Automotive News - October 27, 2008 - (Page 10) 10 • OCTOBER 27, 2008 After Detroit 3 take back design, supplier sitting pretty David Barkholz dbarkholz@crain.com Michael Chupa was happy when the Detroit 3 changed direction three years ago and moved all of their interior design work back in-house. At the time, the automakers said they did so — after previously assigning design to interior suppliers — to regain control over the cost and quality of their interiors. The move gave CRH North America Inc., a maker of automotive seat frames, an opportunity to sell directly to the automakers, said Chupa, CEO of the Clanton, Ala., company. That turned out to be a bonanza — and a safeguard against today’s weak market. Instead of getting dribs and drabs of work from the Tier 1 seat makers, CRH North America has more than doubled annual sales as the Detroit 3 have specified CRH frames on seats assembled by Johnson Controls Inc. and Lear Corp. In 2008, CRH expects to generate sales of $200 million in North America. That compares with $90 million when the automakers changed their seat-buying pattern in 2006. With falling North American vehicle sales, CRH has lowered its sales projection for 2009 to $175 million. CRH, a unit of a privately held Ger- man company, was set up to supply parts for German carmakers in North America. It was looking to grow beyond its traditional luxury-vehicle customer base when the Detroit 3’s policy change opened the door. Chupa said CRH would be hurting if the carmakers hadn’t taken back from suppliers the responsibility for designing and integrating interiors. Lear, Johnson Controls and others have taken every opportunity to use their own seat frames rather than contract with subsuppliers for the work. With North American seat sales declining in line with the vehicle market, seat makers are trying to compensate by providing more of the content on the fewer seats they sell, Chupa said. Lear and Johnson Controls confirm that they are working to offer as much content on seats as possible, including structures, foam, electronics and even coverings. Two years ago, for example, Johnson Controls reopened frame plants in Grand Rapids and Holland, Mich., that had been mothballed. At the time, the company was buying more seat structures from suppliers. But those plants now are running at almost full capacity and providing frames for multiple customers, said spokeswoman Debra Lacey. Lear has developed a common seat structure for rear seats to go along with an adjustable frame for front seats, said Lear spokeswoman Andrea Puchalsky. Lear now is selling the modular seat structure on a variety of Chrysler LLC vehicles, she said. The cost savings from being able to use a common structure is attractive to customers, she said. Chupa says CRH North America is able to compete as long as he has a fair shot at talking with the automaker customer. Says Chupa: “We’re getting just as much consideration as the Tier 1s are.”c Red Flag Compliance. Germany’s Preh supplies F-150 ventilation part DETROIT — German supplier Preh Inc. will supply heating, ventilation and air conditioning control heads for the 2009 Ford F150 and F-150 SuperCrew pickups. It is Preh’s first worldwide Ford contract. The 500,000 control heads will come from Preh’s plant in Nuevo Leon, Mexico, and go to Ford plants in suburban Detroit and Kansas City, Mo. Preh, of Bad Neustadt, Germany, supplies automotive driver control systems, sensors and electronic controls. Preh’s U.S. customer service center is in suburban Detroit. Made Easy. Buehler is Volt supplier MORRISVILLE, N.C. — Buehler Motor Inc. said it will supply General Motors with custom 12-watt and 50watt auxiliary water pumps for the Chevrolet Volt and GM hybrid vehicles. The multiyear contract is worth more than $50 million. Buehler Motor Inc., of Morrisville, provides automakers and Tier 1 suppliers customized mechatronic drive technology. It is a unit of Buehler Motor GmbH, of Germany. Will you be ready by November 1? The compliance deadline for the Red Flags Rule is fast approaching. CREDCO’s Red Flag Solution offers a simple, comprehensive offering of products and reporting tools to help your dealership get compliant. Freescale: New infotainment chip Identity verification OFAC screening Credit reporting services Comprehensive reporting Get Your FREE Red Flag Guide!* CREDCOservices.com/RedFlag CALL TODAY! 866.491.4256 *Free copy of “A Dealer's Guide to the Red Flags Rule” by Michael Benoit of Hudson Cook. Limit one per dealership. Offer valid for new Red Flag Solution customers only. Must sign up for complete Red Flag Solution (credit reporting services, OFAC screening and ID verification) to qualify. Offer good while supplies last. Call for details. DETROIT — Freescale Semiconductor Inc. has launched its i.MX35 family of multimedia application processors, designed to be central intelligence units for automotive infotainment systems. The i.MX35 series builds on the performance of Freescale’s automotive-grade i.MX31 processor, which powers Ford’s Sync in-vehicle communications and entertainment system. The new chips allow drivers to use simple voice commands to choose songs from their portable media players’ music collections, retrieve text messages from their cell phones or get directions. Freescale Semiconductor, of Austin, Texas, makes semiconductors, microcontrollers and sensor products. It was spun off from Motorola Inc. in 2006. http://www.CREDCOservices.com/RedFlag http://www.CREDCOservices.com/RedFlag
