Ford, Tier 1 Suppliers Source More Than $10 Million From MEDC Matchmaking Summit

DEARBORN, Mich., Jan. 15, 2014 /PRNewswire/ --

• More than 20 Michigan small businesses are awarded contracts with Ford and its Tier 1 suppliers
• 2013 Pure Michigan Business Connect Ford Matchmaking Summit opened the door to additional procurement opportunities that may not have been previously available to Michigan suppliers
• Ford has successful history of bringing together suppliers and small businesses, especially minority-, women- and veteran-owned companies

Ford and its Tier 1 suppliers awarded $10.4 million in contracts to Michigan-based companies through the 2013 Pure Michigan Business Connect Ford Matchmaking Summit.

Ford hosted the summit in March 2013 with the Michigan Economic Development Corporation, in partnership with the Detroit Regional Chamber. Ford, the first OEM to host the summit, used the event to connect more than 300 qualified Michigan suppliers with 12 of the company's purchasing teams and 30 of its Tier 1 suppliers.

"For a program like Pure Michigan Business Connect to be successful, we need leaders like Ford and its commitment to grow our economy organically from within, and we thank them for their investments inMichigan," said Gov. Rick Snyder. "Their commitment, along with those of other PMBC members, means significant growth opportunities for Michigan companies."

Supply contracts for more than $11 million were sourced because of the summit, with $10.4 million originating with Ford and its suppliers. Ford directly sourced $5.8 million with Michigan-based small businesses, and its Tier 1 suppliers signed $4.6 million in contracts with local companies.

"The matchmaking summit allowed the Dura Automotive team exposure to high-quality Michigan small businesses that we otherwise would not be aware of," said Richard Hopkins, vice president of global purchasing, Dura Automotive Systems, one of the Ford suppliers that participated in the event. "We sourced more than $45 million with 200 local suppliers in 2013, including $9.2 million with diverse suppliers.  As aMichigan based company ourselves, Dura is thrilled to be supporting growth and job creation in our local community." 

Ford has a long history of "matchmaking" suppliers through its Supplier Diversity Development program, which celebrated its 35^th anniversary in 2013. Through the program, Ford aims to source at least 10 percent of U.S. purchases from minority, women and veteran-owned businesses. Since the program's inception, Ford has spent more than $67 billion with diverse suppliers.

Ford is committed to using home-grown suppliers. In 2012, the company purchased $15 billion in goods and services from Michigan-based companies.

"We are proud to be the first OEM to support Gov. Snyder's initiative to increase additional opportunities withMichigan small businesses," said Hau Thai Tang, Ford group vice president, global purchasing. "Ford recognizes the importance of our supplier network in the success and growth of our company, and we truly believe in profitable growth for all."

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GM Expects Profits To Rise On New Vehicles In 2014

General Motors Renaissance Center, Detroit

EBIT-adjusted expected to rise modestly on strength in the U.S. and China

DETROIT, Jan. 15, 2014 /PRNewswire/ -- General Motors Co. (NYSE: GM) forecasts modest global industry growth in 2014 driven by the United States, China and Europe. Based on this outlook and the introduction of key vehicles globally, the company expects its total earnings before interest and tax (EBIT) adjusted to be modestly improved with improved underlying operating performance more than offsetting increased restructuring expense. Additionally, the company said it expects EBIT-adjusted margins will be similar to last year.

"We continue to perform well in the two most important markets in the world, the U.S. and China," said GM CEO Mary Barra. "We're taking advantage of our strength in these countries to restructure and make the investments necessary to grow profitably in other parts of the world."

GM President Dan Ammann shared the outlook with investor analysts attending the Deutsche Bank 2014 Global Auto Industry Conference in Detroit. 

Following 18 vehicle launches in 2013 in the U.S., the company will introduce 15 new or upgraded models in that market this year. In China, GM and its joint venture partners will introduce 17 new or upgraded models in 2014. The company also announced plans to open four additional plants in China through 2015, enabling production of up to 5 million units annually.

Vehicles being introduced in key markets globally in 2014 include the Chevrolet Silverado HD, Tahoe, Suburban, Colorado, Aveo and Sail; Cadillac ATS Coupe, CTS and Escalade; GMC Sierra HD, Yukon XL, Denali XL and Canyon.

Among key accomplishments for 2013, Ammann noted the following:

• Executed successful global vehicle launches
• Received most initial quality awards among automakers in 2013 J.D. Power and Associates Initial Quality Study
• Improved revenue, EBIT-adjusted and margins
• Announced GM International Operations restructuring including plans to discontinue Chevrolet's mainstream presence in Western and Eastern Europe and transition to a national sales company inAustralia with its Holden brand
• Completed the acquisition of substantially all of Ally Financial's international operations
• Added to the S&P 500 index
• Refinanced $4.5 billion in high-cost obligations, increasing financial flexibility
• Achieved investment grade rating with Moody's Investors Service
• Monetized non-core assets including Ally and PSA ownership stakes
• The U.S. Treasury divested its ownership stake
• Announced senior leadership succession plan

"In 2014, our focus will remain on winning customers by delivering new vehicles with compelling value and outstanding quality," Ammann said. "Our ongoing work to transform our company into a formidable competitor in every market we serve will continue unabated."

