Honeywell Canada Confirms Reorganization, Bendix Goes Own Way

Honeywell Canada is reorganizing its business in Canada, combining its Prestone, Fram and Autolite businesses and leaving Bendix customers to buy from the U.S.
Effective at year end, Honeywell Friction Materials, supplier of the Bendix product in Canada, will cease operations as a Canadian business entity, and provide its Canadian customers with a U.S.-based international program.
"We understand that this new business model is a change for our Canada-based customers. It is currently being used in several countries around the world and has proven to be quite successful," said Tim Jones, general manager, Aftermarket, Honeywell Friction Materials.
Orders on the existing Canadian friction program will be accepted through the close of business on December 14, 2001, and shipments will continue on a "ship or cancel" basis through the close of business December 21, 2001.
The international program being made available to Canadian distributor customers has them deal directly with the U.S. offices of Honeywell Friction Materials. Customers will be classified as U.S. customers, point of purchase will be the U.S., product will be shipped from the U.S., and invoicing will be in U.S. dollars.
Technical support for Bendix product has been handled out of the U.S. for some time, and this will not change.
Wayne McLean, vice-president, sales, Honeywell Friction Materials, Canada says that sales support for Canadian customers will continue through to the end of January, with some staff remaining in Canada through the first quarter to help with the transition.
"We appreciate the business we’ve received in the past years from our customers and hope that they will inquire about our international program as we are still very eager to work with them," said McLean. "We will do anything we can to make this transition as easy and hassle-free as possible."
Honeywell has also announced that the Fram, Autolite and Prestone businesses have been combined into the Consumer Product Group (CPG), with consolidated warehousing, shipping and invoicing functions.
It was also announced that administrative offices–including sales, marketing and customer service–would be shifting to Mississauga, Ont. from Stratford, Ont., in mid-December, though the Stratford filter plant would continue to operate as normal.
"We are working hard to reposition ourselves to better meet our customers’ needs in 2002 and beyond, and that has required a significant investment in the Canadian business," says Honeywell CPG president Dave Lundstedt.
"Starting in January 2002, our customers will be able to place one order, receive one shipment and get one invoice for all three brands," says Gordon Robertson, managing director of CPG Canada’s aftermarket business. "This will mean improved line fill rates, consistent order fulfillment cycle time, faster introduction of new models to the Canadian market and the simultaneous launch of new products across North America."
The moves follow the cancelled acquisition of the Bendix business by an investment group earlier this year in place of an expected acquisition by General Electric of Honeywell in its entirety. That deal fell apart when it failed to win the approval of European regulators and was officially cancelled this fall.