ASC filed for Chapter 11 bankruptcy protection this week

[kwhopper89]

Sunroof pioneer files for Ch. 11

Southgate-based ASC specialty company agrees to be acquired by a private-equity firm.

David Shepardson / The Detroit News

ASC Inc., the pioneering automotive specialty company founded by the late Heinz Prechter in 1965, filed for Chapter 11 bankruptcy protection this week in Detroit after two years of downsizing, according to court documents.

The company also revealed in court documents that it reached an agreement Monday to be acquired by Hancock Park Associates, a Los Angeles-based private equity firm. The bankruptcy filing was a condition of the purchase.

Formerly named American Sunroof Co., Southgate-based ASC was known around the world for designing and building state-of-the-art specialty cars such as the Chevrolet SSR and for innovations such as the first glass-panel sunroof.

It remains a supplier to many of the world's largest automakers, but was severely hurt by the struggles of Detroit's Big Three.

Prechter, who started ASC in a two-car garage in Los Angeles before moving to Detroit, took his own life in 2001.

After his death, Prechter's widow, Waltraud, sold ASC to the investment firm Questor Management Co.

The company now has about 252 employees, according to the filing. It has three manfacturing centers, in Michigan, Kentucky and California. In the past two years, ASC has cut about 1,000 jobs and closed plants in Livonia, Lansing and Gibraltar and in Bowling Green, Ky., as well as engineering centers in Oak Park, Auburn Hills and Warren.

The Chapter 11 filing came Wednesday in U.S. Bankruptcy Court in Detroit. ASC has pre-petition debts of $9.8 million, including a $1.4 million standby line of credit. It has total assets of $31.2 million and total liabilities of $50.8 million, with shareholders' deficiency of $19.6 million, according to the filing.

ASC's 20 top unsecured creditors are owed about $6.2 million, with Chicago-based Whitehall Industries owed the most: $703,000.

A hearing is set for today on a number of requests by ASC, including continued use of its cash management system and approval to continue paying wages and benefits to workers. ASC President Paul Wilbur could not be reached for comment late Thursday. But in an affidavit in the court filing, he said the recent downturn in the domestic auto industry and canceled projects by General Motors and DaimlerChrysler AG led to the bankruptcy filing.

"In the last several years, auto sales for the domestic automakers in the North American market have dropped precipitously, along with the profits of these automakers," Wilbur said in the filing.

ASC invested $250 million to design and manufacture the Chevrolet SSR, after it won the contract in 2001. With demand slow for the SSR, GM canceled it after the 2006 model year and canceled three other speciality vehicle programs, dramatically reducing ASC's revenue.

DaimlerChrysler shut its Dodge Viper program for one year after an engine calibration test did not achieve government certification, ASC said in the filing.

Wilbur said the company was recently awarded a contract for the Sky-Slider roof system on the 2008 Jeep Liberty, which will begin production this summer.

ASC referenced the importance the Jeep Liberty contract in asking court to allow it to continue operations.

Chrysler spokesman Mike Aberlich said late Thursday he was unaware of the filing.

You can reach David Shepardson at (202) 662-8735 or dshepardson@detnews.com.

[Marc NY]

Another sad ending to a one our SSR vendor/ partners.

[grimmye]

Another sad ending within the "Domestic" auto supplier industry! I worked with ASC on some Corvette show cars back in the '70's. I was always a Sun Roof fan and as glad when Domestics started adding them. Can't live in the past, but I hate to see it happening, but Roman Empire is no more nor British Empire, so I guess everybody gets their turn in the pot!
grimmye

[REBEL]

“ASC invested $250 million to design and manufacture the Chevrolet SSR, after it won the contract in 2001.”

Ever wonder what the total cost was … divided by units made …. What kind of deal we really have?

[hdflstf]

Originally Posted by REBEL

“ASC invested $250 million to design and manufacture the Chevrolet SSR, after it won the contract in 2001.”

Ever wonder what the total cost was … divided by units made …. What kind of deal we really have?

250000000 / 24112 = a little over 10 grand for each SSR.

[crazyrtr53]

Originally Posted by hdflstf

250000000 / 24112 = a little over 10 grand for each SSR.

Wonder what GM's total cost was and then the total per unit ????

We might have got a great deal with production stopping on what will be a low production custom truck.....

