General Motors Awards Emery $15-Million Contract for Argentina Logistics Operation
10 December 1997
General Motors Awards Emery $15-Million Contract for Argentina Logistics OperationREDWOOD CITY, Calif., Dec. 10 -- General Motors de Argentina has awarded Emery Worldwide a $15-million, three-year contract to handle the storage and distribution of GM automotive parts to dealers in Argentina and the MERCOSUR countries. In the first phase of the project, Emery's Global Logistics unit is operating a 50,000-square-foot facility in General Rodriguez, a suburb of Buenos Aires, with the option to expand to 200,000 square feet by the end of the three-year agreement. In addition to storing aftermarket parts to support GM dealers, Emery will provide consistent parts delivery with transit times ranging from 24-72 hours. GM also operates an 8,000-square-foot office and dealer training center on site. The new parts distribution center was developed to support GM's "Corsa" models, which are produced at the company's manufacturing plant in Rosario. According to Basil Drossos, president of General Motors de Argentina, the company is considering doubling capacity at the Rosario plant from 84,000 to 160,000 units in the next four years, in addition to introducing new models. "This is Emery's first operation of this kind in Latin America and the sixth such partnership between GM and Emery around the world," said Ronald Young, Emery's vice president of Latin America operations. "This expanding partnership has enabled us to help GM streamline its global supply and distribution channels while gaining greater control of its multiple supply chains by working with a single transportation and logistics provider. We look forward to supporting General Motors' needs as the company continues to grow in the Latin American marketplace." General Rodriguez was chosen as the site for the distribution facility because of its proximity to the majority of GM automotive dealers in Argentina, local parts suppliers and the port of Buenos Aries where imported parts arrive. Staffed by 23 employees, the facility is a state-of-the-art warehouse, providing 24-hour security and surveillance, fire protection, and specialized material handling equipment. Emery Worldwide is a $2.2-billion company providing air and ocean freight transportation, logistics management, customs brokerage and expedited services to manufacturing, industrial, retail and government customers. Based in Redwood City, Calif., Emery serves more than 200,000 customers in 206 countries through a network of 590 service centers and agent locations around the world. The company specializes in business-to-business moves for heavy-weight shipments, five pounds and above. Emery Worldwide is a subsidiary of CNF Transportation, Inc. , a $4.2-billion diversified transportation company based in Palo Alto, Calif. For other Emery Worldwide news, visit the Emery website ( http://www.emeryworld.com ). SOURCE Emery Worldwide