Strategic aSSetS - APMA :: Automotive Parts Manufacturer`s
Transcription
Strategic aSSetS - APMA :: Automotive Parts Manufacturer`s
Summer/Fall 2015 LEADREACHCONNECT and The Official Publication of the Automotive Parts Manufacturers’ Association Leveraging Strategic Assets to Increase Competitiveness Industry Analysis: Down the Road APMA’s Strategic Focus Behind the Wheel of the 2015 Ford Edge Canada Post Publications Agreement Number 40609661 what’s INSIDE UP FRONT 7 A PMA’s Board of Directors 7 A PMA Contact Information 7 S tay Connected with APMA! THE 2015 APMA ANNUAL CONFERENCE & EXHIBITION 9 A Personal Message from the Prime Minister of Canada 9 A Personal Message from the Premier of Ontario A CLOSER LOOK 10 C ommitted to Canada: Start with Customers, Imagine the Future, Drive Forward FEATURES 15 Industry Analysis: Down the Road 19 A PMA’s Strategic Focus 25 U nderstanding Your Public Sector Partner 29 C anada’s National Research Infrastructure: A Strategic Asset for Canadian Automotive Parts Manufacturers 33 Canada Shut Out Again on New Capacity a closer look10 Committed to Canada: Start with Customers, Imagine the Future, Drive Forward SUMMER/FALL 2015 Lead, Reach & Connect Published for: The Automotive Parts Manufacturers’ Association 10 Four Seasons Place, Suite 801 Toronto, ON M9B 6H7 Tel: (416) 620-4220 Fax: (416) 620-9730 www.apma.ca Disclaimer: The articles presented in this publication represent the opinions of the authors and the interviewees. Their inclusion does not directly or implicitly denote concurrence or support by the Automotive Parts Manufacturers’ Association. Articles were reviewed by APMA staff and selected for inclusion as they represent issues of interest to professionals in our industry. Printed by: Matrix Group Publishing Inc. Please return undeliverable addresses to: 309 Youville Street Winnipeg, MB R2H 2S9 Toll free: (866) 999-1299 Toll free fax: (866) 244-2544 www.matrixgroupinc.net Canada Post Mail Publications Agreement Number: 40609661 President & CEO Jack Andress Publishers Peter Schulz Jessica Potter IN EVERY ISSUE 36 L eading, Reaching & Connecting: 2015 APMA & Industry Events 39 M eet APMA’s Newest Members 40 Introducing CAMM Members 41 A PMA Membership Has Its Benefits 43 Introducing the APMA/CAMM Membership Referral Program! 45 B ehind the Wheel of the 2015 Ford Edge 50 BUYER’S GUIDE Editor-in-Chief Shannon Savory ssavory@matrixgroupinc.net Editors Alexandra Walld awalld@matrixgroupinc.net Danelle Cloutier Meg Crane Account Executives Alex Incretolli, Angie Carroll, Bonnie Petrovsky, Brian Davey, Chad Morris, Colleen Bell, Darcy Lebel, Dawn Russell, Frank Kenyeres, Idel Galbete, Jim Hamilton, Lisa Ockenden, Miles Meagher, Nalini Singh, Rachel Purvis, Rick Dougay, Rick Kuzie, Rob Allan, Rob Gibson, Shalynn Ramsden, Tasara Tuturu, Victoria Somers Finance/Accounting & Administration Shoshana Weinberg, Pat Andress, Nathan Advertising Design Redekop, Lloyd Weinberg, Joe Strazzullo James Robinson accounting@matrixgroupinc.net Layout & Design Director of Marketing & Circulation Kayti Taylor Shoshana Weinberg Sales Manager - Winnipeg Neil Gottfred Sales Manager - Hamilton Jeff Cash Sales Team Leader Brian MacIntyre ©2015 Matrix Group Publishing Inc. All rights reserved. Contents may not be reproduced by any means, in whole or in part, without prior written permission of the publisher. The opinions expressed in this publication are not necessarily those of Matrix Group Publishing Inc. The Automotive Parts Manufacturers’ Association 5 UP FRONT APMA’s Board of Directors Barry Jones Chairman, APMA President Leggett & Platt Automotive Group North America 360 Silver Creek Industrial Drive R. R. #1, Tecumseh Lakeshore, ON N8N 4Y3 Tel: (519) 727-7000 Fax: (519) 727-7091 E-mail: bjones@lpautomotive.com Flavio Volpe President APMA 10 Four Seasons Place, Suite 801 Toronto, ON M9B 6H7 Tel: (416) 620-4220 Fax: (416) 620-9730 E-mail: fvolpe@apma.ca Joe Loparco Co-President AGS Automotive Systems 675 Progress Avenue Scarborough, ON M1H 2W9 Tel: (416) 438-6650 Fax: (416) 431-8775 E-mail: joel@agsautomotive.com Sam Alesio Managing Director, Motor Vehicle Division Tyco Electronics Canada Ltd. 20 Esna Park Drive Markham, ON L3R 1E1 Tel: (905) 470-4492 Fax: (905) 474-5520 E-mail: sam.alesio@ tycoelectronics.com Earl Hughson President & CEO MIS Automotive 174 West Beaver Creek Road Richmond Hill, ON L4B 1B4 Tel: (905) 707-2305 Fax: (905) 707-2304 E-mail: earlhughson@misautomotive. com Peter Leblanc Director, Automotive Sales NAFTA ArcelorMittal Dofasco 1330 Burlington Street East Hamilton, ON L8N 3J5 Tel: (905) 548-7200 x3360 Fax: (905) 548-4880 E-mail: peter.leblanc@ arcelormittal.com Roy Verstraete President & CEO Anchor Danly 2590 Ouellette Avenue Windsor, ON N8X 1L7 Tel: (519) 966-4431 x215 Fax: (519) 972-6862 E-mail: rverstraete@ anchordanly.com Keith Henry President Windsor Mold Group 444 Hanna Street East Windsor, ON N8X 2N4 Tel: (519) 258-3475 Fax: (519) 258-2473 E-mail: khenry@windsormoldgroup. com Jonathon Rodzik Corporate Sales Manager The Narmco Group 2575 Airport Road Windsor, ON N8W 1Z4 Tel: (519) 969-3351 Fax: (519) 969-8559 E-mail: jorodzik@narmco.com Greg Walton President & CEO Dynaplas Ltd. 380 Passmore Avenue Scarborough, ON M1V 4B4 Tel: (416) 293-3855 Fax: (416) 293-2684 E-mail: gwalton@dynaplas.com Frank Seguin President Magna Closures Inc. 520 Newpark Blvd. PO Box 354, Station Main Newmarket, ON L3X 4X7 Tel: 905-830-5829 Fax: 905-830-9340 E-mail: frank.seguin@magnaclosures. com Rob Wildeboer Chairman Martinrea International Inc. 30 Aviva Park Drive Vaughn, ON L4L 9C7 Tel: (416) 749-0314 Fax: (905) 264-3460 E-mail: rwildeboer@martinrea.com Derek Kuhn Vice-President, Sales & Marketing QNX Software Systems Ltd. 1001 Farrar Road Kanata, ON K2K 1Y5 Tel: (613) 271-9323 Fax: (613) 271-9349 E-mail: dkuhn@qnx.com Rob Kunihiro Co-Managing Director ABC Group 2 Norelco Drive Toronto, ON M9L 2X6 Tel: (416) 246-1782 Fax: (416) 246-1997 E-mail: robert.kunihiro@abcgrp.com Mark Stoddart Chief Technology Development Officer & Executive Vice-President of Marketing Linamar Corporation 287 Speedvale Avenue West Guelph, ON N1H 1C5 Tel: (519) 836-7550 Fax: (519) 837-6703 E-mail: mark.stoddart@linamar.com Stay Connected with APMA! It’s now easier than ever. With today’s age of mobile technology and social media, there are more ways than ever before to stay connected with the people and organizations that matter to you most. Take advantage of these opportunities to stay connected with APMA and have your voice heard! website, please contact APMA (www. apma.ca/blogs). APMA Blogs: Read along as industry experts post updates on APMA’s website about current issues affecting the automotive industry. Everything from environmental issues to international business dilemmas is covered in this space. If you have a login account, you can comment on blog posts and start a discussion with the author. If you are interested in blogging on the APMA LinkedIn: Social networking, the professional way. Keep connected with APMA through our LinkedIn group and get the same great updates in a more professional setting than other social mediums (search for Automotive Parts Manufacturers’ Association (APMA) – Canada). Twitter: Another social medium for you to stay connected with APMA. Check in from home or on the go with your smartphone (@APMACanada)! Join the discussion now! Steve Wilkins General Plant Manager Brose Canada Inc. 1500 Max Brose Drive London, ON N6N 1P7 Tel: (519) 644-5201 Fax: (519) 644-5290 E-mail: steve.wilkins@brose.com APMA Contact Information General Inquiries 10 Four Seasons Place, Suite 801 Toronto, ON M9B 6H7 Tel: (905) 620-4220 Fax: (905) 620-9730 www.apma.ca info@apma.ca Flavio Volpe President Ext.: 228 E-mail:fvolpe@apma.ca Vince Guglielmo Vice President Ext.: 233 E-mail: vguglielmo@apma.ca Shaun Cott Manager, Marketing & Membership Ext.: 224 E-mail: scott@apma.ca Glenda Tedesco Administrative Assistant Ext.: 223 E-mail: gtedesco@apma.ca Janet Soutar Executive Assistant Ext.: 227 E-mail: jsoutar@apma.ca APMA is Canada’s national association representing OEM producers of parts, equipment, tools, supplies and services for the worldwide automotive industry. To learn more about the association, its mission and values, leadership and more, go to www.apma.ca. The Automotive Parts Manufacturers’ Association 7 The 2015 APMA ANNUAL CONFERENCE & EXHIBITION A Personal Message from the Prime Minister of Canada I am pleased to extend my warmest greetings to everyone attending the 2015 Annual Conference & Exhibition of the Automotive Parts Manufacturers’ Association (APMA). Through decades of immense technological change, APMA has demonstrated leadership on issues affecting the OEM automotive supply manufacturing industry. The Government of Canada is committed to keeping Canada’s automotive manufacturing sector globally competitive and innovative. To this end, Budget 2015 announced the allocation of up to $100 million over five years, starting in 2015-2016, to support product development and technology demonstration by Canadian automotive parts suppliers through the new Automotive Supplier Innovation Program. It also extends the accelerated capital cost allowance for investment in machinery and equipment until the end of 2025. This year’s event promises to be better than ever, featuring an impressive range of seminars and keynote presentations and an exhibition that will showcase today’s best products and innovative technologies. I would like to commend the organizers for putting together a program that is a worthy reflection of the rapidly changing face of the industry. Please accept my best wishes for a rewarding meeting in Windsor. The Rt. Hon. Stephen Harper, P.C., M.P. OTTAWA 2015 A Personal Message from the Premier of Ontario On behalf of the Government of Ontario, I am delighted to welcome all of the delegates of the Annual Conference & Exhibition of the Automotive Parts Manufacturers’ Association. As Premier, I am proud of Ontario’s auto sector. We are one of the leading high-quality auto producing jurisdictions—with a highly skilled and educated workforce, strategic access to the North American market, a dynamic environment that supports innovation, and a culture of high-quality, award-winning manufacturing. These are reasons why the world’s top automakers, auto parts manufacturers and other allied industries choose to locate in Ontario. I am pleased to know that this year’s theme will speak to leveraging strategic assets to increase competitiveness. Events such as this are important because they offer a chance for industry players to discuss key issues, share insights and get to know the