20100524-NEWS--0001-NAT-CCI-CD_-- 5/21/20106:42PMPage1 nationwide. gun sellingin gineer at by ents. Itwasfoundedin2007 erasable messagesfrompar- that canstorerecorded, maker ofpendantsforkids Ann WilliamsGroupL.L.C. vertible toequity,are: form ofloansorcon- vestments lastmonth. Town fund, housedinDetroit’s three investmentstoday.The pected toannounceitsnext nesses upandrunning,isex- entrepreneurs gettheirbusi- tiative lished bythe $5 millionseedfundestab- and subsidiaries,Page21 Largest divisions,affiliates Page 11 executives, overlooked a lighton Shining collaborate, shareservices to helplocalgovernments Bill wouldcreatestateoffice NEWSPAPER more startupinvestments First StepFundmakes This JustIn Crain’s Crain’s Finance Extra Page 3 Getting $50,000each,inthe The Sheila Wright , madeitsfirstfourin- Bloomfield Hills-based to helpveryearly-stage See ThisJustIn,Page2 First StepFund List Chrysler, New EconomyIni- Hallmark , aformeren- ©Entire contentscopyright2010byCrainCommunicationsInc.Allrightsreserved lover Detroit creator, Ford ad Barlow: Meet Toby www.crainsdetroit.com Vol.26,No.21 and hasbe- stores Tech- , a , a fits Survey 2010 Troy-based ductible healthinsuranceplans,accordingto containment deviceandofferingmorehigh-de- employees, usingwellnessprogramsasacost- this year,despitetakingstepstoshiftcosts medical benefitexpensestoincrease7percent lenge nowbecomesgettingback Chevrolet Chevrolet Inc. dealers —whichincludes during thebadtimes. tomers whohavegoneelsewhere important, winningbackcus- ing cars,hiringstaffand,most brate. lief.” every singleday,thisissuchare- year ofgettingkickedinthehead owned byhisfather,Lou.“Aftera tive managerofthedealership of fun,”saidScottLaRiche,execu- through thatshowroomwasalot country towininarbitration. dealership isoneofthefirstin break newstoemployeesthatthe Co. Chevrolet news of40-year-old year ago. have beenmoredifferentfroma weeks ago,themoodcouldn’t of hisfamily’scardealershiptwo through thePlymouthshowroom big challenge customers next Winning back Reinstated dealersrebuild Companies trystrategies toslowincrease Expected healthcostrise:7% “We sawbigchangesthisyearinbenefit Employers inSoutheastMichiganexpect For thefirstthreereinstated LaRiche nowhastostartorder- But there’slittletimetocele- “It wasaFriday,andwalking This time,itwasachanceto In 2009,hewascopingwiththe When ScottLaRichewalked ’s “wind-down”list. Southeast MichiganMid-MarketGroupBene- CRAIN’S DETROITBUSINESS B Y D . being on in Wayne—thechal- ANIEL McGraw Wentworth CRAIN’S DETROITBUSINESS in Livoniaand B Y J D General Motors AY UGGAN Lou LaRiche G REENE Tennyson Mark ’s seventhannual — quickly. new carinventoryandhire staff ers. Also,theyneedtoreplenish tomers withthemtoother deal- salespeople whohavetaken cus- with thelossof ers needtodeal achieve,” hesaid. a whileto at leasttakequite be impossible,or share may tion market pre-termina- ery ofthe full recov- statement, a with rein- P.L.L.C. & Moran based tice atSouthfield- dealership prac- tant inthe tomotive consul- Eagan,anau- ket share,saidJim market towincustomersandmar- into thecompetitiveDetroitdealer Motors Co.,theywontherighttokeeptheirfamily-ownedGMdealership. Lou ofLaRicheChevroletinPlymouth.InarbitrationagainstGeneral Business hastakenaturnforthebetterScottLaRiche(right)andfather Eagan saiddeal- “Even Plante MAY 24–30,2010 saving steps, Strategies: down? Who’s holdingcosts “Trend Benders”: S McLaughlan saidsomecompaniesmadetough respects,” saidRebeccaMcLaughlan,McGraw plans thatsurpassednationalaveragesinsome UCCESSES With Michigan’seconomyinrecovery, take quiteawhileto Jim Eagan,Plante&MoranP.L.L.C. Page 26 “ Cost- A fullrecovery Page 26 achieve. market share termination impossible, of thepre- or atleast may be down listandcouldnotbuy new because Markwasonthewind- pared to250in2009,saidCabana. get backintothefight. national trends. fits tocomeinlinewith historically richbene- continue tocutbackon Michigan employers survey showedthat director. Wentworth’s managing The inventorylevelfellsolow Cabana, newcarmanagerfor Chris Cabanasaidhe’sreadyto ” McLaughlan saidthe See Dealers,Page29 car lot—com- cars onthenew- were justfive when there in December Mark Chevrolet most bleakat to go,”hesaid. next week. vive untilthe of howtosur- with theissues than dealing much better customers is and howtowin how tocompete with issuesof let, saiddealing Mark Chevro- Times were “We’re ready ROBERT CHASE leader. Wentworth andthesurvey director withMcGraw said KarenAlter,account damper onrevenuegrowth, economy isstillputtinga cut costs”becausethepoor real pressurenationallyto The expected7percentincreaseincostsisup “Employers areunder year. nies are“catchingup”this efit plans,butothercompa- choices toreducecostsin2009bychangingben- (See storyonPage26.) National InstitutesofHealth al fundingsources,includingthe from avarietyofstateandnation- from privatedonorsandtherest development funding. than $19millioninresearchand than adecadeofstruggleandmore medical marketplaceaftermore the companywithinsightof breast cancerdetection. prototype machineforultrasonic profit spinoffthathasbuilta nus MedicalTechnologiesInc. ing roundof$8millionfor today thatithasclosedonafund- Institute tional CancerInstitute Michigan by studentsatthe Wolverine VentureFund based tures L.L.C. Ann Arbor-based TechnologyPartnersL.L.C. Coast panies —AnnArbor-based from prototypetomarket. in VCfundingtotakethecompany said theyhopedtoget$5.5million 300 women,Karmanosofficials ter clinicalstudiesofmorethan was announcedlastNovemberaf- dation. Susan G.KomenBreastCancerFoun- Economic DevelopmentCorp. closer tomarket Delphinus moves wins funding alternative Mammogram About $6millionofthatwas The investmentfinallybrings The Three areaventurecapitalcom- When thespinoffofcompany CRAIN’S DETROITBUSINESS B Barbara AnnKarmanosCancer Beringea L.L.C Y is expectedtoannounce business school,likedthe T , andFarmingtonHills- OM See Healthcost,Page26 See Delphinus,Page29 H $2 acopy;$59year ENDERSON McLaughlan Arboretum Ven- , the . —andthe University of , afundrun Michigan , the and the , anon- Delphi- North Na- ® , 20100524-NEWS--0002-NAT-CCI-CD_-- 5/21/2010 6:21 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS May 24, 2010

Delphi and several other former cised by then-tribal Chairman New data has state expecting THIS JUST IN The way it was: 1990 executives have settled their cases. Bernard Bouschor for seven tribe — David Barkholz employees, who collected more $340M general fund shortfall ■ Throughout our 25th-anniversary From Page 1 than $2 million in the case. Michigan faces an approximate year, Crain’s will use this space The tribe sued Bouschor, Miller $340 million general fund shortfall to look at interesting items from UM health system to expand Canfield and the employees in Ann Arbor-based InfoReady in the current fiscal year, based on past issues. 2004, arguing the chairman did not for Grants, a spinoff from GDI In- emergency department new state revenue estimates and have authority to execute the fotech Inc., an IT outsourcing spending pressures, according to The University of Michigan Health agreements. The settlement ad- company. InfoReady will provide, If you must the Granholm administration. System will begin a $17.7 million dresses only a claim of legal mal- on a subscription basis, e-mail The projection comes in the make a project later this year to renovate practice and conspiracy against alerts to businesses and academic and expand its emergency depart- wake of a Friday revenue-estimat- researchers that have informa- the law firm; none of the other par- telephone call, ment by 6,000 square feet. ties reached a resolution last week. ing conference in which state tion about new federal grants and The $17.7 million project, ap- economists said Michigan will their requirements. Principal William Sankbeil, of De- proved Thursday by UM regents, have $244 million less revenue this Bandals International of Com- always try to find a public troit-based Kerr, Russell and Weber is expected to be completed in the year in its general fund than earli- merce Township, which makes P.L.C., represented the law firm in phone — don’t ask to use the summer of 2012. er projections, but the state School sandals that come with inter- the case. Partner William Horton at — Jay Greene Aid Fund is up over previous esti- changeable straps. phone in someone’s office. Giarmarco, Mullins & Horton P.C. in — Tom Henderson Troy represented the tribe. mates. Miller Canfield settles with tribe — Chad Halcom — Amy Lane Peg Treacy Adaptive wins Navy contract Detroit-based Miller, Canfield, Churchill Associates Inc./ Paddock and Stone P.L.C. will pay CORRECTIONS Ann Arbor-based solid oxide Impression Management $1 million to settle its portion of a A Week on the Web brief on Page 38 of the May 17 edition should fuel cell maker Adaptive Materials lawsuit with the Sault Ste. Marie has been awarded a $150,000 con- From an Oct. 29, 1990, article have said that Simon Haddad, owner and president of Audio Trends Inc. in about business etiquette. A world Tribe of Chippewa Indians, under an tract, which could lead to a second Shelby Township, will face Randell Shafer in the Aug. 3 Republican pri- in which everyone carries a agreement reached during court $750,000 contract, to provide high- mary for Macomb County executive. Shafer was omitted from the cellphone would eventually render mediation last week. brief. The winner of that race faces Macomb County Sheriff Mark efficiency fuel cells to the U.S. Navy. the point moot. Michael Miller Canfield CEO Hackel in November; Anthony Marrocco dropped out of the Democrat- The contract will fund research Hartmann said the law firm ic primary last week. The item incorrectly said Marrocco was still in aimed at developing fuel cells pow- Battenberg and four other for- reached the agreement with the the race. ered by the Navy’s on-board fuels. mer Delphi executives are ac- tribe during a meeting among all The wrong photo was used on Page 35 of the May — Brett Callwood cused by the government of a pat- the parties in a dispute over sever- 17 edition with an article that quoted Thomas Mc- tern of “fraudulent conduct” from ance payments to former tribal Graw of McGraw Morris P.C. in Troy. The correct pho- 2000 to 2004 to make Delphi earn- employees. “We admit no liability, to appears here. Delphi fraud case set for trial ings and cash flow look better than and we don’t expect to have any On the Private 200 list published May 17, Priority A four-year effort by former they were. further role in the case,” Hart- Health, No. 12, was mistakenly included on the list. Delphi Corp. CEO J.T. Battenberg III Troy-based Delphi, a giant parts mann said. The list of privately held companies does not in- to clear his name after federal supplier spun out of General Motors Miller Canfield represented the clude nonprofit organizations. Also, Charles Robin- charges of civil fraud appears in 1999, ended up in Chapter 11 re- Sault Ste. Marie tribe until about son should have been listed as the president and headed for a jury trial in Detroit organization in October 2005. It six years ago. At issue is a set of CEO of Albert Kahn family of companies, No. 192. starting Oct. 4. emerged four years later. termination agreements exer- McGraw 20100524-NEWS--0003-NAT-CCI-CD_-- 5/21/2010 6:48 PM Page 1

May 24, 2010 CRAIN’S DETROIT BUSINESS Page 3

Inside Bill’s aim: Ad agency to open office Crain’s Roundtable: Solving the financing conundrum, Shared San Francisco’s Goodby to handle Chevy work Page 18 BY BILL SHEA e-mail to Crain’s. What does JCI bid for Visteon CRAIN’S DETROIT BUSINESS Goodby may not have to look far interiors and electronics biz We do not know for space: There’s some owned by San Francisco advertising “ New York City-based advertising say about industry? Page 28 services agency Goodby, Silverstein & Part- yet how many holding company Omnicom Group, ners plans to open an office in which also owns BBDO North Ameri- metro Detroit to handle the $600 employees we will ca — the agency that eliminated State would help million Chevrolet advertising ac- 450 local jobs when it closed its Company index count it picked up in a surprise need to hire, or where BBDO Detroit office in Troy after These organizations appear in this week’s Crain’s move last week. losing the Chrysler L.L.C. marketing Detroit Business: governmental No location, time frame or we will house account in January. staffing estimate has been made BBDO still has its lease on the Access BIDCO ...... 18 consolidations public, but someone with knowl- them. building at 880 W. Long Lake Road, Arboretum Ventures ...... 1 edge of the deal said it’s expected ” which it’s had since the office was Automotive Credit ...... 16 BY AMY LANE to be about 75 people. Christine O’Donnell, built in 1999, according to informa- Awrey Bakeries ...... 15 CAPITOL CORRESPONDENT It’s unknown how much of the Goodby, Silverstein & Partners tion from the Bethesda, Md.-based Beringea ...... 1 work will be done locally and how research firm CoStar Group. Business Leaders for Michigan ...... 28 LANSING — A new state of- much in San Francisco. BBDO occupied the entire six- fice that could help smooth the employees we will need to hire, or College for Creative Studies ...... 12 Goodby is saying very little story, 186,500-square-foot building way for local governments to where we will house them,” said Conway MacKenzie ...... 28 about the situation. Christine O’Donnell, Goodby’s di- share services, collaborate and Chevrolet ...... 3 “We do not know yet how many rector of agency relations, via an See Agency, Page 28 consolidate is being proposed Christian Television Network ...... 7 in Lansing. Chrysler ...... 29 The Intergovernmental Advi- Citizens Bank ...... 26 sory Office, embodied in House Crime Stoppers of Michigan ...... 7 Bill 5930, would assist local gov- Delphinus Medical Technologies ...... 1 ernments in a myriad of areas, Detroit Regional Chamber ...... 12 said bill sponsor Rep. Marie Donigan, D-Royal Oak. Diversified Machine ...... 14 She discussed her legislation First Michigan Bancorp ...... 17 as part of a panel at a Crain’s Ford Motor ...... 3 Michigan Business event in FutureNet Group ...... 4 Grand Rapids on May 17 on the General Motors ...... 1 business case and ways to re- Grandpapa’s ...... 6 build local government. Honigman Miller Schwartz and Cohn ...... 18 Crain’s Michigan Business is Hungry Howie’s ...... 22 a free weekly e-newsletter that H.W. Kaufman Financial Group ...... 14 summarizes business, econom- Johnson Controls ...... 28 ic and public policy news from around the state. Karmanos Cancer Institute ...... 1 Event keynote speaker When not focused on advertising as Lear ...... 13 Stephen Goldsmith, the former chief creative director at Team Lou LaRiche Chevrolet ...... 1 mayor of Indianapolis and re- Detroit in Dearborn, Toby Barlow McCann Worldgroup ...... 27 speaks up for the city of Detroit and cently appointed deputy mayor McGraw Wentworth ...... 1 for operations to New York City the promise he says it holds for imaginative entrepreneurs. Mercer ...... 26 Mayor Michael Bloomberg, Michigan Economic Growth Authority ...... 6 said Michigan cities, like those Michigan Municipal League ...... 28 across the country, are chal- North Coast Technology Partners ...... 1 lenged by appetites for govern- Plante & Moran ...... 1 ment services that exceed fi- Plante Moran Cresa...... 4 nancial ability. DAYMON J. HARTLEY It’s an issue that continues to Plex Systems ...... 16 echo locally throughout Michi- Proto Manufacturing ...... 6 gan and in the Capitol, where PulteGroup ...... 13 cuts to state revenue sharing, Roush Enterprises ...... 14 like a 4 percent reduction Behind the wheel of Ford ads Small Business and Tech. Development Ctr ...... 18 passed last week by the state Taubman Centers ...... 17 Senate, are met with concern Team Detroit ...... 3 and opposition from local gov- Toby Barlow: Creative director, creatives’ advocate Tennyson Chevrolet ...... 1 ernment officials who say BY BILL SHEA Detroit, the consortium of five WPP one of the historic Mies van der Thav Gross Steinway & Bennett ...... 29 See Shared services, Page 28 CRAIN’S DETROIT BUSINESS Group advertising agencies that Rohe town houses. TK Holdings ...... 6 work on Ford Motor Co.’s market- “I couldn’t believe you could get University of Michigan Health System ...... 13 Philadelphia native Toby Bar- ing. He led the cre- a Mies van der Rohe University of Michigan Medical School ...... 29 low is a practicing Quaker, studied ation of the cam- for $100,000,” he Urban Science ...... 15 What I’d like philosophy at St. John’s College in paign. said. “I love living In a way, Vestaron ...... 18 “ Annapolis, wrote a critically ac- It’s the job of Bar- downtown. I love “ Visteon ...... 28 this claimed free-verse novel about up- low and his team to a strange new the community.” legis- scale Los Angeles werewolves and craft the advertising That love has Walter P. Chrysler Museum Foundation ...... 4 was raised by what he calls hippie for Ford, whose American dream transformed him Wayne State University ...... 26 lation parents in an arts commune his world headquarters into something of a Western Michigan University ...... 18 mother ran in New Hampshire. sits just across the can be found champion for the be- to do ... And now, he wants to sell you a Southfield Freeway leaguered city. Ford. from Team Detroit’s here. “I’ve sorta always Department index Specifically, he’d really like you own steel-and-glass ” been intrigued by is to BANKRUPTCIES ...... 6 to buy the new subcompact Ford office. Toby Barlow, Team Detroit the town,” he said. create a Fiesta, which gets 40 mpg on the Barlow has taken “The epic nature of BUSINESS DIARY ...... 20 highway. An advertising cam- on another job, albeit one that its rise and fall is fascinating.” CALENDAR ...... 24 sense of orderly paign touting the Fiesta’s fuel-effi- doesn’t come with a paycheck: Ad- He’s been quoted in domestic CAREERWORKS ...... 22 ciency and special features was vocate for Detroit and the region’s and foreign media about the city, CLASSIFIED ADS ...... 24 reconstruction. rolled out nationally on May 18. creative community. and his pro-Detroit progressive KEITH CRAIN...... 8 ” Barlow, 44, is the chief creative He lives in downtown Detroit’s LETTERS...... 8 Rep. Marie Donigan, D-Royal Oak director at Dearborn-based Team Lafayette Park neighborhood, in See Barlow, Page 27 MARY KRAMER ...... 9 OPINION ...... 8 Nominate someone Guest blogger PEOPLE ...... 23 Do you know a woman poised to make a difference Tom Nixon offers PR and marketing THIS WEEK @ RUMBLINGS ...... 30 in her company or industry? Nominate her for Crain's insight for second-stage companies, WWW.CRAINSDETROIT.COM Women to Watch at crainsdetroit.com/nominate crainsdetroit.com/profs STAGE TWO STRATEGIES ...... 4 WEEK ON THE WEB ...... 30 20100524-NEWS--0004-NAT-CCI-CD_-- 5/21/2010 5:55 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS May 24, 2010

StageTwo Strategies Our cultural places A weekly look at problem-solving by second-stage companies. offer outdoor spaces. StageTwoStrategies is a weekly feature that analyzes a To sign up for the twice-monthly recent business decision by a second-stage company. e-newsletter, go to crainsdetroit.com/getemail. The For more second-stage coverage, go to Second Stage print section will appear in Crain’s on the crainsdetroit.com/secondstage. third Monday of each month. Complimentary concierge planning. Entertainment, events, meetings and more. FUTURENET GROUP L.L.C. Location: Detroit these government contracts were didn’t work out, I would have been Description: A general contrac- a good niche business.” in a very difficult financial posi- tor for the defense industry that Mehta said the company main- tion, but that’s the risk you take as the also offers IT, environmental and tained a 5 per- an entrepreneur.” civil engineering consulting ser- cent profit mar- Expert opinion: Tom Chen, princi- cultural vices. In May, it was ranked 10th gin on its pal and director of capital projects concierge in BusinessWeek’s Inner City 100, out-of-state pro- for Southfield-based commercial a program of the cultural alliance honoring the fastest-growing in- jects to demon- real estate advisers Plante Moran of southeastern michigan, ner-city companies in the coun- strate the po- Cresa, said bonding has become a 501(c)(3) organization try. tential. tighter in the past five years. President and CEO: Perry Mehta Mehta also Bonding firms are more closely Founded: 1994 routed all prof- inspecting succession plans, Employees: 80 its back into the depth of management and compe- Revenue: $16.2 million in 2009, company, forgo- tencies, he said. Mehta www.theculturalconcierge.org with $25 million projected for ing any person- “They look at a whole bunch of 248.766.5599 [email protected] 2010. al rewards, to prove his compa- issues now beyond just your liq- Problem to be solved: Fu- ny’s commitment to expansion. uidity,” he said. “They want to tureNet’s growth began to slow in Bonding also limited Fu- know your plan and dig down to 2005. The company had landed tureNet’s expansion. your second-layer management.” several construction projects The insurer was concerned Chen said to hire second-layer with local operations of the Army, about FutureNet’s ability to man- management personnel with ex- Navy and the Department of age projects on the East Coast and pertise in expansions. An experi- Defense, nearly exhausting all of in the South without satellite of- enced team will not only help the available projects in the area fices, Mehta said. manage projects, but will also without diversifying into other “We really concentrated on the give you some peace of mind. Self-Employed? markets. particulars of each project,” he Some construction projects run So the company began an ambi- said. “Our performance had to be for many years, so a succession tious expansion, securing con- absolutely spotless; we couldn’t plan can show a bonding firm that Affordable Insurance tracts with military branches in afford less than grade-A.” the company would be in good Pennsylvania, Florida and Alaba- FutureNet was cleared for only hands after the original owner is ma. a $200,000 bond per project in 2005. gone, he said. “The kind of spending in Michi- Now, the company can bid on pro- Finding a bonding firm that op- Life gan wasn’t good enough to remain jects of up to $25 million. erates in the area that you’re only focused here,” said Mehta. Risks and considerations: Like looking to enter also helps make Health “It only kept us in survival the bankers, Mehta worried bonding more attainable, he said. mode.” whether his team could manage So can a joint venture with a local Retirement But by 2008, FutureNet’s banks, projects from its Detroit office. construction company. Comerica Bank and National City, “There’s a whole lot of risk “They will know the contractor Long-Term Care had instituted a credit freeze and managing a project 500 miles market in the area and (it will) were apprehensive about low- away from where we are,” he provide instant confidence to the margin government contracts, said. “It was hard to make that (bonding) firm.” (800) 987-0290 Mehta said. leap outside of our comfort zone Another way to boost confi- And with the commercial real and maintain the nuts and bolts of dence and maintain liquidity is to estate crisis, its commercial prop- every project.” hire an accounting firm to exam- erty insurer, CNA Financial Corp., FutureNet has since opened ine or manage your balance sheet, Zayti Agency limited bond underwriting for satellite offices in Washington, he said. IIS000320 new projects. D.C.; Huntsville, Ala.; and New “Having an accounting firm Solution: “We had to work dili- Orleans. able to demonstrate your stability Call your local Insphere office for a FREE quote today! gently to improve our balance To fund the growth, Mehta sank in a face-to-face meeting with a sheet,” Mehta said. “We had to de- his own money into the projects. bonding company is invaluable,” velop relationships with the “I invested everything I had into he said. bankers and educate them on why the company,” he said. “If things — Dustin Walsh If your second-stage company has recently made a tough business decision, contact Michelle Darwish, entre- preneurship editor at Crain’s Detroit Business, at [email protected].

