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ABC Technologies Completes Acquisition of dlhBOWLES

COLUMBIA, Md., March 01, 2022 (GLOBE NEWSWIRE) — ABC Technologies has completed its acquisition of dlhBOWLES previously announced in January 2022. With the completion of the transaction, some key leadership changes are also being announced.

Daniel Konrad, previously Vice President of Engineering will now be leading the organization as President of dlhBOWLES, an ABC Technologies company. In addition, John W. Saxon, who has been CEO of dlhBOWLES and DLH Industries, respectively, for more than 18 years, will serve in a consulting role for the business. “Having worked in this business for nearly two decades, I am extremely excited for its future with ABC Technologies. ABC has been a trusted customer/partner for many years. ABC’s existing global footprint and international scale will enable dlhBOWLES to better serve our customers around the world. This is a great day for all concerned,” said Saxon.

“The dlhBOWLES team is one of the best in the industry and everyone on the team is excited to push the business to a new level. As a member of the ABC Technologies family, we are ready to meet our customers’ fluid management and cleaning needs in an increasingly autonomous and electrified future,” said Konrad when asked how he feels about the new ownership’s role within the ABC family. “I look forward to leading this exceptional team into the next generation of Automotive Supply where dlhBOWLES and ABC Technologies have truly created a Powerhouse of Automotive Fluid Systems.”

Daniel Konrad has 24 years of Automotive Supplier experience, with nearly 20 years at Robert Bosch. There he served in a variety of positions in the Europe, US, and Mexico, most recently as windshield wiper business unit leader. Daniel has been part of the dlhBOWLES leadership team since 2017 where he led the Engineering organization in product expansion initiatives such as Battery Electric Thermal Management components.

President & CEO of ABC Technologies, Todd Sheppelman, added, “The ABC Technologies family is excited to welcome dlhBOWLES to the organization.  We have a great deal of respect for the strong business that has been built by their dedicated team and we can’t wait to introduce The New Powerhouse of Fluid Management Systems to our customers.  Our combined organization has a tremendous opportunity for growth ahead of us and we can’t wait to get started.”

About ABC Technologies

ABC Technologies is a leading manufacturer and supplier of custom, highly engineered, technical plastics, and light weighting innovations to the North American light vehicle industry, serving more than 25 original equipment manufacturer customers globally through a strategically located footprint. ABC Technologies’ integrated service offering includes manufacturing, design, engineering, material compounding, machine, tooling, and equipment building that are supported by an experienced engineering team of approximately 600 skilled professionals and 6,150 employees worldwide. The Company operates in six product groups: HVAC Systems, Interior Systems, Exterior Systems, Fluid Management, Air Induction Systems, and Flexible & Other. ABC Technologies’ head office address is 2 Norelco Drive, Toronto, Ontario M9L 2X6.

About dlhBOWLES

For over 60 years, dlhBOWLES has been a pioneer of innovation thanks to their strength in research and development leading to more than 250 patents in fluid management systems and devices.  The company utilizes dedicated engineering teams using state-of-the-art prototyping and manufacturing processes, allowing for a penchant to take the initiative.  In 2012, the company was first to market with its front camera cleaning system on the Ford F-150 Raptor.  dlhBOWLES has achieved its standing as a valued and trusted supplier of washer, sunroof, Camera and Sensor Cleaning, and powertrain components to many original equipment manufacturers.  Proven product effectiveness and focus guided by key partnerships brings the benefits gained to find real answers to customer pain points thereby Making Safety Systems Safer.

https://www.businesswire.com/news/home/20220228005989/en/ABC-Technologies-Completes-Acquisition-of-dlhBOWLES-From-MPE-Partners

ABC Technologies Completes Acquisition of dlhBOWLES From MPE Partners

Acquisition creates The New Powerhouse of Fluid Management Systems and helps build on process automation efforts throughout ABC

TORONTO–(BUSINESS WIRE)–ABC Technologies Holdings Inc. (TSX: ABCT) (“ABC Technologies”, “ABC” or the “Company”), a leading manufacturer and supplier of custom, highly engineered technical plastics and lightweighting innovations to the global automotive industry, today announced that it has completed the previously announced acquisition of dlhBOWLES, Inc. (“dlhBOWLES”) from MPE Partners (“MPE”) for cash consideration of approximately US$255 million (the “dlhBOWLES Acquisition”).

