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Category Archives: Auto Parts
Cash for Clunkers helps Automakers
DETROIT (Aug. 6, 11 p.m. ET) — Auto suppliers are ramping up production in line with automakers’ push to rebuild dealership inventories that have been depleted by widespread production shutdowns this summer and the cash-for-clunkers program.
Increased minivan production at the Chrysler Group to restock dealership lots and higher production of General Motors Co.’s GMT900 full-sized pickup platform is driving production increases at the U.S. plants of International Automotive Components Group North America, said John Smail Jr., IAC’s vice president of commercial operations .
Two or three weeks ago, “close to 80 or 85 percent” of IAC’s North American factories were shut down in some form, Smail said. “Most of our facilities are coming back to at least one shift, sometimes two shifts,” he said.
IAC supplies instrument panels, cockpits, door panels, flooring and acoustics.
Smail said cash for clunkers is also driving demand.
Samir Salman, CEO of the NAFTA region for Continental AG, says demand in North America is 10 to 20 percent higher across all company product lines compared with production levels before Chrysler’s bankruptcy, but the cash-for-clunkers program is only one factor driving the increases.
“One fact that we shouldn’t forget is that Chrysler was for roughly two months in bankruptcy where they idled all their production. And we had massive shutdowns from GM,” Salman said.
The depleted dealership inventories combined with cash for clunkers are increasing demand more quickly than would have happened normally.
Kinetic Die Casting is a aluminum and zinc die casting company. If you would like to know more information, please visit our website:Kinetic Die Casting Company
Marathon Automotive Group sold to Revstone
Marathon Automotive Group acquired SPX’s Contech Division (die casting) in 2007 for $146 million. It has since filed for bankruptcy. The PBGC has agreed to accept the pension plan and Marathon wants to sell the company to Revstone Industries, LLC., for $14 million and assumption of unspecified liabilities. The fly in the ointment? Ford Motor Co., Automotive Components Holdings LLC, BMW AG and Delphi filed a joint objection to the sale.
From the Detroit News, Tuesday, May 26, 2009:
PBGC to take over auto supplier Contech’s pension plan
David Shepardson / Detroit News Washington Bureau
Washington — The Pension Benefit Guaranty Corporation said Tuesday it will assume responsibility for a bankrupt Michigan auto supplier’s underfunded pension plan.
The government’s pension insurer will take over Portage-based Contech US LLC’s pension plan covering 532 workers and retirees effective immediately, the agency said in a statement.
According to PBGC estimates, the Contech US LLC Pension Plan is 38 percent funded, with assets of $8.4 million to cover benefit liabilities of $22 million. The agency expects to cover $12 million of the $13.6 million shortfall.
Contech LLC sought bankruptcy protection in January in Detroit after it had been acquired in 2007 by investment firm Marathon Asset Management LLC. It has nine U.S. plants, with its Walled Lake plant responsible for much of its revenue.
“This action is an integral part of our ongoing efforts to restructure Contech and meet the challenges of the automotive industry going forward. We continue to work closely with our lenders and customers to reach a consensus on the remaining changes that are necessary,” said Morris Rowlett, chairman & CEO of Contech in a statement in January when the company sought bankruptcy protection.
The PBGC will take over the assets and use insurance funds to pay guaranteed benefits earned under the plan, which ends Tuesday.
Retirees and beneficiaries will continue to receive monthly benefit checks without interruption, and future participants will receive their pensions when they are eligible to retire, the PBGC said.
Within the next several weeks, the PBGC will send notification letters to all participants in the Contech plan detailing the change.
Privately held Contech was founded in 1950 and builds light metal die casting and machining for automobile and parts manufacturers.
The company was sold from former owner SPX Corp. to Marathon Asset Management, a private equity firm, in 2007. Contech’s U.K. subsidiary based in Wales is not in bankruptcy.
Contech has six casting facilities in Michigan, Indiana and Tennessee, and had sales of $312 million in 2007, but saw sales fall to $223 million in 2008 as auto sales plummeted.
Marathon has sought to use Section 363 of the bankruptcy code to sell nearly all of Contech’s casting assets to Revstone Industries LLC.
Revstone would pay $14 million and assume certain liabilities from its casting facilities under the proposed sale.
Last week, several major customers of Contech filed an objection to the sale.
Ford Motor Co., Automotive Components Holdings LLC, BMW AG and Delphi filed a joint objection to the sale. Ford and Delphi both have said they won’t accept Revstone as a replacement supplier.
dshepardson@detnews.com (202) 662-8735
Kinetic Die Casting manufactures products like aluminum hardware, and aluminum boxes. If you would like more information on Kinetic Die Casting, please visit our website:Kinetic Die Casting Company
Revstone to Purchase Auto Parts Suppliers
For some auto parts suppliers, the end of the rocky road of the past couple years may be over as a few sell off assets.
Intermet Corp., which filed for Chapter 11 on Aug. 12, may finally return to smooth pavement. The Fort Worth auto parts maker held an auction on Monday where Revstone Industries LLC, a privately held company based in Paris, Ky., was the winning bidder. (The Deal Pipeline subscribers can read more here.)
This was second bankruptcy filing since Sept. 29, 2004, for Intermet. Interestingly, the Intermet deal was Revstone’s second distressed acquisition of late. In May, it purchased six plants from bankrupt auto parts maker Contech LLC. (The Deal Pipeline subscribers can read about the Contech deal here.)