Chrysler Museum gears up for fundraising gala BY SHERRI WELCH some significant contributions,” double that number … in a matter CRAIN’S DETROIT BUSINESS he said, declining to say how much of a few years,” Fountain said. the foundation has raised to date. “We think that one of the things The Walter P. Chrysler Museum The money raised will build on the Walter P. Chrysler Legacy Foundation is in the midst of a cam- the museum’s earned revenue and Gala on July 24 will (do is) raise paign to raise $10 million or more to fund the installation of state-of- the museum’s profile.” support operating and capital im- the-art, interactive technologies at The inaugural gala will honor provement funds for the now-inde- the museum, Fountain said. four automotive and entertainment pendent Walter P. Chrysler Museum. Located on the Chrysler Group icons: former Chrysler Chairman The foundation plans to take the L.L.C. headquarters complex in Lee Iacocca; comedian and car col- campaign public at its first major Auburn Hills, the museum gained lector Jay Leno, who will also do a fundraiser, the Walter P. Chrysler independent nonprofit status in performance at the event; Nascar Legacy Gala, on July 24. June 2008, retroactive to February champion Richard Petty; and the “We’re in discussions with a 2008. Before that, it operated as a late former Chrysler Design Chief number of potential major donors part of Chrysler. Virgil Exner, who was responsible … some former Chrysler executives The museum’s budget is $2.5 for Chrysler’s design in the 1950s. … who are excited about what we’re million to $3 million this year, Exner will be represented by his trying to do with the museum,” said with about nine employees and son Virgil Exner Jr. W. Frank Fountain, chairman of some volunteers, Fountain said. For more information on the the foundation, the governing body About 50,000 visitors a year have gala, visit www.wpchryslermuse for the museum. come through the museum since it um.org. “Between now and July 24, we opened 10 years ago. Sherri Welch: (313) 446-1694, will be working hard … to finalize “We would like to more than [email protected] DBpageAD.qxd 5/4/2010 10:03 AM Page 1 20100524-NEWS--0006-NAT-CCI-CD_-- 5/21/2010 2:44 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS May 24, 2010 $1.7M in tax credits expected to bring up to 211 jobs

BY AMY LANE plant. New Michigan projects cleared credit and up to 125 jobs over five The project is expected to create CAPITOL CORRESPONDENT The board approved Chrysler’s for MEGA assistance include: years, the memo said. The city of 46 jobs over five years. request to amend the minimum re- ■ A $368,358 tax credit for De- Detroit expects to offer property ■ A $766,068 tax credit on invest- Three companies bringing some tained jobs at Sterling Heights troit snack food maker Grandpapa’s tax abatements with an estimated ment of up to $14.6 million by $23.9 million in investment and up from 3,000 to 2,500, and the state as Inc. for an approximate $4.1 mil- value of $347,000 in support of the Auburn Hills-based TK Holdings to 211 new jobs to Southeast Michi- a result is lowering the amount of lion expansion that could create project, according to the state doc- Inc., involving a new crash simula- gan were cleared for more than the tax credit the company can up to 125 jobs in the city. ument. tion sled. The sled would allow the $1.7 million in collective state tax claim. Grandpapa’s plans to retain its ■ A $586,814 tax credit for an in- company, a subsidiary of Japanese credits May 18. Also approved was an extension, current location for some products vestment of some $5.2 million by auto safety restraint equipment In addition, the board of the from March 31 to Sept. 30, in the and purchase and renovate a Proto Manufacturing Inc. in Ypsilan- manufacturer Takata Corp., to con- Michigan Economic Growth Authority anniversary date for tax credits 130,000-square-foot Detroit build- ti, to relocate and expand its opera- duct improved automotive crash approved amendments to some tied to two other Chrysler plants ing to expand through increased tions into a 18,800-square-foot loca- simulations, and the project is ex- previously granted tax credit where production is expected to contracts, according to a briefing tion in Taylor. pected to create up to 40 jobs over agreements, including a 500-per- begin this summer, allowing the memo prepared for the MEGA Proto is involved in the develop- five years. son reduction in the number of company more time to make the board. ment and application of evaluation The city of Auburn Hills expects jobs that Chrysler L.L.C. must retain investment required by the MEGA The company plans to create up technology for customers in a vari- to consider an estimated $515,000 at its Sterling Heights assembly agreement. to 73 jobs in the first year of the tax ety of industries. in property tax abatements, and the Michigan Economic Development Corp. is recommending a $116,000 state education tax abatement on real property investment. In other action, the board ap- proved a technical amendment to a multi-site MEGA agreement for Ford Motor Co., removing two plants from that agreement which already were covered in a separate Ford MEGA agreement. Also approved was an extension of the first year of the MEGA agreement for Reino Linen Service Inc. in Brownstown Township, and the specification of Canton Town- ship as the location of the Michigan Institute of Aeronautics Inc., in the institute’s MEGA agreement. Amy Lane: (517) 371-5355, [email protected]

“Our employees really took to the concept that they could lower their copays and deductibles by leading healthier lives.” BANKRUPTCIES Maureen Sisco The following businesses filed for Human Resource Director Chapter 7 or 11 protection in U.S. Nino Salvaggio International Marketplace Bankruptcy Court in Detroit May 14- 20. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. Oakland Hills Land Development L.L.C., 30800 Van Dyke, Warren, volun- tary Chapter 11. Assets: $3,560,000; lia- bilities: $3,944,211. JPC Fitness Inc., 9101 Allen Road, Allen Park, voluntary Chapter 7. As- sets and liabilities not available. Can changing your insurance plan help change CPK III Inc., 45389 Diamond Pond, Ma- comb Township, voluntary Chapter 7. the way your employees take care of themselves? Assets: $101,000; liabilities: $460,911. CPK IV Inc., 2765 W. Lake Drive, Kim- ball Township, voluntary Chapter 7. It did for Nino Salvaggio. Assets: $143,629; liabilities: $208,074. — Compiled by Brett Callwood When it was introduced in 2006, Healthy Blue LivingSM was the fi rst plan that rewarded employees for making healthier choices. Today, over 100,000 Healthy Blue LivingSM members have lowered their insurance costs by improving their health. And that’s great news for businesses like Nino Salvaggio International Marketplace in Troy. CRAIN’S SEEKS NOMINEES FOR WOMEN TO WATCH “It’s been an amazing plan for us,” says Maureen Sisco, Human Resource Director at Nino Do you know a woman who is Salvaggio. “Our employees really took to the concept that they could lower their copays poised to make a and deductibles by leading healthier lives. On the business side, we have seen employee difference in her company or absenteeism drop, productivity go up and long-term health costs that are more manageable.” industry in the next year? Or one who Find out how Healthy Blue LivingSM can transform the way your business looks at health had an innovative coverage. Visit MiBCN.com/HealthyBlueLiving and learn more today. idea or developed an innovative practice? If so, she could be a candidate for Crain’s Detroit Business’ “Women to Watch,” which will be published Sept. 6. We’re looking for businesswomen of accomplishment at all career Want more great ideas for healthier living? stages. Nominations should focus Join the conversation at aHealthierMichigan.org. Leading Michigan to a healthier future.SM on a specific current activity, rather than career accomplishment over an extended period of time. Visit Blue Care Network of Michigan is a nonprofit corporation and www.crainsdetroit.com/nominate independent licensee of the Blue Cross and Blue Shield Association. for the online nomination form. The deadline is June 7. 20100524-NEWS--0007-NAT-CCI-CD_-- 5/21/2010 2:37 PM Page 1

May 24, 2010 CRAIN’S DETROIT BUSINESS Page 7

Kwame’s woes may hurt Kilpatrick, Where can you go for an Andiamo but challengers not without hurdles quality lunch priced under $10?

BY NANCY KAFFER ruption probe that reportedly has Brown. CRAIN’S DETROIT BUSINESS focused on Kwame Kilpatrick and Broad said he, too, plans to raise Spinach & Cheese Ravioli his father, Cheeks Kilpatrick’s ex- about $500,000. There’s no shortage of candi- husband Bernard Kilpatrick. “I’m going to focus on Downriv- dates in the 13th Congressional “They’re wrapping up some of er and Detroit and the Grosse Portabella Mushroom “Burger” District Democratic primary. this stuff with Sam Riddle (who re- Pointes, so I need a very targeted Six-term incumbent Carolyn cently pleaded guilty to corrup- effort in those three areas,” he Italian Sausage Ragu Cheeks Kilpatrick has suffered tion) and (former state representa- said. from the legal tive) Mary Waters (under He’s hopeful that his work with woes of her son, indictment for corruption),” he Crime Stoppers and his private- Chicken & Wild Berry Salad former Detroit said. “If they have anything on the sector track record will allow him Mayor Kwame former mayor or his father … she to quickly build name recognition. Roasted Vegetable Ravioli Kilpatrick, who has to really campaign hard. This “I’m going to campaign on ‘More stepped down in can hurt her, and people have this jobs, less crime,’ and I’ve been in 2008 after admit- thing these days, ‘throw the bums the trenches on both of those,” he Chicken & Pesto Pasta ting he’d lied out.’ And she’s a big target. She said. about an affair can lose.” Before his involvement with Chicken & Spring Vegetable Risotto while under For a little-known candidate like Crime Stoppers, Broad ran The oath during a Broad, Brown, Hume or Plummer Broad Group, including Broad Rack whistle-blower Kilpatrick to take the nomination would re- Structures, which made storage sys- Andiamo Chopped Salad lawsuit, making a deal to settle the quire a significant financial in- tems for assembly plants, and steel suit for $8.4 million after the plain- vestment, Ballenger said. erector Broad, Vogt and Conant. At Antipasti Style Salad tiffs’ attorney obtained incrimi- “You’ve either got to get your its peak, the company reported nating text messages. personal name ID up to where peo- $80 million a year in sales. “I think she’s in terrible trouble. ple think, ‘Oh, John Broad, the guy Broad dissolved the company in Pan Seared Beef Tenderloin Tips She barely won two years ago, and with Crime Stoppers’ and they 2001 and filed for Chapter 7 bank- it’s only gotten worse since then vote for him, or forget it. His name ruptcy protection later that year. for her son. Since then, he’s been is going to mean nothing if they “My business was an auto sup- forced to resign, and gone to don’t know anything about it,” plier, and my businesses, after 33 prison, and may go to prison Ballenger said. years, ended up having to be again,” said Bill Ballenger, editor “He (or any other unknown can- closed,” he said. “Most of the busi- of the newsletter Inside Michigan didate) probably needs a couple of nesses were liquidated and one Politics. million dollars to get his name went into bankruptcy. All of the Andiamo! The answer is a no-brainer with the “There’s been a relentless volley recognition up, since he’s starting project suppliers were paid, and “Perfect 10” menu—10 Lunch Entrées Under $10. of opprobrium on his head.” from ground zero. If he’s known in some people who were not project But there’s a long road ahead for certain circles, those circles are suppliers were not paid.” (Available Monday – Friday until 4pm at all locations) the five challengers hoping to take going to have to start raising mon- Hume, proprietor of the Detroit the seat. ey or giving it to him or both.” Boat Works and The Goat Yard, said andiamoitalia.com In the August Democratic pri- Clarke, on the other hand, has a he hopes to raise “a couple of thou- mary, Kilpatrick will face state pretty good shot, Ballenger said. sand dollars” by returning emp- Sen. Hansen Clarke, D-Detroit; “The question is: Is Kilpatrick ties, something he’s calling the Crime Stoppers of Michigan founder so tainted by her son’s reputation “can-paign fund.” John Broad; and vulnerability that anyone “That way you’re not beholden Vincent Brown with some credibility and name to anyone,” he said. of Garden City; recognition could beat her? The Hume ran against the late De- Our Happy Hour Christian Televi- odds probably favor that at this troit Mayor Coleman Young sion Network point,” Ballenger said. throughout the 1980s and became IS CHEAPER THAN THERAPY! founder Glenn Clarke is strong campaigner, known for flying a “Retire Young” Plummer; and Mongo said, and could beat Kil- banner from his boat as he sailed Detroit activist patrick in key parts of the district. up and down the Detroit River, and frequent In 2008, Kilpatrick faced a tough part of an effort to recall Young. MONDAY-FRIDAY | 3-6PM candidate primary against Waters and state Hume also has run for Detroit City Stephen Hume. AVAILABLE AT ALL 11 LOCATIONS Sen. Martha Scott, D-Highland clerk, Wayne County clerk and the “Carolyn is a Clarke Park, winning the nomination by a Legislature. He challenged Kil- hell of a campaigner,” said Adolph narrow margin. patrick in 1996, winning roughly Mongo, a political consultant who An August 2009 poll by Lansing- 8,000 votes. $5 SIGNATURE MARTINIS splits his time between Detroit and based Denno Noor L.L.C. found that Hume, who said he’s a political Washington, D.C. “And she under- just 27 percent of 13th District con- $5 SIGNATURE WINES independent who favors small gov- stands that as this Kwame Kil- stituents surveyed would re-elect ernment and equal taxation laws $5 SIGNATURE APPETIZERS patrick fiasco keeps dragging on, it Kilpatrick, and only 37 percent of for businesses, nonprofit entities hurts her.” respondents rated her perfor- The former mayor served 99 mance highly. and individuals, said his slogan is days in jail and has since moved to Clarke said he plans to raise “Stop the thievin’, vote for Texas but is still a fixture of De- about $500,000. Stephen, lower the boom, vote for troit headlines because of an ongo- “I always campaign hard,” said Hume.” ing restitution hearing in which a Clarke, who unsuccessfully ran Plummer founded the Christian Wayne County Circuit Court judge against Kwame Kilpatrick in the Television Network in 1982, ac- found that the ex-mayor deliber- 2005 race for mayor. cording to his website, and has ately concealed assets from the “I had to defeat a long-term in- built and expanded three televi- court and hasn’t shown good faith cumbent to become state senator, sion stations. According to the in paying the $1 million he owes and I had to go up against the con- site, CTN is a 24-hour satellite net- the city. gresswoman and her son, who work that is not currently broad- He’s due in court Tuesday to be backed the incumbent state legis- casting by satellite as it switches sentenced. lator in 2006 to split up the vote. to a digital format. “Now we’ll see what happens We’ve stepped up our fundraising, Plummer’s CTN filed for Chap- with this thing on Tuesday with because we’re going to be going na- ter 11 bankruptcy protection in the former mayor,” Mongo said. tional, as well, and that’s how 2004, according to Crain’s “If he goes to jail, and I think that’s we’re able to do it.” archives. where the judge is leaning toward, Clarke said that if he’s elected, Kilpatrick filed a personal Chap- it’s going to be a blow to her.” he’ll focus on issues that include ter 13 bankruptcy suit in 1991, ac- Once a vociferous defender of creating regional transportation, cording to court records. her son, Kilpatrick has been quiet freeing up funds for small-busi- The winner of the Aug. 3 prima- in recent months — a smart move, ness lending and improving school ry will face lone Republican candi- Ballenger said. performance. date John Hauler in the November But there’s another concern for Plummer didn’t return calls or general election. andiamoitalia.com Kilpatrick, Mongo said — the out- an e-mail seeking comment; there Nancy Kaffer: (313) 446-0412, come of a long-ranging federal cor- is no publicly listed number for [email protected] 20100524-NEWS--0008-NAT-CCI-CD_-- 5/21/2010 5:50 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS May 24, 2010 OPINION LETTERS Not the right time Market comments ‘inaccurate’ Editor: troit has ballooned from 80 in 2003 Crain’s Detroit Business This letter is in response to Rus- to nearly 1,400 this year. welcomes letters to the editor. sell Zahodnik’s letter of May 10 Eastern Market Corp. continues All letters will be considered for (Urban farming unlikely to work in publication, provided they are to explore ways to increase the to seek tax for DIA Detroit) in response to the Other signed and do not defame supply of good food to neighbor- Voices, “Urban farming should individuals or organizations. hoods underserved by national he economy hasn’t been kind to regional arts and cul- take root here,” that appeared on Letters may be edited for length grocery store chains both in De- April 19. On behalf of Eastern Mar- and clarity. troit and throughout the metro tural organizations. ket Corp., I would like to correct area. Write: Editor, Crain’s Detroit T But the Detroit Institute of Arts plans to seek a region- three factually inaccurate state- Since the economic downturn of Business, 1155 Gratiot Ave., al property tax millage may not be the right answer. (See story, ments in his letter: Detroit, MI 48207-2997. 2008, the fastest growth in food “Eastern Market offers a fabu- stamp use has occurred not in Page 30.) The timing isn’t right and the cause is too narrow. E-mail: [email protected] A precedent — voter approval of 0.1-mill tax in 2008 to sup- lous selection of fruits, vegetables, Wayne County but in the sur- and produce, yet few Detroiters pa- port the Detroit Zoo — came before the financial meltdown. rounding “wealthier” counties. At tronize same. Why?” Eastern Mar- fruits and vegetables from vendors the present time, more than 40 mil- The zoo also draws a larger — and demographically broader — ket has determined through cus- at the market. lion U.S. residents depend on food attendance base. tomer counts and surveys that Customers come to one of two lo- stamps to put food on their tables. A healthy DIA is important to the entire region, and a about 51 percent of our customers cations, swipe their card and ex- Mr. Zahodnik is correct that strong cultural scene is critical to the region’s ability to attract come from the city of Detroit. As change the dollars on their cards “too many Detroit residents re- many as 40,000 people visit the for Eastern Market Bridge Card to- ceive food stamps,” along with too private sector investment and talent. kens. More than 80 farmers, pro- market each Saturday. The diver- many people from every jurisdic- It may be time to start planning again for a tax proposal duce resellers and specialty food sity of our customers — young and tion in Michigan, the Midwest, producers at the market partici- that could be on a ballot in 2011 or even 2012. old, rich and poor, black and and across the United States. pate in the program. Most of the Voters in the tri-county region twice defeated regional arts white, is what makes Eastern Mar- A stronger economy is needed to remaining vendors are ineligible tax proposals, in 2000 and 20002, but only by about 1,000 votes ket a regional gem. reduce food stamp use, and a ma- because they sell nonfood items Second, the letter was wrong in jor rework of national food poli- the first time around. such as plants and flowers. Since stating, “Private farmers do not cies is desperately needed to en- Since then, the Cultural Alliance of Southeastern Michigan its inception, more than $250,000 accept Detroit’s main currency — courage healthier eating and has passed through the program. has grown to more than 100 members; the alliance has helped food stamps.” provide greater access to fresh Third, the letter states, “Today’s members save money through collaborations and increased In July 2007, Eastern Market food by people of all incomes. Detroit residents have absolutely revenue through marketing and audience development. Corp., the nonprofit that manages Randall Fogelman Eastern Market under a manage- no motivation to labor in a gar- Vice President of Business Development The arts community needs a logical distribution formula ment and promotion agreement den.” Again the facts paint a differ- Eastern Market Corp. for a regional tax and strong, visible leadership to help push a with the city of Detroit, began a ent story. According to the Garden Detroit plan from the grassroots up. program to allow those with Resource Collaborative, the num- Bridge Cards to purchase fresh ber of community gardens in De- See Letters, Page 9 Time for bold budget ideas If you thought the state budget was a mess last year, stay tuned. Michigan has run out of sleight-of-hand tricks that used fed- TALK ON THE WEB eral stimulus dollars to disguise how truly dire the state’s fi- nances are. And at the local level, we can expect that a slew of From www.crainsdetroit.com “emergency financial managers” will be needed to help manage prosperity of the city. The city refus- Re: Hob Nobble Gobble moving Reader responses to stories and This is a bad decision for several es to sell the land to solve its fiscal the crisis in cities and school systems throughout the state. blogs that appeared on Crain’s That’s why the advice of former Indianapolis Mayor reasons: The event traditionally problems. Web site. Comments may be Never Say Die Stephen Goldsmith is so timely. In three forums last week, in- has begun the holiday weekend, and many families stay downtown edited for length and clarity. cluding one sponsored by Crain’s, Goldsmith said govern- and go to the parade itself on Thurs- Re: Align spending with tax collection ments can run more effectively if they “liberate” public em- day morning. I also doubt this deci- Re: DIA to pursue tax millage proposal Redistribution of wealth via a ployees in ways that would allow them to share in savings for sion will benefit the hotels. tax system set up with credits and No way. If they can’t make it William J incentives to penalize achievers providing services more efficiently than a private-sector con- with the revenue they have, then and job providers and reward “the tractor could. do like every other business has What an excellent decision to poor” does not work. It starts to fall As mayor of Indianapolis a decade ago, his approach had to do — either scale down, or leave the eve of Thanksgiving. apart when they run out of other peo- raise your admission price. helped that city save millions. He again can put his theories This is one of the biggest bar ple’s money to spend. Ken Barnes into practice; he starts June 1 as deputy mayor to New York nights of the year, when those who Bill Grubb City’s Michael Bloomberg. aren’t at home getting ready for Re: Royal Oak’s DDA rule in dispute Michigan needs bold ideas — at the state and local level. A the family coming over are out cel- Unless state spending is brought ebrating the start of the holiday The city is in a desperate (and in line with collections, the final partnership that involves public-sector union members might season. This Saturday before worsening) cash-poor situation, outcome — sooner rather than later — have the best chance to make a difference. should prove to be very popular. and holding on to three golf prop- is very clear. The question is: Who will lead that charge? Ian Leuvtenhal erties which are not critical to the JT Pedersen KEITH CRAIN: Let Moroun make some more money There is a controversy over to justify investing pub- And they seem to think there is much that will make them his Detroit train station and fix up whether or not to build a second lic money. making a profit on such happy. that horrid eyesore. bridge between Detroit and Wind- I’ve heard from both a bridge is wrong. Matty Moroun is not always a Matty Moroun is a feisty old guy sor and whether Matty Moroun parties on this issue. The Canadians want lovable fellow, although I must ad- who is a self-made gazillionare. He should be allowed to add a second For some reason I still this new bridge so mit I have always found him to be plays hardball all the time and, I’m span to his Ambassador Bridge. can’t figure out, the much they are willing very cordial and friendly. On the told, doesn’t like to lose. But he’s I say: Let the guy spend his own Michigan and Canadian increase their share of other hand, I’ve never done busi- owned that bridge for a long time, money and expand his bridge. governments don’t want investment by more ness with him. I understand he’s and I think we should let him With all the troubles facing our this guy to spend his than $500 million that one very tough businessman. spend some of his millions to ex- state from budget and manpower own money to expand would be paid back by Sometimes to excess. But heck, if pand it. shortages, we would be wise to just and operate his bridge future tolls. Moroun he makes a few more million, If traffic goes up substantially, shelve the government plans and at a profit. They seem to has had a tough rela- maybe he’ll become one of the we can always build another let private enterprise continue to believe an international tionship with the Cana- great philanthropists of our com- bridge. Meanwhile, let’s spend our invest its money. Traffic is down bridge should be owned dians for decades. It munity. You never know. time on the other challenges facing from a decade ago; we can wait to and operated by a government bu- started with trucking and it now With new profits from an expan- the state of Michigan. see if the traffic increases enough reaucracy, not private enterprise. includes bridges. I don’t expect sion, maybe Moroun would restore Let Matty expand his bridge. 20100524-NEWS--0008,0009-NAT-CCI-CD_-- 5/20/2010 5:16 PM Page 2

