DETROIT BUSINESS MAIN 11-06-06 A 1 CDB 11/3/2006 6:15 PM Page 1

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http://www.crainsdetroit.com Vol. 22, No. 45 NOVEMBER 6 – 12, 2006 $1.50 a copy; $59 a year

©Entire contents copyright 2006 by Crain Communications Inc. All rights reserved STATE OF THE AFTERMARKET THIS JUST IN Management buys majority Granholm of Belfor in $300M deal The big Management bought a majority stake for more than $300 million in Ger- many-based Belfor Interna- tional GmbH, the world’s leads in local largest insurance restora- squeeze tion company, and will move its headquarters to Birmingham, returning the company to Michigan. Belfor had been owned Imports, counterfeits put pressure by German-based Haniel Group. It was purchased by on manufacturers fundraising Belfor Holdings Inc., which is 25 percent owned by Haniel and 75 percent owned by BY BRENT SNAVELY company management. JP- CRAIN’S DETROIT BUSINESS U.S. AFTERMARKET DeVos trails Morgan Chase underwrote The total U.S. motor-vehicle Competition from China is the purchase. The compa- aftermarket has grown by 44 ny will do business as putting pressure on local after- percent since 1998. Figures 2-to-1 in cash Belfor Holdings. market manufacturers despite in- below in billions. Sheldon Yellen, who had creasing demand that is expected Medium- and heavy-duty been CEO of Birmingham- to push total industry sales to vehicles from region based Belfor U.S.A., will be $204 billion this year. Cars and light trucks BY AMY LANE president and CEO. Bernd Executives from Visteon Corp., CAPITOL CORRESPONDENT HO GAVE TO WHOM Elsner, who had been pres- Federal-Mogul Corp., SKF Automo- $278.3 W ? ident and CEO of Belfor In- tive and Affinia Group said that the $73.9 LANSING — Gov. Jennifer Prominent donors to gubernatorial ternational, will be chair- North American aftermarket $235.8 Granholm has out-fundraised Re- campaigns, Page 35. man and CEO of European manufacturers’ profits and capi- $61.5 publican contender Dick DeVos by a and Asian operations. tal spending needs are under in- $197.3 ratio of more than 2-to-1 in South- name recognition and the region’s creasing pressure due to import- $204.4 The company expects $55.3 east Michigan, going into this Democratic base. revenue this year of about ed products from China and other week’s election. But John Truscott, press secre- $900 million and has 3,350 countries where low-cost labor is $174.3 Data researched and compiled for tary to DeVos, said many of employees in 27 countries. available. Crain’s by nonpartisan think tank Granholm’s dollars reflect contribu- It has about 225 employees Plus, the industry continues to $142.0 Public Sector Consultants Inc. show tions from political action commit- in Southeast Michigan, battle the sale of counterfeit Granholm has raised $5.5 million tees “and special interests located in with offices in Birming- parts, both in North America and from Southeast Michigan, compared Southeast Michigan, and we’re not ham, Livonia, Ann Arbor overseas, while it wrestles with with $2.4 million for DeVos. accepting special-interest money. and Troy. wholesalers and retailers who Campaign experts say “At the same time, we have more Belfor began business as don’t want to accept price in- Granholm’s fundraising isn’t sur- See This Just In, Page 2 creases, even though raw-materi- prising, given her incumbency, See Donors, Page 35 al prices have skyrocketed in re- cent years. 1998 2002 2006* The result? Manufacturers are EEKING MERICAN scrambling to shift some of their * Estimated S A manufacturing capacity overseas Source: Automotive Aftermarket DREAMERS so they can compete. Industry Association. Commercial vehicles to get The executives spoke during a In many ways, metro Detroit roundtable discussion hosted by MORE AFTERMARKET was built by the hopes and dreams of people from other Crain’s Detroit Business and ■ Transcript online: countries. And, foreign-born sponsored by Ernst & Young L.L.P. Aftermarket execs discuss “The fastest- counterfeiting and new border-crossing fees entrepreneurs will be vital to the region’s future. Crain’s growing por- competition in a roundtable Detroit Business wants to tell tion of the af- presented by Crain’s and BY ANJALI FLUKER spections and fees through the North their stories. termarket is in Ernst & Young L.L.P. See CRAIN’S DETROIT BUSINESS American Free Trade Agreement. We are seeking nominations for what has eu- crainsdetroit.com. ■ The rule, which removes inspec- first-generation immigrants who phemistically Fast and furious: Specialty aftermarket parts are in Commercial vehicles traveling tion exemptions for imported Cana- have had business success for called value demand. Page 32. from Canada to the U.S. will soon dian fruits and vegetables, was pub- our American Dreamers special lines, economy section to be published March ■ New big player: Affinia have to pay agricultural-inspection lished in the Aug. 25 Federal lines … and so 26. Group restructures as it fees to a division of the U.S. Depart- Register and was announced in an you can’t af- ment of Agriculture If you’d like to nominate looks to grow internationally. — whether or not Aug. 28 USDA press release. ford to over- yourself or someone else for McCabe Page 33. they import agricultural products. The rule also provides for all recognition in American look that,” Jer- ■ Crain’s list: The largest The USDA Animal and Plant Health commercial vessels, automobiles Dreamers, please visit ry McCabe, senior vice president local aftermarket Inspection Service beginning Nov. 24 and trucks, railroad cars and air- crainsdetroit.com and fill out of business architecture for manufacturers. Page 33. will be charging the fee, which was crafts, as well as international pas- the nomination form. Affinia Group, said during the Expanded version at charged for years on the Southern sengers entering the U.S. from Nominations are due by Dec. crainsdetroit.com. U.S. border. The U.S./Canada bor- 15. See Aftermarket, Page 32 der was previously exempt from in- See Fees, Page 36

Lack of sleep bedevils CRAIN’S LISTS many executives, Largest airlines, Page 17 NEWSPAPER Page 23 Largest metro employers, Page 18 DETROIT BUSINESS MAIN 11-06-06 A 2 CDB 11/3/2006 6:39 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS November 6, 2006

mercial buildings, which General Dearborn as well as The Reserve, ing the silent phase of the non- The Biras Creek Resort includes THIS JUST IN Motors Corp. vacated about four a restaurant in Chicago. profit’s fundraising campaign for 33 luxury suites, which are in years ago, is scheduled to hit the — Brent Snavely the new building. store for a $1 million-plus renova- ■ From Page 1 auction block Dec. 13. — Sherri Begin tion project. The acquisition Len Tosto, director of consult- price was not disclosed. The re- Quality Awnings & Construction in CREW meeting in Detroit ing and investment brokerage for sort has received accolades from Dearborn in 1946 and became Inre- Ave Maria sells 12 properties Southfield-based Colliers Interna- Detroit will host the Midwest travel press, and the Johnsons con L.L.C. in 1981. Taylor-based tional, said there is no minimum regional conference of Commercial Ave Maria College has sold all plan to add a spa and enhance the Masco Corp. bought 25 percent in bid for the 250,000-square-foot, Real Estate Women. The confer- but one of its 13 Ypsilanti proper- marina and docks, said Victor In- 1997 and the rest in 1999 before eight-story Ottawa Tower. ence is scheduled for May 3-5 at ties in preparation for consolida- ternational, which is the manag- selling it to Haniel in 2001, when The building, adjacent to the tion of its academic operations to ing entity on the deal. the name was changed to Belfor. the Detroit Marriott at the Re- Phoenix Plaza parking garage, had the Ave Maria University campus in — Jennette Smith — Tom Henderson naissance Center and is expected been on the market since GM left, to attract more than 200 real es- Naples, Fla., in May when its last DTE vice chair to retire Tosto said. It could be used for tate professionals from 11 states. two local students graduate. VC group names new president medical or office space, he said. The college sold most of the for- DTE Energy Co. Vice Chairman CREW-Detroit secured the event Colliers lists the Ottawa Tow- mer dorm buildings and several Mary Campbell, one of the Stephen Ewing plans to retire after working on the bid for two er’s sale price at $6.5 million and houses to Wilson White Co. and ENY founders of the state’s oldest ven- from the com- years. CREW’s mission is to ad- the lease rate as $10.50 a square ture-capital company, Ann Ar- pany at the end vance the success of women in Properties L.L.C., which rent to foot. The building is owned by of this year, commercial real estate. Eastern Michigan University stu- bor-based EDF Ventures, was Marty Goldman. DTE said in a — Jennette Smith dents and staff, said Ave Maria named president of the Michigan report it filed — Anjali Fluker College President Dan Guernsey. Venture Capital Association at its Friday with the Forgotten Harvest buys The college has a tentative annual meeting Thursday night. U.S. Securities & Ann Arbor restaurant to open agreement for the sale of its She succeeds Jan Garfinkle of Exchange Com- $1.4M Oak Park site 15,000-square-foot academic Ann Arbor-based Arboretum Ven- mission. Melange Bistro/Wine Bar, a 275- building and a small office build- tures L.L.C. Forgotten Harvest, a Southfield- In its filing, seat Eurasian restaurant, is ing next to it. It’s seeking $595,000 Honored with above-and-be- DTE said Ew- scheduled to open today in Ann based nonprofit, has bought a for the university president’s yond awards for getting the ing, who was 62 Ewing Arbor. 20,000-square-foot building and 3 house near Forest and Adams, state’s Venture Michigan Fund at the time of the company’s Melange is owned by restau- acres it sits on in Oak Park for the only property it has not yet launched recently were Tom Kin- March annual report, informed rant architect and designer John $1.4 million from J.N.D. Inc. sold, Guernsey said. near, executive director of the management on Wednesday of Janviriya, Amvest Property Man- Forgotten Harvest plans to The college estimates it will Zell Lurie Institute at the University his intention to retire Dec. 31. agement Inc. President Gerry move its headquarters to the gross $4 million to $5 million of Michigan’s Ross School of Busi- Ewing, who is also president Spears, and two silent partners. Greenfield Road building, which from the sales, he said. ness; Charles Rothstein, senior and COO of DTE subsidiary Michi- Most entrees will be between is just south of Nine Mile Road — Sherri Begin managing director of Farmington gan Consolidated Gas Co., is retir- $15 and $30. and includes space for a food-dis- Hills-based Beringea L.L.C.; Dennis ing after 35 years. Janviriya said about $1 million tribution warehouse, said Grant Victor chairman buys resort Bernard, president of the South- — Amy Lane was spent to renovate the bottom Bruce, principal and broker at field-based Bernard Financial Group floor of the building at 316 S. Signature Associates, which repre- David Johnson, chairman of Inc.; and David Parsigian of De- Main Street, underneath The Ark, sented the food rescue in the sale. Victor International Corp., and his troit-based Miller, Canfield, Pad- Pontiac building to be auctioned a concert hall. Janviriya is also Executive Director Susan Ellis wife, Pam, have acquired a resort dock and Stone plc. One of Pontiac’s largest com- part owner of Crave Lounge in Goodell declined to comment dur- in the British Virgin Islands. — Tom Henderson

