EXHIBIT 18


April 13, 2004


Board of Directors of HLI Operating Company, Inc.
Northville, Michigan

Ladies and Gentlemen:

We have audited the consolidated balance sheets of HLI Operating Company, Inc.
(the Company) and subsidiaries as of January 31, 2004 (the Successor) and 2003
(the Predecessor), and the related consolidated statements of operations,
changes in stockholders' equity (deficit) and comprehensive income (loss), and
cash flows for the period from June 1, 2003 to January 31, 2004 (the Successor),
the period from February 1, 2003 to May 31, 2003 and each of the years in the
two-year period ended January 31, 2003 (the Predecessor), and have reported
thereon under date of April 6, 2004. The aforementioned consolidated financial
statements and our audit report thereon are included in the Company's annual
report on Form 10-K for the year ended January 31, 2004. As discussed in Note 7
to those financial statements, the Successor Company changed its method of
accounting for potential goodwill impairment under Statement of Financial
Accounting Standards No. 142,"Goodwill and Other Intangible Assets", by changing
the date as of which it will perform its annual testing of whether goodwill is
impaired from January 31st to November 1st of each year. Also, in Note 7, the
Company states that the newly adopted accounting principle is preferable in the
circumstances because (1) choosing the 1st day of the 4th quarter allows
adequate time to perform the first step of the test and, if necessary, the
second step of the test while still providing time to report the impact of the
test in the Company's periodic filings, (2) the Successor Company has never
chosen a test date for goodwill impairment, (3) goodwill of the Predecessor
Company was eliminated as a result of fresh start accounting, and (4) the
Predecessor Company no longer exists. In accordance with your request, we have
reviewed and discussed with Company officials the circumstances and business
judgment and planning upon which the decision to make this change in the method
of accounting was based.

With regard to the aforementioned accounting change, authoritative criteria have
not been established for evaluating the preferability of one acceptable method
of accounting over another acceptable method. However, for purposes of the
Company's compliance with the requirements of the Securities and Exchange
Commission, we are furnishing this letter.

Based on our review and discussion, with reliance on management's business
judgment and planning, we concur that the newly adopted method of accounting is
preferable in the Company's circumstances.

Very truly yours,

/s/ KPMG LLP