latest trends and technologies in the auto sector. Our government continues to be committed to a comprehensive approach to partnering with the auto industry, with a strong focus on quality and innovation, as we work to secure new investments and create new jobs for Ontario’s economy. Please accept my best wishes for an inspiring and productive conference. Kathleen Wynne Premier 2015 The Automotive Parts Manufacturers’ Association 9 a closer look Committed to Can The 2015 Chevrolet Bolt is designed to have a 300km battery range and feature amazing Connected Car technologies. T By Steven Carlisle, President and Managing Director, GM Canada Steven Carlisle. The customers we serve together Our top priority at General Motors (GM) is to put our customers at the center of everything we do. We focus on earning customers for life. Our company’s success depends on our relationships with our shared customers and with you, our valued suppliers. Put another way, the customer experience begins long before our vehicles make it to dealer showrooms. It begins with the decision to build a vehicle and involves every decision after that. Every part of the GM family has an impact on customer experience and every employee has a responsibility to look out for the customer. This is especially true for the purchasing and supply chain team working hand-in-hand with our suppliers to serve our customers. Quality plays a huge role in all of this and is an area of intense focus at today’s GM, just as it is for 10 www.apma.ca Summer/Fall 2015 our suppliers. We all know that working together to achieve the highest levels of product quality is fundamental to today’s auto business. It is the price of entry into the marketplace. Together with our suppliers, we are making it a powerful differentiator for GM. The proof is seen in our performance in a drum beat of various third-party evaluations. In the 2014 J.D. Power Vehicle Dependability study, GM had eight segment winners, more than any other automaker, and 13 models scored in the top three in their segment. In the 2014 J.D. Power Automotive Performance, Execution and Layout (APEAL) study, which measures how gratifying a new vehicle is to own and drive, eight GM vehicles scored in the top three in their segment, including the GMC Yukon, which won its segment. nada: Start with Customers, Imagine the Future, Drive Forward rolet Volt tion 2016 Chev The next-genera hicle. ve ic ctr lling ele is Canada’s top-se And in the 2014 J.D. Power Initial Quality Survey, six of our vehicles placed first in their segment, which was more than any other automaker for the second year in a row. We also had the most models (11) ranked in the top three in their segment. Right here in Canada, GM’s CAMI Assembly plant in Ingersoll, ON was awarded a Silver Plant Assembly Line Quality Award for the best plants in North and South America, in which the Chevrolet Equinox and GMC Terrain are built. We’re making some good progress. Our GM customers deserve the best and that is what we are delivering together. Imagining and experiencing the future Today, we are at the start of a technological revolution that is transforming the automobile. It is centered on the push to develop cleaner, safer, more energy-efficient vehicles for a rapidly expanding global auto market. But it also gives us the opportunity to make the automobile more exciting, more functional, and more fun for our customers to drive than ever before. Just as smartphones changed lives over the past decade, our customers expect a better, greener and more connected future in their automobile. New technologies are enabling dozens of innovations in design and performance, notably the development At GM, we’re on the frontline of connected car innovation, working with our key supply partners…as we work to develop these and other technologies… The Automotive Parts Manufacturers’ Association 11 on the coverCommitted to Canada: Start with Customers, Imagine the Future, Drive Forward of new and advanced powertrains, plug-in hybrids and full EVs that may one day help remove the automobile from the environmental equation. We’re taking innovation well beyond propulsion systems. Increasingly, we are using advanced controls across an array of vehicle sub-systems. We are replacing bulky mechanical controls with by-wire technologies similar to those used in modern aircraft. This allows for innovations ranging from electronically actuated braking, which shortens stopping distances, to electronically controlled steering, which offers drivers more responsive handling as well as improved fuel economy, and ultimately to active safety and automated driving solutions, starting with collision warning and avoidance systems. Innovations in connectivity are leading to rapid advances in infotainment—from advanced navigation to real-time traffic information and beyond—helping our customers get where they want to go safely and more efficiently. 12 www.apma.ca Summer/Fall 2015 Our industry-leading OnStar system already provides customers with, among other things, in-vehicle communications, hands-free calling, remote diagnostics, turnby-turn navigation, stolen-vehicle recovery tools, and now, 4G LTE mobile broadband technology. The 2015 Chevy Malibu marked the start of a new generation of connected cars and trucks when it became GM’s first vehicle equipped with 4G LTE technology. 4G offers mobile data speeds up to 10 times faster than 3G, allowing GM vehicles to act as Wi-Fi hot spots and allowing customers to connect up to seven different devices. We now have 4G LTE technology on more than 30 other Chevrolet, Buick, GMC and Cadillac vehicles; the largest deployment in the automotive industry. And speaking of connected, future vehicles will increasingly be connected, not only with their occupants, but also with other vehicles and even with the highways they travel on. Vehicle-to-vehicle communications (V2V) will combine with global positioning technology and advanced aviation-style transponders to minimize traffic congestion, reduce travel time and virtually eliminate collisions. At GM, we’re on the frontline of connected car innovation, working with our key supply partners, including many in great Canadian companies and universities, as we work to develop these and other technologies; we plan to be among the first to deploy them for our customers. In about two years, the all-new Cadillac CT6 will be the first vehicle to offer customers an advanced driver assist technology called Super Cruise, and in the same timeframe, the 2017 Cadillac CTS will be enabled with vehicle-to-vehicle communication technology. Super Cruise will offer customers a new type of driving experience that includes hands-off lane following, braking and speed control in certain highway driving conditions. The system is designed to increase the comfort of an attentive driver on freeways, both in bumper-to-bumper traffic and on long road trips. It’s an exciting time for our customers, just as it is for us, as we imagine the future and exciting new opportunities to transform the vehicle, while still competing and winning in the industrial environment. In order to do that, at the same time that we’re transforming the environmental profile of the vehicle itself, we’re reducing the environmental impact of manufacturing. I am proud to say that with our efforts toward waste recycling and moving to landfill-free status, we have cut our overall plant GHG emissions by half and along the way, our recycling activities have created a revenue stream of some $30 million per year as we resell the scrap metals—proof there’s economic opportunity in environmental protection. Working together in Canada We also know there is a great deal of interest in our future plans for assembly in Canada, as clearly, assembly anchors Canadian auto supplier activity. Since becoming president of GM Canada in late 2014, I have shared a number of community updates, as I felt it was important to lay out a much clearer timeline for product and investment decisions in Oshawa, ON and to highlight the positive progress we are making with our key partners. At GM Canada, we are building to market demand, producing two vehicles in our CAMI plant in Ingersoll on three shifts, producing some of the world’s best engines and powertrains on three shifts in St. Catharines, ON, and manufacturing six different vehicles at Oshawa Assembly on three shifts. It is well known that there are both shortterm and long-term decisions that we are working through in Oshawa, and we are now fully engaged with our partners at Unifor, four levels of government, our suppliers and our communities in that regard. We are not expecting to be deciding on any major new mandates or investments in Oshawa until well into 2016, following national negotiation with Unifor. We have outstanding strengths in Oshawa, including our leading flexible manufacturing capability and paint shop, which are in place with the support we have received from our government partners. Our highly competitive Canadian-based supply chain is an important asset and our amazing Oshawa employees continue to deliver industry-leading quality and productivity. continued on 14 The Automotive Parts Manufacturers’ Association 13 on the coverCommitted to Canada: Start with Customers, Imagine the Future, Drive Forward Advertise Here! The challenges before us are clear and we understand them well, but by working together constructively, we have a great opportunity to build a positive future in Oshawa. It is in all our best interest to ensure we have the most productive, high quality and cost competitive operations to best serve our customers. In the meantime, we will work together to address short-term challenges, including the changes announced more than two years ago. We will consolidate production of next generation rear-wheel drive Camaro at another facility. We will manage through that best by remaining positive and working together. While much focus has been placed on Oshawa, it is also true that every automotive assembly plant in our sector is constantly fighting to be productive and competitive for future investment. In that regard, we have much to celebrate in Canada as well. In February, we announced that GM is investing a further $560 million in our CAMI Assembly Plant in Ingersoll, ON to support the production of the next generation Chevrolet Equinox. This includes supplier tooling and it builds on $250 million of investment currently being completed at CAMI as well. This vote of investment confidence in Canada is a tribute to our outstanding employees and the positive work accomplished by working with our government