million gasoline-electric hybrid vehicles worldwide, Toyota Motor™ now says it plans to sell 1 million a year within a few years.
At the same time, the big automaker appears to be backing away from a pledge made a few years ago that hybrid powertrains would be available as options on nearly every one of its U.S. vehicles by 2010...more
June 11, 2007
Cummins
Breaks Ground on Fuel System Plant in China, Production Expected in
Early 2008
Aftermarket
News - Truck Fleet News
WUHAN, China -- Cummins broke ground last week on its first fuel systems plant outside North America. Cummins Fuel Systems - Wuhan will be the company’s 13th production facility in China and is expected to begin production early next year.
Wuhan also is home to a regional Cummins service center and a technical center joint venture owned by Cummins and Dongfeng Motor Company. Cummins plans to invest approximately $10 million in the plant, which will assemble Cummins Common Rail (CCR) fuel pumps and CELECT injectors/fuel pumps primarily for the China market...more
China Becomes Second Largest Exporter of Auto Parts to U.S.
Aftermarket News - News Extras
BEIJING -- China overtook Germany in the first quarter to become the second largest exporter of automotive spare parts to the United States, Shanghai Securities News reported Friday.
China exported $1.936 billion worth of auto parts to the U.S. in the first quarter this year, just topping Germany which notched up $1.934 billion U.S. dollars, according to statistics from the U.S. Commerce Department cited by the newspaper. Japan is way out in front with a substantially higher $3.57 billion...more
Tech Students Offer Fuel Solutions: Drive Systems Could Influence Direction of U.S. Efficiency Efforts
Aftermarket News - News Extras
Sick of paying $40 or more to fill up your tank? Worried about global warming? If so, you might be interested in the advanced drive systems that student engineers showed off in downtown Detroit on Thursday.
As gas prices remain above $3 a gallon, teams of college students involved in the Challenge X automotive engineering competition used a variety of advanced propulsion technologies. Their goal was to increase fuel efficiency and make vehicles more environmentally friendly without sacrificing their appeal to consumers...more
U.S. Steel May be Buyout Target
Automotive News
DETROIT -- Shares of U.S. Steel Corp., a key producer of automotive steel, climbed nearly 8 percent Friday afternoon after reports that German steel maker ThyssenKrupp may be interested in buying the company.
ThyssenKrupp AG, based in Duesseldorf, may be interested in buying either Russia's OAO Severstal or U.S. Steel, according to Interfax News Agency. U.S. Steel shares rose $9.25 Friday to $125.05. Volume was about four times higher than average for the stock.
U.S. Steel spokesman John Armstrong said the active trading was the result of a market rumor, and "we don't comment on market rumor." A spokesman for ThyssenKrupp could not be reached.
The Real Cost Of Offshoring
Business Week
Whenever critics of globalization complain about the loss of American jobs to low-cost countries such as China and India, supporters point to the powerful performance of the U.S. economy. And with good reason. Despite the latest slow quarter, official statistics show that America's economic output has grown at a solid 3.3 percent annual rate since 2003, a period when imports from low-cost countries have soared. Similarly, domestic manufacturing output has expanded at a decent pace. On the face of it, offshoring doesn't seem to be having much of an effect at all.
But new evidence suggests that shifting production overseas has inflicted worse damage on the U.S. economy than the numbers show. BusinessWeek has learned of a gaping flaw in the way statistics treat offshoring, with serious economic and political implications. Top government statisticians now acknowledge that the problem exists, and say it could prove to be significant...more
Trade Deficit Narrowed a Bit in April
New York Times
The United States’ trade imbalance with the rest of the world narrowed slightly in April, providing a tentative sign that less-lopsided trade could help lift the economy this year.
With economic growth expected to be only about two-thirds the pace of last year, trade could be an important factor in keeping the economy from stalling, economists said. Growth has slowed in the United States, but economies in Asia and Europe are surging and snatching up more and more American exports...more
Arkansas' Auto Woes: Workforce Issues May Have Derailed Plant
Associated Press
MARION, Ark. -- Arkansas wants to produce cars instead of cotton in a 1,700-acre field near the Mississippi River, but two recent rejections by Toyota Motor Corp. have raised worries _ even by the mayor _ that local workers aren't up to the task.
