Federal-Mogul

Federal-Mogul Holdings Corporation
Public
Traded as NASDAQ: FDML
Industry Auto parts
Founded 1899 (1899)
as the Muzzy-Lyon Company
Headquarters Southfield, Michigan, United States
Key people
 Carl Icahn, Chairman of the Board
Rainer Jückstock, CEO, Federal-Mogul Powertrain
Brad Norton, CEO, Federal-Mogul Motorparts
Products Pistons, Rings, Pins, Liners, Valve Seats and Guides, Ignition, Bearings, Bushings, Heat shields, Sealing, Systems Protection, Transmission, Brake, Chassis, Wiper products
Revenue Increase US$7.317 billion (2014)[1]
Decrease US$168 million) (2014)[1]
Total assets Decrease US$7.067 billion (2014)[1]
Total equity Decrease US$806 million (2014)[1]
Number of employees
 48,600 (December 31, 2014)
Website www.federalmogul.com

Federal-Mogul Corporation is an American developer, manufacturer and supplier of products for automotive, commercial, aerospace, marine, rail and off-road vehicles; and industrial, agricultural and power-generation applications.[2]

Federal-Mogul operates two independent business divisions, called Federal-Mogul Powertrain and Federal-Mogul Motorparts. The two divisions each have their own chief executive officer.

History

Federal-Mogul was founded in Detroit in 1899 by J. Howard Muzzy and Edward F. Lyon as the Muzzy Lyon Company.[3] Muzzy and Lyon went into business together producing mill supplies and rubber goods.[3] In addition, the partners formed a subsidiary called Mogul Metal Company where they launched various bearing innovations.[4][3][5] Muzzy Lyon began producing bearings made from their own Babbitt metal called Mogul, an alloy of tin, antimony and copper.[4][3][5] The product was trademarked under “Mogul” and “Duro”.[4][3][5] In addition to Babbitt metal, Muzzy and Lyon invented a process of custom die-casting bearings.[5]

The Muzzy Lyon Company bearings business proved successful in the early 1900s and became the pair's main concern, with Buick as one of their earliest customers.[3] The Muzzy Lyon Company later merged with an engine bearings and bushings manufacturing company, Federal Bearings and Bushings Corporation.[5] Federal Bearings & Bushings Co. was founded in 1915 by a group of Detroit businessmen.[4] In 1924, the Muzzy Lyon Company and Federal Bearings and Bushing merged to become Federal-Mogul Corporation.[5] The combined company also manufactured bronze bearings, a product the Muzzy Lyon Company did not supply.

Federal Mogul established a research division in 1929, with the help of Battelle Memorial Institute.[5] During the depression, Federal-Mogul invested in the Equi-Poise propeller division.[5]

In 1932, the company developed a new alloy called C-100, one of the first new bearing materials since the discovery of Babbitt metal.[5] The Federal-Mogul research team revamped the C-100 in 1934 to create a C-50 alloy.[5]

In 1955, the company acquired National Motor Bearing Company, resulting in a company name change to Federal-Mogul Bower.[6]

In the late 1950s, the company opened business operations in Switzerland.[5] In 1962, the company opened established an overseas service center in Antwerp, Belgium.[7] In 1963, Federal-Mogul Bower’s Arrowhead division manufactured components for NASA’s Saturn launch vehicle.[7]

In April 1965, Federal-Mogul Bower merged with Sterling Aluminum Products. The combined company was renamed the Federal-Mogul Corporation.[6][8]

In 1966, Federal-Mogul Corporation relocated from downtown Detroit, establishing its corporate headquarters in Southfield, Michigan.[7]

In 1981, Federal-Mogul Arrowhead parts were implemented in the NASA space shuttle launch.[7]

In 1981, the company attempted to patent a process for curing rubber based on the mathematical equation written by Swedish chemist Svante Arrhenius in 1889. The US Patent Office rejected Federal-Mogul's claim, on the basis that neither a formula, as a law of nature, nor a computer program based on such a formula, could be patented.[9] That same year, the company won a claim in the Supreme Court to the patent.

