Every year, the best suppliers of Mercedes-Benz are being honored in the three categories of quality, innovation and sustainability. This year, KIRCHHOFF Automotive is also among the award winners. For the purchasing area "Production Material", our company received the award for an exceptionally good performance in the area of quality. The appreciation reflects the cooperative partnership between Mercedes-Benz and KIRCHHOFF Automotive.

CEO J. Wolfgang Kirchhoff accepted the award together with Vice President Sales Klaus Lötters and Sales Director Christian Arens on June 19 in Sindelfingen.

"We were very pleased to receive the award and the associated recognition for our achievements over the past years. Numerous colleagues from many different KIRCHHOFF Automotive locations have contributed with their dedication to our achieving this high level of customer satisfaction. The award is also an incentive for us to successfully master future challenges with our customer Mercedes-Benz," said Christian Arens.

J. Wolfgang Kirchhoff added: "This award is both a great honor and an obligation for us to continue supplying our customers with products of the highest quality. A heartfelt thank you to all colleagues in the central divisions and, of course, the production plants, who have made this success possible through teamwork and a high level of personal commitment.”

With the Supplier Quality Excellence Award, GM recognizes the top performing supplier manufacturing locations. These suppliers are required to meet or exceed very strict quality criteria. "You are a critical part of the team who helps ensure our customers are delighted with their product purchase," said Rick Demuynck, Executive Director - GM Global Supplier Quality & Development. "This award is to recognize your performance and thank you for consistently providing quality at volume to our GM manufacturing plants as we continue to navigate through our ever-challenging environment." 

On behalf of GM's entire Global Supplier Quality team, he thanked our team for their continued outstanding performance and for "being a valued partner!"

Joshua Forquer, EVP Sales and Technical Development, added, ”The team in North York continue year after year to prioritize our customer and the quality of the products that we ship, first. This sense of community from the team in North York continues to create opportunity for the plant. Recently GM has awarded new business to North York that will go on the new exciting BEV pickup line up! This assembly, along with large BIW assemblies for the ICE version, make North York a key facility supporting GM and their family of trucks.”  

Lucian Maduta, Plant Manager in North York, added, “We are very honored to receive this award, a testament to the commitment of our team to achieving excellence. This recognition reinforces our dedication to delivering superior quality and strengthens the partnership we have built with our supplier.”

Picture: Plant Manager Lucian Maduta with the GM Supplier Quality Excellence Award.

Strategies such as the impact of geopolitical and market trends on respective procurement categories, risk mitigation plans, the CO₂ reduction roadmap and sustainability initiatives - were some of the key topics covered at the procurement meeting.

Beyond the technical discussions, the event also included time for team-building activities, including a trip to the bowling alley.

That evening, the Supplier of the Year award was hosted by the North American Procurement Team in Richmond Hill, Ontario, Canada.

Jim Montagano (EVP Operations) opened the ceremony with encouraging sentiments, commenting that “we cannot forget that during the difficult years of COVID-19, we all went through tough times (both personally and in business). Your (suppliers’) support during those tough times was very appreciated, as reflected by the zero shutdowns caused by our supply base during those two years.”

Sumit Dutta (VP Procurement North America) explained the selection criteria of the suppliers of the year: collaboration with stakeholders, service, competitiveness, quality, delivery, and launch support.  If a supplier stands out in all of them, they have taken their level from ‘customer satisfaction’ to ‘customer delight’. He clarified that price is not the most important criteria, but it is how the supplier collaborates with various functions during a product’s life cycle. For example: helping win new business, new product development, 24/7 operational support, helping launch new projects on time, and their contribution in meeting the price, quality and delivery objectives. Sumit Dutta explained how each of the suppliers faired in each of above categories, resulting in them being chosen as Suppliers of the Year. 

The 2023 Supplier of the Year recipients for each category were:
 

1. Raw Material, Riverview Steel
2. Bought In Parts, Canada Tubeform,
3. Sub Contracting, Powder Cote II,
4. Logistics Buddy’s Upstate Logistics LLC,
5. Capital & Tooling, Tri-Tech Fixtures LTD,
6. Mexico Excellence Award, Mosmex
7. Prototype Services, APhase LL Inc.  

