28/12/07
Source: http://www.freep.com/apps/pbcs.dll/article?AID=/20071228/BUSINESS01/712280321
As some of the world's largest auto suppliers try to work their way through bankruptcy, Toledo-based Dana Corp. is poised to be the next major supplier to exit Chapter 11.
Axle-maker Dana said it expects to leave Chapter 11 next month, making it one of the few large companies in bankruptcy able to stay on course amid a tight credit market and falling forecasts for U.S. light-vehicle sales.
The company, which already has creditors on board, cleared its last major legal hurdle Wednesday, winning a federal bankruptcy judge's approval in New York for its reorganization plan.
Dana, the nation's ninth largest auto supplier, is putting the final touches on a $2-billion exit loan. It's a crucial step in any bankruptcy -- and the one that has caused Delphi Corp. and Dura Automotive to stumble in their reorganizations.
Dana's bankruptcy exit would follow that of Federal-Mogul Corp. The Southfield maker of pistons and spark plugs left Chapter 11 on Thursday after spending six years settling asbestos lawsuits.
Dana filed for Chapter 11 in March 2006, becoming one of several suppliers that filed for bankruptcy under the pressure of falling domestic sales, price reductions from automakers and rising material costs.
The company's success so far is partly because of its deep cost-cutting and the financial investment it has won.
Dana has "put together an incredible package with private equity," said Laurie Harbour-Felax, managing director in the Farmington Hills office of consulting firm Stout Risius Ross.
Unique to that package is the buy-in from Dana's unions.
An investment of up to $500 million from New York-based private equity firm Centerbridge Partners LP, that helped the company keep its debt low was essential to the contract changes that Dana's unions ultimately ratified during the bankruptcy.
Those changes include a two-tier wage system and the creation of a voluntary employee beneficiary association, or VEBA, to take on retiree health care costs. The UAW later negotiated and ratified much larger VEBAs with the Detroit automakers.
"It was a difficult negotiation," said Jim Robinson, who led the talks for the United Steelworkers. "We went into it from the perspective of maintaining Dana jobs as well as making sure those jobs continue to be good jobs."
Centerbridge President Steve Girksy declined to comment.
Centerbridge's involvement has helped keep the company's exit loan low at $2 billion -- at least compared with the $6.8 billion Delphi seeks -- and win the financing commitment it needs to leave Chapter 11.
Delphi and Dura, in the challenging interiors business, so far have failed to attract commitments. Instead they've received so-called best efforts agreements, in which banks agreed to look for lenders, but made no commitment.
Dura's $425 million in financing, which the company said was nearly complete early this month, fell apart nearly two weeks ago. The company says it will reevaluate its financial plan next year.
During its Chapter 11 reorganization, Dana has set a course to improve its operations by nearly half a billion dollars annually. In 2007 alone, it expects to recoup $120 million that would otherwise go to higher material prices.
The company also sold three of its businesses and launched a plan to close eight plants.
"From the outset of this process, we said that fundamental -- not incremental -- change was critical to Dana's future success," said Dana CEO Mike Burns in a statement late Wednesday.
The changes, analysts say, are necessary to prepare Dana for the year ahead, which analysts expect to be bleak for auto suppliers.
U.S. auto sales are expected to drop below 16 million next year, falling to 10-year lows.
With Ford and GM as its largest customers, 2008 will be challenging for axle makers like Dana and Detroit-based American Axle & Manufacturing. Both automakers have announced production cuts for early next year.
"When they are looking at 2008, they're looking down a barrel of a gun," said Erich Merkle, auto analyst at Grand Rapids-based consulting firm IRN Inc. Dana must "be competitive and they have to figure out how to diversify their customer base," he said.
But Dana will have an all-star board of directors in its corner.
Dana is expected to emerge as a public company with a nine-member board that includes Gary Convis, a retired Toyota Motor Corp. U.S. manufacturing executive, and Jerry York, the former Chrysler Corp. chief financial officer and onetime GM board member. Burns is to remain on the board, though he is expected to be replaced as chairman.
26/12/07
Richard E. Dauch didn't let the bankruptcy of Dana Corp. get in the way of years of rivalry.
Dauch, CEO of American Axle & Manufacturing Holdings Inc., has quietly cherry-picked more than two dozen of Dana's best and brightest business and technical people, a former Dana executive says.
This summer, Dauch raised the ante by opening a product development office in Dana's back yard.
Spokeswoman Renee Rogers says American Axle does not target rivals. "We simply hire the best people from anywhere in the world."
Dana has struggled for 21 months to emerge from bankruptcy reorganization. The Toledo, Ohio, driveline supplier is expected to leave Chapter 11 by the end of January as a public company hungry for new axle business. That could heighten the rivalry that began in 1994 when American Axle was formed from castoff General Motors Corp. plants. Since then the two companies have fought primarily over Chrysler LLC business — and Dana has gotten the short end of the stick.
