Smart airbags flunk out
DETROIT - Delphi Automotive Systems Corp. says a key component problem has jeopardized its contract to supply 'smart' airbags to General Motors.
GM last week gave Delphi 10 days to fix the problem: a seat sensor mat supplied by Flexpoint Sensor Systems Inc. The sensor is designed to detect the size and shape of a vehicle occupant. 'At this point it looks like we won't be able to provide a solution in those 10 days using that sensor,' said Delphi spokesman Steve Gaut.
Gaut said Delphi is considering other sensors to meet GM's requirements.
The Delphi smart airbag system originally was scheduled to debut in the 2000 Cadillac Seville but was delayed by the sensor problem.
Ford shutdown hurts Visteon
NEW YORK -Ford Motor Co.'s suspension of Ranger pickup and Explorer sport-utility production will hurt Visteon Corp.'s third-quarter profits, Merrill Lynch says.
Ford has stopped production at three plants so tires could be used in the Firestone recall. The two-week shutdown is expected to cut combined third-quarter production by 25,000 vehicles.
Merrill Lynch estimates that Visteon produces $2,500 to $3,000 worth of parts for each Ranger and Explorer. That translates to a $62.5 million to $75 million loss of revenue for Visteon in the quarter.
Merrill Lynch cut its estimate of Visteon's third-quarter earnings by 16 percent, to 42 cents per share. But it cut Visteon's yearly earnings per share estimate by only 1 percent, from $3.45 per share to $3.41 per share, since Ford plans to make up lost Ranger production in the fourth quarter.
Warning issued on Lear profits
DETROIT - Lear Corp. warned that its profits for the second half of this year will suffer because of a weak euro, a stronger than expected Mexican peso and production cuts for the Ford Explorer and Ranger as a result of the Firestone tire recall.
The estimated profit shortfall of 18 cents per share helped send the Southfield, Mich., company's share price down more than 7 percent to around $22.50 a share on Friday, Aug. 25. Before Lear's warning, Standard & Poor's estimated Lear would earn $2.24 a share in the second half.
Preston named to ANX post
DETROIT - A former Ford Motor Co. and Visteon Corp. executive has been named CEO of ANXeBusiness Corp., the new corporate title for the ANX Internet service.
Alexander Preston was vice president of supply and logistics at Visteon.
ANX was developed under the sponsorship of the Automotive Industry Action Group as a reliable, secure means of transmitting data. It is now owned by Science Applications International Corp. of San Diego and is being used for other industries as well as automotive.
Crain's Detroit Business
Moorby moving to ADESA Corp.
INDIANAPOLIS - Tony Moorby, CEO of ADT Automotive Inc., will join ADESA Corp. as an executive vice president once ADT is sold.
'Tony has a tremendous amount of knowledge and experience,' Jim Hallett, CEO of ADESA, said Friday, Aug. 25.
Manheim Auctions Inc. announced in January that it would buy ADT's 28 auctions from its parent company, Tyco International Ltd., a diversified manufacturing and service company in Hamilton, Bermuda. The price is $1 billion, and the date for closing the deal has not been set.