OEMs and LSPs see light at end of tunnel

The 10th Automotive Logistics Global conference concluded on a positive note, with more than 220 delegates from OEMs and LSPs hearing what they’ve been waiting to hear for more than 18 months: the US recession appears to be over and vehicle sales look set to increase.

After a tumultuous year, there was never a more important time for logistics professionals to meet and listen to customers, competitors, suppliers and partners across North America.

But while sales are starting to recover, there has been a permanent change to lock in the savings from lower inventory, said both Ford's manufacturing chief Joe Hinrichs and GM's logistics head Susanna Webber.

Sharing a platform: Webber, Weiss, Lowe with conference chairman Yiakoumi (left)

And also a need to work even more closely together both inside and outside the OEM. Chrysler's manager for worldwide vehicle transportation, Steve Tripp, warned: 'If you [finished vehicle logistics providers] aren't close to our production schedules, then get very close to them."

The Autmotive Logistics Global conference gave OEMs and LSPs the chance to network, discuss future business opportunities and gain industry insights.

The conference included forums and workshops as well as presentations from industry leaders.

Presenting his global forecast, JD Power’s Jeff Schuster, executive director, said that US sales should surpass 10.4m this year, while 2010 should top 11m. It is a far different picture from the 13.2m seen in 2008 and the 16m in 2007, but JD Power expects the market to return to more 'normal' levels of 15m by 2012.

Production, however, will be more subdued, reaching 8.5m this year (from 12.5m in 2008 and 15m in 2007) as OEMs adjust to leaner vehicle and material inventory in an attempt to align closer to the market size, and import penetration grows.

Webber: permanent change (l-r) Knutilla, Ryder; Lewis, Toyota; Weiss, Chrysler Hinrichs: savings

As well as Joe Hinrichs, Ford's group vice president for global manufacturing and labour affairs, and Susanna Webber, executive director of global logistics for General Motors, speakers included:

Steve Harley, who has replaced Frederiek Toney (now vice president of customer services at Ford) as executive director for supply chain and parts logistics;
Peter Weiss, director of worldwide transportation at Chrysler;
Dennis Manns, vice president for logistics at American Honda;
Denny Lewis, manager of logistics planning for Toyota North America; and
Mike Steck, vice president of supply chain management for Nissan North America.

The meeting brought together the most significant figures in North American automotive logistics, with frank discussions and essential insights, as our Editors report….

View the full 2009 conference report

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Automotive Logistics Global 2010

OEMs and LSPs see light at end of tunnel

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