"I think this part of the state has a disproportionate number of uneducated or undereducated residents, maybe even unmotivated," Marion Mayor Frank Fogleman said. "I do think the workforce in this area exists that could adequately serve a Toyota-type industry, though."..more
June 8, 2007
Champ
Labs Releases New "Luber-Finder" eCatalog
Aftermarket News - Parts and Accessory News
ALBION, IL – Luber-finer, a division of Champion Laboratories, Inc., has introduced its new “Luber-finder” eCatalog for all Luber-finer-branded automotive and light truck, medium and heavy-duty filters.
All of the information in the “Luber-finder” eCatalog is contained on a CD that can be loaded onto any PC running Windows 2000 and higher systems...more
Dems Rise Up Against Fueol Rules Proposal
Detroit Free Press
WASHINGTON -- Rep. John Dingell's Energy and Commerce Committee will prepare to vote on a proposed fuel economy increase in the next two weeks, despite rising opposition from at least a dozen Democratic colleagues against its limits on greenhouse gas controls by California and other states.
The schedule outlined at a hearing of the Energy and Air Quality subcommittee Thursday by Rep. Rick Boucher, D-Va., means automakers could face back-to-back debates over fuel economy in the House and Senate within a matter of weeks. Automakers have acknowledged Congress' momentum for fuel economy increases this year but are lobbying lawmakers in both chambers for wide leeway on those requirements and sizable aid for alternative fuels and new technologies...more
Exec Sees U.S. Supplier Edge
Detroit Free Press
U.S. auto suppliers can benefit from the weak U.S. dollar, especially as they compete with suppliers in Europe, said Bo Andersson, General Motors Corp.'s group vice president of purchasing and global supply.
"With a weaker U.S. dollar, the U.S. supply base is more competitive on a global basis," he told reporters after a panel discussion Thursday about GM's efforts to improve its relationship with suppliers...more
Ford Wins Bar to Imports of Taiwan-Made Truck Parts
Bloomberg
Ford Motor Co., the second-biggest U.S. automaker, won a bar to U.S. imports of copycat grilles, headlamps and other parts for its top-selling F-150 truck.
The U.S. International Trade Commission issued an order yesterday to block imports of Taiwanese parts that infringe seven Ford design patents, the agency said in a statement. The decision is subject to review by President George W. Bush...more
Business Week Commentary: How Labor Could Fix Detroit
BusinessWeek.com
Detroit is at a crossroads. The Big Three carmakers and the United Auto Workers can bargain this summer for a new, four-year labor deal that gives the 100-year-old U.S. auto business a shot at being competitive, or they can walk away with an incremental deal that ensures years more of struggle until one of the companies goes under.
The word is that this time around, the UAW has some willingness to negotiate some real changes. Two sources close to UAW leadership say that the union is willing to negotiate a deal at least on health care that would greatly reduce the $1,500 to $1,800 per car disadvantage in health-care costs that General Motors (GM), Ford Motor F, and Chrysler Group (DCX) each suffer...more
June 7, 2007
Big
3 CEOs Fight Fuel Standards
The
Detroit News
WASHINGTON -- The CEOs of Detroit's three automakers strongly lobbied against a proposal to significantly increase fuel economy standards Wednesday, warning congressional leaders that it could cost their companies tens of billions of dollars and cripple the struggling domestic industry.
After more than five hours of closed-doors meetings with House and Senate leaders, General Motors Corp. Chairman and CEO Rick Wagoner and Ford Motor Co. President and CEO Alan Mulally said they were in favor of "reasonable" increases in fuel economy mandates, but they pointedly declined to endorse any specific measure...more
Chinese Auto Parts Enter the Global Market
The New York Times
JINZHOU, China — Zhao Qingjie’s favorite book, he says, is a Chinese translation of Lee A. Iacocca’s autobiography.
Zhao, who runs one of the largest manufacturers of automotive starters and alternators in China, has long been interested in the United States. That should make his counterparts in the auto parts industry elsewhere very nervous...more
GM Advances Plans for Volt Concept Car
Aftermarket News - OE News
WILMINGTON, DE -- General Motors Corp. took the occasion of its annual meeting on Tuesday to announce another step to get its Chevrolet Volt long-range electric series-hybrid vehicle into the hands of drivers.
