TRAVERSE CITY, MI – AM General’s Kevin Rahrig has advice for those launching startups. “If you lack expertise, that’s how billionaires can become millionaires,” he says at the Center for Automotive Research’s Management Briefing Seminars here.
Rahrig is executive vice president-commercial of AM General, best known as a primary manufacturer of military vehicles such as the Humvee. It is working with the U.S. Army on autonomous Humvees and cargo trucks.
Startups may be all the rage, but Rahrig says they can avoid failure if they do their homework. “They should look at things like successful companies, government regulations and costs, then possibly take their ideas and find a suitable partner,” he says.
Based in South Bend, IN, AM General builds 300,000 vehicles yearly and has operations in 60 countries. It also builds vehicles for the civilian and non-military government markets. Among them is the Mercedes Benz R-Class luxury CUVs now sold only in China, which frees up capacity at Mercedes’ Vance, AL, assembly plant for other purposes.
AM General is one of five companies competing for a $4.5 billion U.S. Postal Service contract to replace its aging fleet of mail delivery vehicles. The program calls for 180,000 vehicles built to last 20 years and capable of hauling a minimum of 1,500 lbs. (680 kg).
“The Postal Service is targeting better fuel economy, lower maintenance cost and design flexibility to accommodate future technology,” he tells WardsAuto. “Prototypes are being developed, followed by testing over six to nine months. We’re looking for production to start in late 2019 or early in 2020.”
