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
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search an...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at Dell EMC, introduced a methodology for capturing, enriching and sharing data (and analytics) across the organization...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. 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 June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.