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November 6, 2006 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S 4 execs quit Saturn Electronics INDEX

on Oct. 30. Spurred by failed attempt to buy the company In a statement late last week to Au- tomotive News, the four executives BY ROBERT SHEREFKIN executives tried to buy the company fered to buy him out. He said he did- said: “We recently resigned our CRAIN NEWS SERVICE from Tsuha. They were looking for n’t like the terms, but let the offer ex- management positions from Saturn ways to expand the supplier of pire to avoid ill feelings. “We left it following a good-faith offer to ac- As founder, chairman and CEO, wiring, fuel system components and on good terms,” he said. quire the company. Wallace Tsuha Jr. is used to getting solenoids. Sales had fallen 53 percent But by September, the four lieu- “We have a very specific vision of his way at Auburn Hills-based auto- Catering trends: to $189 million from 2003 to 2005, ac- tenants returned with a new offer. the auto supply industry,” the state- motive electronics Companies are ditching cording to Crain’s Detroit Business. The discussions continued into ment continued, “and with investors the lobster and serving supplier Saturn The four men — Orlando Bustos, October, Tsuha says. The talks in- we plan to pursue opportunities up ribs at office parties. Electronics & Engi- Page 11. Nick Najmolhoda, Michael Gidley cluded the possibility of Tsuha stay- which could include the acquisition neering Inc. Just ask and Jeff Reddy — “had different vi- ing aboard. He dismissed the of other companies. We have a great Proforma performance: the four senior ex- sions for the company,” says a spokes- prospect. When someone buys a car, Acclaim for company’s deal of respect and affection for Sat- ecutives who sud- woman for the four men. Tsuha said the previous owner does not remain software boosts its urn, its employees and founder Wal- denly left the com- Reddy’s job has been filled, and the in the front seat, he says. revenue. Page 15. pany last week. others will be filled soon. The parties could not reach an ly Tsuha. We wish them well in the Asian expansion: Jawood The mass resig- In August, Bustos, president of agreement on the second offer. future.” Management Associates Tsuha says he is reorganizing the opens office in India. nation wipes out Saturn’s international operations, “At the end of the day, it was Page 31. much of Tsuha’s and another executive approached price,” Tsuha said. company. In five years, he says, the Tsuha management team Tsuha about a management buyout. Still, he characterized the discus- company will double its size. That These organizations appear in this at a time when Tsuha is struggling to They claimed to have financial back- sions as friendly. He says he was sur- would put it at about $400 million in week’s Crain’s Detroit Business: sales, about where Saturn was in boost sales and profits at the private- ing, the founder says. prised on Oct. 17 when the four exec- Affinia Group ...... 1, 33 ly held company. On Friday, Tsuha, 63, said he was utives all resigned, effective Nov. 6. 2003. Akebono Corp...... 32 The problems arose when the four surprised when his executives of- The four actually left the company From Automotive News AT&T Michigan...... 23 Bank One ...... 37 BBK Ltd...... 36, 37 Belanger Inc...... 29 Belmar Development Group L.L.C. . 34 Bernard Financial Group...... 16 Best Western Sterling Inn...... 11 Blue Ribbon Restaurants ...... 11 Brogan & Partners ...... 37 Delphi: Tale of Cequent Group...... 32 Detroit signal Custom Towing Mirror L.L.C...... 32 Delphi Corp...... 3 Detroit Medical Center ...... 34 Detroit Regional Chamber . . . . 35, 36 Dura Automotive Systems ...... 4 fear, fast money EPIC-MRA Corp...... 35 Exhibit Works Inc...... 23 fades in radio Famous Dave’s Barbeque ...... 11 Federal-Mogul Corp...... 1 GM warranty costs Ford Global Purchasing ...... 23 Forte-Belanger Catering Co...... 11 General Motors Corp...... 3 GlobalAutoIndustry.com ...... 29 reverberate in Greater Media Detroit ...... 3 rankings Greektown Casino L.L.C...... 34 Henry Ford Health System...... 6, 23 federal fraud charges Inalfa Roof Systems ...... 32 ADIO RANKINGS BY City almost out of top 10 markets, Jawood Management Associates . . 31 R Kenwal Steel Corp...... 25 BY DAVID BARKHOLZ Kosch Catering & Corporate Dining. 12 POPULATION Matrix System Auto. Finishes L.L.C.. 32 CRAIN NEWS SERVICE but ad sellers say sales still strong Matt Prentice Restaurant Group . . . 28 MMBDC...... 6 Barely 15 months after Delphi Corp. had been Spring 2006 Michigan Neurology Institute . . . . . 24 spun off from General Motors Corp., Delphi CEO 1. New York: 15,332,000 BY BILL SHEA regional general manager for Microsoft Automotive ...... 32 J.T. Battenberg III faced a crisis that reverber- Midwest Acorn Nut Co...... 32 2. Los Angeles: 10,826,600 CRAIN’S DETROIT BUSINESS Greater Media Detroit in Royal Molecular Innovations Inc...... 29 ates today in the government’s accounting fraud 3. Chicago: 7,738,000 Oak Township, which owns Northwest Airlines Corp...... 36 case against Battenberg and several other Del- etroit teeters on the edge WRIF FM 101.1, WCSX 94.7 FM NSF International Inc...... 29 4. San Francisco: 5,891,900 phi officers. of dropping out of the and WMGC FM 105.1. Oakland Community College ...... 29 5. Dallas-Ft. Worth: 4,838,600 D Oakland Hills County Club ...... 12 GM wanted $350 million to top-10 largest U.S. radio “Anyone in media or market- OCC Faculty Association...... 29 $800 million for warranty 6. Houston-Galveston: markets — it’s been surpassed ing has been aware of this Proforma Corp...... 15 4,469,900 costs the automaker said it by Atlanta and has fallen to (downward trend) for years,” Public Sector Consultants ...... 1 7. Philadelphia: 4,360,200 10th in the latest measurements Reliant Equity L.L.C...... 14 had absorbed because of al- he said. “I don’t expect it to Roush Performance Products Inc. . . 32 legedly faulty Delphi parts. 8. Washington: 4,176,300 — but other forces keep the Mo- have any significant impact on Saturn Electronics ...... 3 Battenberg viewed the 9. Detroit: 3,892,600 tor City attractive to advertis- the way we do business.” Serapid Inc...... 13 claims not only as potentially ers. Sherer Inc...... 24 10. Atlanta: 3,860,100 In the list released this SKF Automotive ...... 1 damaging to newborn Delphi Some say the top 10 holds lit- month by Columbia, Md.-based Specs Howard School ...... 37 but patently unfair. Delphi Fall 2006 tle meaning because advertis- Arbitron Inc., which tracks radio University of Michigan ...... 25, 29 had sold the parts to GM ers rely on a sophisticated set of listening, Atlanta rocketed past USDA ...... 1 Battenberg 1. New York: 15,291,100 Verizon Wireless ...... 37 while it was still an operating measurements, of which the (-41,000) Detroit because of a gain of Visteon Corp...... 1, 4, 32 division of the automaker, so the dispute should rankings are one criterion. Oth- Wayne State University ...... 34 2. Los Angeles: 10,790,100 nearly 225,000 people, while De- have been resolved as part of the spinoff in 1999. WCSX 94.7 FM ...... 3 (-36,500) ers worry that if the population troit lost more than 4,000. Delphi might have flagged the trouble to in- continues to dwindle, so will ra- WMGC FM 105.1 ...... 3 3. Chicago: 7,698,300 The estimates for Jan. 1, 2007, WRIF FM 101.1 ...... 3 vestors and fought the battle in the daylight of (-39,700) dio advertising investment in are made by Claritas Inc., a San Zingerman’s...... 11 public disclosure. this market. 4. San Francisco: 5,829,700 Diego-based market research Instead, the government alleged in the civil BANKRUPTCIES ...... 34 (-62,200) At issue are advertising firm, and based on the 2000 U.S. accounting fraud case announced last Monday BRIEFLY ...... 29 5. Dallas-Ft. Worth: 4,730,200 rates. The smaller the market, Census. Arbitron calculates its that Delphi used improper accounting methods BUSINESS DIARY ...... 17 (-108,400) the less money stations can Detroit ranking based on popu- to try to make warranty claims it ultimately CALENDAR ...... 20 6. Philadelphia: 4,354,900 charge for spots — or so the the- lation in Wayne, Oakland, Ma- CAPITOL BRIEFINGS ...... 9 paid look like pension and retiree costs. (-5,300) ory goes. Some local ad sales comb, Livingston, Monroe, St. CLASSIFIED ADS...... 30 On at least three other occasions over the next 7. Houston-Galveston: managers said they’ve not had Clair and Lapeer counties. Its DIVIDENDS...... 4 three years, Delphi would use improper ac- 4,353,000 (-116,900) to reduce anything, and sales rankings are released in the EARNINGS ...... 4 counting or fraudulent transactions either to 8. Washington: 4,132,800 remain strong because Detroit spring and fall. KEITH CRAIN ...... 8 shortcut a problem or juice earnings and cash (-43,500) remains a huge, proven market Boston remains the 11th- LETTERS ...... 8 flow, the government says. Battenberg denies OPINION ...... 8 9. Atlanta: 4,085,000 and the center of the automo- largest market. Like Detroit, it any wrongdoing. PEOPLE ...... 21 (+224,900) tive universe. has lost population, but at a Delphi’s persistent financial crises, and the slower rate, so it’s possible the RUMBLINGS...... 38 10. Detroit: 3,888,300 (-4,300) “To a great degree, the only WEEK IN REVIEW ...... 38 accounting maneuvers they spawned, have en- thing that the ranking change cities could switch spots in snared several prominent people along with Source: Arbitron comments on is that it reflects coming years. Battenberg, a career GM executive who has a CALENDAR Full fall list is at www.arbitron. the growth the last 10 years of The Arbitron ranking is not For a list of current big-time profile in Detroit and the corporate com/radio_stations/ the Sun Belt,” said Tom Ben- without criticism. In fact, it’s events, visit mm001050.asp www.crainsdetroit.com. See Delphi, Page 36 der, senior vice president and See Radio, Page 37 DETROIT BUSINESS MAIN 11-06-06 A 4 CDB 11/3/2006 5:22 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS November 6, 2006 TAKING STOCK MEETINGS & CONVENTIONS NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Dura files Ch. 11, will be delisted SAWMILL CREEK RESORT & EARNINGS Dura Automotive Systems Inc. has filed for Chapter 11 bank- CONFERENCE CENTER Agree Realty Corp. NYSE: ADC 9 months ruptcy protection in Delaware, Revenue ...... $169,793,000 $157,503,000 according to a company state- • NEW! 16,000 s.f. BALLROOM 3rd Quarter Sept. 30 2006 2005 †Funds from operations$39,521,000 $37,937,000 Revenue...... $8,114,000 $7,697,000 Funds from operations/share..$1.97 $1.87 ment Oct. 30. The filing only af- 35,000 s.f. TOTAL FUNCTION SPACE †Funds from operations..$4,901,000 $4,948,000 fects Dura’s U.S. and Canadian Funds from operations/share ..$.59 $.59 †- Funds from operations is an accounting stan- • GOLF dard used by real estate investment trusts that re- operations. 9 months Rochester Hills-based Dura has Revenue ...... $24,554,000 $23,257,000 flects net income plus adjustments such as depreci- • LAKEFRONT MARINA †Funds from operations ..$14,724,000 $14,741,000 ation and amortization. arranged for about $300 million in Funds from operations/share $1.76 $1.79 debtor-in-possession financing †- Funds from operations is an accounting stan- TechTeam Global Inc. Nasdaq: TEAM from Goldman Sachs & Co., GE Capi- Sandusky/Huron, OH 44839 dard used by real estate investment trusts that re- 3rd Quarter Sept. 30 2006 2005 tal and Barclays Bank, which will 1-800-729-6455 flects net income plus adjustments such as depreci- Revenue ...... $42,027,000 $41,314,000 be used to fund the company’s ation and amortization. †Net income ...... $370,000 $1,229,000 Earnings per share ...... $.04 $.12 normal business operations and Asset Acceptance Capital Nasdaq: AACC 9 months continue a restructuring pro- Revenue ...... $123,494,000 $125,637,000 gram that started in February. 3rd Quarter Sept. 30 2006 2005 ††Net income ...... $632,000 $4,557,000 Dura (Nasdaq: DRRA) said in Revenue ...... $59,170,145 $64,016,546 Earnings per share ...... $.06 $.45 Net income ...... $10,700,818 $13,706,581 a statement that it is taking †- TechTeam reported a $429,000 charge in the Earnings per share ...... $.29 $.37 steps to avoid supply disrup- third quarter for settlement of claims filed against sawmillcreek.com 9 months tions to its customers. the company by former officers. Revenue ...... $193,332,322 $198,854,349 Also, Dura said late Tuesday Net income ...... $35,709,759 $45,169,155 ††- The company reported $1,801,000 in legal Earnings per share ...... $.96 $1.21 and professional fees, settlement of claims and that it has received a delisting asset impairment charges. notification from Nasdaq, effec- Caraco Pharmaceutical Amex: CPD tive Wednesday. TRW Automotive Holdings NYSE: TRW 2nd Quarter Sept. 30 2006 2005 — Brent Snavely Revenue ...... $28,279,969 $19,796,402 3rd Quarter Sept. 29 2006 2005 Net income ...... $2,310,530 ($4,819,616) Revenue ...... $3,015,000,000 $2,917,000,000 Earnings per share ...... $.06 ($.18) Net income ...... $5,000,000 $10,000,000 6 months Earnings per share ...... $.05 $.10 Visteon to cut 900 salaried Revenue ...... $53,031,116 $37,408,932 9 months Net income ...... $7,296,454 ($3,203,370) Revenue ...... $9,872,000,000 $9,507,000,000 jobs after posting $177M loss Earnings per share ...... $.19 ($.12) Net income ...... $143,000,000 $145,000,000 Earnings per share ...... $1.43 $1.46 Visteon Corp. said Tuesday that Community Central Bank Nasdaq: CCBD it plans to cut 900 salaried posi- Visteon Corp. NYSE: VC 3rd Quarter Sept. 30 2006 2005 tions after production cuts by Revenue...... $9,476,000 $7,636,000 3rd Quarter Sept. 30 2006 2005 customers led to a loss of $177 Net income ...... $610,000 $751,000 †Revenue ...... $2,615,000,000 $4,121,000,000 million, which fell short of Wall Earnings per share ...... $.16 $.19 Net income ...... ($177,000,000) ($207,000,000) Street expectations. Earnings per share ...... ($1.38) ($1.64) 9 months Jim Fisher, Visteon’s director Revenue ...... $26,958,000 $21,087,000 9 months Net income ...... $1,944,000 $2,333,000 †Revenue ...... $8,161,000,000 $14,111,000,000 of corporate communications, Earnings per share ...... $.50 $.63 Net income ...... ($124,000,000) ($1,608,000,00) said the cuts will affect employ- Earnings per share ...... ($.97) ($12.78) ees in North America and Eu- Credit Acceptance Corp. Nasdaq: CACC †Visteon’s third quarter sales dropped due to the rope and will include employees 3rd Quarter Sept. 30 2006 2005 transfer of 23 plants to Automotive Components at the company’s corporate Revenue ...... $55,402,000 $51,623,000 Holdings L.L.C., a company managed by Ford Motor Thursday, November 9 Co. headquarters in Van Buren 7 a.m. – 6:15 p.m. Net income ...... $15,342,000 $14,594,000 Township, where 2,700 currently Ford Conference & Event Center, Dearborn Earnings per share ...... $.44 $.38 9 months work. But he said Visteon Revenue ...... $163,509,000 $149,695,000 (NYSE: VC) has not yet deter- Net income ...... $50,145,000 $47,361,000 mined how many jobs will cut at Who Will Be There? Earnings per share ...... $1.38 $1.21 DIVIDENDS the corporate offices. 1,200LU[YLWYLUL\YZNH[OLYPUN[VNHPUZTHY[Z[YH[LNPLZ[V[OPURIPN Masco Corp. NYSE: MAS Fisher said the cuts will begin Company Amount Payable Record during the fourth quarter and 6]LY25JVYWVYH[LZWVUZVYZPU]LZ[PUNPUHUK 3rd Quarter Sept. 30 2006 2005 date date Revenue ...... $3,295,000,000 $3,278,000,000 will be complete by the end of Z\WWVY[PUN[OLNYV^[OVMZTHSSI\ZPULZZLZ 2006 2006 Net income ...... $252,000,000 $262,000,000 Origen Financial Inc. $.03 11-30 11-13 the first quarter of 2007. Earnings per share ...... $.64 $.61 PSB Group Inc. $.18 12-15 12-1 — Brent Snavely 4VYL[OHU )\ZPULZZ9LZV\YJL:[H[PVU7YV]PKLYZ 50 9 months KLTVUZ[YH[PUNWYVK\J[ZHUKZLY]PJLZ Revenue ...... $9,832,000,000 $9,441,000,000 Net income ...... $675,000,000 $767,000,000 85H[PVUHSS`YLJVNUPaLKZWLHRLYZWYV]PKPUNPTWVY[HU[PUZPNO[ Earnings per share ...... $1.68 $1.77 STREET TALK 5LHYS`30YLNPVUHSL_WLY[ZKLSP]LYPUN[OLSH[LZ[ZVS\[PVUZHUKILZ[WYHJ[PJLZ Meadowbrook Insurance Grp. NYSE: MIG 3rd Quarter Sept. 30 2006 2005 THIS WEEK’S STOCK TOTALS: 18 GAINERS, 52 LOSERS, 8 UNCHANGED Revenue ...... $78,912,000 $77,037,000 11/3 10/27 PERCENT Register now! Net income ...... $5,093,000 $4,662,000 CDB’S TOP PERFORMERS CLOSE CLOSE CHANGE .V[V^^^KL[YVP[JOHTILYJVTVYJHSS 4)9305, Earnings per share ...... $.17 $.16 9 months 1. Saga Communications Inc. $8.79 $8.11 8.39 Revenue ...... $239,174,000 $227,879,000 2. Compuware Corp. 8.12 7.61 6.70 Net income ...... $16,093,000 $12,985,000 Ramco-Gershenson Properties 33.94 32.61 4.08 Earnings per share ...... $.55 $.44 3. 4. ProQuest Co. 13.03 12.69 2.68 7YLZLU[PUN:WVUZVY 4LKPH7HY[ULY Origen Financial Inc. Nasdaq: ORGN 5. NAIC Growth Fund Inc. 8.50 8.30 2.41 3rd Quarter Sept. 30 2006 2005 6. Perceptron Inc. 8.16 8.00 2.00 Revenue ...... $23,169,000 $19,282,000 7. TechTeam Global Inc. 9.00 8.84 1.81 Net income ...... $1,754,000 ($6,082,000) 8. DTE Energy Co. 45.71 45.17 1.20 Earnings per share ...... $.07 ($.24) 9 months 9. Ford Motor Co. 8.38 8.29 1.09 Revenue ...... $66,822,000 $53,746,000 10. Semco Energy Inc. 5.82 5.76 1.04 Net income ...... $4,938,000 (3,562,000) 11/3 10/27 PERCENT Earnings per share ...... $.20 ($.14) CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE Saga Communications Inc. NYSE: SGA 1. Universal Truckload Services Inc. $23.32 $26.70 -12.66 3rd Quarter Sept. 30 2006 2005 2. TRW Automotive Holdings Corp. 23.40 26.21 -10.72 Revenue ...... $35,791,000 $35,961,000 3. Caraco Pharmaceutical Labs Ltd. 10.65 11.78 -9.59 Net income ...... $3,264,000 $3,440,000 4. Valassis Communications Inc. 15.12 16.50 -8.36 Earnings per share ...... $.16 $.17 5. Asset Acceptance Capital Corp. 16.27 17.50 -7.03 9 months Revenue ...... $104,727,000 $105,345,000 6. Credit Acceptance Corp. 31.05 33.37 -6.95 Net income ...... $8,777,000 $8,677,000 7. American Axle & Mfg. Holdings 17.85 19.17 -6.89 Earnings per share ...... $.43 $.42 8. Somanetics Corp. 20.66 22.07 -6.39 9. Meadowbrook Insurance Group 11.02 11.68 -5.65 Sun Communities Inc. NYSE: SUI 10. Sun Communities Inc. 32.78 34.72 -5.59 3rd Quarter Sept. 30 2006 2005 Source: Bloomberg News. From a list of publicly owned companies with headquarters Revenue ...... $55,012,000 $53,283,000 in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading †Funds from operations$11,758,000 $10,505,000 at less than $5 are not included. Funds from operations/share ..$.59 $.52 DBpageAD.qxd 10/17/2006 2:39 PM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS November 6, 2006 Crain’s makes staff changes to improve coverage

