Federal-Mogul Will Operates Two Business Units image

Supplier Federal-Mogul recently announced that it will operate with two business units, one for aftermarket parts and one for powertain parts for carmakers.

Each unit has a CEO that reports to Federal-Mogul’s board. Rainer Jueckstock is the co-CEO and CEO of the powertrain unit and Michael Broderick is Federal-Mogul’s co-CEO and CEO of the aftermarket unit. The company made public its plans for the two units in March.

“The new organizational model allows for a strong product line focus benefitting both original equipment and aftermarket customers and will enable the global Federal-Mogul teams to be responsive to customers’ needs for superior products and to promote greater identification with Federal-Mogul premium brands,” Broderick said in a statement.

Federal-Mogul’s powertrain operation includes 79 plants and 32,500 employees and in 2011 its sales totaled $4.2 billion. The aftermarket unit includes 31 plants and 12,500 employees and its 2011 sales reached $3.1 billion. From 2005 to 2011 Federal-Mogul closed 34 facilities in North America and Europe and opened other 18 plants in fast-growth regions. Currently the company focuses almost 30% of its production capacity in low-cost markets such as India, Russia, China, South America and Turkey.