General Motors reports that it has come to an agreement to sell its Nexteer steering operations. Nexteer, which had $6.2 billion in revenue as recently as 2008, was acquired by GM as part of a deal to help Delphi exit bankruptcy. The buyer? Pacific Century Motors, which is part of The Tempo Group with ties to the government in Beijing.
According to The Wall Street Journal, President Obama has taken a pass on granting auto parts suppliers' request for $10 billion in aid, leaving the financially-strapped companies to seek succor from Congress instead.
According to Automotive News, Visteon Corp. has filed for Chapter 11 bankruptcy protection. The Michigan-based tier-1 supplier was spun off from the Ford Motor Company back in 2000, and it has struggled ever since. The filing took place in a Delaware courtroom, where the company has listed total assets of $4.58 billion and total debt of $5.3 million.
In the latest installment of an annual supplier relations survey put together by Planning Perspectives, Honda and Toyota have upheld their top positions in spite of suppliers describing downgrading them to merely "adequate." Still above average in supplier relations rankings (along with Nissan), previously Japan's two largest automakers were ranked "good to very good." Honda is still gets top marks for involving suppliers in product development and for helping suppliers lower costs and increase
When is a profit not a profit? When it's the result of bankruptcy prevention measures, like Visteon's report of a $2 million profit during the first quarter of 2009. The auto supplier is reporting that each share earned two cents during the period, compared to a $105 million loss last year. The company's books saw a gain after sending its British operations into Chapter 11, an occurrence that will not be repeated. The one-time nature of the accounting measures doesn't bode well for the next thre
As part of Nissan's Green Program 2010, Nissan hopes to reduce 2010 carbon dioxide emissions from global manufacturing to 7 percent below 2005 levels. In order to make this goal a reality, Nissan is requesting environmental reports from every one of their Tier 1 and Tier 2 suppliers which must include the supplier's carbon footprint. According to Automotive News, this will affect 500 Tier 1 suppliers in Japan, 300 in the United States and 300 in Europe, along with an uncounted number of Tier 2 s
Delphi has reached a buyout agreement with the United Auto Workers and General Motors. Announced Friday, the deal will extend buyout offers to each and every hourly worker, giving all UAW-represented employees (around 22,000 out of 31,000 Delphi employees) a chance to bail with a safety net.
Toyota North American senior VP Dennis Cuneo said at a recent conference in Detroit, Michigan that automakers
must cooperate more with their parts suppliers. In his declaration, he noted that 10 of Toyota's 15 suppliers are
currently in bankruptcy. Such situations point to automakers' price-oriented focus, demanding cuts even when
supppliers are faced with rising material costs. Cuneo maintains that healthy supplier relations are in the best
interest of everyone, as many different automaker
Could Delphi's bankruptcy
be a strategic long-term move by the parts maker? According to Business Week, Delphi has only declared
bankruptcy for its U.S. operations-- overseas facilities in Mexico, China and other countries are not affected. If the
unions and Delphi don't reach a compromise later this year, and bankruptcy courts approve the company's request to void
its union contracts, only 7,000 of the 32,000 union members would be retained. Production would then be shouldered by
Delphi's recent announcement that it will close over twenty plants in the US, and dramatically slim its number of
"core competencies," General Motors is not just looking for new sources for business that Delphi wants
to dump - it's trying to talk its best suppliers into purchasing complete business units from the bankrupt supplier.
This according to GM purchasing chief Bo Andersson, who shared the news at a supplier meeting set up by
the Original Equipment Manufactu