May 24, 2010 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: ‘Eds and meds’ may build stronger Detroit Last week, we published our an- companies. But health L. Brooks Patterson, lege for Creative Studies, the De- strong core from which to build. nual Private 200 list — the largest care executives in who noticed years ago troit Medical Center and Henry I suspect we’ll hear more about privately held companies in South- metro Detroit have long that Beaumont Hospi- Ford Hospital. that at the Detroit Regional Cham- east Michigan ranked by revenue. complained they get tals was his county’s On our Feb. 1 list of major em- ber’s Mackinac Policy Conference Leading the pack — at least for short shrift. second-largest employ- ployers in the city, the two hospi- when Schlichting, DMC CEO Mike now — are General Motors Co. and Henry Ford Health er. He created a “Med- tal systems and Wayne State are in Duggan and two other panelists Chrysler Group L.L.C. System CEO Nancy ical Mainstreet” initia- the top six, with about 16,000 em- talk about the health care indus- Should those automakers go Schlichting has made tive to build on the ployees in the city as of January of try’s opportunities for the regional public, Penske Corp. — at $16 bil- that point publicly, county’s health care as- last year. Throw in St. John Health economy. I get better than a front- lion in 2009 revenue — would re- wondering why hospital sets to attract every- System, and that number grows by row seat; I will moderate what I turn to the No. 1 status it held on execs were never invit- thing from patients to almost 4,000 workers. think will be a lively discussion. this list for many years. ed to join other CEOs on medical device compa- The Midtown institutions — No. 1, at least, unless you figure the board of Detroit Re- nies to the county. And, along with the cultural jewels like Mary Kramer is publisher of in the nonprofit Blue Cross Blue naissance Inc., which by the way, Beaumont the Detroit Institute of Arts, Crain's Detroit Business. Catch her Shield of Michigan. At more than last year morphed into the surpassed GM in numbers of em- Charles H. Wright African Ameri- take on business news at 6:10 a.m. $20 billion in annual revenue, Blue statewide Business Leaders for ployees in Oakland last year. can Museum, Detroit Science Cen- Mondays on the Paul W. Smith show Cross would top even Chrysler this Michigan. In Detroit, the city’s future may ter and Orchestra Hall — are shap- on WJR AM 760 and in her blog at year. The power of health care wasn’t rest with its “eds and meds” — ing a kind of village within the www.crainsdetroit.com/kramer. As a rule, we distinguish be- lost on Oakland County Executive Wayne State University, the Col- larger city that can become a E-mail her at [email protected]. tween nonprofits and for-profit

LETTERS CONTINUED ■ From Page 8 Keep state electricity sales competitive Editor: The May 17 article “CMS Energy on sales rebound” lays out the company’s case for building a mas- sive new plant without open com- petitive bidding, while glossing over the huge rate hikes that will ensue. This would be an economic disaster for Michigan, where the highest electric rates in the Mid- west are already a major disincen- tive for manufacturers during the current economic rebound. Since 2008, when the Michigan Legislature passed the electric re- monopolization law that hand- cuffed the Michigan Public Service Commission, Consumers Energy has raised rates on all classes of customers at a time when rates are decreasing in other Midwest states. In fact, manufacturing rates in Michigan today are 25 per- cent higher than in neighboring Indiana. The new law limited com- petitors to just 10 percent of Con- sumers Energy and DTE electric loads — and that amount was grabbed quickly, with long wait- ing lists of companies and cities that wanted to escape sky-high rates. Consumers Energy and DTE are now able to raise rates without the risk of competition. That’s why the Customer Choice Coalition hails the recent biparti- san introduction of bills in the House and Senate to raise the amount of electric competition to 25 percent. House Bill 6127 and Senate Bill 1317 were introduced to once again offer customers the op- portunity to save on energy costs by choosing their electric supplier. With excess electricity all around the Midwest, it makes no sense to force Michigan electric customers to continue to subsidize DTE’s and Consumers’ plans to build new electric plants that cost far more than is available from other providers. Should the Michigan Public Ser- vice Commission determine a new electric plant is needed, competi- tive bids should be accepted to de- cide who will provide the needed power. No-bid power plants are job losers for Michigan. Barry Cargill Executive Director Customer Choice Coalition Lansing DBpageAD.qxd 5/19/2010 3:44 PM Page 1

The dual MBA/MSF degree is two degrees in one. At a cost and credit level not much more than a single degree, you’ll expand your business skills with both a prestigious MBA and a Master of Science in Finance. 20100524-NEWS--0011-NAT-CCI-CD_-- 5/20/2010 4:19 PM Page 1

May 24, 2010 CRAIN’S DETROIT BUSINESS Page 11 Extra FIXING FINANCING A panel of experts discusses what Michigan companies need to grow, Finance Pages 18, 19

WINNER: NONPROFIT Anne Beck Vice president for administration and finance, College for Creative Studies Spearheaded creation of a complex financing package to convert the former General Motors Argonaut Building into the A. Alfred Taubman Center for Design Education. Page 12 Spotlight WINNER: GOVERNMENT Laurie Van Pelt Director of management and budget, Oakland County Led the county to adopt its first three-year rolling budget last fall. Page 12 on CFOs

WINNER: HEALTH CARE he CFO of an organization is often tributions to the community. Dave Morlock the overlooked member of the A panel of four judges with hands- Senior associate director and CFO, T senior management on financial expertise University of Michigan Health System team who must find a selected the winners in In charge of developing a plan and negotiating the way to fund the big idea the 4-year-old awards deal when the University of Michigan had the chance to buy the former Pfizer campus in Ann Arbor. Page 13 or lead a company’s program. efforts to streamline Winners and final- spending. He or she not ists are to be honored only gets a rein on costs June 16 at The Henry WINNER: PUBLIC but otherwise helps an Ford. Presenting spon- Roger Cregg organization reinvent sor is Marsh Inc. Other itself. sponsors and partners Executive vice president and CFO, PulteGroup Inc. This year’s CFO win- include Ogletree Was at the center of Pulte’s $3.1 billion takeover of ners and finalists have Deakins, Rehmann, its competitor Centex Homes Inc. last year. Page 13 dealt with continued American Society of budget pressures while contributing to Employers, Arzika, Charter One, Walsh strategic planning and organizational College, Financial Executives International restructuring in innovative ways. The and the Michigan Association of Certified WINNER: PRIVATE, OVER $250 MILLION honorees were chosen based on their Public Accountants. financial and corporate management Visit www.crainsdetroit.com/events Shankar Kiru problem-solving savvy and their con- to purchase tickets. CFO, Diversified Machine Inc. His implementation of an aggressive benchmarking strategy has led Diversified to new contracts. Page 14 FINALISTS

Nonprofit Private, over $250 million Private, Karen Belans Daniel Muldowney $51 million-$250 million WINNER: PRIVATE, $51 MILLION-$250 MILLION CFO, Detroit Regional Senior vice president Greg Gallagher Chamber, Page 12 and CFO, H.W. Kaufman CFO, Awrey Bakeries Richard Widgren Financial Group, Page 14 L.L.C., Page 15 Vice president, treasurer and CFO, Urban Science Public Put in place a cash-management process that saved Andy Wozniacki Private, under $50 million 60 employees’ jobs and returned vendors to normal Matthew Simoncini CFO, Roush Enterprises cycles. The company ended 2009 with an increase in Inc., Page 14 John Cavanaugh sales. Page 15 Executive vice president and CFO, Lear Corp., CFO, Automotive Credit Page 13 Corp., Page 16 WINNER: PRIVATE, UNDER $50 MILLION Mike Twarozynski CFO, Plex Systems Inc. JUDGES Oversaw the company changing from up-front license fees to subscription payments for its software service, Stephanie Bergeron, Jeff Blackman, CFO, Bob Naftaly, chairman Mike Plotzke, CFO, opening new growth areas. Page 16 president and CEO, ForeSee Results of the State Tax Plastipak Holdings Inc. Walsh College Commission 20100524-NEWS--0012-NAT-CCI-CD_-- 5/20/2010 4:20 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS May 24, 2010 Finance Extra: CFO Awards NONPROFIT Midtown into a classroom, resi- Beck spearheaded creation of a Beck also secured $10 million in neering center — the source of Winner dence hall and charter school build- complex financing package, which bond financing underwritten by GM’s classic mid-20th century ve- ing for the Col- included $70 million in net project BMO Capital Markets and a $75 mil- hicle designs. Anne Beck lege for Creative financing from investors attracted lion credit facility from Chase to Aside from the achievement of Studies. by a package of tax credits con- fund construction and bridge fi- closing the complex deal, a key of Vice president for administration The plan to structed by Beck’s finance team. nancing. the Argonaut project is what it and finance fund renova- “It was very challenging be- By keeping the project on time means for the future of CCS and College for Creative Studies tions in the cause the package we put together and on budget, CCS has drawn Midtown. Detroit building, now is a combination of federal and down only about $35 million of the “We see ourselves as integral in called the A. Al- state historic tax credits, six feder- credit line. Anne Beck remembers where she fred Taubman Cen- al new market tax credit alloca- When the Taubman Center for a lot of what’s going to be going for- was the day the markets crashed in ter for Design Edu- tions and a brownfield program Design Education opened in 2009 ward,” in Detroit’s revitalization, September 2008. She was signing cation after a credit through the MEDC,” she in the renovated space, it was her- Beck said. “We think of ourselves Beck the closing documents for a financ- $15 million dona- said. “It is very unusual for an or- alded as a new anchor of Midtown. as being an important part of the ing package to fund the $145 million tion by shopping mall mogul and ganization of CCS’ size to be able to The Albert Kahn-designed build- next step and the next phase in De- transformation of the 760,000- philanthropist Al Taubman, was attract this level of tax credit fi- ing was first built in 1936 and was troit.” square-foot Argonaut Building in more than a year in the making. nancing to a project.” GM’s longtime design and engi- — Ryan Beene

uphill battle. “The whole organization has accept- to know how we can work our way out Finalist The venerable institution’s finances ed fiscal responsibility and goals,” she of a difficult situation.” were a mess, and Belans was charged said. “Everyone’s responsible for own- Keeping the budget in the black re- with bringing the chamber back into ing their own budget. I just need to quires aggressive planning. Karen Belans the black. make sure the budgets work.” “We’re doing a lot more financial sce- CFO Fifteen years later, Belans is proud Belans says her motto is simple: “I nario planning to make sure if we have Detroit Regional Chamber to say that the chamber hasn’t had a don’t like surprises. a loss of significant revenue sources we Detroit budget deficit during her tenure, even “I want to know six, seven months have back-up plans,” she said, “and through the state and national econom- into the year when (the department) where we can potentially go in the fu- When Karen Belans joined the Detroit ic turmoil that’s left many nonprofits knows (that there’s a problem),” she ture.” Belans Regional Chamber in 1995, she faced an scrambling for funds. said. “I want to be a partner with them — Nancy Kaffer

GOVERNMENT surer, prosecutor, sheriff, clerk Winner and others about the status of their reorganization plans. Department heads are assigned target budget- Laurie Van Pelt reduction figures, but have incen- Director of management and budget tives to keep funds for future years Oakland County if they beat their cost cuts. Van Pelt said elected officials Laurie Van Pelt helped keep Oak- who exceed necessary cost savings land County’s finances ahead of the for the three-year budget will have curve when regional property val- their funds earmarked to offset fu- ues began plummeting last year. ture revenue declines. Van Pelt, a county employee since Department heads also have had 1978 and director of management a year or two while operating to and budget since look for grant applications or make 2002, led the requests for proposals on privatiz- county to adopt ing services — before the budget its first three- situation becomes critical again. year rolling bud- “It takes a long time to restruc- get last fall, start- ture government, and that’s why ing with this we’re encouraging them to start fiscal year. early,” she said. Made to order If all goes well, The early cutting incentive also she said, the grows the budget fund balance ear- planning will ly in the three-year budget period Van Pelt leave Oakland so that after the draw-down phase with the same budget reserve fund it returns to the $106 million level. Your risk financing program should meet your needs. Perfectly. balance in fiscal 2013 that it had at The plan is not without pitfalls. the end of fiscal 2009 — around $106 Property tax collection accounts million — despite a falloff of nearly for 53 percent of budget revenue, $40 million in property tax revenue and the county’s aggregate taxable over the same period. value fell 3.6 percent in 2009 and an- To make sure it does, Towers Watson goes beyond what most other risk consultants and “I can’t take all the credit. I’m not other 11.75 percent this fiscal year. the goddess of finance,” she said. Van Pelt said that beats the 13 per- brokers can offer. We combine expert brokerage with industry-leading actuarial, financial “We have a great team here, and cent projected during budget plan- and risk management capabilities. We can help you understand and manage risk in the (the financial plan) couldn’t be car- ning, but a slew of pending valua- overall context of your business — so you get a custom-made program. Every time. ried out without (County Executive tion appeals to the Michigan Tax L.) Brooks Patterson and the county Tribunal will probably push that fig- departmental elected officials, who ure well above 12 percent. have to be willing to work with the The county took an $8 million Towers Watson. A new global company with a singular focus on our clients. county and adopt the sustainable write-down based on tribunal ap- practices we’re developing.” peal results last year, Van Pelt said. After voluntary retirement in- The county in 2007 also issued centives and some attrition, the $557 million in contractually guar- county this year has 4,307 full-time anteed government trust certifi- Benefits and part-time employees, compared cates to fund its retiree health care Risk and Financial Services with 4,573 in fiscal 2007. Van Pelt obligations. Those are paid off Talent and Rewards said the county has a hiring freeze through a 20-year, $48.5 million an- over most departments and expects nual debt service levy but save an towerswatson.com to continue shedding jobs, targeting estimated $11.7 million per year a headcount of 4,229 by 2012. over what the county would have The county maintains a budget paid to fund those obligations out of task force that meets regularly and its own budget. consults with Patterson, the trea- — Chad Halcom 20100524-NEWS--0013-NAT-CCI-CD_-- 5/20/2010 4:21 PM Page 1

May 24, 2010 CRAIN’S DETROIT BUSINESS Page 13 Finance Extra: CFO Awards HEALTH CARE sion to go ahead with the deal was only mean to UM but also to the the Comprehensive Cancer Center’s productivity, which helped the Winner not that difficult. state of Michigan,” said Morlock, development and clinical trial of- health system with a financial “We bought it for a dime on the who oversees a finance depart- fices, the Michigan Institute for Clini- turnaround in 2010. Its operating dollar,” said Morlock of the 174- ment staff of 350. “It was a big deal cal and Health Research and several margin increased to 2.4 percent for Dave Morlock acre site. for Pfizer to other departments have moved the third quarter ending March 31, Senior associate director and CFO UM bought pull out north into the 30-building campus. compared with a 0.6 percent mar- University of Michigan Health System the entire We will of 1,000 peo- After college, Morlock worked gin for the same period in 2009. Ann Arbor site for “ ple.” for two years as a commercial loan The health system’s annual oper- about $54 have 1,000 Now called officer. He joined UM in 1990 and ating revenue for fiscal 2010 will be When the opportunity arose in per square the North Cam- has held several jobs, including fi- about $3 billion. 2008 for the University of Michigan to foot, com- new jobs at pus Research nance director of C.S. Mott Chil- Ⅲ Led the team that sold M-Care buy the recently vacated 2-million- pared with Complex, Mor- dren’s Hospital and Women’s Hospi- HMO to Blue Cross Blue Shield of square-foot former Pfizer campus the esti- that (former lock said more tal. Michigan in 2007. in Ann Arbor, UM Health System mated $400 than 300 UM The UM Health System includes Ⅲ Integrated the hospital and CFO Dave Morlock was put in per square Pfizer) site. employees are three hospitals, 120 outpatient medical school finance depart- charge of developing a plan and ne- foot it would have ” on the campus. clinics, 40 health centers, the med- ments into a single group responsi- gotiating the deal. paid to build new Dave Morlock, Over the ical and nursing schools and a ble for the health system’s finances. “I was appointed by the dean to structures. University of Michigan Health System next 10 years 1,600-physician multispecialty fac- Ⅲ Currently completing an inte- be the lead adviser to put together There were some “we will have ulty group practice. gration of the hospital and profes- the business case on whether to critical considerations to weigh, 1,000 new jobs at that site,” he Some of Morlock’s other accom- sional revenue cycle departments, pursue this or not,” Morlock said. however. added. plishments include: which include billing and collec- After the numbers were “We had to sort through projec- So far this year, UM employees Ⅲ Initiated management strate- tions. crunched, Morlock said the deci- tions of what the project would not from its Institutional Review Board, gies to contain costs and increase — Jay Greene

PUBLIC COMPANIES “It was pretty interesting to see said. “Then the market turned Pulte took on 30-year and 40-year center of Pulte’s $3.1 billion Winner things as a homebuilder, and also down again, and our revenue debt — a good move now that takeover of its competitor Centex from the finance side,” he said. dropped by 80 percent, and our short-term lending rates have in- Homes Inc. last year. “It was an interesting time, but costs had to be reduced by 80 per- creased dramatically since that It was a two-year effort to com- Roger Cregg it’s given me a cent.” time. plete the acquisition, with Cregg Executive vice president and CFO lot of personal Paying attention on the way up “As CFO, Roger has provided in charge of keeping all the execu- PulteGroup Inc. insight, which positioned the company well to the financial capital to support tives up to speed and well-in- Bloomfield Hills is an advan- manage its balance sheet on the Pulte’s growth but has done so formed. tage.” way back down, he said. with a clear understanding that “When you get the call on some- If anyone has a good perspec- Among the Among other crucial moves this is a cyclical industry where a thing like that, you have to be tive on the triggers of the recent lessons he’s Cregg made was to push for long- rock-solid balance sheet must al- ready to spring into action,” Cregg financial meltdown, it’s Roger learned from 14 term debt earlier in the decade ways be maintained,” Chairman, said. “You need estimates, fore- Cregg. years as CFO at when many companies were us- President and CEO Richard casts, cost savings and the oppor- Not only was he CFO of Bloom- Pulte, Cregg ing short-term debt that was Dugas said in a letter sent to tunity to say ‘one plus one is field Hills-based homebuilder Pul- said, is to pay at- cheaper. Crain’s. greater than two.’ ” Cregg teGroup Inc., but he also spent 2009 tention to the cy- Bucking the industry trend, Most recently, Cregg was at the — Daniel Duggan on the board of directors for Comer- cle and adapt as the market goes ica Bank and on the board of the De- up and down. troit branch of the Federal Reserve “Pulte had $2 billion in revenue Bank of Chicago. in 1998, then $15 billion in 2005,” he

around $30 per share. Finalist Now the company’s equity value is more than $3 billion, with stock worth more than $70 per share. Matthew Simoncini Bankruptcy was the last resort Executive vice president and CFO after the company tried to pursue Lear Corp. a variety of other fixes to its debt- Southfield heavy balance sheet, Simoncini said. After working for months to re- In the months before the filing, vamp its debt-heavy capital struc- Lear sought a deal to buy back its ture, Southfield-based Lear Corp. bonds while they were trading at filed for Chapter 11 bankruptcy in 20 cents on the dollar. early July 2009. It sought new equity invest- But four ments domestically and interna- months later, the tionally, Simoncini said. world’s second- But its more than $3 billion in largest supplier debt scared away new potential in- of automotive vestors, as they knew any new seating systems money would be behind that debt emerged with a load, and by May, it was becoming new capital clear that there were no options structure, giving other than bankruptcy. it one of the best “If you turn the clock back, Simoncini balance sheets in there was a lot of distress not only the industry. in the auto industry, which was CFO Matt Simoncini spear- pretty apparent, but the capital Congratulations to one of our alumni, named headed the negotiations that led markets were frozen,” Simoncini a CFO of the Year by Crain’s Detroit Business! to 68 percent of Lear’s lenders and said. bondholders agreeing to a debt- Simoncini said he and the com- Laurie Van Pelt (M.S., Finance ’93) for-equity swap that exchanged pany are proud of the fact that all Oakland County, Michigan about $3.6 billion in debt for near- its suppliers were paid on time, it ly all of the company’s new equity kept its employee pensions intact — before Lear filed for court pro- as well as its UAW collective tection. bargaining agreements — com- The plan expected Lear’s new mon targets to be cut in bankrupt- equity structure to be worth about cies. $1.9 billion with stock prices — Ryan Beene 20100524-NEWS--0014-NAT-CCI-CD_-- 5/20/2010 4:21 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS May 24, 2010 Finance Extra: CFO Awards PRIVATE COMPANIES Over $250 million nancial strategy.” helped lead Diversified’s growth. Winner Kiru landed at Covisint before be- “We make products that go into coming vice president of engineer- vehicles with engineering attribut- ing at Plymouth-based Metaldyne. es, and that makes my experience Shankar Kiru Kiru and three more valuable,” he said. “I can ar- CFO colleagues quit ticulate to our customers that we Diversified Machine Inc. Metaldyne in have the industrial and financial Wixom 2005 to create Di- means to win their business.” versified Machine Kiru’s implementation of an ag- Shankar Kiru’s engineering for- Inc. with invest- gressive benchmarking strategy titude has blended well with his ment from pri- has led Diversified to new con- natural affinity for numbers. vate equity firm tracts — already generating Kiru began his career as a man- The Carlyle Group $100 million in the first quarter of ufacturing engineer for Sand — where the new business wins compared with company ac- Springs, Okla.-based Webco Indus- Kiru $130 million for all of last year. tries before ascending to plant quired assets “We have emerging markets manager as the company faced de- from bankrupt UniBoring Co. Inc. across the world, and we need to clining revenue and liquidity. Since 2005, the company has know if they are doing what we are Kiru’s task was to adopt lean man- grown to more than 1,400 employ- doing for cheaper,” he said. “We do ufacturing operations and expan- ees and acquired seven operations a lot of soul-searching of how we sions, which gave him hands-on across the U.S., Mexico and Spain. can differentiate, and it really experience in working capital re- Diversified Machine generated arms us with knowledge to pro- ductions. $335 million in revenue last year vide a better service to our cus- Working product level numbers, with a projection of $450 million tomers.” Kiru became aware of his ability to this year. Its largest customers are Kiru is working on a company- impact strategy. Ford Motor Co., General Motors Co. wide succession plan and main- “Webco is where I cut my and TRW Automotive Inc. taining the company’s financial teeth,” he said. “Through my ex- Kuri’s understanding of metal- liquidity to expand operations in perience there, I knew I could lurgic processes and the funda- Europe. make a larger contribution on fi- mentals of industry operations has — Dustin Walsh

portunity for him than stress and both based in Farmington Hills Finalist turmoil, though there was been and both acquired through acqui- plenty of the lat- sitions years ago. ter as he had to Muldowney described the recent Daniel Muldowney cut expenses to downturn as “one of the toughest Senior vice president and CFO maintain profit periods in history in the property H.W. Kaufman Financial Group margins. and casualty insurance industry.” Farmington Hills “A downturn But it’s not one without benefits. in the economy “It’s created opportunities for us Daniel Muldowney says that the forces a compa- to make acquisitions, and it has al- recent recession created more op- ny to look at its lowed us to create or grow lines of expense base business. For example, our vacant and adjust it to property product line is doing very Muldowney maintain prof- well for us.” itability,” he said. “You get more In total, Kaufman Financial re- efficient, which is why our organi- ports annual revenue of $875 mil- zation has continued to do well lion; Muldowney supervises a bud- and grow.” get of $48 million and 75 Muldowney is CFO of the hold- employees. ing company that includes Burns & During the last five years of his Wilcox, a major national provider tenure as CFO, the holding compa- Congratulations of property, casualty and specialty ny has been debt-free, and manage- insurance with more than 30,000 ment was prescient enough, he agents nationally. He is also presi- said, to “have gotten out of risky to University of Detroit Mercy alumnus dent of two of Kaufman Financial’s investment classes before the mar- other subsidiaries, U.S.F. Insurance kets froze or dropped.” Co. and Cranbrook Insurance Co., — Tom Henderson Richard Widgren ’66 CFO out military contracts. Finalist Roush reports annual revenue Urban Science of just over $400 million, up from $25 million when Wozniacki joined Andy Wozniacki 19 years ago. CFO “We’re trying Roush Enterprises Inc. to get over the upon recognition Livonia diversification Crain’s Detroit Business hump,” he said. by Roush is known for its automo- “The injection tive racing teams and related ac- tooling business as a CFO of the Year Finalist. tivities, but the company is pri- lends itself to marily an auto supplier. (diversifica- That makes Andy Wozniacki a tion).” veteran at constantly improving One unique We salute your financial leadership and lean operations, keeping an eye on Wozniacki way of diversify- cash flow and fighting the good ing has been supplying restraint commitment to excellence. fight with those he buys from and systems, perfected in passenger sells to. cars and trucks, to makers of “The customer base is always amusement park rides. “That’s be- looking for discounts, and the ven- come a good business for us,” he dor base is always looking for pre- said. payment,” he said. “The auto supply business, now, We want great things for you. Like other auto suppliers, is all about managing cash,” he www.udmercy.edu Roush has been looking to diversi- said. “Because we’ve been able to fy, finding ways to convert tech- do that in a creative way, we’re nologies from autos to medical de- still here.” vices, for example — and seeking — Tom Henderson 20100524-NEWS--0015-NAT-CCI-CD_-- 5/20/2010 4:22 PM Page 1

May 24, 2010 CRAIN’S DETROIT BUSINESS Page 15 Finance Extra: CFO Awards PRIVATE COMPANIES $51 Million to $250 Million

controller at McLouth Steel was a in the schedule for paying suppli- struggle for cash,” he said. moves? McLouth. Winner perfect guide to ers in the area. A cash-management process “It was like deja vu for me,” he deal with the For Urban Science — which was put in place, tracking daily said. complex finan- does data analysis for OEMs, car cash against forecasts. Spending In 1979, McLouth was a sec- Richard Widgren cial issues De- dealers and retailers — a cash cri- controls were imposed and some ondary supplier to companies Vice president, treasurer and CFO troit-based Ur- sis occurred when GM and payments were delayed, such as working with the OEMs, and when Urban Science ban Science Chrysler announced 30- to 60-day the final balloon payment of the automakers declined, so too Detroit faced last year. delays in all payments to suppli- $1.7 million on the acquisition of a did all the other companies down In 2009, as ers. Then the companies filed company. the line. Who would have known that ex- then-Chrysler bankruptcy, making the payment The outcome: 60 employees’ jobs “In that case, I had to take a periences at a steel company in the L.L.C. and then- schedule even worse. were saved and vendors were re- $650 million company and convert late 1970s would help run a high- General Motors “We came back to work after turned to normal cycles. The com- it to a daily cash basis,” Widgren Widgren tech consulting firm in 2009? Corp. were on Christmas and all of a sudden I’m pany ended 2009 with an increase said. “Those skills quickly came Nonetheless, Richard Widgren the brink of filing bankruptcy, the looking at our cash position and it in sales. back to me.” said his experience as corporate companies made a significant shift looked like we were on track to Where did Widgren learn his — Daniel Duggan

Finalist Greg Gallagher A SECOND OPINION SAVED US CFO

Awrey Bakeries L.L.C. Livonia *

Greg Gallagher has played a vital role in the reorganization of Livo-

nia-based Awrey Bakeries L.L.C.