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Presidential Influence On Auto Industry



: Government officials join President Eisenhower as he signs Highway Bill. (PRNewsFoto/Hagerty, The National Park Service and the Eisenhower Presidential Library)

This is a very interesting piece from Hagerty is the world's leading insurance agency for classic vehicles and host to the largest network of classic car owners, looking at the influence of the Oval Office over the auto industry.

Where would we be without the national highway system? Would there be as many cars and trucks on the road? How would they have been designed differently? And what about the EPA and federal gas mileage requirements?

I think you will enjoy this if you are a fan of both the auto industry and presidential history:

"As a company that is passionate about automotive history and the classic car world, we have discovered that the President of the United States can impact the automotive world as much as a Henry Ford or William Durant," says McKeel Hagerty, CEO of Hagerty.  "While some of the policies and legislation on this list remain controversial, their influence is undeniable and they clearly show how a presidency can affect the cars we drive."

Thomas Schwartz, Presidential Historian and Professor of History at Vanderbilt University, agreed. "The U.S. automotive industry, in its current framework, has been strongly affected by the legislative initiatives and mandates of several American Presidents over the last century.  Their actions have not only shaped the cars we drive and roads we travel, but have profoundly influenced the overall American economy as well."

Automotive Industry Crisis (2008 - 2009) – George W. Bush and Barack Obama

Initially started by President Bush as auto sales fell throughout 2008, President Obama ordered a huge financial bailout ($80 billion) which allowed Chrysler and General Motors to address upcoming cash shortages in 2009.  While contentious at the time, the automakers are currently turning profits, and time will ultimately tell if the bailout leads to long-term prosperity.

 

Chrysler Bailout (1979) – Jimmy Carter

In 1979, Chrysler was struggling to pay expenses and was on the verge of bankruptcy.  In response, President Carter agreed to order federal loan guarantees providing Chrysler $1.5 billion to cover manufacturing costs.  Without those guarantees, Chrysler's bankruptcy may have resulted in a depression as the U.S. economy was experiencing a significant downturn at the time.

Corporate Average Fuel Economy (1975) – Gerald Ford

In 1975, President Ford signed the Energy Policy and Conservation Act which contained the C.A.F.E. provision requiring automakers to increase overall fuel efficiency. As a result, the Big Three made changes, including offering smaller cars for sale in the U.S. during the 1980s.

Emergency Highway Energy Conservation Act (1974) – Richard Nixon

In 1974, President Nixon signed this act, which included the National Maximum Speed Law limiting drivers to 55 MPH on U.S. roadways.  The intent of the law was to help lower gasoline consumption due to the OPEC oil embargo which lasted from October 1973 to March 1974.  The law was lifted in 1995 when the power to set speed limits returned to individual states.

Creation of the Environmental Protection Agency (1970) – Richard Nixon

In December of 1970, President Nixon and Congress established the EPA.  It was created to research, set standards and enforce policy to ensure environmental protection. The organization continues to work for a cleaner and healthier environment for U.S. residents, which primarily includes setting vehicle emissions standards.

Highway Safety Act and National Traffic/Motor Vehicle Safety Act (1966) – Lyndon Johnson

In response to growing fatalities and injuries involving vehicles, these federal acts produced the first safety standards for motor vehicles and roadways.  Vehicle safety requirements included seat belts, headrests, impact-absorbing steering wheels, shatter-resistant windshields and road safety measures such as enhanced guardrails, break-away signs and greater illumination of roadways.

Department of Transportation (1966) – Lyndon Johnson

Signed into law by President Johnson on October 15, 1966, the Department of Transportation (DOT) was developed to coordinate transportation policies and systems throughout the U.S.  The DOT is responsible for the quality, proficiency and safety of all U.S. transportation systems including highways, railroads, waterways/ports and mass transit, among others. 

Interstate Highway System (1956) – Dwight Eisenhower

With national security in mind, President Eisenhower signed the Federal-Aid Highway Act on June 29, 1956.  This act provided funding for the development and construction of the 41,000-mile Interstate Highway System and is commonly referred to as the "Greatest Public Works Project in History."

Federal Aid Road Act (1916) – Woodrow Wilson

Due in part to lobbying interest groups representing farmers and urban motorists, on July 11, 1916, President Wilson signed the Federal Aid Road Act, which officially became the first federal highway-funding legislation in the history of the United States.  At the time, U.S. roadways were in poor condition, and the roughly $75 million in aid drastically improved their quality.

National Road - Cumberland Road (1784 - 1806) – George Washington and Thomas Jefferson

Originally conceived by President-to-be George Washington in 1784 and approved in 1806 during Thomas Jefferson's administration, the National Road was the largest U.S. road project ever at the time.  Construction began in 1811, was completed in 1834 and became the first major U.S. road to utilize macadam-style road construction – raised layers of stones bound together with a cementing agent which became a major upgrade over the soil-based roadways popularly used at the time. 

Have a great Labor Day weekend, and as always, please go to www.rodkackley.com for more on manufacturing.