Based in North Canton, OH, dlhBOWLES is a leading designer, manufacturer and developer of automotive fluid management components. dlhBOWLES is also a recognized leader in the North American market for camera and sensor cleaning systems, windshield wash systems, sunroof drains, powertrain and chassis solutions and in the quickly expanding market for cleaning systems addressing advanced driving (ADAS) systems along with thermal management systems for EVs.

About ABC Technologies

ABC Technologies is a leading manufacturer and supplier of custom, highly engineered, technical plastics and lightweighting innovations to the North American light vehicle industry, serving more than 25 original equipment manufacturer customers globally through a strategically located footprint. ABC Technologies’ integrated service offering includes manufacturing, design, engineering, material compounding, machine, tooling and equipment building that are supported by an experienced engineering team of approximately 600 skilled professionals and 6,150 employees worldwide. Figures represent ABC prior to closing of the dlhBOWLES Acquisition and the acquisition of Karl Etzel GmbH. The Company operates in six product groups: HVAC Systems, Interior Systems, Exterior Systems, Fluid Management, Air Induction Systems, and Flexible & Other. ABC Technologies’ head office address is 2 Norelco Drive, Toronto, Ontario M9L 2X6.

Forward Looking Statements

This news release contains certain “forward-looking statements” concerning anticipated future events, results, circumstances, performance or expectations with respect to the Company and its operations, including its strategy and financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “intends”, “targets”, “projects”, “forecasts”, “schedule”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. The forward-looking statements contained in this news release include, but are not limited to: expected benefits of the dlhBOWLES Acquisition, including potential synergies. Forward-looking statements are based on underlying assumptions and management’s beliefs, estimates and opinions, and are subject to inherent risks and uncertainties surrounding future expectations generally that may cause actual results to vary from plans, targets and estimates. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control. Such risks and uncertainties include, but are not limited to, the factors discussed under the heading “Risk Factors” in the Company’s Annual Information Form dated June 30, 2021 and Management’s Discussion and Analysis for the three and six months ended December 31, 2021 which are available under the Company’s issuer profile on SEDAR at www.sedar.com. The Company cautions readers that actual results may vary significantly from those expected should certain risks or uncertainties materialize or should underlying assumptions prove incorrect. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contacts

For further information about ABC Technologies, please contact:
Nathan Barton, Investor Relations
investors@abctech.com

ABC Technologies to Acquire dlhBOWLES From MPE Partners

Acquisition strengthens ABC’s Fluid Management offering and adjacent product portfolio while expanding process automation expertise

January 05, 2022 07:30 AM Eastern Standard Time

TORONTO–(BUSINESS WIRE)–ABC Technologies Holdings Inc. (TSX: ABCT) (“ABC Technologies”, “ABC” or the “Company”), a leading manufacturer and supplier of custom, highly engineered technical plastics and lightweighting innovations to the global automotive industry, today announced that it has entered into a definitive agreement to acquire dlhBOWLES, Inc. from MPE Partners (“MPE” or Morgenthaler Private Equity”) for approximately US$255 million (the “dlhB Acquisition”).

“dlhBOWLES is a great fit within ABC Technologies’ portfolio and we believe the combination will create exciting growth and value-creation opportunities.”

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Based in North Canton, OH, dlhBOWLES is a recognized leader in the North American market for camera and sensor cleaning systems, windshield washer systems, sunroof drains, powertrain and chassis solutions. With approximately $120 million in revenue expected in 2021, dlhBOWLES has established a leading position in the North American washer systems market as well as the quickly expanding market for cleaning systems addressing advanced driving (ADAS) and thermal management for EVs.

