Automotives

Global conference draws executives worldwide

Tuesday, April 20, 2004

How could Chinese academic institutions better serve the budding automotive industry there?The answer doesnt involve creating better structural engineers, materials experts, electrical technicians or computer programmers, as one might expect. Rather, the Chinese need help in a way an American would hardly imagine. Chinese academic institutions should create more car salesmen, said Heyi Xu, chairman of the Beijing Hyundai Motor Company. After all, the countrys automobile industry only started in 1953, and is currently striving to satisfy the worlds third largest automobile market. Xu spoke through a translator at the 2004 Global Automotive Conference held at the Sloan Convention Center. The two-day event, for middle to upper management, was sponsored by Western Kentucky University and administered by the WKU Office of Global Business, Gordon Ford College of Business. Xu outlined the growing auto industry in China, the developing levels of competition and recent successes in production. In 1992, China made 1 million automobiles. By 2000, that number had doubled to 2 million, and increased another million by 2002. In 2003, sales reached 4 million units. By 2010, Xu hopes several of the burgeoning automobile manufacturers in China will be some of the worlds top 500 enterprises. Tom Teel, president of TWN Fastener Inc. of Bowling Green, a sponsor of the conference, said Xu made the biggest impact on the first day of the conference. I know these things are going on (in China), Teel said, And I got a strong bolt of lighting. I think (China) is going to revolutionize the industry did you see how fast they got things up and running?Teel was commenting on Xus comparison of how much faster one Hyundai plant was put together and starting production in China than a similar plant in the United States. Beate Bachmann, the controller for NASCO in Bowling Green, another sponsor for the event, echoed Teels amazement. Up to 250,000 vehicles in two years, that makes your head spin, Bachmann said. If thats what theyre doing in China, we should watch out. Xu was the last speaker of the day, one filled with workshops on safety and ergonomics in manufacturing, a materials technology road map for the Southeastern automobile industry, ethics and technology, communication with Japanese customers, achieving successful technology transfer at Japanese firms in the United States and the Toyota production system. Tim Heyer, director of Automotive Solutions Industries Business Unit for Oracle, said he likes Bowling Green. Its not much different than Kalamazoo (Mich.), Heyer said. Heyer was attending the event to evaluate whether the conference would be one of the three industry conferences sponsored by Oracle next year. This geographical area is the single largest platform for automotive growth (in the United States), Heyer said of the south. We are very excited to come here next year we plan to be a sponsor. Oracle normally doesnt have contact with many of the CEOs who attended the event, so the company perceives it as an open door for the right business connections. We think the conference was very well-attended by the right people, he said. This is where the centers of excellence are going to be. He also complimented the recent addition of Magna International Inc. to Bowling Greens automotive industrial base. Mark Emkes, chairman and CEO of Bridgestone Americas Holding Inc., the lead sponsor for the event, had just arrived early Monday evening. We were here last year, Emkes said. We really enjoyed the people from the university, the town. The thing that really jumps out at me is the global diversity of the university and the town. Emkes had heard the presentation of Wil Cooksey, general manager of the General Motors Corvette Assembly plant, and then heard Hyundais Xu.We had GM, right after him was China, Emkes said. I think thats absolutely fantastic todays world is a global economy. Emkes and Firestones relationship with the conference started a year ago, and included extensive communication with Bill Parsons, director of the Office of Global Business & Entrepreneurship at Western. I was just so impressed with his knowledge and business background; Western Kentucky University is lucky to have him, Emkes said. Emkes thinks Bowling Green and WKU are well-kept secrets. The people, the work ethic, Emkes said. Thats why were back here. There are conferences that are bigger, there are conferences that are more global. We like this one. Once they see Parsons, theyre going to keep coming back. Today Emkes was scheduled to present about Firestones run-flat tires, a developing concept of putting motors inside tires, low roll-resistant tires for hybrid vehicles and the recent trend of tires with larger rim sizes. Gov. Ernie Fletcher is scheduled to speak today at the conference. WorkshopsScott Meza, a specialist at the Toyota Supplier Support Center, presented a workshop on the components of the Toyota manufacturing process. In the Toyota philosophy, customers are first, Meza said. No defect should be passed on to the customer. The price of a product is determined by what the customer is willing to pay, as opposed to an arbitrary markup by a producer. And Toyota should meet customers exact order immediately. People employees are the companys most valuable resource, Meza said. People want to make valuable contributions to the world, and they have limitless capacity for personal development. In Kaizen, the company pursues closing the gap between current and true north, Meza said. In this example, true north is the ideal place where a company wants to be, not necessarily where it can be under current logistics. The process involves cost reduction, which doesnt include cost shifting. Toyota also is shop-floor focused, Meza said, and one needs to be on the shop floor to understand its current status. Additionally, input from people on the floor is extremely valuable, he said. After explaining these and other Toyota philosophies, Meza offered a demonstration of various production lines and their efficiency. Workshop attendees had the chance to examine the progressively efficient production models as Meza explained how each exemplified Toyota philosophical maxims. Rochelle Kopp, managing principal at Japan Inter-cultural Consulting, offered two workshops. Both involved cultural relations and business environments of Japanese and American working environments. Their flavor is different, Kopp said. Its important to understand where Japanese are coming from. She identified the top 10 things Japanese customers expect from suppliers. Japanese look for stability and long-term commitment, and Kopp encouraged any older U.S. company to brag about its age. They also look for a good track record, which means a U.S. company should show off its client list and awards, she said. Such recognition makes it easier for a Japanese firm to recognize a good track record. And a well-known company in the U.S. may not be well known in Japan, she pointed out. Kopp explained that Japanese firms look for a main contact person when interacting with a company, and they describe that person as a sort of window into the company. This person should be the standard contact and be able to serve in this position for an long period of time. Japanese also desire high quality. She said communications with Japanese firms should be quick and positive. Japanese firms look for acknowledgment of a message within 24 hours, even if it is Im working on it, she said. Kopp also said keeping commitments is very important. Unlike flexible American deadlines, Japanese deadlines should be considered set in stone. After a sale is made, Japanese firms look for aftercare, Kopp said. The Asian country considers that relations begin with the sale. Japanese firms also look for a continuous improvement attitude and give hospitality high regard. Daily News ·813 College St. ·PO Box 90012 ·Bowling Green, KY ·42102 ·270-781-1700