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São Paulo, Brazil, 2009/03/16 - CEVA Logistics, announced that its subsidiary AV Manufacturing (AVM), consolidated its position as one of the top tier suppliers for the Automotive Industrial Complex of General Motors, in Gravatai, by acquiring the assets of Delphi.
CEVA Logistics, a leading global supply chain management company, today announced that its subsidiary AV Manufacturing (AVM), consolidated its position as one of the top tier suppliers for the Automotive Industrial Complex of General Motors, in Gravatai (located in the countryside of Rio Grande do Sul State), by acquiring the assets of Delphi for its newly won business for General Motors. AVM will be in charge of the sub-assembly of front suspending structures and back axis of GM’s Prisma and Celta cars. The solution will include the management of an 8 thousand square meters warehouse and all the equipment that will be used for the GM service.
AVM will be responsible for the entire portfolio of services included in the sub-assembly of suspension devices and axis, consisting of the programming and purchase of 60 different components, national and international transportation, storage, sub-assembly and sequencing. The deliveries will be made using the just in time model sequenced for GM.
“CEVA is the only logistics operator to develop this kind of service in South America. We believe that full logistics solutions for assembly supply chains is a market trend, and CEVA is taking full advantage of it”, says Paulo Franceschini, Business Development Direc.
After 24 months at the GM Plant in Gravatai, AVM achieved the ISO/TS 16949 Certification and became a reference in the specific topic of QSB (Quality System Basic) of the GM customer. In addition, it reached the milestone of 400 thousand engines sub-assembled with surprising quality ratings (99.97% of products approved by the customer). AVM furthermore presented technological innovations for GM’s assembly line, with the implementation of 28 Poka-Yokes (error-proof systems), as well as 16 biometric readers, ensuring that only qualified employees can operate the work positions. AVM will also develop its own MRP system for component programming control, which will be in charge for the entire manufacturing and programming management area.
About CEVA. Making Business Flow
CEVA Logistics (cevalogistics.com) is a leading global supply chain management company. We provide end-to-end design, implementation and operational solutions in contract logistics and freight forwarding to large and medium-sized national and multinational companies. CEVA employs 56,000 people and runs an extensive global network with facilities in over 100 countries. Following the acquisition of EGL in August 2007, the new combined company had pro forma sales of € 6.3 billion.
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The statements included in this news release, and other statements that are not historical facts, may contain forward-looking statements. In addition to the assumptions specifically mentioned in the above paragraphs, there are a number of other factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, the process of combining EGL and CEVA, the actual effects of recent and future regulatory changes and technological developments, globalization, levels of spending in major economies, the economic climate in Asia and the US, levels of marketing and promotional expenditure, actions of competitors and joint venture partners, employee costs, future exchange and interest rates, changes in tax rates, unexpected costs of integrating recently acquired businesses and future business combination or dispositions and other factors detailed in risk factors and elsewhere in CEVA and EGL's most recent Annual Reports, including but not restricted to the EGL Annual Report on Form 10-K. Further information concerning the Company and its business, including factors that potentially could materially affect the Company’s financial results, is contained in the Company’s filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize (or the consequences of such a development worsen), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. EGL and CEVA disclaim any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.