In other news, publicly traded ArvinMeritor Inc. (NYSE:ARM) overcame a year-long sale process, announcing Thursday an agreement to sell its stakes in two light-vehicle businesses that have been on the block since October 2008.
The Troy, Mich., company agreed to offload its 57% stake in a vehicle suspension unit to joint venture partner Mitsubishi Steel Manufacturing Co., along with a 51% stake in Gabriel de Venezuela, which manufactures parts for countries throughout South America. The two businesses made up around 45% of the company’s 2008 chassis sales.
Values for the light-vehicle businesses were not disclosed, but any progress that suppliers make in this volatile sector does hold some weight. Alan Baum, an analyst at the Planning Edge Inc. in Birmingham, Mich., said divesting these particular units adjusts ArvinMeritor’s focus back to its core, even though they were small pieces of the overall operation.
But good things don’t always come to those who wait.
Fellow auto parts maker Lear Corp. (NYSE:LEA) has been exploring ways to restructure its debt out of court. However, debtholders are now bracing for a bankruptcy filing as soon as this week. The Southfield, Mich.-based company is in breach of debt covenants with its largest lenders. (The Deal Pipeline subscribers can read more about Lear’s potential bankruptcy here.) – Anthony Noto
Kinetic Die Casting manufactures custom metal parts to their customer. If you would like more information about Kinetic Die Casting, please visit our website:Kinetic Die Casting Company
Tier 1 Auto Suppliers Bought by Revstone LLC, Ford, BMW, Delphi Object
Quote, originally posted by Detroit News »
Washington — The Pension Benefit Guaranty Corporation said Tuesday it will assume responsibility for a bankrupt Michigan auto supplier’s underfunded pension plan.
The government’s pension insurer will take over Portage-based Contech US LLC’s pension plan covering 532 workers and retirees effective immediately, the agency said in a statement.
According to PBGC estimates, the Contech US LLC Pension Plan is 38 percent funded, with assets of $8.4 million to cover benefit liabilities of $22 million. The agency expects to cover $12 million of the $13.6 million shortfall.
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Contech LLC sought bankruptcy protection in January in Detroit after it had been acquired in 2007 by investment firm Marathon Asset Management LLC. It has nine U.S. plants, with its Walled Lake plant responsible for much of its revenue.
“This action is an integral part of our ongoing efforts to restructure Contech and meet the challenges of the automotive industry going forward. We continue to work closely with our lenders and customers to reach a consensus on the remaining changes that are necessary,” said Morris Rowlett, chairman & CEO of Contech in a statement in January when the company sought bankruptcy protection.
The PBGC will take over the assets and use insurance funds to pay guaranteed benefits earned under the plan, which ends Tuesday.
Retirees and beneficiaries will continue to receive monthly benefit checks without interruption, and future participants will receive their pensions when they are eligible to retire, the PBGC said.
Within the next several weeks, the PBGC will send notification letters to all participants in the Contech plan detailing the change.
Privately held Contech was founded in 1950 and builds light metal die casting and machining for automobile and parts manufacturers.
The company was sold from former owner SPX Corp. to Marathon Asset Management, a private equity firm, in 2007. Contech’s U.K. subsidiary based in Wales is not in bankruptcy.
Contech has six casting facilities in Michigan, Indiana and Tennessee, and had sales of $312 million in 2007, but saw sales fall to $223 million in 2008 as auto sales plummeted.
Marathon has sought to use Section 363 of the bankruptcy code to sell nearly all of Contech’s casting assets to Revstone Industries LLC.
Revstone would pay $14 million and assume certain liabilities from its casting facilities under the proposed sale.
Last week, several major customers of Contech filed an objection to the sale.
Ford Motor Co., Automotive Components Holdings LLC, BMW AG and Delphi filed a joint objection to the sale. Ford and Delphi both have said they won’t accept Revstone as a replacement supplier.
Kinetic Die Casting manufactures custom metal parts to their customer. If you would like more information about Kinetic Die Casting, please visit our website:Kinetic Die Casting Company
Aluminum Auto Parts – What Every Car Needs
Aluminum Auto Parts – What Every Car Needs. Hundreds and thousand of aluminum auto parts are being produced by different die casters everyday. Aside from the design’s lightweight element, most aluminum auto parts are also being carefully constructed as net shape to avoid wastes and hiring additional services to run machineries. A lot of top automobile companies and sellers rely on die caster to provide them with quality auto parts made from aluminum alloy. Mounting holes are also inclusive in the production stage of these aluminum auto components, thereby making them cheaper in retail and wholesale prices compared to auto parts made of steel. This is also why a lot of leading manufacturers of cars and other automobiles have taken it to themselves to have their own manufacturing plants to cater to their entire aluminum auto parts needs.
The industry of auto manufacturing greatly relies on the availability of car parts made from aluminum. Since its invention in the early years, a lot of manufacturers have found it easier to produce high quality automobiles without having to spend a lot in customizing engine parts and other essential parts of auto gears. In the past few years, a large percentage of the automobiles constructed by leading manufacturers have delicate parts made from the simplified processes of aluminum die casting. Aluminum contains a type of metallic alloy that has elements that contribute to the products’ overall function and strength. Aside from this assured durability, aluminum also resists corrosion, thereby making it easier for a car or any automobile to last for a long period of time.
Kinetic Die Casting manufactures custom metal parts to their customer. If you would like more information about Kinetic Die Casting, please visit our website:Kinetic Die Casting Company
