Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
web
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • International Elastomer Show
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Executive Action
    • Government/Legal
    • ITEC
    • Opinion
    • Technical Notebooks
    • HEXPOL Sponsored Content
    • Starting young: Rubber Division targets high schools to fill talent gap
      ChemSpec enjoying busy 2019 with new agreements, division
      view gallery
      18 photos
      Rubber Division honors leaders, students at Business and Awards Meeting
      view gallery
      9 photos
      Rubber Division wraps up 2019 International Elastomer Conference
    • Column: EV hype or reality? Follow the money
      How General Motors puts batteries through their paces
      As e-commerce grows, companies seek best ways to get products to customers
      ContiTech acquires CRP's belt kits program
    • Yokohama releases new E-3 radial tires for scrapers
      Goodyear to roll out online tire retail program in Europe
      Cooper recalls U.K.-made Avon motorcycle tires
      Continental app helps farmers calculate ag tire pressure, load
    • Wacky World of Rubber: Hunting for rubber ducks on cruise ships
      Trelleborg completes Tritec Seal acquisition
      John Grasmeyer focuses on education for NIBA
      Avon marks 2019 as 'transformational' year
    • Hexpol names Ken Bloom president for North America
      LSR technology shines at K 2019
      TPC plant explosion's impact on butadiene market still being assessed
      Monolith appoints chief technology officer
    • Hexpol names Ken Bloom president for North America
      Monolith appoints chief technology officer
      Delta-Energy Group selects new CEO
      John Grasmeyer focuses on education for NIBA
    • As tool makers press to bring back tariffs, other manufacturers push back
      AMBA files formal request to bring back tariffs on Chinese molds
      Auto parts makers pay $23 million to settle price fixing case
      USTMA aims to raise scrap tire recovery rate
    • Goodyear finds traction with soybean oil
      Cassioli expands with sales office in Alabama
      Rodolfo Comerio looks forward as it celebrates past
      Tire Industry Project launches platform for sustainable natural rubber
    • Column: EV hype or reality? Follow the money
      Column: Lessons from Best Places to Work
      Editorial: Cooper Standard a sign of changing automotive times
      Editorial: Hose industry makes big strides in safety focus
    • SSBR, bio-sourced plasticizer for conveyor belt use
      EPDM solution for automotive dense weatherstrip
      High heat resistant EPDMs for auto hose uses
      Rubber standards in today’s world economy
    • Sponsor Content
      Rubber in Transportation and Tire
      Sponsor Content
      Rubber in Wire and Cable
      Sponsor Content
      Process Control Systems Ensure Consistency and Lot Traceability While Protecting Proprietary Formulations
      Sponsor Content
      Reasons for Using Performance Additives
  • Blogs
    • Products
    • Wacky World of Rubber
    • LSR technology shines at K 2019
      New Products: Master Bond rolls out thermally conductive epoxy sealant
      New Products: Lanxess introduces vulcanization accelerator
      Covestro's CO2 technology earns Germany's President's prize
    • Wacky World of Rubber: Hunting for rubber ducks on cruise ships
      Wacky World of Rubber: Floating ideas for the future of mobility
      Wacky World of Rubber: Goodyear, rubber industry make parade part of Thanksgiving traditions
      Wacky World of Rubber: How to make your own Halloween mask
  • Newsletters
    • Rubber in Automotive
    • Silicone News
    • Latex News
    • Sign Up for Newsletters
    • Column: EV hype or reality? Follow the money
      How General Motors puts batteries through their paces
      As e-commerce grows, companies seek best ways to get products to customers
      ContiTech acquires CRP's belt kits program
    • LSR technology shines at K 2019
      Starting young: Rubber Division targets high schools to fill talent gap
      Column: Lessons from Best Places to Work
      New Products: LSR 3D printing technology spotlighted at K Show
    • Natural rubber producers 'extremely concerned' over disease outbreak
      Starting young: Rubber Division targets high schools to fill talent gap
      Kent Elastomer promotes two
      Corrie MacColl details landmark collaboration in Cameroon
  • Multimedia
    • Videos
    • Photo Galleries
  • Directory
  • Resources
    • Classifieds & Mold Mart
    • Data Store
    • Digital Issue
    • White Papers
  • Events
    • RPN Conferences
    • RPN Live
    • Events Calendar
    • Submit an Event
    • Webinars
    • Past Events
  • Advertise
MENU
Breadcrumb
  1. Home
  2. Opinion
November 26, 2019 12:03 PM