Crain’s Detroit Business has duties included selecting stories motion is in recognition of the in- Crain’s weekly monthly Executive Life section. added a member to its Web staff and and photos, posting breaking news creasingly wide-ranging nature of Focus sections Business Lives will appear on the made other staff changes to im- and tracking his responsibili- that target spe- first Monday of prove and expand its print and Web viewer trends ties, which in- cific industries, each month and coverage. for the Web. She clude supervis- as well as small include coverage ■ Roxanne Rives joins Crain’s as also wrote a ing data businesses and of a variety of ca- a Web editor. In that position, she weekly print operations; topics related to reer and person- will write and assist in the man- column that told overseeing the entrepre- al issues of con- agement of content for crainsde- the stories of lo- design, headline neurism. Mar- cern to troit.com and Crain’s e-mail offer- cal small busi- writing and tinez joined businesspeople, ings. She also will help develop nesses. Rives is proofreading of Crain’s in Janu- Martinez as well as stories audio and video products. from Rochester Crain’s Detroit ary 2005 as a reporter. Previously about restau- Rives, 27, comes to Crain’s from Hills and gradu- Rives Business; and Lee she had been editor-in-chief of rants, residences Selby the Hattiesburg (Miss.) American, ated from Oakland University. handling various other projects. Modern Metals Magazine. and philanthropy. He also will over- where she was responsible for dai- ■ Michael Lee, 34, is promoted to He joined Crain’s in 1999. ■ Shawn Selby, 36, becomes Busi- see selected other projects, includ- ly maintenance of its Web site, deputy managing editor from as- ■ Michelle Martinez, 33, becomes ness Lives editor, which is the new ing 40 Under 40, 20 in their 20s and HattiesburgAmerican.com. Her sistant managing editor. Lee’s pro- assistant managing editor for name, effective in January, of the Cool Places to Work. He and Mar- tinez will be re- sponsible for the daily breaking news operation of crainsdetroit. com. Selby joined Crain’s in 1999. ■ Reporter An- drew Dietderich, BUSINESS 32, will take over coverage of Dietderich health care,

©2006 Visa U.S.A. Inc. ©2006 Visa transportation and international business from Martinez and con- tinue to cover biotech. Dietderich TAKES has been with Crain’s since 2001. SIMPLICITY MMBDC hosts award ceremony The Michigan Minority Business Development Council recognized last month several top-performing lo- cal minority-owned businesses as well as individuals, companies and organizations that develop, promote and include certified Michigan minority suppliers in their procurement opportunities. Corporations of the Year: ■ DaimlerChrysler, Auburn Hills, which also was named Minority Business Advocate of the Year ■ MGM Grand Detroit Casino, De- troit ■ IBM, Southfield ■ Barton Malow Co., Southfield ■ Johnson Controls Inc., Plymouth ■ Ghafari Associates, Dearborn ■ Detroit Medical Center, Detroit ■ Wayne State University, Detroit ■ Comerica Inc., Detroit Minority Suppliers of the Year: ■ C.W.D. Designs Inc., Detroit ■ EKS Services Inc., Detroit ■ Devon Industrial, Detroit Diamond Award: ■ Sharron Cannarsa, Systrand Manufacturing, Brownstown Township — Daniel Voros

HFHS to meet with potential vendors for $300M expansion Detroit-based Henry Ford Health System plans to hold a meeting Fri- day at 9 a.m. designed to provide contracting information on a planned $300 million expansion. Henry Ford Health System said it plans to maximize participation of minority- and woman-owned and Detroit-based subcontractors. The health care system also said Visa Business tracks your expenses on one simple statement, helping you run your business more it will solicit proposals from pre- efficiently. Saving you time and money. Not to mention sticky notes. For more information, visit us qualified bidders in the upcoming at visa.com/smallbusiness. Your business is your life. Life takes Visa. months for subcontractors and construction-related services. To register, call (313) 916-7009. — Andrew Dietderich DBpageAD.qxd 10/31/2006 4:03 PM Page 1

