Eaton CEO denies report that automotive segment is for sale

Adam Rubenfire
AUTOMOTIVE NEWS

Published: June 14, 2013 3:25 pm ET
Updated: June 14, 2013 3:27 pm ET

Related to this story

Topics Automotive, Mergers & Acquisitions

CHICAGO — Engine supplier Eaton Corp.'s top executive strongly denied a report that the company is considering a sale of its automotive business.

"We are not, and have not been, in the process of discussions to sell our automotive business," Eaton Chairman and CEO Alexander Cutler said recently at the Deutsche Bank Global Industrials and Basic Materials Conference in Chicago.

On June 10, Bloomberg reported that Eaton was "weighing" a sale of its auto parts business to focus on its growing power and lighting operations, citing people with knowledge of the matter. Two sources told Bloomberg that managers at Eaton were in private talks about searching for a buyer.

Sources told Bloomberg that Eaton predicted that the automotive business would be an easy sell because of the unit's potential for growth. They said strong U.S. light-vehicle sales were also an incentive to consider selling off the business.

Last November, Eaton acquired Cooper Industries P.L.C., an electrical component manufacturer, for $13 billion. Since then, Culter said he has been frequently asked whether Eaton is leaving the auto industry.

"I've answered this question repeatedly since we did the acquisition of Cooper," Cutler said at the conference. "Our vehicle business is a very important part of Eaton. It is a very strong franchise."

Cutler also said Eaton's automotive segment is a lucrative part of the company's operations. Bloomberg, in its report, said the unit has a potential value of $1 billion.

Eaton's automotive business includes plastic and rubber under-the-hood parts.


Comments

Eaton CEO denies report that automotive segment is for sale

Adam Rubenfire
AUTOMOTIVE NEWS

Published: June 14, 2013 3:25 pm ET
Updated: June 14, 2013 3:27 pm ET

Post Your Comments


Back to story


More stories

Image

New medical firm buys Clairson Plastics

September 19, 2014 4:33 pm ET

Custom injection molder Clairson Plastics is being sold to a new start-up that plans to dive into the medical market with a new dialyzer, a key...    More

Image

Plasan investing in capacity, jobs to supply auto market with carbon fiber

September 19, 2014 3:05 pm ET

Growth in the emerging automotive market for carbon-fiber composites has spurred a $29 million investment in a Walker, Mich., factory    More

Image

Hong Kong's TK eyes expansion, may buy Nypro Tool operation

September 19, 2014 2:49 pm ET

Hong Kong-based mold maker and plastics processor TK Group (Holdings) Ltd. said it's reached a tentative agreement to buy a tooling factory in...    More

Image

Toyoda Gosei expanding in Mexico

September 19, 2014 2:33 pm ET

Toyoda Gosei North America Corp. is investing $67 million in a 398,000-square-foot plant in central Mexico to supply the automotive industry with...    More

Exo-s buys injection and blow molder in Mexico, expands footprint

September 19, 2014 2:15 pm ET

Custom molder Exo-s Inc. has bought an injection and blow molding operation in San Juan del Rio, Querétaro, Mexico.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events