partners over the past several years. Our Ingersoll plant is running fast, as we work to meet strong demand we are seeing in the North American crossover segment. Our St. Catharines engine and transmission plant is also working around the clock, supplying award-winning quality powertrains for our assembly plants in Canada and across North America. Also in February, I had the pleasure of addressing a group of almost 100 GM plant managers from across North America, who came to St. Catharines, ON to share learnings and see first-hand why our Canadian quality is top rate. Driving to the future We are also looking to the future with our new GM cars and trucks and the amazing technology advancements that our customers are going to enjoy over the coming decade, as we enter the decade of the Connected Car. At the Toronto International Auto Show, GM unveiled two new Chevrolet electric cars—the next generation Chevy Volt (Canada’s top-selling electric vehicle) and the all new Chevy Bolt EV Concept. The Bolt is designed to have a 300km battery range and feature amazing Connected Car technologies that not only make it a powerful Wi-Fi hot spot, but give it the ability to park itself and return to pick you up when summoned on your smartphone. We also announced in February that GM’s next generation pure electric vehicle, based on the Bolt EV Concept, will go into production and be available across Canada. New technology is the future of our industry and it’s what our customers crave. At our GM Engineering facility in Oshawa, ON, the only one of its kind in Canada, we already have an important role in designing the future of greener and more wirelessly connected vehicles. We also work closely with universities all across Canada to help develop breakthrough technologies we will commercialize. The automobile industry provides one of the largest and most exciting platforms for the commercialization of R&D, new technologies and innovative thinking. I know we can count on our valued suppliers as we continue to move forward together, drive change, and focus on our customers. ■ Did you know that Lead, Reach and Connect is distributed to thousands of automotive industry experts across Canada, the United States and the world? Don't miss out on your chance to advertise in the next edition, which will feature distribution at APMA’s annual Outlook Conference! There are many options available to fit every budget. For more information on rates and sizes, please contact (866) 999-1299 or sales@matrixgroupinc.net. 14 www.apma.ca Summer/Fall 2015 Feature By Michael Robinet, Managing Director, IHS Automotive Advisory Services Industry Analysis: Down the Road T The integration of new processes drives changes in equipment and tooling. There is no doubt that consumers are seeking greater speed and capability from their vehicles. Since the decline in oil prices that began in the summer of 2014, the tide has turned toward performance offerings. One view of consumer priorities during the last few major auto shows drives this point home. Behind the scenes, the industry is undergoing significant changes, as it has essentially stepped on the accelerator to integrate new technologies as quickly as possible. The new product cadence paradigm is 10–5–2.5–1. This new mantra resonates with an industry that is being asked to rush innovations into the fleet faster than ever before. Let’s break this down. “Ten” represents the number of years between major shifts in build processes for new architectures. Simply stated, the build process is the order in which parts and systems are coordinated to build the vehicle. Many call this “shingling.” The integration of new processes drives changes in equipment and tooling. Given the cost of a new body shop or paint shop, OEMs need to carefully ensure these expensive retooling exercises are justified. continued on 16 The Automotive Parts Manufacturers’ Association 15 featureIndustry Analysis: Down the Road With these new architectures come new materials, assembly processes and joining techniques. Every 10 years seems to be the new timeframe for revised processes, a decline from the 12 to 14 years we have witnessed from some OEMs over the past couple of decades. This leads to the number “five.” Though for years the Japanese followed this timing for major/all-new revisions between substantial build process changes (see “10” on the next page), others are now following suit to keep pace. Non-Japanese OEMs have now structured their development processes to coordinate with this timing, mainly due to the pace of new innovations required in the fleet. Every five years, one should expect all-new exterior and interior designs, as well as slight shifts in dimensions and powertrain packaging. What we affectionately call a structural “all-new.” Innovation 16 www.apma.ca Summer/Fall 2015 integration at this increased pace is driven by three major factors: • Legislation demanding improved fuel economy and reduced emissions; • Globalization and economies of scale at the platform level, which is spurring an inter-region coordination of platform revisions to ensure all are in relative lockstep; and • The consumer is spurring the industry to innovate more quickly as they experience the pace of other industries touching their lives. Then we have the new “2.5” figure. Symbolically, this is more than just midway through a five year major/all-new product revision. As recently as 15 years ago, many OEMs treated the 2.5 figure as an opportunity to add a new body style or revise front and rear fascia/lighting. Little thought was given to changing sheet metal in the middle of a cycle. This paradigm then changed as Ford followed many of the Japanese mass market offerings with a major revision of the 2009 Fusion. Though the 2006 Fusion was an allnew offering, several improvements were identified early in the program. This major/ moderate, as the industry now dubs these revisions, impacted the interior, exterior, powertrain and even suspension/chassis revisions. Changes this soon after a new offering is released were previously unheard of in Detroit, MI. Now, it is the standard for virtually every OEM. Within the mass market, one is not likely to see an offering untouched for five years again. Lastly is the number “one.” In years past, OEMs would introduce new colours, seat trim, and occasionally an option, if it did not adversely impact hard tooling. In an effort to integrate innovations more quickly, annual changes in content and features have become the new mantra. Especially in electronics, the pace of mobile phones, connectivity expectation, and the drive for 100 per cent uptime performance is spurring the industry to annually ramp up the level of changes integrated. This includes the integration of new software and hardware improvements as well as ensuring all systems work harmoniously. The industry should expect an increase in new content integration each year, as OEMs seek to achieve competitive parity and to not be left behind. What is the result of this accelerated pace? The OEMs and suppliers that can integrate innovation effectively in an increasingly complex vehicle on a global scale will attain success, and those who cannot will fall behind. Strong supplier partnerships, seamless boundaries, and coordination are the key modes of profitably being achieved from this accelerated pace. One element is assured—the industry will not slow down. ■ In an effort to integrate innovations more quickly, annual changes in content and features have become the new mantra. Especially in electronics, the pace of mobile phones, connectivity expectation, and the drive for 100 per cent uptime performance is spurring the industry to annuallyramp up the level of changes integrated. The Automotive Parts Manufacturers’ Association 17 Feature By Flavio Volpe, President, APMA APMA’s Strategic Focus APMA meets with Canadian Prime Minister Stephen Harper. W “What do you do?” This was a pretty straightforward question put to me by a prospective new member I was courting. “I’m sorry; we’ve never come across the APMA.” That was a heck of a way to dive right into why I was there in the first place. We are an industry association—your industry association—yet a very successful transnational’s senior management team had not heard of us before I called them to ask if I could visit with them. It made me think about answers with clarity and made me think that perhaps that this reflection was a good subject for an update to all of you. Of course, you know we organize commercial networking events like our ever-popular Annual Conference & Exhibition. This year, we were able to put together a great lineup of senior OEM, Tier 1, Industry Analysts and government officials to come together and reflect on the key issue continued on 20 APMA President Flavio Volpe presents APMA’s perspective on the impact of low oil prices on the Canadian economy in Ottawa. This year, we were able to put together a great lineup of senior OEM, Tier 1, Industry Analysts and government officials to come together and reflect on the key issue. facing us today. The Automotive Parts Manufacturers’ Association 19 featureAPMA’s Strategic Focus Ontario Finance Minister, Charles Sousa, speaks at the APMA Outlook Conference. 