Federal-Mogul

Last updated

Federal-Mogul Holdings Corporation
Company typePrivate [1]
Industry Auto parts
Founded1899;125 years ago (1899)
as the Muzzy-Lyon Company
Headquarters Southfield, Michigan, United States
Key people
 Carl Icahn, chairman of the board
Rainer Jückstock, CEO, Federal-Mogul Powertrain
Brad Norton, CEO, Federal-Mogul Motorparts
ProductsPistons, rings, pins, liners, valve seats and guides, ignition, bearings, bushings, heat shields, sealing, systems protection, transmission, brake, chassis, wiper products
RevenueIncrease2.svg US$7.317 billion (2014) [2]
Decrease2.svg US$168 million) (2014) [2]
Total assets Decrease2.svg US$7.067 billion (2014) [2]
Total equity Decrease2.svg US$806 million (2014) [2]
Number of employees
48,600 (December 31, 2014)
Parent Tenneco
Website www.federalmogul.com

Federal-Mogul Corporation is an American developer, manufacturer, and supplier of products for automotive, commercial, aerospace, marine, rail, and off-road vehicles, as well as industrial, agricultural, and power-generation applications. It was acquired in February 2022 by Apollo Global Management. [3]

Contents

Federal-Mogul operated two independent business divisions, Federal-Mogul Powertrain and Federal-Mogul Motor-Parts. The two divisions each had their own chief executive officer.

History

Origins

Federal-Mogul was founded in 1899 in Detroit by J. Howard Muzzy and Edward F. Lyon as the Muzzy-Lyon Company. [4] Muzzy and Lyon went into business together, producing mill supplies and rubber goods. [4] In addition, the partners formed a subsidiary called the Mogul Metal Company, where they launched bearing innovations. [5] [6] Muzzy Lyon began producing bearings made from their own Babbitt metal called Mogul, an alloy of tin, antimony and copper. [7] [4] [8] The product was trademarked under the names "Mogul" and "Duro". [7] [4] [8] In addition to Babbitt metal, Muzzy and Lyon invented a process of custom die-casting bearings. [8]

The Muzzy-Lyon Company's bearings business proved successful in the early 1900s and became the pair's main concern, with Buick as one of their earliest customers. [4] In 1924, the Muzzy-Lyon Company and Federal Bearings and Bushing, an engine bearings and bushings manufacturing company founded in 1915 by a group of Detroit businessmen, [7] merged to become the Federal-Mogul Corporation. [8] The combined company also manufactured bronze bearings, a product the Muzzy-Lyon Company had not supplied previously.

Federal Mogul established a research division in 1929, with the help of Battelle Memorial Institute. [8] In 1931, during the Great Depression, Federal-Mogul started its Equi-Poise propeller division. [8]

In 1932, the company developed a new alloy called C-100, one of the first new bearing materials since the discovery of Babbitt metal. [8] The Federal-Mogul research team revamped the C-100 in 1934 to create a C-50 alloy. [8]

Post-WWII expansion

In 1955, the company acquired National Motor Bearing Company, and the company name was changed to Federal-Mogul Bower. [9]

In the late 1950s, the company opened business operations in Switzerland, [8] and in 1962, the company established an overseas service center in Antwerp, Belgium. [10] In 1963, Federal-Mogul Bower's Arrowhead division manufactured components for NASA's Saturn launch vehicle. [10]

In April 1965, Federal-Mogul Bower merged with Sterling Aluminum Products. The combined company was renamed the Federal-Mogul Corporation. [9] [11]

In 1966, Federal-Mogul Corporation relocated its corporate headquarters from downtown Detroit to Southfield, Michigan. [10]

In 1981, Federal-Mogul Arrowhead parts were implemented in the NASA Space Shuttle launch. [10]

In 1981, the company attempted to patent a process for curing rubber based on the mathematical equation written by Swedish chemist Svante Arrhenius in 1889. The US Patent Office rejected Federal-Mogul's claim, on the basis that neither a formula, as a law of nature, nor a computer program based on such a formula, could be patented. [12] That same year, the company won a claim in the Supreme Court to the patent.[ citation needed ]