“The acquisition of dlhBOWLES further solidifies ABC Technologies’ leadership position in the North American washer systems market, strengthening our product portfolio to better serve our global customers and enhance the capabilities of our Fluid Management division, while improving ABC’s process automation,” said Todd Sheppelman, President and CEO of ABC Technologies. “This acquisition will create a complete product system offering within our Fluid Management division, which we believe will be a win for our customers as well as ABC.”

“We are excited to bring dlhBOWLES and ABC Technologies together,” said dlhBOWLES President and CEO, John Saxon. “We have known the ABC team for years as an important customer of dlhBOWLES, and we believe ABC’s global reach and ability to cross-sell washer systems products to an even broader group of OEM customers will expand the growth opportunities of the combined businesses and enable us to deliver innovative solutions around the globe.”

“We are extremely proud of our partnership with dlhBOWLES and appreciative of the leadership and strong execution that John Saxon and his team have delivered since the combination of DLH Industries and Bowles Fluidics” said Peter Taft, Partner at MPE. “dlhBOWLES is a great fit within ABC Technologies’ portfolio and we believe the combination will create exciting growth and value-creation opportunities.”

To finance the dlhB Acquisition, the Company today announced a private placement, rights offering and debt commitment letter (the “dlhB Acquisition Financings”). Further details relating to the dlhB Acquisition Financings are provided in a separate press release issued by the Company (the “dlhB Acquisition Financings Announcement”) concurrently with this press release. The dlhB Acquisition Financings Announcement can be found under the Company’s issuer profile on SEDAR at www.sedar.com.

The waiting period has expired under the HSR Act of 1976 and the transaction is expected to close in ABC Technologies’ Fiscal Third Quarter 2022 (1st Quarter CY 2022). Link to full press release: https://www.businesswire.com/news/home/20220104006083/en/ABC-Technologies-to-Acquire-dlhBOWLES-From-MPE-Partners Link to pdf: https://abctechnologies.com/wp-content/uploads/Project-El-Tigre-Deal-Announcement-PR-1.4.22-FINAL.pdf

Advisors

Blake, Cassels & Graydon LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are counsel to ABC Technologies. Evercore is sole financial advisor to ABC Technologies and its Board of Directors. R.W. Baird is financial advisor and BakerHostetler LLP and Bennett Jones LLP are counsel to MPE Partners. Apollo Global Management, Inc. (“Apollo”) and Oaktree Capital Management, L.P. (“Oaktree”), through their managed funds, are investors in ABC Technologies. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Goodmans LLP are counsel to Apollo and Stikeman Elliott LLP is counsel to Oaktree in the transaction.

About ABC Technologies

ABC Technologies is a leading manufacturer and supplier of custom, highly engineered, technical plastics and lightweighting innovations to the North American light vehicle industry, serving more than 25 original equipment manufacturer customers globally through a strategically located footprint. ABC Technologies’ integrated service offering includes manufacturing, design, engineering, material compounding, machine, tooling and equipment building that are supported by an experienced engineering team of approximately 600 skilled professionals and 6,150 employees worldwide. The Company operates in six product groups: HVAC Systems, Interior Systems, Exterior Systems, Fluid Management, Air Induction Systems, and Flexible & Other. ABC Technologies’ head office address is 2 Norelco Drive, Toronto, Ontario M9L 2X6.

About MPE

MPE seeks to be the preferred partner for entrepreneur- and family-owned companies. Based in Cleveland, OH, and Boston, MA, MPE invests in profitable, lower middle market companies with transaction values up to $250 million. MPE has two primary target investment areas: high-value manufacturing and commercial & industrial services. To learn more, please visit www.mpepartners.com. MPE’s office address is Fifth Third Center, 600 Superior Avenue East, Suite 2500, Cleveland, OH, USA 44114.

About Apollo

Apollo is a global, high-growth alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of September 30, 2021, Apollo had approximately $481 billion of assets under management. To learn more, please visit www.apollo.com. Apollo’s office address is 9 West 57th Street, 43rd Floor, New York, NY, USA 10019.

