28 August 1998: US-based international automotive mirrors, windows and interior trim and lighting and optical lense producer, Donnelly Corporation and a partner have developed what they claim is “the …
28 August 1998: US-based international automotive mirrors, windows and interior trim and lighting and optical lense producer, Donnelly Corporation and a partner have developed what they claim is “the first true just-in-time window system,” according to a recent press report. The joint-venture company reportedly wants to convert its window glass to the new product, which Donnelly says is the only system that can be assembled entirely in a supplier“s plant. Trials were completed last month, and the company has started shopping the idea to carmakers, the report said. The ready-to-install window systems eliminate the stockpile of glass and the handling of toxic chemicals that a car assembly plant now must endure, said Dwane Baumgardner, chairman of the Holland, Mich., glass and mirror maker. “Visit just about any auto assembly plant, and you can find people who“ll tell you that installation of vehicle window glass is a pain in the neck,” said Baumgardner. “It puts a messy job into our hands instead of our customers“.” The project“s secret ingredient is a special adhesive and sealant that can be physically activated by the carmaker when the window is ready for mounting on the chassis. The material was developed by Donnelly“s joint venture partner Essex Specialty Products Inc., an Auburn Hills, Mich., subsidiary of Dow Chemical Co. Working with another partner, Donnelly has established the industry“s first Asian plant to make electrochromic mirrors. The exterior and interior mirrors – which automatically dim after sensors detect glare – will be built at a Penang, Malaysia, factory run by joint venture partner Varitronix EC Mirrors Ltd. The plant, which opened this month, can make more than 4 million electrochromic mirrors annually, the report said. Still, the company has yet to find Asian carmakers to use the emerging products, which cost 10 times that of conventional mirrors. Until the Asian market buys into the system, the Malaysian mirrors will be shipped around the globe to carmakers using them in Europe and North America, Baumgardner said. Meanwhile, the company said a delay in its planned European restructuring led to overall losses in its European automotive operations for fiscal 1998. “The company“s goal is to see additional improvements in those operations in fiscal 1999,” Donnelly said in a statement. North American automotive operations finished the year with record sales and net income, the company said. “While I am pleased with the progress we“ve made in improving our operating performance, I am disappointed that progress was overshadowed by the negative developments at our digital imaging affiliates,” said Baumgardner. He said the substantial losses at Donnelly Optics and VISION Group prevented the company from achieving financial goals for the year. “That situation is intolerable for the company, and our task now is to resolve those issues quickly and focus on earning a more competitive return for our shareholders,” he said. The company earlier reported fourth quarter net income of US$ 3.5 million or US$ 0.34 per diluted share, up from US$ 1.4 million or US$ 0.14 a share in the same period a year earlier.