Bankruptcy to the present

In 1998, the company acquired the Automotive Products division of Cooper Industries, with brands including Anco wiper blades, Champion ignition, MOOG chassis, and Wagner and Blazer lighting. [13] It also acquired Cooper's Abex Friction products business, which included asbestos-containing products. [14] That same year, Federal-Mogul acquired Turner & Newall, a building materials company based in Manchester, UK. Turner & Newall was one of the world's largest manufacturers of asbestos-related products, including those made with blue crocidolite asbestos mined in South Africa. Turner & Newall was responsible for the Armley asbestos disaster in Leeds, UK. After the acquisition, Federal-Mogul set aside approximately $2.1 billion to cover asbestos-related claims but that amount proved insufficient. [15] The large number of products liability claims that came with the Turner & Newall acquisition were largely responsible for Federal-Mogul's federal Chapter 11 bankruptcy filing in 2002. [16]

During the company's restructuring, Federal-Mogul Corporation acquired multiple companies including Robert G. Evans Co., Hanauer Machine Works, Inc.metalic Inc., Mather Co. and Fel-Pro, Inc. [17] The company emerged from Chapter 11 reorganization in January 2008, and in April 2008, the company listed Class A common stock on NASDAQ under the trading symbol FDML. [17]

In June 2010, Federal-Mogul expanded further into Asia by opening a headquarters and technical center in Shanghai, China. [18] The Asia Pacific headquarters and technical center facility contains powertrain dynamometers and vehicle braking test cells among other processes. [18] The location allows for increased technical support to powertrain and vehicle customers as well as technology development. [18]

Federal-Mogul acquired Daros Group in June 2010, a privately owned supplier of pistons for large bore engines used in industrial energy generation and commercial shipping. [19] The acquisition of the group included operations in China, Sweden and Germany. [19] The purchase of draco added two-stroke and four-stroke piston ring products to Federal-Mogul's portfolio of industrial piston rings. [19]

Technical Center, Ann Arbor, Michigan Federal Mogul Technical Center Ann Arbor.JPG
Technical Center, Ann Arbor, Michigan

In December 2010 the company's Barcelona warehouse was shut down and moved to Madrid.

In March 2012, Federal-Mogul's board of directors modified the company's corporate structure to create separate Powertrain and Vehicle Components segments, each with its own CEO. [20] Rainer juckstock former senior vice president of the company's Powertrain Energy business, was named CEO for the Powertrain segment effective April 1, 2012. [20] In February 2014, Daniel A. Ninivaggi was appointed CEO of the Federal-Mogul Vehicle Components segment (VCS).

In July 2012, Federal-Mogul announced a definitive agreement to purchase the BERU spark plug business from BorgWarner Inc. [21]

In September 2014, the company formally announced the long-awaited modification to its corporate structure - a split into two separate companies: Federal-Mogul Powertrain and Federal-Mogul Motor-Parts. The Powertrain division will focus on manufacturing and selling OEM auto parts, while the Motor-Parts division will be responsible for selling aftermarket parts. Each company will have its own CEO and corporate-level staff, who will continue to report to the board of directors of Federal-Mogul Holding Corporation. The company expects the split to be completed in the first half of 2015, pending regulatory approval. [22]

In 2014, Honeywell completed a $155 million sale of its friction materials business to Federal Mogul.

In December 2016, Federal-Mogul completed the acquisition of the Beck/Arnley brand and certain associated assets. Based in Smyrna, Tennessee, Beck/Arnley is a provider of parts and fluids for foreign nameplate vehicles in North America.[ citation needed ]

In January 2017, majority shareholder Carl Icahn completed a $300 million deal for all of Federal-Mogul's stock, after which he changed the company from a public company to a private company. [16]

In April 2018, Tenneco announced that they had purchased Federal-Mogul in a deal worth approximately US$5.4 billion. [23] On October 1, 2018, Tenneco Inc. completed its acquisition. [3]

Company divisions

Federal-Mogul Powertrain

Federal-Mogul Powertrain designs and manufacturers original equipment powertrain components and system protection products in the United States and internationally, its production line consists of different products, ranging from powdered metal parts to space suits, including engine bearings, pistons, piston pins, piston rings, cylinder liners, valve seats and guides, spark plugs, ignition coils, transmission products, technical textiles and connecting rods. [7] Bower Roller Bearing Division was a major supplier of bearings for missiles and aircraft, and for many other industries – automotive, construction machinery, machine tool and farm equipment. [24]

