Update From MWW Automotive Chairman
Those who are familiar with MWW and its history know that we were well positioned to move on to the next level of our development, when the automotive and subsequently the financial crisis hit us all. Many companies far larger than MWW did not survive the turmoil. MWW, thanks to a dedicated core team, weathered the storm and continued, often times at the expense of and based on the sacrifices made by key staff and the core management team. I am also using this opportunity to publically express my sincere appreciation to them.
In the years following these difficult times, we reacted quickly and began working on the recovery by implementing a variety of significant changes and improvements. We adjusted our business model, reviewed and modified our client roster and established greater diversification inn order to reduce dependency based on client concentration to the Toyota brand, our major customer at the time. We hired a new top management team and were successful in acquiring a new CEO, Mr. Chuck Pinkerton. The recovery of the automotive industry will complement our team's efforts.
Mr. Pinkerton is a seasoned automotive veteran and experienced turn-around specialist and as the writing of this letter, has already accomplished implementing many of the goals and objectives we had laid out together in our recovery plan. This also meant changes in business focus and client targets, resulting in a shift towards the role of a service provider and logistics executer, not only in the automotive industry, but also the industrial market segment. We expanded our 40,000 square foot Baroda "Class A" painting facility with new production lines and an expansive logistics area and implemented many manufacturing improvements to increase productivity. At the same time we implemented aggressive cost-down exercises to make the organization more lean and agile. This allowed our CEO to utilize his long standing relationships to bring a large number of new clients to the table and expand the company's reach from a focus in the automotive industry to the industrial markets to further improve diversification and risk distribution.
Thanks to the exceptional work of our financial consultant (and large shareholder), Mr. Rainer Poertner, a seasoned professional in the public sector, who has been working with us from day One, we were also able to build momentum in the stock market. With the tremendous help of several New York and California funds and the many investors who bought our stock, we were able to fund our recovery efforts and the cost of new production start-ups and continue to grow towards a once again, stable future. While this has resulted in some temporary pressure on cash flow and the stock price, we are confident that we will be able to overcome this hurdle also, once we can demonstrate our improved performance.The restructuring process was painful, time consuming as most difficult recoveries are, and is not quite completed yet. While we have succeeded on many fronts already and have newly acquired a number of well-established and strong clients, we have also been plagued with the typical delays that come along with new relationships and new production start-ups. This is especially applicable when it comes to new and very large industrial parts that were still in their final engineering and prototype stages when they had been awarded to us. Other new clients have already begun production with us and are beginning to steadily increase our production volume. This volume should further increase in the coming weeks and months.
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