Dauch, a former fullback with Purdue University's football team, employs a straight-up-the-middle attack on competitors. He went directly at Dana's talent base.
Among those raided was Alberto Satin, the general manager of a Dana South American unit. He was hired away several years ago and now is an American Axle vice president.
Gordon Hunt, a product development engineer, was hired away a year ago to help staff Dauch's Detroit operations.
In July, Dauch struck again.
This time he made a strategic move into Dana territory by opening an engineering office in Fort Wayne, Ind.
Dana was consolidating its Fort Wayne engineering group in suburban Toledo, and Dauch staffed his new office with five product application engineers who did not want to leave Fort Wayne.
Fort Wayne is a key Dana manufacturing hub. It builds light-truck axles and related drivetrain parts. Both Toyota Motor Corp. and GM operate light-truck assembly plants in Indiana.
"The goal of that move," says the former Dana manager, "was to build business for American Axle in an area long dominated by Dana."
19/12/07
http://www.hendrickson-intl.com/mediacenter/PressReleases/Default.aspx?id=205
Hendrickson Auxiliary Axle Systems unveils the newly upgraded 20,000-pound capacity PARALIFT™ steerable truck lift axle system.
PARALIFT is now available with adjustable ride height and frame width capabilities. Combining unique frame width and ride height spacers with a slotted cross member, PARALIFT’s adjustability enables aftermarket installers and body builders to stock one unit to meet a wide variety of truck configurations.
The trailing arm beams evolved from a dual paddle, triangular cross-section design to a more efficient single paddle, z-beam configuration. The introduction of zero-torsion, trailing-arm bushings help eliminate bushing wind-up and allow for the single air spring configuration.
Repositioning of the stabilizer adds another benefit. The combined impact of the new lift springs design and the repositioned stabilizer increases wheel cut from 18 degrees to more than 25 degrees to help improve maneuverability and tire wear.
With a 1,465-pound system weight, the PARALIFT offers a 160-pound weight savings compared to the previous model. It features 12 inches of total travel with nine inches of lift in ride heights from nine to13.5 inches, all in a 28-inch package space.
All of these features impact the bottom line substantially, lowering both cost and weight for fleets and operators.
“The new PARALIFT provides the best possible solution – easy installation, lightweight and best-in-class performance together with Hendrickson’s proven durability and support,” says Paul Brown, marketing manager, Hendrickson Auxiliary Axle Systems.
11/12/07
Meritor WABCO Vehicle Control Systems today introduced its new Roll Stability Support trailer system, RSSplus™, designed specifically for the North American trailer industry to offer more advanced features and added value.
RSSplus will be available in late first quarter 2008 through trailer original equipment manufacturers (OEMs) and as an aftermarket retrofit through trailer OEM dealers.
Continuing a history of delivering customer desired solutions, the new system builds upon the company’s current RSS offering which incorporates its industry-leading ABS functionality with other pertinent safety features such as improved roll mitigation. The system retains Meritor WABCO’s field-proven, side-by-side wheel end control which provides superior stability management and helps prevent tire flat spotting and abnormal tire wear. Additionally, the system offers simplified installation and advanced “intelligent” communication capabilities through on-board data recording with event broadcasting capability via Power Line Carrier (PLC) communications or telematic devices.
Jon Morrison, president and general manager of Meritor WABCO Vehicle Control Systems, said, “As pioneers of this significant technology, we are pleased to be bringing the next echelon of trailer stability capabilities to the marketplace at a more reasonable cost. With the largest population of trailer stability systems in place today, this new system is the culmination of valuable customer feedback and the work of our industry-leading engineering teams.”
Meritor WABCO introduced its first trailer stability system, RSS, in 2003. Today, there are over 4,000 of the company’s units in place with several OEMs adopting the technology as standard equipment on their trailers.
Advanced Features
RSSplus is a premium 2-modulator (2M) roll mitigation system that integrates several features, including ABS and PLC functionality, reducing individual component requirements. The new system is also compatible for use with spring suspensions, as well as air ride suspensions.
A new cable connector system allows for more positive connections and cable stabilization to prevent damage and mitigate potential problems with connector corrosion.
Standardized SAE diagnostics make troubleshooting much simpler and are now a conventional feature of the system. The diagnostics have also been integrated into the company’s TOOLBOX™ PC software. System diagnostics can also be performed using standard blink codes which eliminate the cost of additional diagnostic tools.
By adding Power Line Carrier (PLC) capability to the RSSplus electronic control unit (ECU), the system can communicate between the tractor and trailer utilizing a PLC display. Additional messaging can also be accommodated via telematic devices. Examples of events that can be communicated include suspension weight, tire pressure, wheel-end temperatures or other customer-specific data. On-board data recording within the ECU allows for the retention of vehicle performance data in the ECU memory to enhance fleet management. Such “intelligent” data can be utilized to help improve operating efficiencies.
