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Profiles of Major Suppliers to the Automotive Industry

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Profiles of Major Suppliers to the Automotive Industry HE 36 216 1 8.5 NHTSA-82-1 . I Profiles of Major Suppliers . .A34 no. D01- to the Automotive Industry TSC- NHTSA- Volume !: Overview 82-1 . I * DEPARTMENT OF J.A. Mateyka TRANSPORTATION W.R. Magro A.S. Karlin DEC 0 6 D.J. Yee LIBRARY Booz, Allen and Hamilton, Inc. Transportation Consulting Division Bethesda MD 20014 August 1982 Final Report This document is available to the public through the National Technical Information Service, Springfield, Virginia 22161. U.S. Department of Transportation National Highway Traffic Safety Administration Office of Research and Development Washington DC 20590 NOTICE This document is disseminated under the sponsorship of the Department of Transportation in the interest of information exchange. The United States Govern- ment assumes no liability for its contents or use NOTICE The United States Government does not endorse pro- ducts or manufacturers. Trade or manufacturers' names appear herein solely because they are con- sidered essential to the object of this report. ; 6 r — Technical Report Documentation Page P#port No. 2. Government Accession No. 3. Recipient’s Catalog No. DOT -HS -806 216 4. Title ond Sobfi tie 5. Report Date August 1982 PROFILES OF MAJOR SUPPLIERS TO THE AUTOMOTIVE 6. Performing Organization Code INDUSTRY: VOLUME 1 OVERVIEW DTS-322 8. Performing Orgomzotion Report No. 7. Author's) J.A. Mateyka, W.R. Magro , A.S. Karlin, D.J. Yee DOT-TSC-NHTSA- 82-1.1 9. Performing Orgoni lotion Name ond Address 10. Work Unit No. (TRAIS) Booz , Allen and Hamilton, Inc.* HS275/R2412 1 Transportation Consulting Division 1 . Contract or Grant No. Bethesda, Maryland 20014 13. Type of Report and Period Covered 12. Sponsoring Agency Name and Address U.S. Department of Transportation October 1978-October 1980 National Highway Traffic Safety Administration Final Report Office of Research and Development 14. Sponsoring Agency Code Washington DC 205 90 NRD-13 15. Supp lementary Notes U.S. Department of Transportation Research and Special Programs Administration *Under contract to: Transportation Systems Center Cambridge MA 02142 16. Abstract This study summarizes extensive information collected over a two-year period (October 1978 to October 1980) on suppliers of parts and components, materials, and machine tools to the automotive industry in the United States. The objective of the study was to provide data and information in support of analyses of the U.S, automotive industry. The results of this effort are published in seven volumes — Volume I: Overview; Volume II: Iron, Steel, and Aluminum Suppliers to the Automotive Industry; Volume III: Plastics, Glass, and Fiberglass Suppliers to the Automotive Industry; Volume IV: North American Parts and Component Suppliers to the Automotive Industry; Volume V: Multinational Automotive Parts and Components