The lack of a gleaming, Taj Mahal-type headquarters belies Superior's success. It's the payoff for founder Louis Borick's philosophy of tightly controlled costs, investment in new technology for a competitive advantage and vehement fear of debt. The picture is grim for most publicly held auto suppliers. The heavy-duty truck market is in the dumps, the North American parts aftermarket remains depressed and the Big 3 are in a sales slump. Supplier stock prices have hit five-year lows as investors worry about automakers' relentless price cuts and reduced access to capital, and the failure of industry consolidation.
Analysts expect more failures among suppliers.
Today, Superior Industries wheels are found on the Ford Explorer, BMW Z3, Pontiac Aztek and more than 50 other models. Superior wheels will be fitted to the 2002 Toyota Camry. Until recently, Ford and General Motors accounted for 90 percent of Superior's automaker wheel sales. Borick listened closely to his customers and spent heavily for the best casting and machining technology when it gave him an edge. When peers embraced the acquisition binge as the growth engine of the 1990s, Borick focused on internal growth and still racked up annual sales growths as high as 20 percent.