Federal-Mogul: 78% increase in China this year, further deepening localization in the future

Gasgoo.com: Congratulations on the success of the Federal Motors Co., Ltd. as one of the “Top 100 Most Competitive Auto Parts Suppliers in 2010”.

Mr. Ferick: Thank you!

Gasgoo.com: As the world's leading supplier of powertrain and safety technology components, please briefly introduce the business development of Federal-Mogul in China.

Mr. Ferreck: Federal-Mogul has 11 production bases and a technical center in China, engaged in the production and research and development of automotive components such as pistons, piston rings, bearings, seals, gaskets, and friction materials. Globally, we have more than 100 production bases and 18 technology centers. Together with these global network of production and technology centers, we provide customers in China with the best products and services.

This year, we have grown by 78% in China, far higher than the 33% growth rate of China's auto production. This further enhances our confidence in the success of the Chinese market. In the future, we will certainly achieve greater success in this market.

Gasgoo.com: What are the functions of Federal-Mogul Technology Center in China? What functions will be added in the next three to five years?

Mr. Ferreck: Our Asia Pacific Technology Center is located in Shanghai and is part of the global R&D system. This technical center is able to develop all the products our customers need and test them accordingly. On this basis, we can provide Chinese customers with the highest performance products that are consistent with the performance of our products that provide global customers.

Gasgoo.com: How is the Federal-Mogul China Technology Center in the global R&D system?

Our strategy is to bring the latest and most advanced technology to China. This technology center has been implementing such a strategy. This technology center has the world's best equipment and also has a high level of Chinese engineers (of course, further training is required). We hope to obtain faster and better access to Chinese market information in order to maintain the characteristics of Chinese customers faster and better, and gain a higher market share in this market. For this purpose, we will recruit more local Chinese talents at this technology center and achieve the goal of focusing on local Chinese R&D personnel so as to better serve Chinese customers.

Gasgoo.com: What are the new technologies and products of Federal-Mogul to help you achieve the goals of energy conservation, emission reduction, safety and comfort in China's auto manufacturers?

Mr. Ferreck: In fact, the demand in the Chinese automotive market is very similar to other markets. The technology we have acquired in China is the most advanced technology that has been applied in mature markets such as North America and Europe. The mature market has strict standards for energy conservation and emission reduction, and the Chinese market standards will gradually become strict. Through the introduction of the latest and most advanced technology, we can help customers achieve the goal of safety, energy saving and emission reduction.

Gasgoo.com: Can you give us some examples?

Mr. Frick: Of course, with the Pistons as an example, we have DuraBowl® and EcoTough® technology for light-vehicle engines that can improve the durability of products in more and more demanding combustion chamber environments by reducing the overall friction; With Magnum MonosteelTM pistons for heavy truck engines, this technology can significantly reduce friction and weight, help improve fuel economy and reduce emissions. In addition, we have a new technology that is dedicated to energy saving and emission reduction in all of our products including seals, piston rings, and friction materials.

Gasgoo.com: What are the positive measures Federal-Mogul has taken in the face of cost and price demands from Chinese customers?

Mr. Ferreck: Federal-Mogul creates value for customers by providing high-tech products and helps them reach the goal of energy conservation and emission reduction. We will not be forced to produce low quality products under cost pressure. At the same time, we are implementing lean management globally, and in order to maintain a competitive cost structure, the market share in the Chinese market continues to increase. As I mentioned earlier, our growth rate is more than double the growth rate of the Chinese market.

Gasgoo.com: How is FM's localization in China, especially in terms of improving competitiveness? What are the plans and developments in this area in the future?

Mr. Ferreck: We have been advancing the localization process in China and have made great progress. We have a high localization rate in engineering technology research and development, product manufacturing and other related matters; the main task of foreign employees is to train local talents, and can be replaced by Chinese employees in a few years. We are proud of our local workforce who provide effective localization services to Chinese customers. In the future, we will step up the procurement of materials in China. This is the most urgent task to be promoted. We will work together with suppliers and hope to expand the scope of raw materials and other products purchased in China.

( Source: Gasgoo.com )