Study Finds OEMs Jeopardizing Their Own Future, Industry Purchasing Practices Harming Competitiveness
Consolidation in the automotive industry — driven by intensive cost pressure from OEMs — is threatening those same OEMs’ competitiveness, according to one recent study. A new study by The Boston Consulting Group (BCG) “Beyond Cost Reduction: Reinventing the Automotive OEM-Supplier Interface,” shows that over the past decade, automotive OEMs have outsourced central functions, which has left them dependent on ever fewer suppliers and their innovations.
NASCAR and Advance: A ‘Win-Win Situation’
There’s a trite phrase used with companies that market with NASCAR, said Karl Barnhart, a managing director at CoreBrand, a New York branding firm. “You win on Sunday, and you sell on Monday,” he said.
DENSO Earns 2004 Climate Protection Award from EPA
The U.S. Environmental Protection Agency (EPA) has awarded its 2004 Climate Protection Award DENSO Corp., Toyota Motor Corp. and Toyota Industries Corp., which together comprise the Electrical Inverter Air Conditioning Team. The team developed an electrical inverter air conditioning system that provides cooling for the new 2003 Toyota Prius during “idle” stop when the engine shuts down to save fuel and emissions. The team was one of 12 organizations and individuals to receive the award.
Dana Opens New Automotive Systems Technology Center
Today, Dana Corp. unveiled a new Automotive Systems Group Technology Center, located near Toledo, Ohio. The nearly 200,000 square-foot facility features advanced component and system engineering, along with housing testing and purchasing experts. In addition to supporting research and development activities across North America, the new center augments Dana’s technical centers in the Asia-Pacific, South American and European markets, according to Dana CEO and President Michael Burns.
USA Industries Hosts Visit With President George W. Bush
President George W. Bush stopped by Bay Shore, N.Y.-based USA Industries on March 11 as part of his initiative to address job growth in the U.S. USA Industries President and Owner Vincent Trapani greeted President Bush with a brief factory tour. While there, the president held a discussion about job creation and the economy. Approximately 700 people attended the event, including 200 USA Industries employees and their family members, customers, sales reps, service partners, as well as national and local press. New York State Governor George Pataki and several other federal, state and local political figures were also in attendance.
MEMA Names New Executive Director of Association Management Division
Brent Hazelett has been promoted to executive director of Management Services Group (MSG), the association management division of MEMA. He has served as the executive director of the Filter Manufacturers Council (FMC) since May 1998, and will continue to serve in that capacity as well.
Goodyear to Complete Purchase of Slovenia’s Sava Tires
In a move to further strengthen its position in the central and eastern European market, Goodyear Tire & Rubber is acquiring the remainder of Sava Tires d.o.o., a joint venture tire manufacturing company located in Kranj, Slovenia. In 1998, Goodyear acquired a 60 percent stake in the Sava Tires joint venture. In 2002, the company bought an additional 20 percent . Goodyear will exercise its call option and purchase the remaining 20 percent of Sava Tires owned by Slovenia’s Sava d.d. for approximately $52 million.
American Axle & Manufacturing Awarded Contract for New Driveline System
American Axle & Manufacturing Holdings (AAM) has been selected as the driveline system and module supplier for a 2008 model year North American vehicle program. AAM will be the sole source, exclusive supplier and systems integrator for all of the driveline components, systems, modules and forged products for the new off-road adventure sport enthusiast vehicle. The contract is valued at $100 million per year based on current customer design direction.
California Legislators to Attend Car Care Month Event in Sacramento
ASC, CAWA and NASCAR will join AAIA in recognizing April as National Car Care Month at a special event for California legislators, local media and area aftermarket representatives. A reception and private showing of the new “Experience NASCAR” movie at the IMAX theater near the state capitol is scheduled for April 13.
Hayes Lemmerz To Close Michigan Plant
Hayes Lemmerz International said it will permanently close its Howell, Mich., manufacturing facility as part of a manufacturing rationalization plan for its North American Wheel Group. The closure is intended to reduce operating costs and increase facility utilization, the company said.