Darik Chapman, (Senior Buyer, Raw Material) commented after the event and meetings: “I had such a positive energy on the way home and felt proud to be part of a great team of purchasing professionals. We all have so much potential to do so much for KIRCHHOFF Automotive. I look forward to what is to come and meeting again!”

“The supplier awards event was a showcase of our best suppliers across many different categories.  I was pleased to meet and speak with many of them at this event. These were the best of the best and it showed. It was a great event and Sumit and the procurement team did a wonderful job putting it all together.  I really enjoyed the evening,” said Mark Fabischek (EVP Global Product Development).  

At the beginning of his visit, its highlight took place right away - the Prime Minister visited the hot forming line. This had been built in 2019.

For the employees in the hot forming and welding areas, which the Prime Minister then visited, the personal conversation with the politician was a highlight. They explained their tasks to him and how accident-free production with 100% quality is possible.

In showrooms specially set up for the visit, Dr. António Costa learned about various stamped parts and welded products from Ovar and Cucujães, and what kind of technologies are used for them.

During the press conference, the Prime Minister praised the good company organization and structure, the impressive level of technology, and state-of-the-art equipment. He emphasized the strong impact that our industry has on the region. At the same time, he also said that the country needs more companies like KIRCHHOFF Automotive: "If you target to grow 5% per year and exceed that target, we, the country, will continue to grow with you! Your resilience is very important for maintaining jobs, for the growth of exports, and for the country. I would like to thank you, as this is a sign of confidence for the country as a whole. When companies are satisfied with their investment and have the prospect of strengthening their investment, this is a great sign of confidence for our future."

In a good mood and smiling, the Prime Minister left the plant after about an hour. For the employees, it was a special day that left an impression - after all, it's not every day that you have the opportunity to talk to such a high-ranking politician.

"Initially, we looked for suitable space near our plant in Querétaro and considered a larger extension," reports Piotr Tomaszewski, Vice President Manufacturing Engineering (ME) at KIRCHHOFF Automotive.  However, since the available space in Querétaro only allowed for an expansion of just over 4,000 m², the Corporate ME team looked at alternative options near KIRCHHOFF Automotive's Mexican plant in Puebla.

"We were lucky, because by chance a suitable building became available just 100 m away and directly opposite the Puebla plant," says Piotr Tomaszewski. 

In the planning phase, the teams in Mexico are working hand in hand to install equipment for the technologies resistance spot welding and arc welding there in accordance with our Lean standards, which ensure an optimal production flow. On these lines we will produce body-in-white parts and cross car beams for new customer programs. The goal is to get the building up and running on time in coordination with our customers' production schedules – production start is scheduled for June 2024.

Current plant in Querétaro. The Querétaro II plant is scheduled to start up in 2025, which will then include an e-coating line with the possibility of thick-film coating as well as preparations for a possible mild pickling process. The expected plant area will be 15,000 m².

Almost 300 vehicle models with alternative drives were presented in Shanghai in April, two thirds of which were vehicles from Chinese manufacturers. Since these manufacturers have not only caught up with the major international carmakers, particularly in the areas of design and entertainment systems, but are now themselves setting standards for innovation and connectivity, the halls of the Chinese manufacturers were virtually magnets for the mostly young audience.

For our Chinese sales team, our booth was the perfect basis for making contact with the new car manufacturers in China. CTO Dr. Thorsten Gaitzsch: "The trade show in Shanghai is very important for us, as we expect more sales with Chinese manufacturers in the coming years. Here at our booth we were able to make valuable contacts with the decision makers of potential future customers."

As special guests, CTO Dr. Thorsten Gaitzsch welcomed VDA President Hildegard Müller and key contacts from SAE-China (Society of Automotive Engineers).

Almost 300 vehicle models with alternative drives were presented in Shanghai in April, two thirds of which were vehicles from Chinese manufacturers. Since these manufacturers have not only caught up with the major international carmakers, particularly in the areas of design and entertainment systems, but are now themselves setting standards for innovation and connectivity, the halls of the Chinese manufacturers were virtually magnets for the mostly young audience.

For our Chinese sales team, our booth was the perfect basis for making contact with the new car manufacturers in China. CTO Dr. Thorsten Gaitzsch: "The trade show in Shanghai is very important for us, as we expect more sales with Chinese manufacturers in the coming years. Here at our booth we were able to make valuable contacts with the decision makers of potential future customers."

