Tower exits Chap. 11 without GM business.(Suppliers)(contracts of Tower Automotive Inc. and General Motors Corp.)

Automotive News, September, 2007 by Sherefkin, Robert

Byline: Robert Sherefkin

Tower Automotive Inc.'s new CEO, Mark Malcolm, has his work cut out for him.

Tower recently emerged from 21/2 years of bankruptcy protection, but it must replace more than $360 million in General Motors business lost after a dust-up with the automaker in Michigan. Just three years ago, GM was Tower's third-largest customer.

Malcolm hopes to replace the GM business, which fell to zero this year, with more work from Nissan Motor Co.

But that takes time. And like most private equity firms, Tower's new owner, Cerberus Capital Management, expects fast results.

Tower and GM began parting ways when the supplier decided in 2005 to end assembly work for GM near Lansing, Mich.

The move "was a...

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