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You hear a lot about West Michigan’s roots in furniture, but the automotive industry has a long history here as well.
Our skilled manufacturing base and relative proximity to Detroit made it a natural fit that continues to this day, even though the industry has changed dramatically around us. Successful suppliers here have not only adapted but have figured out how to position themselves most advantageously for the new dynamics. One way they have done this is by diversifying their mix of customers to fit a desired profile.

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Regulatory actions to make fuel savings a higher priority are on the front burner this year, as evidenced by President Obama’s announcement this summer of an agreement with 13 major automakers to press on with more stringent fuel efficiency and greenhouse gas standards.

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The relationship between automotive suppliers and their OEM (or Tier One) customers has always been a tumultuous one. But after both sides suffered through the recession, emerged into the recovery and now stand on the brink of another potential pullback, have things changed at all? Have the two sides learned to work together and see the other’s perspective, even if they do not immediately cater to it?

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The auto industry is plugging along pretty well, considering that it has continued to be dogged by external crises and challenges this year. If your frame of reference is the 16 million in sales that the industry enjoyed in 2007, then you are certainly not going to be happy about the current level of U.S. sales. We believe that most people within the auto industry are looking back to the trough of 10.4 million light vehicles sold in 2009, though, and feeling grateful to be coming out of that part of the cycle.

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The auto industry is making its way up out of the trough, but what impact will the price of raw materials have on its recovery? IRN is projecting that North American light vehicle production will be up 5 percent in 2011 over 2010, which was, in turn, up 38 percent over 2009. As industrial production has recovered, however, so have the prices of its inputs.

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Initial sales results of the electric vehicles currently on the market have been lukewarm thus far. There are various reasons behind these figures, one of which is that it may just be too soon for consumers to really know how they feel about these high-tech vehicles. Conflicting reports in the media make it even more difficult to get a read on consumer sentiment and thus the potential future for electric vehicles as a mainstream segment of the automotive industry.

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A few years ago, when the zeal over electric vehicles was just starting to emerge, there were new car companies cropping up almost on a monthly basis.