GM, Toolmakers Talk Faster
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20090330-NEWS--0001-NAT-CCI-CD_-- 3/27/2009 6:52 PM Page 1 ® www.crainsdetroit.com Vol. 25, No. 13 MARCH 30 – APRIL 5, 2009 $2 a copy; $59 a year ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved Inside Company faced GM, toolmakers talk faster pay racial American toolmakers say they proval process, known in the in- tensions Gaffe opens door to discussions don’t get paid at all until an aver- dustry as PPAP. age of five to 18 months after the The practice is in stark contrast head-on, BY RYAN BEENE ship between hundreds of tooling tools are shipped. Finished tools to that of Toyota, Honda and other Page 3 CRAIN’S DETROIT BUSINESS suppliers and GM — if discussions are sent to a tier-one supplier to transplants, which make several turn into results. build parts for a Detroit 3 end-user, payments over the life of a con- Tupper An ill-advised off-the-cuff com- Payment has been a festering is- but the automaker pays for the tract. ment about the tooling industry by sue for toolmakers who make tooling and channels that payment But for the first time in years, Tax dispute backlog grows, a General Motors Corp. executive stamping dies, injection molds, fix- through the tier-one supplier. GM is meeting with tooling indus- earlier this month could evolve to tures and other equipment used to However the Detroit 3 don’t pay try representatives to discuss pos- Page 3 a watershed change in the long- shape parts for Detroit 3 suppliers. for the tooling until it has gone standing supply chain relation- Under current practice, North through a production part ap- See Discussions, Page 21 How can Michigan stabilize its shaky tourism promotion funding? Page 6 Focus: Diversity Final Four ■ See who local experts News grief picked as the flurry best examples in metro Detroit, Page 11 Production cuts raise Hotels have This Just In no reservations Stimulus funds target questions of which metro Detroit uninsured about the rush Six federally qualified BY DANIEL DUGGAN health centers in metropoli- papers are fit to print NATHAN SKID/CRAIN’S DETROIT BUSINESS CRAIN’S DETROIT BUSINESS tan Detroit this week will re- ceive $1.4 million in federal Jerry Tononi spent last week Distilled to its essence: Can The newspaper advertising rev- stimulus funding to expand BY BILL SHEA studying his bracket for the NCAA CRAIN’S DETROIT BUSINESS enue numbers are proprietary, services to the uninsured. newspapers survive in reduced or basketball tournament, wondering said Steve Newhouse, chairman The funding is part of a online-only formats? whether the favored University of Layoffs, pay cuts, production of advance.net who is acting as $331 million package made Newspaper industry observers Pittsburgh, second-seeded Duke Uni- cutbacks, facility closures and the corporate spokesman on the available nationally to 152 and industry statistics paint a versity or one of the underdogs even talk of government help — it changes at Booth Newspapers Inc., health centers through the mixed picture. would come out sounds eerily like the grim news which is the Michigan subsidiary American Recovery and of the East. of the U.S. of New York INSIDE Reinvestment Act. Michi- It’s all work, auto indus- The situation City-based Ad- gan’s 29 health centers will WEB EXTRA though. try, but it’s vance Publica- receive $8.6 million. Newspapers have Tononi is gen- Read more: newspapers “None of us are tions Inc., owned An estimated 53,000 addi- suffered severe de- eral manager of Crain’s interviews that are “ by the New- the Westin hotel tional uninsured patients Steve Newhouse, clines in their surprised house family. will receive care in Michigan www.crainsdetroit scrambling advertising in Southfield, The New- through the funding. In addi- .com/newhouse to survive revenue traditional one of the four houses also tion, 152 jobs are expected to these days. lifeblood in re- properties as- own Conde Nast, be created over two years at Five Michigan cities will lose cent years as media is signed to the whose titles in- the health centers. daily print publications this year: retail, automo- winning school Beachnau clude Vogue, Ricardo Guzman, CEO of Detroit starting today, followed tive and classi- not going coming out of Ⅲ Interview: GQ and Vanity Community Health and Social by Ann Arbor, Flint, Saginaw and fied advertis- the East Divi- Dave Beachnau Fair, and has Services Center in Detroit, Bay City this summer. ing budgets to have the sion of the tour- of the Detroit reportedly been Metro Sports said the federal funding is In their places will be hybrid have been re- nament. Of the losing money Commission on important