Complexity Offers New Challenges To Vehicle Industry Relationships, Dana Chairman Says
Jan 23, 1997
DETROIT, Jan. 23 /PRNewswire/ -- Relationships among vehicle manufacturers and between suppliers and manufacturers are more complex than they once were, Dana Chairman Southwood J. Morcott told an audience of industry leaders today. Even in the face of that complexity, successful business relationships should be based on trust, respect, and commitment, he added. Suppliers are most likely to offer new ideas and technology to customers who establish a relationship of trust with companies that sell to them. Morcott was the speaker at the annual Society of Automotive Engineers (SAE) Executive Breakfast, leading up to next month's SAE International Congress and Exhibition, February 24-27 at Cobo Center in Detroit. "We're looking for the customer who respects our quality, global capabilities and competitive costs," he said. "A supplier probably wouldn't offer a great new product to a company that only worries about price and is slow to react. And you're certainly not going to offer a proprietary idea to someone who will give it to competitors." Globalization of the vehicle industry has led to complicated interrelationships, Morcott explained. "The globe is every manufacturer's territory," he said. "The person who is your competitor in one country may be your partner or your customer in another. Joint ventures and other partnerships are occurring at a rapid pace." Dana is a good example, Morcott said. It acquired or announced plans to acquire a dozen companies in 1996, 10 of them outside the U.S. Two of the pending acquisitions, Clark Hurth (purchased from Ingersoll Rand) and Sealed Power (purchased from SPX) have global operations in their own right. Both of those acquisitions are awaiting customary regulatory approval. In recent years, Dana also established a number of international joint ventures and partnerships and acquired equity interests in overseas operations. "The vehicle industry is changing," he added. "We're a lot more efficient and effective than we used to be. We are more sensitive to the needs of the ultimate customer, and we can bring new products forward more quickly. And the products we are turning out are way ahead of anything we even used to dream of. In today's world, no company in the automobile industry survives and prospers on its own resources -- not even its own engineering. Working in harmony, we are participating in -- and can continue to participate in - one of the greatest industries in the world." Dana Corporation is a global leader in the engineering, manufacturing and distribution of products and systems for the vehicular, industrial and mobile off-highway markets. Founded in 1904 and based in Toledo, Ohio, Dana operates facilities in 29 countries with more than 45,000 people. Its 1995 sales were $7.6 billion. Dana is noted for its style of management and its commitment to innovation. It has 40 product research and development facilities worldwide. The internet address for Dana's home page is http://www.dana.com. SOURCE Dana Corporation CONTACT: Gary Corrigan, Director-Corporate Communications, of Dana Corporation, 419-535-4813