Delphi Sheds Akebono Shares, Toyota Steps Up to the Plate

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Financially-strapped Delphi Corporation (NYSE:DPH )(Troy, Michigan) has announced that it has sold the 5.5 million shares (5.9%) it held in Akebono Brake Industry Company Limited (TOKYO: JP:7238)(Tokyo, Japan) for $33 million, as part of its restructuring strategy. Delphi reported a staggering $4.8 billion loss in 2004 as it struggles with continuing production cuts by its major customer, General Motors - 10% in the first two quarters of 2005 and a projected 9% for the third quarter - as well as escalating costs of raw materials and energy.

Akebono has repurchased 3.5 million of those shares and Toyota Motor Corporation (NYSE:TM ) (Toyota City, Aichi, Japan and Erlanger, Kentucky), Akebono's largest shareholder, has purchased two million shares, raising its stake in the company to 15.9%. Ambrake Corporation (Elizabethtown, Kentucky), an equally-owned joint venture between Delphi and Akebono, will be purchased by Akebono and made a wholly-owned subsidiary of the company.

Akebono began business with aftermarmet operations in 1980 in Chicago, Illinois and now has four manufacturing plants in Kentucky. Akebono's headquarters and R&D technical center in Farmington Hills, Michigan was opened in 1989.

Ambrake Corporation (Elizabethtown, Kentucky), Akebono's erstwhile joint venture with Delphi (or, more precisely, between what was then the Delco Moraine Division of General Motors, later to become Delphi) was formed in 1986 and began operations in 1988 to manufacture brakes.

AMAK Brake LLC (Glasgow, Kentucky), a joint venture with Itochu (NYSE:ITOCY [ADR] ) (Tokyo, Japan) was formed in 1994 to manufactures brakes and now has annual sales of $108.1 million.

AMTEK (Springfield, Kentucky) opened in 2002 and produces brake components.

The Akebono Remanufacturing Center in Munfordville, Kentucky rebuilds and packages brakes.

Today, Akebono leads the global automotive industry in the development and analysis of advanced braking solutions such as brake noise, vibration and harshness (NVH) control. Akebono produces a range of foundation brake assemblies for both OEM and aftermarket customers.

Akebono operates R&D technical centers in the United States, Japan, and France, and manufactures brake friction materials and components in 30 wholly-owned or affiliated facilities worldwide, including the four production facilities in Kentucky. All of Akebono’s operations are QS9000 and ISO14001 certified and the company has received a number of quality and performance awards from customers.

The company employs 6,800 people worldwide and 1,900 in North America. In 2001, the company's worldwide sales totaled $1.2 billion, North American sales accounting for $250 million and unconsolidated joint ventures providing $300 million.

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