Bing mulling selling his supplier firm

Detroit Mayor Dave Bing said he is considering selling the automotive supply company he founded, the Bing Group, because he is having trouble borrowing money and his firm’s lack of global scale is likely to impede its long-term success.

The Detroit-based Bing Group is a provider of stamped and processed steel for automakers. It employs about 600 people.

“It’s not a bright future. It really isn’t, because our customers aren’t healthy and obviously we’re not healthy because of that,” Bing told WWJ-AM radio Monday morning. “It’s tough for us to go out and borrow money to keep things going. It’s a tough situation.”

Bing said he expects to make a decision about whether to sell his company during the first quarter of 2010.

“I’m not sure if we’re going to continue, and I’ve got to think about whether or not I should sell. We’re not a global company, and if you’re going to be a player in this industry you almost need to be global,” Bing told the radio station.

The Bing Group’s troubles reflect the cash crunch that large and small suppliers have felt as major automakers have slashed production because of slumping demand for new cars and trucks.

Several large suppliers have filed for bankruptcy, including Southfield-based Lear Corp. and Van Buren Township-based Visteon Corp., after the companies broke financial agreements with their lenders.

Last week, the Original Equipment Suppliers Association again asked the government for help in making credit available to suppliers, as banks continue to view the automotive sector as a risky investment.

After being elected as Detroit’s mayor, Bing transferred leadership of his company to CEO Kirk Lewis and his daughters. In a statement, Lewis said the economic climate has forced the company to consider options. “We will continue to operate in the best interest of our stakeholders.”

Bing told WWJ he hoped that his firm might be sold to a company that would preserve jobs in Detroit.

“I’m not so interested in making money for me. It’s about keeping my people employed and keeping those jobs in the city of Detroit,” said Bing, who noted that some of his employees have been at his firm for decades.

“It’s not easy,” he added. – Freep

 Email This Post