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
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, discussed how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved efficienc...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
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 Silicon Valley Call for Papers is now open.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.