Thursday, July 17, 2008

Auto briefs

Nonunion workers at parts supplier protest

Johnson Controls Inc . workers demanding union representation walked out at a plant in Tennessee that supplies seats and consoles for General Motors Corp.’s forthcoming Chevrolet Traverse. About 170 nonunion workers began picketing at 5 a.m. today at the Johnson Controls factory in Columbia, said Mike O’Rourke, president of United Auto Workers Local 1853, which represents GM workers in Spring Hill, Tenn. Workers were protesting because Johnson Controls hasn’t recognized their requests to allow the UAW to bargain for Columbia-facility workers. The strike hasn’t affected manufacturing of the Traverse because GM isn’t planning to go into full production of the vehicle until September, spokeswoman Sharon Basel said. GM is counting on the Traverse and other crossover vehicles, which blend car and sport-utility elements, to help stem falling sales as buyers shift away from less efficient SUVs and pickup trucks.

Leuliette named CEO of Dura Automotive

ROCHESTER HILLSDura Automotive Systems Inc . announced Wednesday that its board of directors has named Timothy D. Leuliette president and CEO, effective immediately. He succeeds Larry Denton, who elected to leave the company after successfully leading Dura through a 20-month reorganization and emergence from Chapter 11. Leuliette, who was elected chairman of Dura upon its emergence from bankruptcy on June 27, will relinquish that role to Steven Gilbert. Gilbert is senior managing director and chairman of Sun Group and is also chairman of the board of Gilbert Global Equity Partners, L.P ., a billion-dollar private equity fund. Leuliette, who founded Leuliette Partners LLC, a financial services and investment company in January 2008, was previously chairman and CEO of Metaldyne Corp . and co-chairman and co-CEO of that company’s parent Asahi Tec Corp.

Replacement auto battery shipments rise

North American shipments of replacement batteries for automobiles increased 2 percent in May from a year earlier, Battery Council International said. Shipments rose to 8.2 million units from 8.04 million in May 2007, the Chicago-based council said today in an e-mailed statement. Shipments gained 3.4 percent from 7.93 million in April, the group said. From January through May, producers shipped 39.5 million replacement units, up 0.4 from a year earlier. North American shipments of original-equipment batteries dropped 15 percent to 1.57 million in May from 1.86 million a year earlier, the council said.

Tiremaker Continental rejects takeover offer

Continental AG , Europe’s second-biggest tiremaker, rejected an unsolicited 11.2 billion-euro ($17.7 billion) takeover approach from Schaeffler Group because the offer has "no strategic rationale." Schaeffler, an engineering company owned by billionaire Maria-Elisabeth Schaeffler and her family, offered at least 69.37 euros a share and said it’s seeking a minority stake, a strategy that would echo Porsche SE’s purchase of 31 percent of Volkswagen AG last year.

Toyota prepares to build plant in Brazil

TOKYOToyota is acquiring land in Brazil for a new plant and is studying plans to build compact vehicles there as early as 2011 — the latest in an aggressive drive by automakers in emerging markets. The plant would create about 2,500 jobs and have initial annual production capacity of 150,000 vehicles, Toyota said. Toyota already has an auto plant in Brazil, which started building Corolla compacts in 1998, and another plant that makes auto parts. The company is buying land for the new plant in the city of Sorocaba in the Brazilian state of Sao Paulo, near the two other plants. Toyota sold 72,000 vehicles in Brazil last year.

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