Spartan Motors, a specialty vehicle manufacturer for the commercial, retail, recreational and emergency response vehicles, today announced the launch of Detroit Truck Manufacturing as a captive channel supplier of fabricated aluminum cabs for its cab and chassis products. The deal is expected to enable Spartan to achieve greater flexibility by insulating the risk in its broader supply base and optimizing its cost structure and quality controls.
“In addition to producing cabs designed for final stage manufacturing, this initiative further protects Spartan from potential supplier disruptions in our changing economic climate,” President and CEO Daryl Adams said. “While we plan to further expand our supply base across the organization as part of our long-term strategic growth and financial initiatives, creating a captive channel cab manufacturer provides Spartan greater flexibility and an optimized cost structure to fuel additional, profitable growth.”
Detroit Truck Manufacturing gives Spartan a growth opportunity because it’s close to the Detroit area, strategic customers and highly-skilled automotive workers. The deal fits with Spartan’s strategy for efficiencies and savings, along with reduced material costs and freight savings.
The new five-acre site in Madison Heights, Mich., is expected to help Spartan improve quality while reducing lead times by using world-class, flexible manufacturing technologies. As the company continues to grow by reinforcing its commitment to U.S. manufacturing, Detroit Truck Manufacturing provides a pipeline to experienced workers in fabrication, welding, quality assurance and manufacturing.