CENTERLINE, Mich., October 8, 2009 – AZ Automotive, a Tier One full-service engineering and production supplier of metal stampings, assemblies, and modules to automotive manufacturers, is poised for growth after significantly reducing its debt and realigning its cost structure.
AZ Automotive reduced the leverage in its balance sheet by increasing its equity and reducing its overall debt by 55 percent. The result makes the company stronger financially and more competitive. “Today it’s no longer enough to deliver engineering and operations excellence at competitive costs. In addition, a solid balance sheet is a must to compete in the automotive supply community, especially now,” said Michael J. Alcala, president and CEO. “At AZ, we have substantially reduced our costs in a variety of ways lowering our breakeven point on sales by 31 percent while maintaining the highest levels of quality and service from our manufacturing facilities and engineering function.”
Affiliates managed by Vantage Capital, formerly a majority owner, have increased their share to 100 percent ownership. Vantage Capital has been invested in AZ Automotive for the last seven years and remains fully supportive of the business. GMAC, the senior lender agent to AZ, has financed the company for the past seven years as well and continues its solid support. The company is in compliance with its senior loan arrangements, which extend through March 2012.
Throughout this tough economic time, AZ has continued to provide the highest levels of quality and delivery service of engineered stampings, assemblies and modules from its eight manufacturing facilities, five of which are in the Detroit area. AZ has maintained all of its current production contracts and has recently been awarded takeover work and new product business.
AZ is now pursuing its growth strategy to diversify its customer base and has plans to expand its geographic footprint to be near OEM manufacturing facilities. All of the above complement AZ’s value proposition which centers around engineered product and process solutions primarily for body and chassis applications.
About AZ Automotive
AZ specializes in engineered metal stampings, assemblies, and modules at benchmark quality and service levels for the automotive industry in the US and Canada. AZ Automotive has been in business for 76 years and has complete body and chassis design and manufacturing capabilities at eight plants located in: Lenexa, Kan.; Centerline, Mich.; Roseville, Mich.; Sterling Heights, Mich.; two in Warren, Mich.; and two in London, Ontario.