IAC Addresses Challenges, Opportunities Facing Vehicle Interiors Industry at SPE Automotive TPO Conference

DEARBORN, Mich., Oct. 5, 2009 -- In the face of mounting industry, regulatory and economic challenges, vehicle interiors suppliers and automakers are responding to the call for new and innovative interior solutions. This was the subject of a keynote address today opening SPE Detroit Section's annual Automotive TPO Global Conference held in Metro Detroit. Maurice Sessel, vice president product engineering for International Automotive Components (IAC) launched the conference with an optimistic keynote presentation on "The Interior Challenge." Sessel empathized with attendees and shared real-world examples of how IAC has turned many of these challenges into business opportunities.

"This past year has been challenging for the automotive industry -- it's been a year during which numerous events have compounded to dramatically impact not only our customers, but the products and materials suppliers make," said Sessel, who has worked in the automotive industry for more than 25 years. "At IAC, we've used these variables as outlets of opportunity, rather than recoiling from them."

During Sessel's presentation, he addressed three key demands that IAC believes are shaping vehicle interiors today and in the future. The first demand is the unprecedented economic and industry times that the automotive industry has been facing. The lowest production volume in decades, reduced cash flow and increased oil prices continue to present challenges for many suppliers at an accelerated rate.

The second demand is consumer trends, inclusive of the increased demand for sustainable and natural materials, transition to smaller, more fuel efficient vehicles, improved craftsmanship, personalization and haptics. Lastly, the tough government mandates for increased fuel efficiency and increased safety continues to put automakers and their suppliers under tremendous pressure to find ways to reduce vehicle mass, while improving crash performance. This, combined with greater consumer expectations, means OEMs and suppliers must find material and engineering solutions to satisfy often conflicting needs.

"Overcoming these variables is a progressive challenge for interiors suppliers because the demands are continually biasing the balance," said Sessel. "IAC is using out-of-the-box approaches to offset these biases and attempt to level the playing field with advancements in materials, engineering and design, capital management and vertical integration."

Using thermoplastic olefins (TPO), IAC has overcome material challenges to improve safety, cost, weight and overall consumer satisfaction. In addition to TPO advancements, IAC is using natural fibers (e.g. jute, flax, kenaf, sisal and hemp) in its components to provide structural and process advantages, as well as weight reduction.

In engineering and design, IAC uses a systems approach to vehicle interior design, rather than a component-focused approach, which allows weight and cost reduction without degrading the acoustic performance. Rethinking product design also enhances existing processes and capital to meet changing customer requirements.

IAC's "thinking outside-of-the-box mentality" was put to use in a two-step headliner bracket solution featured in the 2009 Toyota Venza, which required a larger opening and challenged headliner capabilities. Additionally, IAC has established more efficient common development processes, which included simplifying complexity and manufacturing process.

"Tough economic times have limited the cash available for investment," said Sessel. "Opportunities for design alternatives, tooling advancements, adapting equipment to meet customer needs, developing and enhancing materials compatible with current capital, and vertical integration can be considered to help organizations survive and thrive in this economy," he said.

ABOUT INTERNATIONAL AUTOMOTIVE COMPONENTS GROUP

International Automotive Components Group is a leading global supplier of automotive components and systems, including interior and exterior trim and structural and functional applications. IAC operates manufacturing facilities in 17 countries with more than 24,000 employees and 2008 global annual sales in excess of $4.0 billion. For more information, visit www.iacgroup.com.