After being named CFO in 2008, Gallagher set out to devel- $ 8,0008 000 op product and customer prof- $ itability state- ments, which re- sulted in the shedding of 300 unprofitable TIMES ARE TOUGH, BUT WE’RE STILL GOING, and a Citizens Bank Second Opinion helped us get there. After Gallagher items at Awrey and sister company Atkins Elegant examining every aspect of our business, a Citizens Banker found ways we could save more money, be more Desserts, resulting in a 20 percent efficient – for our business and personal accounts. reduction of direct labor costs. “Nobody had really gone SKU (stock-keeping unit) by SKU. That Make time to meet with a Citizens Banker. To schedule your Citizens Bank Second Opinion, CALL 800-946-2264 was one of the first things we did … or go online to CITIZENSBANKING.COM/OPINION. we then looked and said, ‘if this is an unprofitable SKU, is there some strategic reason to keep it around?’ ” he said. If there wasn’t, it was out. Cut- ting unprofitable products let Awrey close three outside ware- houses and reduce operating costs by $600,000. Gallagher also initiated a clean- up of the company’s balance sheet, allowing the company to streamline the monthly budget closing process from three weeks to five days. “I streamlined the data flow from the various individuals in my de- partment,” Gallagher said. That also allowed the company to make strategic changes more quickly. The result was a $5.7 million im- provement in earnings before inter- est, taxes, depreciation and amorti- zation over the previous year. The company improved net income by $6 million from 2008 to 2009. Awrey’s 2009 revenue was $78 mil- lion. When Awrey acquired No- blesville-Ind. based Atkins in June 2009, Gallagher applied the same fi- nancial procedures as he did with Awrey, taking Atkins from breakeven to profitable. “We went through this draining the swamp, getting visibility to the numbers, getting to an efficiency level to sustain through the down- turn,” he said. The company, he * Results may vary depending on your business situation. said, also has some $90 million in new potential contracts. — Nathan Skid 20100524-NEWS--0016-NAT-CCI-CD_-- 5/20/2010 4:23 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS May 24, 2010 Finance Extra: CFO Awards PRIVATE COMPANIES Under $50 Million

der Twarozynski’s oversight, the brace the changes happening in we’ve not only survived, we’ve Winner company recently changed from the economy,” he said. Finalist thrived.” up-front license fees to subscrip- The change wasn’t without Cavanaugh’s efforts at secur- tion payments for its software ser- stress. Ceasing multimillion-dol- ing new sources of investment Mike Twarozynski vice. lar up-front licensing fees could John Cavanaugh and credit for CFO The company have made a public company’s bal- CFO the company Plex Systems Inc. “basically ance sheet stutter, Twarozynski Automotive Credit Corp. helped Auto- Auburn Hills changed our said. As a private company, report- Southfield motive Credit business mod- ing $26 million in sales in 2009, grow and in- Before Mike Twarozynski be- el,” he said. Plex was able to weather the tran- John Cavanaugh has been a crease rev- came CFO of Auburn Hills-based Plex’s largest sition out of the public eye, relying key player in the growth of Auto- enue by some Plex Systems Inc., he had a different customer is on a critical mass of customers motive Credit Corp. since his ar- 25 percent be- relationship with the manufactur- Troy-based Inte- and its existing revenue stream to rival in 2005. tween 2008 ing operations management soft- va Products, for- successfully make the change. At that time, the company and 2009. ware company: He was a Plex cus- merly Delphi The change coincided with the Twarozynski was a steady, profitable per- In addition, tomer. Corp.’s interiors development of a new product, Plex Cavanaugh former but without a lot of focus Cavanaugh “I was actually a COO of a soft- unit. Other clients include Detroit- Online, a version of the software on growing. negotiated favorable terms and ware company, but prior to that, I based Renaissance Global Logistics that clients connect to online. Fast-forward five years, and interest rates on new financing went to an automotive supplier to L.L.C., Minneapolis-based Hiawatha “(Subscription payments) pro- Automotive Credit Corp. has last year. do a turnaround,” he said. “As Rubber Co. and Pittsburgh-based vide huge growth opportunity in gross revenue of $25 million. Ca- “In August 2009, I secured a part of that, I brought Plex in. I ALung Technologies Inc. that this is really where the soft- vanaugh partly attributes this was actually their first subscrip- The change was driven, in part, ware industry is moving to, this new $50 million credit facility to the current economic cli- with Wells Fargo Bank,” he tion customer. Being a turn- by the economy, Twarozynski whole software as a service, cloud mate. around, we couldn’t afford to pay said, but it offers the company new computing, paying-as-you-go is said. “This climate is actually at- millions for a license, and Plex was growth areas. definitely the future trend,” “This facility was structured tractive for us,” said Ca- very flexible with that idea.” “Our prospects were looking for Twarozynski said. “People who at a time when few finance com- vanaugh. That experience would be key in such solutions, but because we had aren’t on board are going to be left panies were able to increase or “In the mid-2000s, we saw a lot shaping Twarozynski’s philoso- dipped our toe in that water and behind.” renew credit facilities and will of aggressive lending. A lot of phy as CFO of the company — un- understood it, we were able to em- — Nancy Kaffer provide ACC with the capital companies were over-leverag- necessary to continue to grow ing while we stood our ground. the business. That’s my biggest Today, a lot of that competition ahievement with ACC so far be- is no longer here. We have a sol- cause, for the year ending Dec. id history and a solid balance 31, 2009, ACC reported its best fi- You’ve updated sheet. People will always need nancial results in the 17-year basic transportation, and they’ll history of the business.” your wardrobe finance used cars. That’s why — Brett Callwood & hairstyle... Have you Employee BenefiBenefits ts Experience updated your Life Insurance In Your Corner. Portfolio?

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May 24, 2010 CRAIN’S DETROIT BUSINESS Page 17 Finance Extra FINANCE BRIEFS Taubman refinances mall project day. Ross is chairman of Dearborn- Missouri, which bring the number Also last week, U.S. District The funds and the SEC both allege based International Automotive Compo- of U.S. bank failures this year to 72. Judge Denise Page Hood signed or- that $15.7 million of the $23 million with mortgage-backed loan nents Group Inc., a $5 billion automo- New Liberty Bank had about ders modifying an initial freeze of invested by the local funds was Bloomfield Hills-based Taubman tive plastics business. $101.8 million in deposits and $109.1 assets in the SEC case, so that Farr’s transferred to three businesses Centers Inc. (NYSE: TCO) will refi- His appointment follows a $200 million in assets. Bank of Ann Arbor Second Chance Motors Inc. “may con- managed by Farr. Another $3 mil- million fundraising for the bank agreed to acquire the deposits and nance its construction loan on the tinue their business operations for lion was allegedly stolen from the holding company, led by his compa- nearly all of its assets. Mall at Partridge Creek with a $77 the benefit of the Onyx Fund in- fund, according to the SEC. ny, W.L. Ross & Co. L.L.C., which in- — Chad Halcom million commercial mortgage- vestors.” vested almost $50 million. backed security loan, according to The fundraising closed April 30, Detroit pensions file Onyx lawsuit industry reports. The package the same day state and federal regu- Two Detroit employee pensions would be the fourth such loan in lators announced that the one- named in a civil action by the U.S. Michigan. branch community bank had Securities and Exchange Commission The loan would refinance the $81 bought the assets of the troubled 22- against Detroit-based private equity million construction loan, reported branch Citizens First Bank of Port firm Onyx Capital Advisors L.L.C. industry publication National Real Huron. brought a separate lawsuit against Estate Investor. David Provost, CEO and chair- the firm, its founder and a Georgia In Troy, the Columbia Center man of First Michigan, said that car dealer. towers will be acquired with a $42 $125 million of the investment The General Retirement System of million CMBS loan. would be used to grow the loan port- the City of Detroit and the Detroit Po- In March, Farmington Hills- folio of the acquired bank, while the lice and Fire Retirement System togeth- based Ramco-Gershenson Properties rest could be used for general pur- er seek $20 million in damages for Trust refinanced two retail develop- poses and to acquire other troubled lost investment capital plus $1 mil- ments, including West Oaks II in banks in Michigan. lion in exemplary damages in a law- Novi, under a $31.3 million CMBS — Tom Henderson loan. The loan was the first CMBS suit filed May 13 and assigned to loan issued for a Michigan property U.S. District Judge Victoria since the market for such loans Bank of Ann Arbor acquires Roberts. dried up. New Liberty after shutdown The SEC brought a lawsuit in — Daniel Duggan April against Onyx Capital and its New Liberty Bank based in Ply- founder, Roy Dixon Jr., along with mouth was among several banks na- Michael Farr, an Atlanta-area car IAC Chairman Ross joins board tionwide that regulators shut down dealer and the son of former Detroit May 14, the Associated Press report- Lions star and local auto dealer Mel of First Michigan Bancorp ed. Farr. The SEC seeks to “stop an on- Wilbur Ross Jr., the well-known Regulators shut down New Liber- going fraud” of $23.8 million against New York financier, has joined the ty Bank, as well as Midwest Bank and three Detroit-area pension funds, in- board of Troy-based First Michigan Trust Co. in Elmwood Park, Ill., and cluding the two who brought the Bancorp Inc., it was announced Tues- two smaller banks in Georgia and new suit.

MACPA CONGRATULATES OUR MEMBERS RECOGNIZED BY CRAIN’S CFO OF THE YEAR AWARD

NONPROFIT CATEGORY Winner: Anne Beck ŽůůĞŐĞĨŽƌƌĞĂƟǀĞ^ƚƵĚŝĞƐ ϱŽƵƚŽĨϭϯŽĨƌĂŝŶ͛Ɛ&KƐŽĨƚŚĞzĞĂƌĂƌĞWƐĂŶĚďĞůŽŶŐƚŽƚŚĞDŝĐŚŝŐĂŶƐƐŽĐŝĂƟŽŶŽĨWƐ͙ &ŝŶĂůŝƐƚ͗ Karen Belans just a coincidence? We don’t think so! ĞƚƌŽŝƚZĞŐŝŽŶĂůŚĂŵďĞƌ The CPA profession together with the MACPA can help take your career to the next level. Contact the MACPA at 248.267.3700ƚŽĮŶĚŽƵƚŚŽǁLJŽƵĐĂŶŐĞƚƚŚĞĐĂƌĞĞƌƌĞƐƵůƚƐLJŽƵĂƌĞƐĞĞŬŝŶŐ͘

PUBLIC CATEGORY &ŝŶĂůŝƐƚ͗ DĂƩŚĞǁ^ŝŵŽŶĐŝŶŝ >ĞĂƌŽƌƉŽƌĂƟŽŶ

PRIVATE CATEGORY (over $250 million) &ŝŶĂůŝƐƚ͗ ŶĚLJtŽnjŶŝĂĐŬŝ ZŽƵƐŚŶƚĞƌƉƌŝƐĞƐ͕/ŶĐ͘

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Page 18 CRAIN’S DETROIT BUSINESS May 24, 2010 Finance Extra

n April, Crain’s Detroit Business and lisher Mary Kramer. Also participating nign insecticides derived from peptides tise to promising discoveries in life sci- Honigman Miller Schwartz and Cohn from Crain’s was reporter Tom Henderson. produced by spiders. ences. I L.L.P. ventured to Kalamazoo to con- Participants in this portion of the John Balbach, technology consul- Phillip Torrence, managing partner, nect with life science and business sup- roundtable were: tant, Small Business and Technology Devel- Kalamazoo office, Honigman. port groups in the southwest part of the Joseph Reid III, chairman and CEO, opment Center, Kalamazoo. The group Participants not quoted here, but state, many of which have connections Access BIDCO L.L.C., Lansing. BIDCOs, works with small technology companies whose comments will be included June 7, to metro Detroit and have similar con- business and industry development com- to try to bridge the gap between the de- are Rob DeWit, president and CEO, South- cerns. panies, make loans that are riskier than velopment and commercialization of west Michigan Innovation Center, a Kalama- This portion of the roundtable focuses traditional bank loans but less risky technology. zoo business incubator/accelerator; Chris on financing. Other portions on the life than equity investments. Jack Luderer, executive director, Tracy, a partner in Honigman’s Kalama- sciences industry and other topics will John McIntyre, CEO, Vestaron Corp., Biosicences Research and Commercial- zoo office; and Jonathan O’Brien, chair of be published June 7. Kalamazoo. Venture-capital-backed Ves- ization Center, Western Michigan Universi- Honigman’s intellectual property prac- The discussion was moderated by Pub- taron is developing environmentally be- ty, which dedicates resource and exper- tice group. Roundtable: How to increase bank f

Mary Kramer: Before the melt- Dave Sowerby of Loomis Sayles down in 2008, the Michigan Econom- sent me a spreadsheet from an up- ic Development Corp. heard anecdo- coming section we’re doing and it tally, from Crain’s and other was just stunning. It was the mar- people in the state, that profitable ket cap of the 10 largest banks companies, especially service headquartered in Michigan in companies, were unable to get tra- 1989 and it was $7 billion. The mar- ditional bank financing to grow. ket cap for the 10 largest banks So the MEDC did a study of small- headquartered in Michigan at the business lending practices. end of 2009 was $1.5 billion, about The report basically said, “Well, one-fifth. Chemical Bank out of Mid- we really didn’t find that there land was the 10th largest bank by were that many differences be- market cap in 1989. It’s the largest tween Michigan and other states.” today. The others are gone. And But then it went on to identify a there is more than a trickle-down number of differences. And it of- effect. They’re not here, they don’t fered two appendices that showed care to loan here, they don’t get in- what was going on in other states volved in as many charitable ac- to create sources of funding for tivities, they don’t get involved in growing companies. the community. We’ve got nothing There was actually a state-owned against Midland or Chemical bank in Wyoming or Montana. And PHOTOS BY ZOLTON COHEN Bank, but when the largest bank in Massachusetts, there was a pro- Phillip Torrence of Honigman and Mary Kramer, publisher of Crain’s Detroit Business. in the state of Michigan is in Mid- gram with the state banking associ- land, it speaks volumes. ation that created a big fund that They want you to go out and get loan, how does the new business Reid: It sure does. And every spread risks; it was an opportunity them from the business across the that’s never made a dollar expect bank in Michigan is so pressured to for technology companies to get fi- Everybody kind of street. Get their checking account to get one? That’s the problem. increase its capital because you’ve nancing through a different kind of “ in order to take that money and John McIntyre: I would only add seen half of it’s gone. And when the a fund. And it wasn’t so much state makes a good return, lend it out. from my perspective, which is a lit- regulators are in there and they money as pooling money from ex- takes something for So the small bank won’t survive. tle bit upside-down possibly from want you to increase, there is no isting banks. In order to make up for all those in- your view, but they always say in market for it. There is only one way Are there opportunities for the house and is efficiencies, you’re going to have to agriculture if you are going to raise to increase your capital, and that’s Michigan like that? be a bigger bank. So we’re not going a good crop, you need a good seed. to shrink, stop making loans or be Joseph Reid III: One idea that’s willing to put some to have community banks, we’re And picking up on a comment Jack much more conservative. been tossed around at Capitol Ban- going to have large banks or region- made, the corridor concept and the Access BIDCO is kind of a cross be- corp was creating a way to buy up more at risk. al banks that are going to redline tobacco money that came into this tween a venture-capital fund and a all the bad assets at banks for cents ” businesses and redline different ar- state, my recollection it was pretty bank. We’ve done venture-capital eas because they can. darn substantial. on the dollar and cleaning them up. Phillip Torrence deals in our history; we’ve been A state bank could be a participant, Just as an example, take a small Jack Luderer: Very substantial. around since 1989. But what I’m try- or a group of healthy banks or a making more loans. town, Muskegon. Tough economy. McIntyre: They were going to put ing to do now is just take that good venture-capital bank could do this. Reid: We have a lot of community You have a local bank there, well, it into development programs. I business, the guy that’s making You’re going to make money on banks in Michigan. And the small- they’re going to lend in that town. agree with his comment that you money, his collateral, if it’s a small them as the economy turns around. er ones can’t survive anymore. In But is Bank of America going to can’t keep changing the program. I business it may have been his com- This would need a lot of support the midst of this crisis of not hav- lend in Muskegon? Probably not, think there was one good change. I mercial real estate that at one time from the state and possibly federal ing enough capital with all these you know. think that there is now more an em- appraised for a million dollars on government. But if you can get the losses, what do the regulators do? So we need to figure out a way to phasis on early-stage startup com- his $600,000 line of credit, and now bad assets off of our existing banks, They tell you, “Well, 10 percent encourage smaller banks’ survival. panies as compared to trying to the bank is required to go out and then they’re free to make loans be- (capital to assets) used to be And with the policies in place, reg- bring together academic and small- get a new appraisal and it comes in cause the bad assets are gone. Right enough, now you need 12 percent.” ulatory-driven, it’s not going to company startups, which I think is at $300,000, that’s what’s going on. now, every bank is focused on the And there is no market to go raise happen. Maybe we need the state as always fraught with peril to try to And the bank says, “we’re not re- bad assets on its balance sheet. it. In addition, they tell you need to a partner in a bank, you know, a bring an academician into the newing your loan,” and you’re out Let’s go back to the example of a keep more liquidity, twice as much more state-run institution, or process of a small company. But of business, even though you’re $1 million commercial real estate on your balance sheet, so you’re putting a bunch of local banks to- that notwithstanding, if those dol- making money. So what I’ll do is property that just appraised at only going to make 1 percent or 2 gether with some state funding that lars could be returned to what they come in and guarantee whatever $300,000. To the bank it’s worth percent on that. You can’t put it in can continue the local lending. were supposed to be, and used to portion that person needs to make $300,000. That’s what you could get loans that yield high returns. Phillip Torrence: And it does have a support what I see as a strong base that work. And that’s using capital immediately upon liquidation. And then they tell you that you trickle-down effect to Rob’s tenants, of good entrepreneurial activity dollars, not deposits. I could do a lot But if I hold it and list it in 12 to can’t grow with brokered deposits John’s ability to get angel funding. within this state, it starts building more if I had a lot more capital. If I 18 months, I might get $600,000 or anymore. That’s how you grow a There is not a complete disconnect up from the bottom and that can could get the state of Michigan to $700,000. If you’re a venture-capi- bank, at least with a de novo bank between traditional bank lending support the banking industry to write me a check, or do another tal fund or a state bank that can or a young bank, you grow by on one hand and entrepreneurial come in, etcetera. Do we need both business similar to mine, it doesn’t buy that asset, you can make a bringing in more deposits and activities that involve either angel in parallel? Probably we do. But I have to be a BIDCO, where you can killing if you’re willing to hold it loaning it out. You buy deposits, or venture financing. I think with think the seed side of it needs to be go out and enhance these bank for two or three years. and you have deposits the same the healthy robust banking system addressed also. loans and you can allow the banks Kramer: Regulators are telling day. The FDIC used to let us have that’s active, you tend to have more Tom Henderson: Joe, to your to take more risks and go more to- banks to write down the assets of 60 percent brokered deposits. You activity on the other end. point about equity loss over a cou- ward the venture capital. companies with loans. Then on the can’t do that anymore. Reid: Well sure. And to my ple of years, there is a trend that I mean they’re never going to national news, we hear people in Now you have to grow them or- point, if the good businesses al- you also talk about, banks that are go that far, but right now they’re Congress criticize banks for not ganically, which is very difficult. ready making money can’t get a no longer headquartered here, but not even making good loans to 20100524-NEWS--0018,0019-NAT-CCI-CD_-- 5/20/2010 5:43 PM Page 2

