Wednesday, April 20, 2005

Global Auto Report

Jury awards nearly $43.8 million in Town Car crash

Detroit News staff, wire and Bloomberg News reports

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EDWARDSVILLE, Ill. - A jury has awarded nearly $43.8 million to the family of a 74-year-old Missouri man who died when the gas tank in his 1993 Lincoln Town Car caught on fire after the car was struck from behind by another vehicle. The July 2003 accident also severely burned John Jablonski's wife, Dora, 72. The family sued Ford Motor Co., alleging the location of the car's fuel tank behind the rear axle caused the fire. But Jim Feeney, an attorney for the automaker, argued that no similar accidents have occurred involving the same Town Car model. Feeney also said the Town Car's fuel tank was in "the optimum location for that car."

GM completes sale of land for development in Warren

General Motors Corp. announced Wednesday that it has completed the sale of 312 acres of land in Warren for the development of a $400-million residential and retail project. GM and the developer, Farmington Hills-based Grand Sakwa Properties Inc., received approval for the deal from Warren officials over the winter. On Monday, they closed on the sale, GM spokesman John McDonald said. The development next to General Motors Corp.'s Technical Center is to be anchored by a Meijer Inc. superstore and will include other brand-name retailers, as well as 1,100 homes. Dubbed "Heritage Village," it also will include more than 100 acres of open space for community recreation.

Johnson Controls says new job will add 300 jobs in Holland

HOLLAND, Mich. - Johnson Controls Inc. says it will make metal seat adjusters and tracks in a deal that will add 300 jobs by year's end and 525 in all when it reaches full production in later years. Milwaukee-based Johnson Controls will move production of floor consoles and trim from a plant in Ottawa County's Holland Township to a plant near Tulip City Airport in Holland and move the new seat component work to the Holland Township facility, spokeswoman Debra Lacey said Tuesday. Johnson Controls would not identify the customers for the products, but Lacey said they are several automakers.

Johnson Controls posts 28% earnings hike

Johnson Controls Inc., the world's largest maker of automotive seats, said second-quarter earnings rose 28 percent as it sold more interior components and batteries. The company raised its full-year sales forecast. Net income climbed to $202.5 million, or $1.04 a share, from $157.7 million, or 82 cents, a year earlier, the Milwaukee-based company said in a statement today. Sales in the period that ended March 31 rose 13 percent to $7.1 billion from $6.31 billion, helped by currency-exchange gains. Johnson Controls was the only major U.S. auto supplier to raise its profit forecast in the quarter.

GM Escalade will offer satellite TV

KVH Industries Inc., a maker of satellite TV receivers for cars, boats and trucks, Tuesday said its system will be offered as an option in General Motors Corp.'s Cadillac Escalade SUVs, the first deal of its kind. Recommended retail price for the option is $2,695. Customers will need to buy a subscription from DirecTV Group.

Mercedes-Benz to make cars in China

DaimlerChrysler AG said China next month will approve a plan to manufacture Mercedes-Benz cars in the world's third-largest vehicle market, adding to a glut of capacity that is forcing rival BMW to cut prices. China's car sales growth dropped in the 20 months since DaimlerChrysler invested 1 billion euros ($1.3 billion) with Beijing Automotive Holdings Co. to build 25,000 C-Class and E-Class luxury cars a year in the Chinese capital. Growth in car sales slowed to 15 percent last year, after surging 76 percent in 2003 and 50 percent in 2002..

TRW expands, shifts operations in China

SHANGHAI, China -- TRW Automotive Holdings Corp. on Tuesday announced the expansion of its facilities in Anting, China, in support of the company's growing Chinese and Asia Pacific customer base. The company announced the expansion of one facility in Anting and the relocation of another from its current Shanghai city location to a larger site also in Anting. TRW Automotive Components manufactures airbag electronic control units and steering-gear assemblies. With 2004 sales of $12 billion, Livonia-based TRW Automotive ranks among the world's top 10 automotive suppliers.