for expanding ac- online and print products operat- duced and same place 388 rooms at the and reducing property, 80 per- bringing the Final cess in the face of increasing ed in some cases by a fraction of transferred online. Four to Ford in the future that it staff. demand for services. their former staffs. Newspapers have cent are com- Field, Page 25. Newhouse But Guzman said the fund- Also in their place are ques- been unable to repli- mitted to the Ⅲ Tickets: Suite had in the past. did confirm ing also will be used to help tions about the viability of print cate print revenue NCAA from deals still ” that the Ann rebuild CHASS’ three clinic newspapers during an economic levels online. April 3-7. available, Albert Berriz, McKinley Inc. Arbor, Flint, “It’s a whirl- Page 25. locations that are crumbling meltdown and a generational Simply put, not as Saginaw and wind for us that and need infrastructure im- shift in reader habits and the ad- many people are Bay City papers were all losing starts Saturday,” he said last vertising need to adapt to those reading daily newspapers and ad- See This Just In, Page 2 vertisers are spending where eye- money, and the company will idle week. “The groups have very dif- consumer preferences. balls are going, or spending far two of the five presses the compa- ferent personalities and different less in general because of their ny bought for upwards of $100 needs, so we have to wait and see own economic woes. million in recent years. who we get.” The owner of the The Ann Ar- Booth is reducing publication The NCAA has reserved roughly bor News, which is closing the of the Flint, Saginaw and Bay City 4,000 rooms in the area for the publication in July and laying off newspapers to Thursdays, Fri- traveling coaches, players, bands, its 272 staffers and replacing it days and Sundays, and has cut cheerleaders, administrators, with a new Web site and twice- pay and benefits for all employ- alumni and students with the weekly print product, said its ees. Its newspapers in Grand teams coming to Detroit for the Fi- NEWSPAPER Michigan newspapers are losing money, but won’t say how much. See News, Page 24 See Hotels, Page 25 20090330-NEWS--0002-NAT-CCI-CD_-- 3/27/2009 6:48 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS March 30, 2009 The merger of the air carriers’ 2005. Tobin firm is a good fit … with ar- Need 51 bedrooms? THIS JUST IN reservation systems isn’t expect- Greektown Casino entered eas of emphasis in real estate, ed to happen until some time in Chapter 11 bankruptcy in 2008, commercial transactions and liti- Children’s Home for sale ■ From Page 1 2010. but Celani said he believes the gation, labor law, much like us,” Starr Commonwealth executives Delta, which said in December casino can emerge profitably. Hartmann said. and former trustees of the former provement. it will cut capacity by up to 10 “With the right people in place, Miller Canfield has maintained Children’s Home of Detroit plan to In Detroit, CHASS will receive percent this year because people absolutely,” he said. “But you’ve a Windsor office since 2002, and sell the home’s 6-acre property in $401,388; Covenant Community Care are flying less, is still awaiting got to put the right people in two of its attorneys have been us- Warren. Inc., $137,606; Detroit Community federal approval to operate as a place. The best option would be ing a Toronto satellite office since The 53,000-square-foot building Health Connection, $360,479; Detroit single airline, so some operations someone like myself that lives last spring. at the site on Chicago Road, east Health Care for the Homeless, will remain separate. here and has a passion for gam- Hartmann said he expects at of Van Dyke, includes 51 bed- $289,944. least one of those will move to the Northwest is the largest carri- ing.” rooms, a 20,000-square-foot base- Western Wayne Family Health new office. er at Metro, with more than 500 The Greektown offer is a joint ment, office space, classrooms, a Centers in Inkster will receive Gaertner Tobin partners Arie daily flights. venture between Celani and commercial kitchen, dining area $136,160, and Oakland Primary Gaertner and Dennis Tobin will Delta and Northwest finalized Greenwich, Conn.-based Plainfield and other common areas. Health Services Inc. will get a $2.8 billion all-stock merger in Asset Management L.L.C., Celani join Miller Canfield as principals, The Children’s Home board $144,560. October. said, as LPH Holdings. while partners Peter Hand and voted Feb. 6 to transfer the 172- — Jay Greene — Bill Shea Celani says there are other bid- Peter Math come aboard as se- year-old nonprofit’s assets to ders in the process as well.