Freudenberg-NOK Creates Automotive Components Business Unit
21 July 1999
Freudenberg-NOK Creates Automotive Components Business Unit, Appoints Executive Team
PLYMOUTH, Mich., July 20 -- After a decade of rocketing
growth within its core businesses (1992 at $200 million, 1998 at $720 million
and 1999 at a rate of $900 million), Freudenberg-NOK is setting up a top-level
automotive executive team.
"The company's senior management team had a diverse industry focus," said
Joseph C. Day, president and CEO, Freudenberg-NOK. "Now, through the
formation of the Automotive Components Business, we will have a CEO, a
president and COO, and CFO focusing solely and fully on the automotive
industry."
Globally, the Freudenberg and NOK Group recently completed its 12,000th
kaizen project and has moved from No. 29 in 1997 to 20 in 1998 on the world
list of automotive supply companies.
According to Day, over the past 10 years labor productivity at
Freudenberg-NOK has improved 250 percent, factory space utilization is up 200
percent and cost of quality has dropped 75 percent. The company now produces
2.0 billion components per year with reject rates (parts per million) below
50.
"It's hard to imagine that this still isn't enough, but it's true because
our customers' expectations continue to grow," Day said. "As automotive
revenues grow toward our $1 billion target in North America, we recognize that
a fully focused executive team is necessary to grow sales, build on our cost
leadership position, improve investment productivity and always nurture the
interests and needs of our valued automotive customers."
Previously, Freudenberg-NOK's automotive businesses consisted of chassis
components, powertrain products and vibration control products, which recently
became Vibracoustic North America -- an independent, wholly owned subsidiary
of Freudenberg-NOK.
"Following the creation of Vibracoustic, Freudenberg-NOK decided to merge
all of its automotive sealing business into one unit," Day said.
The executive team consists of:
* Richard E. Allen -- who has been appointed CEO and lead member of the
Automotive Components Business. His responsibilities include defining and
implementing Freudenberg-NOK's automotive product, technology and business
strategies, and building customer relationships. He will be headquartered at
the company's Concept Center in Plymouth, Mich. Prior to joining the company,
Allen was president of Farnam-Meillor, which was recently acquired by
Freudenberg-NOK.
Allen has a long history in the automotive industry, starting his career
in Europe and Canada with Massey Ferguson in 1972. By 1986 he had become
managing director of Perkins Diesel Engines and was responsible for its
worldwide business with operating units in England, France, Germany, Italy,
Japan, Africa and Latin America. In 1993, he joined Varity Kelsey-Hayes as
president of its $400 million foundation brake division, and in 1994 was given
responsibility for the $1.1 billion America's brake business.
* William R. Purslow, who has worked for Freudenberg-NOK for more than 25
years, becomes president and chief operating officer of the newly formed unit.
He will oversee management of seven production facilities, the product
strategies of the automotive business and the company's lean systems program,
GROWTTH(R) -- which continues to build cost and quality leadership in
Freudenberg-NOK's automotive segment.
Purslow has held a variety of sales and manufacturing roles at
Freudenberg-NOK. His first general management position was in 1987. His
general management career continued to develop and, most recently, he served
as president of the company's Powertrain Products Division.
Purslow is an advisor to the Governor's Technology Partnership for the
state of New Hampshire. He earned a bachelor of science degree in business
and mathematics at Plymouth State College in New Hampshire and a master's
degree in business administration from the University of Dayton in Ohio.
* Craig T. Barnhart, the third executive appointed to Freudenberg-NOK's
Automotive Components Business, has been named CFO. Previously division
finance manager for Freudenberg-NOK's Powertrain Products Division, Barnhart's
financial operations experience will play a key role in leading the automotive
business.
Prior to joining Freudenberg-NOK in 1995, Barnhart worked for Newcor, Inc.
in Bloomfield Hills, Mich. He began his career at Price Waterhouse in 1984.
A certified public accountant, he is a member of the American Institute of
Certified Public Accountants and the Michigan Association of Certified Public
Accountants. Barnhart earned his bachelor of science degree in business
administration from Central Michigan University and a master's degree in
business administration from the University of Detroit.
"Richard, Bill and Craig will work closely to ensure the new organization
provides customers with cost-competitive, technology-driven products that will
help automakers reduce warranty and total costs," Day said.
Plymouth, Mich.-based Freudenberg-NOK is part of the Freudenberg and NOK
Group Companies, which have total annual sales of more than $6 billion. With
global automotive sales of approximately $3.5 billion, the Freudenberg and NOK
Group ranks among the world's top 20 automotive suppliers and is one of only
eight in the top 100 that have global balance in each of the three major
automotive markets -- Asia, Europe and North America.
Through a global network of facilities spanning 24 countries with some
23,000 automotive employees worldwide, the supplier group offers its
automotive customers globally integrated products, including sealing packages
for transmissions, engines, brakes, axles and steering, NVH (noise, vibration
and harshness) components and packages, and all rubber, plastic and PTFE
components for suspension, electrical and fuel systems.
The Freudenberg and NOK Group also offers an extensive portfolio of
precision-molded products for the aerospace, appliance, business machine,
fluid power, marine, medical, off-highway equipment and recreational vehicle
markets. For more information, visit the Freudenberg-NOK web site at
http://www.freudenberg-nok.com .