Federal-Mogul Motor-Parts

Federal-Mogul Motor-Parts sells and distributes products under more than 20 brands in the global vehicle aftermarket, including ANCO wiper blades; Bentley-Harris protection solutions; Champion spark plugs, wipers and filters, BERU glow plugs; AE, Fel-Pro, Goetze, Nural, Glyco and Payen engine products; MOOG steering and suspension parts; and Ferodo and Wagner brake products. [25]

Awards

Federal-Mogul has received 16 Automotive News PACE Awards. [26] The awards are for automotive suppliers that show innovation, technological advancement and business performance. [27] Federal-Mogul received their first PACE Award in 2003; their most recent PACE Award was awarded in 2016.

Related Research Articles

<span class="mw-page-title-main">Eaton Corporation</span> Multinational power management company

Eaton Corporation plc is an Irish/American multinational power management company, founded in the United States and incorporated in Dublin, Ireland, with a primary administrative center in Beachwood, Ohio. Eaton has more than 85,000 employees and sells products to customers in more than 175 countries.

<span class="mw-page-title-main">Magna International</span> Canadian automotive supplier

Magna International Inc. is a Canadian parts manufacturer for automakers. It is one of the largest companies in Canada and was recognized on the 2020 Forbes Global 2000. The company is the largest automobile parts manufacturer in North America by sales of original equipment parts; it has ranked consistently in the Fortune Global 500 list for 20 years in a row since 2001. It produces automotive systems, assemblies, modules, and components, which are supplied to General Motors, Ford and Stellantis, as well as BMW, Mercedes, Volkswagen, Toyota, Tesla, and Tata Motors, among others.

<span class="mw-page-title-main">Pep Boys</span> American automotive aftermarket service chain

Pep Boys is an American automotive aftermarket service chain. Originally named Pep Auto Supply, the company was founded in Philadelphia, Pennsylvania, in 1921 by Emanuel "Manny" Rosenfeld, Maurice "Moe" Strauss, W. Graham "Jack" Jackson, and Moe Radavitz. Pep Boys is headquartered in the Philadelphia suburb of Bala Cynwyd, Pennsylvania.

<span class="mw-page-title-main">Ferodo</span> British brake company

Ferodo is a British brake company based in Chapel-en-le-Frith in High Peak, Derbyshire.

Icahn Enterprises L.P. is an American publicly traded master limited partnership and conglomerate headquartered at Milton Tower in Sunny Isles Beach, Florida. The company has investments in various industries including energy, automotive, food packaging, metals, real estate and home fashion. The company is controlled by Carl Icahn, who owns 86 percent of it.

<span class="mw-page-title-main">Lear Corporation</span> American automotive parts manufacturer

Lear Corporation is an American company that manufactures automotive seating and automotive electrical systems. In 2019, it ranked #147 and in 2018, it ranked #148 on the Fortune 500 list.

BorgWarner Inc. is an American automotive and e-mobility supplier headquartered in Auburn Hills, Michigan. As of 2022, the company maintains production facilities and sites at 92 locations in 24 countries, and generates revenues of US$15.8 billion, while employing around 52,000 people. The company is one of the 25 largest automotive suppliers in the world.

Tenneco is an automotive components original equipment manufacturer and an aftermarket ride control and emissions products manufacturer. It is a Fortune 500 company that was publicly traded on the New York Stock Exchange since November 1999 until it was taken private in November 2022 by Apollo Global Management. Tenneco is headquartered in Northville, Michigan.

<span class="mw-page-title-main">Denso</span> Global automotive components manufacturer

DENSO Corporation is a global automotive components manufacturer headquartered in the city of Kariya, Aichi Prefecture, Japan.

Wagner Electric Corporation was an electric equipment manufacturing firm established in 1891 that became part of Studebaker-Worthington in 1967.

