TI Automotive considering additional heater hose line as well as heater hose outsourcing

TRAVERSE CITY, Mich. (Aug. 8)—TI Automotive Ltd. will decide by the middle of next year whether or not to add additional heater hose capacity at its Reynosa, Mexico, plant or to outsource incremental work, said Rich Kolpasky, president of global carrying systems. "The good news is we´re at full utilization; the bad news is there will be a significant investment to get a new line," he said during an interview at the 2003 Management Briefing Seminars held Aug. 4-8. "My guess is we will win enough business to put in that line." General Motors Corp. is TI´s main customer for heater hose, but last year the company won its first contract with DaimlerChrysler A.G. to supply heater hose assemblies for the new 2005 Grand Cherokee. The manufacturer also is bidding on business with Ford Motor Co. and expects its sales to Tier 1 assembly suppliers also will increase slightly, Kolpasky said.