Editorial: Cooper Standard a sign of changing automotive times

Rubber & Plastics News Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Leo Michael

    Cooper Standard made some moves that might become a more common occurrence among automotive suppliers if the global vehicle market continues to slow.

    The supplier of sealing, fluid transfer, and fuel and brake delivery systems still derives the vast majority of its revenues from automotive applications. As such, Cooper Standard's decision to shut down 10 manufacturing sites isn't that surprising.

    It revealed plans to close four in the U.S. and Europe. It will shut down six total in Asia, confirming that the five in China will be "mothballed," so they can be brought back into operation in relatively short order if the auto markets there rebound from their current state, a prediction some are forecasting to happen after 2020.

    Jeff Edwards, Cooper Standard chairman and CEO, said negotiations in China right now are possibly the most challenging they've been since he started doing business in China more than 20 years ago. The firm took a number of unfavorable one-time price concessions, and even discontinued one customer relationship because he said the demands were so one-sided.

    Edwards also said declines the firm has seen in light vehicle production has impacted Cooper Standard, including on some of the supplier's biggest platforms. Cooper Standard said light vehicle production is down 11.5 percent in China, 3.8 percent in Europe and 2.2 percent in North America.

    Raw materials prices hit Cooper Standard to the tune of $20 million for the first nine months of the year, and the strike at GM combined with the slowdown in China cost it roughly $26 million in sales. This mostly offset any gains the firm made in productivity within its manufacturing operations.

    Like many other suppliers, Cooper Standard is becoming more global. It's also restructuring from four regional units into two global units, one focused on automotive and the other dubbed its Advanced Technology Group, which will focus on non-automotive business.

    In the process, two of its regional leaders will leave the firm, and five other executives will leave the company by mid-2020, four by the end of 2019. The resulting organization will be flatter and enable Cooper Standard to adapt quicker to changing market conditions.

    Recent reports have shown that the global auto industry is slowing down faster than projected, with the International Monetary Fund saying the sector is a big reason why industrial output has not kept up with expectations.

    Continental A.G. said recently it doesn't expect light vehicle sales to see any tangible improvement for the next five years.

    If these gloomy forecasts hold true, Cooper Standard won't be the last auto supplier making major restructuring moves.

    Letter
    to the
    Editor

    Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    SIGN UP FOR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber & Plastics News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber & Plastics News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    web
    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Contact the Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Terms of Service
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News Europe
    • Plastics News China
    • Plastics & Rubber World
    • LSR World
    • Urethanes Technology
    • Automotive News
    • Autoweek
    • Crain Brands
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • News
      • International Elastomer Show
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Executive Action
      • Government/Legal
      • ITEC
      • Opinion
      • Technical Notebooks
      • HEXPOL Sponsored Content
    • Blogs
      • Products
      • Wacky World of Rubber
    • Newsletters
      • Rubber in Automotive
      • Silicone News
      • Latex News
      • Sign Up for Newsletters
    • Multimedia
      • Videos
      • Photo Galleries
    • Directory
    • Resources
      • Classifieds & Mold Mart
      • Data Store
      • Digital Issue
      • White Papers
    • Events
      • RPN Conferences
      • RPN Live
      • Events Calendar
      • Submit an Event
      • Webinars
      • Past Events
    • Advertise