Suppliers; Volume VI: Foreign Automotive Parts and Components Suppliers; and Volume VII: Machine Tool Suppliers to the Automotive Industry. department of transportation DEC 0 V " LIBRARY 17. Key Word* 18. Distribution Statement Automotive Parts, Components, DOCUMENT IS AVAILABLE TO THE U.S. PUBLIC Materials Plastics, Class, THROUGH THE NATIONAL TECHNICAL INFORMATION SERVICE, SPRINGFIELD, Fiberglass ; Machine Tools VIRGINIA 22161 P 19. Security Cloifif. (of thi* roport) 20. Soeurity Cloosif. (of thi • pogo) 21* No. of og#* 22. P-ie. UNCLASSIFIED UNCLASSIFIED 168 Form DOT F 1700.7 (8-72) Reproduction of completed page authorized . PREFACE Automobile manufacturers, in general, produce only selected, key elements and subassemblies for their final product, and rely on a widespread and complex logistics network including material suppliers, foundries and fabricators for wide variety of other necessary components going into the finished automobile. Because of the importance of the automobile industry to the United States and to the world economy, it is important to under- stand the makeup of the logistics infrastructure and to understand its internal interrelationships and workings with the industry it supports. The purpose of this study was to gather all possible and pertinent information on suppliers to the automotive industry, and to present it in a form for ease of reference and further analysis i i i 1 1 1 1 5 s 1 i 3 a * -sVi 111 1 H O Q I! 11 <« » Hit! Mil ill i I» a I =1 . “ I - <& 5 is J I J c « “. * & 8-« « 10 £L <3> «*) «*» 4S» m • gg SI ® m m 1 : i 55 S 1 I : II 1 s! 2 -2 s Hill iili ill 111 ill 1 I © « «?• I 7 1 — er> f 8 : 1 i 2 1 « a (S » IS SI 01 i I e« 61 61 knt mi mm ilk iiaiiirJiiisiiiniii mi mini! im im ns :m miiiiii myi mi im mi im 6 0 JO |T r T r "! T|T j«| u ''T F "i •nr TJT TJT TP' u 0 1 0 ? 6 0 0 1 3 » s 7 E * 8 J J I - 111 ti It s i i i s I i t " t a s • « w u liil Hill ill ! 1 ! ! ! ! I i i a w i « s M a 3= « «* * . s ® ^ • io^« f§ <*> '** • 0 ®go©®«c© s & ® - *3 O ® © s ® 1 «u8 sis «3 fl® <© *S 1 M BE m s to*- 1 * ?! .1 .11 r 9 0 SS . 1 8 1 *= fill Hili ill I * ! 1 1 ? i I ! * * ? I l"jrV« 3 « J?" S W & W i * 1* IV 1 TABLE OF CONTENTS Page Number 1. INTRODUCTION 1-1 2. PARTS AND COMPONENTS SUPPLIERS 2-1 2.1 Industry Overview 2-1 2.2 Products 2-5 2.3 Markets 2-8 2.4 Major Trends Affecting the Industry 2-10 3. THE MACHINE TOOL INDUSTRY 3-1 3.1 Size and Structure of the U.S. Machine Tool Industy 3-2 3.2 Major Markets for Machine Tools 3-3 3.3 Machine Tool Technology 3-4 3.4 Machine tool Companies 3-8 3.5 Trends Affecting the Machine Tool Industry 3-9 4. STEEL INDUSTRY 4-1 4.1 Size and Structure of Domestic Steel Industry 4-1 4.2 Products of the Steelmakers 4-4 4.3 Major Steel Markets 4-5 4.4 Major Issues Affecting Steel Industry ' 4-5 5. ALUMINUM INDUSTRY 5-1 5.1 Aluminum Manufacturing Process 5-1 5.2 Size and Structure of the Industry 5-3 5.3 Major Markets 5-4 5.4 Major Issues Affecting the Aluminum Industry 5-5 6. METAL CASTING INDUSTRY 6-1 6.1 Types of Castings Used By the Auto Industry 6-1 6.2 Importance of the Auto Market to the Casting Industry 6-4 6.3 Size and Structure of the Casting Industry 6-5 6.4 Major Issues Facing the Casting Industry 6-7 PLASTICS INDUSTRY 7-1 7 . Plastic Production 7-1 7.2 Size and Structure of the Plastics Industry 7-4 7. 