20 www.apma.ca Summer/Fall 2015 facing us today—the Canadian Automotive industry’s struggle with competitiveness in an ever-changing global market. The Annual Conference & Exhibition is an event you are all familiar with and appears to strike at the heart of what you would like us to organize for you and your businesses. But we do a lot more than that and the Outlook and regional events we put on in other parts of the year for issues, debate and networking. In partnership with the Department of Foreign Affairs and Trade Development (DFATD) and the Province of Ontario, we organize trade missions and tech days to countries, like India and Mexico, and to companies, like Bosch, Toyota, Ford and Magna. We feature emerging technologies through our Connected Vehicle Program, showcasing APMA members who invested in the Lexus RX350 demonstration car that our partners at Toyota donated to our efforts. We lead delegations of companies to IZB in Germany and to the Indian Auto Show, and we make individual efforts for our members who ask us to intervene on their behalf with potential customers. But you probably know all of that. What you might not know—and what was most interesting to my audience in the pitch meeting I was at—is that we spend a great deal of time lobbying all levels of government on your behalf. Have you enjoyed the benefit of the federal government’s Accelerated Capital Cost Allowance for your capital reinvestment needs? Are you concerned that the Automotive Innovation Fund’s profile may be uncompetitive when contrasted with programs available to your OEM customers south of the border? We think so; that’s why we take your arguments to the Department of Finance in Ottawa. In fact, we took the discussion to the Honourable Joe Oliver, Minister of Finance in person and we brought a selection of you into a discussion with him and his officials. Almost to the exclusion of Canada, recent OEM investments in incremental capacity in NAFTA have gone to Southeast U.S. destinations and Mexico. There are many reasons why this is the fact, notwithstanding Canada and Ontario’s public investment in the automotive industry over the past decade or so. Some of those are matters of investment attraction strategy, and we work on a very regular basis with the Ontario Ministry of Economic Development, Employment and Infrastructure (MEDEI). Whether that’s our daily interaction with the Automotive unit or our meetings with the Deputy Minister and Assistant Deputy Minister to work on threats and opportunities, or whether it’s organizing an industry consultation with the Honourable Brad Duguid, Minister at MEDEI, APMA is your voice with our most committed government partners. The Honourable James Moore, Canada’s Minister of Industry once asked me what was the most important thing he could do for our industry from his podium in Ottawa, ON. I responded that he should make it clear to our current OEM partners that the government of Canada is committed to their long-term investment here. To his credit, he proactively has done exactly that in global automotive headquarters. Led by an automotive unit that is an active participant in the dynamics of the industry, Industry Canada and APMA work closely in their role as stewards of the Canadian Automotive Partnership Council and in their partnership for all of our programming and market analysis and growth. Over the past year, Ontario has enacted or introduced several policy initiatives and proposed new legislation that will affect you all in varying degrees. Just as important, these initiatives affect the lens through which your OEM customers evaluate the province for new and renewed investment. As you calculate the cost and benefit of the Ontario Retirement Pension Plan (ORPP), know that the APMA has held meetings with the Ministry of Finance with specific regard to the treatment of equivalent plans currently in place by our members. We led a selection of APMA members in a meeting with the Honourable Charles Sousa, Ontario Minister of Finance, What you might not know—and what was most interesting to my audience in the pitch meeting I was at—is that we spend a great deal of time lobbying all levels of government on your behalf. continued on 23 The Automotive Parts Manufacturers’ Association 21 featureAPMA’s Strategic Focus APMA takes part in Federal Government CCA extension announcement in Windsor. expect us to make sure your interests are being addressed with your federal and provincial regulators. We believe consistent and competitive emergency leave provisions for employees could have just as much impact as your dedication to continuous process efficiency in your quest for competitiveness, and we fight for it every day. Your APMA—the one that aspires to serve you and learn from you—is your partner in telling and selling the story of a competitive Canadian automotive sector. We want you be a part of it, to help educate us on your most urgent needs and opportunities and to join us in the effort to keep our interests and the interests of the 80,000 people we employ at the top of everyone’s mind, while we fight to keep the country in the mix in the fast-growing global automotive market. ■ APMA/CAMM booth at CIIAM in Mexico City. and we had a subsequent meeting with the office of the Associate Minister of Finance responsible for ORPP and the senior officials responsible for its implementation, including the Assistant Deputy Minister. The Ministry of Environment and Climate Change (MOECC) and the Premier of Ontario announced that the province will implement this year its 2008 commitment to join the Western Climate Initiative by way of launching a Cap and Trade System. The APMA has had consultation with the MOECC in partnership with MEDEI and has committed its participation and support to constructive policy development so that our members’ contributions and needs are properly recognized. Those are the big things that illustrate where we spend our time and your resources helping to inform lawmakers about the contributions and investments automotive parts manufacturers make every day. Little things? We spend time with the Ministry of Labour on Workplace Safety and Insurance Board initiatives and the Stronger Workplaces for a Stronger Economy Act that deals with how responsible you might be for the mistreatment of temporary employees by the agencies you hire. Are you worried about your energy costs? We have offered to work with the Ministry of Energy on future adjustments to the Global Adjustment Program for usage planning and costs savings. Worried about your U.S. Currency input costs and the price of oil? We have appeared before the House of Commons Standing Committee on Finance and pleaded your case. The list of advocacy work on your behalf is exhaustive because we believe while you are hard at work pitching and serving customers, you The Automotive Parts Manufacturers’ Association 23 BACKGROUNDER Understanding Your Public Sector Partner T The concept of government represents a dichotomy in that it is both simple and complex. The word “government” is simply defined as “the group of people who control and make decisions for a country or state.” Following from that simple definition, it is not surprising that most companies have two basic views of government: one as a rule maker; the other as a tax collector. Yet, for all that simplicity, the way that government operates is somewhat complex. With the various levels of government, further comprised of numerous departments, ministries, bureaucrats and politicians, understanding the government machine can be a difficult task. This article will present a clearer picture of how government operates and is structured. More importantly, it will also present government in a whole new, positive light. Government structure: Political versus bureaucratic Let’s start by identifying the three levels of government: Municipal, Provincial and National (i.e. Federal). For the purposes of our industry, we will focus on the Provincial and Federal levels. The first important thing to know is the difference between politicians and bureaucrats. Politicians are elected officials who we elect into office by casting ballots on Election Day. The Prime Minister and the Premier are the respective leaders of the Federal and Provincial governments. continued on 26 Ontario Economic Development Minister Brad Duguid and Ontario Finance Minister Charles Sousa talk automotive with APMA members. The Automotive Parts Manufacturers’ Association 25 featureGovernment 101 in Canada Both a Prime Minister and a Premier are supported by an inner circle of fellow politicians known as a Cabinet. Cabinet members are Ministers, and each Minister is the respective head of a main government department (Federal) or ministry (Provincial). The Prime Minister, Premiers, and Ministers each have a Political Office that is run by key appointed staff members, including a Chief of Staff, Directors, and Policy Advisors. The responsibilities of a Political Office are to: • Advise and support Ministers on stakeholder issues, key events, media and political dynamics. • Develop policies and enact legislation into law. • Advise bureaucracies on the government’s political priorities to keep them informed while they develop policy. • Liaise with stakeholders, build relationships, and build databases of information that help guide the decision/policy making process from a top-down approach. • Work on inter-ministerial/departmental political teams that, in turn, work on government priorities. Political staffers are partisan members of the political party (e.g. Liberal, Conservative or New Democrat) that we elect to run the government. They “staff ” Ministers when they are attending events and meeting with stakeholders. Bureaucrats, or civil servants, are nonelected officials who have been hired to deliver the programs and services that flow from policies and legislation. The head Bureaucrat is known as the Secretary of Cabinet and is the civil servant equivalent to a Prime Minister or Premier. The Secretary of Cabinet is, in turn, supported by a core group of civil servants called Deputy Ministers. A Deputy Minister is the head of a Department or Ministry and essentially mirrors that of a Political Minister. A Deputy Minister has an office that is run by a large group of civil servants that includes Assistant Deputy Ministers, Director Generals, Directors and Managers with an even larger group of support staff below them. The main bureaucratic responsibilities include: • To support and advise Ministers and Political Staff as to the rules that govern how policies are developed. • Develop policy, liaise with stakeholders, build relationships, and build databases of information that guide the decision making process from a bottom-up approach. • Disburse funds, review proposals, and work on inter-Ministerial/Departmental teams that work on complex government responsibilities. Bureaucrats are Non-Partisan and remain in their positions regardless of which Political Party is elected to run the government. And while Bureaucrats may attend events and meetings with stakeholders alongside Ministers and Political Staff, they are not there to offer support in a “staffing” capacity. Key departments and ministries of interest to APMA In terms of the taxes, rules and regulations side of government, the main Ministries and Departments of interest to the APMA include: • Taxes: Canada Revenue Agency (Federal), Ministry of Finance (Provincial). • Environment: Rules and Regulations. 