DETROIT BUSINESS MAIN 06-25-07 A 1 CDB 6/22/2007 6:37 PM Page 1 ® http://www.crainsdetroit.com Vol. 23, No. 26 JUNE 25-JULY 1, 2007 $2 a copy; $59 a year ©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN UAW, GM, Delphi reach iPhone? Foreign firms tentative pact The United Auto Workers has reached a tentative agreement with Delphi Corp. and General Motors Corp. on iDon’t know a new labor deal for the go shopping bankrupt parts supplier, the company announced Executives will wait and see before Friday. The agreement is subject to union ratifica- tion and approval by the buying newest wireless device U.S. Bankruptcy Court. Details were not immedi- BY SHEENA HARRISON porate data-encryption technolo- ately available at press CRAIN’S DETROIT BUSINESS gy or offer additional features be- for suppliers time Friday. yond what’s currently available Ap- Jeff Dockery, UAW Local Some local executives say on wireless devices such as the ple Inc. 2195 committeeman, said ’s new iPhone certainly BlackBerry or Treo. Friday that a ratification looks cool, but they probably “You don’t want to rush out Growth in Asia; need for vote at Delphi’s steering won’t trade their current PDAs and buy 20 of them and find out it plant in Athens, Ala., is for the new device when it doesn’t do anything better than scheduled for Thursday, launches Friday. any other phone,” said Bruce plants, technical help cited Automotive News reported. They’re McFarland, CFO of the waiting to Local 2195 represents Bloomfield Hills-based en- BY BRENT SNAVELY tional Ltd. see whether about 1,200 UAW workers gineering company CRAIN’S DETROIT BUSINESS Experts say the trend is the nat- the phone at the plant. Hubbell, Roth & Clark Inc. ural result of a rapidly growing au- can sup- Also voting on the agree- Apple will begin sell- For nearly two years, merger tomotive industry in Asia and the port cor- ment will be about 400 ing the iPhone at 6 p.m. and acquisition professionals have need for suppliers based there to hourly workers who took Friday at $499 for the 4- said overseas companies were ac- acquire technology and establish early retirement as part of gigabyte model and $599 tively shopping for U.S. automo- manufacturing last summer’s massive for 8 gigabytes. The tive suppliers. But examples were capabilities. GM-financed buyout of phone will be sold on- hard to find. “I think it’s Delphi workers, Dockery line; at Apple retail That’s inevitable and I said. They are still deemed stores, including loca- INSIDE changing. don’t think as active or preretirement, tions at Twelve Oaks Mall In recent that’s a nega- For U.S. suppliers months, sever- and they pay union dues. in Novi and the Somerset acquired by tive,” said In recent days, reports Collection in Troy; and at overseas al overseas au- James Orchard, have surfaced that the about 1,800 AT&T wireless retail companies, see tomotive sup- president of UAW was close to conclud- stores nationwide. list Page 24. pliers and Sterling ing a deal with Delphi. The Not AT&T, which is the exclusive manufacturers Heights-based every Orchard two sides were trying to iPhone service provider, remod- have either purchased, invested in interior suppli- executive eled 40 Michigan stores and plans or seriously considered buying as- bridge differences over will be in line er Faurecia North America. how fast wages and bene- to open four more this year. sets from some of the largest tier- “I think you are seeing … very when Apple’s one suppliers in North America, in- fits should rise for the iPhone goes on sale Much of that is taking place as financially strong and capable Chi- thousands of new hires Friday. cluding Lear Corp., Dana Corp., Magna See iPhone, Page 24 who replaced more than International Inc. and Noble Interna- See Suppliers, Page 24 20,000 UAW members who took buyouts and early re- tirements last year. Only 4,000 remaining Delphi employees began working there before it en- DEGC enlists help to boost case for Detroit retail tered Chapter 11 reorgani- zation in October 2005. A new labor deal is nec- A study of essary for the company to Social Compact will study demographics downtown De- leave reorganization, prob- troit and sur- rounding neigh- ably sometime next year. BY SHEENA HARRISON city’s Next Detroit Neighborhoods nesses that we feel are well-suited borhoods Competing private equi- CRAIN’S DETROIT BUSINESS Initiative. to those particular neighbor- released in Octo- ty groups are trying to buy It’s hoped that the numbers will hoods,” said DEGC President and The Detroit Economic Growth Corp. ber showed that Delphi and position it as a show Detroit’s population can sup- CEO George Jackson Jr. largely overseas electron- is