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Remy hybrid agreements help offset GM loss

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Pendleton-based Remy International announced Wednesday morning that it will continue supplying electric motors to Allison Transmission Inc. in Indianapolis for its hybrid systems used in buses.

The agreement, as well a similar deal signed Jan. 21 with German automaker Daimler AG, helps to counter a loss of business from General Motors Inc.

GM said Tuesday that it intends to design and manufacture some electric motors for its cars and reduce the amount it purchases from outside suppliers such as Remy.

Remy has for years produced electric motors for GM’s hybrid sport-utility vehicles such as the GMC Denali and Cadillac Escalade.

Still, Remy anticipated GM’s decision and expects to receive additional business from new customers to offset the loss, company spokesman Matt Stewart said.

“I think when you have a big auto customer that has the capabilities that GM has, the tendency for them to bring some of their manufacturing in-house is not a surprise,” he said. “Remy is prepared for that.”

The U.S. Department of Energy selected GM in August to receive a $105 million grant to develop the capabilities to produce electric motors and related electric drive components.

The first GM electric motors will be used in the next generation of the automaker’s hybrids, such as the Chevrolet Tahoe SUV, beginning in 2013.

GM’s plans prompted Kevin Quinn, general manager of Remy’s electric motor division, to fire off a letter Wednesday to suppliers in an attempt to alleviate any fears.

“Remy’s growth plans in hybrid electric motors are not affected by this announcement,” he said. “We will continue, as planned, to develop a full line of products based on our technology.”

The company’s growth plans hinge largely on its development of “off the shelf” electric motors for hybrid vehicles.

The standardized line unveiled in October allows Remy to offer to hybrid automakers a variety of applications quickly and at a lower cost, as opposed to custom-tailored applications for a particular vehicle.

Remy said Nov. 16 that its third-quarter profit rose to $16.5 million, up from $4.3 million in the same quarter the previous year, as the company cut staff and pay to compensate for lagging sales.  Quarterly revenue fell 20 percent, to $223.7 million.
 

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  1. PJ - Mall operators like Simon, and most developers/ land owners, establish individual legal entities for each property to avoid having a problem location sink the ship, or simply structure the note to exclude anything but the property acting as collateral. Usually both. The big banks that lend are big boys that know the risks and aren't mad at Simon for forking over the deed and walking away.

  2. Do any of the East side residence think that Macy, JC Penny's and the other national tenants would have letft the mall if they were making money?? I have read several post about how Simon neglected the property but it sounds like the Eastsiders stopped shopping at the mall even when it was full with all of the national retailers that you want to come back to the mall. I used to work at the Dick's at Washington Square and I know for a fact it's the worst performing Dick's in the Indianapolis market. You better start shopping there before it closes also.

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  4. If you only knew....

  5. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

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