<span class="mw-page-title-main">PACE Award</span> Annual Automotive News award

The PACE Award is an annual award from Automotive News. The focus of the award is an innovation (i) developed primarily by a supplier, (ii) that is new to the automotive industry, (iii) that is in use, and (iv) that "changes the rules of the game". Awards have been given for products, materials, processes, capital equipment, software and services. A panel of independent judges from industry, finance, research, and academia choose finalists from the initial applicants, make site visits to evaluate the innovation, and then gather to select winners, independent of the sponsors. Winners to date include suppliers from Japan, Korea, China, the US, Canada, Brazil, Germany, France, Italy, Poland and other European countries. Among the most awarded companies over the years are BorgWarner, Delphi Automotive, Federal-Mogul, Valeo and PPG Industries as well as Robert Bosch GmbH, Gentex Corporation, and Siemens.

<span class="mw-page-title-main">Dover Corporation</span> American industrial conglomerate corporation

Dover Corporation is an American conglomerate manufacturer of industrial products. The Downers Grove, Illinois-based company was founded in 1955. As of 2021, Dover's business was divided into five segments: Engineered Products, Clean Energy and Fueling, Imaging & Identification, Pumps & Process Solutions and Climate and Sustainability Technologies. Dover is a constituent of the S&P 500 index and trades on the New York Stock Exchange under "DOV." Dover was ranked 445 in the 2023 Fortune 500. The company relocated its headquarters to Illinois from New York in mid-2010.

<span class="mw-page-title-main">Turner & Newall</span> Asbestos manufacturer of Manchester, UK (1871-1998)

Turner & Newall was a manufacturing business based in Manchester, United Kingdom. At its peak, it was a constituent of the FT 30 index of leading companies on the London Stock Exchange. As part of their business, the company was one of the first to industrialise asbestos, and its eventual demise in 2001 left an aftermath of asbestos litigation.

<span class="mw-page-title-main">Keasbey and Mattison Company</span> American asbestos manufacturer

Keasbey and Mattison Company was a manufacturing company that produced asbestos-related building products, including insulation and shingles. Founded in 1873 by Henry Griffith Keasbey (1850-1932) and Richard Van Zeelust Mattison (1851-1935), the company moved to Ambler, Pennsylvania, in 1881. By World War I, the Keasbey and Mattison Company's presence caused Ambler to be known as the "asbestos capital of the world". Keasbey and Mattison was purchased by Turner & Newall in 1934.

SPX Corporation is an American manufacturing company, headquartered in Charlotte, North Carolina. The company operates within four markets: heating, ventilation, and air conditioning (HVAC), detection and measurement, power transmission and generation, and engineered solutions. Examples of SPX’s products include cooling towers and boilers, underground pipe and cable locators, power transformers, and heat exchangers. Brands include Waukesha, Dielectric, Genfare, Fahrenheat, Radiodetection, and Pearpoint. SPX operates in 17 countries with a sales presence in 100 countries, and over 6,000 employees worldwide. In 2019, the company earned approximately $1.5 billion in annual revenue.

<span class="mw-page-title-main">NTN Corporation</span> Japanese manufacturer of bearings

NTN Corporation is one of the most prominent manufacturers of bearings in Japan, second domestically only to NSK Ltd. The company is one of the largest exporters worldwide of friction-reducing products, such as constant-velocity joints.

Richard A. Snell is an American businessman. He was the CEO of the Federal-Mogul Corporation, from 1996 to 2000.

ANAND Group is an Automotive Industry company, with headquarters in Delhi, India. It manufactures as well as supplies automotive systems and components.

<span class="mw-page-title-main">Delphi Technologies</span> Automotive Parts Manufacturer

Delphi Technologies was an independent automotive company from 2017 to 2020, when it was acquired by BorgWarner Inc.

Daniel A. Ninivaggi is an American automobile executive who Formerly served as the executive chairman of Lordstown Motors until its bankruptcy, and formerly its CEO. He is also the chairman of Garrett Motion, and was formerly the CEO of Icahn Enterprises as well as co-chairman, co-CEO of Federal-Mogul.

