“Cooper-Standard Automotive Obtains Interim Approval of Debtor in ... - PR Newswire” plus 4 more

Cooper-Standard Automotive Obtains Interim Approval of Debtor in ... - PR Newswire
Private Automotive Stimulus Plan Launches - HULIQ.com
Clunkers program hits salvage yards - Argus Leader
Governor asks for $1B for auto suppliers - Detroit News
'Clunkers' plan gets money, needs more new cars - HamptonRoads.com

Cooper-Standard Automotive Obtains Interim Approval of Debtor in ... - PR Newswire

Posted: 06 Aug 2009 02:58 PM PDT

NOVI, Mich., Aug. 6 /PRNewswire/ -- Cooper-Standard Holdings Inc., the parent company of Cooper-Standard Automotive Inc., announced today that the Company and its subsidiaries in the U.S. and Canada received interim court approval of their $175 million debtor in possession financing.

Judge Peter J. Walsh of the U.S. Bankruptcy Court in Wilmington, Del. and Justice Lederman of the Ontario Superior Court of Justice in Toronto, Ontario, Canada granted the Company interim authority to access up to $50 million in debtor-in-possession financing in the U.S. and Canada. The Company will use the financing, along with its current cash balance and future cash flow, to pay normal operating expenses and formulate and implement a restructuring plan.

Additionally, Judge Walsh granted the Company first day relief, including authority to pay employee wages and benefits as usual.

Under the Canadian filing, the Company was granted authority to continue paying trade vendors in the ordinary course.

"The relief granted today ensures Cooper-Standard can continue to serve all customers without delay as the Company takes decisive steps to restructure its balance sheet," said James S. McElya, Chairman and Chief Executive Officer of Cooper-Standard. "Cooper-Standard's employees will continue to receive salary and benefits, suppliers will be paid on time during the bankruptcy case, and shipments will be delivered as expected."

"Perhaps most important, the Company's commitment to operational excellence will not be compromised," McElya added. "Cooper-Standard will continue to be a leader in innovation and technology in the automotive industry."

Cooper-Standard and its U.S. subsidiaries filed voluntary petitions to effectuate a balance sheet restructuring under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Wilmington, Del. on August 3, 2009. The Company's Canadian subsidiary, Cooper-Standard Automotive Canada Limited, on August 4, 2009 sought relief under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice in Toronto, Ontario, Canada.

As previously announced, Cooper-Standard has been engaged in negotiations with its lenders and other constituents regarding a consensual restructuring plan. Under the most recent proposal supported by holders of a majority of the Company's senior secured debt, the Company's balance sheet would be significantly deleveraged, as the Company would reduce its approximately $1.1 billion of bank and bond indebtedness to approximately $350 million. In addition, the lenders' proposal contemplates an exit financing facility of $100 million to $150 million.

More information about the Company's restructuring is available at www.cooperstandard.com. Additionally, the Company has set up a toll-free restructuring hotline at 888-329-3159.

About Cooper-Standard Automotive

Cooper-Standard Automotive Inc., headquartered in Novi, Mich., is a leading global automotive supplier specializing in the manufacture and marketing of systems and components for the automotive industry. Products include body sealing systems, fluid handling systems and NVH control systems, which are represented within the company's two operating divisions: North America and International. Cooper-Standard Automotive employs approximately 16,000 people globally with more than 70 facilities throughout the world. For more information, visit the company's Web site at: www.cooperstandard.com.

This news release includes forward-looking statements, reflecting current analysis and expectations, based on what are believed to be reasonable assumptions. Forward-looking statements may involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from those projected, stated or implied, depending on many factors, including, without limitation: the effects of the chapter 11 cases on the company; risks and uncertainties relating to approval by the Bankruptcy Court and the Canadian Court of the DIP financing; the ability to obtain court approval of motions in the chapter 11 proceedings from time to time; the ability to maintain contracts and suppliers and customer relationships; the ability to obtain exit financing; the ability of the company to develop, prosecute, confirm and consummate one or more plans of reorganization and to consummate the transactions contemplated thereby ; limitations on flexibility in operating business contained in the company's debt agreements; the company's dependence on the automotive industry; availability and cost of raw materials; the company's dependence on certain major customers; competition in the industry; sovereign and other risks related to the company conducting operations outside the United States; the uncertainty of the company's ability to achieve expected cost reduction savings; the company's exposure to product liability and warranty claims; labor conditions; the company's vulnerability to rising interest rates; the company's ability to meet customers' needs for new and improved products in a timely manner; the company's ability to attract and retain key personnel; potential conflicts of interests between owners and the company; the company's recent status as a stand-alone company; the company's legal rights to its intellectual property portfolio; the company's underfunded pension plans; environmental and other regulations; and the possibility that the company's acquisition strategy will not be successful. There may be other factors that may cause the company's actual results to differ materially from the forward-looking statement. Accordingly, there can be no assurance that Cooper-Standard Automotive will meet future results, performance or achievements expressed or implied by such forward-looking statements. This paragraph is included to provide safe harbor for forward-looking statements, which are not generally required to be publicly revised as circumstances change, and which Cooper-Standard Automotive does not intend to update.