GM awarded to Michigan-based Compact Power Inc., a subsidiary of Korean battery manufacturer LG Chem., and to Continental Automotive Systems, a division of Continental A.G., two contracts for advanced development of lithium ion batteries for the Volt...more
Honda Ends Production of Hybrid Accord Models
Aftermarket News - OE News
TORRANCE, CA -- Honda Motor Co. will stop making the hybrid version of its Accord sedan at the end of the model year due to poor sales, the No. 2 Japanese automaker said.
"The reason it didn't sell is because the price premium wasn't justified by the gas mileage," Edmunds.com automotive analyst Jesse Toprak said.
Honda sold 439 Accord hybrids in the United States last month, the Los Angeles Times reported. By contrast, Toyota Motor Corp. sold 24,009 of its less-expensive, segment-leading Prius sedans...more
June 6, 2007
Industries
Brace for Tough Battle over Patent Law
The
Wall Street Journal
WASHINGTON -- U.S. patent law, already shaken up by a Supreme Court ruling this spring, is facing its biggest overhaul in 50 years, amid a legislative battle that pits drug companies against some major players in the financial and high-tech sectors.
The battle's next round is in the Senate, where a committee is set to consider legislation backed by Democratic and Republican leaders that would make patents harder to get and easier to challenge. It would also reduce penalties for violating them...more
House Speaker Won't Meet Auto CEOs
The Detroit News
WASHINGTON -- House Speaker Nancy Pelosi -- back from a trip to see melting glaciers in Greenland -- will skip a meeting with the CEOs of Detroit's automakers.
General Motors Chairman and CEO Rick Wagoner, Ford President and CEO Alan Mulally and Chrysler Group CEO Tom LaSorda are expected to be on Capitol Hill to attend a manufacturing summit sponsored by Senate Democrats. The CEOs will zigzag through the Capitol all day, holding at least four hours of private meetings with the Senate and House leaders...more
June 5, 2007
James
Burdiss Named Chief Information Officer for Affinia
Aftermarket
News - Personnel News
ANN ARBOR, MI – Affinia Group has named James Burdiss vice president and chief information officer. A 30-year information systems and management executive, Burdiss will report to Terry McCormack, president and chief executive officer of Affinia Group.
Burdiss comes to Affinia from Smurfit Stone Container Corp. of Chicago (SSCC), a Fortune 250 company that is North America’s largest producer of corrugated packing. While with SSCC, Burdiss served as senior vice president and chief information officer...more
O'Reilly Auto Parts to Leave the Alliance, O'Reilly Announces New Parts City Auto Parts Jobber Program
aftermarketNews.com
SAN ANTONIO, TX – O’Reilly Auto Parts and Aftermarket Auto Parts Alliance (Alliance) announce with great regret that after almost 30 years of affiliation O’Reilly will be terminating its shareholder status effective Dec. 31, 2007.
David O’Reilly, chairman of O’Reilly Auto Parts, and longtime board member of the Alliance stated, “This is a very tough decision for our company. We have many great memories and relationships in the Alliance. We have benefited in countless ways through our association with some of the very best operators in the business. Our company has reached a point where it has become very difficult for us to maintain product line compliance which is the core driver of the association’s effectiveness.”..more
Carmakers Are Poised to Make Deal on Fuel Rules
Detroit Free Press
WASHINGTON -- After more than 30 years of staunch opposition to federal oversight, the U.S. auto industry appears ready to argue for higher fuel economy standards to block tougher proposals that several automakers worry could cripple their finances.
The latest sign came in a quiet posting of a draft bill from the House Energy and Commerce Committee, chaired by U.S. Rep. John Dingell, D-Mich., the industry's top champion on Capitol Hill...more
Showdown Looms on China Trade
The Wall Street Journal
A showdown is brewing between the White House and Capitol Hill over how best to address China's undervalued currency and other alleged unfair trade practices.