About Oaktree

Oaktree is a leader among global investment managers specializing in alternative investments, with US$158 billion in assets under management as of September 30, 2021. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,000 employees and offices in 19 cities worldwide. For additional information, please visit Oaktree’s website at www.oaktreecapital.com. Oaktree’s office address is 333 S. Grand Ave., 28th Floor, Los Angeles, California, USA 90071.

Forward Looking Statements

This news release contains certain “forward-looking statements” concerning anticipated future events, results, circumstances, performance or expectations with respect to the Company and its operations, including its strategy and financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “intends”, “targets”, “projects”, “forecasts”, “schedule”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”. The forward-looking statements contained in this news release include, but are not limited to: the closing of the dlhB Acquisition; the dlhB Acquisition and the expected benefits of the dlhB Acquisition; and the dlhB Acquisition Financings. Forward-looking statements are based on underlying assumptions and management’s beliefs, estimates and opinions, and are subject to inherent risks and uncertainties surrounding future expectations generally that may cause actual results to vary from plans, targets and estimates. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control. Such risks and uncertainties include, but are not limited to, the factors discussed under the heading “Risk Factors” in the Company’s Annual Information Form dated June 30, 2021 which is available under the Company’s issuer profile on SEDAR at www.sedar.com. The Company cautions readers that actual results may vary significantly from those expected should certain risks or uncertainties materialize or should underlying assumptions prove incorrect. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contacts

For further information about ABC Technologies, please contact:
Nathan Barton, Investor Relations
investors@abctech.com

For further information about Oaktree, please contact:
mediainquiries@oaktreecapital.com

For further information about Apollo, please contact:
Investors: Noah Gunn, Global Head of Investor Relations
IR@apollo.com

Media: Joanna Rose, Global Head of Corporate Communications
Communications@apollo.com

dlhBOWLES Exhibiting in-person and virtually at CES 2022

COLUMBIA, Md., Dec. 29, 2022 (GLOBE NEWSWIRE) – Fluid Management and Cleaning specialist dlhBOWLES announces exhibition at the Consumer Electronics show in Las Vegas, NV for 2022.

dlhBOWLES will have a new and improved Multi-Zone Camera and Sensor Cleaning System on display as part of their Clēr™ product line as well as newly available Battery Electric Thermal Management Solutions.  This technology will be on display in the Encore at Wynn in Las Vegas, Nevada from January 5, 2022, through January 7, 2022.  dlhBOWLES will share the stage in 2022 with two important development partners, RAPA of Selb, Germany and 3Oe Scientific of Carmel, Indiana.

dlhBOWLES, RAPA and 3Oe Scientific will each be hosting a Lunch Presentation and are available for Private meetings showcasing their latest technology in a private suite.  Meetings and event registration can be requested at https://calendly.com/dlhbowles-ces-2022 or by emailing marketing@dlhbowles.com.  Private meetings can be requested for virtual participants to allow them to participate in the displayed content.

In addition to its in-person presence at CES, dlhBOWLES will be live streaming and posting recorded content throughout the show displaying each of their technologies to accommodate those who are not participating in person this year.  Discover all their content on YouTube channel https://www.youtube.com/channel/UCnbgGU9zop_6BQhOlQGpnag.

For over 60 years, dlhBOWLES has been a pioneer of innovation thanks to its deep strength in research and development leading to more than 250 patents in fluid management systems and devices.  The company utilizes dedicated engineering teams with state-of-the-art prototyping and manufacturing processes, creating a penchant to take the initiative.  In 2012, the company was the first to market with its front camera cleaning system on the Ford F-150 Raptor.  dlhBOWLES achieved its standing among many original equipment manufacturers as a valued and trusted supplier of washer, sunroof, and powertrain components.  Proven product effectiveness and focus, guided by key partnerships, garners the benefits to find real solutions to customer challenges, thereby Making Vehicle Safety Systems Safer.

