Jan. 11, 2011
/PRNewswire/ -- MWW Automotive Group (OTC Bulletin Board:MWWC), a global automotive firm providing design and engineering services and manufacturing of accessories to many of the world's leading automotive manufacturers, issued today an annual letter to shareholders from its newly appointed CEO of the Company Chuck Pinkerton. The full text of the shareholder letter can also be reviewed on the Company's web site at
in the section "Investor Relations"; under subsection "Press Releases."
Dear Fellow Shareholders:
As the new CEO of MWW Automotive, I am pleased to present to you today a 2010 year-end review of MWWC's business and discuss some of those achievements that are positioning us for an exciting and prosperous 2011. During the last year, MWWC has met the challenges of 2010 head-on. I believe we have been able to not only solidify, but improve our position within the automotive marketplace. We have been successful in improving our financial performance by implementing dynamic structural, managerial and operational changes, during a time when many competitors have fallen victim to the largest and most drastic downturn in the automotive industry in decades.
Highlights of some of MWWC's achievements and changes in 2010 show our improving business model, including:
- We have streamlined our organizational and structural processes at our headquarters in Howell and instituted "Best-In-Class" production improvements to our ISO Certified "Class A" painting facility in Baroda, resulting in further enhancements to our product quality and increasing our production capacity.
- Jim Davis, who joined the company in early 2010, will continue in his position as the CFO; Michael Winzkowski has moved to the position of President & Chairman; and Rainer Poertner will continue to head up our Investor Relations and Investment Banking Relationships.
- In 2010, MWWC has received and submitted more Requests for Quotes (RFQs) for a wider range of projects from new customers than at any other time.
- MWWC has generated new business from newly emerging demand for smaller, but more frequent production runs, from large Original Equipment Manufacturer (OEMs) customers. Their large, automated and fully robotic production facilities cannot economically fill this trend, while MWWC is squarely positioned to do so.
- Orders and forecasts from our large global customers are increasing, and our customer base is rapidly diversifying beyond our established customers.
- Based on expanding production volume, MWWC will add a second shift in its painting facility. Accordingly, MWWC will be moving a large segment of its manufacturing and fulfillment program currently being executed in its headquarters in Howell, to its 40,000 square foot Baroda facility. This move will not only result in lower overhead and subsequently improved margins, but will also increase our production effectiveness and perfect the timing on deliverables to our clients with "just-in-time inventory."
- In order to better control our fixed and overhead costs, and focus on our core business in the United States, MWWC has decided to discontinue its German design operation.
- MWWC expects to report stronger year-over-year operational and financial results, the full details of which will be released in our annual report to be filed with the SEC on or before January 15, 2011.
Our internal growth trend beginning in 2010 is being supported by the improving general market conditions in the automotive industry. After falling to a 27-year low to 10.4 million units in 2009, U.S. light vehicle sales rose to their highest level of the year in the month of
, up 11% from
, and closing out 2010 at a total of 11.6 million units. December's seasonally adjusted annual sales rate of 12.6%, as measured by Autodata Corp., is yet another positive indicator that U.S. automotive market is steadily rebounding. Major automobile and automotive supplier stocks have seen a notable rise and analysts are slowly beginning to anticipate a sustainable upward trend and strong ROIs on automotive stocks. MWWC's stock has been trading on higher volume and tightening of the spread; our planned investor relations activities for 2011 are expected to keep up this momentum and enhance shareholder value during the New Year.
Accordingly, we see our financial strength and stock value returning and we believe that we are on track to achieve our goals for significantly improved projections for 2011 and 2012. The changing market conditions are generating excellent new opportunities for MWWC and we are now well positioned for continued growth and improved deliverables to our client partners. While concentrating on providing the very best in products, quality and service to our current client base, MWWC has also been successful in acquiring new customers and is currently in negotiations with several customers for new programs for mid- and long-term execution. We are continuing to establish additional distribution channels worldwide and have entered into new strategic alliances with several strong and well-established vendor partners.