The Progress of this case will be followed from a
CASE DIARY
in chronological order with links to appropriate documents.
Top of Memorandum on the
Racketeering Nature of State Farm's Misconduct
for which this is an exhibit.
The List of Exhibits
Exhibit 9
Gillis Notes from November 1992 Taiwan Trip
page 2
1. Gordon: In general, factory appeared to be capable of producing
high quality parts. CMM machines were present. Body shop
representatives were very challenging and inquisitive. Most made
very good points and Ting, who for the purpose of this trip served
as both our driver and chief interpreter, was absolutely
fantastic. He is our top inspector. Ting was responsive,
articulate and clearly understood the concerns behind the
questions he was asked. His demonstration of the "before" and
"after" checking fixtures was excellent. Mark Ferrari observed
some Pontiac fenders in a rack ready for EDP and saw problems with
inconsistent brackets. I suggested that we pull three and put them
on the checking fixture. They all failed miserably (brackets were
way off) and Mark indicated that this was a common example of
problems he had with aftermarket. The parts had not been inspected
however a previous lot had been decertified. All agreed that this
lot had to be decertified. There seemed to be hundreds of these
parts in racks which indicated that they were not doing the 1st,
each 100th and last part checks. Paul Riksen agreed that CAPA
needs to restress this requirement and that it be done before
painting. We need to find out the part's exact name and lot number
and try to order it. All agreed that because so many parts were
involved that it was likely to make it to the U.S. rather than be
destroyed.
Comments from Delegation: Welding jigs would have solved the
Pontiac LeSabre fender problem; jigs should be relocated, no
checking fixtures present; rewelding the Pontiac bracket, would
have been impossible, "when it goes that far..its gone"; set up QC
program, which requires sub assemblies to be checked; beware of
spending 80% of our time with 20% of manufacturers.
2. Ensure: Not a very good plant and the Haur Tay parts. (doors)
coming off the line at the time were very, very poor. I could see
the problems. We noted as how these were not CAPA certified so
that's a good reason to insist on CAPA. However, it supported the
notion of the Aussies and auto body guys that aftermarket parts
were substandard.
Comments from Delegation: Bad doors, non-CAPA.
3. Yung Shine: Great factory, staff and Mr. Lin were genuinely
pleased to see us. All were impressed with the factory and our
inspector was at the end of the line noting problems that were
actually somewhat minor but prevented the part from getting
stickers. All were impressed. At the end, however, I watched a
welding operation with Mark Ferrari (near men's room) and it was
being done on a very inconsistent basis. I asked Paul to check on
this.
Comments from Delegation: Better kept plant, better part; Camry
hood checked.
Gillis Notes from November 1992 Taiwan Trip
page 3
4. Summax/Haur Tay: Disaster. General condition of the plant was
poor, at the end of a relatively long tour we saw CAPA parts
coming back into the factory after being painted at Ensure and as
they were being unloaded at the dock, teh lady was putting on
stickers. I was thinking, should I suggest that we pull a few of
these and see if they fit the checking fixture...it would be a
risk but...anyways, before I made a decision someone said, "let's
pull a few and see if they fit...." First hood didn't fit, a
random selection, fully painted, seal applied and boxed. Second
hood fit within our tolerances, but exhibited gap problems and
additional problems with ripples, etc.
Comments from Delegation: Hood problems, hand crimping; hood
latching assembly; no one impressed; "decertified", not using jig
pins.
5. Three Brothers: An absolutely fantastic factory where they were
making Honda hoods and doors, tons of robots; etc., and the parts
looked great. They have not submitted a part yet but it was clear
that this was an OE facility and it made our facilities look bad.
(Note: All of the ratings that Entela gave the factories we are to
visit was "average" they must not have even considered this as
this place was fantastic and there was great variation between
Haur Tay and Gordon.)
Comments from Delegation: Fiberglass checking fixture used.
6. Jui Li: Mainly OE with little intention of more CAPA parts. Did
not need to see except good for all to see OE Quality.
7. Tong Yang: Huge Factory. Many metal parts uncertified, all plastic
uncertified, lots of plated grilles, etc. Perfect example of huge
demand for non-CAPA. Trying to get Ford Q1 and GM status. They
claim that once obtained they will build all parts the same. Hard
to believe but.... Saw many certifiable parts which were not
certified going through their warehouse form other CAPA
manufacturers. Also saw labels on many boxes going to distributors
in US (all non-CAPA). One was Roberts which sent Parr ballistic as
it was one he claims got CAPA only for State Farm. Check them and
Body Parts of America out. Stressed to Tong Yang that CAPA must
come through. At end of meeting Ferrari and Kottschade got up and
tried to explain the market from their perspective. It was an
incredible breakthrough. I was so shocked I missed the
picture--and Mark said later that he was really afraid I would
take one!
Gillis Notes from November 1992 Taiwan Trip
page 4
Comments from Delegation: OEM vs. aftermarket diff.; potential to
really produce; good target company; heavy dependence on repair
shop at end of line, bad.
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Created: February 4, 2000
Last Updated: May 28, 2000