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American LaFrance reshuffles management deck
By Dan McCue
Staff Writer
American LaFrance LLC has reshuffled its management and hired a new president and CEO as it continues efforts to emerge from Chapter 11 bankruptcy protection and resume full production of emergency vehicles at its Berkeley County plant.
A. Matthew Karmel, who has more than 25 years of manufacturing experience, including a stint at heavy-engine manufacturer Detroit Diesel Corp., has been named president and CEO.
He replaces Bill Hinz, who will continue to serve as chairman of American LaFrance’s board of directors.
According to company spokesman Michael Gordon, Karmel’s experience includes several successful company turnarounds, both domestic and international.
He’s expected to be making additions to his staff to complete his team over the next few months.
In a separate announcement released under Hinz’s name, the company also said it is in the process of rehiring assembly plant workers who were laid off last December. Although the company did not disclose how many workers would be returning, the statement said, “We are in the process of bringing back our shop work force and returning staffing to our pre-petition levels.”
“The gradual ramp-up of our direct labor force signals clearly that we are successfully working through supplier parts challenges,” Hinz wrote to employees and investors.
“We still face obstacles as (they) relate to the supplier base but we are now able to make timely payments with our improved accounts payable system to keep component parts flowing.”
According to the written statement, the company has also taken several steps to improve its parts distribution center. Hinz said the company has ended its relationship with a third party that had been overseeing that part of American LaFrance’s supply chain and has integrated its replacement parts inventory into its Summerville facility.
“This centralized location will better allow us to manage the inventory and will reduce the lead time for fabricated replacement parts,” Hinz said.
Hinz also sought to clarify the current status of American LaFrance’s warranty reimbursements to its dealers.
“We are authorized by the courts, based on the warranty department’s approval, to pay 100% of the claims both pre-petition and post-petition,” he said. “While we have not been as responsive to payment as I would like, it is based strictly on our system deficiency that we are working vigorously to improve.”
Hinz also announced that executives in the finance and engineering units of American LaFrance have been let go as part of an effort to align the company’s leadership team to
“common goals.”
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