Automotive News - January 21, 2008 - (Page 28J)

28J • JANUARY 21, 2008 Magna pursues Ogihara Deal would build major supplier of body panels Robert Sherefkin rsherefkin@crain.com Combining Magna’s stamping division, Cosma International, with Ogihara, of Ota, Gunma Prefecture, could allow Ogihara to follow its customers as they move beyond Asia and North America. Magna International Inc. is in talks to acquire all or part of Ogihara Corp., one of Japan’s premier stamping companies. The deal would create one of the world’s largest suppliers of large automotive body panels. The talks reflect the continued turmoil and consolidation in the stamping industry. Expertise plus resources The talks with Magna, of Aurora, Ontario, are so preliminary that the subject of price is not on the table, says a source familiar with the talks. Magna declined to comment. Lowell Blackbourn, CFO of Ogihara America Corp., of Howell, Mich., did not return calls. > Mastering all varieties: Drive systems from LuK Clutch systems Dampers Converters Transmission components “A deal would make a lot of sense,” says analyst John Groustra with consulting firm Conway MacKenzie & Dunleavy, of suburban Detroit. Cosma does not have Ogihara’s depth of toolmaking expertise, he says, but does have resources to help Ogihara gain a presence in eastern Europe. The stamping industry has been reeling from soaring raw material and energy prices. Tower Automotive Inc. entered bankruptcy in 2005. Dana Corp. followed a year later. In late 2006, ThyssenKrupp Budd Co. exited the industry, selling to Toronto’s Martinrea International Inc. for $275 million. Those same pressures are sending some stamping companies with revenues of $100 million to $500 million to the auction block, says Rob Wildeboer, executive chairman of Martinrea, a Cosma rival. Cosma and Ogihara are said to have fared better than most stamping companies. They produce higherprofit, so-called class-A body panels that demand high-quality materials and processes. Both are considered to be preferred suppliers, according to a 2006 study by Conway MacKenzie. Closely held Ogihara posted sales of $554 million in the fiscal year that A pressing supplier Magna International Inc. is in talks to buy part or all of Ogihara Corp. Here is a profile of the Japanese stamping company. Owners: Ogihara family Headquarters: Ota, Gunma Prefecture Founded: 1951 Locations: 7 plants in China, Mexico, Thailand, U.K. and U.S. Products: Bumpers, doors, frames and hood assemblies. Source: Company, PricewaterhouseCoopers ended March 31, 2006, the latest period for which numbers are available. But it relies on bank loans for working capital. Publicly held Magna, with access to the capital markets, is far better equipped to support the massive upfront investments needed by stamping companies. Second try This is at least the second time Ogihara has talked with a potential buyer. In 2002, private equity firm Ripplewood Holdings LLC ended talks to acquire the company after the family that owns Ogihara resisted relinquishing management control, says another source. Ogihara President Hiroaki Watanabe is the former executive vice president of Kanto Auto Works Ltd., a member of the Toyota Group. Ogihara manufactures tool-anddie assemblies and die-press automotive body parts and assemblies from steel and aluminum. Cosma specializes in chassis stampings, bumper beams and metal body panels primarily for light trucks. Cosma parent Magna ranks No. 4 on the Automotive News list of the top 100 global suppliers, with parts sales to the automakers of $23.88 billion in 2006.c > A clever move in every case – drive train technology by LuK! With a comprehensive range of innovative solutions, we cover the entire drive system in all its variants. Whether components for an automated shift gearbox, twin clutch or automatic gearbox, whether pulley sets, link chains or a control for a continuously variable transmission (CVT) – our knowledge of the systems and the innovative strength of our engineers guarantee the best possible strategies for better dynamics and comfort combined with lower fuel consumption and low emissions. LuK GmbH & Co. oHG · Industriestrasse 3 · 77815 Bühl · Phone: +49 7223 941-0 · Fax: +49 7223 26950 · www.LuK.com http://autonewschina.com/conference http://autonewschina.com/conference http://www.LuK.com http://www.LuK.com