References

  1. ↑ "Icahn Enterprises L.P. (IEP) Closes Acquisition of Federal-Mogul (FDML)".
  2. 1 2 3 4 "Federal-Mogul – Investors – SEC Filings". corporate-ir.net.[ permanent dead link ]
  3. 1 2 "2017 - 2015 News Archive".
  4. 1 2 3 4 5 Turner, Tyya N. (2005). Vault guide to the top manufacturing employers. New York, NY: Vault Inc. pp. 108–112. ISBN   1-58131-324-1.
  5. ↑ "Federal mogule goetze training report - [DOCX Document]". vdocument.in. Retrieved January 20, 2024.
  6. ↑ "Federal-Mogul Goetze". www.openbusinesscouncil.org. January 19, 2024. Retrieved January 20, 2024.
  7. 1 2 3 4 Klier, Thomas H; Rubenstein, James N. (2008). Who really made your car? Restructuring and geographic change in the auto industry. Kalamazoo, MI: W. E. Upjohn Institute. pp. 68–69. ISBN   978-0-88099-333-3.
  8. 1 2 3 4 5 6 7 8 9 "1899–1940: Founded on Innovation". Federal-Mogul Corporation. 2011. Archived from the original on July 10, 2011. Retrieved March 6, 2011.
  9. 1 2 "1941–1956: Diversifying for Success". Federal-Mogul Corporation. 2011. Archived from the original on May 18, 2007. Retrieved March 6, 2011.
  10. 1 2 3 4 "1957–1974 Going Global". Federal-Mogul Corporation History. Archived from the original on January 23, 2013. Retrieved July 13, 2012.
  11. ↑ Morton, Hudson T. (1965). Anti-friction Bearings. Ann Arbor, MI: Hudson T. Morton. p. 465.
  12. ↑ "Computer-aided processes are patently confusing". New Scientist . Vol. 89, no. 1244. March 12, 2008. p. 678. ISSN   0262-4079.
  13. ↑ Rodengen, Jeffery (1998). The Legend of Federal-Mogul. Florida: Write Stuff Enterprises, Inc. p. 151. ISBN   0-945903-44-8.
  14. ↑ "Cooper Industries, Ltd.: Federal-Mogul Bankruptcy Confirmation Hearing Extended" (Press release). Cooper Industries. Business Wire. June 21, 2007. Retrieved February 13, 2018.
  15. ↑ "Federal-Mogul Corporation". June 10, 2014.
  16. 1 2 Walsh, Dustin (January 19, 2017). "Icahn to take full ownership of Federal-Mogul in $300 million deal". Crain's Detroit Business . Retrieved February 13, 2018.
  17. 1 2 "1975–2011 A Bright Future". Federal-Mogul Corporation History. Archived from the original on May 7, 2012. Retrieved July 13, 2012.
  18. 1 2 3 "Federal-Mogul Opens Shanghai Headquarters and Technical Center". eBearing News. Archived from the original on April 24, 2011. Retrieved August 3, 2012.
  19. 1 2 3 "Federal-Mogul Buys Piston Ring Caster Daros". American Foundry Society. June 25, 2010. Archived from the original on May 2, 2014. Retrieved July 27, 2012.
  20. 1 2 "Federal-Mogul Says Rainer Jueckstock To Succeed Jose Maria Alapont As CEO". RTT News. March 12, 2012. Archived from the original on May 2, 2014. Retrieved August 1, 2012.
  21. ↑ Walsh, Dustin (July 3, 2012). "Federal-Mogul acquisition of BorgWarner's Beru spark plug unit expected to boost sales $80 million". Crains Detroit Business. Retrieved August 1, 2012.
  22. ↑ Clothier, Mark (September 3, 2014). "Icahn's Federal-Mogul to Split Motorparts, Powertrain". Bloomberg.
  23. ↑ "Tenneco buys Icahn's Federal-Mogul in deal worth $5.4B". CNBC . Archived from the original on April 12, 2018.
  24. ↑ Searing heat, frigid cold torture missile bearings. // Aviation Week & Space Technology, May 2, 1960, v. 72, no. 18, p. 14.
  25. ↑ "FEDERAL-MOGUL TO PRESENT INNOVATIVE RANGE OF EFFICIENCY-ENHANCING TECHNOLOGIES AT THE 2012 IAA COMMERCIAL VEHICLE SHOW IN SEPTEMBER". Reuters. Archived from the original on August 3, 2012. Retrieved August 2, 2012.
  26. ↑ "2017 Automotive News PACE Awards". Crain Communications. Retrieved September 13, 2016.
  27. ↑ "2013 Automotive News PACE Awards". Crain Communications Inc. Retrieved September 13, 2016.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.