GM Buys Auto Mirrors from Ichikoh Industries

09/25/96

Nikkei English News reported that General Motors has placed a major order for auto mirrors with Ichikoh Industries Ltd. The order will double the Ichikoh's annual U.S. sales to about $72.86 million dollars by fiscal 1998.

The Japanese automobile lamp and mirror maker signed an agreement to supply mirrors for 280,000 Pontiacs starting at the end of 1997. Ichikoh is pushing comparable deals with Detroit's other Big Three carmakers, and expects production and shipping volume at its U.S. subsidiary to rise sharply in fiscal 1998. Over 60% of Ichikoh's projected sales revenue increase for fiscal 1998 is expected to come from the Big Three.

Ichikoh's U.S. subsidiary, Ichikoh Manufacturing Inc., recently fired 180 of its 450 employees in a downsizing move. The company will start hiring employees again soon, although it will keep staff below peak levels. The firm does not currently plan to increase capital spending.

Paul Dever -- The Auto Channel