SUP
#There is no funds-stated sunset on the program itself, <UNK>, so it's open.
We look at market conditions and price valuations, and how that's comparing to where we've been historically, so it's circumstantial at this point in time, as to what our intentions are, as far as volume that we will repurchase.
Certainly, the shares get issued out of compensation plans.
We want to ensure at minimum that there's no dilution that occurs for our investors as a result of that, so that will set a floor for us, on what we want to do.
But timing, I think will be circumstantial to how we see what's happening in the market.
Yes, I think for North America, it's probably in the late innings of the cycle.
I think the question is, is do we reach, or are we at a plateau level and stay at 17.5, or some level slightly above that, or slightly below that.
That's certainly our feeling here.
For Superior, I think we're in probably the third inning.
We've got a long way to go in terms of both our strategy to move towards higher value-added product, improving our relationships with our customers, and improving the efficiency of the operations of our facilities.
So I think we have a long way to go before we run out of things to do.
No, it is something that we continue to look at and evaluate both inside the wheel space here in North America and globally, and we've also had dialogue with some guys that do aluminum products for our customers outside the wheel space, so we'll continue to evaluate that as we go forward, but job one for us is to, again, to make sure that we're as competitive as we can be and successful as we can be in the aluminum wheel space here in North America.
Great thanks, <UNK>.
I think that it was basically vesting.
There were not a bunch of new stock grants that were given to people as we moved the headquarters.
That was not a factor.
You're basically looking at vesting schedules on programs that have been in place, a little bit circumstantial to <UNK>'s contract, and some loading on that.
But I think that ultimately, my hope would be clearly that the performance of the Company continues to be very, very positive, and that we'll continue to see equity grants in the future that are tied to that improving performance.
The performance base of our ---+
So two-thirds of the performance of the stock plan, the long-term incentive plan is performance based.
One is EBITDA margin.
Two is return on invested capital, and the third is total shareholder return versus the peer group, and the weights of those are 20% TSR, 40% for the other two.
We are going into a new three-year plan for that right now in 2016 to 2018.
We did switch one component based on feedback from our investors <UNK>, and we took out the EBITDA margin because we're still driving the short term on EBITDA performance.
Some of our investors felt that, that was a little bit of a duplication of factors, so we replaced that component with cumulative EPS over a three-year period, so that will be in there for the new plan going forward.
We're fully staffed.
We have about 65 people here in Southfield and ---+
Yes, I think in terms of the percentage car/trucks, it's probably 70/30, and I think if you look at the next three years, 2018 that will be declining, the light truck will be declining to probably another three or four percentage point change, so we'll move closer to the market split of light truck to pass car.
Correct.
Somewhere between 75% and 80% of that cost is peso denominated.
That's not taking into account aluminum.
So labor obviously is, we're paying our employees in Mexico in pesos, our electricity cost is denominated in pesos, most of our supplies, outside contracting costs, all that type of stuff is primarily pesos.
Natural gas is denominated in US dollars, that's the major non-metal cost that's in USD, and of course metal.
I think historically the Company had been set up for, let's say, larger production runs, and so as you move towards the higher more complex wheel, larger, more complex wheel, this is a different skill set, the facilities weren't initially set up for that.
Certainly from our standpoint, we view this as a significant change for the Company, and along with that, is going to be able ---+ we'll be able to grow our margin and conquest new business.
I think somewhat it's also reflective of just the competitive dynamics, 40%-ish of the North America market is served by imports, most of those are coming out of Asia, and most of those were coming out of <UNK>a.
So there is significant logistics costs to move those wheels over here.
On smaller diameter wheels, which tend to be for passenger cars, the logistics cost is more competitive, and you can put more smaller diameter wheels in a shipping container than a large diameter wheel.
So a natural ebb and flow of where is the market more competitive versus where is it better from a value perspective, that's also led us to gravitate towards the light truck category.
It really has not been any issue of process constraints or factory constraints at all.
If you look at our forecast, in terms of 19-inch wheels and above in 2015, that represented about 14% of our production, and as we look at 2018, that should be somewhere in the neighborhood of 25% to 28%.
So clearly, a focus, clearly it's working, clearly, we can be competitive and drive that margin through those programs.
Yes, so the move to 24/7 is part of the program to take us from essentially 11.5 million units or so million units that we were at 22, 24 months ago, up to 14 million units.
And so 24/7 is a part of that, certainly internal scrap reduction is a part of that, certainly improving the OEE of our facilities is a part of that.
The additional 500,000 units in Plant 15, our new facility, is a part of that.
So I think we'll be there in probably another year and a half in terms of that ramp-up to 14 million units, which is perfect in terms of how we plan this out with the sales function.
So even if we had 14 million units of capacity today, we don't have the orders to fill that.
So this has been time to move very methodically into this, to dovetail with the sales function.
As far as implementation and I guess you asked a question, <UNK>, cultural reaction to it all, it was a little bit of work at the beginning to try to get this running smoothly, so I wouldn't say that the day we flipped the switch in first departments to go to around-the-clock staffing that it went perfectly smooth, but we've learned from that.
And at this stage I would say things are running smoothly, where we do have 24/7 today.
So I think we particularly figured out the right way to go about it.
Fundamentally, it relates to some changes in legal structure, <UNK>, and I don't want to go into too much detail about that, to tell you the truth.
But we're moving some of the values of our legal entities around a bit, and then that's allowing us to adjust some of the overall tax rate, based on the jurisdictions that we're in.
Great thank you very much.
Great questions today and appreciate your support.
Thank you.
Thanks, everybody.
