DETROIT - The North American automotive unit of German supplier Grammer AG expects to double its annual sales within three to five years, to $200 million.
Grammer, which supplies head restraints and armrests to the luxury market, is cautious in this price-driven environment.
"We compete on quality," says Eugen Geyer, 53, senior vice president of Grammer's automotive business divisions. "We happen to get contracts for a higher price than our competition is offering, but we also lose certain business because the customer just wants to look for lower price and we say we can't make it for that price."
That strategy may work for a niche interior player now, says Betsy Meter, a partner with KPMG LLP's automotive practice, "but the reality is that cost management is everything. In the luxury market, there's a need for high-quality product. "