TRAVERSE CITY, MI âMotor Co.âs decision to pull back from its goal of building 250,000 hybrid-electric vehicles by the end of this decade wonât have a major impact on North America, President and CEO George Perry says following an address at the Management Briefing Seminars here.
is a leading supplier of high-voltage connection systems for hybrids and has been developing this technology over the past 10 years, Perry says.
âItâs still a niche for us,â he says. âDid we anticipate thecutback? No, mainly because (Ford CEO) Bill Ford was out there saying that (250,000 HEVs) was his goal.
âItâs still small business. If it grows by 10% a year, thatâs different,â Perry points out. âBut at this stage, itâs not significant. I suppose if youâre going to cut back, youâd do it now. Itâs not a major issue other than, âToo bad.ââ
Ford is not abandoning HEVs, but says its focus now will become broader to include a number of alternative strategies, such as biofuels and diesels, to improve fuel economy and lower emissions.
Yazaki consumes huge quantities of copper for the wiring harnesses and other components supplied to auto makers. With copper prices soaring, what impact is this having on Yazaki?
âWeâve got to have copper sources, regardless of prices (and) wherever it comes from, so everyone has to live that,â he says.
During his formal address, Perry urges suppliers to take into consideration all contingencies in determining their cost structures. Low labor rates in a given country or area may not be the end-all because snafus in logistics and timing may offset labor costs, especially as sourcing expands globally, he says.
Perry says suppliers and auto makers should work closely when launching new products to avoid pitfalls down the road.
âYouâve got to look at delivered costs, not landed costs,â he says. âDonât glide past logistics costs.â