Auto makers battle Y2K bug in vast supplier network; GM's summer strike shows any breakdown in chain can cause gridlock

Article Abstract:

The year 2000 (Y2K) problem affects not only US auto markers but also tens of thousands of their international suppliers. Cost-conscious auto makers now rely on suppliers to deliver important components several times a day, and disruption quickly halts production. This development was illustrated by 1998 strikes at two General Motors (GM) plants, which paralyzed nearly all of the company's North American production. GM, which says it has traced Y2K problems to around 1.7 million computer devices that affect production, adds that its systems transition will cost almost $1 billion. Large auto makers enlist more than 150,000 international suppliers. Companies are working with their suppliers to ease Y2K transition, or possibly terminate contracts with suppliers that refuse to cooperate. Some auto makers are expected to anticipate suppliers' compliance problems by stockpiling important parts or soliciting other sources.

Motor vehicles and car bodies, Marketing procedures, Motor Vehicles, Automobile and Light Duty Motor Vehicle Manufacturing, Motor vehicle supplies and new parts, Motor Vehicle Supplies and New Parts Wholesalers, Motor Vehicle Parts ex Engines Whsle, Innovations, Forecasts and trends, Industry trend, Telecommunications systems, Automobiles, Wholesale industry, Wholesale trade, Year 2000 transition (Computers), Automobile industry, Distribution, Wholesale dealer/distributor, Year 2000 transition, Automotive parts wholesalers

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SPX agrees to acquire General Signal in $2 billion deal for stock and cash

Article Abstract:

SPX Corp., which is based in Muskegon, Mich., is set to acquire the General Signal Corp., based in Stamford, Conn., for about $2 billion in cash and stock following the approval of a definitive agreement by both companies' boards. The new company, which is expected to have annual revenues of $2.5 billion, will have interests in auto parts, electrical and industrial controls and other areas. The deal, in which SPX will assume $335 million in debt from General Signal, is expected to be completed by the year's end.

Comment:

Will acquire General Signal Corp. for about $2 bil in cash and stock

Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables, Asset sales & divestitures, Acquisitions & mergers, Process Instruments, Controls, Carburetor, Piston, Piston Ring, and Valve Manufacturing, Carburetors, Rings & Valves, Process control equipment, Engine parts, General Signal Corp., SPX Corp.

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Lear says strikes at GM reduced profit about 13%

Article Abstract:

Lear Corp. announced that it will post an approximately 13% drop in its earnings per share for the 1998 second-quarter as a result of the strikes at General Motors Corp. (GM). The company is one of the largest suppliers of seats and automotive interiors in the US. Lear is expecting to see its second-quarter profits fall by about 14 cents a share. GM is the company's second-largest client.

Comment:

Exepcts to post approx 13% drop in its earnings per share for the 1998 second-quarter due to strikes at GM

Sales, profits & dividends, Motor Vehicle Seating and Interior Trim Manufacturing, Transport Seating, Lear Corp., Bus seating

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