Delphi idles more workers
DETROIT - Delphi Automotive Systems Corp. is putting 3,700 of its U.S. hourly employees on temporary layoff this week, the latest in a series of cutbacks related to lower auto production.
Most of the layoffs, which will last at least one week, affect workers at 20 manufacturing sites in Michigan, Ohio and New York. The world's largest auto supplier employs 53,000 hourly workers at 31 sites in the United States.
Delphi has made significant weekly layoffs since the beginning of December. Most workers receive 95 percent of their base take-home pay during the layoff.
Delco Remy will go private
ANDERSON, Ind. - Delco Remy International Inc.'s board of directors approved and recommended to shareholders an offer from Court Square Capital Ltd., a subsidiary of Citigroup Inc., to purchase 47 percent of Delco Remy's Class A common stock for $116.1 million, or $9.50 a share.
Delco Remy's stock traded at $8.15 a share on Tuesday, Feb. 6, the day of the board's approval. The stock rose to $9.45 a share on Feb. 8.
Citigroup Venture Capital, which has been a major investor in Delco Remy since it was spun off from General Motors in 1994, already owns 53 percent of the company. Once the deal is final, Delco Remy will become a private company. The Anderson, Ind., supplier has been traded publicly since 1997.
Delco Remy manufactures electrical, powertrain and drivetrain components for the passenger, medium- and heavy-duty truck, and off-road and industrial markets. Products include starter motors, alternators, engines and transmissions.
Lexus may add models
LAS VEGAS - The success of the Lexus IS 300 sedan has Toyota considering variants for the U.S. market. Yoshimi Inaba, president of Toyota Motor Sales U.S.A. Inc., said at the National Automobile Dealers Association convention last week that the Lexus SportCross sport wagon concept shown at the Detroit auto show could come to America.
Despite this market's traditionally cool reception for hatchbacks, the SportCross received a better-than-expected response at the Detroit show, prompting Toyota to give it a higher priority. Inaba denied rumors that the current IS 300 platform would spawn a coupe and convertible version. They must wait for the next-generation platform.
Mercedes recalls A-class cars
STUTTGART - DaimlerChrysler AG is recalling 55,000 Mercedes-Benz A-class cars to install new brake cylinders. The recall will cost the company more than $9 million, Reuters reported. DaimlerChrysler will replace the main brake cylinder in cars produced from September 2000 to January 2001. A supplier apparently switched the cylinder's rubber sealing collar without informing the automaker, a change that could affect the braking system in below-freezing temperatures. No accidents have been reported, a DaimlerChrysler official said.