mary kramer:word-of-mouth can work both ways - crain's

can force all of us —business and govern-ment — to make toughchoices on such thingsas redundant govern-ment operations andtoo-rich legacy costs.

As we work to solvethose issues, we cannotlive day to day with thesteady diet of negativenews.

When the shoppingcenter council askedme to speak to their group aboutthe power of the news media, I dida quick tally of our own editions,just six issues, from March 5 to

April 16. I cataloguedonly the stories onPages 1, 2 and 3, ourprime news spots.

In just those sixweeks, we reported onindustry and companyplans to hire more than3,000 workers and in-vest nearly $1 billion invarious constructionprojects.

A lot of people blamethe news media for be-

ing relentlessly negative. But atanother business forum I attendedlast week, Detroit EconomicGrowth Corp. President George

Jackson Jr. urged attendees to be-come word-of-mouth marketersthemselves. (See story, Page 28.)

That’s good advice. Consider therecent column by a Detroit Newscolumnist about a chance en-counter during a visit to Massa-chusetts. Another person spottedhis Michigan plates and asked: “Sohow are things in Michigan?”

The columnist reported that hereplied: “Worst economy in the na-tion. We lead the nation in foreclo-sures. No one can sell their homes.And in just the last year, the autocompanies have cut somethinglike 100,000 hourly jobs.”

All that may be true, but is it the

complete picture? I’ll bet thewoman, who I’m sure regrettedasking the question, may have told10 people about the exchange. Andthey each told 10 more.

That’s the power of word-of-mouth marketing.

We all need to know enoughabout what’s happening, good andbad, in our region to be effectiveword-of-mouth marketers. Whynot start today?

If you’re in the business of sell-ing national retailers on investingin Southeast Michigan, you’reprobably more sensitive to news-paper headlines than many people.

I learned that much last week atthe meeting in Birmingham of theEast Michigan Alliance of the In-ternational Council of ShoppingCenters.

Real estate professionals attend-ing the half-day meeting told mestories about deals that died orwent on life support because a na-tional retailer read something badabout the Detroit area in The WallStreet Journal or some other medi-um.

In our region, we have to ac-knowledge the “bad news” that’sgoing on. We are in a crisis in thisstate, and it’s a crisis directly re-lated to the problems in the domes-tic auto industry. The problems

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MARY KRAMER:MARY KRAMER: Word-of-mouth can work both ways

LETTERS CONTINUEDLETTERS CONTINUED■ From Page 8

2007 over half of local governmentsin Oakland and Macomb countieswill receive 100 percent of the rev-enue from uncappings, and the re-maining governments will receivea portion of such revenue.

The Headlee Amendment re-duces millage rates on operatinglevies. Debt service millage is ex-empt from Headlee millage reduc-tion fractions, as are all other fullfaith and credit millage levies. In a“down market,” when propertyvalues do not keep pace with infla-tion, there may be no Headlee mill-age reductions at all. Even whenthe market is strong, total taxablevaluation increases may be offsetby reductions in certain propertysectors, such as a weakened indus-trial market or decreasing person-al property values. This has the ef-fect of keeping total taxablevaluation increases lower than theCPI, hence, revenue gained fromuncappings is retained by localgovernment.

The property-tax system is com-plex and at times may seem awk-ward, but it is the system in placetoday. We may all agree that thesystem needs review and perhapsreconstruction, but we should nei-ther make our decisions, nor enterinto the debate, saddled with mis-information.

Philip Mastin IIICity of Warren assessor

Warren

Mental health, substanceabuse need to be coveredEditor:

I basically agree with Leslie Lof-tus’ April 9 letter that preventionis an important part of controllinghealth care costs. But a large shareof current medical expenses willnot be addressed until all of thewellness and prevention programscurrently being discussed includemental health and substanceabuse.

Susan KurtzmanCommunity/public relations and public affairs

Birmingham Maple ClinicTroy

April 23, 2007 CRAIN’S DETROIT BUSINESS Page 9

Mary Kramer is publisher ofCrain's Detroit Business. Her weeklytake on the latest business news airsat 6:50 a.m. Mondays on the Paul W.Smith show on WJR AM 760. E-mailher at [email protected].

DETROIT BUSINESS MAIN 04-23-07 A 9 CDB 4/20/2007 11:52 AM

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finance

Abandoning ship

John Psarouthakisdrops plans for a$100 millionprivate-equity fund,Page 13.

A CONVERSATION WITH

Mark Hoppe was named CEO ofTroy-based Standard Federal Bankon April 1, 2005. Since then, hehas overseen a name change toLaSalle Bank Midwest N.A., dealtwith rumors of a sale by LaSalle’sparent company, the Netherlands-based ABN Amro Bank N.V., andnow awaits the outcome of theproposed sale of ABN Amro toLondon-based Barclays plc.Crain’s reporter Tom Hendersontalked to Hoppe about his plans forthe bank and employee morale asrumors continue to swirl.

How have rumors of the sale ofLaSalle Bank Midwest, or all U.S.operations, affected your internalcommunications with employees?There’s some water cooler talk,though not as much as you mightthink. As we’ve rebuilt ourcommercial banking in the past fourto five years, many of those bankerswe’ve hired have been through thisbefore. And they’ve given me verygood advice: The most importantthing for everyone to do is keepworking and doing their job. Itsounds trite, but it’s true. Barclays is saying they want tospend more for us than any bankacquisition ever. I’ve tried to tellour people, “Hey, it’s pretty goodnews to be part of the largest bankacquisition ever.”The numbers you hear bandiedabout are about $80 billion forABN Amro. And we (U.S.operations) would be 25 or 30percent of that valuation. That’s aguess based on the multiples yousee. Look at it this way: We’re asubstantial part of that value.We’re not a rounding error.

On April 6, we got a tip that yourTroy headquarters was nearly emptyand the building was for sale. As faras I can gather, that came from theCitigroup acquisition of themortgage company. There’s nofoundation for any rumors.

The sale of the mortgage groupconfused people on several levels, Iimagine. They probably think youaren’t doing mortgages anymore.It’s still a very important businessfor us. That group was a wholesalemortgage business. They weren’tunderwriting our retail mortgagebusiness.

What are your plans for Michigan?Do you see more acquisitions? Morebricks and mortar? We just want tocontinue to grow market share ona steady basis. ... You look atopportunities as they availthemselves, and that will continueto be part of the strategy. Butyou’ve got to have an interestedbuyer and a willing seller at a priceeveryone likes. There are very highmultiples right now.As for branches, we’ve addedseven since Jan. 1, 2006 and twoof those were in Detroit. I’m notgoing to say we’re going to build100 branches. We’ve got 260. Butwe’re looking at holes in geographyor in demographics.

