Automotive News Canada - April 2023 - 13

* APRIL 2023
13
For ABC Technologies, 'EV' could spell success
A new management team
was brought in last year to
reposition the company;
five EV programs from four
automakers represent 75
per cent of new contracts
By DAVID KENNEDY
T ORONTO BUREAU CHIEF
A NEW LEADERSHIP TEAM, NEW
operating model and several newly added
business units have put Canadian plastics
and lightweighting company ABC
Technologies Holdings
Inc. on a path to supporting
electric vehicle
production.
CEO Terry Campbell
said the Toronto-based
supplier has undergone
a " pretty significant
transformation "
since he took over last
August.
" We did quite a bit
of restructuring over
the past six, seven
months, and we're well
on our way to yield
the benefits that we
know are ahead, " he
told Automotive News
Canada.
This positive outlook
has not come without
some growing pains.
Among other steps
Campbell: " We
did quite a bit
of restructuring
over the past
six, seven
months, and
we're well on
our way to yield
the benefits
that we know
are ahead. "
SUPPLIED PHOTO
taken to revamp global operations, ABC's
board approved in October plans to shut
down a plant in Poland. The company followed
this up in February with the sale of
a 50-per-cent interest in four joint-venture
plants: one in Canada, one in Mexico and
two in the United States.
ABC also laid off about 150 corporate
staff during the first quarter of its 2023 fiscal
year - July through September 2022
- as it reorganized into three operating
units, down from six.
Founded in 1974, ABC now employs
about 2,500 workers in Canada across 13
plants. Globally, its footprint, including
joint ventures, extends to 44 plants and
about 10,500 workers. It is publicly traded,
though majority-owned by the U.S.based
private equity firm Apollo Global
Management Inc.
Campbell previously held leadership
roles at suppliers such as Woodbridge
Group, Johnson Controls Inc. and Magna
International Inc., and was brought in
by ABC with a handful of other outside
senior executives last year to refocus its
business.
EXPAND IS THE PLAN
The new team's reassessment of ABC's
footprint has been coupled with expansion.
On March 1, the company closed on a
US $165 million acquisition of Windsor
Mold Group Technologies in Windsor, Ont.
The company builds tooling for automakers
and parts suppliers at its nine plants
across North America.
The deal is a good strategic fit that will
expand ABC's product offering, build out
its injection-molding expertise and deepen
its relationship with two domestic
automakers and a Japan-based automaker
operating in North America, Campbell
said.
The combined business will also have a
larger network behind it, he said.
" Scale and stability are very important
to the OEMs. "
The purchase follows up on a pair of
CONTINUED FROM PREVIOUS PAGE
now, I'm probably more against
[profit-sharing] than I am for it, "
Penny said. " We get a signing
bonus, we get a yearly bonus;
they [U.S. workers] don't get
that. "
She also questions whether
the timing is right for profit-sharing
provisions as the
automotive industry undergoes
a transformation to electric
vehicles.
" I have to get more facts. "
MANY DEMANDS ON TABLE
Profit-sharing is one of several
issues that members working
at the Detroit Three highlighted
in their responses to the questionnaire,
said Dino Chiodo,
Unifor's director
of automotive.
2023
DETROIT
THREE
CONTRACT
NEGOTIATIONS
" So, there's
research work
that's being
done behind
the scenes and
until we have
2 Summer TOD & DVD Specials:
all that data, communicate it
to our membership and then
have meetings between the auto
council - which is Chrysler
[Stellantis], Ford and GM bargaining
committee members
- I'm not sure we're going to
come out expressing that we're
moving in a particular direction, "
Chiodo said.
The union, he said, is reviewing
the " many demands that
are out there ... and [doing] the
research and paperwork to validate
what our best approach is,
and then we'll go through our
process. "
Chiodo, who sits on the master
bargaining committee representing
automaker employees,
said workers at all Unifor plants
have had an
opportunity to
express their
demands as
the union prepares
for bargaining.
Union
officials
are
Chiodo:
Unifor is
researching
profit-sharing,
but " I'm not
sure we're
going to
come out
expressing
that we're
moving in
a particular
direction. "
FILE PHOTO
also seeking
improvements
in pensions,
benefits, working
conditions,
job security
and future
investment.
" I'm sure
there will be
some part of
a comparison
to show how
we've benefited
as compared
to what profit-sharing provides, "
Chiodo said. " We make
more hourly wage than what
they make in the United States,
so there's a lot of things that will
be considered. "
Stellantis spokeswoman
LouAnn Gosselin said it is too
early to comment on whether
the company would discuss profit-sharing
agreements during
bargaining.
Representatives for Ford and
GM did not respond to a request
for comment by Automotive
News Canada. - ANC
SC 13120
030123
JoeVerde.com/CA34
Call Now (888) 700-9454
Much of ABC's new business is gravitating
toward EVs. During its fiscal first quarter
of 2023, the company said it won business
on five EV programs from four automakers,
representing 75 per cent of ABC's
new contract wins over the period.
Campbell also sees battery cells as a
potential growth area for ABC.
" We think that's a market we can
serve, " he said. " We have advanced technologies,
and we can be very competitive
in that space. " - ANC
ABC Technologies Holdings closed
a plant in Poland, sold a 50-per-cent
interest in four joint-venture plants, laid
off about 150 workers and reorganized
six operating units into three. It also
made several acquisitions to expand its
product offerings. SUPPLIED PHOTO
major international acquisitions ABC completed
last year.
In March 2022, it closed deals to buy
Ohio-based dlhBOWLES Inc., for $255 million
and Germany-based plastic-components
maker Karl Etzel for $95 million.
The addition of dlhBOWLES, best
known for its fluid-management systems,
firms up the company's footing in that area
as well as several other segments, ABC
said in a statement at the time, while the
purchase of Karl Etzel was geared toward
expanding in Europe.
NEW BIZ FROM EV TRANSITION
One of dlhBOWLES' other areas of
expertise, Campbell said, is thermal-management
systems for batteries. That provides
one avenue for growth as ABC and
the wider automotive industry transition
to EVs.
ABC'S EVOLVING
OWNERSHIP
* July 2016: ABC Technologies
Holdings Inc. is acquired by the
private equity company Cerberus
Capital Management.
* February 2021: Cerberus launches
a public offering, listing ABC on the
Toronto Stock Exchange while maintaining
partial ownership.
* June 2021: The private equity firm
Apollo Global Management Inc. buys
a 51-per-cent stake in ABC. Cerberus
remains a partial owner.
* November 2021: The asset management
company Oaktree Capital
Management buys Cerberus' remaining
stake in ABC.
* Currently: A portion of ABC's shares
remain publicly traded, though Apollo
owns 65.1 per cent of the company
and Oaktree owns 28.3 per cent.
Joe Verde Sales & Management Training, Inc.
20+ Sales Courses Online
Joe Verde Training Network®
* JVTN®
Joe Verde
Sean Gardner
Doug Christiansen
Are any of your salespeople struggling with...
Then call us!
* Price * Payments * Trades * Down * Interest Rates
* Handling Objections * Closing * Negotiating
Call Now:
We have 38 years of experience
training salespeople how to sell more cars!
https://www.joeverde.com/Video-Joe-Verde-Automotive-News-4.html?sc=13120

