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Top-down joy ride ends for ASC; Stiff competition, loss of GM pact, r&d plan seen as factors.

Publication: Automotive News
Publication Date: 14-MAY-07
Format: Online
Delivery: Immediate Online Access
Full Article Title: Top-down joy ride ends for ASC; Stiff competition, loss of GM pact, r&d plan seen as factors.(Suppliers)

Article Excerpt
Byline: Robert Sherefkin

When entrepreneur Heinz Prechter's ASC Inc. faced financial difficulty, he put his personal fortune at risk to keep it going.

But when recent troubles plagued ASC, the private equity owner that bought the company after Prechter's death in 2001 put ASC into Chapter 11 reorganization.

The Chapter 11 filing on May 2 was part of a deal announced May 4 to sell some of the company's assets.

The surge of private equity in the auto industry brings a disciplined dollars-and-cents operational style. It brings new capital. But there is little patience for investments that fail to earn profits because of setbacks or dips in fortunes.

But...

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