MarkHoppe,CEO,

LaSalle BankMidwest N.A.

If you know someoneyou would like TomHenderson to interview,call (313) 446-0337 or write [email protected]


The re-education ofDavid Stockman

‘Numbers’ are the nemesis again in federal chargesBY ANDREW OSTERLAND

CRAIN NEWS SERVICE

one of us really understands what’sgoing on with all these numbers.”

When David Stockman made thatinfamously candid confession to a reporterin 1981, he was director of the Office of Man-agement and Budget for PresidentRonald Reagan. He was speakingof the baseline adjustments, thetweaked estimates and the assort-ed accounting tricks that Washing-ton wonks routinely used to maketheir budgets work. In this partic-ular case, the OMB’s financial en-gineering was designed to helpbring about a historic reversal ofU.S. tax policy. His honesty earnedhim an equally infamous trip to the “wood-shed,” where the president gave him a seri-ous talking to. He was 34 years old.

Stockman is headed to the woodshedagain, and this time the consequences couldbe a lot more serious for the now 60-year-oldformer two-term congressman from Michi-gan. He is expected to go to trial sometimenext year, according to an April 15 story inthe New York Times, on charges filedMarch 26 of conspiracy, securities fraudand obstruction of justice by the federalgovernment. He could face up to 30 years inprison.

As chairman, and later CEO, of Troy-based auto parts supplier Collins & Aikman,Stockman, along with eight other executives,is alleged to have resorted to “lies, tricks andfraud” to hide the deterioration of the South-field-based company from investors. Four ofthose executives have pled guilty to charges inMarch, though it’s unclear if they will testify

against their colleagues. The govern-ment entered into a nonprosecutionagreement with C&A, which has beenin Chapter 11 bankruptcy since May2005.

Lies, tricks and fraud have earnedplenty of executives lengthy jailterms. But in light of C&A’s fate in2005, jurors may see Stockman’s ac-tions — and his accounting — not asfraud but as a heroic effort to save

the company.“This was not an economic joy ride like

Worldcom,” Stockman told CNBC financialnews host Larry Kudlow on March 27 — areference to the telecommunications compa-ny whose CEO was convicted of fraud in2005. “This was an epic struggle for survivalon the part of an auto supplier caught in thisvicious crunch by the Big Three as it tried tomake parts and survive.”

The charges against Stockman boil downto three basic allegations — two related tothe accounting for approximately $50 mil-lion in supplier rebates that the company

recognized as immediate cost reductions be-tween 2001 and 2004, and the third related toallegedly false statements Stockman made toinvestors and creditors in 2005, shortly be-fore C&A filed for bankruptcy.

The first allegation is that beginning in2002, Stockman devised a scheme with otherC&A executives to inflate reported operatingincome by improperly booking rebates fromother suppliers to C&A. The extra incomekept the company from violating financialcovenants and enabled it to raise furthercapital in the market.

Like all suppliers at the time, C&A was be-ing squeezed between rising material costsand price pressure from domestic automak-ers. Car manufacturers and suppliers com-monly seek price reductions on long-term con-tracts from their suppliers. These can take theform of immediate price reductions or lump-sum payments. The lump-sum payments thatC&A began to aggressively solicit from itssuppliers in 2002 were contingent on futurebusiness being awarded to the supplier. Thecustomer — C&A in this case — has to recog-nize the payments as a reduction of costs overthe life of the contract, not all at once.

C&A was improperly recognizing the re-bate payments in their entirety immediately.The company’s auditor, KPMG, caught on tothe practice in 2004, and C&A took a restate-

LOUIS LANZANO/ASSOCIATED PRESS

IN A WORDStockman’sname becomescautionaryphrase for otherauto supplierexecutives.Page 12.

See Stockman, Page 12

N

DETROIT BUSINESS MAIN 04-23-07 A 11 CDB 4/20/2007 10:27 AM Page 1

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FOCUS: FINANCE

Stockman:Numbersare nemesis■ From Page 11

ment because of it the followingyear. This would suggest it was aviolation of generally accepted ac-counting principles, but Stock-man’s lawyer, Elkan Abramowitz,characterized it as a matter of in-terpretation that didn’t rise to thelevel of crime. (U.S. AttorneyMichael Garcia alleges that thescheme was a systematic fraud toinflate income.) “To say this wascriminal is outrageous,” Abramo-witz said. “There is no clear stan-dard regarding the accounting forrebates. There are varying ways todo it, and Collins & Aikman choseone way.”

The other rebate issue could be abigger problem for Stockman. Itinvolves payments of nearly $15million received from one suppli-er, Tyngsboro, Mass.-based JoanFabrics Corp., between 2001 and 2003that C&A recognized as rebates.The charges allege that the pay-ments were a part of “round-triptransactions” between the compa-nies.

Joan Fabrics CEO Elkin McCal-lum — a C&A director at the timewho is now facing his own civilfraud charge from the U.S. Securi-ties and Exchange Commission — al-legedly made the payments withthe understanding that C&Awould pay the money back. Prose-cutors contend the company did soby overpaying for assets it laterpurchased from Joan Fabrics. Inother words, the payments weren’trebates at all but loans.

“If these facts are true, it’s clear-ly fraud,” said Richard Brodsky, aMiami-based lawyer for SquireSanders & Dempsey.

The last part of the indictmentalleges that Stockman made falsestatements to creditors and in-vestors regarding his company’sfinancial condition in 2005. Hedownplayed the extent of the sup-plier rebate issue and, accordingto the allegations, “made at leastthree material misstatements oromissions regarding C&A’s resultsof operations and financial condi-tion” during a conference call withanalysts and investors on March17 of that year.

“If he had no reasonable basis tobelieve the estimates he made, heviolated securities laws,” Brodskysaid.

What may save Stockman hereis that, unlike Enron’s KennethLay, he wasn’t selling shares whilemaking rosy forecasts that laterproved to be wrong.

Stockman, who was unavailablefor comment, told reporters afterhe was released on bail that hebought C&A shares throughoutthe period in question and that heultimately lost $13 million whenthe company went bankrupt. Thatfact alone may convince a jurythat his intent wasn’t to commitfraud but to save the company.

From Financial Week and Auto-motive News

‘Stockman model’ one for the rule bookDavid Stockman’s rise and fall with South-

field-based Collins & Aikman has now becomefodder for cautionary tales among automotivesuppliers, and at least one automotive suppli-er has used it to coin a phrase.

Expanding a company with the “Stockmanmodel” refers to spending billions on haphaz-ard growth through acquisitions.