Media Contact:

 

Alicia DeCroix

Director of Marketing and Planning

marketing@dlhbowles.com

dlhBOWLES returns to CES with exciting new products

Written by Alicia DeCroix, Director of Marketing and Planning at dlhBOWLES, Inc. October 1, 2021 

I am pleased to announce dlhBOWLES’ return to CES 2022 with a host of new products to display in our private suite at the Wynn Encore hotel.  This year will be bigger and better than years prior as we invite our potential customers to schedule a private meeting, attend one of our lunch presentations, or our cocktail party hosted by our Fluid Control Unit partner, RAPA. 

Our Engineers have been diligently working to develop new products to support the current needs of the Automotive Industry as well as for prevention of Covid-19 through a project with 3Oe Scientific and their exciting new product Iggy™.  They will be on-site with a demonstration unit to provide extra protection to our guests and team throughout CES 2022, as well as to discuss how an Iggy™ would fit into the Automotive Supply chain to keep our workers safer from Covid-19. 

This year, we also stepped up our game alongside the Automakers to develop products to support the accelerated growth of Electric Vehicles.  Our product lines now include Thermal Cooling lines and associated components.  Just like our core Washer systems, Powertrain, and Sunroof Products, these Cooling lines are custom engineered solutions to fit the needs of every vehicle and customer we work with. 

Last but certainly not least, we will have on display at CES 2022 our multi-zone cleaning system announced earlier this year.  Our demonstration unit will feature all components of the system including traditional cleaning, air cleaning, and the fluid control unit developed with our partner, RAPA. 

It may seem too early to start planning for CES, but its only 3 short months away!  Take a few minutes to schedule your flight and hotel to join us in Vegas to get back in the game and see what everyone has been working on the last 18 months!  While you’re at it, add a stop in our suite to your Itinerary during the show using our scheduling tool at https://calendly.com/dlhbowles-ces-2022 . 

Our team is excited to see you there on January 5th!   

Clēr™ Products Video Just Released

The focus of our Clēr™ product line is to answer the challenge presented by increasing reliance on lenses and sensors of today’s automotive safety systems (e.g., Blind Spot Detection, Lane Keep Assist, Collision Avoidance) and their vulnerability to road grime and other obscuration.

Without question, Advanced Driver Assistance Systems (ADAS) like LiDAR and Radar offer a better customer experience.  Automakers are strengthening customer connections through a broadening of these new ADAS system capabilities.  Nevertheless, lenses and sensors, like human eyesight are easily obscured.

To enable optimum system functionality, modernly equipped vehicles need sensor cleaning to assure reliability.  With this understanding came the discovery that manual cleaning is cumbersome, inefficient, and untimely.  This led dlhBOWLES to pioneer its first front camera cleaning system on the 2012 Ford F-150 Raptor.  Eight years later and drawing from our over 60 years of automotive innovation and deep strength in research and development, we established the Clēr™ brand in 2020 to coincide with the announcement of our partnership with another longtime industry leader, the RAPA group of Selb, Germany and Auburn, Alabama.  With RAPA, we developed our fluid control unit (FCU) which can be configured with as few as three independently controlled cleaning zones, while its modular format facilitates additional multizone expansion for even the most complex system design.

Clēr™ products integrate with existing washer systems and are durable enough to withstand the demanding environments of the toughest application to enhance sensor performance on vehicles and make safety systems safer.  For more information, please visit the Clēr™ page on our website, and enjoy our new video.

 

dlhBOWLES expands Clēr™ product line to include Fluid Control Unit for multizone Camera and Sensor cleaning

COLUMBIA, Md., May 13, 2021 (GLOBE NEWSWIRE) — dlhBOWLES and RAPA Automotive announces their Fluid Control Unit (FCU) is now commercially available. First presented at CES 2020, the newly developed FCU supports the innovative technology of Advanced Driving Systems (ADS) and Autonomous Vehicles (AV).This was developed together with the valve specialist RAPA Automotive, headquartered in Germany.

This strategic partnership brings together the expertise of two companies to make a technological leap in the automotive industry and to the field of autonomous vehicles in the future.

