20090601-NEWS--0001-NAT-CCI-CD_-- 5/29/2009 7:22 PM Page 1 ® This issue in two sections (Section 1) Vol. 25, No. 22 JUNE 1 – 7, 2009 $2 a copy; $59 a year ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved GM aims to pay key suppliers Southfield-based Plante & Moran ‘Critical vendor’ list would be filed with court P.L.L.C., says critical vendor status 2009 Mackinac will keep some suppliers from go- BY RYAN BEENE ply chain, told a group of suppliers the brink of bankruptcy, with little ing belly-up, but not others. Policy Conference CRAIN’S DETROIT BUSINESS in a Friday conference call that its to no chance of car and truck pro- “For certain suppliers, it will production parts suppliers and lo- duction volumes growing in the not make a difference and they Building Michigan’s new future Suppliers with outstanding re- gistics providers would be includ- near term. will still go into liquidations and ceivables not covered by Thurs- bankruptcies,” he said. From the UAW to green ed in any “critical vendor” motion Industry experts say without a energy to life sciences, day’s $2 billion early payment by included in a GM bankruptcy. source of capital or bridge loans to Additional auto parts suppliers explore Michigan’s need for General Motors Corp. are likely to be If approved by the court, such a the supply base to prevent a rash are likely to follow Van Buren innovation. Special coverage paid even if the automaker files for motion ensures those critical ven- of failures, automakers could find Township-based Visteon Corp., Ply- on Page 4 and beginning on bankruptcy, which is expected to- dors are paid for parts shipped to themselves unable to begin mak- mouth-based Metaldyne Corp. and Page M1, following Page 10 day. the automaker. ing cars when demand returns. the six other major automotive inside. Bo Andersson, GM group vice But much of the cash-strapped Craig Fitzgerald, a partner and Page 3 president for purchasing and sup- supply base is already teetering on automotive supplier consultant at See Suppliers, Page 16 An ice boost in revenue COURTESY OF HOT ROD MAGAZINE An analysis for Crain’s projects more than $1 million in local economic Red Wings impact from the Hot Rod Power Tour. fans and players celebrate the Rollout begins for Wings’ Woodward light-rail project overtime Hotels get victory in Game 5 of the NHL Western This Just In Conference finals May 27 Auto vets form nonprofit in Detroit. The a fill-up postseason is to help manufacturers a lucrative Three veterans of the auto time for the Fee helps bring industry have formed a non- Wings — the profit, Revitalizing Michigan, team is and will seek federal, state gaining back hot rod tour, revenue and and private grants to fund sponsorships their mission of helping even as other replace biz travel manufacturers improve NHL teams their processes. struggle. BY DANIEL DUGGAN CEO Greg Bernabei,who PAUL SANCYA/THE ASSOCIATED PRESS CRAIN’S DETROIT BUSINESS spent nearly 20 years at Ford Last year, the Best Western Ster- Motor Co., including a stint as ling Inn in Sterling Heights could engineering manager in the Wings score with expanded corporate sales depend on business travel to fill clay development studios, BY BILL SHEA year, said Matt Brown, the Red son corporate and advertising rooms on a Tuesday in early June. says the nonprofit, temporar- CRAIN’S DETROIT BUSINESS Wings’ vice president of corpo- clients compared with last year, So with business travel down ily based in Northville, is ne- rate partnership sales. reflecting a fundamental shift in this year, Macomb County hotels gotiating for space in Detroit The Stanley Cup finals are good Postseason advertising alone is the team’s pursuit of corporate are getting a midweek boost June 9 to house several CAD sta- business for the Detroit Red Wings, up 230 percent from 2008. dollars to smaller companies when a hot rod tions and hopes to be up and even amid a global financial cri- Brown declined to provide spe- rather than just big ones. show will bring running by the end of the sis that has ravaged other teams. cific playoff dollar amounts, but The team also is able to seek 3,500 out-of-state ALSO IN TOWN year. Thanks to a change in the it’s believed to be between $1 mil- deals with liquor companies after custom vehicles He said the nonprofit has team’s corporate sponsorship Three lion and $2 million. That doesn’t the National Hockey League relaxed through Michi- conferences: applied for one grant with sales philosophy, Detroit’s post- include ticket sales, the bulk of its restrictions on such sponsor- gan — an event Green tech, IT the U.S. Department of Trans- season corporate sponsorship the