In 1998, the company acquired Cooper Industries and brands including Anco wiper blades, Champion ignition, MOOG chassis, Wagner and Abex friction, and Wagner and Blazer lighting.[10]

That same year, Federal-Mogul also acquired Turner & Newall, a building materials company based in Manchester, UK. Turner & Newall was one of the world's largest manufacturers of asbestos-related products, including those made with blue crocidolite asbestos mined in South Africa. Turner & Newall was responsible for the Armley asbestos disaster in Leeds, UK. After the acquisition, Federal-Mogul set aside approximately $2.1 billion to cover asbestos-related claims but that amount provide insufficient.[11] The large number of products liability claims that came with this acquisition were largely responsible for Federal-Mogul's federal Chapter 11 bankruptcy filing in 2002.[12]

During the company’s restructuring, Federal-Mogul Corporation acquired multiple companies including Robert G. Evans Co., Hanauer Machine Works, Inc., Metaltec, Inc., Mather Co. and Fel-Pro, Inc.[13] The company emerged from Chapter 11 reorganization in January 2008 and in April 2008, the company listed Class A common stock on NASDAQ under the trading symbol FDML.[13]

In June 2010, Federal-Mogul expanded further into Asia by opening a headquarters and technical center in Shanghai, China.[14] The Asia Pacific headquarters and technical center facility contains powertrain dynamometers and vehicle braking test cells among other processes.[14] The location allows for increased technical support to powertrain and vehicle customers as well as technology development.[14]

Federal-Mogul acquired Daros Group in June 2010, a privately owned supplier of pistons for large bore engines used in industrial energy generation and commercial shipping.[15] The acquisition of the group included operations in China, Sweden and Germany.[15] The purchase of Daros added two-stroke and four-stroke piston ring products to Federal-Mogul’s portfolio of industrial piston rings.[15]

Technical Center, Ann Arbor, Michigan

In December 2010 Barcelona (Spain) warehouse was shut down and moved to Madrid.

In March 2012, Federal-Mogul’s board of directors announced its decision to modify the company’s corporate structure to create separate Powertrain and Vehicle Components segments, each with its own CEO.[16] Rainer Jueckstock, former senior vice president of the company's Powertrain Energy business, was named CEO for the Powertrain segment effective April 1, 2012.[16] In February 2014, Daniel A. Ninivaggi was appointed CEO of the Federal-Mogul Vehicle Components segment (VCS).

In July 2012, Federal-Mogul announced a definitive agreement to purchase the BERU spark-plug business from BorgWarner Inc.[17]

In September 2014, the company formally announced the long pending modification to the company's corporate structure would be a split into two separate companies, Federal-Mogul Powertrain, and Federal-Mogul Motorparts. The Powertrain division will focus on the manufacturing and selling of OEM auto parts while the Motorparts division focuses on selling aftermarket parts. Each individual company has their own CEO and corporate level staff that will continue to report to the board of directors of Federal-Mogul Holding Corporation. The company expects the split to be completed in the first half of 2015 pending regulatory approval.[18]

In 2014, Honeywell completed the $155 million sale of its friction materials business to Federal Mogul Corp.

In February 2017, Ninivaggi was promoted to CEO of the Icahn Automotive Group, LLC. Brad Norton was promoted to CEO of Federal-Mogul Motorparts as his replacement.

Company divisions

Federal-Mogul Powertrain designs and manufacturers original equipment powertrain components and system protection products in the United States and internationally, its diversified production line consists of various products, ranging from powdered metal parts to space suits, including engine bearings, pistons, piston pins, piston rings, cylinder liners, valve seats and guides, spark plugs, ignition coils, transmission products, technical textiles and connecting rods.[4] Bower Roller Bearing Division was a major supplier of bearings for missiles and aircraft, and for many other industries — automotive, construction machinery, machine tool and farm equipment.[19]

Federal-Mogul Motorparts sells and distributes products under more than 20 brands in the global vehicle aftermarket, including ANCO wiper blades; Bentley-Harris protection solutions; Champion spark plugs, wipers and filters, BERU glow plugs; AE, Fel-Pro, Goetze, Nural, Glyco and Payen engine products; MOOG steering and suspension parts; and Ferodo and Wagner brake products.[2]

Awards

Federal-Mogul has received 16 Automotive News PACE Awards. [20] The awards are for automotive suppliers that show innovation, technological advancement and business performance.[21] Federal-Mogul received their first PACE Award in 2003; their most recent was awarded in 2016.

