Domestic automakers pledge better supply chain relations

General Motors Canada Corp. (GM) and Ford Canada both pledged to improve relationships with its supply chain at the 2006 Automotive Parts Manufacturers’ Association (APMA), May 10 to 11, in Hamilton, Ont.

Michael Grimaldi, GM Canada’s president and general manager, admitted GM has made mistakes in the past dealing with its suppliers and pledged better relations in the future.

Ford Canada president and CEO William Osborne also said Ford recognizes the importance of improving relations with its supply chain but noted that suppliers have to trim costs so the automotive OEMs and the suppliers can stay competitive in the global marketplace.

In fact, that was the theme of this year’s APMA conference; the event focused on accepting and suriving the challenges of globalization head-on under the tagline, ‘”Adapting to the New Reality”.

The show featured over 110 exhibit booths showcasing some of the latest automobile parts technology, and a high-profile roster of public officials, executives and industry experts — including Ontario Premier Dalton McGuinty; Denis Turcotte, president and CEO of Algoma Steel Inc.; and Don Walker, co-CEO of Magna International — who gave presentations and keynote speeches on topics such as key automotive trends, the rationalizing of the supply base, shifting responsibilities in the supply chain, rising fuel prices, and OEM perspectives on the future of the auto industry.

According to APMA president Gerry Fedchun, the message that show-goers took away was that, despite the withering of the old paradigm of “The Big 3” and its replacement by a less insulated global marketplace, the future of the Canadian auto parts industry is bright. “Canadians have actually done very well in the marketplace over the years, and it’s a matter of continuing to do that,” he said. “We need to take advantage of the goodwill Canada has in the world, in terms of opening up new markets. There are large markets in the world available to us,” he added.

One such possibility that was explored at the 2006 APMA show was between Canadian and Italian manufacturers. Italian trade commissioner Paolo Ponti headed a delegation from Italy’s automotive sector who attended and networked at the show with the aim of establishing trade and investment partnerships. “The development of trade relations between Italy and Canada show us how close our countries have grown and how significant our role can be in achieving a common objective,” Ponti said.