3 The Automobile and the Plastics Industry 7-6 7.4 Key Issues 7-12 v 1 TABLE OF CONTENTS (Continued) Page Number 8. THE GLASS AND FIBERGLASS INDUSTRY 8-1 8.1 The Glassmaking Process 8-1 8.2 Size and Structure of the Domestic Flat Glass and Fiberglass Industry 8-4 8.3 Glass and the Automotive Industry 8-6 8.4 Major Issues Affecting the Glass Industry 8-8 APPENDIX A - SUMMARY PROFILES OF THE NORTH AMERICAN PARTS AND COMPONENTS SUPPLIERS A-l APPENDIX B - SUMMARY PROFILES OF U.S. -BASED MULTI- NATIONAL PARTS AND COMPONENTS SUPPLIERS B- APPENDIX C - SUMMARY PROFILES OF FOREIGN PARTS AND COMPONENTS C-l APPENDIX D - SUMMARY PROFILES OF MAJOR MACHINE TOOL COMPANIES D-l APPENDIX E - SUMMARY PROFILES OF SEVEN STEELMAKING COMPANIES E-l APPENDIX F - SUMMARY PROFILES OF THE ALUMINUM COMPANIES F-l APPENDIX G - SUMMARY PROFILES OF THE MAJOR FOUNDRIES WHO SUPPLY CASTINGS TO THE AUTOMOTIVE INDUSTRY G-l APPENDIX H - SUMMARY PROFILES OF THE MAJOR SUPPLIERS OF PLASTICS H-l APPENDIX I - SUMMARY PROFILES OF THE DOMINANT GLASS AND FIBERGLASS SUPPLIERS 1-1 Appendix J - REPORT OF NEW TECHNOLOGY J-l vi LIST OF ILLUSTRATIONS Page Figure Number 1-1 Structure of Typical Supplier /Manufacturer Activity in the Production of a Domestic Automobile 1-2 3- 4-3-1 Comparison of Value of Shipments of 3-2 5- Selected Manufacturing Industries 6-3-2 Schematic Diagram of Automobile Showing Parts and Components Which are Machined 3-4 7- 3 Basic Metalcutting Tools 3-5 8- 1 Structure of Steel Industry 4-2 1 The Manufacture of Aluminum 5-2 1 Automotive Casting Industry Segmented by Major Metals Used 6-2 1 Simplified Derivation of Some Major Automotive Plastics.... 7-2 1 Steps in Glassmaking 8-2 LIST OF TABLES 1- Page Table2- Number 2- 1 SUPPLIER INDUSTRY GROUPS /COMPANIES PROFILED... 1-4 3- 1 MAJOR NORTH AMERICAN AND U.S. -BASED MULTI- 3- NATIONAL PARTS AND COMPONENTS SUPPLIERS....... 2-4 4- 2 MAJOR FOREIGN COMPONENT SUPPLIERS 2-6 1 STRUCTURE OF THE MACHINE TOOL INDUSTRY BROKEN DOWN BY NUMBER OF EMPLOYEES 3-3 4- 5- 2 MACHINE TOOL SUPPLIERS' FINANCIAL ANALYSIS 3-9 1 U.S. STEEL INDUSTRY SHIPMENTS , SALES, 5- INCOME AND EMPLOYMENT. 4-1 6-4-2 PERFORMANCE OF SEVEN LARGEST STEELMAKERS (1979) 4-4 6- 3 MAJOR STEEL MARKETS 4-6 7- 1 MAJOR ALUMINUM COMPANIES 5-4 5-2 SHIPMENTS BY MAJOR MARKET, 1979.... 5-4 3 TOTAL ALUMINUM USED IN PASSENGER CARS, 1978 (MILLIONS OF POUNDS) 5-5 1 1979 CASTING PRODUCTION 6-2 6-2 MAJOR FOUNDRIES 6-6 3 METAL CASTING GROWTH. 6-7 1 LARGEST PLASTIC COMPANIES. 7-5 7-2 MAJOR PROCESSING PLANTS PRODUCING OVER 100 MILLION POUNDS PER YEAR 7-7 7-3 PLASTICS IN PASSENGER CARS IN 1978 AND 1979 (000 TONS) 7-8 7-4 CAPACITIES OF THE LARGEST SUPPLIERS OF MAJOR AUTOMOTIVE PLASTIC RESINS.
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