At its height, C&A was the world’s largest au-tomotive interiors maker, and had sales of $4billion and produced parts for nine of every 10vehicles built in North America. But the com-pany collapsed into Chapter 11 bankruptcy in2005. Stockman resigned as CEO just five days

before the filing, leaving behind a companywith no cash and no plan for reorganization.

The bankruptcy wiped out shareholdersand bondholders. To keep parts flowing dur-ing the chaotic first weeks of the bankruptcy,automakers had to give the supplier emer-gency loans and price increases.

The automakers’ tab is $665 million andgrowing. The domestic automakers have paid80 percent of the total.

Stockman raised billions of dollars throughprivate-equity firm Heartland Industrial Partnersto create Collins & Aikman through rapid ac-quisitions.

James Orchard, president of Faurecia NorthAmerica, a French interiors supplier thatopened or expanded six plants in the U.S. lastyear, used the phrase during a January pressconference at the company’s Sterling Heightsplant.

“Because of a lot of the distress in the sup-plier market — particularly in this region —we see that as advantageous for Faurecia togrow, and possibly grow inorganically,” Or-chard said. “But we are not going to do so on astupid basis. I don’t subscribe to the Stockmanmodel, so we are not going to do that.”

— Brent Snavely and Automotive News

DETROIT BUSINESS MAIN 04-23-07 A 12,13 CDB 4/20/2007 10:26 AM Page 1

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FOCUS: FINANCE

Manufacturing vet gives up on raising investment fundBY TOM HENDERSONCRAIN’S DETROIT BUSINESS

John Psarouthakis has aban-doned his plans to get back in thebusiness of turning around under-performing manufacturing compa-nies.

Psarouthakis, who had greatsuccess in the 1980s and notablefailure in the 1990s at trying to fixtroubled manufacturers, an-nounced last September that hehad started a private-equity firm,

BloomfieldHills-based JPIn-vest L.L.C., andhoped to raise afund of $100 mil-lion. The plan,then, was toraise a firstround of $10 mil-lion from high-net-worth indi-

viduals, then follow that with tworounds of institutional investing.

The plan also called for an agree-

ment in place for a first purchaseby the end of 2006.

Now, though, Psarouthakis sayshe is giving up on a new fund.

“After several months of evalu-ating the Michigan economy, themanufacturing sector and capitalavailability for acquiring under-performing manufacturing mid-size companies, I concluded thatthe state is in a state of panic andmost investors are not interestedin Michigan manufacturing oppor-tunities,” he said.

“Therefore, I am discontinuingmy efforts in raising capital andconcentrating instead on my advi-sory activities. Even the 21st Cen-tury Jobs Fund is not interested toinvest in funds to acquire under-performing companies that can beturned around and help stop theemployment drain, now. Instead,it is concentrating primarily onhigh-tech opportunities that mighthelp the employment dilemma inthe future.”

In the 1980s, Psarouthakis’ Ann

Arbor-based JP Industries Inc. par-layed a series of acquisitions oftroubled auto suppliers into a For-tune 500 company that was sold in1990 to a British firm, T&N plc.

In 1991, he formed another compa-ny, Ann Arbor-based JPE Inc. toagain buy poorly performing manu-facturing companies. It went publicon Nasdaq in 1993, began losing mon-ey heavily and was delisted in 1998.

Tom Henderson: (313) 446-0337,[email protected]

Endowments get$33M boost

BY SHERRI BEGINCRAIN’S DETROIT BUSINESS

The Community Foundation forSoutheast Michigan has broughtmore than $33.3 million to endow-ments housed at the foundationthrough an endowment-buildingprogram launched in 2005.

Just over $24 million of that is innew gifts that leveraged over $9million in matching funds.

“Investing in Regional Philan-thropy” matches gifts from individ-uals and companies of $1,000 to $1million to flexible and agency en-dowments housed at the foundation,on a first-come, first-serve basis.

The foundation launched theprogram with a $5 million matchgrant from the Troy-based KresgeFoundation and another $400,000 inindividual donations. Last sum-mer, Kresge committed an addi-tional $13 million to the program.

So far, more than half of the $16.4million in available matching fundshave been claimed by participatingnonprofits, leaving $7.3 million.

The program will continue untilthe match money is exhausted, butnonprofits must have applied toparticipate by June 30 of this year.

“Even in these difficult times, 78agencies are choosing to raise en-dowment in the matching pro-gram,” Community FoundationPresident Mariam Noland said.

Nearly 30 of them have indicat-ed this is their first serious effortin raising endowment, she said.

Sherri Begin: (313) 446-1694, [email protected]

Psarouthakis

BANKRUPTCIESBANKRUPTCIESThe following businesses filed forChapter 7 protection in U.S. Bankrupt-cy Court in Detroit April 13-19. Chap-ter 7 involves total liquidation. Anzell Associates Inc., 15235 Maple-wood, Eastpointe, voluntary Chapter7. Assets; $7,608; liabilities: $66,000.26055 Dequindre L.L.C., dba AllgreenLandscape Solutions, 26071 DequindreRoad, Madison Heights, voluntaryChapter 7. Assets: $5; liabilities:$309,550.Gulfwind Plumbing Inc., 5119 High-land Road, Waterford Township, vol-untary Chapter 7. Assets and liabili-ties not available.

— Compiled by Aaron Harris


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ACQUISITIONSChildren’s Orchard Inc., Ann Arbor, anationwide chain of resale children’sboutiques, has purchased NewcomersWelcome Service, Ann Arbor, whichdelivers “welcome packets” to newresidents. Children’s Orchard plans todevelop the service into a nationwideservice and begin franchising it.

CALLS FOR NOMINATIONSThe Detroit Chapter of CommercialReal Estate Women has 2007 entrypackages available for its CREW De-troit Impact Awards commercial realestate award program. The comple-tion is open to new construction andredevelopment projects completed be-tween Jan. 1, 2006 and June 30, 2007.The projects must also have involved

at least one firm with a CREW-Detroitmember. Intent to enter forms can bedownloaded at crewdetroit.org/awards.html. Printed forms are avail-able from Norma Beuter at (248) 646-0629 or [email protected]. Complet-ed forms should be submitted with a$100 entry fee by June 1. Entrants willthen receive an entry package, whichis due on or before June 29. Awardswill be selected in August and present-ed at a Sept. 20 luncheon in BloomfieldHills.Ann Arbor Spark and the Ann ArborChamber of Commerce are seekingnominees for the 2007 Fast TrackAwards. The awards are presented an-nually to fast-growth companies head-quartered in Washtenaw County,have revenue exceeding $100,000 peryear and achieve average growth of 20