26 www.apma.ca Summer/Fall 2015 Ministry of Environment and Climate Change officials discuss Cap and Trade program design with APMA members. • Labour and Human Resources: Practices and Standards. • Transportation: Regulations. • Trade: Tariffs and Regulations. These are all generally viewed as being prohibitive and negative. But government is much more than just taxes and rules. Based on the current economic environment and priorities, government also has the potential to also be an investor, funder, and financer through multiple processes: • Tax credits for research (SR&ED). • Tax writes-offs. • Grants. • Loans. • Trade show funding. • HR funding. • Research funding. Just like the economic environment, however, these priorities are frequently being changed and modified. That’s one reason why incorporating a sound Government Relations strategy into your growth plan can transform government into an engine for your company’s growth. The following points represent a high-level overview of how Government Relations works: • Know and understand the issue, from both yours and the government’s perspectives. • Know what agency/department/ministry is responsible for it. • Know the process involved to engage government. • Know the key contacts. • Know when and how to approach key contacts. With the various levels of government, further comprised of numerous departments, ministries, bureaucrats and politicians, understanding the government machine can be a difficult task. continued on 28 The Automotive Parts Manufacturers’ Association 27 featureGovernment 101 in Canada Budget consultations with Federal Finance Minister Joe Oliver. Your Resource There are many government resources available to APMA members, including Industry Canada; Foreign Affairs & International Trade Canada; Export Development Canada; Business Development Bank of Canada; Natural Resources Canada; National Research Council of Canada; the Ministry of Development of Trade (MEDIT); the Ministry of Training, Colleges, and Universities; and the Ministry of Environment. For more information, go to www.apma.ca/industry/government. 28 www.apma.ca Summer/Fall 2015 • Know how to move forward in process to reach favourable decisions. APMA is working diligently to educate its members as to the most effective ways to work with government. I, along with support from my APMA team, am responsible for representing all of our members and surrounding industry companies to all levels of government. We speak from a pan-industry perspective. And while APMA endeavours to assist its members on company-specific issues, we also have associate member companies such as AVM Equity and Mentor Works, who are better able to serve you with their specialized expertise and direct relationships with government that have been built over many years of working together. APMA will continue to educate its members by running webinars, hosting speaker panels at events, providing relevant literature and reports, and more. Please visit www. apma.ca or contact APMA for more information on how to further educate yourself on working with government for the growth and success of your business. ■ Feature By Craig Ceppetelli, Portfolio Business Advisor, National Research Council of Canada Canada’s National Research Infrastructure: A Strategic Asset for Canadian Automotive Parts Manufacturers S Strategic assets include vital capabilities and resources that an organization can leverage in order to create value for its customers, to create competitive advantages, and to ultimately succeed in the marketplace. But do strategic assets necessarily need to be owned by an organization, and could a company access assets and acquire capabilities from outside partners to gain that competitive edge? This is exactly what Magna International Inc. did by leveraging the National Research Council of Canada’s (NRC) expertise and infrastructure to validate the performance of their design. Magna’s goal In 2014, Magna was entrusted by one of its customers to design, engineer and build prototype parts using a current model medium-sized sport utility vehicle, with the goal of improving the aerodynamic performance of these parts to meet a target drag coefficient. Magna’s initial challenge was to select a partner that could offer support through this multi-stage project. ABOVE: As part of NRC’s vehicle lightweight efforts, two aluminum plates are being joined using friction-stir welding technology. TOP LEFT: Wheel rollers, just visible below this front wheel, improve simulation of the flow around the wheel wells and underbody. continued on 30 The Automotive Parts Manufacturers’ Association 29 featureCanada’s National Research Infrastructure: After reviewing several potential candidates, Magna chose to work with NRC, a partner with a proven track record and world-class aerodynamics expertise and facilities. NRC’s strategic assets As Canada’s research and technology organization, NRC has been offering innovative support, strategic research, and scientific and technical services to Canadian industry for nearly a century. Adapting to changing times, NRC has aligned its priorities with the areas of strategic importance to Canada’s economy, helping organizations convert their cutting-edge research and technology into market-ready solutions. NRC’s strategic assets include experienced researchers and first-class R&D facilities that cater to the automotive and surface transportation sector, including six wind tunnels for aerodynamic testing. R&D & Product Development The National Research Council of Canada (NRC) is the Government of Canada’s premier research and technology organization (RTO). Working with clients and partners, the NRC provides innovation support, strategic research, scientific and technical services. NRC offers Canadian businesses access to unique research infrastructure as well as the experts to optimize its use. This includes aerospace engineering and manufacturing, astronomy, high-throughput DNA sequencing, neutron beam facilities, photonics, biotechnology and nanotechnology, to name a few. Access to these facilities allows innovative businesses to pursue blue sky R&D opportunities in Canada, while lowering the risks associated with R&D and accelerating product development. For more information on the complete range of services and facilities available at NRC, please visit www.nrc-cnrc.gc.ca or contact Craig Ceppetelli, portfolio business advisor of automotive and surface transportation, at craig.ceppetelli@nrc-cnrc. gc.ca or at (613) 998-9388. 30 www.apma.ca Summer/Fall 2015 A Strategic Asset for Canadian Automotive Parts Manufacturers NRC’s nine-metre wind tunnel NRC’s nine-metre wind tunnel is a secure facility capable of accommodating a variety of ground vehicle models. Operated by experienced engineers and technicians, it is regularly used by international original equipment manufacturers (OEM) from the aerospace and ground transportation industries. Measuring 9.1 metres high, 9.1 metres wide, and 22.9 metres long, this wind tunnel allows for the testing of full-scale vehicles. The facility has a proven record of adapting to a variety of unique test requirements and offers a large-scale testing arena. The ability to directly measure drag in a repeatable environment enables significant performance gains through the summation of several small improvements. Minimizing drag The aerodynamic package Magna wanted to test consisted of four components: 1. A grille shutter system; 2. Front air dam; 3. Rear diffuser; and 4. Rear spoiler. During Phase 1, the effect of each component on aerodynamic forces was evaluated separately while optimizing the geometry for minimum total vehicle drag. The combined effect of the optimized components was evaluated to measure how the components interacted. Phase 2 consisted of several incremental changes to the prototype components in order to ensure an optimized system. NRC provided two technical specialists and a test engineer to aid in the conception and execution of these tests. Data collected using a current model sport utility vehicle was accumulated in the OEM’s database and was used to estimate the impact on all vehicles incorporating active aerodynamics in the fleet. Magna leverages Canada’s national research infrastructure One of Magna’s strategic assets is its long-standing and successful relationship with NRC. Over the years, Magna has often been able to leverage this relationship to gain access to expertise and equipment that Canada’s national research infrastructure provides. In this case, the results of the wind tunnel tests conducted at NRC enabled Magna to show its customer that the prototype designs for the aerodynamic package met or exceeded targets for drag reduction in real-world, on-vehicle tests. Pleased with the results, the customer commended Magna for producing an excellent demonstrator and NRC for producing reliable and trustworthy data. The result of this work with NRC has given Magna the ability to partner with its customer for future aerodynamic development work. In the end, it was a win-win situation for everybody involved. This example demonstrates the opportunity for APMA members to leverage shared technology assets like NRC to their benefit. ■ ...the results of the wind tunnel tests conducted at NRC enabled Magna to show its customer that the prototype designs for the aerodynamic package met or exceeded targets for drag reduction in real-world, on-vehicle tests... The result of this work with NRC has given Magna the ability to partner with its customer for future aerodynamic development work. Canada’s Strategic Assets at the Automotive Industry’s Disposal A vehicle model is craned into the NRC nine-metre wind tunnel test section through the open roof. The turntable, which enables testing of the vehicle in yawed wind conditions, and the Ground Effect Simulation System (GESS) belt, are visible below the car. A nine-metre wind tunnel and experienced engineers and technicians represent an example of numerous strategic assets that NRC offers Canadian industry. To gain a competitive advantage, automotive parts manufacturers and suppliers can access Canada’s national research infrastructure in these and other areas: • Lightweighting vehicles using aluminum and multi-materials: NRC’s experts and its Aluminum Technology Centre can help automotive parts manufacturers make lighter, more cost-effective and more environmentally-friendly products. • Vehicle propulsion technologies to improve fuel efficiency: NRC’s experienced researches and first-class facilities can help parts suppliers develop technologies for downsized internal combustion engines, advanced transmissions, lowcost electric motors and batteries, as well as fuel cell vehicles. • Advanced design and manufacturing: NRC’s specialists in computer simulation and additive manufacturing, working in state-of-the-art labs, can help parts suppliers improve product design and reduce both cost and time required for design and manufacture. • Introducing biomaterials into automotive parts: NRC’s experts, using specialized facilities, work with parts suppliers to develop flexible and cost-effective manufacturing processes