banking on the help of a Wash- the central city port and sustain retail and grocery Social Compact bases its reports ics company. The two ington-based nonprofit to create a has more resi- development, despite what retail- on market information that isn’t groups are led by Ap- business case for attracting retail dents and in- paloosa Management L.P. to the city. ers might think of Census figures used in typical demographic or Jackson come than is and Highland Capital Man- Social Compact Inc. plans to work and other traditional demographic Census projections. That includes projected in agement L.P. with the DEGC over the next three studies of the city. local tax-assessment data, build- Census figures. — Crain News Service years to study spending power in “What we’re going to do is look ing-permit activity, automobile For instance, the average house- at the numbers and then develop registrations, credit-bureau infor- hold income for downtown resi- See This Just In, Page 2 Detroit neighborhoods. That in- cludes six areas outlined in the the strategies to attract retail busi- mation and utility data. See Compact, Page 24 Investor Richard Pzena CRAIN’S LISTS would be tough on Largest banks and thrifts, Page 14 NEWSPAPER Lear’s CEO, Page 3 Largest mortgage lenders, Page 18 DETROIT BUSINESS MAIN 06-25-07 A 2 CDB 6/22/2007 6:52 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS June 25, 2007 combination of technologies, in- nies, the largest in the industry, forms Committee. day that it would open by the end THIS JUST IN cluding wind turbines, solar pan- would have controlled the market The committee will address the of the day. els, hydrogen cells and waste for global test dummies used in billions of dollars of unfunded lia- On Thursday, lead investor Do- ■ From Page 1 burning. new and existing vehicles. bilities for retiree health care, ac- minic Pangborn said the restaurant A June 2010 opening is planned, — Crain News Service cording to a press release from would open Friday, but the com- Dillon’s office. Chinese company buys contingent on backers getting ap- plex remained proval to use 1,800 acres of state The committee is charge with NSF wins certification suit closed as of 1 Plastic Trim for $8.7M land in Grayling Township. Plans finding ways for the state to shore NSF Interna- p.m. By The majority ownership of include a renewable-resources Ann Arbor-based up funding for health care and tional has successfully enforced save money on health cares costs midafternoon, Ohio-based auto supplier Plastic learning center, water rides, roller its certification-mark rights for state retirees and employees. Trim L.L.C., which has employees coasters, snowmobile tracks, to- Dawn Thompson, against Duso Chemical Co. Inc. in a Rep. Mark Meadows, D-East in Bingham Farms and East boggan lifts, a shopping district a spokeswoman and a video-game center. New York state lawsuit. Lansing, will be in charge of the for Asian Vil- Tawas, was acquired by Hong Poughkeepsie, N.Y.-based Duso committee. Also on the commit- — Tom Henderson lage and project Kong, China-based Minth Group distributes chemicals used in mu- tee will be Andy Coulouris, D-Sagi- Ltd. in an $8.7 million deal. The nicipal water-treatment plants naw; Dudley Spade, D-Tipton; manager for In- Beavercreek, Ohio-based firm Makers of crash dummies drop worldwide. NSF is a not-for-prof- Lorence Wenke, R-Richland; and Pangborn finity Global Part- was sold to a partnership that plans to combine companies it organization that develops Brian Calley, R-Portland. ners Inc., a public-relations firm, also includes minority-stake in- standards and certifies food, wa- — Andrew Dietderich said the complex would open by vestments by Tokyo’s Sojitz Corp. Two suburban Detroit makers ter and dietary supplements. day’s end. Asian Village is also the and Plastic Trim managers. of crash dummies have dropped NSF sued and won a case in the Asian Village: We’re set to open host of The Parade Co.’s annual — Crain News Service plans to combine because execu- U.S. District Court for the Southern rooftop party for the Target Fire- tives from both companies saw District of New York seeking a per- Asian Village, the $7 million works. Group to provide ‘green’ energy little prospect of winning Euro- manent injunction against Duso, multirestaurant complex near pean regulatory approval. which then admitted it falsely the Renaissance Center, said Fri- — Brent Snavely for planned theme park “The prudent thing to do was to represented some of its product Partners Green, a Brighton coali- terminate this thing,” Douglas Un- as NSF-certified and made unau- CORRECTIONS kel, CEO of Plymouth-based First thorized use of the NSF mark.