percent for the past three years. Thisis the 10th anniversary of the awards,which were previously administeredby the Washtenaw Development Coun-cil. Applications will be available atwww.annarborspark.org startingMay 1. The awards are to be presentedNov. 2. For more information, visitwww.annarborspark.org or call (734)761-9317.The Howell Area Chamber of Com-merce Foundation invites LivingstonCounty businesses to nominate theiroutstanding employees who are alsostudents for the 2007 MargaretStarkey Scholarship. It has been tradi-tionally been awarded to employeeswho possess an extraordinary workethic. Nominees must have been em-ployed with the nominating companysince at least September 2006. Dead-

line: May 15. Winners will be an-nounced June 1. Nomination formsare available at www.howell.org or bycalling (517) 546-3920.Strong Productions, Detroit, is seeking20 area companies to sponsor employ-ee athletic teams in the first StrongOlympics July 27 at the Belle Isle Ath-letic Field. Teams are to compete in atug-of-war, obstacle course, relay race,and other events. The company teamwith the most points wins the “Wood-ward Trophy” and bragging rights. Lo-cal sports celebrities are to be on hand.Entry deadline: May 10. For more in-formation, e-mail [email protected] call (313) 717-7651.

CONTRACTSDigital 10 Network, Farmington Hills,

BUSINESS DIARYBUSINESS DIARYhas been awarded a five-year contractwith the State of Michigan Secretary ofState to create a media network forbranch office customers and employ-ees.Tomco Remodeling L.L.C. of Farming-ton has retained Old Dog New TricksAdvertising L.L.C. of Farmington Hillsas its advertising agency of record.CareTech Solutions Inc., Troy, com-pleted a wireless local area networkfor Internet access for Garden CityHospital, Garden City. Advertising Network Solutions,Rochester Hills, has named MarxLayne & Co., Farmington Hills, itspublic-relations agency of record.SmithGroup, Detroit, completed archi-tectural, engineering, and interior de-sign services for the new University ofDetroit Mercy School of Dentistry andClinic. The renovation of the formerKindred Hospital-Metro Detroit into theUDM dental school is to include a den-tal clinic, research laboratories, offices,classrooms, and a gathering space.Integral Vision Inc., Wixom, has re-ceived a repeat order from a manufac-turer of communication equipmentfor a SharpEye inspection system tobe used for the production inspectionof MEMS displays. Attendance on Demand Inc., a Farm-ington Hills-based employee time andattendance software company, hasadded Advantec Inc. of Tampa, Fla., asa certified distributor. Campbell-Ewald, Warren, was selectedas the advertising and marketing part-ner of Olympic Paints and Stains,Pittsburgh, for Olympic’s nationalbranding campaign.The Marketing Source, an advertising,marketing and public-relationsagency in Livonia, has been namedagency of record for Lotus Bank, Novi.Fourmidable, a Farmington Hills-based property management compa-ny, was awarded a four-year manage-ment contract by the Sterling HeightsCommission for Schoenherr Towers,Sterling Heights, a nine-story, 153-unit building. Fourmidable will alsoadminister the Section 8 voucher pro-gram.Great Lakes Recycling, Roseville, hasnamed Axis-Creative, Troy, its agencyof record for advertising and market-ing; and B Frank CommunicationsL.L.C., Birmingham its agency ofrecord for public relations.Exhibit Works, Livonia, has added thefollowing clients: automotive supplierArvinMeritor Inc., Troy; sports cardcompany The Upper Deck Co., Carls-bad, Calif.; and The Mobile Lounge, awireless telephone retail store con-cept by Lifestyle Ventures L.L.C. andWireless Giant, Madison Heights.WorkForce Software Inc., Livonia, an-nounced the Carlisle Tire & Wheel Co.of Carlisle, Pa., has licensed its Emp-Center employee management soft-ware and services. Pulse220, Southfield, has retainedIdentity Marketing & Public Relations,Bingham Farms, to handle its mediarelations and communications sup-port and rebranding from Star TraxCorporate Events. Paragon Property Management/Cor-porate Realty, Farmington Hills, hasretained Tanner Friedman, Farming-ton Hills, as its public-relationsagency.Intellitrends L.L.C., a market-researchfirm, Clarkston, has added the follow-ing new clients: Automation Alley,

DIARY GUIDELINESSend news releases for BusinessDiary to Joanne Scharich, Crain’sDetroit Business, 1155 GratiotAve., Detroit, MI 48207-2997 orsend e-mail to [email protected]. Use any Business Diary itemas a model for your release, andlook for the appropriate category.Without complete information, youritem will not run. Photos arewelcome, but we cannot guaranteethey will be used.


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Troy; Liberty Hardware, a Masco Co.,Winston-Salem, N.C.; Black Book On-line, Ft. Lauderdale, Fla.; and Little Gi-ant Pump Co., Oklahoma City, Okla.

EXPANSIONSCollege Park, a 450,000-square-footbusiness center on Haggerty Roadnorth of Six Mile Road in Livonia, re-cently saw the grand openings of theTCF Bank headquarters, Fleming’sPrime Steakhouse and WineStyles.College Park is managed by theWalkonEtkin Partnership.Advanced Solutions Inc., Louisville,Ky., has reopened its Detroit office at9357 Haggerty Road, Plymouth. Thesoftware company also has offices inOhio, Indiana, and elsewhere in Ken-tucky.Addison Graphic Solutions, Troy, hascreated the 880Group, a design and pro-duction studio. The 880Group’s ser-vices include graphic design, brandidentity, and pre-press production ca-pabilities. Telephone: (248) 293-4796.

GROUNDBREAKINGSIcon Building II Co. Inc., Clinton Town-ship, has broken ground for a 102,000-square-foot professional medical of-fice building at 44200 Woodward Ave.,Pontiac.

LITERATUREThe Washtenaw Land Trust, Ann Ar-bor, has created The Land & LawyerHandbook: A Practitioner’s Guide toConservation Easements. The hand-book is being sent free to local lawfirms and conservation organizations.Additional free copies are available bycalling (734) 302-5263.The Citizens Research Council ofMichigan, Livonia and Lansing, is is-suing “Regional Approaches to Eco-nomic Development,” a four-part se-ries of public policy reports. Part one,“The Challenges of Economic Devel-opment,” is available at www.crcmich.org. The Internal Revenue Service, whichhas area offices in Detroit, has begune-News for Small Business. The tax e-newsletter is sent every Wednesday. Itcan be subscribed to for free atwww.irs.gov.