May 24, 2010 CRAIN’S DETROIT BUSINESS Page 19 Finance Extra

“ The VCs have “ Coming up with gotten, I would venture capital money say, more is obviously very conservative important, but our in what they do problems ... are so much invest in. bigger than that. ” Joseph Reid III (left) of Access BIDCO and John McIntyre, ” Jack Luderer CEO of Vestaron Corp. Joseph Reid III k financing, VC investment in Michigan

good people. it will probably be at least another into those, into that sector. So it’s Torrence: Although it’s not all you take the nation as a whole from Kramer: Is venture capital in decade before we see the bigger two, incredibly important that we do that different from how the Uni- the end of 2006 to mid-2009, equity Michigan growing, declining? three hundred million dollar funds. what we can to try to find a solu- versity of Michigan is probably of banks went up 14 percent nation- Henderson: Well, there are a lot of McIntyre: Yeah, but your com- tion to this last sector. It’s typical- the number two or number three ally. And then if you look at the funds that were planned that got ment in part is relative to the fact ly the low risk, the low reward, on the list for tech transfer spin- states around us in the Midwest, put on hold. There is a lot of nurtur- that EDF was about the only ven- that pays over time, but that’s es- offs, yet all that technology again Ohio went up 24 percent. ing of what they call the dry powder ture-capital fund 15 years ago. And sential to a functioning economy. is going to the coast. That means the equity of the where they’ve got portfolio compa- now there are a bunch of EDF life Kramer: One of the guys involved It’s great if you can find a way to banks in the state of Ohio is 24 per- nies that are going to need ongoing funds that are out there in the state. in some of the funds in Southeast provide a legislative mandate for cent higher two years later. Wis- money. They don’t necessarily John Balbach: I think that’s an im- Michigan says it rankles him that this. But I’m a firm believer that consin went up 14 percent, right want to invest in a new portant point. If you there are huge pension funds, and you have to compete for those dol- with the national average. Indiana company because put this in context, huge endowments, say, for exam- lars. was flat. The state of Illinois, went they’re worried about we’ve been talking ple, the University of Michigan, or My experience on a deal we did down 14 percent, where the nation- their portfolio compa- about kind of three the state pension funds, that really in 2005, I think, is exactly the type al average went up. The state of nies needing this a stages of capital in this don’t do anything. They might in- of environment we want to create. Michigan, last place of the 50 states, year or two down the discussion. So there is vest in things outside of Michigan, We sold a medical device company went down 48 percent. Half the eq- road if the economy the very early stage but they’re not investing in Michi- that had about $2 million in private uity of our banks in the state of doesn’t improve. capital, which is typi- gan. Is there wisdom in this ap- angel funding in it, and I think Michigan from two years ago is Luderer: I think the cally angels or, you proach? Or is it too dangerous to maybe one or two venture funds. gone. And it makes it very difficult other thing is that if know, may migrate fool around with pension fund And we sold it for $30 million or for anybody to get a loan these you look back 10 years, into smaller VC funds. money, although other states $35 million after two years. Within days. And then you have the banks a lot of the VCs were in- And there has been a have pension funds that do invest two weeks of the closing of that that have left, of course have red- vesting at this sort of lot of work put into, in in funds in their states. sale, one of the principals started lined Michigan. Even if they have early stage. And if you Michigan, in terms of Reid: That’s exactly what we another company that was a dispos- branches left over, they’re either now make it to that seeding that market need with the new governor. I able dental drill company, passed closing them or they’re using them point, they’ll say here. So we’ve got a mean, we have pension funds in the hat and raised $2 million again. as deposit-gathering facilities. well that’s not far state-funded pre- Michigan that are investing in Everybody kind of makes a good They’re not making loans. enough, we need It’s typically seed capital fund. funds outside of Michigan. return, takes something for the McIntyre: (In state programs), it’s you to go a little bit “ That’s a matching Kramer: Everything these days is house and is willing to put some a point of how many dollars are further. So it’s like the low risk, the fund to wake up an- “buy Michigan.” Why not “Invest more at risk. I think it’s been more available, and then how do you the goal line keeps gel capital. in Michigan”? I’m surprised that no difficult for people to do that and seed that industry. And I think, getting moved back low reward, that We’ve got an ac- one politically has seized on that. step into that in recent times. typically within government-im- on many of the celerator fund RFP Balbach: To John’s point, I agree plemented programs, it’s $25,000 startup life-science pays over time, that’s out right that second-stage capital is proba- here, it’s $100,000 there, it’s $50,000 companies. The now. We’ve got a You take bly the area to build on. So we there. You take potentially what VC’s have gotten, I but that’s essential follow-on fund. And “ have a nice foundation of early could be a big pot of your money, would say, more there have been di- potentially what stage capital, but it’s making that if all of our dreams came true, and conservative in to a functioning rect state invest- touch point to second-stage capital you divvy it up a thousand differ- what they do invest ments into compa- could be a big pot of that’s really the key. ent ways and nobody has enough in. And certainly economy. nies. So that area, Reid: Let me just jump in there if money to be successful. over the last couple ” there has been a your money ... and I can. Coming up with venture I think it goes back to the focus of years, they’re in- John Balbach very strategic effort capital money is obviously very on what do we want to be and iden- vesting less. It’s not to seed that area. you divvy it up a important, but our problems, as tify those areas, identify the right a good combination. And to Phil’s point, it’s easily 10 Phil mentioned, are so much big- people to identify the technology I see a lot of relatively small ven- years away before we start to see thousand different ger than that. and the resources and the compa- ture-capital companies throughout the benefit of that. Existing businesses that are prof- nies that are coming along, and the Midwest, including Michigan. I The second stage, and this is the ways and nobody itable can’t get a loan, so how do we give them enough money so they mean, you don’t see hundreds of larger pools of capital, this is a expect to get venture or seed money can be successful, instead of billions of dollars under manage- problem that exists everywhere has enough money to on anything when the good busi- enough money to get to their first ment by a Michigan fund or a Mid- outside of a couple of places in the be successful. ness that makes money can’t get a milestone, come up a little bit short, western fund. You see hundreds of country. But you’ve got to have ” loan? Phil mentioned the erosion of and can’t get any more cash be- millions of dollars that are under the seed in place before you can John McIntyre equity in the state of Michigan. If cause they failed the first time out. management. And I think that that make that touch point to those Balbach: I’d like to say just a cou- limits the capabilities of them to larger pools of capital. And that is ple positive things on this topic. follow companies all the way an issue, and that’s what we’re One is Huntington Bank as an exam- through from series A through se- working towards here. ple, to me, of a positive situation. ries C financing. And the third area is the debt-ser- They recently announced that Torrence: It’s probably going to vice community that Joe is speak- they’re aggressively going to lend take another 10 years at least. I ing, I think, very well toward. In the in Michigan. And I can say, anecdo- think the number of funds and the last couple of years that has become tally, one of my clients could not get number of dollars under manage- a serious problem in Michigan. And a bank loan, he was eminently ment with Michigan-based funds I guess that all this work we’re fundable and I introduced him to has increased significantly over the putting into this seed area, the them. Huntington stepped in and past 10 years. However, your ability whole multiplier effect around that did the deal. to raise and get into the big dollars, is the service-based companies that So I think there are people who the pension funds, is based on your come out of this. see value in this community and (internal rate of return) perfor- And if you can’t service those are stepping up, and I think they mance, and obviously everybody is companies, you lose the whole eco- John McIntyre (left), CEO of Vestaron, and John Balbach, technology consultant should be recognized and that taking a hit during this period. And nomic impact of putting the effort with the Small Business and Technology Development Center in Kalamazoo. should be noted. 20100524-NEWS--0020-NAT-CCI-CD_-- 5/20/2010 3:28 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS May 24, 2010 BUSINESS DIARY CALL FOR NOMINATIONS EXPANSIONS Gerdom Realty and Investment, from 28345 Beck Road, Suite 201, to 28373 Realcomp II Ltd., Farmington Hills, a The Rochester Regional Chamber of Beck Road, Suite H-10, in Wixom. real estate Multiple Listing Service Jones Lang LaSalle welcomes Commerce is accepting nominations Telephone: (248) 242-6766. Website: for the Sunrise Pinnacle Awards to provider, has incorporated seven ad- www.gerdomrealty.com. newest team member to our honor the greater Rochester area’s ditional counties into its public most successful and philanthropic in- records data module as part of its Pub- NEW PRODUCTS dividuals, nonprofit organizations lic Record Data expansion plan. Web- Detroit offi ce and businesses. Deadline: May 28. site: www.realcomp.com. 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Volo Designs, Bloomfield has Holdings, Port Washington, N.Y., a launched a Googlewize division to customized web-based platform show- JOINT VENTURES support the use of Google tools for casing emerging growth stocks. business. Telephone: (248) 971-0112. Hollingsworth Logistics Group L.L.C., Website: www.volodesigns.com. For real estate services: AtDetroit, Farmington, a developer of Dearborn, is teaming with Aurora, On- Michigan First Credit Union, Lathrup websites, has been chosen by Couples tario-based to Magna International Inc. Village, has added new personal fi- James C. Becker Ronald J. Gantner, CPA Resorts of Jamaica to develop and pro- create a joint venture, Chattanooga Market Director Executive Vice President nance management tools to its online duce its new website. Seating Systems, supplying seats to banking services. Website: + 1 313 967 4100 + 1 313 967 4105 Energy Conversion Devices Inc., Volkswagen AG’s new auto assembly www.michiganfirst.com. Rochester Hills, has been selected by plant in Chattanooga, Tenn. The joint www.us.joneslanglasalle.com/detroit venture will be based in Chattanooga Mercedes-Benz Financial, Farming- ProLogis, Denver, Colo. and Portland ton Hills, has expanded account man- and eventually employ 120. © 2010 Jones Lang LaSalle IP, Inc. All rights reserved. General Electric, Portland, Ore., to de- agement features to mobile devices liver 2.4MWp of Uni-Solar laminates for with Internet capability. Website: installation on seven ProLogis distrib- MOVES www.mercedes-benzfinancial ution warehouses in Portland, Gre- Chimovitz Industries, a computer sup- .com/mobile. Technology News Report sham, and Clackamas in Oregon. Also, port company, from Oak Park to 1737 Thomas M. Cooley Law School, ECD has announced a contract to co-de- E. Nine Mile Road, Suite 2A, in Fern- Auburn Hills, now offers a Sustain- Sign Up for Highlights gadgets, research and velop rooftop solar electric-generation dale. Telephone: (248) 752-2888. Web- able Development Law and Policy trends including early-stage companies, systems in Italy at four plants owned by site: www.chimovitz.com. course taught by Saulius Mikalonis, Crain’s FREE spinoffs, venture capital investments the Coca-Cola Hellenic Bottling Co. Wigs 4 Kids, a nonprofit that provides senior attorney, Plunkett Cooney, and entrepreneurial innovations. Partners on the project are ECD’s sub- wigs for children with cancer and oth- Bloomfield Hills. Telephone: (517) 819- Technology Report sidiary United Solar Ovonic and New er diseases, from 29314 Harper Ave. to 1524. Website: www.cooley.edu Sign up now at crainsdetroit.com/getemail York-based ContourGlobal. 30126 Harper Ave., in St. Clair Shores. /auburnhills.

2010 We salute the following donors for their generous support: HONOREES Presenting Sponsors Business Leadership Award: present Sherwood Food Distributors Luncheon Underwriter Video Underwriter Employee of the Year Awards: Karen Larson Silver Level Sponsors Honigman Miller Schwartz & Cohn L.L.P. Edw. C. Levy Co. Lydia McCreary Networking & Awards Luncheon The Salvation Army Nancy & James Grosfeld Gloria & Ed Meer Tim McIntosh 15, 2010 Lisa & Brian Meer Sally & Graham Orley 2 Unique Caterers Tuesday, June 11:30 A.M. - 1:30 P.M. Media Sponsor Copper Level Sponsors Supporting Sponsors Crain’s Detroit Business Jonathan Aaron Automatic Apartment Hadas and Dennis S. Bernard Laundries, Inc. Bronze Level Sponsors Baker Tilly Bowne Hyatt Regency Nora & Guy Barron Brooks Financial Barris, Sott, Denn & Driker, P.L.L.C. Care Tech Solutions Cornish, Zack, Hill & Penny & Harold Blumenstein Dorie Shwedel & Associates Associates, Inc. Butzel Long Brian Eisenberg Craig-Richard Promotional Products Dearborn Charter One Bank Beth Gotthelf & Steven Miesowicz Harley Ellis Devereaux Citizens Bank Honigman Miller Schwartz & Huron Valley-Sinai Hospital Couzens Lansky Cohn L.L.P. Diane Farber Ticket and sponsorship information: G. Fisher Construction Company/ M Group Gateway Travel or [email protected] Community 1st Development Erica Peresman & David Jaffe Stacy Goldberg, A Weigh of (248) 233-4213 Goldman Sachs & Company Resource Life Nutrition Lillian & Joseph Schwartz Judy Greenwald Charitable Fund Jill & Lee Hurwitz Midwest Health System Contributing Sponsors Helene & Art Indianer Motor City Casino Berger Realty Group, Inc. Julie Nelson-Klein Oakland University Broder & Sachse Real Estate Mary Kramer Pepper Hamilton L.L.P. Camp Tanuga Medical Center Pediatrics P.L.L.C. Strictly Business raises funds for people PVS Chemicals, Inc. Med Tipster Muchmore Harrington Smalley & Quicken Loans Nathan Zousmer, P.C. Associates, Inc. with disabilities, unemployed workers, the Sue Ellen Eisenberg & frail elderly and at-risk youth Specs Howard School of Pension Trend Associates, P.C. Broadcast Arts, Inc. RSIG Security Tri-County Beverage Co. Tama, Budaj & Raab, P.C. CPA’s Dr. Roberta Toll Wayne Industries David Victor Honorary Chair and Keynote Speaker: Walsh College JVS was founded in 1941 as Jewish Vocational Service and has helped tens Wells Fargo Peter Karmanos, Jr. of thousands of individuals and businesses achieve their employment goals. Compuware Chairman & CEO As of 5/12/10 20100524-NEWS--0021-NAT-CCI-CD_-- 5/20/2010 4:24 PM Page 1

May 24, 2010 CRAIN’S DETROIT BUSINESS Page 21

Spotlight on divisions, affiliates and subsidiaries

How revenue of the top five companies on today’s list of divisions, affiliates and subsidiaries has changed since they began appearing on Crain’s list. Only General Dynamics has been on the list since 1985. Robert Bosch and Denso weren’t on the list until after 1990. Figures are in millions:

Johnson Controls Robert Bosch General Dynamics DuPont Denso ’85 ’85 ’85 $1,137 ’85 ’85 ’90 $1,400 ’90 ’90 $1,008 ’90 $3,000 ’90 ’95 $4,420 ’95 $2,000 ’95 $1,050 ’95 $3,600 ’95 $2,300 ’00 $12,700 ’00 $4,382 ’00 $1,000 ’00 $6,000 ’00 $3,800 ’05 $18,830 ’05 $5,500 ’05 $2,600 ’05 $3,700 ’05 $5,900 ’09 $12,016 ’09 $6,165 ’09 $4,600 ’09 $4,000 ’09 $3,400 CRAIN'S LIST: LARGEST DIVISIONS, AFFILIATES AND SUBSIDIARIES Ranked by 2009 revenue

Parent company Company Revenue revenue Address Parent ($000,000) Percent ($000,000) Rank Phone, Website Top local executive company 2009/2008 change 2009/2008 Business description Johnson Controls Beda Bolzenius Johnson Controls Inc. $12,016.0 -33.6% $28,497.0 Automotive interiors, seating and electronics 1. 49200 Halyard Drive, Plymouth 48170 president, automotive Milwaukee $18,091.0 $38,062.0 (734) 254-5000; www.johnsoncontrols.com experience Robert Bosch L.L.C. Peter Marks Robert Bosch GmbH 6,165.0 -15.0 53,000.0 Supplier of powertrain, chassis, electrical and electronic 2. 38000 Hills Tech Drive, Farmington Hills 48331 chairman, president and CEO Stuttgart, Germany 7,254.0 66,400.0 automotive systems and components (248) 876-5000; www.boschusa.com General Dynamics Land Systems Mark Roualet General Dynamics Corp. 5,500.0 B 18.3 31,981.0 Designs, develops and produces armored vehicles and subsystems 3. 38500 Mound Road, Sterling Heights 48310 president Falls Church, Va. 4,650.0 29,300.0 (586) 825-4000; www.gdls.com DuPont Automotive Tony Coletta E.I. du Pont de Nemours & Co. 4,000.0 C -14.9 26,109.0 Coatings, plastics, fibers, air conditioning, refrigerants, precision 4. 400 N. Groesbeck Highway, Mt. Clemens 48043 vice president, OE Wilmington, Del. 4,700.0 C 30,529.0 parts (586) 468-2811; www.automotive.dupont.com Denso International America Inc. Yoshiki "Steve" Sekiguchi Denso Corp. 3,400.0 D 2.1 32,000.0 Automotive supplier 5. 24777 Denso Drive, P.O. Box 5047, Southfield 48086 president and CEO Kariya, Aichi, Japan 3,331.0 (248) 350-7500; www.densocorp-na.com Continental Automotive Systems Samir Salman Continental AG 3,373.0 C -29.0 20,000.0 Automotive brake and safety systems, electronics, hybrid 6. 1 Continental Drive, Auburn Hills 48326 CEO, NAFTA region Hannover, Germany 4,752.0 C 26,000.0 technologies, powertrain (248) 393-5300; www.conti-online.com GKN Driveline North America Inc. Max Owen GKN plc 3,108.0 -20.9 6,588.0 Constant-velocity joints for half-shafts, prop-shafts, traction- 7. 3300 University Drive, Auburn Hills 48326 regional managing director, Worcestershire, England 3,927.6 8,095.6 control devices, powder-metal products (248) 377-1200; www.gknplc.com Americas Aisin World Corp. of America Kenji Tsujimura Aisin Seiki Co. Ltd. 2,640.0 -18.6 21,695.0 Automotive body systems, drivetrain and engine components, 8. 46501 Commerce Center Drive, Plymouth 48170 president and CEO, Aisin Kariya, Aichi, Japan 3,244.0 E 21,265.0 electronics, brake and chassis systems, chemical (734) 453-5551; www.aisinworld.com World Corp. of America, Aisin Holdings of America Inc. Con-way Freight John Labrie Con-way Inc. 2,623.0 -13.0 4,270.0 Transportation and logistics 9. 2211 Old Earhart Road, Ann Arbor 48105 president San Mateo, Calif. 3,015.0 5,036.8 (734) 996-6600; www.con-way.com/freight ThyssenKrupp Materials NA Inc. Joachim Limberg ThyssenKrupp AG 2,000.0 -31.0 54,800.0 Materials management and services; processing and distribution 10. 22355 W. 11 Mile Road, Southfield 48033 chairman and CEO Duesseldorf, Germany 2,900.0 80,300.0 of aluminum, copper, brass, specialty metals, steel and plastics; (248) 233-5600; www.tkmna.thyssenkrupp.com supply-chain management; logistics; industrial services Yazaki North America Inc. Masashi Yamashita Yazaki Corp. 1,589.5 -39.2 8,686.0 Tier-one automotive supplier of power and data services to North 11. 6801 Haggerty Road, Canton Township 48187 chairman of Yazaki North Tokyo 2,616.0 E 11,180.0 American original-equipment manufacturers (734) 983-1000; www.yazaki-na.com America board TK Holdings Inc. Shunkichi Shimizu Takata Corp. 1,546.7 0.2 4,121.9 Safety restraint supplier 12. 2500 Takata Drive, Auburn Hills 48326 president and CEO Tokyo 1,543.3 4,411.1 (248) 373-8040; www.takata.com CalsonicKansei North America Inc. Seiichi Kakizawa CalsonicKansei Corp. 1,271.0 D -16.7 NA Tier-one supplier of HVAC, engine cooling and exhaust 13. 27000 Hills Tech Court, Farmington Hills 48331 president Tokyo, Japan 1,525.0 D components and systems; cockpit modules, front-end modules, (248) 848-4800; www.calsonic.com instrument clusters and instrument panels Toyoda Gosei North America Corp. Hiromi Ikehata Toyoda Gosei Co., Ltd. 1,102.8 7.6 5,300.0 Automotive parts supplier 14. 1400 Stephenson Highway, Troy 48083 president Aichi, Japan 1,025.0 5,300.0 (248) 280-2100; www.toyodagosei.com Dow Automotive Systems Steve Henderson Dow Chemical Co. 1,055.0 C -36.9 44,875.0 Automotive supplier 15. 1250 Harmon Road, Auburn Hills 48326 president Midland 1,672.0 58,000.0 (248) 391-6300; www.dowautomotive.com Valeo Inc. Françoise Colpron Valeo S.A., France 1,040.0 C -16.1 NA Design, production and sale of automotive components, 16. 150 Stephenson Highway, Troy 48083 national director, North France 1,239.0 C integrated systems and modules for passenger cars and trucks (248) 619-8300; www.valeo.com America Hella Corporate Center USA Inc. Martin Fischer Hella KGaA Hueck & Co. 583.0 F -22.6 NA Lighting and electronic 17. 43811 Plymouth Oaks Blvd., Plymouth 48170 president and CEO, Hella Lippstadt, Germany 753.6 F (734) 414-0900; www.hella.com Corporate Center USA Inc. and Hella Electronics Corp. NTN Bearing Corp. of America Angelo Desantis NTN Corp. 571.0 C -9.1 NA Sales, service and manufacturing of bearings and constant 18. 39255 W. 12 Mile Road, Farmington Hills 48331-2975 vice president, automotive Osaka, Japan 628.0 C velocity joints for the automotive industry (248) 324-4700; www.ntnamerica.com group Behr America Inc. Heinz Otto Behr GmbH and Co. KG 554.0 -28.4 3,430.0 Automotive supplier producing engine-cooling and air- 19. 2700 Daley Drive, Troy 48083 president and CEO Stuttgart, Germany 774.0 4,400.0 conditioning systems and components (248) 743-3700; www.behrgroup.com Brose North America Inc. Jan Kowal Brose Fahrzeugteile GmbH & 430.0 -30.4 NA Developer, producer and integrator of intelligent systems and 20. 3933 Automation Ave., Auburn Hills 48326 president Co. KG 618.0 G modules for doors and seats (248) 339-4000; www.brose.com Coburg, Germany

This list contains information about Detroit-based divisions, affiliates, units and subsidiaries of companies whose headquarters are outside Wayne, Oakland, Macomb, Washtenaw and Livingston counties. This is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies. NA means not available. B Crain's estimate. C From Automotive News. Figures represent total OEM sales. D Automotive News estimate for fiscal year ending March 31. Figure represents North American OEM parts sales. E Company estimate from Automotive News for the fiscal year ending March 31. Figures represents North American OEM part sales. F From Automotive News. Figure represents fiscal-year ending May 31. G Company estimate. LIST RESEARCHED BY ANNE MARKS 20100524-NEWS--0022-NAT-CCI-CD_-- 5/20/2010 4:50 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS May 24, 2010

CareerWorks online Visit www.crainsdetroit.com /careerworks to search for jobs, post a résumé or find talent.

