did fram buyout wix??
- Thread starter ted s
- Start date
- Status
Well, wixfilters.com indicates that they're owned by the Dana corporation.
Fram is owned by Honeywell, which is a MONSTROUSLY BIG consumer products corporation. They make HVAC systems, fire alarms, weapons control systems,... you name it.
So, unless there is something VERY NEW going on, I doubt it.
I googled for "Fram Owns Wix" and got no hits. "Dana + Honeywell" didn't give me hits indicating an ownership structure.
Fram is owned by Honeywell, which is a MONSTROUSLY BIG consumer products corporation. They make HVAC systems, fire alarms, weapons control systems,... you name it.
So, unless there is something VERY NEW going on, I doubt it.
I googled for "Fram Owns Wix" and got no hits. "Dana + Honeywell" didn't give me hits indicating an ownership structure.
Dana Corp. announced in December that they intend to "divest" their Automotive Aftermarket Group, which makes Wix filters and Raybestos brakes, among other things. (Dana Press Release) So, presumably, we'll hear sometime that Wix has been purchased by somebody.
I can't find any current news mentioning a sale to Honeywell, or anyone else. Doesn't mean it couldn't have happened, though.
I can't find any current news mentioning a sale to Honeywell, or anyone else. Doesn't mean it couldn't have happened, though.
Dana Corporation at some time in the past probably bought out, took over, all of that other corporate mumbo jumbo whatever corporation or company owned WIX. So now that corporation is out on its own again unless and until it is bought out, taken over, all of that mumbo jumbo corporate talk by some other company.
Two paths WIX can now take. The path of good quality or the path of bad quality. Which will it be?
Two paths WIX can now take. The path of good quality or the path of bad quality. Which will it be?
As of today, I'm certain Fram (Honeywell) hasn't bought the filter business of Wix. I suppose Honeywell could be considering it, but I find it somewhat unlikely. Just before GE tried to buy Honeywell a few years back, Honeywell was trying to sell off it's automotive component businesses.
jthorner, That was a really good summary of what's going on in the industry and which moves might make sense.
Fram isn't likely to buy Wix to get their market share. Their distribution network is much more widespread (actually dominant) and their brand recognition (unfortunately) is greater than any other filter manufacturer ... at least in this part of North America.
Perhaps they may want to buy their way out of the gutter? Actually use the Wix line as a super-premium "boutique" grade of filter. My guess is no. Fram has spent a lot of money convincing people (falsely) that their brand is one of the best available. If they put a super-premium line on shelves next to Fram, that would cast their entire orange monster into question.
I could see Baldwin/Hastings buying Wix then consolidating to try and become the undisputed #2 in the industry ... unless the conglomerate would still be smaller than Purolator.
Maybe someone like NAPA will buy them? Integrate vertically? That doesn't seem to be the trend in most industries these days. They don't want their products made in-house anymore. Rather use out-sourcing and deal with the production as a customer rather than a manager.
This scenario will be interesting to watch, regardless what happens. But I think I speak for most people on this forum when I say that I'd like to see their product continue to remain the same, high-quality stuff it's been for many years.
--- Bror Jace
Fram isn't likely to buy Wix to get their market share. Their distribution network is much more widespread (actually dominant) and their brand recognition (unfortunately) is greater than any other filter manufacturer ... at least in this part of North America.
Perhaps they may want to buy their way out of the gutter? Actually use the Wix line as a super-premium "boutique" grade of filter. My guess is no. Fram has spent a lot of money convincing people (falsely) that their brand is one of the best available. If they put a super-premium line on shelves next to Fram, that would cast their entire orange monster into question.
I could see Baldwin/Hastings buying Wix then consolidating to try and become the undisputed #2 in the industry ... unless the conglomerate would still be smaller than Purolator.
Maybe someone like NAPA will buy them? Integrate vertically? That doesn't seem to be the trend in most industries these days. They don't want their products made in-house anymore. Rather use out-sourcing and deal with the production as a customer rather than a manager.
This scenario will be interesting to watch, regardless what happens. But I think I speak for most people on this forum when I say that I'd like to see their product continue to remain the same, high-quality stuff it's been for many years.
--- Bror Jace
Dana Corp's stated intentions are to focus on supplying module level solutions to auto manufacturers.
I would think that the demands of the automotive aftermarket are very different and it is a brutally price competitive market.
The question is, what company wants to be in the aftermarket auto parts business? The price competition is brutal and the legal liabilities are huge.
I really can not imagine what company would want to buy Wix' factories, designs and distribution channels. Maybe a smaller player like Baldwin or an expansion minded foreign company like Denso. Allied Signal / Fram certainly should not be interested and Champion Labs seems committed to being a mfg. for other people's brands.
I think Dana is probably finding it hard to get a price they would want for the businesses.
John
I would think that the demands of the automotive aftermarket are very different and it is a brutally price competitive market.
The question is, what company wants to be in the aftermarket auto parts business? The price competition is brutal and the legal liabilities are huge.