that allow incorporating non-food biomass-based materials into vehicle parts. The Automotive Parts Manufacturers’ Association 31 Feature By Pete Mateja and Tony Faria, Co-Directors, Office of Automotive Research, Odette School of Business, University of Windsor Canada Shut Out on New Capacity Again T Global automotive assembly investment rises 36.9 per cent The Annual Major Automotive Assembler Investment Announcements Report, prepared by the Office of Automotive & Vehicle Research (OAVR) at the Odette School of Business, University of Windsor, and Automotive Parts Manufacturers’ Association (APMA), reports that $24.1 billion in automotiveassembler new capacity investments were announced globally in 2014. This is a 36.9 per cent increase from the $17.6 billion reported in 2013. China, the world’s largest automotive market, led the way again with 52.7 per cent ($12.7 billion) of all assembler new capacity investments announced in 2014. The U.S. was a distant second last year, with new capacity investment announcements of $4.2 billion, up substantially from 2013. An amazing 59.5 per cent of all new capacity investment announcements made over the past four years (a total of $48.7 billion) have been in China. The next three leading countries in new capacity investments over the past four years were Mexico ($9.3 billion), the U.S. ($7.7 billion) and Brazil ($7.6 billion). Canada once again received no new assembler capacity growing investment announcements during 2014. Our nation has had no new capacity investments in four of the last five years and, over a four year period from 2011 to 2014, has received only $180 million or 0.2 per cent of all global new capacity investment announcements. As with past reports in this series, only investments in new assembly plants or to increase capacity at existing plants are included. Investments to upgrade plants that have no effect on capacity are not included. As well, investments by assemblers in OEM owned parts plants are excluded. New capacity growing announcements from the Detroit 3 in 2014 were made for China, Brazil, Russia and the U.S. Total global vehicle production was 85.6 million units in 2014, up 4.5 per cent from 2013. North American light vehicle assembly will likely establish an all-time high by 2016. The majority of new vehicle assembly capacity in North America will be going to the southern U.S. and Mexico and continued on 34 The Automotive Parts Manufacturers’ Association 33 featureFaria and Mateja Report Canada Shut Out Again on New Capacity will be added by the Japanese, South Korean and European assemblers. Future assembly growth from the Detroit 3 will be coming outside of North America. After a down assembly year in 2013, vehicle assembly in Canada was up 4.8 per cent to nearly 2.5 million units in 2014 in a North American market that grew by 5.9 per cent. Canada has declined from a high of 17.6 per cent of North American assembly to 14.2 per cent in 2014. Automotive jobs in Canada remain below the levels reached before the downturn of 2009. 34 www.apma.ca Summer/Fall 2015 The OAVR operates within the Odette School of Business at the University of Windsor. It has been serving the Canadian automotive and automotive components markets since 1995. ■ in every issue Leading, Reaching & 2015 APMA & Industry Events February 3 & March 4, 2015 Mexico-Focused Webinars Mexico’s role as an emerging export hub for automobiles continues to grow as the world’s largest vehicle manufacturers announce new assembly investments in the country. As global OEMs place more emphasis on increasing their local supply base and in driving down logistics costs, there are great opportunities for companies willing to follow their clients by investing in Mexico. On February 3, in collaboration with EDC & DFATD, APMA hosted the webinar Mexico’s Automotive Market – Factors to Consider for Success to equip attendees with the information they needed to know before investing in the Mexican market. Participants learned about the keys to success and critical factors to consider before making an investment. On March 4, in collaboration with Entrada Group, APMA hosted an educational webinar for companies who have expansion to a Mexican production facility on their roadmap. Entrada Group has more than one dozen years of expertise in helping manufacturers transition to Mexico. This webinar focused on the opportunities suppliers can realize in Mexico without having to assume unsustainable risks and costs. April 15 & May 6, 2015 APMA Human Resources Council Webinars In early 2015, APMA announced its new Human Resources Council, which will focus on discussing issues relevant to Canadian automotive suppliers and identifying strategic initiatives to pursue. An outcome of the Council was to share outcomes and recommendations with members. APMA’s strategic partner, Prevue HR, is a supporting member of this Council and provided educational webinars on key human resource-related issues and hiring support services such as APMA’s Auto HR Job Board. APMA and Prevue hosted the HR Branding & Social Media for Small to Mid-Sized Businesses on April 15 and How to Know Which Candidates Fit Your Needs on May 6. April 16, 2015 Canadian Innovation Day at Robert Bosch North America The Canadian Consulate General in Detroit, in partnership with APMA, invited Canadian automotive industry stakeholders to participate in the Robert Bosch Innovation Day at the company’s Farmington Hills facility. This opportunity was offered to Canadian suppliers and research institutions who were seeking to gain exposure and access to Robert Bosch. Consideration was given especially to those who could offer a new product, process, material or other innovation. A team from Bosch was present to review applications and select companies/organizations of interest. April 21-24, 2015 Automotive Manufacturing Mission to Mexico The Offshore Group invited key decision makers from automotive manufacturing companies throughout North America to explore the latest trends, ideas and best practices for expanding into Mexico. This was an opportunity for decision makers who were considering expanding into Mexico to tour OEM, Tier One and Tier Two facilities, meet with manufacturing managers currently operating in Mexico, experience local lifestyle and culture, and receive a customized cost analysis. 36 www.apma.ca Summer/Fall 2015 This event started in Monterrey, Nuevo Leon, and ended in Saltillo, Coahuila, the largest automotive manufacturing region in Mexico. Participants learned how to structure operations in Mexico, how to obtain financing, how to minimize risk factors, and more. May 20-22, 2015 2015 JSAE Annual Congress An exposition featuring automotive technology for engineers and researchers that began in 1992, JSAE has expanded to attract 450 companies and over 80,000 visitors annually. This is Japan’s only comprehensive exposition of automotive technology. Manufacturers of automobiles, trucks, heavy machinery parts and materials, testing and measurement equipment, software, car electronics, and related companies worldwide converge to share and exchange information on their latest technologies and innovations. The Canada Pavilion was among the most popular pavilions in 2013 and 2014. June 15-19, 2015 Silicon Valley APMA Lexus Connected Vehicle Tour APMA’s Lexus Connected Vehicle will be heading to California for a series of supplier days promoting Canadian companies and technologies in the Connected Vehicle space June 15-19, 2015. The mission will include visits with Delphi, Honda, FIAT/Chrysler, Tesla and Robert Bosch, to name a few, and will also include a reception event in cooperation with Connecting: the Autotech Council to attract other key industry executives. In consultation with its Regional Network and EDC, the Consulate General of Canada is working to identify Canadian companies who meet the technology interests of the companies being visited on the tour. August 3-6, 2015 CAR Management Briefing Seminars For nearly 50 years, the CAR Management Briefing Seminars have delivered thought leadership on the most important issues facing the automotive industry—and the strategies to succeed. This year marks the 50th CAR MBS. With plenty of networking and exhibiting opportunities, this event is a great way to connect and interact with leaders in the automotive industry. The 2015 event will be held at the Grand Traverse Resort and Spa in Traverse City, MI. September 2015 APMA Annual Golf Tournament The 2015 tournament will return to Granite Ridge Golf Club in Milton, ON—a 6,500 yard 36-hole golf facility located at the foot of the Niagara Escarpment. A “Scramble” play format will be used with a shotgun tee-off, making this event suitable for golfers of all skill levels. Following the round of golf, dinner will be held in the club house, prizes will be distributed, and guests will enjoy a relaxed environment for networking. Further details will be announced as the event approaches. September 28-October 1, 2015 Canadian Manufacturing Technology Show (CMTS) Held at the International Centre in Mississauga, ON, CMTS is one of Canada’s largest manufacturing events. More than 8,000 manufacturing professionals attend CMTS to discover the latest advancements in machine tool, tooling, metal forming and fabricating, advanced manufacturing including 3-D printing/additive manufacturing, automation, design engineering and plant management segments from over 700 potential suppliers. CMTS provides attendees from all areas of manufacturing with a hands-on, flexible, learning environment of revolutionary technologies. Attendees will experience more than 3,000,000 lbs of manufacturing equipment in action. Fall 2015 APMA Annual Outlook Conference Produced annually in partnership with Export Development Canada, APMA’s Outlook Conference is intended to provide a macro review of economic conditions and focus more specifically on automotive conditions, examining key competitiveness issues being encountered by Canadian manufacturers in the current global economic landscape and what to expect in the near future. This is an opportunity for those who are concerned about automotive manufacturing competitiveness in Canada to meet and network with industry colleagues and hear insights from key industry and government officials. Further details will be announced as the event approaches. ■ Visit www.apma.ca/calendar for more details on these past and other upcoming events. The Automotive Parts Manufacturers’ Association 37 in every issue Meet APMA’s Newest Members Please join us in welcoming the following companies as new members of APMA. There is so much for