With little progress made on the issue during the semiannual economic summit between the U.S. and China last month, lawmakers on both sides of the aisle are nearing completion on legislation that could result in punitive action against China...more
Plunge Puts China in Role Reversal
The Wall Street Journal
SHANGHAI -- Another sharp fall in China's stock market underscored how quickly market challenges have flipped for China's government in the past week, from taming speculation to discouraging panic selling.
The Shanghai Composite Index yesterday sank 8.3 percent to 3670.40, its worst performance since February and the second-biggest drop in a decade. The benchmark index has shed 15 percentin the four sessions since Beijing tripled a trading tax on Wednesday. The Shanghai Composite was 3.4 percentlower at 3,542.35 in the first 45 minutes of trading Tuesday...more
June 4, 2007
Levin
Plan Includes Hybrids
Detroit News
MACKINAC ISLAND -- U.S. Sen. Carl Levin said an alternative fuel efficiency proposal he will introduce later this month will include at least $1 billion for advanced battery research to help auto companies make plug-in hybrids a reality.
The current draft of the bill requires light trucks to hit 30 miles per gallon by 2025 and passenger cars 36 mpg by 2022, but in an interview Friday at the Detroit Regional Chamber's Mackinac Policy Conference, Levin said the dates and specific requirements could change before the plan is formally introduced...more
Supplier Opportunities Blossom in Russia
AutoBeat Asia
Vehicle sales have been surging in Russia for several years, but Western suppliers are only now beginning to set up local production capacity there, notes a new report by Ernst & Young.
One reason is that the Russian auto industry traditionally has been controlled by state-owned enterprises with a vertical integration rate of almost 80 percent. Thus about 95 percent of current Russian component producers supply only Russian OEMs, E&Y says. Fewer than 5 percent work with Western OEMs operating in Russia, and only 1 percent have export activities...more
June 1, 2007
Webinar to Address How Aftermarket Suppliers Can Improve Profit by Reducing Inventory Levels
RESEARCH TRIANGLE PARK, N.C., – As automotive aftermarket manufacturers struggle to manage inventory and fill rates, one supplier discovered that there is an easy-to-implement asset management solution that provides fast and significant results. The case study on inventory optimization and deploying the right inventory at the right location will be the focus of a webinar to take place Tuesday, June 19, from 2 to 3 p.m. (EDT).
The webinar, which is free to the industry, is produced by MEMA Financial Services Group (MFSG) and Custom Technology Solutions (CTS), and will be hosted by The Catevo Group. Those interested in attending the webinar should send an e-mail to aftermarket@catevo.com. Log-in information will be provided prior to the webinar...more
MEMA, U.S. Department of Commerce Participate in Trade Delegation to Autopromotec 2007
WASHINGTON, D.C. – The Motor & Equipment Manufacturers Association (MEMA), along with officials from the United States Department of Commerce participated in an official trade delegation to Autopromotec 2007 in Bologna, Italy, May 23-27.
Autopromotec is an international trade exhibition consisting of high-tech service equipment, products and services for the automotive and transportation industry. The show included more than 1400 exhibitors from 49 countries and attracted more than 100,000 visitors...more
Pep boys is Looking at Sales, Sale-Leaseback Transactions
Automotive Week/The Greensheet
Pep Boys management is asking for patience from the financial community as it is working on a long-term strategic plan to grow the business. During a recent conference call to discuss its first-quarter financial results, Jeff Rachor — the new president and CEO of Philadelphia-based Pep Boys — said he is working with the company’s senior leadership team and board of directors to define the company’s purpose and develop a plan. Rachor promised analysts he would unveil the plan no later than the third-quarter financial results conference call.
“I think it would irresponsible to rush the strategic planning process,” he explained. “It has taken years for the company to lose its way, and I’m committed to getting it right this time. In addition, I believe the organization needs to continue to focus on building on the recent positive trends to deliver consistent profitability and incredible execution in our core business before we take on additional strategic challenges.”..more
Autobacs Forms Credit Line of Up to $823 Million for Acquisitions
AftermarketNews.com
TOKYO – Japanese automotive parts and accessories retailer Autobacs Seven Co. has established a committed line of credit capped at $822.8 million, to finance the acquisition of competitors inside and outside Japan.
An agreement for the five-year commitment line was signed with an investment firm in the U.K...more
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