Collins & Aikman Announces Interior Systems Organizational Realignment
18 April 2000
Collins & Aikman Announces North American Interior Systems Organizational Realignment; Forms Global Product Development Division And Global Supply Chain Function
TROY, Mich., April 18 Collins & Aikman Corporation
(NYSE: CKC) today announced a series of organizational moves designed to
further increase the Company's focus on innovation, strengthen the leadership
of its North American Interior Systems Division and further lower operating
costs. Highlights of the changes are as follows:
* New Global Product Development Division Established
* Organization Aligned to Support Integrated Interior System Sales
* New Global Supply Chain Management Function Established
* Frank Preston named President of North American Interior Systems
* Steve Jeske named Senior VP - Sales & Marketing, North American
Interior Systems
* C&A Mexican operations consolidated under Reed White - President of
Collins & Aikman's Dura Convertible Systems Division
Commenting on the changes, Thomas E. Evans, Collins & Aikman's Chairman
and CEO stated, "The changes we are announcing today represent the second
phase of our growth plans for Collins & Aikman. With the rapidly increasing
use of telematics in vehicles, we believe that noise and sound management
requirements will be drastically increasing which will require dramatic
changes for OEMs and world-class automotive acoustic suppliers. Our new
product development division will be focused full time on leveraging Collins &
Aikman's unique leading acoustics and design/surface styling expertise, in
order to develop totally new synergistic products for automotive interiors.
This new division will be closely aligned with the sales and marketing
functions of our operating divisions, so as to achieve an increased emphasis
on integrated interior system sales to our customers."
Evans also announced that Collins & Aikman has established a global
purchasing and supply chain management function so as to more effectively
coordinate integrated procurement activities worldwide and to better position
the Company for expanding E-business purchasing activities. "Over the short-
term, our new global matrix purchasing function should enable Collins & Aikman
to achieve additional purchasing synergies by better leveraging our sizeable
purchasing power," Evans stated. "Longer term, we see even greater
opportunities to increase our efficiency and to enhance customer productivity
via participation in both OEM and supplier B2B internet exchanges."
Evans also announced that Frank Preston has been appointed President of
Collins & Aikman's North American Automotive Interior Systems division. In
this capacity, Preston will have responsibility for overseeing the Company's
U.S. and Canadian operations in floor and acoustic systems, floor mats, door
panels, instrument panels, consoles, luggage compartment trim and other
plastic based interior trim systems. Preston will report directly to Evans
and will serve on the Company's strategy board. Collins & Aikman's North
American Automotive Interior Systems division currently has 23 manufacturing
facilities located throughout the United States, Canada and Mexico, with
fiscal 1999 division revenues of approximately $1.2 billion.
Commenting on the appointment, Evans stated, "We're extremely pleased to
have an executive with the stature, automotive background and operating
experience of Frank Preston join our team to head the North American Interior
Systems division. Not only will he be a core strategic advisor to the entire
executive management team, but with his extensive experience in running
operations very similar to ours, in tandem with his strong technology
background, we believe he'll immediately be an invaluable asset to Collins &
Aikman."
Preston joins Collins & Aikman most recently from Intelligents Consulting,
an automotive consulting practice he successfully established in 1998.
Previously, Preston was with Lear Corporation, where he served in a number of
senior executive positions, the most recent being Senior Vice President,
Strategic Planning and South American Operations. Preston also served as
Group Vice President for Lear's $3 billion Interior Systems Division, where he
had responsibility for overseeing Lear's operations in floor and acoustic
systems, headliners, door panels, consoles, visor systems, and other plastic
based interior trim systems. Prior to his service at Lear Corporation,
Preston served as President and CEO of Masland Industries and held a number of
senior management positions in the Automotive Interiors Division of Textron
Corporation.
As part of Collins & Aikman's enhanced focus on selling integrated
interior systems, Steve Jeske has been appointed Senior Vice President of
Sales and Marketing for the Company's North American Interior Systems
division, reporting directly to Frank Preston. Previously, Jeske had been
Vice President of Sales and Marketing for Collins & Aikman's Fabric division.
Jeske joined Collins & Aikman in 1979 and holds a bachelor's degree in
business from Wake Forest University. Commenting on the appointment, Evans
stated, "Having Jeske in this role highlights our intense focus on advanced
selling of our integrated interior systems. Even more importantly, with his
strong background in automotive fabrics -- the most highly stylized interior
surface in a vehicle -- Jeske is extremely well qualified to market Collins &
Aikman's integrated surface styling capabilities to our customers."
In a related move, Reed White, President of Collins & Aikman's Dura
Convertible Systems division will assume the additional responsibility for
managing the Company's consolidated Mexican operations. In addition to having
general management responsibility for the Company's global convertible systems
operations, White will now have operational responsibility for all of Collins
& Aikman's Mexican based manufacturing plants, including convertible systems,
carpet and acoustics. Commenting on the appointment, Evans stated, "White's a
natural to play a larger role at Collins & Aikman. His track record at
running our convertible systems business has been superb, and as he
consolidates our Mexican administrative and management functions, I'm
confident that he'll be able to further enhance the overall efficiency of our
operations in this very important region."
Evans continued, "Our entire organization is excited and energized by
these extremely positive actions. More than ever before, Collins & Aikman has
a unique opportunity to add value for our customers by proactively assisting
them in styling their interior surfaces, while simultaneously positioning them
for the dramatic acoustic changes being driven by the revolution in vehicle
telematics. In summary, I'm extremely confident that the changes announced
today will further enhance the position of Collins & Aikman as the industry's
premier supplier of ultra-quiet(TM) uniquely stylized automotive interiors."
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from the anticipated results because of certain risks and
uncertainties, including but not limited to general economic conditions in the
markets in which Collins & Aikman operates, fluctuations in the production of
vehicles for which the Company is a supplier, labor disputes involving the
Company or its significant customers, risks associated with conducting
business in foreign countries and other risks detailed from time to time in
the Company's Securities and Exchange Commission filings including without
limitation, in Items 1 and 7 of the Company's Annual Report on Form 10-K for
the year-ended December 25, 1999 and Item 2 of each of the Reports on Form
10-Q for the quarters ended March 27, 1999, June 26, 1999 and September 25,
1999.
Collins & Aikman is the global leader in floor and acoustic systems and is
a leading supplier of automotive fabric, interior trim, and convertible top
systems. The company's operations span the globe through 63 facilities and
nearly 16,000 employees in 12 countries who are committed to achieving total
excellence. Collins & Aikman's high quality products combine industry leading
design and styling capabilities, superior manufacturing capabilities and the
industries most effective NVH "quiet" technologies. Information about Collins
& Aikman is available on the Internet at http://www.collinsaikman.com