Auto Supplier Profits Dwindle
Although new car and truck sales rose more than 2 percent during the first 10 months of 2004, many of the companies that supply parts to big automakers have little to celebrate. Their profits are shrinking as raw-material costs rise and production falls at General Motors Corp. and Ford Motor Co. Already the nation’s two largest suppliers, Delphi Corp. and Visteon Corp., which had combined sales of $45.7 billion in 2003, have warned of lower-than-anticipated earnings this year. They cite higher materials expenses, particularly for steel, and plans by top U.S. automakers GM and Ford to turn out fewer vehicles.
Automotive Lift Institute Leader to Retire
E.K. “Chic” Fox has spent a lifetime helping small manufacturing trade groups. At a recent meeting, Fox announced he plans to retire from his post as president and CEO of the Automotive Lift Institute (ALI), a relationship that began in 1962.
Littelfuse Names Gordon Hunter Chairman, President and CEO
Littelfuse, a provider of circuit protection products, has announced that Gordon Hunter will take on the position of chairman, president and CEO, effective January 1, 2005. Hunter will succeed Howard Witt, who plans to retire on December 31. Witt, who has served Littelfuse for 25 years, will continue as a director as well as a consultant to the company.
Case Study: The DNA Building-Block Approach in Action
NMS Communications, a mid-sized network equipment manufacturer, employed the Thomas Group DNA building-block approach to reengineer the supply chain for its platform business, which accounts for 80 percent of the company’s revenue. NMS realized that to maintain a competitive edge, it needed to create a high-speed, demand-driven supply chain. But developing such a capability in an environment where forecasts traditionally ruled was a challenge.
Charting Your Supply Chain DNA — The DNA Building Blocks
What is the genetic structure of a successful supply chain? This week we want to dig a little deeper into the major elements that make a supply chain competitive.
GM’s Hogan Defects to Magna
Mark Hogan, the head of advanced vehicle development at General Motors Corp., is leaving at the end of the month to become president of Canadian auto parts giant Magna International Inc., according to people familiar with the matter.
Automakers Shift Focus to Health Care Crisis
An aging former auto industry worker underscores a key challenge facing the U.S. automotive industry and all of manufacturing in the years to come. “Our oldest retiree is 109 years old,” said Jerry Elson, vice president at General Motors. The man, who retired in 1958, is the oldest of 1.1 million people — including 500,000 retirees — for whom GM spent more than $4.8 billion on health care last year. That’s more than the largest U.S. automaker spends on steel, even with steel prices up 30 percent to 60 percent this year.
Charting Your Supply Chain DNA
How do you develop an integrated operating system that can simultaneously improve working capital, enhance revenue and margin, and improve order-to-delivery speed and predictability? One innovative approach is to select and configure a unique blend of capabilities and strategies, or “supply chain DNA,” across the dimensions of process, information, cash and organization. Over the coming weeks we’ll present a multi-part roadmap to executing that approach-and in the process, achieving all three benefits at once.
Hoon Chung Named President and CEO of DST
Former Activant Automotive Group executive Hoon Chung has been named president and CEO of DST Inc. Company founder Ray Stover was named chairman and vice president of business development. Stover said the entire DST family is energized by the appointment of Chung as president and CEO. “Hoon exemplifies the growing trend in the aftermarket to recruit the best of the best in supply chain management expertise to chart the course for an industry in vital need of next generation solutions,” said Stover.
North American Auto R&D Center to Set Up in China
North American market leader in automotive quality inspection, the PSA Group of Companies, has signed an agreement with two local firms to set up a research center in this southern boomtown. The Canadian firm’s major business in China is currently in sourcing auto parts for its North American and Japanese clients, including General Motors, Ford, DaimlerChrysler and Yazaki.