Japanese Automotive Supplier Investment Directory October 1991
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Japanese Automotive Supplier Investment Directory October 1991 Fourth Edition Compiled by Brett C. Smith Report Number: UMTRI-91-37 The Office for the Study of Automotive Transportation The University of Michigan Transportation Research Institute 2901 Baxter Road Ann Arbor, MI 48109-2150 Phone: 313-764-5592 Fax: 313-936-1081 The overall objectives of the Office for the Study of Automotive Transportation (OSAT) are to provide information resources, industry analysis, comrnuni~:ation forums, and academic. research that meet the continually changing needs of the international automotive and automotive-related industries. (01991 OSAT, UMTRI) Japanese Automotive Supplier Investment Directory October 1991 Fourth Edition Compiled by Brett C. Smdth The Office for the Study of Automotive Transportation The University of Michigan Transportation Research Institute 2901 Baxter Road Ann Arbor, MI 48109-21!50 Phone: 313-764-5592 Fax: 313-936-1081 The overall objectives of the Office for the Study of Automotive Transportation (OSAT) are to provide information resources, industry analysis, communication forums, and academic research that meet the continually changing needs of the interniitional automotive and automotive-related industries. (01991 OSAT, UMTRI) OSAT AFFILIATES and SPONSORS Funds from the following organizations help to support OSAT activities, including this Directory. Aeroquip Corporation Allied-Signal Inc. 3M Automotive Industry Center Chevron Research Company Chrysler Corporation Donnelly Corporation Dow Corning Eaton Corporation Fel-Pro Inc. Ford Motor Company GE Automotive General Motors Corporation Johnson Controls, Inc. Mazda R. J. Tower Corporation Textron Inc. TRW Automotive Sealed Power Technologies Union Carbide Corporation UAW-GM Human Resource Center JAPANESE AUTOMOTIVE SUPPLIER INVESTMENT DIRECTORY Fourth Edition Table of Contents Introduction......................... .. ................................................................................ i ... Plant Index .................................................................. ..... ............ ......................................... XIII Section I PartsIComponents Manufacturers....... ... ...................................................................... 1 Section I1 MaterialsICapital Tools Facilities ............... .... ...................................................... 131 Section Ill New American Manufacturers................................................................................... .1 63 Cross Reference Indices Product lndex Part and Component Facilities ........................................................................ I 7 3 Capital Tools and Materials Facilites........................ ... ................................. 18 0 Parent Company lndex Part and Component Facilities ............................................................................1 83 Capital Tools and Materials Facilites.................... .. ......................................... I9 0 Manufacturer-Supplier Index .................. ............................................................... 1 9 2 Appendix PI- Geographical Maps................................ ....................................................... 1 9 9 United States ................................................................................................................2 0 0 Illinois ....................... .. ...........................................................................................201 Indiana ....................... .. ...........................................................................................2 0 2 Kentuclky ..................... ............ ...........................................................................2 03 Michigan ............................................ ... ...... ............................2 04 Ohio ........................... ... ............................................................................... 2 05 Tennessee ................... ... .................................................. 2 0 6 Appendix El- list of sources ...................................................................................................2 0 7 JAPANESE AUTOMOTIVE SUPPLIER INVESTMENT DIRECTORY Fourth Edition Introduction This directory includes information on U.S. automotive supplier and assembly facilities that have a Japanese investment interest. The first section contains info~mationon 260 automotive part and component assembly/manufacturing facilities. The second section presents information on 62 automotive material and capital tool facilities. Finally, section three contains background information on the eight U.S.-based, assembly and engine manufacturing facilities that have a Japanese interest. We gathered the information during the second quarter of 1991 by direct telephone and written contact. This directory includes only companies that we have directly contacted, so the actual number of manufacturing facilities having a Japanese investment interest is slightly higher than this directory indicates. Nevertheless, we feel the information presented accurately and realistically describes the inflow of Japanese direct investment into the U.S. supply base. Selected Highlights This section highlights general, summary statistics of this directory and additional information and insights we have gathered from other projects. Some of the 260 part and component supplier respondents were unable to answer some of our questions. However, this discussion is based on a substantial number of responses to each item and, in our judgement, represents an accurate description of this emerging part and component segment of the industry. Table 1 presents a profile of our Japanese Automotive Supplier Investment Directory Survey. Table 1 Japanese Automotive Supplier Investment Directory Survey Selected Highlights-Based on Survey Responses r (n=number of responses to specific questioln) Total number of facilities 330 Conlponents 260 Materialslcapital equipment 62 Auto assembly 8 7il%ZG$empent 101.,700 Conlponen t s 55,800 Mataialslcapital equipment 19,300 Auto assembly 26,600 Total capitail investment $12.4 billion Conlponents 3.8 billion Materialslcapital equipment 1.9 billion Auto assembly 6.7 billion Component ManufacturerIAssembler Sum of facility (n=253) of employees per facility ,---- I I ~Vera$square footage of facility (r-I On\ Average capital invested per facility (n=108) $35.3 million Percentage of facilities unionized (n=185) 10 percent Facilities reporting exports (n=202) 60 percent Number of Facilities New American Supplier, or NAS1, startups appear to have slowed greatly after boom years in 1987 (50 facility start ups) and 1988 (67 facility startups). (See charts A and B, page vi.) Several factors have probably contributed to this slower growth. First, most Japanese assembly plants have reached planned production levels. This suggests that their supplier network objectives have been developed, and the mix between import and domestic sourcing has been established. Second, Japanese manufacturers may be responding to political pressure and changing their sourcing patterns to include more traditional domestic supplier capacity content. And third, the overall weak economic conditions of the last two years have made survival difficult for both the traditional supplier and the NAS. With the September 1991 ramp up of Toyota's compact pickup production at New United Motor Manufacturing, Inc. (NUMMI), all of the New American Manufacturers (NAMS~)have begun production on announced vehicle plans, Honda of America Manufacturing was the first NAM, of the NAMs still in production, to begin production in 1982. These NAMs, therefore, have a functioning supply base since they have produced vehicles for one to nine years. Therefore, except perhaps for the most recently established vehicle manufacturing activity-and future expansion of Toyota's Georgetown, KY operations-the window of opportunity for new suppliers-Japanese and American-is significantly limited, making it somewhat less attractive for Japanese suppliers to build new facilities in the United States. Beyond the expansion of current capacity or the manufacture of new models, sourcing opportunity exists only with a change of Japanese manufacturer corporate strategy and purchasing policy. Announced major increases in vehicle assembly capacity-such as Toyota's announced addition of 250,000 units at its Georgetown, KY assembly complex-and first tier engine and transmission production -such as Nissan's planned Decherd, TN engine plant-along with several other rumored expansions might open a new window of opportunity. However, much of this added assembly capacity will probably be supplied by Japanese suppliers already in place--either in North America or Japan. In fact, many present NASs have indicated intentions to fill this gap by expanding capacity. Nevertheless, business generated from new powertrain and vehicle control (such as suspension, steering, and brake) component facilities may offer the greatest opportunities for increased domestic sourcing, This domestic sourcing may arise through increased direct foreign investment or traditional domestic supplier contracts. We mention this because of the need to be concerned with profit repatriation, traditional domestic supplier capacity utilization, and regional economic impacts. NAM strategies have relied heavily on the traditional Japanese supply base for critical components. This may account for their reluctance to produce engines