February 6, 2007 — Hayes Lemmerz International Inc. has an agreement to sell its Suspension Systems division to Diversified Machine Inc., a move it says will "maximize long-term value for its shareholders." The operations to be sold are at Bristol, IN, and Montague, MI. The sale price has been reported to be $32 million, including $5.2 million of debt assumption.
In the same attempt to "maximize long-term value," Hayes Lemmerz plans to consolidate its Automotive Components division headquarters and technical center at the corporate headquarters in Northville, MI. "Moving our Automotive Components Group to our Northville World Headquarters will improve information sharing across groups and lower our fixed costs," according to chairman, president, and CEO Curtis J. Clawson.
The research facility in Ferndale, MI, will be sold, too.
Hayes Lemmerz manufactures automotive and commercial highway wheels, brakes, powertrain, structural and other lightweight components, with 33 operations worldwide. The company explains it is pursuing a streamlining strategy in North America, while it focuses global resources on core business.
Clawson, stated: "This step, combined with the restructuring moves in 2006, further shows Hayes Lemmerz' commitment to being in the right core markets and focusing on the right products with the right customers."