team’s revenue. ships. expected to cre- and black portation and will apply for a revenue — luxury suite rentals, financial By contrast, the struggling Among the new postseason ate a $1 million Legends Club seats and advertis- professionals, See This Just In, Page 2 Phoenix Coyotes filed for bankrupt- sponsors are New York-based economic im- ing — is up 40 percent over last Page 9 cy protection on May 5 and have Proximo Spirits Inc., Swedish vodka pact. been existing on loans from the maker Absolut, Carfax, Canadian It’s happening NHL since late last year. Profes- eyewear-maker Apex, Critter Con- partly through the leverage of a sional leagues and individual trol Inc., the Metro Detroit Ford Deal- $25,000 location fee. teams have seen revenue declines ers coalition and Pittsburgh- When Chris Baum was hired as and have cut staff in recent based 84 Lumber. senior vice president of sales and months. The philosophical shift in sales marketing for the Detroit Metro Con- The Red Wings — which hosted came with the arrival of Steve Vi- vention and Visitors Bureau two the Pittsburgh Penguins for the first oletta, who was hired in Decem- years ago, he said he was curious NEWSPAPER two finals games over the week- end — has added 30 new postsea- See Wings, Page 15 See Hotels, Page 16 20090601-NEWS--0002-NAT-CCI-CD_-- 5/29/2009 6:29 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS June 1, 2009 any of the 14 Michigan brokers. without a new contract until the A hearing is expected this month. TAKING NOMINATIONS THIS JUST IN Jeff Shell and his four-person team city and union negotiated a new Employee Coletta Estes of the were the only exceptions and giv- one in October 2002 without a me- Detroit Water and Sewerage Do you know a woman who is poised ■ From Page 1 en a Grosse Pointe office. too clause. Fund brought the initial lawsuit to make a difference in her company Last week, Grubb & Ellis hired The city claimed it owed back in late April, and at least 10 cur- or industry in the next year? Or one who had an innovative idea or grant in June with the U.S. Depart- Shell and his team to develop a pay to AFSCME employees for rent and former city employees developed an innovative practice? ment of Education and in Septem- corporate finance and invest- the original contract period, but have been added since, said Con- If so, she could be a candidate for ber with the U.S. Department of ment sale practice. They will re- not for the 14 months that the way and co-counsel Gerard Man- Crain’s Detroit Commerce. main in Grosse Pointe. union had no contract. The union tese of Troy-based Mantese and Business’ “We want to work with local — Daniel Duggan claims it was owed back pay Rossman P.C. “Women to manufacturing companies to through the date that the new The employees are suing 17 Watch,” which help turn their companies contract took effect. past and present fund trustees will be published around,” he said. Appeals court says Ann Arbor — Chad Halcom and investment advisory firm Sept. 7. Other founders are Robert Mc- owes union workers back pay North Point Advisors L.L.C. The case We’re looking for Tavish, executive vice president of alleges breach of fiduciary and businesswomen The city of Ann Arbor owes business development who More plaintiffs join suit against negligence including approval of accomplishment at all career more than $400,000 in back pay to worked at Ford and General Mo- for travel to more than 100 confer- stages. Nominations should focus employees represented by Ameri- Detroit retirement system tors Corp. before founding his own ences last year. One of these was on a specific current activity, rather can Federation of State County and At least 10 new plaintiffs have than career accomplishment over an sales consulting firm; Michael Piz- a $20,000 or so trip to a pension Municipal Employees Local 369, the joined the prospective class-ac- extended period of time. zo, executive vice president of conference in Dubai for Detroit Michigan Court of Appeals ruled tion lawsuit alleging question- Nominations are due June 15. To technology who spent 15 years in City Council member Barbara-Rose Friday. able investments and expensive nominate, visit a variety of IT roles at Ford; and Collins, a fund trustee. A three-judge panel overturned trips approved by trustees of the www.crainsdetroit.com/nominate. Karen Montgomery, executive vice — Chad Halcom a January 2008 by a Washtenaw General Retirement System of De- president of finance, an accoun- County Circuit Court judge. troit city employees. tant who was formerly in private The city sued in 2007 to appeal Wayne County Circuit Judge Amy ORRECTIONS banking at J.P.