From Automotive News, a Crain publication
Detroit, Michigan - The purchase of a key Ford Motor Co. supplier operation is paying dividends for International Automotive Components Group North America.
Since buying the Hermosillo, Mexico, plant from Collins & Aikman Corp. last year, IAC has used the moulding technology to generate four contracts for future business worth $400 million annually, said IAC ceo Jim Kamsickas. Kamsickas led a group to view IAC interiors in various vehicles today at the Detroit auto show.
As part of the Hermosillo acquisition, IAC bought a proprietary process that allows soft texture to be moulded onto a hard plastic substrate in the same mould.
That process is used to make the entire award-winning interior of the Ford Fusion family of sedans in Hermosillo. The Ford contract generates sales of about $200 million annually for IAC.
Kamsickas declined to identify the customers of the new business. IAC paid $17 million and assumed certain liabilities to acquire the Hermosillo parts business.
During the tour, he said falling North American vehicle sales in 2008 would make it hard for IAC to match its $3500 million in North American sales in 2007.
IAC is owned by New York investor Wilbur Ross. It includes mostly Lear Corp.'s former interiors business and some assets of the former Collins & Aikman. Collins & Aikman was liquidated in Chapter 11 protection late last year.
IAC posted global sales of $5500 million in 2007.