Automotive News - May 12, 2008 - (Page 24A)

MAY 12, 2008 • 24A Supplier IAC consolidates operations and know-how Rhoda Miel rmiel@crain.com HURON, Ohio — International Automotive Components Group North America’s plant here helped IAC zoom from concept to full-bore production in just two years. How? Experience. The Huron factory’s leadership, work force and the plant itself represent decades of manufacturing knowhow. For example: Chuck Raymont, the plant manager, has worked for several companies, including Lear Corp. and Chrysler. Steve Sauder, the technical services manager, has spent 22 years at auto suppliers from small headliner compression molders to major suppliers such as Lear and the former Collins & Aikman Corp. Preston Lopetrone, the operations manager, has put in more than 20 years with international companies. And the plant had been part of Lear and before that Automotive Industries Inc. gives it more time to allow those strategies to succeed. At Huron, the company is dealing with the short-term effects of the strike at American Axle & Manufacturing Holdings Inc., which has halted production at some auto assembly plants. Some Huron workers are laid off because the assembly plants aren’t building vehicles. At the same time, IAC is preparing for major vehicle launches this year. “Launch clocks” show the days and hours remaining until full production, and the company is making sure the plant and its employees are ready. Says Sauder, the technical services manager: “We’ve moved presses around. We’ve worked to make sure the material flow is in line so everyone can see what we need at a glance.” A robotic assembly module the company added next to two 24,000ton presses inserts 47 clips on each see IAC, Page 24B Workers assemble interior parts at IAC North America’s plant in Huron, Ohio. As consolidation and restructuring remains steady in the automotive industry, strategically managing the M&A process from start to finish is integral to creating and sustaining value. Learn how our transaction services professionals can help guide you through every step of the process from identifying strategic partners to supporting your efforts after the deal is complete. Download our latest edition of Automotive M&A Insights “Drive Value”, and learn more about what to expect at www.pwc.com/auto No startup “The biggest misnomer about IAC out there is that we’re a startup company,” says James Keppler, vice president of North American operations for the suburban Detroit company. “We’re not. We’re a well-established operation with more than 100 years of auto heritage between our parts.” In 2006, New York financier Wilbur Ross began bringing together parts of distressed suppliers of automotive interior parts under one roof. He wanted to create a company that could combine operational strengths with a financial group’s fiscal discipline. In August 2007, the biggest parts came together. Lear, of suburban Detroit, rolled its plastics-intensive interior group into IAC in exchange for a share in the new company, and IAC picked up parts of bankrupt Collins & Aikman. “IAC is coming in and applying a new dynamic to the industry,” says Laurie Harbour-Felax, a managing director of consulting group Stout Risius Ross Inc. “They’re private equity-run but with a solid manufacturing base.” drive value.* Private-equity payoff Private equity has gotten involved in the auto supply business before, with mixed results. Ross comes with a pedigree that includes reinvigoration of the U.S. steel industry in the 1990s. That background has given IAC a different sheen than many of its competitors. Keppler says the company has a long-term outlook that gives it an edge in a tough economy. “I know that financially we don’t have to make short-term decisions that other companies have to,” he says. The company also is banking on former Lear executives’ history in past acquisitions within Lear, which executives say shows that the company and its leaders know how to bring multiple firms together under one corporate banner. Taken together, the history and long-term outlook give IAC the opportunity to invest in “best practices” strategies at its plants that will pay off in the long run, while its lower debt *connectedthinking © 2008 PricewaterhouseCoopers LLP All rights reserved. “PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP or, as the context requires, the PricewaterhouseCoopers . global network or other member firms of the network, each of which is a separate and independent legal entity. *connectedthinking is a trademark of PricewaterhouseCoopers LLP (US). http://www.pwc.com/auto http://www.pwc.com/auto

Table of Contents Feed for the Digital Edition of Automotive News - May 12, 2008

Automotive News - May 12, 2008 Factories Punish Rogue Exporters U.S. Firms Sink on Supplier List Clarke: Buyers Don't Know Saturn Brand Greer Takes Top Sales Post At Automotive News Sonic Sues Mercedes-Benz Fiat Ponders Mexico Plant Ford: Wait on Kerkorian Going Green: It's No Longer An Option LaSorda Reaffirms Axle Plant Plan Chrysler: Jeep Seats From India Make Sense Toyota Exec: Maybe It's Time to Raise a Prius Hybrid Gamily Chevy Traverse, Ford Flex Face Off This Year As U.S. Waits, Chrysler Sends Cars Made in China to Mexico Nissan Plans Wide Range of Electric Vehicles Honda: Sales are Flat, But Market Share Soars Kia to Bring Small Car to U.S. Changing Models Yearly Created Object of Desire Fla. Law: Automakers Can't Force Dealer Upgrades Partnership Seeks "Premier" Stores GM Payback for Axle Bailout: Lower Prices, Innovation UAW Vote May Be Nearing a Honda's Alabama Plant Suddenly, Small Was Big in April GM's Big Problem: Too Many Brands Irvin Was Smart, Friendly, Helpful Dealers Are Tuned in to Absorption Figures Dealers Should Sell Alternative Fuels Museum Funding is Bold Watch Your Car-Truck Inventory In Tough Times Dealers Must Coddle Customers Ford's Challenge: Long-term Reliability Nissan N.A. Unit Gets New Head of Communications Maserati North America Taps Luxury-Segment Veteran Eulberg as CEO Former GM PR Chief Joins BMW Nissan: N.A. Off the Hot Seat VW Uses Free Service to Improve Sales, Image Shops Cited For Labor Violations Survey: Consumers Like Indie Shops Report Cites Trends in Repair Costs Aftermarket Center Opens at Mich. College Dealers Mich. Stores Merge Under Project Genesis VW is Europe's Top Seller Honda Exec Red-Flags Detroit 3 Aid Court: Auction Not Liable for Truck Defect Retail Personnel Canada Sales Post 3.8 Percent Gain in April Chrysler Asks Dealers to Donate to Museum Obituaries Complaint Will Delay UAW Revote at JCI Plant Supplier Deals are Smaller, Fewer GM's Truck Inventories Up Despite Strike Profits Up at Superior Industries Autobytel Post $2 MIllion Loss eBay Motors Courts Automakers Ford Touts 6-Speed Transmissions Toyota Raises Some Prices No Pickup for Hyundai, Kia April Output Drops 7.8 Percent Trustee Must Untangle the Chamco Debacle Scientists Say Chysler's Gas Plan is Just a Dodge From Cookie Sales to Auto Dough? In Europe, Small SUVs Soar; GM's Snore Daimler Seems to Be Betting On Peace in Iraq When Soccer Booms, VW Will Be Ready Molder AMP is a Case Study in Auto-Suppliers' Travail Spinoff Dismatles ArvinMeritor Ambitions GKN Driveline to Grow in China Kia Supplier Builds Ga. Plant BorgWarner Adds Turbo Capacity Supplier Personnel Supplier IAC Consolidates Operations and Know-How Mann + Hummel Sees Growth

Automotive News - May 12, 2008

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