SOURCE Cooper-Standard Holdings Inc.

Website: http://www.cooperstandard.com

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Private Automotive Stimulus Plan Launches - HULIQ.com

Posted: 06 Aug 2009 12:56 PM PDT

The private automotive stimulus plan is designed to fill in the gaps of the "Cash for Clunkers" program. That means that while there are exceptions from eligibility for the CARS program, the new program will allows most consumers who don't meant those requirements to still get up to a $4,500 rebate.

For example, this private automotive stimulus plan will take all vehicles from 2006 or older, not just those making 18 MPG or less. Unfortunately, there is not a set rebate for trade-ins, meaning each deal is different. There's a calculator, but it's non-operational right now, and the only way to find out information on a possible deal is to fill out a form and get a call from a participating dealer.

Here are the Private Automotive Stimulus Plan Requirements:

Current vehicle is a 2006 or older
Current vehicle is operable
Current vehicle has been owned for a minimum of 6 months
Current vehicle has been registered for a minimum of 6 months
Current vehicle has been insured for a minimum of 6 months
The replacement vehicle has to be more fuel efficient
Incentives vary based on current vehicle and desired vehicle

So, in the private automative simulus plan, 1) above is more liberal, 2) - 6) are about the same, and 7) is worse.

However, regardless of whether or not "Cash for Clunkers" runs out of money and ends early, this program will run through Nov. 1st. This private automotive stimulus plan was originally scheduled to begin on Aug. 14th, but was moved up a week due to the incredibly positive CARS feedback.

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Clunkers program hits salvage yards - Argus Leader

Posted: 06 Aug 2009 11:47 PM PDT

(2 of 2)

To turn a profit, Nordstrom's needs enough cars in which parts can be salvaged and then resold.

"The goal is you'd get enough parts you can sell to make up for the ones that are just scrap," Nordstrom said.

He also notes that the program is taking vehicles out of the market that would normally be candidates for new auto parts. That could hurt long-term sales.

Typically the company processes 150 to 200 cars a month. Nordstrom expects 1,000 in the next 30 days. The company is helping dealers certify that cars are being destroyed. Each violation of the law carries a possible $15,000 penalty.

"I'm a little nervous about this because I don't know what's going to happen," he said.

In Winner, Kaiser said he's still awaiting payment from the government on about 17 vehicles he's taken in under the program. The profit margins on the new cars he's sold are slim, he said, and if the government rejects a car for any reason, those profits can be wiped out.

"One little mistake can ruin the whole thing for you," he said.

David Billion of Billion Automotive said the first few days of the program were frustrating, taking as long as four hours to submit information on each sale. But the federal government has since streamlined the process.

"The inputting is going a lot smoother than it initially was," he said.

Despite the unknowns and the extra work, dealers say they're happy. Billion notes that factories are starting work again and sales people are making money. That, he said, is what a stimulus program should do.

"There's an awful lot of good that comes with it," he said.

Reach Jonathan Ellis at 605-575-3629.

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Governor asks for $1B for auto suppliers - Detroit News

Posted: 06 Aug 2009 10:50 PM PDT

David Shepardson / Detroit News Washington Bureau

Traverse City -- Gov. Jennifer Granholm on Thursday urged the Obama auto task force to lend small suppliers more than $1 billion to help the struggling industry gain access to credit.

"The problem is enormous," Granholm told reporters after an appearance at the Center for Automotive Research's Management Briefing Seminars here. "In this period, banks have essentially said the auto industry is off limits."

Michigan has proposed the federal government guarantee loans to smaller auto suppliers made by banks.

The pitch came as S&P issued a report that said automakers and suppliers face a "difficult" two years.

Standard & Poor's credit analyst Robert Schulz said the agency doesn't forecast "any meaningful improvement to industry conditions in the next 18 months."

While projections for 2010 may be higher than those for 2009, the numbers remain almost 15 percent below 2008's low point, S&P said. "Consumer spending is also unlikely to improve in the near future," Schultz said.

Granholm's comments followed a meeting Wednesday evening with White House top economic adviser Larry Summers -- co-chairman of the auto task force -- along with the top auto adviser, Ron Bloom, and White House aide Brian Deese. They met for nearly two hours in the office of Detroit Mayor Dave Bing, who owns the Bing Group, which manufactures and supplies primarily automotive parts to Tier I and II suppliers.

Bloom told reporters ahead of the Detroit meeting that the administration hadn't changed its position on supplier aid but is monitoring the situation.

The Obama administration is working to boost lending to businesses and hasn't decided whether the government will agree to more aid specifically for auto suppliers. The administration noted that suppliers that have filed for bankruptcy are getting financing to reorganize under court protection.

In the first seven months of 2009, 32 suppliers -- with assets of $50 billion -- filed for bankruptcy, compared with eight in the same period in 2008.

Suppliers seeking court protection this year include: Van Buren Township-based Visteon Corp.; Plymouth-based Metaldyne Corp.; Southfield-based Lear Corp.; and Novi-based Cooper Standard Automotive Inc.