[Flassh]

I remember reading a magazine article about Detroit's less successful products written by some kind of forensic accountant type. It was in someone's office - damn - wish I'd made a copy of it. I'm doing this from a sometimes very foggy memory.

He used other examples as well, but when talking about the SSR, he took into account GM's development costs, the cost of tooling to stamp the fenders, ASC's development costs, etc,. Using the original projections of 75000 units to amortize the costs, and taking into account the factory rebates and financing costs of holding inventory, he was estimating the 24000 unit production at a cost per unit in excess of $100000. That figure was tempered by the fact the SSR used so many components from other products, and those development costs were not taken into account. Engine, chassis, transmission, etc were all considered as freebies.

Also had a long chat with a hot rod builder friend who does some beautiful work. He felt if he was building an SSR from scratch, and tried to duplicate the engineering of the top and trunk on a one-off basis, he couldn't do it for 250K

At current prices for low mileage used, this truck is an incredible bargain.

[parothed97]

Well maybe I should count myself lucky! I installed the ASC Chin Spoiler on my Blur/Silver earlier today and have a look for yourself. This was the chin spoiler destined for the 2007 SSR and the fit/finish clearly demonstrates the professional quality of the product.

I wonder if the company will make these available given their current financial condition......


1st & 2nd Picture

New ASC Chin Spoiler on my Blur/Silver SSR

3rd Picture

ASC Chin Spoiler and other Molding Parts from Prototype seen at 2005 Homecoming

[REBEL]

YEP I was thinking total cost per unit. all feeder plants, advertising, spare parts and all. It would be a big number/suprise

[jim_king]

I understand ASC will still exist as a smaller firm. This is too bad, though, as the SSR being out of production means no new ones in a couple years when I want to replace the one I have! Thanks for building it in the first place and getting it on the market just the same.

[SS My R]

Just read a bio on Heinz Prechter to learn about his death. Seems to have been an amazing man. I'd just like to say I'm thankfull for what we do have. Thanks Heinz.

Oh and thanks Keith for the update on ASC.

[Bagger]

Originally Posted by Flassh

He used other examples as well, but when talking about the SSR, he took into account GM's development costs, the cost of tooling to stamp the fenders, ASC's development costs, etc,.

Question...I haven't gotten through the SSR book that I won at Laughlin to get the whole picture yet but I'd like to ask: Were the trucks built by GM or were they built under contract by ASC? . Was the Lansing Craft Center a ASC facility? Or sis ASC do the initial pre-production build then it was passed on to GM? I've always been a little confused over this

[hdflstf]

Originally Posted by Bagger

Question...I haven't gotten through the SSR book that I won at Laughlin to get the whole picture yet but I'd like to ask: Were the trucks built by GM or were they built under contract by ASC? . Was the Lansing Craft Center a ASC facility? Or sis ASC do the initial pre-production build then it was passed on to GM? I've always been a little confused over this

It's in the book. I just finished reading it.
SSR was built by GM with subassemblies supplied by ASC. Lansing was GM assembly facility. ASC has their own facility nearby. Initial SSRs were done by and at ASC with GM (teaming type setup).

[walleye]

Thank you senators & congressman. Another chapter in the SELL OUT of USA.

[Beach potato]

I had just got the book and started reading this last weekend. Amazing engineering and I now appreciate the work that did result in this unique piece of machinery - keep on truckin'

[my05ssr]

Originally Posted by parothed97

Well maybe I should count myself lucky! I installed the ASC Chin Spoiler on my Blur/Silver earlier today and have a look for yourself. This was the chin spoiler destined for the 2007 SSR and the fit/finish clearly demonstrates the professional quality of the product.

I wonder if the company will make these available given their current financial condition......


1st & 2nd Picture

New ASC Chin Spoiler on my Blur/Silver SSR

3rd Picture

ASC Chin Spoiler and other Molding Parts from Prototype seen at 2005 Homecoming

This is the coolest chin spoiler I have seen and hope they have more to sell..

[parothed97]

Originally Posted by my05ssr

This is the coolest chin spoiler I have seen and hope they have more to sell..

I contacted Kevin today at ASC today and he has chin spoilers still available....

[WindsuppreSSR]

Here is a picture of mine very well made fit was great!