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Page 8 CRAIN’S DETROIT BUSINESS November 6, 2006 OPINION Air routes for future ichigan’s business and political leadership has lined up behind Northwest Airlines’ bid to offer a daily M nonstop flight between Detroit and Shanghai, China. A decision by the U.S. Department of Transportation, which will select only one carrier for a China route, is expect- ed by year end. Northwest’s competition and the base cities for proposed China routes are: United Airlines (Washington, D.C.), Ameri- can Airlines (Dallas), and Continental (Newark). Detroit-Shanghai makes sense. Detroit is a large hub, and Michigan already also has a strong base of companies with Chi- na operations. It likely will fill more seats than its competitors. But politics will likely play a role in the decision, too. That’s why Detroit — and Michigan — need to rally behind Northwest. This new route is just a start. Our region needs to think about moving freight as well as people. Detroit has an opportu- nity to become more of a global freight hub, rivaling Chicago, the largest freight hub in the Midwest — which doesn’t have room to expand. Last Friday in Detroit, Northwest CEO Doug Steenland said he was working with area economic development officials and the airport leadership to build more international air freight traffic here, too. That kind of vision builds on our exist- ing assets — air-freight capacity, interstate highways, an in- ternational border and lots of land to expand — to shape our LETTERS 21st century economy. Past the top of the ticket SBT must be fully replaced Tuesday’s ballot is jammed with proposals and hot con- Editor: Crain’s Detroit Business Restore G.A.R. building Your story (“Consensus is elu- tests. But some races with the least coverage are those where welcomes letters to the editor. sive on retooling taxes,” Oct. 16) Editor: the voice of business leadership should be heard. All letters will be considered for demonstrates that Michigan’s cer- Detroit is a city that gets his- Specifically, we encourage readers to remember the under- publication, provided they are tified public accountants (CPAs) toric preservation. signed and do not defame reported statewide races for state Board of Education, the gov- obviously “get it.” Adaptive reuse and preserva- individuals or organizations. erning boards of Wayne State, Michigan State and the Univer- Most CPAs, who know as much tion of hundreds of historic build- Letters may be edited for length sity of Michigan and state Supreme Court and Court of about taxes as anyone in Michi- ings have occurred in recent and clarity. gan, agreed that when the state’s years, including the Book-Cadillac Appeals. Some familiar names in metro Detroit business cir- Write: Editor, Crain’s Detroit single-business tax is officially where work is now underway. It is cles are on the ballot for many of these slots. Business, 1155 Gratiot Ave., scrapped next year, the Legisla- to the credit of city officials that Candidates with strong achievement profiles in Crain’s Detroit, MI 48207-2997. ture and governor must replace all this wave of redevelopment has archives include: the lost revenue. E-mail: [email protected] occurred. Reginald Turner, law firm of Clark Hill, and Eileen Weiser CPAs understand that the SBT is Issuing a request for proposals of Ann Arbor, running for state board of education; Domino’s the main tax paid by Michigan Crain’s editorial, “Broaden biz tax to redevelop the G.A.R. Building Pizza CEO David Brandon and attorney Julia Darlow, running businesses and that it generates base; don’t race to bottom,” Oct. is another important step forward. Everyone recognizes that this for UM board of regents; and Debbie Dingell of General Motors about $2 billion a year for police 16), we support full replacement of and fire protection across the state; building is an historic asset. The Corp., attorney Eugene Driker and builder Andrew the SBT. health care for 1.5 million children, Michael Boulus RFP now assures that the building McLemore, running for WSU’s board of governors. disabled and elderly residents; and Executive director must and will be preserved. Crain’s has collected its coverage of ballot proposals and the Presidents Council, State Universities of Michigan In our difficult economic times, keeps college affordable for as Lansing preservation makes good business governor’s race at www.crainsdetroit.com. But a more expan- many students as possible. Failure David Seaman sive nonpartisan review of candidates and issues can be found to replace SBT revenues will mean Executive vice president sense. Investment in preservation generates more jobs, has a higher on the League of Women Voters of Michigan Web site, www. fewer police officers on the streets Michigan Health and Hospital Association of Michigan, deep cuts to health Lansing multiplier effect and creates lwvmi.org. Another source with great detail on the proposals is care for children, and higher tu- Arnold Weinfeld places for businesses to locate of- the Citizens Research Council of Michigan, www.crcmich.org. Director, public policy and federal affairs ten at less cost than new construc- ition for Michigan college students. Michigan Municipal League Both sites are linked on Crain’s Web election guide. Like Michigan CPAs (and Ann Arbor See Letters, Page 9

KEITH CRAIN: We really are in a single-state recession It would be pretty hard to blame We’ve had it very glory days of the ’50s You can’t really expect state gov- By the end of this week, after the the federal government for the good in Southeast and ’60s when the De- ernment to have any impact on dust settles from the elections and malaise that exists within the Michigan for more than troit auto industry this automotive economy except things go back to “normal” for a Michigan economy. 100 years. There have ruled the nation. perhaps to consider a right-to- short time, we’ll have to get about The minute you get out of Michi- been plenty of times You have to travel to work law, which just about every- the business of right-sizing our state gan, you realize that the U.S. econ- when the national econ- realize just how good the one opposes in our state. and our automotive companies. omy is in very good shape. omy turned sour for a overall U.S. economy is To diversify our state’s econo- A crisis is about the only time Whether you go to Cleveland or bit and the auto indus- today. There are places my, it will take a concerted effort government officials can afford to Chicago or out to either coast, it’s try went along with the in our country that need for at least two decades. It won’t do the necessary, painful cutting obvious that Michigan and Detroit rest of the nation. Now qualified workers, happen overnight, and it will con- to create a healthier, long-term fu- are facing specific problems that we’re on our own. places where housing tinue long after whoever is elected ture. are almost exclusively caused by This isn’t some isolat- prices are still high and governor this week comes and It’s a good thing that our nation- the decline of the automobile in- ed downturn that will demand is strong. goes. It’s going to take a laser-like al economy is so robust. If the en- dustry. It is amazing what a few rebound. This is structural change Where just about everything is the focus and a nonpartisan effort by tire nation were in a recession, hundred miles do to your outlook that is permanent. And it’s opposite of what we have in South- our legislative and executive we’d be up a creek without a and your business. painful. We will not rebound to the east Michigan. branches. paddle. DETROIT BUSINESS MAIN 11-06-06 A 32,33 CDB 11/3/2006 5:23 PM Page 2

November 6, 2006 CRAIN’S DETROIT BUSINESS Page 33

STATE OF THE AFTERMARKET Sum of the parts Affinia’s restructuring, new hires have firm poised for international growth

BY BRENT SNAVELY market management department, expects to make a profit this year. Detroit Business and sponsored by CRAIN’S DETROIT BUSINESS BOUT FFINIA Affinia had assembled and hired Affinia is not publicly traded, Ernst & Young L.L.P. in September. A A some of the industry’s most-respect- but has publicly held debt and files “You need to really push your mes- Two years after its birth as a Formed: 2004, from Dana Corp.’s ed executives, such as Don Reimon- financial reports with the U.S. Se- sage on your premium line and company, Ann Arbor-based Affinia aftermarket unit after its purchase do, who was hired in January 2005 curities and Exchange Commission. then you sort of partition yourself Group is about halfway through a by New York City-based private- as Affinia’s senior vice president of McCormack said the restructur- and say, ‘OK, but here is our other equity firm Cypress Group L.L.C. painful restructuring plan and is customer relationship management ing plan is on track and he does not stuff.’ It’s a real dangerous propo- Revenue: $2.1 billion in 2005. poised for international growth, and was vice president of global dis- expect any major additional re- sition all of us are playing with.” according to company executives Headquarters: Ann Arbor. tribution for Federal-Mogul Corp. structuring in the near future. Mc- Schmatz said offering both val- and industry professionals. Brands: Raybestos brakes, Wix “This is (a huge) industry, and Cormack also said Affinia has also ue-priced and premium products Affinia, with 2005 sales of $2.1 filters, Spicer chassis parts, it’s run by about 300 people,” John been able to pay is necessary, because people with billion, is the seventh-largest after- Aimco brakes, Quinton Hazell, said, so having the right people off portions of its new cars want to repair their cars market parts manufacturer in McQuay Norris, Nakata. with deep industry connections is debt for several with the best parts possible while North America, according to Auto- Top executive: President and CEO important for success. consecutive those with older cars are interest- motive Aftermarket Suppliers Associa- Terry McCormack. Affinia has completed an inter- quarters, and ed in cheaper repair parts. tion’s list of the top 100 aftermarket will be in better Inc., a supplier of engine and drive- nal restructuring plan and has McCormack believes that if suppliers. financial shape line products to retail, traditional launched a second, two-year, $152 Affinia can offer both a line of com- Affinia is a former unit of Tole- next year. and specialty channels. Reau is million restructuring program petitively priced products as alter- do-based Dana Corp. and is better Affinia’s long- vice president of category manage- that the company plans to com- natives to overseas competitors as known by its brand names — Wix term strategy is ment for Affinia’s under-vehicle plete next year. So far, that plan well as premium products, then filters, Raybestos brakes and Spicer to position itself chassis. group in McHenry, Ill. has included the sale or closure of McCormack wholesale buyers and technicians ■ as manufacturer The company was purchased on Jeff Stauffer, former vice presi- seven North American plants. will prefer to buy from Affinia be- of a full-line of products in its three Nov. 30, 2004, by New York-based Cy- dent of marketing for the consumer- Since June, Affinia has an- cause of its superior customer ser- main categories — filters, brakes press Group L.L.C. for about $1 billion. products division of Northbrook nounced plans to close a foundry vice and technical support. and chassis. That means that it At the time Dana said it sold Affinia Ill.-based Old World Industries Inc. employing 250 in St. Catharines, As Affinia establishes a greater must be able to produce premium, to pay debt and so it could focus on Stauffer is senior vice president of Ontario, said it will close a plant overseas manufacturing presence, manufacturing parts for new-vehi- global group marketing. with 150 employees that makes Wix high-performance products and McCormack also sees an opportu- cle manufacturers. ■ Terry Shively, former vice filters in Cambridge, Ontario, and economy, or value-priced products. nity to boost Affinia’s sales in “I think Affinia’s biggest asset is president and general manager for said it plans to close a plant a plant But selling both premium and those regions. In 2005, about 27 per- its people,” said Kathleen Schmatz, Clevite Engine Parts, a division of with 250 employees in Cuba, Mo. value-priced products without cent of Affinia’s sales were outside president and CEO of the Automotive Dana Corp., as vice president for Partly because of its restructur- eroding the perceived value of the North America. Aftermarket Industry Association. strategic market development. ing costs, Affina reported a $2 mil- premium products is tricky, said In May, Affinia began construc- “Many, many aftermarket veterans “We felt that we needed an infu- lion net loss on $562 million in William Diggory, vice president tion on a 50,000-square-foot plant in that have great networks that are sion of new thinking … in an effort sales for the second quarter ending and general manger of SKF Automo- Krasilov, Ukraine, that will pro- well-known and respected among to think bigger and to think differ- June 30. tive’s aftermarket business unit. duce air and oil filters for central their peers are part of their manage- ently,” said Affinia President and McCormack declined to talk “To manage those two things and Eastern European customers, ment team.” CEO Terry McCormack. about third-quarter performance and be profitable is a real chal- the company said during its second- In September alone, Affinia hired: Even before those moves, said because Affinia plans to report lenge for us,” Diggory said during quarter conference call in August. ■ Bruce Reau, former president Jim John, chairman of Midland- earnings later this month. The an aftermarket industry round- Brent Snavely: (313) 446-0405; of Meridian, Miss.-based Pioneer based Northwood University’s after- company has not said whether it table discussion hosted by Crain’s [email protected]