As special guests, CTO Dr. Thorsten Gaitzsch welcomed VDA President Hildegard Müller and key contacts from SAE-China (Society of Automotive Engineers).

In October 2022, the team had received the national award in the category of "Potential Quality Innovations" for the complete digitalization and simpler implementation of the measurement process. As result, they also qualified to participate in the international competition among many large companies with more than 600 employees. The project addresses the digitalization of the control accompanying the production process, which eliminates the need for paper for the measurement process.

Being among the finalists means being among the best in the competition. "We are pleased that our project made it to the finals, and are proud of the team that invested time and energy in this exemplary project – from the initial idea, to its integration into daily processes," says Szilárd Méri, MDO of the Hungarian plant.

The award confirms the good reputation of our company at a national and international level, and shows that we excel not only in manufacturing products but also in innovative solutions. Quality manager Tamás Máthé says: "To participate as a manufacturing company in a competition among companies who mostly specialize in innovations, it fills us with

They are thus strengthening their cooperation on sustainability issues. This includes a project to develop and test the use of ArcelorMittal’s XCarb^® recycled and renewably produced Usibor1500® steel.

In the future, this will replace conventionally produced steel grades with which KIRCHHOFF Automotive produces high-strength and at the same time lightweight safety-relevant body parts that the company supplies to leading vehicle manufacturers in Europe, Asia and North America.

Although low carbon-emissions steel is significantly more expensive than the conventionally produced material, this competitive advantage is increasingly being lost due to government CO₂ levies. Steelmakers' customers are pursuing ambitious climate targets, which are driving demand for green materials to such an extent that a supply gap of up to 20 million tons is expected by 2030 (source: Handelsblatt).

CEO J. Wolfgang Kirchhoff emphasized: "I am delighted that together with the world's leading steel producer, ArcelorMittal, we will be taking a further and decisive step towards more sustainable mobility. With our body-in-white solutions we ensure safe mobility in particular through the high strength of special steel grades. The future use of low-carbon steel will enable us to make production significantly more sustainable, as 90% of our carbon footprint is currently determined by the use of conventionally produced steel and aluminum. Based on orders for upcoming generations of vehicles from international car manufacturers, we see demand for such safe and sustainable body-in-white parts will increase strongly in the coming years."

Yves Koeberlé, CEO ArcelorMittal Europe - Flat Products, said, "KIRCHHOFF Automotive is a highly respected company both here in Germany and worldwide, so ArcelorMittal Europe - Flat Products is very pleased to have further strengthened our relationship with them by signing the Memorandum of Understanding. The agreement will guide the work we are doing to expand the use of low carbon-emissions steel in complex, highly engineered vehicle parts. As a result of the MoU, we will also work with them on other vital sustainability topics, specifically the role of steel in the circular economy." 

As early as 2022, KIRCHHOFF Automotive began a process of determining the location of greenhouse gas emissions in their supply chain (Scope 3), both upstream at suppliers and downstream at customers. The company also has an overall goal to establish a high level of sustainability in the automotive industry’s supply chains which is also reflected by the fact that KIRCHHOFF Automotive is one of the founding members of the "Responsible Supply Chain Initiative RSCI e. V." association.

KIRCHHOFF Automotive’s internal talent management program, KATE, helps develop employees who demonstrate outstanding performance and potential. Over the next years, they will participate in many training sessions and individual development projects.

 “I’m very excited to have a mentor and to be a part of this program!” says Victor Tang, senior technology development specialist at Aurora corporate in Canada. He is one of the six colleagues who joined our KATE program in October 2022.

 “I am very interested in expanding my leadership skills and learning more!” commented Stephen Cook, quality specialist in Lansing, USA.

Urszula Balcerek, HR country manager of Poland, thinks, "A company's opportunities for growth and success are closely linked to the development potential of its employees; an increasingly important factor in choosing an employer is the opportunity to develop and improve skills. Companies are therefore implementing development programs such as KATE at our company. The fact that the third round is now starting in Poland is not only testimony to the need for employee development, but also confirmation that talent development is a high priority in our company."