Federal-Mogul CEO Jose Maria Alapont says while they are well placed for the future after extensive restructuring in recent years, some suppliers are vulnerable following an unprecedented dropoff, now easing, in volumes this year especially in North America – that is now easing.
“We won’t relax at Federal-Mogul,” he says. “The people that have done the right restructuring and have the strength to keep driving, simultaneously, restructuring and cost reduction, while still having new technology and innovation – they will be successful”.
Alapont is upbeat about the financial position of Federal-Mogul, which is controlled by billionaire investor Carl Icahn. “Right now our liquidity is US$1.3bn – which is available for potential acquisitions. Also, and this is important, we have a credit line of US$3bn.
“So we have good liquidity, very solid credit lines and we generate cash, we don’t consume it. It’s a very strong financial position.”
