Modules and more: Value-added technologies and lean plants are keys to Benteler Automotive's growth, says company President Walt Frankiewicz

Automotive Industries,  Dec, 2001  by Lindsay Brooke

• E-mail
• Print
• Link

If you know the Ford Focus, you know Benteler Automotive. The Focus' front and rear suspensions are both single-sourced from Benteler as modules and supplied to Ford worldwide. Chassis modules are one of the four key product areas (the others are exhaust systems, structural body components and systems, and small tubes) of this $2.7 billion supplier, part of Benteler AG. Benteler now has nine engineering and manufacturing facilities in North America, including three in Mexico.

Automotive Industries recently spoke with Walter Frankiewicz, president of Benteler Automotive North America, at the company's brand-new Tech Center in Auburn Hills, Mich.

Q: How is Benteler's forward business looking?

A: We're still actively working on all the 2003-2005 programs we'd committed to work on. We've taken some measures internally to react to whatever happens on the downside.

Q: How do you intend to take advantage of Benteler's technical competencies, such as hydroforming and air-gap manifold design?

A: With modules. We're evolving systems into turnkey solutions for our customers. Where we see our future is on the things less visible to the end customer. Much of it is safety and regulatory related: body-in-white structure, chassis and exhaust systems.

Q: Are you considering widening the scope of what you now term modules and "Major" assemblies?

A: We're actually bidding on some business that looks at expanding the scope of integrated systems, yes.

Q: Will that be done using acquisitions or perhaps joint-venture partners?

A: Any module strategy allows for the competencies you've got Ours are in designing, welding, stamping, testing and actually assembling parts and systems. We wouldn't want to supply tires or the air that goes in them. And it's very unlikely Benteler will supply brake systems. Might we align ourselves with those who do? Anything's a possibility. But we're positioning ourselves to be successful with or without others.

Q: How lean are Benteler's manufacturing facilities?

A: We won the Shingo Prize in June for lean manufacturing at our exhaust systems plant At all of our plants across all product lines, our PPMs are measured in single digit Single digit PPMs is definitely world class. It's not Six Sigma; 3.2 would be. But we're using Six Sigma tools to get there, and we're damn close.

Q: What's missing from the Benteler puzzle?

A: One of the more critical things we need to have is scale -- scope and mass. We're not insignificant from a global standpoint. But what we need to do in 2002 is have more successes along the way and grow our sales line so that we are recognized as providers of solutions. The biggest element missing for us is not technical. And it's not manufacturing capability. It's just getting more and more business.

Q: What's next for your small-tube business?

A: We have a lot of opportunity in bringing the combustible material to the engine with our small tubes (less than 28 mm, including coolant pipes and EGR tubes), then taking it away with our exhaust systems. We sell the tubes today as individual components, but with the acquisition of PD&E we're looking at the ability to dress an engine with all of our tubes. But it depends on each OEM's sourcing strategy, which differs by company. Some like GM might source entire exhaust systems for example, while the Japanese transplants are still sourcing separate pieces. So we need a two-speed strategy. We've mapped out what we do, what our development arm will do and how it all works.

For the entire interview with Walt Frankiewicz, check out www.ai-online.com.

Benteler's New Business, 2003-2004

Customer  Year  Engine/Car  Product

Nissan    2003  V-8         Fabricated Exhaust Manifolds
DCX       2003  V-6         Fabricated Air-Gap Manifolds
GM        2003  V-6         Cat. Convener Downpipe
                            Assembly
Nissan    2004  V-6         Fabricated Exhaust Manifolds
GM        2003  Tracker     Side Intrusion Beam
BMW       2004  Z3          IP Support
DCX       2004  Viper       Side Intrusion Beam

COPYRIGHT 2001 Diesel & Gas Turbine Publications
COPYRIGHT 2008 Gale, Cengage Learning