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The Japan Times
WORLD EYE REPORTS
ONTARIO







©THE JAPAN TIMES
Saturday, March 27, 2004

Belting up North America's automotive market

Before a consolidation trend in the 1970s, the number of seat belt makers around the globe numbered 20, of which 13 operated in North America. Today, there are only five surviving seat belt makers in the world, among them Tokai Rika, which chose to keep its subsidiary Quality Safety Systems (QSS) in Ontario.

QSS was established in 1986 as a joint venture with Canada’s TRW to manufacture seat belts for Japanese automotive manufacturers in North America. Although it is last seat belt maker operating in North America (excluding Mexico), QSS has always remained competitive despite the higher wages in Canada.

In June 2003, Tokai Rika acquired TRW’s 60 percent share in QSS, making it a fully owned subsidiary of Tokai Rika. The change resulted in a company with a clearer direction. QSS has grown more efficient and more ready to face the greatest challenge to the region’s automotive parts industry – competition from Chinese-made components that could potentially displace North American suppliers.

“We must drive our operating costs down through innovative designs and the selection of materials that perform the same but at lower costs,” says Bradley Hedderson, president of QSS. “Prices will always be a challenge in the automotive industry. To survive, everyday a company must focus relentlessly on doing things more efficiently and less costly than the day before.”

Bradley Hedderson, president of Quality Safety Systems

In the last decade, the market share of Japanese carmakers in North America has steadily increased at the expense of its US competitors. Similarly, QSS grew in the 1990s through its affiliation with Toyota. The company currently supplies more than 85 percent of Toyota’s North American demand.

Hedderson says: “QSS has always focused on being proficient at localizing Japanese seat belt designs to North America and adopting principles from the Toyota Production System. This has allowed QSS to remain competitive while operating in Canada. Now, with a strong foothold and relationship with Toyota, our goal is to branch out and capture previously unavailable market by using the same techniques,” says Hedderson.

The executive team celebrates the launching of a reconsolidated QSS

TOP


NYK Logistics
www.nyklogistics.ca

Honda
www.honda.ca

Suzuki
www.suzuki.ca

Subaru
www.subaro.ca

QSS
www.tokai-rika.co.jp

Metal One
www.mtlo.co.jp

Shiseido
www.shiseido.co.jp