“With the new system being designed exclusively for the North American market, many of the advanced features, such as standardized SAE diagnostics, incorporate requirements identified specifically by our customers,” said Bob Sibley, director, Meritor WABCO Trailer Products. “These features provide the additional support expected from a stability system, plus offer added value for the customer’s operation.”
Applications
Configurations of the new system include: 2S/2M1, 4S/2M and 4S/2M + 1 (for most 4S/3M requirements). Applications include vans, reefer units, flat beds, tankers, hazardous material haulers, B-trains and high center of gravity trailers. Design of the new system includes capabilities that are compatible with current tractor stability technologies as well as future technologies. RSSplus is also backward-compatible with existing trailers in the marketplace making it an ideal retrofit technology.
13/12/07
Source: http://trailer-bodybuilders.com/news/medium_heavy_truck_sales_november_07/
Medium and heavy trucks sold at a slower pace in November, according to figures compiled by Wards Communications.
Dealers sold 38,663 trucks with GVW ratings above 10,000 pounds during the month, down 25% from November 2006 (51,239) and down 15% from October 2007 (45, 519).
Compared to November 2006, Class 8 trucks were down 54%, followed by Class 6 at 36%.
Through the first 11 months of 2007, truck dealers sold 488,315 trucks with GVW ratings above 10,000 pounds, down 23% from the corresponding period of 2006.
Brisk sales of light-duty trucks (GVW ratings of 10,000 pounds or less) kept the overall market at a decline of just 10% compared to November 2006, with Class 3 up 42%. For the year, total sales were down 4%.
11/12/07
Meritor WABCO Vehicle Control Systems today introduced its new Roll Stability Support trailer system, RSSplus™, designed specifically for the North American trailer industry to offer more advanced features and added value.
RSSplus will be available in late first quarter 2008 through trailer original equipment manufacturers (OEMs) and as an aftermarket retrofit through trailer OEM dealers.
Continuing a history of delivering customer desired solutions, the new system builds upon the company’s current RSS offering which incorporates its industry-leading ABS functionality with other pertinent safety features such as improved roll mitigation. The system retains Meritor WABCO’s field-proven, side-by-side wheel end control which provides superior stability management and helps prevent tire flat spotting and abnormal tire wear. Additionally, the system offers simplified installation and advanced “intelligent” communication capabilities through on-board data recording with event broadcasting capability via Power Line Carrier (PLC) communications or telematic devices.
Jon Morrison, president and general manager of Meritor WABCO Vehicle Control Systems, said, “As pioneers of this significant technology, we are pleased to be bringing the next echelon of trailer stability capabilities to the marketplace at a more reasonable cost. With the largest population of trailer stability systems in place today, this new system is the culmination of valuable customer feedback and the work of our industry-leading engineering teams.”
Meritor WABCO introduced its first trailer stability system, RSS, in 2003. Today, there are over 4,000 of the company’s units in place with several OEMs adopting the technology as standard equipment on their trailers.
Advanced Features
RSSplus is a premium 2-modulator (2M) roll mitigation system that integrates several features, including ABS and PLC functionality, reducing individual component requirements. The new system is also compatible for use with spring suspensions, as well as air ride suspensions.
A new cable connector system allows for more positive connections and cable stabilization to prevent damage and mitigate potential problems with connector corrosion.
Standardized SAE diagnostics make troubleshooting much simpler and are now a conventional feature of the system. The diagnostics have also been integrated into the company’s TOOLBOX™ PC software. System diagnostics can also be performed using standard blink codes which eliminate the cost of additional diagnostic tools.
By adding Power Line Carrier (PLC) capability to the RSSplus electronic control unit (ECU), the system can communicate between the tractor and trailer utilizing a PLC display. Additional messaging can also be accommodated via telematic devices. Examples of events that can be communicated include suspension weight, tire pressure, wheel-end temperatures or other customer-specific data. On-board data recording within the ECU allows for the retention of vehicle performance data in the ECU memory to enhance fleet management. Such “intelligent” data can be utilized to help improve operating efficiencies.
“With the new system being designed exclusively for the North American market, many of the advanced features, such as standardized SAE diagnostics, incorporate requirements identified specifically by our customers,” said Bob Sibley, director, Meritor WABCO Trailer Products. “These features provide the additional support expected from a stability system, plus offer added value for the customer’s operation.”
Applications
Configurations of the new system include: 2S/2M1, 4S/2M and 4S/2M + 1 (for most 4S/3M requirements). Applications include vans, reefer units, flat beds, tankers, hazardous material haulers, B-trains and high center of gravity trailers. Design of the new system includes capabilities that are compatible with current tractor stability technologies as well as future technologies. RSSplus is also backward-compatible with existing trailers in the marketplace making it an ideal retrofit technology.
