ArvinMeritor Inc. wants to slash its global supply base by 15% to 20% annually to 700 companies from 2,700 in 2000, a company executive tells WAW. The company's commercial aftermarket business is especially overloaded with suppliers. Overall sales are expected to be down $1 billion this year.
The United Auto Workers union files suit against Mexican Industries Inc. seeking to recover more than $7 million in health-care costs and other benefits after the company files for Chapter 11 bankruptcy protection. Mexican Industries is laying off hundreds of workers and plans to sell its assets. The UAW alleges that company owners diverted funds to themselves, defrauded creditors and withheld benefits due to employees by failing to pay union dues, health-care premiums and bonuses.
Corp., which owns a stake in Mitsubishi Motors, acquires one-fifth of ANXeBusiness Corp., which operates the ANX Network. The Automotive Industry Action Group created the virtual private Internet in 1997 for the auto industry to transmit product development data and sold ANX two years ago to Science Applications International Corp.
Donnelly Corp. plans to eliminate 225 positions in North America and Europe as part of a global restructuring plan to reduce costs. The cuts include 100 office and skilled trades employees in North America and 75 production workers and 50 office and skilled trades workers in Europe. The actions result in a one-time third-quarter charge of $3 million against net income.
International Inc., in preparing to spin off its interiors business as Automotive, files a preliminary prospectus in Canada for an initial public offering of C$100 million of Class A subordinate voting shares of Intier.
Sales California Inc. is relocating its Long Beach manufacturing operations to lower-cost Frontera, Mexico, effective April 2002. Approximately 225 Long Beach manufacturing jobs will be transferred to Mexico.