With growing demand of Advanced Driving Systems (ADS), vehicles on the road today are challenged to keep their Camera’s and Sensor’s functioning at optimal levels. The Clēr™ FCU enabled through RAPA’s expertise of valve design, controls
when, how, and how much air or liquid is distributed to a vehicle’s camera or sensor to clean it. Vehicle owners can feel confident that their ADS features will maintain functionality while the vehicle is in operation. dlhBOWLES provides cleaning systems for automotive cameras and sensors that seamlessly integrate into a vehicle’s existing washer system, improving the
effectiveness and safety of today’s Advanced Driving Systems and tomorrow’s Autonomous Vehicle technology.

For over 60 years, dlhBOWLES has been a pioneer of innovation thanks to their deep strength in research and development leading to more than 250 patents in fluid management systems and devices. dlhBOWLES has achieved its standing as
a valued and trusted supplier of washer, sunroof, and powertrain components to many original equipment manufacturers. Proven product effectiveness and focus guided by key partnerships brings the benefits gained to find real answers to
customer pain points thereby making safety systems safer.

Follow dlhBOWLES on LinkedIn or Facebook or RAPA on LinkedIn to stay informed of the latest developments.
For more information, visit www.dlhBOWLES.com and www.RAPA.com

Global shift in demand leads to new automotive challenges

Written by, Alicia DeCroix, Marketing Manager at dlhBOWLES, Inc.
February 8, 2021

The world continues to battle COVID-19 with multiple vaccines now available, unfortunately roll-out is slow at best and it is hard to predict when enough people will be vaccinated for life to return to “normal”.  Automakers and suppliers continue to deal with isolated infections and absenteeism, but production has not been directly affected by infections since very strict protocols are in place to protect workers.

The latest ripple in the automotive industry began to really take form in January as a global shortage of semiconductors began shutting down production a week or a shift at a time for various automakers and manufacturing plants around the world.  The semiconductor shortage is a direct consequence of the wide-spread automotive shutdowns and reduced production that occurred nearly a year ago and was exacerbated by an increase in demand of consumer electronics.

The pandemic has changed the way we work, school, and entertain and plainly explains the priority on electronics.  More people than ever are working from home or attending school virtually.  Companies had to quickly replace desktop computers with laptops and schools had to issue computers to students to attend school virtually.  In addition, stay at home orders and the lack of entertainment outside the home led to increased demand in gaming systems and other personal electronic devices.  This increase in demand grew in the cold winter months as less people brave the outdoors for recreational activities.

Manufacturers of semiconductors adjusted their production levels and production priorities last Summer to meet the increase in demand for consumer electronics and a lower projected demand for vehicle production.  When vehicle production came storming back in early Fall to pre-pandemic levels, adjustments could not be made fast enough to adjust to the new level of demand.

So here we are, early February with nearly 300 thousand vehicles projected for lost production so far in North America, and 1.2 million globally.  Projections show that this issue will last at least through March 2021, but automakers are planning to make-up that volume in the second half of 2021 as vehicle inventory levels are historically low and vehicle sales remains high. The demand is there – supply needs to rise to meet it.

Of course, it can’t be automotive without multiple supply challenges stacked on top of each other.  More issues to watch in coming months are material shortages (steel, aluminum, plastic), Logistic delays (air, ocean, and port delays) and finally sea container shortages.

Buckle up for another wild ride in 2021.

 

About the Author

Alicia DeCroix is the Marketing Manager at dlhBOWLES, Inc. in Columbia, Maryland.  She has a Bachelor’s degree in Business Management from Eastern Michigan University and a Master of Science in Management, Strategy, and Leadership from Michigan State University.  She has worked in the Automotive industry for 20+ years and is a seasoned veteran in forecasting and analyzing the Automotive Industry providing stakeholders with insight to drive business forward.

The end of 2020 brings flickering lights at the end of the tunnel

Written by, Alicia DeCroix, Marketing Manager at dlhBOWLES, Inc.                                                                         December 21, 2020

As we near the end of 2020, it can be hard to wrap our heads around what happened and where we are going as a country and as an industry.  Our heart goes out to all the people still suffering from the wrath of 2020 that has left the world in disarray.  Many are saying the end of this pandemic is near.  Now that we have several vaccine options available and we can move onto the next chapter and make this decade one that is not defined by COVID-19, but defined by how the world came together to fight COVID-19 and save lives.