Aftermarket: Challenge from China AFTERMARKET PARTS SUPPLIERS For an expanded version of this list, see www.crainsdetroit.com Aftermarket ■ sales From Page 32 Company ($000,000) Rank Phone; Web site Top local executive 2005 counterfeit. “We took action immediately be- at Northwood University in Midland, Federal-Mogul Corp. Jose Maria Alapont $2,900.0 1. (248)354-7700; www.federal-mogul.com chairman, president and In March, President George cause of the patents we had on is confident that North American CEO Bush signed the “Stop Counterfeit- there and the intellectual property aftermarket manufacturers are re- Johnson Controls Inc. Automotive Keith Wandell $2,400.0 ing in Manufactured Goods Act” involved. This hub unit was only acting to the market challenges. 2. Group COO and president, automotive group into law. The legislation extended — it couldn’t have been a year old. “I think the jury is out on how (734) 254-5000; www.johnsoncontrols.com federal seizure authority to in- It is amazing how quick they are.” the manufacturers are going to re- 3. Delphi Corp. Robert "Steve" Miller $2,200.0 B (248) 267-8642; www.delphi.com chairman and CEO clude not only counterfeit prod- Despite the counterfeiting chal- act overall, but some of them are ucts, but also the tooling, equip- lenges and the ability of overseas Terry McCormack $2,000.0 going to find ways to make their 4. Affinia Group Inc. ment and supplies used to produce manufacturers to make legitimate (734) 827-5400; www.affiniagroup.com CEO products competitive to whatever and traffic counterfeit goods. low-priced goods, some experts ar- Visteon Corp. Michael Johnston $978.0 the Chinese are offering in terms 5. chairman and CEO But local manufacturers say the gue that Chinese manufacturers (734) 710-2252; www.visteon.com practice continues to be a major is- will find it increasingly harder to of price and quality,” John said. 6. TRW Automotive Holdings Corp. John Plant $916.0 (734) 855-2600; www.trwauto.com CEO and president sue in the U.S., and is even more make a broader line of more-com- Even so, McCabe said, manufac- rampant abroad, especially in plex products and say North Amer- turers must react and adjust their ArvinMeritor Inc. Charles "Chip" McClure $885.0 7. (248) 435-1000; www.arvinmeritor.com chairman, president and Africa and the Middle East. ican aftermarket manufacturers strategies in a significant way to CEO Gyllstrom said Visteon works will find a way to adjust. meet the challenges. 8. NGK Spark Plugs (USA) Inc. Richard Sullivan $475.0 B with industry groups to monitor “I think they have done the McCabe said Affinia, maker of (248) 926-6900; ngksparkplugs.com vice president of sales the problem, but also attends the parts they can some of the biggest brand names in Denso International America Inc. Mitsuo Matsushita $355.0 B 9. CEO and president annual Automotive Aftermarket Parts do easily,” said the aftermarket industry, includ- (248) 350-7500; www.densocorp-na.com Expo in Las Vegas, which took Kathleen ing Wix filters and Raybestos 10. DESC Automotriz Lee Davis $225.0 (248) 471-3200; www.ttcautomotive.com CEO place last week, specifically to look Schmatz, presi- brakes, is committed both to offer- for counterfeit parts. dent and CEO of 11. Aisin World Corp. of America Junichi Nishimura $125.0 ing economy lines and premium (734) 453-5551; www.aisinworld.com CEO and president “We will walk the aisles with in- the Automotive products. tellectual property experts, prod- Aftermarket In- Phillips Automotive Lighting David Davoudi $113.0 “I think for too long there was 12. (800) 257-6054; vice president and uct and legal, and we will seek out dustry Associa- general manager too much denial that went on, you www.nam.lighting.phillips.com/us/automotive manufacturers who are violating tion. “And while know, ‘these guys can’t make good 13. Dow Automotive George Hamilton $112.3 our intellectual property,” Gyll- China has a (248) 391-6300; www.dowautomotive.com president parts,’ ‘the quality is no good,’ and strom said. Schmatz huge umber of 14. Akebono Corp. North America Go Kashiwagi $80.0 Bill Diggory, vice president and uneducated and it’s just a new day and if you don’t (248) 489-7400; www.akebonobrakes.com COO and president general manager of the aftermarket untrained labor pool, the parts face up to the reality of the situa- 15. Siemens VDO Automotive Corp. John Sanderson $64.0 business unit of Plymouth-based that come next … are those that tion and do something about it (248) 209-4000; www.usa.siemensvdo.com CEO and president SKF Automotive, said his company come from a highly trained and yourself, you are just not going to For companies based in Detroit and divisions of U.S.-based companies in Detroit, figure is for be around,” McCabe said. worldwide aftermarket sales. For divisions of foreign-owned companies, figure is for North American recently found a manufacturer dis- highly educated labor pool.” aftermarket sales. playing counterfeit hub units at the Jim John, chairman of after- Brent Snavely: (313) 446-0405; B Estimate. aftermarket convention. market management department [email protected] Sources: Automotive Aftermarket Industry Association, Crain’s research DETROIT BUSINESS MAIN 11-06-06 A 34 CDB 11/3/2006 6:17 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS November 6, 2006 DMC, WSU board members meet in dispute

BY SHEENA HARRISON Keith Crain, chairman of Crain Communi- ing in on Nov. 14 to investigate. State’s residency programs in a mid-Novem- AND MICHELLE MARTINEZ cations Inc., is a member of the DMC board. That group could move to shut down the ber conference call following the its Novem- CRAIN’S DETROIT BUSINESS DMC Chairman Charles O’Brien would two sides’ 69 joint residency programs if it ber site visit. not discuss details of Wednesday night’s ne- determines that a contract is not forthcom- Gov. Jennifer Granholm urged the two Board members from The Detroit Medical gotiations, which were described as “wide- ing, as first reported in Crain’s Sept. 4. That sides to come to an agreement on Thursday Center and Wayne State University met for the ranging and spirited” in a joint statement is- could spur the loss of about 1,000 residents when she spoke at a kickoff event for a se- first time on Wednesday to discuss the al- sued Thursday by the Wayne State and DMC and graduate medical students who treat pa- nior citizen education series at Detroit Re- most complete breakdown in talks between boards. tients in DMC hospitals and more than 250 ceiving Hospital. the two institutions, but it’s unclear The Wayne State board declined to com- faculty physicians. Granholm Press Secretary Liz Boyd said whether the groups were able to move to- ment for this story beyond the joint state- O’Brien said the two sides have scheduled ward an agreement. ment. “periodic meetings” to negotiate the issue. the governor also has talked to DMC CEO The joint meeting between the Wayne Talks have stalled between DMC and The next meeting likely will take place this Michael Duggan, Wayne State President State board of governors and the DMC board Wayne State over physician reimbursement week, he said. Irvin Reid and medical school Dean Robert of trustees was called for by Crain’s Publish- and exclusivity agreements, and have The Accreditation Council called the situ- Mentzer Jr. to encourage a resolution to the er Mary Kramer in an Oct. 16 column and grown so rancorous that the Accreditation ation “extremely urgent” in an Oct. 25 letter conflict. was intended to give both sides an unfiltered Council for Graduate Medical Education, the na- to the DMC and Wayne State, and said the Sheena Harrison: (313) 446-0325, view of the conflict. tion’s residency-program watchdog, is com- council will review the DMC and Wayne [email protected]

Stouffer’s site for sale again The site of the former Stouffer’s Northland Inn in Southfield is back on the market after Detroit-based Bel- A MAJOR mar Development Group L.L.C. backed out of a proposed $25 million plan. Belmar President Dwight Belyue said the lack of incentives such as brownfield or single-business-tax CHAMPIONSHIP credits, as well as a tough market for home sales were the main rea- sons he decided to drop the plan. Belyue said he’s concentrating AT OAKLAND HILLS efforts on his $250 million retail and condo development on De- troit’s riverfront, @water Lofts. Jonathon Hallberg, executive di- CREATES MAJOR rector of Southfield’s Cornerstone Development Authority, said it is con- tinuing to market the 3.5-acre site CORPORATE with the city’s business develop- ment director. Minimum price for the property HOSPITALITY is $500,000, Hallberg said. OPPORTUNITIES — Anjali Fluker

FOR YOU. Greektown Casino wants rezoning for lot improvement Greektown Casino L.L.C. has ap- plied for a rezoning classification of its one-time permanent casino site to improve a surface parking lot on the 7.1 acres at Gratiot Av- enue and St. Antoine Street. The Detroit City Planning Commis- 9ehfehWj[ >eif_jWb_jo FWYaW][i \eh j^[ /&j^ F=7 9^Wcf_edi^_f Wj sion will consider the proposal at its Nov. 16 meeting at 5:45 p.m. on b[][dZWhoEWabWdZ>_bbiWh[demWlW_bWXb[$9Wfjkh[j^[_cW]_dWj_ede\ the 13th floor of the Coleman A. Young Municipal Center. Site oekhYb_[dji" Ykijec[hi WdZ [cfbeo[[i_dWed[#e\#W#a_dZi[jj_d]"Wi plans call for paving and striping the site for 733 parking spaces and EWdZb[o"H[]_edWb:_h[Yjeh"9ehfehWj[>eif_jWb_joIWb[iWdZCWha[j_d] BANKRUPTCIES Wj ')-+)+"'%%-_]VcYaZn5e\V]f#Xdb The following businesses filed for Chapter 11 protection in U.S. Bank- + ruptcy Court in Detroit Oct. 27-Nov. 2. Under Chapter 11 protection, a compa- ny files a reorganization plan that the court must approve. Optimal Care Dialysis Inc., 18600 .%I=E<68=6BE>DCH=>E James Couzens, Detroit, voluntary Chapter 11. Assets and liabilities un- 6J

