At this point in 2010, public automotive parts companies have reported financial reports if not twice, at least once.  What we are all seeing is (largely) a return to profitability among the supply base, which is driven by i) increased production volumes, and ii) improved cost containment.  On paper and in theory, this looks great - the industry is apparently recovering.  But what about the banks?

 Profits, EBITDA, and other improved financial metrics aside, are the banks (be they Canadian or...

The Ministry of the Environment is offering seven technical training sessions that will assist facilities in understanding how to meet the requirements of the Toxics Reduction Act, 2009 and O. Reg. 455/09.  The technical assistance sessions will present information on toxic substance accounting, planning, and building a business case for plan implementation, including:

• How to develop process flow diagrams
• How to select the method or combination of methods to quantify toxic substances
• How to...

Many automotive companies in Ontario fail to realize on their SR&ED expenses and the associated liquidity possibilities.  Companies are well aware of how to file & claim for their SR&ED refunds, but few companies seek to leverage these refunds with their financial institutions.  Most financial institutions are happy to create new lines of credit supported by an authenticated & filed SR&ED return - is there a better credit risk than the Canadian federal government?  This is...

The APMA and Natural Resources Canada Energy Efficiency project is now well under way. A number of member facilities are participating and experiencing the benefits of the program. Click here for more details. We have brought in six students for the summer to assist members complete energy inventories and identify savings opportunities. We would like to thank Enbridge Gas for their support of this project. Participating students this sumare are (from left to right):

Xinjia Li, Peter Corbyn...

And we are definitely enjoying a rising economic tide that appears to be lifting all suppliers. In the US the industry average finance rate on retail car sales sank to 4.4% in March the lowest since 2002. We have seen a return to vehicle leases and incentives remain strong. The combination of rising employment rates in both Canada and the US and the winds of an economic recovery have resulted in strong vehicle sales in both the United States and Canada as well as in Mexico. This has continued...

Parts manufacturers face a new risk as the OEM's become leaner and more decisive in their new vehicle strategy - downsizing of program volumes. While this in itself is not a new risk (manufacturers have long had to adjust to the realities of decreased production volumes), the new reality has brought forward the possibility of volumes being greatly reduced based on corporate strategy vs. market demand. Take for example the recent decision of General Motors to not sell the new Chevrolet Orlando...

The newly passed Toxics Reduction Act is going to affect virtually every company that now reports to NPRI) - please read this carefully.

The following material is cut and paste from an MOE communique:

Toxics Reduction Strategy: Updates and Public Consultation Sessions

 The Ministry of the Environment is taking another step as part of the Toxics Reduction Strategy. I would like to inform you of the following activities:
1.        O.Reg 125/10 has amended O.Reg. 455/09 to replace the static...

The financial turmoil of the preceding two years have brought to light (once again) the role of private equity in the automotive industry.  In recent years, there have been numerous cases of companies changing between being public corporations and private equity held entities - what does the near future hold?

 It is likely that private equity is right now poised to re-enter the automotive industry in a significant manner.  This is because we are presently at an inflection point in vehicle...

which produces an outstanding product offering freedom, utility and passion to its global customers. However, recent events within our industry clearly remind us that every part of an organization, from the supplier through to the final production facility, plays an absolutely crucial role in assuring that only components of the highest possible quality and robustness are produced. For many suppliers, the ultimate nightmare is an issue where a component gets outside the supplier's facility and...

The APMA is developing a number of options this summer towards the availability of co-op students to complete energy inventories and assessments for member companies.

To date, six APMA member facilities have collectively identified $300,000 worth of energy savings via the program supported by Natural Resources Canada.

A key component of this program is providing experience for engineering co-op students towards completing energy inventories and identifying savings opportunities at APMA member...