I really can not imagine what company would want to buy Wix' factories, designs and distribution channels. Maybe a smaller player like Baldwin or an expansion minded foreign company like Denso. Allied Signal / Fram certainly should not be interested and Champion Labs seems committed to being a mfg. for other people's brands.
I think Dana is probably finding it hard to get a price they would want for the businesses.
John
I think your right, selling Wix might be difficult. But I think that Wix's market might be an incentive. Fram could get into the one store they haven't yet, NAPA.
Tied with Raybestos and the other parts, this would be very difficult. I am disapointed though, I think that they are all very good brands, and I hope they maintain this distinction.
-T
Tied with Raybestos and the other parts, this would be very difficult. I am disapointed though, I think that they are all very good brands, and I hope they maintain this distinction.
-T
I e-mailed wix today and asked who is buying them,and if production will be the same. Here is the reply.
Hello, Matt,
Thank you for your inquiry.
I wish I had an answer for you! Since we do not know who the buyer will
be, I can't answer that!
Wish we had all the answers, you know, at this point, we don't know any
more than you do!
Thanks,
Susan Thompson
Technical Service Manager
Hello, Matt,
Thank you for your inquiry.
I wish I had an answer for you! Since we do not know who the buyer will
be, I can't answer that!
Wish we had all the answers, you know, at this point, we don't know any
more than you do!
Thanks,
Susan Thompson
Technical Service Manager
Not a chance IMO. NAPA retains the flexibility to shop it's business around from time to time and beat their suppliers down on price and/or quality levels. If Wix goes away it would be a fairly simple matter for NAPA to transition it's filter business over to Champion Labs, Baldwin or some combination of suppliers. NAPA does little if any in-house mfg., which probably makes sense. Running a parts distribution business is hard and is very different from running a product development and mfg. business.
Unfortunately as highly regarded as the Wix name is in lunatic fringe circles (I love 'em) ... the brand name probably has minimal real world monetary value.
That seems unlikely as well. Baldwin/Hastings has focused almost exclusively on the heavy duty truck and equipment market where the technical demands are higher and the price pressures slightly less severe than in the consumer automotive segment. I'm sure they are looking at it, but it seems a long shot. For us the users Baldwin/Hastings/Wix would be a good marriage.
I feel for all of the people at Wix who have their futures up in the air. Most scenarios end up with a goodly number of layoffs in design, manufacturing and distribution. Only if a company not presently in the automotive filtration business were to buy Wix would it be likely to survive intact ... and who is going to do that?
John
[ March 05, 2004, 02:48 AM: Message edited by: jthorner ]
Thanks jthorner for confirming many of my suspicions. Because of real-life job decisions, my marketing training from years ago is a little rusty.
Yes, I guessed that NAPA would rather be a wholesale customer than a manager. Vertical integration is a thing of the past and has proven to generate inefficiencies at many levels.
GM is living proof of that and they are desperate to change.
"I feel for all of the people at Wix who have their futures up in the air. Most scenarios end up with a goodly number of layoffs in design, manufacturing and distribution. Only if a company not presently in the automotive filtration business were to buy Wix would it be likely to survive intact ... and who is going to do that?"
I think that's important to remember. It's one thing for us anal-retentive types who want an uninterrupted supply of their pet brand of filters ... but for hundreds of people, this issue may mean their job and their entire way of life.
--- Bror Jace
Yes, I guessed that NAPA would rather be a wholesale customer than a manager. Vertical integration is a thing of the past and has proven to generate inefficiencies at many levels.
"I feel for all of the people at Wix who have their futures up in the air. Most scenarios end up with a goodly number of layoffs in design, manufacturing and distribution. Only if a company not presently in the automotive filtration business were to buy Wix would it be likely to survive intact ... and who is going to do that?"
I think that's important to remember. It's one thing for us anal-retentive types who want an uninterrupted supply of their pet brand of filters ... but for hundreds of people, this issue may mean their job and their entire way of life.
--- Bror Jace
Speaking of NAPA, I was really happy to see they are reopening a store in my berg. I never bought much from them, but the more choice and competition, the better.
I generally like our local NAPA store. The prices are generally competitive, product quality is normally good and delivery time has been great. Up until a year or so ago their regional distribution center was in our town and when I needed something which was not in the store but was in the warehouse I could just stop in and Will Call pick it up. Now the warehouse moved to a cheaper location, but I still use NAPA frequently.
John
John
I have a Wix on my truck right now. I went to my local NAPA store today and they had a display of a NAPA Gold and a basic Fram cut open side by side. The Fram looked pretty crappy with its cardboard end caps, but the NAPA looked solid with metal end caps that extend about 1/4 inch down over the face of the media.
Baldwin is not independent...it is owned by Clarcor Corp. which make many types of filters under several brand names...Baldwin, Hastings, Purolator-Facet hydraulic filters and Purolator non-automotive air filters (not related to ArvinMeritor's Purolator auto filters), and other brands.
http://www.clarcor.com/
Ken
http://www.clarcor.com/
Ken
- Status