CareerTransition

Name: Jake Leisure, 30. Milwaukee. I would help him with p.m. to 2:30 a.m. That took some get- record. Do your research. Education: Studied at John Carroll his business, but I couldn’t find work ting used to.” “A company like Hungry Howies University in Cleveland, Ohio. in automotive sales in Michigan. Obstacles overcome: “Learning has an excellent support system, Last career: Leisure was assistant “One day I was eating pizza and I about the cash flow took some time. which is hugely beneficial. Know manager and sales clerk at Dunham’s asked the owner if he was interested In the pizza business, the cash flow is your limitations, though. I’m not Sports in Milwaukee. His duties in- in selling. As it turns out, he was. I’d day to day. In sports or automotive married and I don’t have children, so cluded stocking aisles, ringing up never made pizza before, but I knew sales, you take large orders and you it doesn’t really matter if I work until sales and helping customers. it was a stable business. It was hands- know that you’re getting a certain 2:30 a.m. For somebody else, that New career: Leisure now owns two on work, which is what I like.” amount of money on a certain day. might not work so well. You just have Hungry Howie’s pizza franchises in How he made the transition: “Hungry “The pizza business fluctuates to find a job that you can do, and go Rochester and Rochester Hills. He Howies was a big help. I went to a six- tremendously. You have to be con- for it.” handles sales, making pizza, ordering cerned about the weather, holidays Jake Leisure week training school to learn how to — Brett Callwood supplies, advertising, managing la- make pizza. I was really focused. I and sports games. You can make pro- Former career: bor, banking and accounting. jections to a degree, but it’ll always Retail assistant had people working for me that had If you have made a similar change in Why he decided to change careers: “I manager worked for the company for 20 years. surprise you.” your career, or know someone who worked in the automotive industry It was hard at first, but it was enjoy- Advice for others: “Just go for it. You has made an interesting career transi- New career: for my father’s company since the Pizza franchise able to watch something that I own have to find companies that are some- tion, contact Andy Chapelle, manag- owner age of 15. When he sold the company, do well. The biggest issue was going what stable. Be careful of franchise ing editor at Crain’s Detroit Business he got a job with an oil company in from 9 a.m. to 5 p.m. hours … to 11 fees, and take a good look at the track at [email protected]. EMPLOYMENT CALENDAR ACC hosts jobs fair The Arab American Chaldean Coun- cil’s Jobs Education and Training Program, in conjunction with Southeast Michigan Community Al- liance and Michigan Works, will host its 2nd annual Back to Work Job Fair on Wednesday from 10 a.m. to 1 p.m. at ACC’s Hamtramck office at 9019 Joseph Campau. Applicants are asked to bring ré- sumés and be prepared for onsite interviews. For more information, contact Khalil Othman at (313) 875- 4685 or [email protected]. Biz workshop for people with physical challenges Women Empowered Inc., the Coun- cil for Women with Physical Chal- lenges and TechTown have teamed up to offer a new entrepreneur- ship program for men and women living with disabilities in metro Detroit. The free program will cover a different business topic at each session. coffee!! The next workshop, called Busi- Nationally Recognized Substance Abuse ness Planning 101, is Tuesday at Residential Treatment Center the Rehabilitation Institute of opportunity!! Michigan, 261 Mack Ave., Detroit, I can help you to save a life today from noon to 2 p.m. Contact Tame- ka Citchen, (248) 796-1568, or interested?? [email protected]. CHIEF EXECUTIVE OUTREACH Website: www.womenempowered inmich.org. franchise?? Just call me on my Workshop for entrepreneurs personal cell phone (734)476-9931 Denise Bertin-Epp Service Corps of Retired President and Chief Nursing Officer, Brighton Hospital Contact us at Executives, Detroit Chapter 18, is I hosting a workshop for entrepre- Highest physician recognition by the American Society of Addiction Medicine (ASAM) (517) 913-1987 or I Masters prepared and experienced therapists neurs from 9 a.m. to noon Wednes- I Highest percentage of addiction certified nurses in the USA (CARN) [email protected] day titled “How to Write a Success- I Integrative therapies, including auricular detox acupuncture and yoga ful Business Plan.” Cost is $45. To I First choice for executives, health professionals and attorneys be held at the Southfield Public Li- www.brightonhospital.org brary, 26300 Evergreen Road www.biggby.com For more information or to reg- 800-523-8198 ister, go to www.scoredetroit.org, call (313) 226-7947, or e-mail Confidential • Patient/family support • Intervention liaison • Evaluation Admission • Advocacy/counsel • Referrals • Concierge services [email protected]. SP1563 20100524-NEWS--0023-NAT-CCI-CD_-- 5/20/2010 3:25 PM Page 1

May 24, 2010 CRAIN’S DETROIT BUSINESS Page 23

PEOPLE CONSTRUCTION Inc., Bloomfield Hills; Donald Parfet, founder and managing director, Apjon Eric Morais to general manager of op- N THE SPOTLIGHT I Group L.L.C., Kalamazoo; and B. Joseph erations and marketing, E.J.H. Con- University Liggett School in Grosse White, president emeritus and profes- struction Inc., Farmington Hills, from Pointe Woods sor, University of Illinois, Champaign, Michigan account executive, CBS Ill., all elected to board of directors, Kel- Corp., Southfield. has hired Kelley ly Services Inc., Troy. EDUCATION Hamilton as its Sandy Ennis to vice president of corpo- development rate communications, DTE Energy Co., Alan Pinon to mar- director. She Detroit, from corporate secretary and keting officer, will oversee chief of staff. Madonna Universi- the school’s ty, Livonia, from major gifts, SUPPLIERS assistant multime- annual fun and Michael Kamsickas to president of dia editor and pho- corporate tographer, The North America original equipment, sponsorship Dayco Power Transmission, Troy, Daily Times, Salis- Hamilton programs. bury, Md. from vice president of North America Hamilton will also lead an strategic planning, Faurecia North endowment initiative to fund the America, Troy. FINANCE Liggett Merit Scholars program, Pinon Gary Cortner to which offers four years of high president of Port school tuition free to Southeast PEOPLE GUIDELINES Huron region, First Michigan Bancorp Michigan students. Inc., Troy, from executive managing di- Hamilton, 39, was formerly senior Announcements are limited to rector and director of commercial lend- vice president of development at management positions. Nonprofit ing. Detroit Public Television in Wixom and industry group board Gary Forhan to vice president of opera- and had worked for the company appointments can be found at tions, Level One Bancorp Inc., Farm- since 1996. She was instrumental www.crainsdetroit.com. Send ington Hills, from senior vice presi- in helping WTVS-Channel 56 close submissions to Departments, dent of marketing and products, out a $22 million campaign last Crain’s Detroit Business, 1155 Peoples State Bancorp Inc., Munising. year. Gratiot Ave., Detroit, MI 48207- Debbie Gibb to vice president of com- She replaces Catherine Rogg, who 2997, or send e-mail to munications, Michigan Association of left for personal reasons after six [email protected]. Certified Public Accountants, Troy, Releases must contain the person’s from associate executive director, Stu- years as head of the development department. name, new title, company, city in dent Youth and Travel Association, which the person will work, former The independent day school said it Lake Orion. title, former company (if not plans to begin a $10 million promoted from within) and former HEALTH CARE endowment initiative this fall to fund scholarships. city in which the person worked. Melissa Runge-Morris to director of the Photos are welcome, but we cannot Institute of Environmental Health Sci- Hamilton earned a bachelor of arts guarantee they will be used. ences, Wayne State University, Detroit, degree in communications from remaining professor of internal medi- Michigan State University. cine. Jennifer Viano to CEO, Cutaneous Peter A. Basile Sons Inc., Livonia. Lymphoma Foundation, Birmingham, from executive director, Scleroderma SERVICES Foundation, Farmington Hills. Terence Adderley, chairman of Kelly Services Inc., Troy; Carol Adderley, MANUFACTURING writer and researcher, Troy; Carl Cam- den, president and CEO, Kelly Services Charles Brewer to director of North Inc., Troy; Jane Dutton, professor, American sales, Tecumseh Products Stephen M. Ross School of Business, Co., Ann Arbor, from vice president of University of Michigan, Ann Arbor; sales, NTI Inc., Saint John, New , president emeritus, Uni- Brunswick, Canada. Maureen Fay versity of Detroit Mercy, Detroit; Ter- rence Larkin, senior vice president, gen- REAL ESTATE eral counsel and corporate secretary, Tina Eick to CFO, Coldwell Banker Lear Corp., Southfield; Leslie Murphy, Weir Manuel, Birmingham, from CFO, president and CEO, Murphy Consulting

CONFUSED ABOUT SOCIAL MEDIA?

MARKETING ‡ PR ‡ DESIGN ‡ NEW MEDIA identitypr.com 20100524-NEWS--0024-NAT-CCI-CD_-- 5/20/2010 3:24 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS May 24, 2010

CALENDAR COMING EVENTS Rehmann, others. For senior-level exec- METZGER, POWER TO ADDRESS utives in finance to address current is- Detroit Economic Club. 11:30 a.m.-1:30 sues and challenges, explore emerging LEADERS WITHOUT BORDERS p.m. June 9. With: John Lechleiter, trends and network. Ford Motor Co. chairman, president and CEO, Eli Lilly Conference and Event Center, Dear- The Detroit Orientation Institute, and Co. Westin Book Cadillac, Detroit. born. Free to CFO and senior finance Leadership Detroit, Leadership $45 members, $55 guests of members, executives. Contact: (248) 275-1337 ext. $75 nonmembers. Contact: (313) 963- Oakland, Leadership Macomb and 114; e-mail: [email protected]; web- 8547; e-mail: [email protected]; Leadership Windsor Essex present site: www.midwestcfoforum.com. Leaders Without Borders- website: www.econclub.org. Michigan’s Defining Moment 7:30- 10 a.m. Thursday at the Westin Detroit Economic Club. 11:30 a.m.-1:30 Crain’s Detroit Business CFO of the Year hotel in Southfield. p.m. June 11. With: U.S. Rep. Eric Can- Awards Dinner. 5-9 p.m. June 16. Marsh, Addressing the tor, R-Va. Townsend Hotel, Birming- others. The Henry Ford IMAX Theatre group will be ham. Members $45, guests $55, non- Entrance, Dearborn. $60 each, $55 Phil Power, members $75. Contact: (313) 963-8547; groups of five or more, $70 at the door. founder of The e-mail: [email protected]; web- For group rate, or more information, Center for site: www.econclub.org. contact (313) 446-0300. Website: www. Michigan; and crainsdetroit.com. For sponsorship op- Kurt Metzger, Midwest CFO Forum. 10 a.m.-5:30 p.m. portunities, contact Marla Downs at director of June 16. Crain’s Detroit Business, (313) 446-6052 or [email protected]. Data Driven Detroit. Desiree Cedar Point is the perfect place for a company outing. Power Cooper, senior analyst, new It’s fun, affordable, and we do all the work for you! media, City Connect Detroit, will CAREER MOVES moderate the discussion. Tickets are $30 for class members REAL ESTATE TECHNICAL No matter how big your group is, we’ll plan an awesome of sponsoring organizations and day for everyone. Plus, Cedar Point offers groups a $40 for guests; the registration deadline is Tuesday. Programmer Analyst wide variety of tasty meal options. And you only pay for For more information, contact Ann United States District Court, group members that show up. Slawnik at (313) 577-0171; e-mail Sales Position Eastern District of Michigan -- EOE Outstanding opportunity to join one of [email protected]; or This position is located in the consolidated visit www.doi.wayne.edu/lwb.php. Michigan’s largest and most experienced commercial real estate brokerage firms. Information Technology (IT) Department of the United States District Court in Detroit, Michigan, We also offer a Good Any Day Program, where Responsibilities include sales and leasing of and serves the following agencies within the Court: industrial, office, or retail properties. All TUESDAY Pretrial Services, Probation and the Clerk’s Office. employees can purchase a discounted ticket to use any inquiries handled on a confidential basis. The employee develops applications for managing MAY 25 E-mail resumes to [email protected] or day all season long. Set this up online for free! local data systems, websites, custom interfaces for Detroit Economic Club. 11:30 a.m.-1:30 call Jason Capitani at 248-637-7684. national systems, analyze manual processes in the p.m. With: Carlos Ghosn, chairman court family and propose IT solutions. The Pick something everyone will love and CEO, Renault-Nissan alliance. employee is a member of a group of IT support Cobo Center, Detroit. $45 members, Call or email today for information personnel and reports directly to the Director of IT. and come to Cedar Point. $55 guests of members, $75 nonmem- on a custom advertising plan! The minimum requirements for the position and the bers. Contact: (313) 963-8547; e-mail: instructions for application are detailed in the Programmer Analyst Vacancy Announcement [email protected]; website: [email protected] www.econclub.org. which can be found at: 313.446.6068 http://www.mied.uscourts.gov Going Radical: Creating the Hospital of the Future. 5-7 p.m.; also 7:30 a.m.- 8:30 p.m. May 26 and 7:30 a.m.-4:30 p.m. May 27. Inforum. With: Bill Tay- lor, co-founder and founding editor, Fast Co.; Nancy Schlichting, president MARKET PLACE and CEO, Henry Ford Health System; Gerard van Grinsven, president and CEO, Henry Ford West Bloomfield ANNOUNCEMENTS & Hospital; others. Includes tours SERVICES through West Bloomfield Hospital and Henry Ford Hospital. MotorCity AUCTIONS Sandusky, OH Casino Hotel, Detroit. $699; Inforum members and Henry Ford vendors Go to cedarpoint.com/groups for details and pricing info and partners $499; keynote luncheon or call 1-800-448-2428. $65. Contact: (313) 916-8354; e-mail: Luxury Vehicle &Vessel Auction [email protected]; website: www. Broward County Convention Center goingradical.com. Ft. Lauderdale, FL June 3, 2010 THURSDAY Seized & Forfeited General Property Program MAY 27 2007 Warren Yacht 2008 Bugatti Veyron 2005 Riva Aquariva Super 2008 Rolls-Royce Phantom Detroit Economic Club. 11:30 a.m.-1:30 1999 Sea Ray Sundancer 2009 Bentley Continental GTC p.m. With: Scott Serota, president and CEO, Blue Cross Blue Shield Associa- 2009 Maserati GT 2008 Mercedes-Benz SLR McClaren tion. Detroit Marriott Renaissance 2009 Ferrari F430 Spyder And More! Center. $45 members, $55 guests, $75

nonmembers. Contact: (313) 963-8547; 5113G2 e-mail: [email protected]; web- site: www.econclub.org. www.treas.gov/auctions/treasury/gp www.ricklevin.com Leading Michigan into the 21st Century 888.534.2828 Economy. 6-8:30 p.m. Lawrence Techno- logical University. With: Jim Saber, vice BUSINESS & BUSINESSES FOR SALE president business development, Next- INVESTMENTS Energy; Nancy Cappola, director of In- For Sale – Established Childrens ternational Soft Landing Program, INVESTMENT OPPORTUNITIES Clothing Boutique TechTown; others. Lawrence Techno- High end downtown location. Business profitable, but owner needs more free time. logical University, Southfield. Free. Successful marketing firm in Metro Detroit seeking investment Owner wants to see business continue and is Contact: (248) 204-3050; website: available to assist or consult. Price is cost of opportunities. www.ltu.edu/management. inventory, great opportunity. If you own or manage a firm in the Marketing, Email at [email protected] PR, or Ad Agency business and are looking for Changing Realities of Business Philan- financing or a buy-out, please e-mail your Call Us For Personalized thropy. 8 a.m.-noon. Lawrence Techno- contact information to Service: (313) 446-6068 logical University. With: Peter Reming- [email protected] ton, president, The Remington Group; FAX: (313) 446-1757 Paul Hillegonds, senior vice president, E-MAIL: [email protected] INTERNET: corporate affairs, DTE Energy Co.; Advertise your www.crainsdetroit.com/section/classifieds Steve Brown, senior vice president, uni- See versity advancement, LTU; others. $25. Products and Services in Crainsdetroit.com/Section/Classifieds Contact: (248) 204-3095; website: Crain’s Detroit Business for more classified advertisements www.ltu.edu/management. 20100524-NEWS--0025-NAT-CCI-CD_-- 5/21/2010 2:36 PM Page 1

May 24, 2010 CRAIN’S DETROIT BUSINESS Page 25 Certification has advantages in Detroit, Wayne County bidding

BY NANCY KAFFER small business, a minority-owned fied business register, with 281 put some integrity in that clouded by (the difference between CRAIN’S DETROIT BUSINESS business or a woman-owned small- businesses registered as Detroit- process,” he said. “They did make businesses that are) Detroit-based business enterprise costs $600 an- headquartered. About 680 busi- a modification or Detroit-certified,” he said. For businesses in Detroit and nually for a small business or nesses participated in all available to the ordinance “As a purchasing professional, Wayne County, the cost of partici- $2,500 each year for a larger busi- programs during that time. to try to put I’m trying to encourage more com- pating in certification programs ness, Christine Granger, director In the city’s purchasing evalua- more rigor in petition and more vendors in be- varies widely, but they bring ad- of Detroit’s Human Resources De- tion, Detroit-based businesses au- that process as ing interested in city of Detroit vantages in bidding for govern- partment, wrote in an e-mail to tomatically receive 30 points out of well.” contracts.” ment contracts. Crain’s. a possible 100, an advantage some It’s difficult to DuPerry said the city has re- In Wayne County, certification Size determinations are made say is impossible to beat. track how many cently done outreach to Detroit’s is free but participation could net by factors that include gross rev- “In the scheme of things for a of the city’s con- Chaldean business community big rewards. The county is trying enue, type of service or business small business, $600 may not be tracting dollars and is hosting monthly meetings to build a pool of county-based and number of full-time employees significant based on the contract,” are spent with at the Northwest Activities Center small-business vendors that would based on business type. said Detroit’s Chief Procurement DuPerry Detroit-based to interest businesses in becoming have first dibs on some contracts. From 2008 to 2009, just 39 busi- Officer Andre DuPerry. businesses, DuPerry said. city vendors. First, said Clarence McNeal, nesses were registered as Detroit- “That’s part of what Human “We have not yet gotten that Nancy Kaffer: (313) 446-0412, Wayne County’s based, according the city’s certi- Rights is charging those fees for, to analysis done, and it’s somewhat [email protected] purchasing di- rector, the coun- ty must build a pool of quali- fied, certified REAL ESTATE businesses. “We feel there’s value to AUCTIONS INDUSTRIAL PROPERTY MISCELLANEOUS that certifica- tion,” he said. Troy -- Sale or Lease Vacant Land McNeal Almost 1-acre in Birmingham -- $635K “Not only can 67,700 Sq. Ft. Mfg. or Whse. — — — — — we run statistics, but we can do Absolute Auction Primary Power • 3 Truckwells Birmingham House for Lease marketing. Once we know we have $1.95/Sq. Ft. Lease Rate 3,300 SF, 4-bdrms, 3.5 baths, brick colonial, $4,000 per month includes lawn and snow removal. certified businesses, we can gear Selling to Highest Bidder, Regardless of Price! Possible Seller Financing workshops toward them, and there Broker Protected Broker/Owner (248) 705-0835 586.759.4000 are certain things to do.” Auction On-site Saturday, June 26th at Noon McNeal said certified small Preview & Registration at 11am businesses in the program would AVAILABLE NOW VACANT LAND be a “part of a sheltered market in Open Memorial Day Weekend Wayne County, strictly for people 4,000 to 100,000 sq. ft. ]AGRICULTURAL PROPERTY ^ within the certified small-business Sat, May 29th from 1-3pm Also 10,000 & 25,000 sq. ft. 103 acres, level, tiled farm land. group. Only those certified Wayne Sun, May 30th from Noon-3pm Existing lease used for corn, sugar beets County small-business enterprises Free Standing Bldgs w/truckwells. and soy beans. can participate in certain solicita- 4230 E. Michigan Ave, Au Gres, MI 1 Mile from Metro Airport Sanilac County near Sandusky tions … that won’t go out to the big 313-381-4936 guys. Therefore, the advantage is • 100 Ft. of Private Beach that they’re bidding against their REA CONSTRUCTION • 3 Bed and 3 Full Bath Retreat peers.” (734) 946-8730 OFFICE BUILDING About 4,000 businesses are certi- • Mother-in-law quarters fied through one of the county’s • Sauna and Large Deck Your Weekend Retreat! Also Heavy Industrial many programs, said Victoria Ed- • 2 Car Heated Garage Land Available FOR SALE wards, director of the county’s Hu- • Unbelievable Updates Rose Auction Group, LLC 28111 Imperial Drive • Warren, MI man Relations Division. They in- www.reaconstruction.net clude county-based enterprise, 877.696.7653 targeted growth community enter- Call or visit us online! RoseAuctionGroup.com prise, small-business enterprise This Property won’t last! Beth Rose, CAI Auctioneer and expanding business enter- Pre-auction offers welcome! prise. ID#2801000078 Certified companies receive AUCTIONS AUCTIONS 531,000 SQ. FT. AVAILABLE • 100,515 SqFt Single Story Building on 10.46 Acres “equalization credits,” or “dis- • Existing Charter School Being Sold As Vacant counts” on bid amounts, on a stag- 2802 US-23    Riverfront Land Auction Easily Accessible Low Rates Rail On-site Mgmt • Building Renovated in 2005 gered scale: 5 percent for a county- East Tawas, MI Exterior Storage  www.waretechindustrialpark.com Bay City CATELLUS GROUP, LLC 810-695-7700 • 35 Classrooms, Gymnasium, Lunch Room based business on a contract less 850’ frontage • 6 acres • 4,000SF and Administrative Offices than $50,000; 3 percent on con- building. Prospect for small marina, bar/restaurant, or development. • Adjacent to St. Johns Macomb-Oakland Hospital tracts between $50,000 and Sealed Bids Due 6/11/10 Space for Lease -- Pontiac • Priced to Sell: $10,000,000 $200,000; and 1 percent for con- www.SaginawRiverAuction.com 248.324.2000 Best Deal in Town! For More Info Please Contact: tracts worth more than $200,000, 989-684-1803 Bob Moon McNeal said. [email protected] Steve Eisenshtadt When purchasing officials con- 34975 W Twelve Mile Rd 1,400sf Home on Lake Huron! [email protected] Farmington Hills, MI 48331 sider contracts, the bid of a busi- Built in 2003 on 158 x 200 Lot www.friedmanrealestate.com ness with equalization credits is effectively lowered by the credits. ONLINE ONLY AUCTION Lender Owned Auction • Warehousing, Machine/Die Storage, Mfg. “There are other equalization th Bidding ends OFFICE SPACE Wed, May 26 at 3pm • M/59, Widetrack, and Woodward Area credits, so it’s tiered,” he said. 4 STORY 95,388+/-SF OFFICE BUILDING Inspection Dates: • 5,000 to 200,000 Sq. Ft Available with 26500 Northwestern Highway, Southfield, MI May 19th (10am-11:30am) & May 23rd (12-1:30pm) Flint Township Office Building “You may get an equalization cred- Offices, Short or Long Term Leases it (for example) for being a small Selling Absolute Regardless of Price • 8 Interior Truck Wells, 16 Ft. Ceiling business and for being in a target- Heights, Sprinklers, Heated, Buss Duct, and Auction ed district.” Air Lines. 248-496-3405 McNeal said the county spends June 16th 12:00 PM about 90 percent of its contract dol- (517) 676-9800 INVESTMENT PROPERTY • Class A Office Building For Lease Broker Participation • I-69 / I-75 / US23 near Bishop Airport lars with Michigan-based busi- Invited! www.sheridanauctionservice.com nesses but couldn’t say how many • Up to 20,000 Sq. Ft. Available Public Inspection: Rental Income Property • 300 car parking of those businesses were based in June 10th & 16th starting at 10:00 AM (20) one-bedroom condos on • Fully Furnished with 100 pre-wired workstations Wayne County. • 800 kw backup generator INVESTMENT PROPERTY golf course in Clinton Township. The program vets applicant ([FHOOHQW/RFDWLRQDQGDFFHVV LQWKH+HDUWRI6RXWKILHOG¶V2IILFH • General Offices, Call Center or Data Center Market! businesses to make sure that * Exceptional Visibility and easy to find Flat roof problems? - Maintenance free 20 yr. Fully-occupied 248-496-3405 * Quick access to I-696 Freeway, John C. Lodge Freeway (MI 10) guaranteed standing seam metal roof. No tear off they’re truly in the county. and Northwestern Hwy $820,000-Net 10% return on investment * Currently vacant with 80% of interior walls and floorings removed necessary! Can go over almost any existing roof. All “You have to submit a tax state- * Ready for Tenant Improvements types of repairs. Solar electric roofing. 888-799-6918 954.482.8954 * Ideal for Multiple Tenants or Single RESIDENTIAL PROPERTY ment that all your taxes have been Tenant paid, you have to have a copy of * Built in 1969 on 4.046 Acres +/- SELLING * Lobby Renovations completed in ABSOLUTE INVESTMENT OPPORTUNITY Residential Sub your lease, we have an on-site visit 1999 Shopping Center for Sale * Covered Entry on the east side Macomb Township where we actually physically come * 373 Parking Spaces, 12 Covered Orchard Lake Road -- Oakland County ** Purchase from Banks ** * Three Passenger Elevators 145 acres. $16M invested. to the location … we try our best,” * Zoned B-3 General Business District 16,055 Sq. Ft., Priced to Sell Income Producing Commercial Edwards said. Asking $1,650,000 %X\HU¶V 3UHPLXP GHSRVLW UHTXLUHGWR ELG RWKHU WHUPV DSSO\ Real Estate in Great Locations For a business to register with Tranzon Bippus and John Bippus Auctioneer/Broker Bill McMachen, [email protected] www.armadarealestate.com the city of Detroit as Detroit-based, www.tranzon.com 866-243-8243 248-840-8393 586-915-4441 Lee & Associates Detroit-headquartered, a Detroit 20100524-NEWS--0026-NAT-CCI-CD_-- 5/21/2010 5:57 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS May 24, 2010

