Dickinson Wright PLLC

INDUSTRIES

Automotive

Increased fuel costs and "right-sizing" of the domestic automotive industry, among other issues, are creating unprecedented challenges for vehicle manufacturers and their suppliers. Experts estimate that as much as twenty percent of the publicly traded automotive suppliers will face financial trouble within the next twelve months. Of privately held companies, nearly half are experiencing some potential financial distress.

This right-sizing is largely the result of product mix changes. Suppliers are focusing on their respective core products and shrinking in response to reductions in domestic automaker requirements. Consolidation of the automotive supply base will no doubt increase over the next few year as suppliers leverage economies of scale and continue to drive costs down. The suppliers who find the right balance between outsourcing to lower-costs countries and improved efficiencies will be well-positioned for a healthy and sustainable future.

With more than 200 active automotive-industry clients and approximately 50 attorneys who "touch" this industry - some of whom have served as in-house counsel at OEMs and automotive suppliers -- Dickinson Wright is among the nation's preeminent automotive law firms. The firm has deep roots in the industry, having been associated with Chrysler Corporation since its organization in the 1920, and providing expertise during the process leading to the loan guarantee authorized by the U.S. Congress that permitted the financial restructuring of Chrysler in the 1980s. Dickinson Wright's association with Ford Motor Company also spans several decades.

The firm has an exceptional understanding of regional and regulatory issues governing the industry, gained through tens of thousands of client engagements. The breadth and depth of the firm's range of specializations, including significant experience in automotive manufacturing and distribution projects throughout North America and the world, enable Dickinson Wright attorneys to cover virtually all aspects of automotive client needs.

Specific expertise includes providing counsel and assistance related to mergers and acquisitions, corporate governance, contracts and e-commerce, finance, real estate, intellectual property, product recall and regulatory compliance, labor and employment, troubled supplier and bankruptcy, and environmental. In addition, Dickinson Wright provides auto industry clients with comprehensive litigation support with regard to general commercial and business issues, product liability, toxic tort, personal injury, anti-trust, franchise, class action, injunctions, intellectual property, and bankruptcy.

For more information, please contact:
James A. Plemmons
313-223-3106 or jplemmons@dickinsonwright.com