Automotive News Canada - October 2016 - V2 - 21

TPP?
21

* OCTOBER 2016

LINDA HASENFRATZ,

CEO of Canadian supplier
Linamar, says bring it on
By JIL MCINTOSH
TORONTO CORRESPONDENT

WITH 18 PLANTS IN EUROPE, SIX IN ASIA AND A SEVENTH UNDER CONSTRUCTION
in China, globally focused Linamar of Guelph, Ont., wants to see the proposed Trans-Pacific
Partnership (TPP) become reality.
President and CEO Linda Hasenfratz sees far more opportunity than risk in what would become
the world's largest single free-trade agreement.
Recognizing that some industry interests worry about the TPP, fearing the added competition it
would bring, Hasenfratz would welcome it.
"I'm a big believer in eliminating trade barriers and opening markets broadly," she says. "The TPP offers an opportunity for purchasing equipment and materials from more countries more economically, and I think there's opportunity on both
sides of the scale.

Linamar CEO Linda
Hasenfratz believes
the Trans-Pacific
Partnership offers
more opportunities
than risk.

With a single lathe in
his basement, Frank
Hasenfratz started
Linamar in 1966.

"I know I can compete on a global
stage. I look at the products we're producing today, and they're highly sophisticated and very challenging to manufacture,
but we've developed processes, tooling
and capabilities over many years.
"People worry about content rules
under TPP compared to NAFTA, but I
like to point out that Canadian content
requirements under NAFTA are zero.

MORE COMPETITION
"We have to compete now with the
U.S. and Mexico. With TPP, we'll compete with a bigger basket of people,
but we've been able to win enormous
amounts of new business.
"We have great quality and value and
that's what wins business, not something
as transient as low-cost labour."
Hasenfratz's biggest challenge is
much closer to home: finding qualified
people in a labour market short of skilled
workers. More than 600 apprentices work
with Linamar globally, but Hasenfratz
needs more.
"We work closely with local colleges in all the regions we operate in to
support and attract people into skilled
trades," she says. "That whole area of
attracting people, developing them, and

making sure the pipeline's full is a big
challenge and one where we spend a lot
of time and energy."
She's also very keen on new technologies, including alternative fuels and
autonomous driving. Engines and trans-

LINAMAR HISTORY
Company started in Frank Hasenfratz's
Guelph, Ont., basement in 1966 with a
single lathe.
n Linamar was named after his wife,
Margaret, and their two daughters,
Linda and Nancy.
n Daughter Linda was named CEO in
August 2002 after training since 1990
on all aspects of the company.
n Linamar produces auto parts at 20
locations in Southern Ontario today, all
but one in an around Guelph, employing more than 12,000 people.
n Operates 18 plants in Europe, six in
Asia with a seventh under construction
in China.
n Linamar expects to do Cdn $6 billion in
sales in 2016.
n

missions are a $500 billion market globally, she says, and even a small outsourcer
can do well.
"Vehicle volumes are flattening off in
North America, but if we can continue to
increase our content per vehicle, we can
continue to grow," she says.
"It's a long-term story, and we're
growing here (in Canada) and in all our
global centres."

RECORD OF GROWTH
Hasenfratz has headed Linamar,
which makes powertrain and vehicle
components as well as aerial work platforms, since 2002.
The company was started in Guelph
by her father, Frank Hasenfratz, in 1966
with a single lathe in his basement.
Today, it anticipates Cdn $6 billion in
sales this year and, with several new programs ready to launch, expects to reach
close to $8 billion by 2020.
Linamar produces auto parts at more
than 20 locations in Southern Ontario,
all but one (in Windsor) in and around
Guelph, where it employs more than
12,000 people.
"We've been growing our sales and
earnings in double digits for quite a few
years," Linda Hasenfratz says. "Our area

of focus is primarily in powertrain and
driveline, and while 70 per cent of the
content is in-house (at the OEM), we're
seeing higher levels of output to the supply base.
"Our type of product is also highly capital-intensive, and by outsourcing, our customers can put that money
into vehicle capacity. We do products for
hybrid vehicles, and we're also supplying
electric vehicles."
Linamar also operates in a strategic alliance with Swiss company Georg
Fischer Automotive for high-pressure
light metal die-casting in the U.S.
- ANC

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