Global Automotive Alliance Debuts at Michigan Minority Trade Fair
25 May 1999
Global Automotive Alliance Debuts at Michigan Minority Trade Fair
DETROIT, May 24 -- Global Automotive Alliance L.L.C., will
make its first appearance at the 1999 Michigan Minority Business Development
Council (MMBDC) Trade Fair which is being held at Cobo Hall in Detroit, MI,
May 25-26, 1999.
The newly formed company will work on behalf of six joint-venture minority
companies currently doing business with automotive manufacturers. The goal is
to increase brand awareness and standardize business processes for faster,
more cost effective and convenient service for their customers.
Companies participating in the umbrella organization are: Regal Plastics,
VITEC, Camrose Technologies, Group Antolin-Wayne, ARD Logistics and
Commonwealth Regal Industries
All members of the Alliance are independent companies specializing in
supplying components, modular systems, parts and services for the
manufacturing of today's very sophisticated automotive vehicles.
Total global revenues for the member companies in 1999 are projected at
$160 million with a significant increase projected at $300 million for the
year 2000.
According to William F. Pickard, chairman and chief executive officer of
Global Automotive Alliance, "The face of the automotive marketplace is rapidly
changing, presenting new challenges as well as unique opportunities for
minority automotive businesses. System integration to support lean, common
global platforms is critical for all automotive suppliers."
Pickard went on to say, "We are creating a new millennium business to not
only responsively meet but to exceed the stringent requirements and exacting
customer specifications for just-in-time delivery."
He noted, "This is a tall order for each company to undertake on their
own. Pulling our resources together and presenting one face, 'one-stop-
shopping' if you will, makes good business sense in serving the needs of our
customers."
The major automotive companies have posted record vehicle sales for this
year. A good car year means increased purchases from suppliers, including
minority suppliers to meet the manufacturing needs based on consumer
purchases.
Harold R. Kutner, General Motors vice president and group executive
worldwide purchasing and NAO production control and logistics, has said, "The
implementation of modular manufacturing systems on a global basis has
motivated suppliers to consolidate and partner in joint ventures. This trend
has led to better sources, services and supply lines for our production
needs."
As the world's automotive manufacturers have forged unique mergers and
acquisitions that focus on global platforms, their primary supplier partners
have become even more integrated in their manufacturing strategies.
To keep the pace, primary suppliers often seek out specialty companies for
possible joint-venture relationships. Within recent years, more and more
minority companies have had the opportunity to participate in these ventures.
As a result the new partners are enhancing their knowledge base and improving
profitability while simultaneously leveraging the expertise and capital
resources of their primary partners.
The relationships have proven beneficial for all parties concerned. Most
important, it enables the automotive manufacturer to focus on core business
for greater customer satisfaction.
"There's a domino effect here," says Pickard. "Joint-ventures open the
door allowing established businesses to provide mentoring for new minority
companies to assist in their growth and development. More important, it
encourages and empowers many more minorities within the Detroit metropolitan
area to become independent business owners."
Pickard concluded, "Our individual company members combine to create a
minority supplier force for 21st century automotive manufacturing companies."
During the past several years, over $5 billion of contract business has
been awarded to minority automotive suppliers in Michigan. VITEC, a member
company of Global Automotive Alliance, is an outstanding example, being
awarded a $680 million contract for manufacturing plastic fuel tanks for
General Motors Corporation. This five year contract has many positive
benefits including bringing additional revenue to the City of Detroit and
providing numerous job opportunities in the city.
VITEC as well as several other Michigan companies have established new
businesses and manufacturing plants within the city of Detroit that are the
direct result of contracts awarded by automotive manufacturers. The number of
minority contracts is certain to grow, commensurate with the continued market
demand for automotive vehicles.
Visit the Global Automotive Alliance's booth #315 at the MMBDC Trade Fair
in Cobo Hall.