MOVESRe.Source Partners moved its corpo-rate offices from Mt. Clemens to 24541Maplehurst, Clinton Township. Tele-phone: (586) 783-0700. The informa-tion-technology recycling companyalso opened a Southwestern office in McKinney, Texas. Web site: www.re-sourcepartners.com.Digital 10 Network from Ann Arbor to33533 W. 12 Mile Road, Suite 101,Farmington Hills. CVMedia from Southfield to 133 W.Main St., Suite 128, Northville. Tele-phone remains: (248) 358-2828.

NAME CHANGESAkebono Brake Corp.’s research anddevelopment center, FarmingtonHills, has been renamed the AkebonoEngineering Center. The change waspart of a set of name changes for theElizabethtown, Ky.-based company,its offices and plants. The Jewish Community Council,Bloomfield Hills, to the Jewish Com-munity Relations Council.The Multimedia Foundry, a ClintonTownship information-technologyservices firm, to Logicorps. Web site:www.logicorps.com.Xycom Automation, Saline, to Pro-Face America. Web site: www.profaceamerica.com.

NEW PRODUCTSIntegrated Sensing Systems Inc., Ypsi-lanti, has launched a small embeddeddensity and chemical concentrationsensor based on resonating tube tech-nology. Wolverine Advanced Materials,Inkster, has launched FKM Foamet, amaterial for low-torque gasket seal ap-

plications requiring heat resistance ofup to 250 degrees.

NEW SERVICESThe Auto Club Group, Dearborn, has anew online quote system which allowscustomers to get real-time AAA Michi-gan insurance quotes at any timefrom www.aaa.com. Marcus & Millichap Real Estate In-vestment Brokerage Co.’s Michiganoffice, Southfield, has added hotels toits portfolio of investment properties.

NEW SOFTWARECompuware Corp., Detroit, has intro-duced Compuware Quality Manage-ment for quality-assurance applica-tions and quality managers.

STARTUPSRevitalize Day Spa is now open at 751Chestnut, Birmingham. Its servicesinclude nails, facials, and couplesmassages. Telephone: (248) 530-4772.Web site: www.revitalizedayspa.net.New Perspective Architects, 26906Jacquelyn Drive, Livonia, providesarchitectural design, programming,engineering and master planning tocommercial, retail and light-industri-al projects as well as residential devel-opments. Matt Bastos and BrandonKritzman are the principals andfounders. Telephone: (313) 387-4777. E-mail: [email protected] Dog New Tricks Advertising L.L.C.,30800 Northwestern Highway, Suite215, Farmington Hills, is a smallagency targeting small-business own-

ers. Old Dog’s owner Kathy Johnson’sbackground includes 25 years in De-troit media sales representing localand national radio, magazines andnewspapers. Telephone: (248) 737-0397.MacBeedon Partners L.L.C., Ann Ar-bor, is an equity investment and man-agement company focusing on tech-nology companies. Richard Beedon,an entrepreneur and angel investor, isMacBeedon Partners’ founder andCEO. Telephone: (734) 222-4655. Website: www.macbeedon.com.Jacqulyn G. Schulte plc, Novi, is thelaw practice of Jacqulyn Schulte. Anemployment and labor law defense at-torney, Schulte specializes in helpingemployers prevent litigation throughmanagement training seminars, coun-seling, legal compliance reviews, sep-aration agreements and more. She

previously led employment and laborlaw practice groups at Foley, Baron &Metzger and Floyd Allen & Associates.Telephone: (248) 974-5340.

TRANSACTIONSTriMas Corp., Bloomfield Hills, an-nounced the sale Lake Erie Products,its industrial fastener business. LakeErie Products’ operations in Frank-fort, Ind., and Wood Dale, Ill., weresold in separate transactions. TheFontana Group, headquartered inItaly, acquired the large-diameter in-dustrial headed fastener business pri-marily in Frankfort. Chicago-basedHolbrook Mfg. purchased the small-di-ameter fastener business located pri-marily in Wood Dale.

BUSINESS DIARYBUSINESS DIARY

DETROIT BUSINESS MAIN 04-23-07 A 14,15 CDB 4/19/2007 2:38 PM Page 2

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CALENDARCALENDARTUESDAY

A P R I L 2 4

Building Your Biz Buzz. 5:30-7 p.m. AnnArbor IT Zone Marketing Roundtableseries. Jenny Rode of the Ann ArborNews, Tom Henderson of Crain’s De-troit Business, and Paul Schutt of IssueMedia Group. Spark Central, Ann Ar-bor. Free for members, $5 students,$25 others. Contact: (734) 615-9310 orwww.annarboritzone.org.

THURSDAYA P R I L 2 6

The Mexican International WelcomeCenter and Mercado. 5:30 p.m. TheSoutheastern Michigan Chapter of the

International Fa-cility Manage-ment Association.Maria Elena Ro-driguez, presidentof the Mexican-town CommunityDevelopmentCorp. Mexican-town Internation-al Welcome Cen-ter and Mercado,Detroit. $25 mem-

bers, $35 others. Contact: (810) 229-8973or www.ifmasemichigan.org.

Freedom Weekend Power EconomicsLuncheon. Noon-2 p.m. FreedomWeekend, the Freedom Institute.Keynote speaker: Susan Taylor, pub-lisher emeritus, Essence Magazine.

Panelists: William Pickard, chairmanand CEO, Global Automotive Al-liance, Carol Goss, CEO and president,Skillman Foundation; and GeorgeJackson, president, Detroit EconomicGrowth Council. Cobo ConventionCenter, Detroit. $50 a person, $500 atable. Contact: (313) 533-5053 or www.freedomweekend.info.

How to Take Care of YOU DuringStressful and Tough Economic Times.Noon. Inforum. Michael Roizen, NewYork Times best-selling author of YouOn a Diet: The Owners Manual ofWaist Management. Northfield Hilton,Troy. $40 members, $50 others. AfterApril 23 and at the door add $10. Con-tact: (877) 633-3500 or www.inforum-michigan.org.

Economic Outlook Luncheon. 11:30a.m.-1:30 p.m. Oakland County Plan-ning & Economic Development Ser-vices, the Institute of Labor and Indus-trial Relations at the University ofMichigan, Oakland Community Col-lege, and Chase Commercial Bank.George Fulton and Donald Grimes,economists with the UM Institute ofLabor & Industrial Relations. The2007-2009 Employment Forecast forOakland County will be presented.Troy Marriott, 200 W. Big Beaver,Troy. $40. Registration runs until theevent is sold out. Contact: (248) 858-8706 or www.oakgov.com.

