Federal-Mogul replaces co-CEO with Icahn executive
Federal-Mogul Corp. said one of its co-CEOs is stepping down to be replaced by a board member and executive affiliated with its controller shareholder -- longtime Wall Street player Carl Icahn.
The diversified powertrain and spare parts supplier named Icahn executive Daniel Ninivaggi to co-CEO and CEO of its aftermarket group.
He replaces Kevin Freeland in the position; Freeland is leaving the company for personal reasons, the company said in a statement.
Freeland was hired in the role in May. Ninivaggi is the third executive in the position in less than two years. Rainer Jueckstock continues as the other co-CEO.
Ninivaggi had served as president and CEO of New York-based Icahn Enterprises LP since 2010. While at Icahn Enterprises, Ninivaggi served in leadership roles at Tropicana Entertainment Inc. and on boards of various Icahn-controlled assets such as XO Holdings Inc. and Viskase Companies Inc.
Prior to joining Icahn, he served as of counsel for Chicago-based law firm Winston & Strawn LLP and in a variety of executive roles at Lear Corp., including general counsel, chief administrative officer and executive vice president.
Ninivaggi earned an MBA from the University of Chicago and a law degree from Stanford Law School.
Since emerging from bankruptcy in 2008 under Icahn, the Southfield, Mich.-based supplier has struggled with profitability, reporting a net loss of $45 million in 2009 and a net loss of $117 million in 2012.
However, the company initiated significant cost-cutting strategies in 2013, including the closure or downsizing of seven plants and a divestiture. In June, the company sold its connecting rod and camshaft business to Addison, Ill.-based JD Norman Industries Inc.
The measures led to a positive net income of $38 million in the third quarter, which ended Sept. 30.
Federal-Mogul ranks No. 50 on the Automotive News list of the top 100 global suppliers with estimated worldwide sales to automakers of $4.3 billion in 2012.
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