Financial Crisis Of 2008, Ohio Manufacturer Of Aftermarket Brake Parts
Lionell C. Henderson
MBA 614: Leadership II
Richard DeVos Graduate School of Management
Professor Tara Peters, Ph.D.
VC Brakes, at Middleton, Ohio manufacturer of aftermarket brake parts, produce calipers, rotors, drums, brake pads, and discs used in commercial and passenger cars, for customers such as Pep Boys, Advance Auto Parts, and Autozone, was acquired in 1998 by Lantana Industrial. Lantana Industries, is a supplier of automotive parts for both the aftermarket and original equipment sections of the industry, is focusing its attention on creating new business through the efforts of building stronger connections with the auto retailers and dominant auto producers. Although, the company chose not to interfere with the operations of their acquisitions, the emergence of the SUV and truck sales provided quick growth and success for VC brakes, through providing replacement parts for these vehicles.
Following the financial crisis of 2008, the company is acquired by the Crossroads Corporation. Crossroads wants to alter VC Brakes culture of finger pointing and autocratic style of management with the assistance of the Total Quality Management program. “Crossroads wanted each subsidiary to apply a consistent set of quality tools, such as quality circles and systematic supplier evaluation, to every aspect of the business” (Cespedes & Yong, 2013). Crossroads believed this was a…