November 6, 2006 CRAIN’S DETROIT BUSINESS Page 35

WHERE THE MONEY IS COMING FROM Donations to the Jennifer Granholm and Dick DeVos campaigns by county: Livingston County Macomb County Oakland County $107,701 $314,740 $2.9 million $80,756 $197,414 $1.4 million Washtenaw County Wayne County $667,636 $1.5 million Granholm $125,344 $644,402 DeVos Donors: Granholm leads in local fundraising ■ From Page 1 individual contributors than she does … more than 21,000 individu- WHO GAVE WHAT als who have supported the cam- paign. We have a lot of checks that Here’s a sampling of Southeast Michigan’s business leaders are $25 and $50,” he said. pulled from Crain’s 2005 Who’s In all, more than 53 percent of Who list who have contributed to the money Granholm raised in the campaigns of Gov. Jennifer Michigan has come from the five- Granholm and Dick DeVos. Data county area of Wayne, Oakland, researched and compiled by Public Macomb, Washtenaw and Liv- Sector Consultants Inc., from ingston counties, according to the Michigan Department of State data Public Sector compiled from campaign-finance filings. Michigan Department of State cam- paign finance filings. Granholm Oakland provided the governor ■ Jay Alix, co-founder and co- her largest Southeast Michigan managing principal, Questor share, nearly $2.9 million, com- Management Co. L.L.C., $3,400. pared with $1.4 million for DeVos. ■ Tom Anderson, director, That margin struck Jeff technology center, Automation Williams, Public Sector senior Alley, $3,400. vice president for public policy ■ Douglas Etkin, principal, Etkin and technology, as noteworthy. Equities L.L.C., $3,400. “She is outraising DeVos in Re- ■ Elliot Joseph, CEO, president, St. publican Oakland County, 2-to-1. I John Health, $3,400. would have said that the best ■ Kathleen Ligocki, CEO, president, Granholm could do in Oakland is Tower Automotive Inc., $3,400. to draw even with DeVos, in terms ■ Dan Loepp, president and CEO, of donations,” Williams said. Blue Cross Blue Shield of Michigan, But Bill Ballenger, editor of Lans- $3,400. ing newsletter Inside Michigan Poli- ■ Manuel Moroun, CEO, President, tics, said he’s not surprised. CenTra Inc., $3,400. “After all, she originally was ■ Leslie Murphy, general managing from Southeast Michigan, her hus- partner, Plante & Moran P.L.L.C., band’s from Southeast Michigan,” $3,400. and Granholm’s run twice before DeVos from the region in statewide elec- tions, first to become attorney gen- ■ John Busch, president, Busch’s eral and then governor, he said. Inc. Food Store, $2,000. Also, the fact that DeVos has self- ■ Kenneth Eisenberg, CEO, funded his campaign, contributing president, Kenwal Steel Corp., the majority of the $41 million $3,000. raised, may have diminished tradi- ■ David Fischer, CEO, president, The tional Republican giving. Suburban Collection, Troy, $3,400. “Dick’s self-financed — he’s not ■ Yousif Ghafari, chairman, The put out a major arm fundraising,” Ghafari Cos., $3,400. said Ed Sarpolus, vice president of ■ Dan Gilbert, chairman, founder, Lansing polling and research firm Quicken Loans/Rock Financial Inc., EPIC-MRA Corp. “The people are not $3,400. going to be giving him big dona- ■ Gordon Hartunian, CEO, president, tions.” ABC Appliance Inc., $3,400. Truscott said he didn’t see De- ■ C. Michael Kojaian, executive Vos’ personal contributions as a vice president, Kojaian Cos., factor that would lessen other do- $3,400. ■ nations. Anthony Soave, CEO, president, Sarah Hubbard, vice president of Soave Enterprises L.L.C., $3,400. government relations for the Detroit Regional Chamber, said she believes endorse either candidate. incumbency is a major factor. Public Sector’s data reflects con- “For corporations, they’re going tributions from Jan. 1, 2005, through to be inclined to support the incum- the most recent October filings. bent, because it’s a safe place to put Chris DeWitt, press secretary their money. Particularly if they’re for Granholm’s campaign, said not likely to spend a lot of time en- Granholm’s Southeast Michigan gaged in the political system, but funding reflects that “people like feel it’s important to maintain good what she’s doing. relationships with those currently “There’s the votes at the polls, in power,” Hubbard said. and the votes with the checkbooks, “I think with some of them, the so to speak. And there’s a level of party isn’t the issue, it’s maintain- support there,” he said. ing relationships with the current Amy Lane: (517) 371-5355, alane@ structure.” The chamber did not crain.com DETROIT BUSINESS MAIN 11-06-06 A 36 CDB 11/3/2006 6:13 PM Page 1

Page 36 CRAIN’S DETROIT BUSINESS November 6, 2006 Delphi: GM warranty costs reverberate in fraud charges ■ From Page 3 world. schemes weren’t in a league with “We are pleased to put the SEC Among them was B.N. Bahadur, Enron Corp. and other national se- investigation behind us and con- DELPHI SCANDAL a no-nonsense workout specialist curities scandals. sider this settlement an important to GM and Delphi. Bahadur was “While we consider these ac- step in our transformation Seven former Delphi officers and director of financial accounting and two vendors were charged in civil reporting, agreed to a $40,000 used for round-trip trades of in- tions as very serious misconduct, process,” Delphi CEO Steve Miller complaints filed by the U.S. penalty. ventory to inflate Delphi’s income this isn’t a Tyco situation, where said in a statement last week. Securities and Exchange ■ Stuart Doyle, former executive at and cash flow at the end of 2000. officers of the company put tens of The U.S. Department of Justice is Commission in U.S. District Court in EDS Corp. working with Delphi, “It was an accommodation to a millions of dollars in their own continuing a criminal probe. Detroit last week for participating agreed to a $40,000 penalty. Shareholders have filed several in accounting frauds that inflated customer based on a relationship pockets,” says Kenneth Lench, as- ■ Kevin Curry, another former EDS of 17 to 18 years,” Bahadur said in sistant director in the U.S. Securi- lawsuits seeking compensation for company earnings and cash flow executive working with Delphi, an interview with Automotive ties and Exchange Commission’s en- losses they allege to have absorbed between 2000 and 2004. Four agreed to a $25,000 penalty. others were charged with aiding News last week. forcement division. as a result of misleading financial with bookkeeping violations. Those charged with fraudulent Bahadur, one of those named in guidance. conduct whose cases are pending: Those settling with the government the government complaint, has Six individuals settled their gov- ■ Dark cloud without admitting guilt: J.T. Battenberg III, former CEO of settled his case by agreeing to ernment cases last week without Delphi. ■ Former Delphi CFO admitting or denying their Alan Dawes ■ restitution and penalties. (See sto- The fallout will be felt for years. agreed to pay disgorgement for Paul Free, ex-controller and chief ry, Page 37.) The SEC has charged Delphi and charges. (See box, this page.) Bat- improper gains of $253,000, plus accounting officer. Left unanswered by the investi- nine former Delphi executives or tenberg professes his innocence. interest of $134,000 and a penalty ■ John Blahnik, former treasurer gators is what part personal greed, vendor employees with participat- He retired from Delphi in June of $300,000. He also agreed to a and senior vice president. loyalty to customers and zealous- ing in or aiding and abetting civil 2005, about a year into the SEC in- five-year ban of serving as an ■ Milan Belans, former director of ness to paper over Delphi warts financial fraud. Four other indi- vestigation. Under his successor, officer or director of a public capital planning and pension played in the schemes. The govern- viduals have been charged with turnaround expert Miller, the company. analysis. ■ ment contends Delphi officers aiding and abetting reporting and company filed for Chapter 11 reor- B.N. Bahadur, principal of BBK ■ Catherine Rozanski, former used the schemes to help meet ana- bookkeeping violations. ganization in October 2005. Ltd., agreed to disgorgement of director of financial accounting and $350,000, plus interest of reporting. lyst earnings expectations. Delphi settled its charges last In a statement last week, Batten- $139,257 and a penalty of ■ Judith Kudla, former director of When the dust clears, it appears week by agreeing to adhere to se- berg said the company did nothing $80,000 for his role in improper wrong in booking the warranty finance in Delphi’s information that none of the accused will be curities laws. Delphi cooperated round-trip trading. technology department. charges the way it did. Battenberg found to have made more than fully with the investigation and ■ Atul Pasricha, former assistant ■ said he has cooperated fully with Scot McDonald, an employee of $350,000 by participating. was not fined. It already has restat- treasurer at Delphi, agreed to a EDS who had served as EDS’ That’s not pocket change. But ed its financial statements for the the government. $55,000 penalty. manager of U.S. GAAP consulting even SEC enforcers note that the years 2000-2004. See Delphi, Page 37 ■ Laura Marion, Delphi former and reporting.

Fees: Commercial vehicles to pay more ■ From Page 1 Canada, to pay user fees to support Ron Smith, a chief with Customs the inspections, the release said. and Border Protection and public- Implementation could cause affairs officer, said the biggest con- transportation delays and become cern appears to be the new rule’s BecauseBecause you’reyou’re inin businessbusiness a financial burden for businesses timing. The rule goes into effect in an already six weeks before the beginning of competitive the year, when fees are usually market, said charged. to Sara Hubbard, Customs and Border Protection to MAKEMAKE MONEYMONEY vice president of already charges an annual border- government re- crossing fee to commercial vehi- Introducing lations for the cles and the new USDA fee is sup- Detroit Regional posed to be rolled into that, he HIGH YIELD MONEY MARKET Chamber. Hub- said. But the final word has yet to bard spent time be determined, he said. FOR BUSINESS in Washington Hubbard “(USDA representatives are) last week to lob- telling us they have a plan in place by against the rule. and they’re going to show us be- “We have a major problem with fore we start collecting,” Smith % it for a number of reasons; first of said. all, this comes as a surprise to the Smith also said several organi- APY* business community,” Hubbard zations are lobbying against the said “There was really no warning rule. 4.82AT THE $1,000,000+ DEPOSIT LEVEL and they’re supposed to begin col- Dean Breest, manager of media Interest Rate/Structure lecting the fee right before the relations for Northwest Airlines Calculated daily on any balance, Paid monthly, Tiered structure: Thanksgiving holiday. … They’ve Corp., said the carriers have sub- squarely targeted the holidays as a $1,000,000+ = LIBOR† less 0.50% mitted concerns to the Washing- quick way to gain some revenue.” ton-based Air Transport Association, $100,000-$999,999 = LIBOR less 1.00% According to the Federal Regis- $50,000-$99,999 = LIBOR less 1.50% which is expected to soon have an $25,000-$49,999 = LIBOR less 2.00% ter, the new 2006 Commercial User industrywide position. $0-$24,999 = 0.50% APY Fee for commercial automobiles Two calls late Friday to Jim and trucks will be $105 annually or Rogers, APHIS legislation and † Rates will normally adjust on the first business day of each month, based on the 30-day London Interbank Offered Rate (LIBOR) on the last business day $5.25 a crossing. public-affairs officer, were not re- of the previous month. All APYs are accurate as of 11/1/06. Other forms of transportation turned by press time. have the following per-crossing The rule was introduced to pre- fees: vent the introduction of plant ■ $488 for maritime vessels. pests and animal diseases into the ■ $7.50 per railroad car. U.S. through travel or bioterror- Convenience you can count on. ■ $70.25 for aircraft. ism and to recover the cost of the ■ $5 each for airline passengers. needed inspections. All rates, with the exception of APHIS is responsible for pro- the automobile and truck fees, go tecting U.S. crops and livestock (800) 642-0039 www.flagstar.com Member FDIC up slightly in 2007. from pests and diseases and for Hubbard also said the USDA monitoring and promoting wild- *Annual Percentage Yield (APY) based on current 30-day LIBOR of 5.32% less 0.50% applies to accounts of $1,000,000+ and is accurate as of 11/1/06. also hasn’t communicated with life management and animal wel- Maximum allowable balance is $10 million. Account fees could reduce earnings. A fee of $25 will be imposed for every statement cycle in which the balance in U.S. Customs and Border Protection, fare. the account falls below $5,000 on any day of the cycle. Not available for public units. Rates may change after the account is opened. Certain restrictions may the entity charged with collecting apply. Please contact your local Flagstar branch for more information. Anjali Fluker: (313) 446-6796, the fees. [email protected] DETROIT BUSINESS MAIN 11-06-06 A 37 CDB 11/3/2006 6:28 PM Page 1

