Alan Smith
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The chairman of Advanced Accessory Systems (AAS) is a former member of the Board of Directors for General Motors Corp., a past president of GM Canada, and a former chief financial officer for the world's largest automaker.
Alan Smith admits there are advantages coming from the OEM side of the business. "It helps you evaluate things. The biggest advantage of my OEM background is I know how they think, how they're organized, and that you need to match your organization up with their organization. Spend time listening and working with (OEM) leaders, the people that plan the business," Smith offered.
The listen-well advice has vital global implications. So far, AAS roof racks and trailer hitches are only OEM equipment in North America and Europe. Smith said there is a very solid reason why the number one roof rack provider to OEMs in the United States and the number one trailer hitch OEM and aftermarket supplier (via Brink) in Europe has yet to extend its operations into other locales.
"We feel we need to move along with some of our major customers in pace, in stride," he said. "It is difficult doing business outside of North America and Europe. You don't just wake up one morning and say, 'I think we'll go global.'"
For one thing, Smith said, AAS wants to wait until supply contracts for foreign markets are in place. "Let the OEM decide when the market is ready," he said, "but get awareness of your company to the people who are planning the new modular worldwide plants."
Global expansion is coming, though. AAS's first step outside Europe and North America looks like Brazil—possibly before 2000. The company plans to manufacture products locally, initially through a local supplier tie-in. AAS would handle the engineering for product as well as plant layout.
"We're always evolving," Smith said.
Kami Buchholz
