FORD WINS BIDDING WAR FOR
DC AND HYUNDAI FORM ALLIANCE
MICHELIN AND GOODYEAR JOIN FORCES
LEAR TO HELP MAKE GM VANS
BMW WILL EXPAND IN SOUTH CAROLINA
AUDI ISSUES RECALL
MESA PROVING GROUNDS TO CLOSE
HYUNDAI FLIP-FLOPS ON STRATEGY
NISSAN TO RESTRUCTURE FINANCIAL ARM
WISCONSIN LEGISLATORS TRY TO BLAME THE EPA
ENVIRONMENTALISTS CRITICIZE GORE PLAN
FORD WINS DAEWOO BIDDING WAR Ford Motor Company has been selected as the preferred bidder for Korea's Daewoo Motor Company. Although Ford’s initial bid was for $6.9 billion, the bidding price and conditions will likely change during negotiation. Daewoo negotiation officials have said that Ford’s bid far surpassed those made by GM-Fiat and DaimlerChrysler-Hyundai. Negotiations between Daewoo officials and a committee of creditors will take about six weeks, and should they fail, the opportunity will be offered to the next highest bidder.
For more on the Ford-Daewoo bidding, click here.
DC AND HYUNDAI FORM ALLIANCE DaimlerChrysler and Hyundai are forming an alliance, for which DaimlerChrysler is paying $428 million for ten percent of Daewoo. The alliance provides for joint-venture collaborations on commercial vehicles between the two companies and co-development on passenger cars with Mitsubishi Motor Company. The two companies also announced that they will proceed to submit a joint bid for Korea's Daewoo Motor Company.
For more on the Hyundai/DC alliance, click here.
MICHELIN AND GOODYEAR JOIN
FORCES Michelin and Goodyear announced a joint venture for run-flat tires.
The venture will aim at establishing an industry standard for run-flat designs,
which allows motorists to continue to drive safely on a flat for a limited
distance. The two companies will share their established patents for run-flat
technology, and the venture may not necessarily result in joint
LEAR TO HELP MAKE GM VANS Lear
Corporation will benefit from a new joint-production plan with General Motors.
According to Automotive News, Lear will complete assembly of up to 15,000
full-size GM vans per year in a Lear facility. GM will assemble the vans
partially and then send them to Lear, where the vans will receive interior
fittings and exterior trim. The new vans, which will be more expensive and more
luxuriously fitted, will be shipped back to GM prior to distribution to dealers.
The vans are costly, at about $10,000 more than a regular full-size van, but GM
hopes to conquer some of the conversion van market.
BMW WILL EXPAND IN SOUTH CAROLINA
BMW announced a $300 million investment to expand production of X5 sport-utility
vehicles at the company's South Carolina facility, due to high demand. The
expansion will likely include about 500 new jobs at the factory, called BMW
AUDI ISSUES RECALL Audi has
issued a voluntary recall of some Audi A6 quattro models in the U.S. and Canada
for faulty fuel-gauge sending units. The sending units, which communicate to the
fuel gauge and onboard computer the level of fuel remaining in the tank, have
been shown to go bad due to some fuel additives. Shortly before the recall was
issued, a class action lawsuit alleging malfunctioning fuel gauges was filed
against Audi. The lawsuit alleges that Audi has known about the problem for 20
months and had failed to alert customers--until today. The recall affects more
than 50,000 1998, 1999, and 2000-model-year vehicles.