800-292-3831 Health costs: 7% increase expected ■ indiantrails.com From Page 1 from a 5 percent increase in 2009. Nationally, total health benefit costs are projected to increase in Some held cost increases to 1% 2010 by 9 percent, but cost-cutting is expected to trim that to 6 per- At least some Southeast Michi- better prices through volume dis- cent, according to Mercer, a New gan companies have had some count purchasing. Drug costs had success in reining in health bene- been increasing 8 percent annu- ONE HU York-based employee benefits G ND IN R T E fit costs. ally, she said. A D company. R Y B E The annual McGraw Wentworth Trend Bender Wayne State Uni- E A Jerry Konal, a principal in the L R

E S C 100 health and benefits group at Mer- Southeast Michigan Mid-Market versity in Detroit kept its medical cer’s Detroit office, said Southeast Group Benefits Survey identifies cost increases to 4 percent in 2009 Michigan companies have taken a high-performing subgroup of and is projecting a 3 percent in- important steps to reduce benefit survey participants called crease this year, said Brett costs. “Trend Benders,” who increased Green, director of total compen- “We are not yet at par with the costs by an average of only 1 per- sation and wellness. nation but (are) closer to the norm cent. Over the past several years, because more organizations have Trend Benders typically audit Wayne State has taken steps to put in payroll contribution re- enrolled dependents, increase de- contain costs, including using in- quirements,” in which companies ductibles, add additional co-pay- formation on claims paid to nego- charge employees an increasing ment rates to drug benefits and tiate more favorable rates with percentage of health benefit costs, use wellness programs with payers, conducting dependent said Konal. “There also is an un- smoker surcharges. audits and offering a wellness derstanding between management Donna Aho, first vice president program, Green said. and labor that the status quo could of corporate benefits with Trend In 2010, Wayne State increased not continue.” Bender Citizens Bank in Flint, said co-pays for brand name drugs to Comfort and In 2010, workers pay an average changes in plan design over the $15 from $10 and added, for the of 43 percent of total health benefit past two years will help to flatten first time, a $20 emergency de- costs for a median PPO plan, up projected benefit costs this year. partment co-pay. t
$IBSUFST from 33 percent in 2004, the survey In 2009, Citizens Bank cut em- Wayne State also joined a Luxury said. In 2009, employees paid an av- ployee benefit costs by 5 percent statewide university health pur- t
5PVST erage of 41 percent of total health by primarily contracting with chasing alliance that has allowed benefit costs. Medco, a pharmacy benefit man- it to negotiate more favorable t
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&WFOUT McGraw Wentworth surveyed cost increase. gible for coverage because of di- 414 Southeast Michigan-based “We did a lot of things to re- vorce or the age of dependents, Contact Indian Trails for details. Must use this duce costs,” Aho said. “Our goal Green said. t
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4FSWJDF promotional code at time of booking: CDB52may companies. Of the companies, 56 percent employed 100 to 499 is to take costs out of the plan “It allowed us to remove 5 per- workers, 15 percent employed less without taking money out of our cent of people off our plan,” he than 100 and 13 percent employed employees’ pockets.” said. “We are not sure we will between 500 and 999. In 2009, Citizens cut pharma- continue with the audits because In 2010, 92 percent of companies ceutical cost increases to zero by health care reform now covers are offering PPO plans and 43 per- using Medco’s utilization man- children 26 and under.” cent are offering HMOs, slightly agement program and by getting — Jay Greene Mission Energy! lower percentages than last year. While the percentage of PPO Our attorneys are on a mission to identify and HMO plans offered by em- WHERE THE SAVINGS ARE ployers have declined, there was We are not yet insightful energy solutions for your business. a 4 percentage-point increase in Primarily because of rising costs of “ companies using consumer-dri- pharmaceutical and injectable drugs, many employers in at par ven health plans in 2010, to 23 per- Southeast Michigan have decided cent of all companies. to take the following steps to save with the But in a major shift of philoso- on health benefit costs: phy, employers have decided to Ⅲ Increase median PPO nation increase employee contributions deductibles for single, in-network to consumer-driven health plans coverage to $500 this year, up but (are) to an average of $75 per month for from $300 in 2009. Increase a single employee, from $41 in average PPO family deductibles to closer 2009, Alter said. $1,000, up from $600. Consumer-driven health plans Ⅲ Shift HMO plans from 90 per- to the combine a high deductible of cent coinsurance coverage and norm. $2,500 to $5,000 with a tax-exempt fixed co-pays to requiring 80 per- cent coinsurance. This means ” health savings account when the Visit our website for information about the most cost- employees pay 20 percent of non- Jerry Konal, Mercer funds are used for qualified med- preventive medical care costs. effective energy strategies -- from calculating your ical expenses. counts were $6,393, compared Ⅲ Move to three-tiered carbon footprint and implementing energy efficiency “Companies prescription drug co-payment with PPO per capita costs of projects to procuring energy at significant savings. are changing plans, in which co-pays for non- $8,223. how they struc- formulary brand drugs are typically On the other hand, PPO enroll- What is your energy mission? ture plans and $50, formulary brands are $30 and ment increased to 65 percent this want to get more generic drugs are $10. year, from 59 percent in 2009. Our Energy Practice would like to help you achieve it. of the cost to en- Ⅲ Increase offerings of consumer- HMO enrollment remained the roll. Early on, to driven, or high-deductible, health same at 22 percent. encourage em- plans to 23 percent of employers, Attorneys on a Mission® “The increase in PPO plans is ployees to par- up from 19 percent in 2009. Some most likely due to the elimination Your mission is our mission. We never lose sight of it. ticipate, they of- 4 percent have made such plans of point-of-service or indemnity their sole offering, up from fered lower plans and migration from these 2 percent last year. Alter costs. Now em- plans to the PPO,” Alter said. ployers want employees to con- Despite the poor economy, em- tribute more to the costs,” Alter driven health plan costs, ployers continue to invest in well- A business advisory and advocacy law firm said. McLaughlan said. “Nationally, ness programs, with more employ- McLaughlan said that after pay- consumer-driven health plans are ers tying achievement of health 39533 Woodward Avenue, Suite 318, Bloomfield Hills, MI 48304 roll deductions, employers now the lowest-cost plans.” goals to incentives. 248.646.5070 are paying slightly higher costs for Konal said Mercer’s 2009 data In 2010, 17 percent of employers Carl J. Grassi Stephen M. Gross consumer-driven plans, at an aver- show that consumer-driven offered a full wellness program, up President Detroit Managing Member age $6,984 per year for single cov- health plans lower total benefit from 14 percent last year. Another erage, compared with $6,960 for costs. 16 percent in 2010 offered a wellness Chicago • Cleveland • Columbus • Detroit • West Palm Beach PPOs. For example, total per capita program through a health plan. “Michigan is an anomaly in this costs for consumer-driven health Jay Greene: (313) 446-0325, www.mcdonaldhopkins.com respect” with higher consumer- plans with health savings ac- [email protected] 20100524-NEWS--0027-NAT-CCI-CD_-- 5/21/2010 5:50 PM Page 1

May 24, 2010 CRAIN’S DETROIT BUSINESS Page 27 Barlow: Team Detroit creative director is advocate for city ■ From Page 3 politics are largely on display in Bogusky, known for its Burger King was still playing in the elevators. Ford look sage in its maneuvers to profit this year. blog entries he’s written for the and Microsoft commercials. Barlow worked on Saturn for avoid government bailouts. Team Detroit will roll out target- liberal Huffington Post. There is nothing in those pizza nine years at Hal Riney. Barlow said he saw what Ford ed campaigns for the Fiesta aimed “In a way, a strange new Ameri- commercials that couldn’t be done After that, he worked at was doing internally, and he liked at Hispanics and African-Ameri- can dream can be found here, amid by a local agency, Barlow said. TBWA\Chiat\Day on campaigns it, especially the focus on quality cans later this year. the crumbling, semi-majestic ru- The recent local agency shake- such as Absolut Vodka’s long-run- and real-world value. ins of a half-century’s industrial ups have brought the creative ning marketing involving bottle- More important, new cars were decline. The good news is that, al- economy problem into sharper fo- shaped objects. on their way and an ad exec’s job is Lycanthrope literature most magically, dreamers are al- cus, he said. In 2003, he joined JWT — it was easier if the product lives up to its And then there’s the werewolf ready showing up,” he wrote in a “It became more apparent when still J. Walter Thompson then — and billing. book. New York Times op-ed piece about Chevy fired Campbell-Ewald and worked in New York City on an ac- “I knew the product that was Sharp Teeth was published in the city last year. Chrysler fired BBDO,” he said. The count for the parent company of di- coming,” Barlow said. 2008. It’s about werewolves living He also sits on the board of Pub- GM brand said last month it was amond dealer De Beers, along with His competitors have been im- in modern Los Angeles — a con- lic Pool, a collective-run storefront cutting most ties with C-E after 91 Kleenex, Novell Inc., Welch’s Foods pressed by what Barlow and the cept inspired by Barlow seeing a contemporary art gallery recently years together, and BBDO was Inc. and Kraft Foods. agency have delivered since then. large pack of wild dogs near down- opened in Hamtramck. forced to cut its 450 local jobs when Now he’s telling the world about “The quality of the Ford work town L.A. at the height of the O.J. “It’s a pretty loose organiza- Chrysler Group L.L.C. shifted its mar- the Fiesta and its Sync technology coming out of his team is the best Simpson trial in 1994. tion,” he said. keting to agencies mostly out of and push-button start. Ford work I have seen in some time. He was living in a Chicago hotel He also wants the state to focus state after 50 years. It seems pretty fresh, confident in working on the Kraft account more effort on retaining Michi- tone and consistent,” said Garry when he started writing the book. gan’s creative talent, which he Ford’s theater Neel, president and CEO of the “I was going stir crazy and just said has emigrated at a pace to ri- Socrates to Saturn Barlow first began working on Birmingham office of McCann World- started typing this thing,” he said. val manufacturing jobs. Barlow didn’t always want to be Ford in 2006, when one of the au- group, which is GM’s corporate and Critics loved it. The Washington “The state can and should be an advertising guy. tomaker’s top executives, Mark global advertising agency. Post called it “briskly entertain- looking for ways to promote the After majoring in philosophy, Fields, wanted JWT to do a docu- Ford itself is pleased. ing” while The New Yorker said it creative economy,” he said. To he wanted to go into journalism. mentary on the company’s rebuild- “Toby is a wonderful creative was “a cheeky nod to epic poetry.” that end, he’s talked to politicians But his first child was on the way, ing plan — known as “The Way For- partner for Ford. He’s an uncon- Barlow says he’s working on and plans to have more conversa- so he went looking for whatever ward” — as it was unfolding. ventional thinker and an innova- new stuff, but his Team Detroit tions. He’s full of ideas, but he job he could find. A relative was a “I got to know the company pret- tive marketer. Above all, he’s an work and his Detroit advocacy eat doesn’t want to publicize them yet. client at what was then called Hal ty well,” Barlow said. even better person than he is cre- up most of his time. He’s also irked by the major com- Riney & Partners agency in San He was hired into his current ative director,” said Matt He does find time to watch panies in the state that don’t use Francisco, which was starting job the following year. It was amid VanDyke, director of marketing AMC’s 1960s advertising drama Michigan’s advertising agencies. what Barlow called a “farm team” Ford’s financial crisis that saw the communications for Ford and Lin- “Mad Men” — almost required “They are using advertising re- of very young advertising talent. automaker going so far as to put its coln Mercury, in an e-mail. viewing in the business — with sources outside of the state,” he “It was a great boot camp,” he iconic blue oval logo up as collater- April was the fifth consecutive mixed feelings. said. said. al in exchange for cash to survive. month that Ford sales increased “It’s a little like going home and The example he used is Ann Ar- His first work was creating the el- At the time, critics wondered if more than 20 percent month over watching work,” he said, chuck- bor-based pizza giant Domino’s Inc., evator music and messages for the Ford would make it. Barlow didn’t, month compared with the previ- ling. which employs Miami-based ad- new Mirage hotel-casino in Las Ve- and the subsequent collapse of Gen- ous year, and the automaker re- Bill Shea: (313) 446-1626, vertising agency Crispin, Porter + gas. He visited 15 years later, and it eral Motors Co. and Chrysler made ported a $2.1 billion first-quarter [email protected] 20100524-NEWS--0028-NAT-CCI-CD_-- 5/21/2010 6:20 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS May 24, 2010 JCI bid for Visteon units a sign of healthier industry said Aaron Bragman, a research quisition attorney with Detroit- Ford spokesman John Stoll de- that exploring a transaction of this Offer may analyst in the Troy office of IHS based Dykema Gossett P.L.L.C., said clined to comment on JCI’s offer. size and scope at this time could Global Insight. that while the He did say that Ford views both distract the company from its pri- Visteon posted its first annual potential JCI- JCI and Visteon as solid, long-term mary objective of completing the complicate profit in 2009, largely through a re- Visteon deal is supply partners. ongoing reorganization process in structuring undertaken in Chap- unique, there is Visteon finally emerged from a manner that enhances value for ter 11 bankruptcy protection. a high amount red ink last year. It posted net in- all of our constituents.” bankruptcy JCI’s automotive experience of activity going come of $184 million in 2009, dri- JCI’s offer, announced Friday business was in the black in its on behind the ven mostly by cost-cutting, includ- morning, came just before a bank- reorganization second fiscal quarter with revenue scenes in the lo- ing a $195 million fourth-quarter ruptcy court hearing scheduled for up 70 percent from the year-earlier cal M&A market gain from terminating retiree today during which a judge was BY RYAN BEENE period. that suggests health care benefits. expected to decide if Visteon’s re- AND DAVID BARKHOLZ That, combined with profitabili- deals may pick During its bankruptcy, Visteon organization plan could proceed. Miziolek CRAIN’S DETROIT BUSINESS ty at the Detroit 3 and loosening up. also sold nearly all of its U.S.-based It’s possible that the eleventh- capital markets, are signs that the “There’s a lot of underground manufacturing operations, as well hour offer could further delay Vis- Friday’s offer by Johnson Controls climate is improving for merger activity,” she said. “We’re sort of as some in Mexico, because the teon’s reorganization. Inc. to buy Visteon Corp.’s interiors and acquisition work in the supply at the cusp.” businesses lost money. “(JCI’s offer) is obviously some- and electronics business units chain. Visteon, spun off by Ford Motor Visteon said JCI’s offer stirred up thing that they’re comfortable highlights the increasing health of Van Conway, founder of Birm- Co. in 2000, makes automotive elec- a history of strained relations and proposing without any due dili- local auto suppliers. ingham-based Conway MacKenzie tronics, lighting systems, interior accused its rival of attempting to gence, and it’s a big enough num- JCI’s $1.25 billion offer shows Inc., said he’s not surprised to see parts and climate control prod- disrupt its exit from bankruptcy. ber that the judge probably won’t it’s willing and able to make such a deal in light of improving fi- ucts. Ford is still one of Visteon’s JCI “is a direct competitor that be able to ignore it,” said Kirk moves, and its interest in the Vis- nancial results at suppliers, grow- largest customers. stands to benefit by introducing Ludtke, senior vice president at teon divisions shows that the Van ing demand and a loosening of the Ford has spent hundreds of mil- delay and complexity into the Vis- CRT Capital Group L.L.C. in Stam- Buren Township supplier is final- capital markets. lions of dollars over the years to teon reorganization process,” Vis- ford, Conn. ly healthy enough to be an acquisi- “It doesn’t surprise me at all, help Visteon restructure, includ- teon said. Ryan Beene: (313) 446-0315, tion target. and I think you’ll see more of it,” ing taking back 23 money-losing “Visteon has had extensive and [email protected] “You’re seeing this drama be- he said. U.S. Visteon factories and opera- difficult experiences with (JCI) in David Barkholz is a reporter for cause Visteon is doing better,” Aleks Miziolek, a merger and ac- tions in 2005. prior transactions. We are mindful Automotive News Agency: San Francisco’s Goodby will handle Chevrolet work ■ From Page 3 and is on a lease term that extends Portland, Oregon-based Wieden + cis Worldwide, owned by Paris- some of the Chevy work it lost. were working on the Chevy ac- to 2020. Kennedy, Dallas-based Richards Group based advertising holding compa- That’s now believed to be untrue. count. Some are on multiple ac- The office was home to more and Southfield-based GlobalHue. ny Publicis Groupe SA. The sudden Instead, the agency will still counts, including other GM work. than 1,100 staffers as recently as Goodby is believed to have switch was among the first moves work on other General Motors ac- Campbell-Ewald, estimated by 2006, but as Chrysler succumbed to about 500 employees, and its most made by Joel Ewanick, hired earli- counts and assist the switch of Advertising Age to have $210 million growing financial problems and recent annual revenue estimate by er this month as head of marketing Chevy to Goodby. That’s expected in annual revenue before the loss of slashed ad spending the office Advertising Age is $125 million. for General Motors. to happen over the summer. Chevy, will open a new office in San headcount was reduced. Known for developing the “Got Klaus-Peter Martin, who handles “We will continue as one of Antonio on June 2 to service finan- Pat Sloan, senior vice president Milk?” campaign, the agency’s media communications for Chevy, GM’s family of agencies working cial services and insurance giant and corporate director of public af- clients include Hewlett-Packard, deferred all comment to Goodby. on GM customer relationship mar- USAA, which is based there. fairs for Omnicom’s DDB Worldwide, Frito-Lay/Pepsi-Co., Sprint, Yahoo, Chevy announced in April that keting, OnStar and Chevy local The office will have 15 staffers, deferred comment to Goodby. Nintendo, Denny’s and the National it was ending its 91-year relation- marketing efforts for Chevy deal- who will be a blend of new hires Two phone messages were left Basketball Association. The agency ship with Warren-based Campbell- ers,” said Bill Ludwig, C-E’s chair- and transfers from Warren, said Friday for representatives from had Saturn for nearly five years Ewald and moving the work to Pub- man and CEO, said in a statement. Pat Baskin, the agency’s public re- the building’s owner, Bloomfield until General Motors Co. shifted it licis. “We will also work with Chevy’s lations manager. Hills-based Kojaian Management Co. to Interpublic Group’s Los Ange- There was initial speculation new agency in the transition over Bill Shea: (313) 446-1626, The space is available because les-based Deutsch in 2007. within the advertising industry the months ahead.” [email protected] Chrysler moved its work from Chevy ended up at Goodby just that, because of the Goodby deal, The agency has declined to say Crain’s reporter Daniel Duggan BBDO to Minneapolis-based Fallon, weeks after it was awarded to Publi- Campbell-Ewald could get back how many of its 1,100 employees contributed to this story. Shared services: State office would assist local governments ■ From Page 3 they’ve already been asked to en- really smart contract negotiators” and private sector and prepare fi- ernmental and Regional Affairs CEO group Business Leaders for dure much cost-cutting. because of the complexity of shared nancial models that local govern- that she chairs. Michigan. In the wake of scarce tax dollars service-provider agreements. ments could replicate. Samantha Harkins, legislative Crain’s panelist Mike Jander- and resistance to tax increases, And a “shared service capital “Local government likes order, associate at the Michigan Municipal noa, Business Leaders first vice some local units have undertaken fund” that could help cover startup consistency,” she said. “What I’d League, said the office “could be chairman and principal of Bridge or explored consolidation, inter- costs of reforms and serve as an in- like this legislation to do more helpful” to municipalities and is Street Capital Partners L.L.C. in governmental cooperation and ser- ducement would also be helpful, he than anything else is to create a an interesting idea as a resource, Grand Rapids, said legislation vices sharing. said. sense of orderly reconstruction.” but there are other pieces needed passed in February by the Senate, Goldsmith earned a reputation Donigan’s legislation incorpo- Donigan said the office could to provide a broader solution to amending PA 312 and the Urban for innovation to streamline gov- rates some of the recommendations identify and catalog, as a basis for municipalities’ challenges. Cooperation Act, did not accom- ernment costs and improve ser- in a late-2009 report by the public- revenue sharing, specific basic The biggest need, she said, is fi- plish nearly what was needed, an vices and was both mayor of Indi- private Legislative Commission on services that local governments nancial resources, including rev- assessment shared by the munici- anapolis and executive of Marion Government Efficiency, which exam- provide. It could also recommend enue sharing. In terms of collabo- pal league. County, Ind. “Consolidated gov- ined every area of the state budget. ways for local governments to in- ration and cooperation, Harkins Overall, Business Leaders is ernment, per se, does not neces- In the area of local government crease their authority to tax resi- said, key issues involve legislative pursuing an agenda that includes sarily produce efficiencies,” he and revenue sharing, the commis- dents for additional services. changes. tax restructuring, budget and said. “Consolidation helps if it’s sion’s recommendations included “If revenue sharing isn’t going That includes changing Public spending reforms to position the set up in a way to force account- establishing an intergovernmental to work, we have to find another Act 312 of 1969, which mandates state to become among the top 10 ability.” advisory office “to eliminate barri- method,” she said. binding arbitration for police and in the country, and is seeking to He said a consolidation that ers and increase the likelihood of Her bill also calls for a fund for fire union contract disputes with engage Michigan residents and leaves “the vestiges of all the old successful local government efforts grants that could be awarded to sup- communities, and reforming the businesses as the November elec- stuff, puts it together, doesn’t in- to share services, collaborate, con- port pilot programs and joint ven- state Urban Cooperation Act of tions approach. herently produce value.” solidate and increase efficiency.” tures, and loans to local units that 1967 and similar acts to eliminate a “We want to make sure that we Asked whether a state office to as- For example, Donigan said, the collaborate on the purchase or con- requirement that when a service have a vision for this state … and a sist local governments is a good idea office could identify opportunities struction of capital-intensive items. merger occurs, the higher wages vision that is focused on creating or adds bureaucracy, Goldsmith as well as barriers between re- Donigan hopes to have a hearing and benefits must be paid. jobs, jobs, jobs,” Jandernoa said. said that it depends what the entity gions, provide resources and ser- in June on the bill, which is before Those items are also part of the Amy Lane: (517) 371-5355, does. He said it should “have some vices of experts from the public the House Committee on Intergov- legislative agenda for statewide [email protected] 20100524-NEWS--0029-NAT-CCI-CD_-- 5/21/2010 6:32 PM Page 1