Table of Contents Feed for the Digital Edition of Automotive News - October 27, 2008 Chrysler dealers under GM? States would rule Survey: Worried dealers flee GMAC Va. dealers turn to local credit unions Anxiety over Chrysler: Deal or no deal? Ford, GM execs join panels looking at eco-friendly options Big pickups, SUVs gain share Chrysler will cut 4,300 salaried jobs by year end BMW seeks joint vehicle electronics effort Runkle: Give tiny suppliers a chance VW goal: 80% N.A. content for Tenn. plant April Wortham China's BYD plans U.S. hybrids Lucky Icahn lost Lear Mahindra's U.S. launch to get $60 million ad drive Toyota may renew no-interest loans Hesterberg, Thomson will address congress Desperate industry begs feds for help Hyundai dealers want ads to pitch favorable loans Toyota, GM top global r&d spending After Detroit 3 take back design, supplier sitting pretty Germany's Preh supplies F-150 ventilation part Buehler is Volt supplier Freescale: New infotainment chip Are they too big to fail? A goal for GM: Buy back full control of GMAC Tax credit would move domestic cars GMAC loan bonus is a bad idea Take a good look: Toyota is losing its halo What flexibility is and what it isn't Toshiba joins battery battle Personnel Hyundai slows Ala. output of Sonata, Santa Fe Picture this LaNeve: GM marketing budget faces '09 hit Hyundai counts on luxury, hybrid hopes Keogh: Audi belongs with top luxury brands Dealers Court overturns class-action status in Blue Oval suit 2 major lemon-law lawyers lose right to practice in Md. Auctions offer more online for just-in-time dealers Used-truck prices higher in September Lack of used Minis limits certified program Wood trim maker expects to avoid worst of woes VW: U.S. may get Scirocco after all Ford's new F-150 is built for jobs, not jaunts Think of it as GPS for tools Feds look at China-made valves on Ford tires Shareholder value tumbles in 3rd quarter Shareholder value tumbles in 3rd quarter Ford truck marketing exec: Hybrid pickup 'publicity stunt' Survey: Ford Motor reliability improves Chrysler heir: Get back to basics Farley has bright idea to boost auction action Kerkorian speeds away from autos Names familiar? NADA leadership is a family affair Mitsubishi bucks trend on profits New trade debate in the works? Beware the 'vital' deal Automotive News - October 27, 2008 Automotive News - October 27, 2008 - (Page Intro) Automotive News - October 27, 2008 - (Page Bellyband1) Automotive News - October 27, 2008 - (Page Bellyband2) Automotive News - October 27, 2008 - Va. dealers turn to local credit unions (Page 1) Automotive News - October 27, 2008 - Va. dealers turn to local credit unions (Page 2) Automotive News - October 27, 2008 - Chrysler will cut 4,300 salaried jobs by year end (Page 3) Automotive News - October 27, 2008 - VW goal: 80% N.A. content for Tenn. plant April Wortham (Page 4) Automotive News - October 27, 2008 - VW goal: 80% N.A. content for Tenn. plant April Wortham (Page 5) Automotive News - October 27, 2008 - Hesterberg, Thomson will address congress (Page 6) Automotive News - October 27, 2008 - Hesterberg, Thomson will address congress (Page 7) Automotive News - October 27, 2008 - Toyota, GM top global r&d spending (Page 8) Automotive News - October 27, 2008 - Toyota, GM top global r&d spending (Page 9) Automotive News - October 27, 2008 - Freescale: New infotainment chip (Page 10) Automotive News - October 27, 2008 - Freescale: New infotainment chip (Page 11) Automotive News - October 27, 2008 - GMAC loan bonus is a bad idea (Page 12) Automotive News - October 27, 2008 - GMAC loan bonus is a bad idea (Page 13) Automotive News - October 27, 2008 - What flexibility is and what it isn't (Page 14) Automotive News - October 27, 2008 - What flexibility is and what it isn't (Page 15) Automotive News - October 27, 2008 - Hyundai slows Ala. output of Sonata, Santa Fe (Page 16) Automotive News - October 27, 2008 - Picture this (Page 17) Automotive News - October 27, 2008 - Picture this (Page 18) Automotive News - October 27, 2008 - Picture this (Page 19) Automotive News - October 27, 2008 - LaNeve: GM marketing budget faces '09 hit (Page 20) Automotive News - October 27, 2008 - Hyundai counts on luxury, hybrid hopes (Page 21) Automotive News - October 27, 2008 - Keogh: Audi belongs with top luxury brands (Page 22) Automotive News - October 27, 2008 - Keogh: Audi belongs with top luxury brands (Page 23) Automotive News - October 27, 2008 - Dealers (Page 24) Automotive News - October 27, 2008 - 2 major lemon-law lawyers lose right to practice in Md. (Page 25) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 26) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 27) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 28) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 29) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 30) Automotive News - October 27, 2008 - VW: U.S. may get Scirocco after all (Page 31) Automotive News - October 27, 2008 - Feds look at China-made valves on Ford tires (Page 32) Automotive News - October 27, 2008 - Ford truck marketing exec: Hybrid pickup 'publicity stunt' (Page 33) Automotive News - October 27, 2008 - Ford truck marketing exec: Hybrid pickup 'publicity stunt' (Page 34) Automotive News - October 27, 2008 - Survey: Ford Motor reliability improves (Page 35) Automotive News - October 27, 2008 - Survey: Ford Motor reliability improves (Page 36) Automotive News - October 27, 2008 - Survey: Ford Motor reliability improves (Page 37) Automotive News - October 27, 2008 - Beware the 'vital' deal (Page 38) Automotive News - October 27, 2008 - Beware the 'vital' deal (Page 39) Automotive News - October 27, 2008 - Beware the 'vital' deal (Page 40)
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