Real Estate Forecast. 11:45 a.m.-1:30p.m. The Birmingham BloomfieldChamber 2007 Forecast Luncheon Se-ries. David Lereah, senior vice presi-

dent and chief economist of the Na-tional Association of Realtors; and BillMartin, CEO, Michigan Association ofRealtors. The Townsend Hotel, 100Townsend, Birmingham. $45 mem-bers, $55 others, $335 for a corporatetable of eight. Reservations are re-quired three business days in ad-vance. Contact: (248) 644-1700 orwww.bbcc.com.

Broadening the Net: A Policy Lun-cheon on the Uninsured. 11 a.m. An-nouncing the formation of the Michi-gan Health Insurance AccessAdvisory Council. Panelists: MarkGaffney, AFL-CIO; Tony Armada, Hen-ry Ford Hospital; Kevin Seitz, BlueCross Blue Shield of Michigan; BrianMcGinnity, Hiortec America; SisterMary Ellen Howard, Cabrini Clinic;Janet Apino, El Rancho Restaurant.NextEnergy Center, 461 Burroughs,Detroit. Free, but reservations re-quired. Contact: (313) 874-7178 [email protected]

COMING EVENTSStrengthening America’s Competitive-ness. Noon-1:30 p.m. May 2. DetroitEconomic Club. Harold McGraw III,chairman, president and CEO, TheMcGraw-Hill Cos. and chairman,Business Roundtable. Cobo Center,Detroit. $35 members, $40 guests ofmembers, $50 others, (313) 963-8547,[email protected] or www.econ-club.org.

“Financial Savvy” Small BusinessWorkshop Series. 8:30 a.m.-noon May2, 9, and 16. Inforum in partnershipwith Comerica Bank. Mark Hurst,partner, Plante & Moran L.L.P. Birm-ingham Country Club, 1750 Saxon Dri-ve, Birmingham. $100 Inforum mem-bers and Comerica customers, $125others. In all cases, $50 for each addi-tional participant from the same com-pany. (800) 292-1300, www.inforum-michigan.com or www.comerica.com/sbaworkshops.

2007 Commercial Real Estate WomenMidwest Regional Conference. 8 a.m.-8p.m. May 3-5. Commercial Real EstateWomen Detroit. Multiple networkingevents, riverboat tour of Detroit-Wind-sor development and downtown Detroitcommercial real estate tour. DetroitMarriott at the Renaissance Center, De-troit. Full conference registration $250CREW members, $300 others. Singleday and single event registration avail-able. Contact: Norma Beuter, (248) 646-9629, [email protected] orwww.crewdetroit.org/07mwrc.htm.

Eighth Annual Leadership Luncheon.11 a.m.-2 p.m. May 4. Eight Mile Boule-vard Association. Guest speakers in-clude Gov. Jennifer Granholm, DetroitMayor Kwame Kilpatrick, WayneCounty Executive Robert Ficano, Oak-land County Executive L. Brooks Pat-terson and William Crouchman, Macomb County Board of Commis-sioners. Detroit Marriott at the Re-naissance Center, Detroit. $50 mem-bers, $75 others. Contact: (313) 366-3388or www.eightmile.org.

Detroit Economic Club. Noon. May 7.U.S. Sen. Barack Obama, D-Illinois,2008 presidential candidate. CoboCenter, Detroit. $35 members, $60 oth-ers. (313) 963-8547 or www.econclub.org.

CALENDAR GUIDELINESMore Calendar items can be foundon the Web at www.crainsdetroit.com. Please send news releasesfor Calendar to Joanne Scharich,Crain’s Detroit Business, 1155Gratiot Ave., Detroit, MI 48207-2997, or e-mail [email protected]. You also may submitCalendar items in the Calendarsection of crainsdetroit.com.

Rodriguez

DETROIT BUSINESS MAIN 04-23-07 A 16 CDB 4/19/2007 3:26 PM Page 1


Rank

CompanyAddressPhone; Web siteTop local executive, name and title

Parentcompany

Revenue($000,000)

2006

Revenue($000,000)

2005Percentchange

Revenue($000,000)

parent2006

Revenue($000,000)

parent2005 Business description

1.Johnson Controls Automotive Group49200 Halyard Drive, Plymouth 48170(734) 254-5000; www.johnsoncontrols.comBeda Bolzenius, president, automotive experience

Johnson Controls Inc.Milwaukee

$18,274.0 $18,830.0 -3.0% $32,235.0 $27,479.4 Automotive interiors, seating and electronics

2.DuPont Automotive950 Stephenson Highway, Troy 48007(248) 583-8000; www.automotive.dupont.comMarty McQuade, vice president and general manager

E.I. du Pont de Nemours &Co.Wilmington, Del.

4,902.0 4,826.1 B 1.6 27,421.0 26,639.0 Coatings, plastics, fibers, air conditioning,refrigerants, precision parts

3.General Dynamics Land Systems38500 Mound Road, Sterling Heights 48310(586) 825-4000; www.gdls.comDavid Heebner, president

General Dynamics Corp.Falls Church, Va.

3,043.0 2,600.0 17.0 24,100.0 20,000.0 Designs, develops and produces armored vehiclesand subsystems

4.Con-way Freight Inc.110 Parkland Plaza, Ann Arbor 48103(734) 769-0203; www.con-way.com/freightDavid McClimon, president

Con-way Inc.San Mateo, Calif.

2,865.0 2,820.0 1.6 4,221.5 4,115.6 Transportation and logistics

5.Alcoa Electrical and Electronic Solutions36555 Corporate Drive, Farmington Hills 48331(248) 489-4900; www.alcoa.comWalter Frankiewicz, president, Electrical and ElectronicSolutions

Alcoa Inc.Pittsburgh

2,700.0 2,700.0 0.0 30,363.0 25,564.0 Automotive chassis, suspension, drivetrain, crashmanagement systems, other

6.St. John Health28000 Dequindre, Warren 48092(888) 440-7325; www.stjohn.orgElliot Joseph, CEO and president

Ascension HealthSt. Louis

1,871.9 1,804.5 3.7 11,405.6 10,861.0 Hospital and health care organization

7.Great Lakes Works - U. S. Steel100 Quality Drive, Ecorse 48229(313) 749-2100; www.ussteel.comFred Jauss, general manager

U.S. Steel Corp.Pittsburgh

1,600.0 1,400.0 B 14.3 15,715.0 14,039.0 Integrated steel mill

8.Dow Automotive1250 Harmon Road, Auburn Hills 48326(248) 391-6300; www.dowautomotive.comPeter Sykes, president

The Dow Chemical Co.Midland

1,490.0 1,500.0 -0.7 49,100.0 46,000.0 Automotive supplier

9.Farmer Jack Supermarkets18718 Borman Ave., Detroit 48228(313) 270-1000; www.farmerjack.com

The Great Atlantic & PacificTea Co.Montvale, N.J.

