Firestone fiasco tab balloons to $750 million
TOKYO - Battered by the recall of 6.5 million light-truck tires, Bridgestone/Firestone Inc. will post a loss of about $500 million this year, the tiremaker's first red ink in eight years.
The consolidated net loss of the U.S. unit of Bridgestone Corp. stems from costs of $400 million to recall Wilderness AT, ATX and ATX II tires alleged to have been a factor in 148 deaths in the United States, plus $350 million to compensate for damages, said Bridgestone Chairman Yoichiro Kaizaki.
ArvinMeritor sees downturn
TROY, Mich. - ArvinMeritor Inc. joins the growing list of suppliers that have issued profit warnings in reaction to automotive production cutbacks.
The company estimates its earnings for the current quarter, its first quarter of fiscal 2001, will be 30 cents to 35 cents per share. For all of 2001, earnings are likely to come in at $2 to $2.30 per share, down from the $3.57 company leaders had predicted in November.
Revenues are expected to decline about 10 percent in 2001.
GM, eBay strike deal
DETROIT - General Motors and eBay are teaming up on the Web for auto promotions. GM and eBay's deal is for online promotions and community events in 2001.
GM also will offer new services on eBay Motors online, such as parts sales for vintage GM automobiles. Users also will be able to bid on special charity sales of famous GM autos. Terms were not disclosed.
Delphi may shed operations
TROY, Mich. - Delphi Automotive Systems Corp. next year plans either to divest or find partners for business operations that are not market leaders. The operations have combined annual sales of about $4 billion. Annual sales last year were $22.4 billion.
The supplier declined to say which operations might be sold. However, the automotive generator business, which has about $600 million in annual sales, is under review along with the company's safety, thermal and electrical architecture business.
Group 1 acquires dealerships
HOUSTON - Group 1 Automotive Inc. has completed acquisitions in the Atlanta, Houston and Amarillo, Texas, markets. The stores have revenues totaling $180 million.
Kelley Toyota of Atlanta has been renamed World Toyota. Stone Mountain Ford in Stone Mountain, Ga., and Heritage Lincoln-Mercury in Snellville, Ga., have been renamed World Ford of Stone Mountain and World Lincoln-Mercury of Snellville, respectively. Fort Bend Toyota of Houston has been added to the McCall Group , and Group 1 expanded its Amarillo operations by acquiring a Mazda store.