Automotive News Canada - April 2023

Table of Contents for the Digital Edition of Automotive News Canada - April 2023

Automotive News Canada - April 2023 - Intro
Automotive News Canada - April 2023 - CT1
Automotive News Canada - April 2023 - CT2
Automotive News Canada - April 2023 - 1
Automotive News Canada - April 2023 - 2
Automotive News Canada - April 2023 - 3
Automotive News Canada - April 2023 - 4
Automotive News Canada - April 2023 - 5
Automotive News Canada - April 2023 - 6
Automotive News Canada - April 2023 - 7
Automotive News Canada - April 2023 - 8
Automotive News Canada - April 2023 - 9
Automotive News Canada - April 2023 - 10
Automotive News Canada - April 2023 - 11
Automotive News Canada - April 2023 - 12
Automotive News Canada - April 2023 - 13
Automotive News Canada - April 2023 - 14
Automotive News Canada - April 2023 - 15
Automotive News Canada - April 2023 - 16
Automotive News Canada - April 2023 - 17
Automotive News Canada - April 2023 - 18
Automotive News Canada - April 2023 - 19
Automotive News Canada - April 2023 - 20
Automotive News Canada - April 2023 - 21
Automotive News Canada - April 2023 - 22
Automotive News Canada - April 2023 - 23
Automotive News Canada - April 2023 - 24
Automotive News Canada - April 2023 - 25
Automotive News Canada - April 2023 - 26
Automotive News Canada - April 2023 - 27
Automotive News Canada - April 2023 - 28
Automotive News Canada - April 2023 - 29
Automotive News Canada - April 2023 - 30
Automotive News Canada - April 2023 - 31
Automotive News Canada - April 2023 - 32
Automotive News Canada - April 2023 - 33
Automotive News Canada - April 2023 - 34
https://www.nxtbook.com/nxtbooks/crain/canada_202402_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202401_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202312_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202311_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202310_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202309_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202308_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202307_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202306_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202305_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202304_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202303_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202302_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202301_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202212_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202211_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202210_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202209_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202208_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202207_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202206_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202205_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202204_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202203_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202202_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202201_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202112_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202111_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202110_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202109_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202108_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202107_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202106_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202105_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202104_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202103_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202102_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202101_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202012_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202011_ifm
https://www.nxtbook.com/nxtbooks/crain/canada_202011_acg
https://www.nxtbook.com/nxtbooks/crain/canada_202011_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202010_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202009_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202008_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202007_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202006_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202005_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202004_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202003_v2
https://www.nxtbook.com/nxtbooks/crain/canada_202001_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201912_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201911_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201910_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201909_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201907_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201906_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201904_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201903_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201902_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201901_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201812_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201811_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201810_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201809_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201808_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201807_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201806_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201805_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201804_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201803_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201802_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201801_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201712_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201710_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201709_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201708_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201707_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201706_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201705_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201704_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201701_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201612_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201611_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201610_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201609_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201608_v2
https://www.nxtbook.com/nxtbooks/crain/canada_201607_v2
https://www.nxtbookmedia.com