November 6, 2006 CRAIN’S DETROIT BUSINESS Page 37 Bahadur: I was trying Delphi: A tale of fear and money www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 36 to help a customer PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] Among the four schemes al- its net income for the second place in the fourth quarter of ASSOCIATE PUBLISHER Christopher Crain, As a well-known industry consul- (313) 446-1645 or [email protected] leged by the SEC, Battenberg quarter of 2000 by $69 million. 2001. EXECUTIVE EDITOR Cindy Goodaker, (313) 446- was actively involved only in the Delphi compounded the prob- Delphi solicited a $20 million tant, B.N. Bahadur is the guy au- 0460 or [email protected] tomakers hire to clean up messes in MANAGING EDITOR Jeff Karoub, (313) 446- warranty controversy. But he lem three months later. It tried to lump-sum payment from EDS in the supply chain. But in the case of 0402 or [email protected] did sign off on fraudulent quar- minimize the impact of a $237 mil- return for a $207 million service DEPUTY MANAGING EDITOR Michael Lee, (313) Troy-based Delphi Corp.’s accounting 446-0416 or [email protected] terly and year-end financial fil- lion payment to settle the warran- contract, really worth $187 mil- scandal, Bahadur was part of the ASSISTANT MANAGING EDITOR/FOCUS ings, the government alleges. ty claims by mischaracterizing lion, according to the govern- Michelle Martinez, (313) 446-1622 or mess. [email protected] “The SEC’s complaint against all but $35 million as a deferrable ment. Delphi, the government In its Oct. 30 civil complaint filed in BUSINESS LIVES EDITOR Shawn Selby, (313) me relates entirely to a settle- pension/retirement expense in- says, should have booked the $20 446-1654 or [email protected] U.S. District Court in Detroit, the U.S. Se- GRAPHICS EDITOR Nancy Clark, (313) 446- ment of disputes between Delphi stead of a warranty claim. million upfront payment as a loan curities and Exchange Commission al- 1608 or [email protected] and General Motors in September and liability. Instead the company COPY EDITOR Vic Doucette, (313) 446-0410 leged that Bahadur or [email protected] 2000 that I believed and continue booked it as a nonrefundable re- earned $350,000 for DATA EDITOR Anne Marks, (313) 446-0418 or to believe was entirely lawful and Other shortcuts [email protected] bate for past business that boosted “buying” $70 mil- proper,” Battenberg said in a Before the end of 2000, Delphi WEB EDITORS Dan Eizans, (313) 446-0473 or income in the quarter. lion in inventoried [email protected]; Roxanne Rives, (313) 446- statement. officers would take another ac- 6078 or [email protected] In 2003 and 2004, Delphi also batteries and gener- Battenberg’s lawyer in the counting shortcut to inflate WEB DESIGNER/PRODUCER Ai-Ting Huang, failed to disclose accurately the ator cores from Del- (313) 446-0403, [email protected] case, William Jeffress Jr., of earnings and cash flow, the gov- amount of financial “factoring” EDITORIAL SUPPORT Anita Duncan, (313) phi in December 446-0329; Joanne Scharich, (313) 446-0419 Washington, did not return ernment alleges. it was using, with the conse- 2000. NEWSROOM (313) 446-0329, FAX (313) 446- phone calls last week. 1687 TIP LINE (313) 446-6766 This time it would involve in- quence that investors were mis- Bahadur, 61, the ventory trading that would im- led about Delphi’s liquidity and principal in consul- REPORTERS Slippery slope plicate Bahadur and others. other financial indicators, the tancy BBK Ltd. in Robert Ankeny: Covers the city of Detroit, Wayne Soon before Delphi spun out of government alleges. Factoring is Bahadur County government, and law. (313) 446-0404 or The government alleges that Southfield, never [email protected]. GM in 1999, Delphi purchased the sale of accounts receivable. Sherri Begin: Covers nonprofits and education. Delphi’s accounting dalliance actually paid Delphi for the inventory, (313) 446-1694 or [email protected] from the automaker precious and the inventory never was shipped Andrew Dietderich: Covers health care, started in May 2000. GM wanted metals and other inventory for transportation, international business and $350 million to $800 million for Misleading investors to him. Bahadur sold the inventory biotech. (313) 446-0315 or making catalytic converters and back to Delphi two weeks later so Del- [email protected]. warranty claims that Batten- other parts. All investors, from giant mutu- Anjali Fluker: Covers Macomb and Oakland berg and Dawes believed they phi could sell it, the government said. counties, services and environment. (313) 446- As the end of 2000 approached, al funds to individuals, rely on ac- In an interview with Crain’s sister 6796 or [email protected]. could resolve quietly without Sheena Harrison: Covers small business, retail Delphi officers expected GM to curate public financial state- properly disclosing them to the publication Automotive News last and nonautomotive manufacturing. (313) 446- buy back the more than $200 mil- ments to assess the risks of a 0325 or [email protected]. public, the government said in week, a contrite Bahadur said he par- Tom Henderson: Covers banking, finance and lion in inventory and remove stock. The SEC’s Lench said Del- technology. (313) 446-0337 or its complaint in U.S. District Court ticipated in the inventory maneuver the inventory from Delphi’s bal- phi’s actions were intended to [email protected]. in Detroit last week. at the behest of a trusted and longtime Bill Shea: Covers media, advertising and ance sheet. hide the true state of the compa- marketing, and Livingston and Washtenaw The Delphi executives feared customer — Delphi. counties. (313) 446-1626 or [email protected] Delphi was depending on the ny. riling their former parent and He said Delphi staff gave him vague Jennette Smith: Covers real estate and proceeds to help the supplier When Delphi eventually hospitality. (313) 446-0414 or overwhelmingly largest cus- answers when he asked why the sup- [email protected]. meet analyst earnings expecta- emerges from Chapter 11 in 2007 tomer, the government said. plier needed his involvement in an in- Brent Snavely: Covers auto suppliers, steel and tions, the government says. or 2008, its shareholders may be restaurants and entertainment. (313) 446-0405 Right after the spinoff, GM ac- ventory deal. But the $70 million or [email protected]. There was just one problem: wiped out. The company’s share counted for more than three- seemed small for a company of nearly LANSING BUREAU GM intended to buy the invento- price dropped to 25 cents after Amy Lane: Covers business issues at the quarters of Delphi’s sales. $26 billion in sales. Bahadur said he Capitol, telecommunications and utilities. (517) ry after Dec. 31 and that was too the filing. But it has bounced 371-5355, FAX (517) 371-2492, They also were concerned assumed Delphi had tapped out a cred- late to save fourth-quarter re- back above $2 a share as in- [email protected]. or 115 W. Allegan, Suite 220, about the blow that revelation of it line at the end of the year. Lansing 48933. sults. vestors such as billionaire David a big warranty liability could de- “Looking back, I should have done ADVERTISING To get around the dilemma, Tepper speculate that Delphi liver to Delphi’s image for quality more due diligence before getting in- ADVERTISING DIRECTOR Marla Downs, (313) Delphi accounting officers will have enough money left af- 446-6032 or [email protected] parts, the government said. Be- volved,” he said. “But it never oc- hatched a “sham inventory reduc- ter debts are paid to compensate SALES INQUIRIES: (313) 446-6052; FAX (313) lieving they eventually could get 393-0997 tion” plan, according to the gov- holders of common shares. curred to me that we were doing some- GM to settle for no more than $100 thing that would get us in this NEW BUSINESS DEVELOPMENT MANAGER million in claims, Battenberg and ernment complaint. First, Delphi Ironically, Battenberg posi- Cathy Ross, (313) 446-0307, [email protected] situation.” ADVERTISING SALES Jeff Anderson, Terri Dawes increased Delphi’s war- enlisted Bank One to buy $200 mil- tioned himself as a leading advo- Bahadur’s lawyer even asked Del- Engstrom, Matthew J. Langan, Shawn ranty reserves by $112 million in lion of the precious metals from cate for tougher disclosure after McCracken, Tamara Rokowski, Dale Smolinski phi to put the transaction in writing. WESTERN ACCOUNTS Ellen Mazen (Los the second quarter of 2000. Delphi, while agreeing that Del- scandals at Enron and Tyco Inter- Delphi declined, and Bahadur didn’t Angeles) (323) 370-2477 But Delphi intentionally mis- phi would buy the metals back be- national Ltd. He was the nation’s CLASSIFIED MANAGER Melissa McKay, (313) fore the end of January 2001. first CEO to sign a letter with push for it, according to the govern- 446-1692 classified the increase as a pre- CLASSIFIED ACCOUNT EXECUTIVE Christina spinoff balance-sheet item in- From the transaction, Delphi company financial statements ment complaint. Jaranowski, (313) 446-1655 stead of an expense, the recognized $54 million in net in- that made him personally ac- Bahadur took pains last week to say MARKETING ASSISTANT Jennifer Dunn that he personally engaged in the ac- MARKETING ARTIST Sylvia Kolaski government said. Dawes and come in 2000 and a boost to 2000 countable for their accuracy. SALES SUPPORT Suzanne Janik, Andrea Battenberg knew at the time that cash flow, the government says. Among the penalties being tivities, not his firm. Without admit- Beckham, YahNica Crawford Delphi agreed to pay the bank $3.5 sought by the government ting guilt, Bahadur agreed to pay back CIRCULATION Candice Yopp, Manager. GM planned to hold Delphi to PRODUCTION MANAGER Wendy Kobylarz the claims to the tune of more million for its involvement. No against Battenberg is a perma- the $350,000 he gained from the trans- PRODUCTION SUPERVISOR Larry Williams, than $200 million, according to one from Bank One, later sold to nent ban on his serving as an of- action, plus interest of $139,257 and a (313) 446-0301 SUBSCRIPTIONS (313) 446-0450, the government’s case. J.P. Morgan Chase, was charged. ficer or director of a public com- penalty of $80,000 for his role in the (888) 909-9111 As a consequence of the mis- The government alleges that pany. improper trading. TO FIND A DATE A STORY WAS PUBLISHED: (313) 446-0367 or e-mail the Crain Information classification, Delphi overstated another Delphi irregularity took From Automotive News From Automotive News Center at [email protected]. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain PRESIDENT Rance Crain SECRETARY Merrilee Crain TREASURER Mary Kay Crain Radio: Executive Vice President/Operations Detroit fades from top-10 radio markets William A. Morrow Group Vice President/Technology, ■ From Page 3 Manufacturing, Circulation Robert C. Adams inherently flawed because it fails TV,” she said. “If we start to dimin- time observer of local radio. less’ executive director of corporate Vice President/Production & Manufacturing Dave Kamis to account for listeners in Ontario ish and that goes away, it’s a loss “The effect (of the drop) is primar- communications. “We always look Corporate Director/Circulation and Ann Arbor, Bender said. for everyone.” ily on the national level,” he said, at customer base and the best way Patrick Sheposh “Windsor doesn’t exist when it Fewer listeners or viewers in the noting that Detroit was once the of reaching that customer base.” G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) comes to ratings,” he said. market should translate into cheap- fifth-largest market. “National ad- Detroit’s massive automotive EDITORIAL & BUSINESS OFFICES: Still, others are concerned about er prices for clients, because some vertisers are interested only in the sector protects the city somewhat 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 the rankings. advertising is based on cost-per- top-10 markets. It’s the national busi- from its tumble in the Arbitron Cable address: TWX 248-221-5122 AUTNEW DET Misi McClelland, media director thousand, but that’s not necessarily ness that is going to be impacted.” rankings, Greater Media’s Bender Subscriptions $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. at Birmingham-based Brogan & Part- a good thing, McClelland said. Few companies that do national said. And as the domestic auto in- Outside U.S.A., add $48 per year to out-of-state ners Convergence Marketing, which That’s because the client’s mes- advertising are willing to discuss dustry improves, so will the rest of rate for surface mail. Reprints: For inquiries call the reprints does ad buys mainly for retail sages reaches fewer people. the calculations behind their cam- Detroit, radio included. department at: (800) 494-9051, Ext. 144 , or at clients, is worried about the mar- “We still want retailers spending paigns. Verizon Wireless is among “The media market is directly re- [email protected] CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 ket. their money in Detroit,” she said. those, but the company did say it is- lated to the health of the local and is published weekly by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. “It’s been a concern for a while “With that decrease, that might not n’t going to make any significant regional economy,” he said. “I Periodicals postage paid at Detroit, MI and now, this trend with Detroit de- be the case.” changes in any huge market based think we will get a handle on this additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, creasing in numbers,” she said. National advertisers are the ones solely on something such as Arbi- and we will stabilize and we will be Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in National retailers especially, she to watch, said Dick Kernen, vice tron changes. able to rebuild on new and firmer U.S.A. said, will take note. president of industry relations at “Our strategy is always going to premises.” Entire contents copyright 2006 by Crain Communications Inc. All rights reserved. “They look at markets with a lot Southfield-based Specs Howard involve where our customers are,” Bill Shea: (313) 446-1626, Reproduction or use of editorial content in any of people, the top 10 for radio and School of Broadcast Arts, and long- said Brenda Raney, Verizon Wire- [email protected] manner without permission is strictly prohibited. DETROIT BUSINESS MAIN 11-06-06 A 38 CDB 11/3/2006 6:18 PM Page 1

