Welcome!

News Feed Item

Maschke Discusses Freudenberg-NOK's Global Investment Strategy and China Risks and Rewards at CAR Management Briefing Seminars

Companies without strong, local presence will be at a strategic disadvantage in this key growth market

TRAVERSE CITY, Mich., Aug. 6, 2014 /PRNewswire/ -- Companies hoping to capitalize on automotive opportunities in China must be willing to establish a manufacturing presence in that country and integrate into the local business community to succeed, Freudenberg Sealing Technologies President Torsten Maschke told an audience at the 2014 Center for Automotive Research Management Briefing Seminars (CAR MBS) in Traverse City, Mich. today.

Maschke spoke as part of an international panel of industry leaders that explored investment opportunities and risks associated in developing automotive markets. The discussion centered on opportunities in the world's largest automotive market, China.

During his presentation, Maschke shared Freudenberg Sealing Technologies' strategy for China, built on more than two decades of experience producing seals and components in that country. He emphasized the critical importance of maintaining strong company values in new regions and also reviewed the company's risk/reward investment process for evaluating new opportunities.

"As we expand into new regions, there is universal understanding across our business units that our investment decisions must align with our original Guiding Principles," Maschke said. "Our globalization strategy is, in fact, founded on these principles and can be succinctly summarized: Freudenberg Sealing Technologies does not enter new regions as a marketing entity.

"The company does not establish regional operations on the basis of low cost labor opportunities," he continued. "We pursue investments where our company can become a local supplier focused on local customer needs. We strive to become part of a country's manufacturing fabric."

Freudenberg's Guiding Principles – its corporate DNA – were written 165 years ago and have established a culture built around innovation, customer value, responsibility, leadership, community and a long-term orientation. These business tenants – along with a thorough risk-opportunity assessment – have become an essential part of the company's approach to international growth.

Despite the fact that important technological and legislative issues in China remain unresolved, the sheer size of the market offers international auto companies and industry suppliers significant financial opportunities, Maschke said.

But those opportunities will best be realized by companies which are prepared to establish a local industrial presence in China that allows them to meet content requirements for international customers while expanding their relationships with domestic Chinese vehicle makers. Significantly, the auto industry's growing use of global vehicle platforms makes suppliers with engineering and production expertise in China even more valuable to their operations.

"They will not only need to rely upon collaboration and advanced technologies from their suppliers to make these models successful in their home markets, they will also need to rely upon suppliers who can make these models successful for them in China," Maschke said. "They are going to need, to coin an American expression, boots on the ground in that vast new market to help them understand and navigate technical and cultural issues that make global platforms challenging and tricky."

Freudenberg formed joint venture partnerships with NOK Corporation in both India and China. Both operations are growing and in China, the company's strategic plan is now nearing maturity with more than 70 locations, 6,300 employees and 23 manufacturing facilities.

According to Maschke, "The real challenges in China, of course, are not the existence of megatrends or emerging technology initiatives. The challenges are how the country will respond to them and how we, as a supplier doing business there, will respond to the needs of our customers and continue to grow. One of the most vexing questions suppliers ask themselves when looking at new markets like China is how they will compete against well-established local players."

Freudenberg's answer is two-fold, Maschke concluded. Companies must offer higher quality, better processes, newer innovations, superior customer service and broader market value than all of their competitors, while also integrating into the market to such an extent that they become a local player. And they must embrace flexibility.

Flexibility will help companies address key challenges such as resource availability, legislative mandates, and technological uncertainty. China may even take the lead in introducing new technologies in the not too distant future, Maschke added.

While industry challenges in China are still numerous, the opportunities are great.

"It is not enough to appear globally aligned while all of your innovations, business practices and technology ideas still originate in other regions. You must be able to analyze and respond to the needs and ideas that countries and cultures bring to the automotive industry," Maschke concluded. "You must also become an essential part of your customers' globalization strategies. This is the only way you can help solve global challenges while remaining true to your business principles. We are experts at doing both."

About Freudenberg-NOK Sealing Technologies

Freudenberg-NOK Sealing Technologies is the Americas joint venture between Freudenberg and Co. in Germany and NOK Corp. in Japan. Freudenberg-NOK is a leading producer of advanced sealing technologies for a variety of markets including: aerospace; agriculture; appliance; automotive; construction; diesel engine; energy; food and beverage; heavy industry; and pharmaceutical. Founded in 1989 under the legal name Freudenberg-NOK General Partnership, Freudenberg-NOK is headquartered in Plymouth, Mich. and operates more than 20 facilities across the Americas. For additional information, please visit www.fnst.com.

SOURCE Freudenberg-NOK Sealing Technologies

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
Korean Broadcasting System (KBS) will feature the upcoming 18th Cloud Expo | @ThingsExpo in a New York news documentary about the "New IT for the Future." The documentary will cover how big companies are transmitting or adopting the new IT for the future and will be filmed on the expo floor between June 7-June 9, 2016, at the Javits Center in New York City, New York. KBS has long been a leader in the development of the broadcasting culture of Korea. As the key public service broadcaster of Korea...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
Cloud computing changed data analytics for good. It enabled companies to drastically decrease resources and architecture previously assigned with business intelligence departments. It also enabled laymen to run advanced business analytics. Cloud was also the architecture of choice for storing and processing big data. Data piling is a continuous process, which is going to explode with emerging Internet of Things concept. Answer to this issue developers found in new concept called fog computing. ...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.