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SOUTHFIELD, Mich., Nov 5, 2012 - (ACN Newswire) - Federal-Mogul Corporation (NASDAQ: FDML) today announced a further action in the company's strategy to strengthen its global ignition market leadership. Following Federal-Mogul's October 1, 2012 acquisition of the BERU spark plug business, the company today announced that it has entered into an additional agreement with BorgWarner BERU Systems GmbH to serve as the exclusive global independent aftermarket distributor of the remaining BERU ignition products. Federal-Mogul will also become the exclusive licensee of the BERU brand name for sale of ignition products in the aftermarket. The transaction is pending customary closing conditions including approval of competition authorities.
As a result of the new agreement, Federal-Mogul will sell and distribute in the automotive aftermarket BERU glow plugs, flame glow plugs, glow controllers, connectors and components, ignition wires, sensors and coils. The BERU glow plug product line is recognized as a market leading diesel ignition technology, particularly in Europe. BorgWarner will continue to design, develop, manufacture and sell these BERU ignition products directly to customers in the original equipment assembly and original equipment service markets.
"This agreement further demonstrates Federal-Mogul's commitment to attain a leading market position for ignition products in both the original equipment and aftermarket segments," said Michael Broderick, Federal-Mogul co-CEO and Vehicle Components Segment CEO. "BERU and Champion(R) possess a complementary product range, each with strong brand awareness in automotive and industrial markets. Like Champion, BERU has been a trusted brand in the marketplace for 100 years, and the BERU ignition product line is an excellent fit with our Champion aftermarket ignition product portfolio. This agreement will enable aftermarket distributors and repair professionals to have one-stop access to one of the world's most extensive catalogs of ignition products," Broderick added.
To facilitate the Champion and BERU ignition product catalog integration, Federal-Mogul will consolidate its aftermarket ignition products distribution for the EMEA region into a modern, centrally located distribution center in Ludwigsburg, Germany. The consolidated distribution center will provide improved operations and customer service efficiency by fulfilling orders from a single location.
"With the October 1, 2012 acquisition of BERU's spark plug business and this new license and aftermarket distribution agreement effective January 1, 2013 for all remaining BERU ignition products, the Federal-Mogul ignition portfolio brings new scale and choice to our large European aftermarket customer base," said Broderick. "These are strategic investments in growing our ignition product portfolio, which will make a broader range of quality ignition products available to our aftermarket customers," he added.
Champion is a globally recognized Federal-Mogul brand that has operated in the auto industry since 1907. The Champion brand portfolio includes spark plugs for combustion engines including lawn and garden equipment, motorsports, automotive, commercial vehicles and industrial machinery. Federal-Mogul today operates eight manufacturing sites and three technical centers within its ignition product line at facilities in the U.S., Europe, China, India and Mexico. The company sells spark plugs and other ignition products to several leading global automotive manufacturers, and to aftermarket distributors and retail outlets in more than 90 countries.
About Federal-Mogul
Federal-Mogul Corporation designs, engineers, manufactures and distributes technologies to improve fuel economy, reduce emissions and enhance vehicle safety. The company serves the world's foremost original equipment manufacturers of automotive, commercial, aerospace, marine, rail and off-road vehicles; and industrial, agricultural and power-generation equipment. The company also develops and distributes to the aftermarket an extensive product portfolio with more than 20 of the world's most recognized brands, including ANCO(R) wiper blades; Champion(R) spark plugs, wipers and filters; AE(R), Fel-Pro(R), Goetze(R), Glyco(R), Nural(R) and Payen(R) engine products; MOOG(R) chassis parts; and Ferodo(R) and Wagner(R) brake products. Federal-Mogul was founded in Detroit in 1899. The company employs 45,000 people in 34 countries, and its worldwide headquarters is in Southfield, Michigan, United States. For more information, please visit www.federalmogul.com .
Forward-Looking Statements
Statements contained in this press release, which are not historical fact, constitute "Forward-Looking Statements." Actual results may differ materially due to numerous important factors that are described in Federal-Mogul's most recent report to the SEC on Form 10-K, which may be revised or supplemented in subsequent reports to the SEC on Forms 10-Q and 8-K. Such factors include, among others, fluctuations in domestic or foreign vehicle production, fluctuations in the demand for vehicles containing our products, the company's ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions or price reductions to obtain new business, conditions in the automotive industry, and general global and regional economic conditions. Federal-Mogul does not intend or assume any obligation to update any forward-looking statements.
CONTACTS:
Ursula Hellstern for media questions
+49 611 201 9190
Ursula.Hellstern@federalmogul.com
Jim Burke for media questions
+1 248 354 4530
Jim.Burke@federalmogul.com
David Pouliot for investor questions
+1 248 354 7967
David.Pouliot@federalmogul.com
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Federal-Mogul Corporation via Thomson Reuters ONE
Topic: Press release summary
Source: Federal-Mogul
https://www.acnnewswire.com
From the Asia Corporate News Network
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