May 24, 2010 CRAIN’S DETROIT BUSINESS Page 29 Delphinus: Mammogram alternative gets funding www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 1 PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] promise of the technology and its MRI machines cost between that has devel- the availability of good people, the EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] potentially big worldwide market $1 million and $3 million com- oped its own ul- timing of technological advance- MANAGING EDITOR Andy Chapelle, (313) 446- enough to exceed Karmanos’ ex- pared to his company’s target trasonic breast ments and, in this case, the timing 0402 or [email protected] ASSISTANT MANAGING EDITOR/FOCUS Jennette pectations. price of about $400,000 for its de- imaging proto- of competing technologies that Smith, (313) 446-1622 or [email protected] Beringea’s investment comes vice, about the same price as a dig- type. showed promise but are strug- ENTREPRENEURSHIP EDITOR Michelle Darwish, from the state of Michigan’s ital mammography system. Carson’s team gling,” said Hugo Braun, a general (313) 446-1621 or [email protected] COPY DESK CHIEF Gary Piatek, (313) 446-0357 $175 million InvestMichigan Growth With Delphinus technology — works with Gen- partner at North Coast. or [email protected] ASSISTANT NEWS EDITOR Jeff Johnston, (313) Capital Fund it co-manages with Cred- “delphinus” is Latin for dolphin — eral Electric Glob- “The most important timing of 446-1608 or [email protected] it Suisse. a woman lies face down on a plat- al Research and all is having Bill Greenway able to DATA EDITOR Anne Marks, (313) 446-0418 or It is Beringea’s eighth invest- form that has a hole cut in it for a is in the seventh join the company at a time it’s [email protected] WEB EDITOR Christine Lasek, (313) 446-0473, ment from the fund. Amounts com- breast to hang through. The breast Littrup year of a $13 mil- ready to explode on the market, [email protected] mitted by the individual VC funds is immersed in warm water and lion, 10-year and you couldn’t find someone bet- WEB DEVELOPER Steve Williams, (313) 446- 6059, [email protected] are not being disclosed. surrounded by an ultrasonic ring NIH grant. ter,” he said. EDITORIAL SUPPORT Robertta Reiff (313) 446- Karmanos officials can only that sends sound waves through the He said his prototype is farther Greenway said the bulk of the 0419, YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- hope Arboretum has the same breast. from the market than Delphinus’ $8 million in funding will be used 1687 TIP LINE (313) 446-6766 kind of success with Delphinus Computer algorithms produce prototype. It does ultrasonic imag- to “turn a scientific prototype into REPORTERS that it had with two other portfolio images by interpreting slight dif- ing in conjunction with traditional a commercial prototype ready to Ryan Beene: Covers auto suppliers, steel, higher education and Livingston and Washtenaw companies. ferences in the speed of sound mammogram imaging, and Carson take to market. We’ve solved the counties. (313) 446-0315 or [email protected] Last October, Ann Arbor-based waves as they pass through vari- hopes to add optical imaging. scientific challenges, now it’s a Daniel Duggan: Covers retail, real estate and HandyLab Inc. was sold for $275 mil- ous forms of tissue, including can- After the NIH grant expires, GE matter of solving engineering chal- hospitality. (313) 446-0414 or [email protected] lion, and in 2008, Ann Arbor-based cer tissue. The key to possible com- would have to decide whether to lenges. That’s not just making it Jay Greene: Covers health care, insurance and the HealthMedia Inc. was sold for more mercialization has been advances fund further commercialization or cheaper, it’s making it better. Bet- environment. (313) 446-0325 or than $100 million. in information technology that al- let UM seek VC funding for a spin- ter to look at, easier to use, cheap- [email protected]. Chad Halcom: Covers law, non-automotive The timing last November of the lowed for the massive amount of off company. er, with more automated parts to manufacturing, defense contracting and Oakland announcement of Delphinus’ spin- data acquisition and data process- Greenway hopes to get approval speed things up and get faster and Macomb counties. (313) 446-6796 or [email protected]. off was particularly fortunate, and ing that made from the U.S. Food and Drug Adminis- imaging. It takes hours, today, to Tom Henderson: Covers banking, finance, coincidental. that improved tration to allow commercial use in get an image. Our goal is to have technology and biotechnology. (313) 446-0337 or [email protected]. Earlier that week, the U.S. Preven- imaging possi- as soon as two years, pending fur- an image in the clinician’s hand in Nancy Kaffer: Covers small business, the city of tive Services Task Force recommend- ble. ther tests. nine minutes. And we need rock Detroit, Wayne County government. (313) 446- ed against annual mammogram “This is a big Greenway said the U.S. market solid reliability.” 0412 or [email protected]. Bill Shea: Covers media, advertising and screenings for women between the statement, be- for breast-imaging equipment is Greenway said FDA approval marketing, entertainment, the business of sports, ages of 40 and 49 because of the risks cause it’s been about $2 billion, and the world- could come in three to four years and transportation. (313) 446-1626 or [email protected]. and costs associated with false posi- decades of try- wide market is about $10 billion. for Delphinus to take on a second, Nathan Skid: Multimedia reporter. Also covers the tives. The task force said women of ing, but there’s “We hope to be north of $100 mil- even larger market — screening food industry. (313) 446-1654, [email protected]. Sherri Begin Welch: Covers nonprofits and that age range should discuss with probably a mar- lion in sales in five to seven younger women to alert them if services. (313) 446-1694 or [email protected] their doctors the option of screen- ket now for years,” he said. they are prone to breast cancer LANSING BUREAU ings every other year. Duric what Neb “We like investments that drive based on breast density and other Amy Lane: Covers business issues at the Capitol, telecommunications and utilities. (517) 371- Ultrasonic screening holds the (Duric) is doing,” said Dr. Paul out costs and bring efficiencies to physical factors, and, if they are, 5355, FAX (517) 371-2492, [email protected]. or promise of reducing false positives Carson, professor of radiology at medical care,” said Michael Gross, reduce lifestyle risk factors. 115 W. Allegan, Suite 220, Lansing 48933. and, as a result, unnecessary biop- the University of Michigan Medical a managing director at Beringea. Greenway plans to hire nine or 10 ADVERTISING

sies, Karmanos researchers say. School. “He’s getting very good re- “If the company continues to repli- employees in the next two or three ADVERTISING DIRECTOR Marla Downs, (313) Moreover, it eliminates the pain sults. He’s got a lot to offer and he’s cate its test results, they’ll cut months, including software engi- 446-6032 or [email protected] SALES INQUIRIES: (313) 446-6052; FAX (313) of compression for women and the getting close to commercializa- huge amounts of cost from health neers, and be at 50 to 100 in three 393-0997 risks of radiation in traditional tion.” care. There are 2 million unneces- years. ADVERTISING SALES Jeff Anderson, Matthew J. Langan, Lori Tournay Liggett, Tamara Rokowski, mammography, and it is cheaper Duric is the physicist who has sary breast biopsies worldwide, “I’m excited at the chance to Kimberly Ronan, Cheryl Rothe, Dale Smolinski than magnetic resonance imaging. been part of the Delphinus devel- which is $2 billion in unnecessary make a lot of money and to make CLASSIFIED SALES (313)-446-0351 Delphinus CEO William Green- opment team for 10 years and is annual health care costs. the world a better place,” said MARKETING MANAGER Irma Clark MULTIMEDIA MANAGER Alan Baker, (313) 446- way estimated the cost to a med- the company’s chief technical offi- “The market for breast cancer di- Braun. “Delphinus is going to have 0416 or [email protected] ical facility of an MRI image — not cer. Dr. Peter Littrup, director of agnostics and screening is very a significant impact on the health of EVENTS MANAGER Nicole LaPointe the fee it bills, which has to cover imaging and radiological research large and ripe for change. The mar- women. Karmanos had the vision to MARKETING ARTIST Sylvia Kolaski SALES SUPPORT Suzanne Janik, YahNica Crawford the cost of the machine, but the at Karmanos, is Delphinus chief ket is crying out for solutions, put a lot of money into it over the CIRCULATION Candice Yopp, Manager. cost of just the image — at $200 to medical officer. now.” years, and it’s going to pay off.” MARKETING COORDINATOR Kim Winkler $250, about 15 times more than the Carson also heads up a team at “Timing is everything — the Tom Henderson: (313) 446-0337, PRODUCTION MANAGER Wendy Kobylarz PRODUCTION SUPERVISOR Larry Williams, cost of an ultrasound image. the UM Comprehensive Cancer Center timing of the market, the timing of [email protected] (313) 446-0450 CUSTOMER SERVICE

MAIN NUMBER: Call (888) 909-9111 or write [email protected] SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state Dealers: Regaining customers is next challenge rate for surface mail. Call (313) 446-0450 or (888) 909-9111. ■ From Page 1 SINGLE COPIES: (888) 909-9111. REPRINTS: (800) 290-5460, ext. 125; (717) 399- 1900, ext. 125; or ashley.zander@theygsgroup cars from GM. It was forced to buy ing arbitration hearings. Ⅲ Economic viability. .com. them through other dealers, but “This is a great first step,” Kirk- Ⅲ Conditions of the dealership’s TO FIND A DATE A STORY WAS PUBLISHED: when overall inventories were low I pointed to one of sey said of Tennyson’s reopening. market territory. (313) 446-0367 or e-mail [email protected]. in metro Detroit, Mark and other “ “But it’s just one of three dealers Ⅲ Conformity with OEM crite- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY wind-down dealers were left with the cars and I said, here. It shows us there is hope for ria used to terminate franchises. CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain the cars other dealers did not want. the others.” Ⅲ Experience and history in the PRESIDENT Rance Crain Under the terms of the wind- ‘Nobody sell that Three messages were left by community. SECRETARY Merrilee Crain down agreement with GM, a dealer- Crain’s for Tennyson owner Kit Ⅲ Manufacturer’s business plan. TREASURER Mary Kay Crain Executive Vice President/Operations ship can stay in business as long as car.’ Tennyson last week with no re- Plante & Moran’s Eagan said William A. Morrow there is at least one car on the lot to ” sponse. news of LaRiche’s victory means Group Vice President/Technology, Chris Cabana, Mark Chevrolet Manufacturing, Circulation be sold. With five left, Cabana said, Last summer as part of the bank- hope for other dealers preparing Robert C. Adams Vice President/Production & Manufacturing he started to get pretty tense. Now, Cabana said, the focus is ruptcy filings, GM announced it was for arbitration hearings, which Dave Kamis “I threw a sold sign on a couple on ordering new cars and hiring. reducing its 6,000-dealer network by will extend through June. Chief Information Officer of them,” he said. “And I pointed to Friday, Cabana was ordering about 2,400 dealerships. Chrysler “Our expectation is that we will Paul Dalpiaz Corporate Circulation/Audience Development one of the cars and I said, ‘Nobody new inventory. His task is to in- Group L.L.C. closed 789 of its dealers be hearing of other dealers being Director sell that car.’ ” crease the inventory from 70 cars as part of its bankruptcy, reducing reinstated in the weeks ahead, es- Kathy Henry G.D. Crain Jr. Founder (1885-1973) But the inventory of cars re- to 300 by the end of the summer. its dealer count to about 2,400. pecially higher-volume terminat- Mrs. G.D. Crain Jr. Chairman (1911-1996) mained low, along with the sales, He plans to hire five or six new Tides turned when the Consoli- ed dealers in larger metro mar- EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) Cabana said, typically around 40 sales staffers and is planning to dated Appropriations Act of 2010, kets,” he said. 446-6000 in stock at a time. Monthly sales hire more mechanics and porters. signed by President Obama in De- But as other dealers across the Cable address: TWX 248-221-5122 AUTNEW DET Reinstatement of Tennyson cember, allowed terminated deal- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 were roughly 20 to 30 per month, country have lost, there is also sur- is published weekly, except for a special issue the compared to 100 in 2005. drew a rally in Livonia, led by ers to seek reinstatement through vivor’s guilt, said LaRiche. third week of January, a special issue the fourth week of August, and no issue the third week of As a result, the 10-person sales Mayor Jack Kirksey. Last sum- binding arbitration. “It’s bittersweet,” said Scott December by Crain Communications Inc. at 1155 mer, Chrysler closed Livonia The law requires arbitrators to Gratiot Ave., Detroit MI 48207-2732. Periodicals staff was pared down to six. LaRiche. “We’re extremely excit- postage paid at Detroit, MI and additional mailing The good news came before the Chrysler-Jeep, and GM put John Ro- consider seven criteria: ed, but I feel horrible for those who offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation arbitration hearing when GM gin Buick on the wind-down list. Ⅲ Profitability in the past four had it taken away. Natural attri- Department, P.O. Box 07925, Detroit, MI 48207- agreed to reinstate Mark. Thav Kirksey said the dealer corridor years. tion should be the way to take care 9732. GST # 136760444. Printed in U.S.A. Entire contents copyright 2010 by Crain Gross Steinway & Bennett P.C. in in Livonia still needs to be rebuilt, Ⅲ Record of meeting sales and of this.” Communications Inc. All rights reserved. Reproduction or use of editorial content in any Bingham Farms represented the and he hopes the other two dealers performance goals under a dealer- Daniel Duggan: (313) 446-0414, manner without permission is strictly prohibited. Cabana family. will be successful in their upcom- ship’s franchise agreement. [email protected] 20100524-NEWS--0030-NAT-CCI-CD_-- 5/21/2010 6:28 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS May 24, 2010 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF MAY 15-21

repeated tonight at 11 p.m. ny based in Canton, Ohio, won’t participate in the Cummings’ guest on the Tobacco exec for an undisclosed amount, U.S. economic recovery, first monthly show was company officials said. members of Business Lead- DIA: Telethon, Ⅲ Shuttered General Mo- ers for Michigan said at the Sting, who is about to em- bark on a world tour backed buys $25M stake tors Co. plants in Detroit, group’s Leadership Sum- by an orchestra. Livonia, Pontiac, Romulus, mit in Lansing. Those without satellite ra- in Borders Van Buren Township and Fueled by declines in millage try dio will be able to listen at Ypsilanti would be among property values and prop- www.linkedonline.com. ennett LeBow, chair- those in Michigan that erty-tax revenue, residents “I was having dinner with man of tobacco com- would share some $836 mil- can expect to see worsening Scott Greenstein, president of B pany Vector Group lion in proposed federal declines in services and a Sirius XM, and he scrolled Ltd. (NYSE:VGR), has ac- cleanup funds. The plan declining quality of life un- unrelated must still be approved by through my iPod, then sug- quired a $25 million stake less changes are made, gested that I do this show in Ann Arbor bookseller U.S. Bankruptcy Court for New business leaders said. he Detroit Institute of call (313) 963-8547. linking classical to contem- Borders Group Inc. LeBow York’s southern district. Ⅲ Memphis-based Cooper Arts aims to raise porary music,” Cummings will acquire 11.1 million Hotels has opened a six-sto- T $125,000 during a said. “The next day I re- shares at $2.25 per share. ry Hampton Inn & Suites near telethon scheduled for Former ad exec Mike OTHER NEWS ceived an e-mail from him LeBow will take over as Detroit Metropolitan Airport. Wednesday to help fund op- Brogan writes thriller looking to set it up.” chairman of the board of di- Ⅲ Royal Oak issued lay- Ⅲ Michigan’s local gov- erations and raise aware- rectors, prompting the res- off notices to 57 employees, ernments would lose about ness but not to bolster any Local author and former ignation of current board including 21 police officers 4 percent of their state tax sort of support for a millage ad agency executive Chamber weighs in chairman Richard McGuire. and 17 firefighters, but may revenue-sharing payments, plan, it said. Mike Brogan has a save some jobs if the city’s The DIA’s new fiction thriller on Internet rules starting Oct. 1, under a bill unions accept proposed passed by the Republican- board of direc- out that is set A federal proposal to regu- ON THE MOVE concessions, City Manager tors last week au- within the high- late broadband under rules led state Senate, AP report- Ⅲ Federal-Mogul Corp. Don Johnson said. The lay- ed. Differences between the thorized the mu- stakes world of governing landline phone offs take effect June 26. CFO Jeff Kaminski will leave Senate version and one seum to develop a advertising. The service has touched off Ⅲ Detroit political con- his position at the South- backed by the Democratic- property tax mill- story plays out Michigan opposition. sultant Sam Riddle pleaded field-based auto supplier on led House will have to be age proposal to sup- in Manhattan Lawmakers in the state guilty Thursday to conspir- June 4 to pursue another worked out before either port its operations, but draws upon Senate last week passed res- acy in a deal that closes two opportunity. He resigned becomes law. following a Febru- Brogan’s days olutions opposing the move, federal corruption cases May 11. Ⅲ Wayne County is plan- ary poll of 600 resi- working in as did the state House a week against him, AP reported. Ⅲ Marcy Klevorn and ning extended unpaid holi- dents that showed Detroit. before. And the Detroit Re- Riddle admitted passing strong support for Madison’s gional Chamber on Friday Matthew DeMars have been day breaks for about 700 appointed to the board of money to a Southfield coun- such a millage. Avenue is Brogan’s third sent out an alert to its mem- cilman to win favors for a union workers as part of a bers, urging them to contact trustees at Lawrence Techno- The daylong telethon, novel, and the characters pawnshop that was trying cost-cutting effort, AP re- the Federal Communications logical University in South- which will air on WDIV-Chan- are compared to the “Mad to open in that Detroit sub- ported. Joyce Ivory, presi- Commission and Michigan field. nel 4, was planned as a mem- Men” TV show but with urb. The government dent of AFSCME Local 1659, members of Congress to “let Ⅲ Charles Beckham, a bership and annual fund dri- women running the show. agreed to drop charges in a said the union will fight the them know the Detroit re- close friend and political ve to mark the museum’s Could there be any glimpses separate case involving plan. gion’s business community adviser to Detroit Mayor 125th anniversary, well be- of Brogan’s wife, Brogan & Riddle’s work for former Ⅲ A trio of bills that is opposed, as well.” Dave Bing, said he is leaving fore the DIA board’s vote Partners CEO and Founder Detroit councilwoman Mon- would authorize a regional The proposal came earlier Bing’s administration, say- last week. As part of the Marcie Brogan? Brogan said ica Conyers. mass transportation au- this month from FCC Chair- ing “it’s now time to turn telethon, live and prerecord- the characters are conglom- Ⅲ Southeast Michigan thority for metro Detroit man Julius Genachowski, who the page on another chap- ed spots will air throughout erations of people he’s needs a federal jobs pro- made it through the state would also like to require In- ter,” the Associated Press the day, some featuring known in Detroit, New gram, Paul House Intergovernmental ternet providers to treat all reported. Howdy Doody from the little- York and in Europe and his Gieleghem, and Regional Affairs Com- own memories of joy and traffic flowing over a net- known Paul McPharlin Pup- chairman mittee on Tuesday and now heartbreak at the shifting of work equally. petry Collection the DIA has of the Ma- move to the full House. accounts. For example, look But opponents, like the COMPANY NEWS had in storage. comb Coun- Ⅲ Traffic at the Ambas- at Chevrolet’s recent deci- chamber and AT&T, say it Ⅲ Detroit-based Com- The DIA hopes to raise ty Board of sador Bridge was up 12 per- sion to move the Chevy could lead to price regula- puware Corp. (Nasdaq: the money through dis- Commis- cent from January through business from Warren- tion and hamper a network CPWR) reported net income counted memberships and sioners, April compared to the same based Campbell-Ewald. (See that has grown without reg- of $37.4 million on revenue donations to support opera- said dur- time last year but remains related stories, Page 3) ulation. of $230 million for the fourth tions and to help fund a new ing a Big 4 down 43 percent compared “Much of it is taken from “To subject broadband In- quarter, compared with net Gieleghem permanent puppet gallery panel at a to a decade ago, according the highly competitive and ternet to 80-year-old tele- income of $48.4 million on at the museum. Michigan Chronicle-spon- to the Public Border Opera- sometimes cutthroat world phone regulations would in- revenue of $253.4 million a sored Pancakes & Politics tors Association. of agency consolidation,” hibit the growth of the year earlier. breakfast in Birmingham. Ⅲ More than 2,100 stu- DEC marks 75 years Brogan said. “Somebody Internet, investment in the Ⅲ Troy-based Hayman Co. Oakland County Executive dents at 14 Detroit Public Happy birthday, Detroit rolls out the champagne and network and stall the jobs it has signed Canadian auto L. Brooks Patterson objected Schools high schools have Economic Club. somebody rolls out the creates,” AT&T Michigan supplier Magna International to the idea, invoking the signed up for the Detroit Col- About 650 supporters of heads.” President James Murray said. Inc. to fill a 100,000-square- federal stimulus package, lege Promise, which offers one of the strongest speak- The book is available foot vacancy in the Troy which he criticized as inef- $500 per year toward under- ers’ forums in the country through Amazon.com, Borders, Technology Park left when What’s the name? fective. graduate tuition at Michi- turned out last week at the Barnes and Noble and MikeBro- the former General Motors Ⅲ Detroit Public Schools’ gan public colleges and uni- club’s ancestral home — the ganBooks.com. Brogan also A press release sent out Corp. pulled out. K-12 system was again versities. Westin Book Cadillac hotel. plans local book signings. Friday morning indicated Ⅲ Valassis Livonia-based shown to be the worst-per- A special video captured that the Rock Financial Show- Communications Inc. said it forming large central city the club’s 75 years, starting place in Novi had plans to OBITUARIES Peter Cummings to host has reached a deal with district in the nation, ac- from its Depression-era change its name by the be- Sunnyvale, Calif.-based Ya- cording to reading test re- Ⅲ Bob Ebeling, co-founder launch to the National Sum- Sirius radio show ginning of 2011. The yet-to- hoo Inc. to access the search sults from the national Trial of contracting company mit last year. be-released name would not Peter Cummings, manager include Livonia-based Rock engine giant’s online adver- Urban District Assessment. Ebeling and Hicks, died May To celebrate its history, of the portfolio for the Max Financial or Quicken. It could tising capabilities for local Seventy-three percent of 10. He was 87. the club dipped into more M. Fisher Family and chair- return to the former “Novi advertisers. the district’s fourth- Ⅲ Patrick Ledwidge, mem- than 60 boxes of archives man of the Florida-based Expo Center” name, which Ⅲ Dearborn-based Inter- graders and 68 percent of ber-share- that have been housed at Ram Real Estate Group, is to was used before the naming national Automotive Compo- eighth-graders scored be- holder in the Detroit Historical Muse- host a new Sirius XM radio rights deal with Quicken. nents Group Inc. expanded low the basic level of read- the Bloom- um. Beth Chappell, CEO of show called “Linked,” Center owner Blair Bowman its growing presence in ing proficiency. field Hills the club, said photos and which aims to link classical then sent out a second mes- China with a new automo- Ⅲ Detroit’s New Center office of excerpts of famous speak- music to more contempo- sage 30 minutes later “re- tive carpet manufacturing Council is discontinuing Dickinson ers will be compiled in an rary forms of music. calling” the press release. plant near Beijing, the sup- Comerica Cityfest, its 21- Wright anniversary volume, They The show is to be aired on Asked to comment on the plier said. IAC has year-old festival, to redirect P.L.L.C. Said it Here, to be pub- Sirius satellite radio and matter, Bowman said send- launched four operations programming resources and board lished this fall. Pre-publica- can be heard on the Sirius ing the release was an over- in China since April 2008. into the New Center Park it chairman Ledwidge tion orders are $25; in Sep- XM Pops, Channel 77 on XM sight. Ⅲ Wayne-based EQ-The opened last week. of Citizens tember, the book will be and Channel 79 on Sirius sta- “It wasn’t supposed to go Environmental Quality Co. has Ⅲ Michigan must re- Research Council of sold at club luncheons for tions. The first show was to out. There’s nothing to be acquired Envirite, a waste align its tax collection Michigan, died Wednesday. $35. For more information, air over the weekend and be said right now,” he said. treatment services compa- with its spending or it He was 82. DBpageAD.qxd 4/12/2010 9:39 AM Page 1 DBpageAD.qxd 5/13/2010 11:14 AM Page 1

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