1,131.5 B 1,161.6 B -2.6 NA 8,740.3 C Grocery retailing

10.Foamex Automotive Products Group28700 Cabot Drive, Suite 500, Novi 48377(248) 553-1010; www.foamex.comDonald Phillips, executive vice president automotive productsdivision

Foamex International Inc.Linwood, Pa.

429.0 366.0 17.2 1,300.0 1,200.0 Automotive foam products

11.National City - Southeast Michigan755 W. Big Beaver Road, Troy 48084(888) 622-4932; nationalcity.comDavid Boyle, president, Michigan

National City Corp.Cleveland

405.1 387.6 4.5 8,653.0 8,031.0 Investment management and trust, brokerage andprivate banking

12.Teleflex Automotive Group700 Stephenson Highway, Troy 48083(248) 616-3800; www.tfxauto.comPeter Spencer, president

Teleflex Inc.Limerick, Pa.

393.0 506.0 -22.3 2,646.0 2,510.0 Automatic and manual shifters and cables

13.SKD Automotive Group1450 W. Long Lake, Troy 48098(248) 267-9670; www.skdautomotive.comJohn Chen, president

National Material L.P.Elk Grove Village, Ill.

358.8 337.0 D 6.5 NA NA Automotive supplier

14.Entertainment Publications Inc.1414 E. Maple Road, Troy 48083(248) 404-1000; www.entertainment.comMaryAnn Rivers, CEO and president

IAC/Interactive GroupNew York City

196.8 219.0 -10.1 6,277.6 5,753.7 Promotions and discounts

15.MPC Inc. - Automotive Division29200 Northwestern Highway, Southfield 48034(248) 799-8949; www.mpc-inc.comJim Brost, president

MPC Inc.Walworth, Wis.

168.3 160.9 4.6 183.0 178.8 Plastic components and assemblies for theautomotive industry

16.TCF National Bank Michigan401 E. Liberty St., Ann Arbor 48104(800) 823-2265; www.tcfbank.comRobert Scott, president of Michigan

TCF National BankWayzata, Minn.

154.2 150.6 2.4 1,027.0 996.0 Financial institution

17.Campbell-Ewald30400 Van Dyke Ave., Warren 48093-2316(586) 574-3400; www.campbell-ewald.comAnthony Hopp, chairman and CEO

Interpublic Group of Cos.New York, NY

138.0 B 138.0 B 0.0 NA 6,274.0 Advertising agency

18.Metropolitan Title Co.622 E. Grand River Ave., Howell 48843(517) 548-3130; www.metropolitantitle.comKen Lingenfelter, CEO

First American Title Co.Santa Ana, Calif.

60.1 76.4 -21.4 NA NA Title agency and settlement services

This list contains information about Detroit-based divisions, affiliates, units and subsidiaries of U.S.-owned companies whose headquarters are outside Wayne, Oakland, Macomb, Washtenaw and Livingston counties. This is not a complete listing but the mostcomprehensive available. Unless otherwise noted, the companies provided the information. NA=not available.B Crain's estimate.C For fiscal year end Feb. 25, 2006.D From Automotive News.

LIST RESEARCHED BY ANNE MARKS AND JOANNE SCHARICH

Great Lakes Works has amped up production atthe steel complex in Ecorse and River Rouge, tak-ing it from 1.9 million tons in 2003 to 3.1 milliontons in 2006.

U.S. Steel says Great Lakes Works’ capacity isabout 3.8 million tons a year. The company ac-quired the plant in 2003 when it purchased Na-tional Steel out of bankruptcy.

CRAIN’S LIST: U.S.-OWNED DIVISIONS, AFFILIATES AND SUBSIDIARIES By 2006 revenue



CRAIN'S LIST: LARGEST FOREIGN-OWNED DIVISIONS, AFFILIATES AND SU Ranked by 2006 revenue

Rank

CompanyAddressPhone, Web siteTop executive

Parentcompany

Revenue($000,000)

2006

Revenue($000,000)

2005Percentchange

Revenue($000,000)

parent2006

Revenue($000,000)

parent2005

Localemployees

2007

Localemployees

2006 Business description

1.Chrysler Group B1000 Chrysler Drive, Auburn Hills 48326(800) 334-9200; www.daimlerchrysler.comTom LaSorda, CEO and president

DivisionDaimlerChrysler AGStuttgart, Germany

$62,058.0 $59,362.3 4.5% $200,138.0 $176,218.0 34,724 35,746 Automobile manufacturer

2.Volkswagen of America Inc. B3800 Hamlin Road, Auburn Hills 48326(248) 754-5000; www.vw.comFrank Witter, CEO and CFO

SubsidiaryVolkswagen AGWolfsberg, Germany

19,290.5 16,255.4 18.7 138,463.0 111,334.0 NA NA Automobile manufacturer

3.Siemens VDO Automotive Corp.2400 Executive Hills Blvd., Auburn Hills 48326(248) 209-4000; www.usa.siemensvdo.comJohn Sanderson, CEO and president

SubsidiarySiemens AGMunich, Germany

12,000.0 11,600.0 3.4 117,000.0 115,500.0 700 700 Global supplier of automotive electronicsand electrical systems

4.Robert Bosch Corp.38000 Hills Tech Drive, Farmington Hills 48331(248) 553-9000; www.boschus.comPeter Marks, chairman, president and CEO

SubsidiaryRobert Bosch GmbhStuttgart, Germany

5,800.0 5,500.0 5.5 34,200.0 32,400.0 1,700 1,553 Power-train, chassis and electronicautomotive systems and components

5.GKN Driveline North America Inc.3300 University Drive, Auburn Hills 48326(248) 377-1200; www.gknplc.comPhilippe Cabassol, managing director-Americas

DivisionGKN plcWorcestershire, England

5,109.4 C 4,825.8 5.9 7,119.5 C 6,566.0 495 505 Constant-velocity joints for half-shafts,prop-shafts, traction-control devices,powder-metal products

6.Yazaki North America Inc.6801 Haggerty Road, Canton Township 48187(734) 983-1000; www.yazaki-na.comGeorge Perry, CEO and president

SubsidiaryYazaki Corp.Tokyo

3,643.5 2,800.0 30.1 10,583.0 10,230.0 1,545 1,836 Tier-one automotive supplier of power anddata services to North Americanoriginal-equipment manufacturers

7.ThyssenKrupp Materials NA Inc.22355 W. 11 Mile Road, Southfield 48033(248) 233-5600; www.tkmna.thyssenkrupp.comJoachim Limberg, chairman and CEO

SubsidiaryThyssenKrupp AGDuesseldorf, Germany

3,180.0 2,350.0 35.3 63,400.0 53,000.0 450 400 Materials management and services;processing and distribution of aluminum,copper, brass, specialty metals, steel andplastics; supply-chain management;logistics; industrial services

8.TK Holdings Inc.2500 Takata Drive, Auburn Hills 48326(248) 373-8040; www.takata.comTimothy Healy, executive vice president

SubsidiaryTakata Corp.Tokyo

2,055.0 2,100.0 -2.1 4,051.0 4,000.0 731 785 Safety restraint supplier

9.