12/12/07
Source: http://www.todaystrucking.com/news.cfm?intDocID=18822
Mississauga-based Mascot Truck Parts Ltd., a major remanufacturer of heavy-duty transmissions, drive axle carriers, steering gears and drivelines, has been acquired by Detroit vehicle component supplier ArvinMeritor.
Mascot’s 170 full-time employees, six remanufacturing locations, and current customer base will become part of the ArvinMeritor network.
"This expansion of our remanufacturing business makes sense for our customers and aligns with our business strategy to grow the aftermarket business," said Carsten Reinhardt, president of ArvinMeritor’s Commercial Vehicle Systems business. "Mascot has a similar passion for providing its customers with high-quality, dependable, remanufactured components -- all of which complement the ArvinMeritor remanufacturing model."
Glenn Hanthorn, president of Mascot, said the agreement will offer his company "the market products and services unmatched by our competition."
\Mascot‘s six Canadian remanufacturing locations include three in Mississauga, Ontario; and one each in Edmonton, Moncton, and Boucherville, Que. as well as its network of logistic centers across North America that provides customers with immediate availability of remanufactured products
11/12/07
Source: http://www.bloomberg.com/apps/news?pid=20601087&sid=a3pgmfUuevs8&refer=home
ArvinMeritor Inc., a U.S. maker of shock absorbers and brakes for commercial trucks, jumped 8.9 percent after the company affirmed its 2008 profit forecast.
ArvinMeritor will have earnings of $1.40 to $1.60 a share and generate free cash flow, according to a presentation to analysts today. That compared with the $1.32 average of 10 analyst estimates compiled by Bloomberg.
A fiscal 2008 profit would be ArvinMeritor's first after two straight annual losses totaling $394 million. The forecast matched the outlook the Troy, Michigan-based company gave on Nov. 14 even though a weakening U.S. economy is damping heavy- truck demand in North America.
ArvinMeritor's expectations for better operating earnings depend on ``truck demand stabilizing and fixing some operational problems,'' said Shelly Lombard, a high-yield debt analyst for Gimme Credit Publications in Montclair, New Jersey. ``If Arvin is affirming guidance, maybe those things are happening. But I think it's too early to bet on that.''
ArvinMeritor gained $1 to $12.25 at 4:02 p.m. in New York Stock Exchange composite trading. The shares have fallen 33 percent this year.
Revolving Loan
The company also said it renegotiated a revolving loan agreement, lowering available borrowing to $700 million from $900 million and adjusting the terms to provide more liquidity ``under a variety of business conditions.''
The previous accord ``impaired availability'' at the end of each quarter, ArvinMeritor said.
Separately, ArvinMeritor agreed to acquire Mascot Truck Parts Ltd. for an undisclosed sum. Mississauga, Ontario-based Mascot remanufactures transmissions and other commercial-truck parts. Closely held Mascot has 170 employees in six locations in Canada.
The acquisition will help ArvinMeritor expand its replacement-parts business. Mascot is a ``strategic'' purchase allowing ArvinMeritor to grow without adding a large amount of debt, Chief Executive Officer Charles ``Chip'' McClure said on a conference call with analysts.
McClure also said ArvinMeritor has improved its manufacturing capabilities in Europe, where it hasn't been able to meet demand in a strong commercial-truck market.
ArvinMeritor is seeking to reduce expenses by cutting 2,800 jobs and closing or consolidating 13 plants in Europe and North America. The company said it expects to meet its target for $75 million in annual savings in 2008 and $150 million in 2009.
McClure said ArvinMeritor's expense cuts include a new policy for all employees, including him, to fly coach class on business trips.
7/12/07
Source: http://www.detnews.com/apps/pbcs.dll/article?AID=/20071207/UPDATE/712070418/1361
Dana Corp., the bankrupt automotive axle maker, won support for its turnaround plan from 96 percent of its general unsecured creditors, according to final voting figures filed in U.S. Bankruptcy Court in New York, Bloomberg News reported today.
The creditors voted 98 percent of their total claims, or $1.4 billion, in favor of a plan that would pay them 72 percent to 86 percent of what they are owed. Dana reported the final, official figures to the court today.
Unions with claims against Toledo-based Dana voted all their $1.1 billion in claims in favor of the plan. Bondholders voted 99 percent of their claims, or $1.24 billion for the plan.
U.S. Bankruptcy Judge Burton Lifland in New York must also approve the plan for the company to emerge from Chapter 11 protection. A hearing on confirmation is to begin Dec. 10.
The plan values the reorganized Dana at $4 billion. Dana filed for bankruptcy last year, listing assets of $7.9 billion and debt of $6.8 billion.