APMA to do, from trade agreements, to leveraging new technologies, to pursuing government support programs for our industry. The only way we can have the resources to get it all done is through memberships. We salute these new members, along with all of our faithful existing members, who continue to provide us with their support. ASSOCIATE MEMBERS Brave Control Solutions Inc. 4520 Rhodes Drive, Suite 500 Windsor, ON N8W 5C2 Representative: Jamie Fryer, Sales Alternate: Brent McPhail, President Tel: (519) 974-9955 Fax: (519) 974-9954 E-mail: jfryer@bravecs.com www.bravecs.com Products: Systems integrator, controls engineering, automation services, motion controls, PLC programming and robotics. Buckland Customs Brokers Ltd. 1645 Bonhill Road, Unit 3 Mississauga, ON L5T 1R3 Representative: Karin Muller, Vice President Alternate: John Merrylees, COO Tel: (905) 565-9363, ext. 4608 Fax: (905) 853-7564 E-mail: karinmuller@ bucklandcustoms.com www.bucklandcustoms.com Products: Provider of customs brokerage services, freight forwarding warehousing, customs consulting and trade managed services. G4 Apps Inc. 378 Lakeshore Road West Oakville, ON L6K 1G1 Representative: Bob Burrows, CEO Alternate: Sylvain Louchez, VP Engineering Tel: (416) 807-7129 E-mail: bob.burrows@g4apps. com www.g4apps.com Products: Connected vehicle technologies and services. German Automotive Business Corporation 80 South West 8th Street, Suite 2000 Brickell Bayview Miami, FL, USA 33130 Representative: Markus Doenni, President Alternate: Hubertus von Laer, Vice President Tel: (305) 423-7012 E-mail: markus.doenni@gabcorporation.com www.gab-cororation.com Products: Training, audit and consultancy services for automotive industry standards. Niagara Region - Economic Development 2201 St. David’s Road West 3rd Floor, Campbell East Thorold, ON L2V 4T7 Representative: Bob Seguin, Director, Economic Development Alternate: Tim Reynolds, Manager, Business Attraction Tel: (905) 685-4225, ext. 3673 Fax: (905) 688-5907 E-mail: bob.seguin@ niagararegion.ca www.niagaracanada.com Products: Business development office focused on the development and growth of Niagara’s automotive and transportation equipment sector. Studio 63 Inc. 2235 Robertson Road Ottawa, ON K2H 5Z2 Representative: Miles Hammond, President Tel: (613) 868-4484 E-mail: miles@studio63.ca www.studio63.ca Products: Development of future tech concept vehicles and automotive bucks. Putting new and upcoming technologies into vehicles. Tianhe Mechanical Manufacturing Co. Ltd. Tieling City High-Tech Development Zone Liaoning, China Representative: Juner Lu Alternate: Sirui Song Tel: 00 86 24 78861319 Fax: 00 86 24 78861814 E-mail: thjx@tlth.com.cn www.tlth.com.cn Products: Automotive engines, transmissions’ parts and components, and aluminum alloy castings. Walter Surface Technologies 5977 Trans Canada Highway Pointe-Claire, QC H9R 1C1 Representative: Ryan Boyd, Market Specialist Alternate: Danny Tardif, Automotive Sales Specialist Tel: (800) 363-7368 Fax: (514) 630-2828 E-mail: rboyd@walter.com www.walter.com Products: Two main product lines: 1) A complete line of metalworking tools and systems, including abrasives, weld prep and power tools; and 2) our BIO-CIRCLE division produces industrial chemical cleaning and surface treatment solutions that are environmentally-friendly alternatives to traditional solvents. Perfect for the manufacturing process and industrial parts washing systems. REGULAR MEMBERS Dovercourt Management Corporation 354 Humberline Drive Etobicoke, ON M9W 5S3 Representative: Jeff Battiston, Technical Sales Rep Alternate: Ed Astrauskas, COO Tel: (416) 213-1706 Fax: (416) 213-1685 E-mail: jbattiston@dovercourt. biz www.dovercourt.biz Products: Two plating companies: Olympic (nickel and chrome for decorative, automotive interior and other bright work); and Autotek (zinc/alloy zinc coating). Fully automated finishing systems. Racer Machinery International Inc. 1030 Fountain Street North Cambridge, ON N3H 4R7 Representative: Alex Vojinovich, COO Alternate: Igor Vojinovich, CBO Tel: (519) 623-6223 Fax: (519) 623-1122 E-mail: alex@racerinternational. com www.racerinternational.com Products: Custom CNC machines, multi-spindle CNC machines, Work holding fixture design, lathes, and saws. Sle-Co Plastics Inc. 1425 Creamery Road London, ON N5V 5B3 Representative: Jeff Sleegers, President Tel: (519) 451-3748 Fax: (519) 451-5126 E-mail: jjsleegers@sleco.com www.sleco.com Products: Interior and exterior injection molding, assembly, and contract manufacturing. The Automotive Parts Manufacturers’ Association 39 in every issueIntroducing CAMM Members Introducing CAMM Members The Automotive Parts Manufacturers’ Association (APMA) and the Canadian Association of Mold Makers (CAMM) have teamed up to offer members an even better member experience! Please join us in welcoming the following CAMM members. We salute them for their support. A. Finkl and Sons Co. Aalbers Tool & Mold Inc. Aarkel Tool & Die Inc. Absolute Tool Technologies Acetronic Industrial Controls Inc. Acrolab Ltd. Active Burgess Mould and Design Advantage Engineering AlphaKOR Group Amerjy Tool and Mould Arlen Tool Company Ltd. Basic Tool Inc. BDO Canada LLP Blow Mold Tooling Inc. BORIDE Engineered Abrasives Briadco Tool & Mould Inc. Build A Mold Ltd. Calframax Technologies Cana-Datum Moulds Ltd. Canada Mold Technology Inc. Canadian Metalworking Cap Thin Molds Cavalier Tool & Manufacturing Ltd. CB Mould Services Cimatron Technologies Inc. Clinton Aluminum Canada ULC Collins Barrow Windsor LLP Compound Metal Coatings Inc. Concours Mold Inc. Cornerstone Mold Technologies Cottam Diecasting Ltd. Craft Originators Inc. Creaform Inc. Crest Mold Technology Inc. Crystallume CS Logistics DDS Software Solutions Delcam International Inc. Delmo Molds Inc. DME of Canada Ltd. DMS (Canada) Ltd. Dynamic Metal Treating, Inc. Ellwood Specialty Metals Enterprise Mold Ltd. Farrow Group FGL Precision Works Inc. Howie & Partners INCOE Corporation Injection Technologies Inc. Integrity Tool and Mold Inc. 40 www.apma.ca Summer/Fall 2015 Ives Insurance Brokers Ltd. JDL Technical Services Jesse Garant & Associates Metrology Center K&K Tools Ltd. Laval International Leemark Enterprises Machine Tool Solutions Ltd. Mega Mold International Inc. Metric Mold (1983) Inc. Mold Hotrunner Solutions Inc. Mold-Spec Inc. Mold-Tech Canada MP Tool & Mold Ltd. National Tool & Manufacturing Co. Nova Tool & Mold Inc. Paroian Skipper Hewitt PBL Insurance Ltd. PCS Company Platinum Tool Technologies Inc. Priority Tooling Solutions Progressive Components Redoe Mold Company Ltd. Reko International Group Inc. Rocand Inc. Rockway Precision Machine Ltd. Rosati Group Sandvik Canada Inc. Schmolz+Bickenbach Canada Inc. Sorel Forge Inc. Spartan Sling Manufacturing SPM Automation (Canada) Inc. SST Canada St. Clair College of Applied Arts & Technology StackTeck Systems Stamco Specialty Tool & Manufacturing Company Sturdell Industries Inc. Superior Tool & Mold Inc. Technical Management Consultants Inc. Tool-Plas Systems Inc. Top Grade Molds Ltd. Toshiba Machine Company Canada Ltd. TST Tooling Software Technology Unique Tool & Gauge Inc. Wentworth Technologies Co. Ltd. Zip Mold Inc. in every issue APMA Membership Just Got Even Better! The Automotive Parts Manufacturers’ Association (APMA) and the Canadian Association of Mold Makers (CAMM) are teaming up to offer members an even better membership experience! As Canada’s national association representing OEM producers of parts, equipment, tools, supplies and services for the worldwide automotive industry, APMA is delighted to announce its collaboration with CAMM, an industrial organization representing the interests and serving the needs of Canadian mold makers. Through our collaboration, our associations will serve a wider range of companies in the Canadian automotive supply chain and offer further value to members of each association and to the industry as a whole. As of January 1, 2015, member companies now receive the membership benefits of both organizations! APMA and CAMM will retain their own identities including websites, events, and publications. However, both associations will collaborate on many initiatives throughout the year and members will enjoy membership benefits of both associations for one annual fee! Visit www.apma.ca/overview/membership for more information on how you can get involved. The Automotive Parts Manufacturers’ Association 41 in every issueIntroducing the APMA/CAMM Membership Referral Program Introducing the APMA/CAMM Membership Referral Program! In an effort to serve our industry better, APMA and CAMM are seeking (and rewarding) your assistance in obtaining new members! If your company is a current member of APMA/CAMM and you refer a new manufacturing member who joins the association(s), you and the new member will both receive a discount on your membership! The newly referred member will receive a 10 per cent discount on their first year’s membership fee, while the referring company will receive a discount based on their membership status. The details: • The new member company must be a manufacturing (regular) member. The recruiting of associate members does not qualify. • Referrals must be confirmed in writing by the new member or noted on their membership application form. • If the recruiting company’s membership has already been paid for the current year, the discount will apply to the next calendar year’s membership. • The referring member’s discount cannot exceed 50 per cent of the new member’s fee. • Referrals are tallied on a calendar year basis and will reset on January 1 each year. As of January 1, 2015, the Automotive Parts Manufacturers’ Association (APMA) and the Canadian Association of Mold Makers (CAMM) have entered into a collaborative working relationship whereby they will share in common industry initiatives such as advocacy, events and trade missions. This collaboration will strengthen representation to customers and government in the Canadian automotive sector and provide more effective support for member companies of each organization. ■ Referral Discount Matrix If you are a… 1st referral 2nd referral 3rd referral Regular Member 10 per cent off next year’s fee 25 per cent off next year’s fee 50 per cent off next year’s fee Associate Member 25 per cent off next year’s fee 50 per cent off next year’s fee Next year is FREE APMA’s membership categories include: 1. Regular Member; For further questions or to request more information on membership, please contact APMA’s Manager of Marketing and Membership, Shaun Cott, at scott@apma.ca or (416) 620-4220, ext. 224. 