Page 38 CRAIN’S DETROIT BUSINESS November 6, 2006 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 28-NOV.3

“The emotions are going president and general man- hydride fuel cell technology to fly no matter what,” she Luxottica buys ager of WKBD-TV50 and WWJ- for the U.S. Army Tank Auto- Military outreach said. “In the awareness TV62, has left to become motive Research, Development campaign, we stay away president and general man- and Engineering Center. from the opinion of the war D.O.C Optics ager of five South Florida ■ Detroit’s Downtown De- and focus on troops.” television stations, CBS velopment Authority on campaign moves Television Stations said in a Wednesday approved pur- for about $90M statement on Monday. No chase of the Harmonie Club CEOs pledge more than cash replacement has been an- building at 267 E. Grand Riv- to lure businesses to Detroit talian company Luxottica nounced. er Ave. for $3.1 million, giv- to Michigan Group S.p.A. has agreed to ■ Michigan State University ing the DDA control of four The plan announced last I acquire Southfield- ne woman’s effort to could provide support to,” football coach John L. Smith Harmonie Park buildings. based D.O.C Optics Corp. for ■ raise awareness of Adams owner Kevin Gleason week by Detroit Renaissance was fired as the team’s head Romulus steel proces- about $90 million, accord- O military sacrifice is said. He won’t know the val- Inc. and the Detroit Economic football coach on Wednes- sor Kreher Wire Processing ing to a company statement now based in Michigan and ue of its contribution until Growth Corp. for a $1 million- day but will finish out the Inc. is planning to expand Thursday. has a national advertising the campaign’s focus is es- a-year program to attract rest of the season, accord- its plant financed by $2.7 The sale is expected to company behind it. tablished. His company’s business to Detroit has the ing to the school’s athletic million in bonds issued by close during the first quar- Linda Kelly is the volun- designers will help develop nonprofit CEOs council department. the Michigan Strategic Fund ter of next year. D.O.C has ■ teer director of Operation the campaign, which will be committing more than Brian Connolly to CEO of and approved Thursday by about 100 stores in Michi- Never Forgotten, a program featured on billboards in money, Renaissance Presi- Dearborn- the state, according to a gan, Ohio, Missouri, Wis- established in 2005 as a ve- the Midwest and on the dent Doug Rothwell said. based Oakwood press release issued by consin, Florida and Illinois hicle for military families East Coast, Kelly said. Detroit Renaissance Healthcare Inc. the Michigan Economic and projects revenue of and the troops themselves Kelly moved earlier this pledged $300,000, the DEGC effective Feb. Development Corp. more than $100 million this to speak to the U.S. public. year to Saline in Washte- will earmark $200,000, and 1. He is cur- Also, the state has year, according to Luxotti- “I’m developing advertis- naw County from Bozeman, both will seek $500,000 more rently presi- awarded a $1 million ca’s statement. ing campaigns, targeting Mont., after her fiancé, U.S. per year from foundations. dent and CEO tax credit toward a $13 Milan, Italy-based Luxot- the general public, to Navy Capt. Edward Zurey, be- But CEOs who make up De- of Blue Water million condominium tica had worldwide sales of strengthen American pride gan a two-year appointment troit Renaissance also will Health System redevelopment in De- about $4.4 billion last year and create appreciation for as chairman of the University in Port Huron. troit, with the MEDC participate directly by mak- and owns 5,700 optical retail patriotic duty,” she said. of Michigan’s Naval Officer Connolly will granting the credit to- ing calls on companies they stores, including Connolly Kelly’s son, U.S. Marine Education Program. He replace Gerald ward the redevelop- do business with, Rothwell LensCrafters, Pearle Vision and Corps Lance Cpl. Jesse also served in Iraq. Fitzgerald, who will remain ment of a vacant and conta- said. A committee of those several other retail chains. Frank, is preparing for his Kelly, a graphic designer, president until June 30, minated site on the city’s providing funds will meet D.O.C president and CEO second tour of duty in Iraq, calls Operation Never For- then become vice chairman east side. St. Paul Community on a regular basis to estab- Richard Golden told Crain’s she said. Her effort is a pro- gotten a “national nonprofit until June 30, 2008, when he Development Corp. plans to lish a work plan and ensure Thursday that he and his gram of the nonprofit Ma- visual communications will retire. construct 86 condominium a robust program, he said. brother Randal, who is a co- rine Corps Family Foundation, firm” that also can help oth- units on the site, the MEDC The goal is to attract na- owner, will not remain based in Salem, Ore. er group’s efforts to support BRIEFLY said in a news release. tional corporations to lo- with the company after the ■ Atlanta-based Adams Out- the troops. Palace Sports and Enter- cate headquarters or re- acquisition closes. Luxotti- ■ Cranbrook Educational door Advertising Inc., one of While describing Opera- tainment’s three Michigan gional offices in Detroit, ca has the option to hire the Community trustee Maxine the nation’s largest bill- tion Never Forgotten as an venues drew nearly 1.2 mil- and also to woo major re- brothers as consultants. Frankel and her husband, board companies, has effort to combat media dis- lion attendees this summer, tailers. Other steps will in- Richard and Randal Golden Stuart Frankel, have made a pledged to help. tortion about the war, she a 15 percent jump from last clude several business-in- will continue to own and op- $10 million gift to the orga- “We thought it was a pub- said her program’s efforts summer’s turnout, the com- vestment seminars to be erate Selective Eyewear Ele- nization. The Frankels is- lic-service campaign we are nonpolitical. pany announced Thursday. held around the country, ments, or SEE, a retail chain sued the gift as a challenge DTE Energy Music Theatre, The Rothwell said. “We also will that sells frames to fashion- to Cranbrook’s other board Palace of Auburn Hills and plan to bring real estate conscious shoppers at af- members to encourage Meadow Brook Music Festival brokers and developers to fordable prices. Golden did them to raise an additional combined to host 132 events. Detroit to educate them on not release annual sales for $36 million toward the en- ■ Greektown Casino will investment opportunities.” SEE, which has 19 stores in dowment, preservation and install two computerized renovation of the Cranbrook several states including poker tables which operate Academy of Art and Art Muse- Michigan, California and without dealers, traditional Tigers banners for sale um, the nonprofit said in a Florida. playing cards or poker release. Detroit Tigers fans can now chips, early next year, The ■ Southfield-based buy the World Series banners Detroit News reported. CB Richard Ellis to buy TechTeam Global Inc. (Nas- that graced city street poles. ■ A federal judge on Fri- daq: TEAM) on Monday an- The banners read, “Where Trammell Crow for $2.2B day denied an injunction in nounced it landed a three- Champions are Made, and a lawsuit filed by Senate PHOTO COURTESY HEALTH ALLIANCE PLAN The Detroit impact of a year contract to provide Championships are Played. Majority Leader Ken Sikke- planned $2.2 billion acquisi- information-technology in- Did she pass the audition? Detroit.” The design also in- ma, R-Wyoming, and other tion of Dallas-based Tram- frastructure support to the cludes the Old English D state Republicans over Yes, that would-be Chenille Sister in pink is Nancy Schlichting, mell Crow Co. by Los Ange- United Kingdom and Ire- president and CEO of Henry Ford Health System. Schlichting set and World Series logo. what they allege are illegal les-based CB Richard Ellis land offices of Boehringer In- executive dignity aside to help perform “Pink Cadillac” at the Fox Prices are $75 and $100, de- contributions to a Senate isn’t yet clear. gelheim GmbH, a German Theatre as part of the third annual Ladies’ Night Out hosted by pending on size. For more CB Richard Ellis said Democratic campaign fund. Schlichting and , president and CEO of pharmaceutical firm. Fran Parker Health information, see www.the Tuesday it plans to acquire The lawsuit sought to pre- Alliance Plan. Schlichting is flanked by real Chenille Sisters Terms were not disclosed. worldiscoming.com/shop. Trammell Crow for $49.51 vent the Senate Democratic Cheryl Dawdy (left) and Connie Huber. The actual third member of ■ Oakland County on Proceeds benefit the Detroit per share of common stock. Fund from spending any fur- the Ann Arbor-based group, known both for its humor and mellow Wednesday launched its Metro Sports Commission. The deal is expected to close ther dollars in the campaign. voices, is Grace Morand. mobile-services pilot pro- in late 2006 or early 2007, gram for Internet users, and is subject to sharehold- bringing select information OBITUARIES er and regulatory approval. from the county’s 15,000 Mike Gerard, managing di- ■ Bud Davies, longtime pages to Web-enabled wire- rector of the CB Richard El- Detroit area radio and tele- Clicking your way to more restful Zzzs less phones and PDAs. lis in Southfield, said it’s vision personality, died ■ Ann Arbor-based This week’s Executive Life section sheep at Garfield to help him get his too early to know how the Oct. 20. He was 82. HealthMedia Inc., which pro- (Page 23) is about something very nine hours of required rest. companies’ metro Detroit ■ Thomas Hunter, former vides online self-manage- near and dear to my heart that I The Better Sleep Council offices will be integrated. vice president and creative never seem to get enough of: sleep. ment programs for health (bettersleep.org) has some CB Richard Ellis has about director at Detroit-based So, when you’re unable to sleep and interesting information on and wellness, disease man- 80 local employees while advertising agency Ross Roy need something to do at 3 a.m., try mattresses and some good how-to Trammell Crow has about agement, medication com- Inc., died of cancer Oct. 24. clicking on these links to find ways sections on shopping and caring for 250. In addition to broker- pliance and behavioral He was 79. to sleep better. the furniture you’re supposed to age, Trammell Crow pro- health, said Wednesday spend the most time on. ■ The National Center on Sleep vides many corporate ser- that it has acquired My Self Robert Mann, the first Disorders Research site And if none of that stuff works, try a vices including consulting Help.com of Boston for an African-American player for (nhlbi.nih.gov/about/ncsdr) is a CD. Singer/songwriter Patti Teel the Detroit Lions and founder great source of information, not to (pattiteel.com) combines songs and and property management. undisclosed amount. ■ of the law firm Robert Mann mention that Garfield is the WEB WORLD yoga poses to bring on slumber for Rochester Hills-based spokesperson for the children’s Daniel Eizans kids who can’t sleep. At this point, ON THE MOVE Energy Conversion Devices Inc. & Associates in Detroit, died version of the site. I recommend the I’m willing to try anything. Sweet has received a $1.8 million of cardiac arrest Oct. 21. He “sleep shot” game, which has you flinging dreams. ■ Shaun McDonald, vice contract to develop its metal was 82. DBpageAD.qxd 9/26/2006 11:49 AM Page 1

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Coverage is not available in all areas. The ALLOVER network covers over 273 million people and is growing. Limited-time offer. Other conditions and restrictions apply. See contract and rate plan brochure for details. Subscriber must live and have a mailing address within Cingular’s owned network coverage area. Up to $36 activation fee applies. Equipment price and availability may vary by market and may not be available from independent retailers. Early Termination Fee: None if cancelled in the first 30 days; thereafter $175. Some agents impose additional fees. Sales tax calculated based on price of unactivated equipment. Rebate Debit Card: Price before $100 mail-in rebate debit card and Unlimited Data Connect plan is $149.99. Allow 10–12 weeks for rebate debit card. Rebate debit card not available at all locations. Must be customer for 30 consecutive days. Must be postmarked by 11/23/06. ©2006 Cingular Wireless. All rights reserved. DBpageAD.qxd 10/19/2006 4:34 PM Page 1

Those packages aren’t going to just get up and walk to the Post Office™ by themselves. But pretty close.

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For Package Pickup details visit usps.com ©2006 United States Postal Service. Eagle symbol and logotype are registered trademarks of the United States Postal Service. Postal carrier Steven Flanagan, Tucson, AZ.