In the final weeks of 2020, the world is beginning to vaccinate front line health care workers through a historically fast development and approval process that led to Emergency use authorizations for eight vaccines worldwide to date, two of these in the United States.  Despite the news of a vaccine, it appears the general population still won’t be able to obtain the vaccine until after April 1, 2021.  Because of this, the economy is not expected to see significant improvement until the summer of 2021, prompting many countries to infuse more money into the economy through stimulus packages.

Throughout 2020, new vehicle sales have been lower than predicted before the pandemic, keeping in mind we were already anticipating an industry correction and downturn.  However, performance outpaced expectations for many on a monthly basis from June through October.  Unfortunately, November and December have seen a dip due to a number of factors.  The latest surge in COVID-19 cases, lacking inventory due to supply chain and workforce issues, and delayed purchase due to economic concerns by consumers leads us to believe that Q1 2021 will also see lower sales as the world finishes its recovery.

We would argue that lower vehicle sales, is not necessarily a bad thing for our industry right now.  The disparity between vehicle sales and production throughout the year has led to low inventory levels in some of the most popular vehicles and Automakers are struggling to balance the inventory.  The low inventory is causing many twists in vehicle sales with buyers purchasing alternative vehicles or delaying their purchase until the equipment package that they want in their favorite vehicle is available.

As of today, 2020 U.S. Vehicle Sales are expected to finish around 14.3M units increasing 10% to around 16.0M in 2021.  This likely will materialize through a flat daily sales rate for the first few months of 2021 ramping up to pre-pandemic levels and leveling off during summer.  Timing will remain critical in 2021 for Automakers.  The launch of several key vehicles will fuel sales early on in 2021 such as the re-designed F-150 (late 2020), Grand Cherokee (Q2/Q3 2021), Wagoneer (Q2 2021), and finally the in Bronco (Q2 2021).

A few wild cards exist in the production forecast with the launch of many new electric vehicles from GM, Lucid, Rivian, Faraday and Lordstown Motors. Although these vehicles only make up around 75k units of the annual forecast, their success in the market will drive the direction of the electric vehicles across all OEM portfolios in the future years.

There is much to look forward to in 2021, albeit still some significant uncertainty.  As we end this year, everything points to a better year to come for people and businesses across the world.  We think we can all take a deep breath, enjoy the holidays, and ring in the new year with less dread and a more positive outlook towards the future.

 

About the Author

Alicia DeCroix is the Marketing Manager at dlhBOWLES, Inc. in Columbia, Maryland.  She has a bachelor’s degree in business management from Eastern Michigan University and a Master of Science in Management, Strategy, and Leadership from Michigan State University.  She has worked in the Automotive industry for 20+ years and is a seasoned veteran in forecasting and analyzing the Automotive Industry providing stakeholders with insight to drive business forward.

dlhBOWLES Mexico Earns Ford Q1 Certification

dlhBOWLES is honored to attain Q1 status and recognition as one of Ford’s preferred suppliers in the automotive industry. 

 There are few universally recognized certifications within the Automotive industry which collectively exemplify excellence.  The Ford Q1 Certification is awarded to Ford suppliers who demonstrate excellence beyond the ISO/TS certification requirements in five critical areas: capable systems, continuous improvement, ongoing performance, superior manufacturing process and customer satisfaction.  The award recognizes consistently good performance in quality, delivery, robust operating systems, material management and compliance with environmental system requirements. 

 “We are proud of our Reynosa, Mexico Team for their relentless pursuit of excellence,” said John SaxondlhBOWLES Chief Executive Officer.  “Our partnership with Ford has been strengthened with the award of Q1 in Reynosa.  We look forward to continuing our decades long partnership with Ford and appreciate the faith they have put in us for these many years.” 

 Target and present Q1 status: ACHIEVED. Great Job, Team!