Table of Contents Feed for the Digital Edition of Automotive News - January 21, 2008

Campi will move fast to buy global Ford rolls out new F series — but will it stay No. 1? GM will push metro megastores BMW: We may need a 'green' brand Competition claims traditions German summit Toyota: We have enough plants for now Chinese pitch innovation, not just price Mercedes in, Cadillac out as sponsor of Masters golf tournament Auto show walkaround: Chasing the YIPS around Detroit New Acura TSX will get a diesel Toyota: We'll crack 35-mpg CAFE before 2020 Audi predicts 1 million global sales in 2008 Toyota crosses over into tricky segment LETTER TO THE EDITOR: Digital edition is a 'quantum leap' KEITH CRAIN: Here they come, ready or not EDITORIAL: Incentives war isn't the answer to sales downturn LETTER TO THE EDITOR: Toyota over Chevy? Don’t be too sure DIGITAL EDITION: You did your homework Chrysler concepts show brand tweaks Chrysler: 'Hemi is not powertrain of the future' Some of what we heard at the Detroit auto show Corvette has a future — but maybe a lighter, greener one Nissan exec: Cube is coming to America Subaru relies on new Forester Farley: Ford must groom the market Ford still funds Jag, Land Rover product development Ford will probably develop its new rwd cars in the U.S. Volvo considers North American production Good design: Solving problems, making a statement Horbury wants a more aerodynamic F-150 Hyundai upgrades next Sonata's interior M-B could build C class in U.S. VW hints at vehicles for new N.A. plant Customer demand for CTS sedans strains production capabilities at Cadillac GM to test ZR1 carbon fiber weight savings Honda Pilot has more room, power Indiana plant will boost Honda's flexibility Zetsche sees 20% diesel mix for Mercedes-Benz GM hopes to have E-Flex test vehicles ready by June GM to increase Enclave output Cadillac aims high with Provoq Pontiac to launch G8 marketing in March Big-truck sales fall 43.5% in Dec. Personnel Buckle up for a rocky '08, economists warn Canada sales up 2.4% in '07 Gioia: Ford hybrids will be profitable by year end American Honda opens workplace diversity office Dealers From CDs to Sync: Auto industry races to adapt in-car IT trends Microsoft exec sees a car as 'another room in the house' China's Geely plans plant in Mexico Chrysler exec: China exporters need time Murtaugh: Nissan deal won't affect Chrysler-Chery venture Strike by writers makes TV iffy for auto marketers Super Bowl auto advertisers get pre-game jitters Final Say GM bumps buyout total to 46,000 GM considers U.S.-made Astra Good Karma: Mean, green, fighting machine Purves confirms it: The end is near Rehab for designers: A change can do you good Tata's achievement: Redefining 'cheap' Fans remember auto commercials with sports themes Which brand is stronger — Scion or Prius? Engine advances bring cleaner emissions a step closer Suppliers to the 2008 Ford Focus Varable compression ratio makes a comeback Change the engine's stroke Integrate components to boost efficiency Reduce the size of the engine Eliminate the cams and count the savings ZF expects surge in new orders American Axle's rising son may be another Dauch Honda taps Web for workers Trelleborg unit adds tech center Kia restricts hiring at Ga. plant to Web applicants Magna pursues Ogihara Supplier personnel Age of intelligent transportation is getting closer Plastic spoiler saves weight Automotive News' cartoonist looks at 2007 8 will enter European Automotive Hall of Fame Pininfarina lifted family business to new heights Merciless cost cutter Calvet rescued PSA Opel boys turned bicycle venture into automaker Giacosa fathered the Fiat 500 JCI to supply batteries to Chinese automakers Automakers will spend more on digital ads Ford snares star role in return of 'Knight Rider' GM Certified markets online to Hispanics Writers' strike could benefit auto marketers

Automotive News - January 21, 2008

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