References

  1. 1 2 3 4 "Federal-Mogul - Investors - SEC Filings". corporate-ir.net.
  2. 1 2 "FEDERAL-MOGUL TO PRESENT INNOVATIVE RANGE OF EFFICIENCY-ENHANCING TECHNOLOGIES AT THE 2012 IAA COMMERCIAL VEHICLE SHOW IN SEPTEMBER". Reuters. Retrieved 2 August 2012.
  3. 1 2 3 4 5 6 Turner, Tyya N. (2005). Vault guide to the top manufacturing employers. New York, NY: Vault Inc. pp. 108–112. ISBN 1-58131-324-1.
  4. 1 2 3 4 5 Klier, Thomas H; Rubenstein, James N. (2008). Who really made your car? Restructuring and geographic change in the auto industry. Kalamazoo, MI: W. E. Upjohn Institute. pp. 68–69. ISBN 978-0-88099-333-3.
  5. 1 2 3 4 5 6 7 8 9 10 11 "1899-1940: Founded on Innovation". Federal-Mogul Corporation. 2011. Retrieved 2011-03-06.
  6. 1 2 "1941-1956: Diversifying for Success". Federal-Mogul Corporation. 2011. Retrieved 2011-03-06.
  7. 1 2 3 4 "1957-1974 Going Global". Federal-Mogul Corporation History. Retrieved 13 July 2012.
  8. ↑ Morton, Hudson T. (1965). Anti-friction Bearings. Ann Arbor, MI: Hudson T. Morton. p. 465.
  9. ↑ "Computer-aided processes are patently confusing". New Scientist. 89 (1244): 678. 12 March 2008. ISSN 0262-4079.
  10. ↑ Rodengen, Jeffery (1998). The Legend of Federal-Mogul. Florida: Write Stuff Enterprises, Inc. p. 151. ISBN 0-945903-44-8.
  11. ↑ "Federal-Mogul Corporation". 2014-06-10.
  12. ↑ Federal Mogul:" Wheeling & Dealing in Asbestos Liability, Environmental Working Group website
  13. 1 2 "1975-2011 A Bright Future". Federal-Mogul Corporation History. Retrieved 13 July 2012.
  14. 1 2 3 "Federal-Mogul Opens Shanghai Headquarters and Technical Center". eBearing News. Retrieved 3 August 2012.
  15. 1 2 3 "Federal-Mogul Buys Piston Ring Caster Daros". American Foundry Society. 25 June 2010. Retrieved 27 July 2012.
  16. 1 2 "Federal-Mogul Says Rainer Jueckstock To Succeed Jose Maria Alapont As CEO". RTT News. 12 March 2012. Retrieved 1 August 2012.
  17. ↑ Walsh, Dustin (3 July 2012). "Federal-Mogul acquisition of BorgWarner's Beru spark plug unit expected to boost sales $80 million". Crains Detroit Business. Retrieved 1 August 2012.
  18. ↑ Clothier, Mark (3 September 2014). "Icahn’s Federal-Mogul to Split Motorparts, Powertrain". Bloomberg.
  19. ↑ Searing heat, frigid cold torture missile bearings. // Aviation Week & Space Technology, May 2, 1960, v. 72, no. 18, p. 14.
  20. ↑ . Crain Communications http://www.autonews.com/assets/html/pace_award/past_winners.html. Retrieved 13 September 2016. Missing or empty |title= (help)
  21. ↑ "2013 Automotive News PACE Awards". Crain Communications Inc. Retrieved 13 September 2016.

This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.