Michigan has 2,500 auto suppliers -- the most of any state -- and has lost 450,000 manufacturing jobs since 2000 -- most in the auto sector.

The government's program to guarantee the receivables for Tier I suppliers unveiled in March was cut in July to $3.5 billion from $5 billion.

"The second and third tier are really the base of this manufacturing industry," Granholm said. "Allowing them to survive and position themselves for competitive success is really what we're talking about and there hasn't been anything to deal with that."

She said administration officials made no commitments.

"They want to think about it," she said. "They don't want to throw more money at something (that doesn't work)."

The Michigan Economic Development Corp. has set aside $12 million to help guarantee loans for small suppliers, and last week allocated $998,000 to help a Michigan supplier, Saline Lectronics, to diversify its operations. The company with 82 employees specializes in electronic manufacturing services concentrated on mid-volume, multi-layer, high-mix electronic printed circuit board assembly.

MEDC CEO Greg Main said the Granholm administration is seeking another $20 million from the Legislature to boost the state supplier support program that began earlier this year.

"(The auto task force) really does not want to bail out the suppliers," Main said. "We don't think this is a bailout program. This is a program in which the federal government will get their money back and be run through the banks."

Granholm and Main said the problem is a $1 billion issue in Michigan.

"If we were able, through the financial institutions, to have access to $1 billion for loaning and getting back -- for good deals only -- to diversify, that would help bridge this gap," Granholm said.

She said one option would be to expand a Small Business Administration loan program, which requires a 10 percent company match. The match could be dropped to make it easier for suppliers to take part, she said.

Six suppliers also met with White House officials. They included: Jesse Levine, CFO of Atlas Technologies, Fenton; Kirk Lewis, president of the Bing Group, Detroit; Michael Guthrie, president of Detroit Chassis; Wes Smith, president of E&E Manufacturing Co., Plymouth; Mario Sciberras, CEO of Saline Lectronics, Saline; and Andra Rush, President of Rush Trucking.

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'Clunkers' plan gets money, needs more new cars - HamptonRoads.com

Posted: 06 Aug 2009 08:13 PM PDT

Now that Congress has agreed to put more money toward the "cash for clunkers" program, consumers trying to use the government rebates will find fewer new cars to buy.

The program, which had its rules finalized July 24, allows owners of older, gas-guzzling cars and trucks to receive as much as $4,500 if they trade them in for new, more fuel-efficient vehicles. It has created such a surge in demand, according to local dealerships, that they have sold out or run low on many models:

First Team Toyota in Chesapeake had just a single Prius left late Thursday.

Duke Automotive in Suffolk had one Chevrolet Traverse, a couple of Buick Enclaves and two GMC Acadias.

Beach Ford in Virginia Beach was down to its last few Focuses.

Hall Automotive's dealerships had sold out of the Honda Ridgeline, Jeep Patriot, Nissan Murano, Ford Taurus, Dodge Caliber and Dodge Nitro.

"It's getting really thin," said Gerry Reust, president of First Team. "Every day, it has just been nonstop."

The program, which was about to run out of money, received an extension Thursday night when Congress approved an additional $2 billion.

The Senate approved the money on a 60-37 vote after Obama administration officials said an initial $1 billion had run out in 10 days. The House voted last week to keep the program alive.

The government said Wednesday that more than $775 million of the original money had been spent, accounting for the sale of nearly 185,000 new vehicles. Administration officials estimate the extra funding will last into Labor Day.

Data released this week from the Department of Transportation showed the Toyota Corolla, Ford Focus and Honda Civic among the top choices for buyers trading in their clunkers for the rebate.

Tom Barton III, president of Beach Ford, said he has an order of about 20 more Focuses on the way to the dealership. He could process transactions for those cars under the "clunkers" program, he said, but he has to be careful about paying out too many rebates before he has the vehicles.

With the program's initial $1 billion spent so quickly, Barton said he wants to make sure he can get that money back.

"We don't know when it's going to run out," he said.

If a customer wants a vehicle that Duke Automotive doesn't have, the dealership will try to find it elsewhere, said Lydia Duke, company president. But with dealers across the country facing tight supplies, they often won't give up their cars. Duke recently turned down a dealer friend's request for help, she said.

"I'm seeing a lot of pavement," Duke said of her empty lots. "The helicopter can land here now."

The "cash for clunkers" clamor comes after a months-long drought in the auto business that caused most manufacturers to cut back production. While dealers weren't selling many vehicles, the automakers gave them fewer to sell, and dealers grew cautious about ordering stock they couldn't move.

Now that demand has spiked, factories cannot rev up fast enough to replenish inventories. Shipments of many imported brands are on their way, said Fred Miller, president of Hall Automotive, but he'll have to wait longer for some of the domestic models.

The program requires that dealers have the serial number of an actual vehicle to process a trade-in for a new car. In most cases, they receive those numbers once the order is in transit to the dealership, Miller said.

"I've got to have a car that I know is inbound," he said. "You cannot do it on speculation."

This report contains information from The Associated Press.

Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com