Continental Automotive Systems1 Continental Drive, Auburn Hills 48326(248) 393-5300; www.conti-online.comWilliam Kozyra, member of the executive board ContinentalAG, president and CEO, Automotive Systems division, NorthAmerica

DivisionContinental AGHannover, Germany

2,000.0 1,500.0 33.3 18,760.0 17,200.0 750 600 Automotive brake and safety systems,electronics, hybrid technologies

10.Metaldyne Corp. D47603 Halyard Drive, Plymouth 48170(734) 207-6200; www.metaldyne.comTimothy Leuliette, chairman and CEO

SubsidiaryAsahi Tec Corp.Shizuoka, Japan

1,849.0 1,886.9 -2.0 493.3 E 535.5 E NA 1,760 F Components, assemblies and modules forpower-train and chassis applications.

11.Aisin World Corp. of America46501 Commerce Center Drive, Plymouth 48170(734) 453-5551; www.aisinworld.comJunichi Nishimura, CEO and president

SubsidiaryAisin Seiki Co. Ltd.Kariya, Aichi, Japan

1,783.0 1,703.0 4.7 20,609.0 18,873.0 171 152 Automotive body systems, drivetrain andengine components, electronics, brake andchassis systems, chemical

12.Valeo Inc.3000 University Drive, Auburn Hills 48326(248) 340-8437; www.valeo.comLawrence Lyng, group vice president, North America

SubsidiaryValeo S.A., FranceFrance

1,711.2 1,383.8 23.7 NA NA NA NA Design, production and sale of automotivecomponents, integrated systems andmodules for passenger cars and trucks

13.CalsonicKansei North America Inc.27000 Hills Tech Court, Farmington Hills 48331(248) 848-4800; www.calsonic.comMasaharu Sato, president

SubsidiaryCalsonicKansei Corp.Tokyo, Japan

1,480.0 1,472.7 0.5 6,270.0 6,115.3 160 160 Tier One supplier of HVAC, enginecooling, and exhaust components andsystems; cockpit modules, front-endmodules, instrument clusters, andinstrument panels

14.Toyoda Gosei North America Corp.1400 Stephenson Highway, Troy 48083(248) 280-2100; www.toyodagosei.comYuzo Saito, president

DivisionToyoda Gosei Co., Ltd.Aichi, Japan

1,170.0 1,090.0 7.3 4,780.0 4,224.0 480 475 Automotive parts supplier

15.Freudenberg-NOK Group Co.47690 E. Anchor Court, Plymouth 48170(734) 451-0020; www.freudenberg-nok.comMohsen Sohi, CEO and president

General PartnershipFreudenberg & Co./NOKCorp.Weinheim,Germany/Tokyo

1,000.0 G 1,000.0 0.0 NA NA 260 250 Sealing packages for engines, transmissionsand brakes; rubber and plastic componentsfor suspension, steering, electrical and fuelsystems.

16.NTN Bearing Corp. of America39255 W. 12 Mile Road, Farmington Hills 48331-2975(248) 324-4700; www.ntnamerica.comMichio Ota, executive vice president and general manager

SubsidiaryNTN Corp.Osaka, Japan

982.0 858.0 14.5 3,960.0 3,616.0 78 74 Sales, service and manufacturing ofbearings and constant velocity joints for theautomotive industry.

17.LaSalle Bank Midwest N.A.2600 W. Big Beaver Road, Troy 48084(800) 643-9600; www.lasallebank.comMark Hoppe, CEO

SubsidiaryABN Amro N.V.Amsterdam

885.1 H 1,457.4 H -39.3 NA NA NA NA Financial institution

18.Behr America Inc.2700 Daley Drive, Troy 48083(248) 743-3700; www.behrgroup.comFrank Mueller, CEO and president

SubsidiaryBehr GmbH and Co. KGStuttgart, Germany

837.0 869.0 -3.7 4,200.0 3,800.0 500 470 Automotive supplier producingengine-cooling and air-conditioningsystems and components

19.Logicalis Inc.1750 S. Telegraph Road, Suite 300, Bloomfield Hills 48302(866) 456-4422; www.us.logicalis.comTerry Flood, CFO

SubsidiaryDatatec Ltd.Johannesburg, SouthAfrica

769.0 450.0 70.9 3,500.0 3,000.0 90 55 Information-technology services

20.Inergy Automotive Systems, NAO2710 Bellingham, Suite 400, Troy 48083(248) 743-5700; www.inergyautomotive.comMark Sullivan, CEO and president

SubsidiaryInergy AutomotiveSystemsParis

532.0 517.0 2.9 1,900.0 1,612.0 160 158 Producer of fuel systems

This list contains information about Detroit-based divisions, affiliates, units and subsidiaries of foreign-owned companies whose headquarters are outside Wayne, Oakland, Macomb, Washtenaw and Livingston counties. This is not a complete listing but the mostcomprehensive available. Unless otherwise noted, information was provided by the companies. NA = not available. NR = not relevant. NC= no change.B Revenue converted from euros as of Dec. 31.C Revenue was converted from pounds as of Dec. 31.D Metaldyne was acquired by Shizuoka, Japan-based Asahi Tec Corp. in January 2007.E Revenue converted from Japanese Yen as of fiscal year end, March 31.F Figure includes North American Forging locations sold in March 2006.G Company estimate.H Figures from FDIC.gov.

LIST RESEARCHED BY ANNE MARKS AND JOANNE SCHARICH

LaSalle may be getting a new parent company asboth London-based Barclays plc and Edinburgh-basedRoyal Bank of Scotland are pursuing merger talks withABN Amro. (See “A Conversation With,” Page 11)

If RBS were to acquire ABN Amro, things could getinteresting locally; RBS is the parent company of Prov-

idence, R.I.-based Citizens Financial Group, whichowns Charter One Bank and its 111 branches in metroDetroit.

The decline in revenue apparent here is a result ofthe sale of Ann Arbor-based ABN Amro MortgageGroup to CitiGroup.

CRAIN’S LIST: FOREIGN-OWNED DIVISIONS, AFFILIATES AND SUBSIDIARIES By 2006 revenue


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