Detroit Diesel will build Brazil plant
Detroit Diesel Corp. will build an engine plant in Curitiba, Brazil, to produce four-, five- and six-cylinder diesel engines for Latin American and U.S. markets. The new operation, Detroit Diesel Motores do Brasil, will supply 30,000 Turbotronic 425 2.5-liter diesel engines a year to Chrysler Corp. for use in a new Dakota pickup to be assembled in Brazil, a Jeep Cherokee assembled in Argentina, and for export model Jeeps built in Toledo, Ohio. The plant is scheduled to open in January 1998.
PROCUREMENT - Porsche AG has opened a North American procurement office in Troy, Mich., to source both original equipment and replacement parts, as well as tooling and machinery. The move is part of the German carmaker's new plan to emphasize global sourcing. James Watson, previously director of international procurement and supply for Chrysler Corp., will be vice president of the new office.
COOLANT - Allied Signal Inc. will buy coolant maker Prestone Products Corp. for an undisclosed sum.
TIRES - The recent 18-day strike at 10 of its U.S. plants has cost Goodyear Tire & Rubber Co. $50 million. But Goodyear Chairman Sam Gibara said the tire maker will still report near-record second-quarter earnings. He said second-quarter earnings would be about the same as second-quarter 1996's record $1.22 per share. The company hopes to recover lost production through overtime over the next few months. The strike involved both tire and engineered products plants.
BED LINERS - Durakon Industries Inc. blamed what it called 'disappointing' first-quarter earnings on higher-than-expected startup costs on a new Ford Motor Co. contract for bed liners, and on costs to ramp up a new tow-truck plant in Greencastle, Pa. First-quarter net income fell 88 percent from a year earlier to $257,000, compared with $2.138 million in the first quarter of 1996. The company expects the Ford contract to have a positive impact on second-quarter earnings.