DETROIT -- International Automotive Components Group is partially offsetting a dismal year by picking up business from troubled rivals, IAC owner Wilbur Ross told Automotive News Europe sister publication Automotive News late last month.
I dont pretend we havent been hurt, he said. We have been hurt.
Ross acknowledged that IAC will not make money this year.
But the supplier has added around $300 million (about 232 million) in new business over the past six months by picking up contracts from other, bankrupt suppliers, he said.
James Kamsickas, president of IACs American and Asian operations, said the business came from bankrupt interiors and plastics companies such as Blue Water, Progressive and Cadence.
Ross described it as airlifting the business out.
Over the Christmas holidays, for example, IAC used more than 35 full semitrailer trucks to take 65 tools and dies from a failed rival. The equipment was distributed to IAC factories, which then began making the parts.
Helping automakers make a smooth transition to an IAC factory has been critical to winning the business. Weve yet to interrupt a production line [at an automakers factory,] Kamsickas said.
The added revenue doesnt come close to offsetting the volume lost from the industrys sales drop, he said. Volumes from General Motors, Ford Motor and Chrysler are down 40 percent to 60 percent, Kamsickas said.
To help cope with the decline in business, IACs top managers took a 4 percent pay cut effective January 1.
In addition, Ross said, last year we infused more capital into the company and probably will infuse more capital [again this year].
We had anticipated a down year, Ross said.
IAC, which was created in 2005, has bought the interiors assets of Lear and combined them with select assets of the defunct Collins & Aikman.
Ross also has purchased niche players in Brazil and Japan.
IAC of New York ranks No. 31 on the ANE list of the top 100 global suppliers, with worldwide auto parts sales of $5.31 billion in 2007.