According to the company, DTM will enable Spartan to achieve greater flexibility through further insulating the organization from risk in its broader supply base, optimizing its cost structure and quality control efforts.
“I am very pleased to announce the launch of Detroit Truck Manufacturing. In addition to producing cabs designed for final stage manufacturing, this initiative further protects Spartan from potential supplier disruptions in our changing economic climate,” says Daryl Adams, president and CEO, Spartan Motors. “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.”
Spartan Motors says DTM represents an organic growth opportunity for Spartan Motors through its proximity to the Detroit area, strategic customers, highly skilled automotive talent pool, and improved quality of product validation. This initiative will further Spartan’s vertical integration strategy for efficiencies and savings, along with reduced material costs and freight savings that will be leveraged across the enterprise, the company says.
Residing on five acres in Madison Heights, Mich., Spartan says the DTM facility will improve quality while reducing lead times by utilizing world-class flexible manufacturing technologies. As Spartan Motors continues to grow and expand by reinforcing its commitment to U.S. manufacturing, DTM also provides a pipeline to highly skilled talent with unique competencies in the areas of fabrication, welding, quality assurance, and manufacturing optimization.
