OESA - Supplier Group President: 'Now is the Time for Increased Collaboration Between Suppliers and Automakers'

TRAVERSE CITY, Mich., Aug. 4, 2004 -- In an address at the 2004 Management Briefing Seminars today, Original Equipment Supplier Association (OESA) President Neil De Koker stressed that North American OEMs and suppliers must find a way to have meaningful and productive conversations about tough industry issues. De Koker cited the results of the recent Customer Supplier Interface study conducted by McKinsey & Company, which found that improving the OEM-supplier interface could save the North American auto industry $500 - 600 per vehicle. The research examined 43 component programs across six vehicle systems and concluded that both suppliers and vehicle manufacturers could realize improvement.

"The important take-away from the study is that OEMs and suppliers can all improve by working together in a collaborative manner to reduce inefficiencies," De Koker said. "The research suggests that even the best overall performers can improve on individual dimensions." De Koker continued, "Improving product specifications, designs and demand forecasting can eliminate tremendous waste and drive profit straight to the bottom line -- for both suppliers and carmakers."

During his remarks, De Koker asked executives from the vehicle manufacturers to participate in a detailed briefing on the project findings, and encouraged component suppliers to attend an upcoming OESA meeting to learn where best practices can be applied for individual companies. Executives from automotive component companies are invited to a meeting at The Townsend Hotel in Birmingham, Mich. on September 23 at 7:30 a.m. To register visit http://www.oesa.org/ .

The Original Equipment Suppliers Association (OESA), a 353-member trade association, confronts issues that reflect the collective thoughts, problems and challenges of automotive suppliers. OESA member companies represent more than 60 percent of North America's automotive supplier sales. OESA provides a forum for suppliers to address issues of common interest and serves as a resource and a voice for the industry.