TPT September 2008

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From the AmericaS
September 2008 136 ›
weil engineering gmbh
Neuenburger Str. 23
79379 Müllheim
Germany
Phone: +49 (7631) 18 09 0
Fax: +49 (7631) 18 09 49
M A C H I N E D E S I G N I N A C L A S S O F I T ‘ S O W N
Economical,
flexible…
Welding machines
Tube production centers
Roll forming machines
Tube cutting machines
Tube finishing machines
Special laser welding applications
Tube productions machines
… and alternate production of
inline-welded short tubes of
different diameters with no
tooling required. All settings are
program-controlled. A compact
and inexpensive system offering
convenient operation and reduced
space requirements, whose
benefits are evident.
Hall 011
Booth E29
at which point Toyota had a one-day supply of the Prius, imported
from Japan.
Toyota’s announcements came after its first-half truck sales in the
US fell 6.8 per cent. Jim Wiseman, vice president for external affairs
for Toyota Motor Engineering and Manufacturing North America,
said in a statement that the changes Toyota is making demonstrate
the company’s continuing “long-term commitment to [its] North
American operations” despite the weakened market.
Off-highway vehicles pull auto parts
supplier Dana to higher ground
Dana Holding Corp, the Toledo, Ohio-based axle and frame maker
that emerged from bankruptcy only in February, presents another
example of adjustment to the new and harsh realities of the US auto
industry. Under its chief executive, Gary Convis, who spent 24 years
at the US manufacturing unit of Toyota Motor Corp before taking
over at Dana in April, the company is switching its focus to selling
parts for tractors and construction equipment.
Parts such as transmissions for off-highway vehicles may further
boost sales for that Dana division, which increased 26 per cent
last year and totaled $479 million in the first quarter, Mr Convis
told Bloomberg News. “That business has been growing about 20
per cent a year for several years,” he said. “Construction in the
emerging markets as well as agriculture and mining is where we are
really capable.”
The new thrust was of course prompted by rising steel prices and the
10 per cent decline in US auto sales this year, which have hindered
Dana’s ability to end three years of losses. But the challenge finds
the supplier in fighting trim. As noted by Bloomberg’s Alex Ortolani,
Dana left bankruptcy protection after reaping $440 million to $475
million in annual savings by closing plants and agreeing to a new
contract with US union workers (‘Dana’s ‘off-highway’ parts boost
sales as cars fall,’ 11 July 11).
The rewards are timely for the company, whose value had dropped
52 per cent since its emergence from bankruptcy. Three days
before the Bloomberg interview, Dana’s shares rose 17 per cent
in New York Stock Exchange composite trading, for the company’s
biggest gain since the bankruptcy exit. One analyst accompanied
his ‘buy’ rating with the suggestion that Dana may eventually sell or
find partners for some divisions.
Even so, rising steel prices are a continuing concern, with a
reported average for June of $1,145 per ton for automakers, up 86
per cent from June 2007. “We cut costs while in bankruptcy, and
we continue to cut costs,” Mr Convis said. “But we need the market
to stabilize.”
Moreover, as Mr Ortolani noted, Dana “faces competition in off-
highway business from Caterpillar as well as Navistar International
Corporation.”
Caterpillar Inc (Peoria, Illinois) is the world’s largest maker of
earthmoving equipment. Navistar (Warrenville, Illinois), formerly
International Harvester Co, makes diesel engines and is also a
provider of truck and diesel engine parts and services.
Dorothy Fabian, features editor (USA)