2. Associate Member; 3. Non-Profit Associate Member; 4. Technical (Connected Vehicle) Associate Member; and 5. Educational Institution Associate Member. The Automotive Parts Manufacturers’ Association 43 44 www.apma.ca Summer/Fall 2015 in every issue BEHIND THE WHEEL Behind the Wheel of the 2015 Ford Edge Technology features offered for the first time include enhanced active park assist, side parking sensors and a front camera with washer. The Canadian-built all-new 2015 Ford Edge builds on a formula that has made the vehicle a hot seller in the medium crossover utility market in Canada. When launched in late 2006, the Edge helped to define the crossover utility vehicle segment in North America. With a car-based design rather than traditional truck-based SUV underpinnings, the Edge delivered better on-road comfort, fuel efficiency and overall driving dynamics. It was proof a utility vehicle could meet the demanding needs of everyday commuters. The all-new 2015 Ford Edge demonstrates what happens when a proven leader gets even better. The vehicle is all-new from the wheels to roof, delivering a stronger, more athletic shape, two new engines and showcases Ford’s best technology, more driver-assist features and improved performance and craftsmanship. The 2015 Ford Edge is arriving in showrooms now across Canada and will be shipped to more than 100 countries around the world later this year, including for the first time Western Europe. Ford is building on its utility vehicle leadership around the world. Global demand for utility vehicles is up 88 per cent since 2008 and utilities now account for 19 per cent of the global automotive market, with the segment expanding more than three times the rate of the vehicle industry overall. Dynamic all-new body and suspension The 2015 Edge will deliver the confident, smooth driving experience customers expect from Ford. Key to the improved driving dynamics is an entirely new body structure and redesigned front and rear suspension, developed to better isolate road imperfections and absorb noise without compromising handling. continued on 47 The Automotive Parts Manufacturers’ Association 45 46 www.apma.ca Summer/Fall 2015 in every issueBehind the Wheel of the 2015 Ford Edge The use of more high-strength steel, including boron steel in the B-pillars, results in a solid body structure that provides a far better platform for the new suspension to work. The all-new Edge is 26 per cent stiffer in reacting to bending forces and 14 per cent stiffer reacting to twisting forces over the 2014 model. This means less noise, vibration and harshness characteristics, giving the Edge customers a quieter, more substantial ride in a vehicle nicely suited for the everyday commute but ready to have fun when the road opens up. Two new engines, three to choose from The all-new Edge features three engine options, two of which are new—a standard twin-scroll 2.0-litre EcoBoost® four-cylinder and a 2.7-litre EcoBoost V6. A naturally aspirated 3.5-litre V6 engine is also available. All models are equipped with dual output exhaust and a sixspeed automatic transmission. The twin-scroll 2.0-litre EcoBoost, producing 245 horsepower and 275 lb/ft of torque, is significantly improved over the previous 2.0-litre EcoBoost. And newly available for the Edge 2.0-litre EcoBoost is all-wheel drive and a towing package capable of hauling a 1,588 kg (3,500 lb) trailer. On the other side of the engine spectrum is the Edge Sport and its exclusive, all-new 2.7-litre EcoBoost engine that provides an exceptional combination of power and efficiency. This new V6 delivers a small increase in horsepower over the previous 3.7-litre V6 engine and a 25 per cent increase in torque—for a total of 315 horsepower and 350 lb/ft of torque. The twin-turbocharged V6 in the all-new Edge Sport is a worldclass engine, providing a remarkable combination of advanced materials expertly applied. It draws its design from the best of the efficient Ford EcoBoost lineup and takes cues from the unmatched durability of Ford Super Duty Power Stroke® diesel engine technology. New level of technology for better driving The 2015 Edge is a technology leader for Ford, with a suite of standard and available technologies designed to improve both the driving experience and comfort level for vehicle occupants. Technology features offered for the first time include enhanced active park assist, side parking sensors and a front camera with washer. Key technology features include standard or available: • Active grille shutters; • Adaptive cruise control and collision warning with brake support; • Air curtains; • Blind spot information system; continued on 48 The Automotive Parts Manufacturers’ Association 47 in every issueBehind the Wheel of the 2015 Ford Edge bin on top of the centre stack; an open, passthrough storage area beneath the climate controls; an open storage area on the instrument panel, below and to the left of the steering wheel; and large pockets on each door. Thanks, in part, to smart design work and thinner, more supportive next-generation seats, the Edge interior is larger and more spacious. Adding to the openness, the Edge will continue to offer one of the largest sunroofs in the business—Ford’s panoramic Vista Roof®, measuring 1,211mm (47.7 inches), front to rear. • AdvanceTrac® with Roll Stability Control™; • Curve control; and • Inflatable rear safety belts. • New 180-degree front camera with washer standard rear camera; • Cross-traffic alert; • Enhanced active park assist; • Forward and reverse sensing systems; • Hands-free liftgate; • Heated and cooled front seats, heated rear seats and a heated steering wheel; • Lane-keeping system; • Side parking sensors; and • SYNC® with MyFord Touch®. Safety technologies available on the Edge include: • Active glove box knee airbag; High standards for quality and craftsmanship The 2015 Ford Edge is available in four trim levels, including SE, SEL, Sport and— for the first time—a Titanium series to meet customer demand for more premium offerings. Throughout the vehicle, seams are tighter and more consistent, with the overall design executed to reduce visual cutlines. The dashboard and centre console are carefully designed and shaped to look like one thin, streamlined piece. Storage areas have been improved throughout the cabin, with a covered media 48 www.apma.ca Summer/Fall 2015 Built to be the best Spending nearly $4 billion annually on Canadian-made automotive parts, Ford Motor Company has strengthened its commitment to Canadian manufacturing with a $700 million investment into Oakville Assembly, where the Ford Edge is built. The Oakville Assembly plant has undergone a retooling and expansion, transforming it into one of the most competitive and advanced global manufacturing plants in Canada. To support the global launch of the Ford Edge, Ford announced the addition of 1,400 new employees. Oakville Assembly has also been recognized for its environmental efforts. The plant is the first Ford North American assembly plant to go zero waste-to-landfill, and has recently upgraded to LED lighting across the plant, replacing 7,000 lights and saving an estimated 15 million kilowatt-hours of energy per year. ■ buyer’s guide Advertisers with this symbol beside their name are members of APMA. Advanced Manufacturing Processors, Custom Automated Assembly Systems & Supplies Centerline (Windsor) Ltd............................... 12 Aluminum Extrusion Dajcor Aluminum Ltd................................... 50 Assembly Modules & Fluid Management Solutions Martinrea International Inc........ 16 Automated Production Systems Valiant Machine & Tool.............. 34 Automotive Parts & Supplies Magna International Inc..........OBC Components/Systems for Internal Combustion Engines Schaeffler Group USA Inc............................... 4 Consulting & Training GRT............................................................. 30 Contract Manufacturing & Manufacturing Solutions Penn United Technologies............................ 44 Custom Moulders Dynaplas Ltd............................ 27 Electronics & Mechanical Assemblies KSR International Co................. 26 Manufacturing Software IQMS............................................................. 6 Measuring Solutions Mitutoyo Canada Inc.................................... 46 Metal Cutting Tools American Torch Tips.................................... 18 Metal Manufacturing Samuel Son & Co...................... 42 Metal Stamping Promark Tool & Manufacturing Inc............... 23 Mold Manufacturing Macro Moules PSK Inc................................. 50 Blow Molding & Plastic Parts ABC Group Inc.......................... 32 Financial & Risk Management Solutions Export Development Canada..... 49 Business Lawyer Dickinson-Wright LLP............... 27 Hotel & Gaming Resort Caesers Windsor............................................ 8 Optimal Intelligent Scheduling Optessa Inc.................................................. 48 Clamping EMS Optima USA................................................. 30 Injection Moulding Moldex Plastics & Tool inc............................ 17 Plastic Tooling Solutions Arlen Tool..................................................... 14 CNC Milling Machines Elliott Matsuura........................................... 38 Injection Moulds Neovision Technology Inc............................. 21 Presses Complete Financial Services GE Capital Canada.................... 22 Manufacturer of Automotive Components Linamar Corp............................ 28 Motion & Control Technologies Parker Canada............................ 3 Eagle Press & Equipment Co. Ltd....................................................... 35 Product Validation Fanshawe College........................................ 13 Scientific Instrumentation Hoskin Scientific.......................................... 46 Seating Schukra of North America Ltd.......20 Steel Manufacturing ArcelorMittal Dofasco............... 24 Steel Recycling, Ferrous/Non-Ferrous OmniSource Corp......................................... 30 Structural Metal Stampings Narmco Group......................... IFC Tool & Manufacturing Equipment Supplier Sandvik Coromont Inc................................. IBC Trade Promotion Agency Consulate of Malaysia (Trade Office)............ 46 Union Information Ontario Construction Secretariat.................. 44 Wholesale Plastics Distributor Caps’ n Plugs....................................................... 40 APMA is Canada's national association representing OEM producers of parts, equipment, tools, supplies and services for the worldwide automotive industry. 50 www.apma.ca Summer/Fall 2015