Building American Trailers in Mexico

April 1, 2000
An Indiana trailer manufacturer is not as appropriately named as it used to be now that it has begun manufacturing steel dump trailers in a Fruehauf plant

An Indiana trailer manufacturer is not as appropriately named as it used to be now that it has begun manufacturing steel dump trailers in a Fruehauf plant in Mexico City.

American Trailer Inc of Rockport, Indiana, has begun manufacturing steel dump trailers within the Fruehauf de Mexico plant. The company is sharing manufacturing space in the plant and then shipping completed trailers for sale to the United States and Europe.

The move creates additional space in the company's Indiana facility to manufacture its line of aluminum trailers.

"Fruehauf continues to produce its product line for sale in Mexico," says Jimmy Wink, general manager and sales coordinator for American Trailer Inc. "We occupy a portion of the plant where we manufacture American Trailer products."

American also is using the facility to develop prototype trailers for sale in Mexico.

"To sell successfully in Mexico, we will have to reinforce our designs because of the quality of the roads," Wink says. "It's not a weight issue. We have customers in Europe who are using our trailers to haul 35-ton payloads. But carrying the same payload in Mexico would put a whole lot more stress on a trailer."

The company is planning to produce dump bodies and trailers for sale in Mexico. "We see several different markets we can develop in Mexico," Wink says. "For example, opportunities are coming for selling aluminum trailers. The government will continue to install scales to enforce weight laws. As it does, aluminum trailers will become increasingly advantageous."

Wink believes Mexico also is ready for a lightweight van trailer for operations that cube out before reaching gross weight limits and a half-round dump trailer that combines steel and aluminum.

American Goes International International sales have been important to American Trailer recently. The company opened American Trailer Europa Gmbh in Heidelburg last year. The European operation covers Germany, Switzerland, Spain, and France, selling trailers throughout the area and dump bodies in Switzerland.

American Trailer decided to have a presence in Europe following the interest generated at the 1998 IAA International Commercial Vehicle Show in Hanover, Germany.

"We exported a trailer to Europe that had been in use for about six months and was well received," Wink says. "We believed we had a product that could be successful in Europe."

Wink credits an all-terrain air-ride (ATAR) suspension for helping the company's frameless dump trailer design gain acceptance in Europe.

"We call it all-terrain because it can dump offroad and still keep all wheels on the ground," Wink says. "The key is a pivot point ahead of the rear axle that keeps the wheels steady during the dumping cycle. The idea of not always keeping all wheels on the ground is what made Europeans reluctant to buy frameless dump trailers."

Vehicle certification is significantly different in Europe than it is in the US. For example, to sell American trailers in Germany, the German government-not the trailer manufacturer-must certify the product.

"Components must be approved by the European Economic Community," Wink says. "We had to send an upper coupler to the German government to test. It was approved, and then we sent an entire trailer. The process went smoothly. We didn't have to make any modifications to the basic design. All we had to do was relocate some lights and mudflaps."

Having a European partner also helped. "Our partner in our European operation has been in the trucking business," Wink says. "He was familiar with the requirements and helped us get our certification."

What They Make American Trailer specializes in dump trailers. The Indiana operation started by manufacturing a round aluminum frameless dump. The trailers are offered in lengths of 24' to 40' and side heights of 48" to 72".

The American Trailer steel design runs sheets longitudinally, enabling the company to offer thicker floors and thinner sides. "This helps us to put more material where the strength needs to be," Wink says.

Standard specs call for .190" sides and quarter-inch floors. The rear 10' of the floor is half-inch thick-the result of adding another quarter-inch sheet outside the trailer above the suspension.

The basic American trailer is designed for weight savings. The company offers additional weight reduction of its steel trailers with its lightweight package (LWT). The package includes aluminum draft arms, tailgate, suspension subframe, wheels, hubs, and drums. The package trims tare weight by 1,600 to 1,700 pounds.

"It is a body of steel with almost everything else made of aluminum," Wink says. "This makes the most of the properties of the two metals. The steel body absorbs the impact and resists wear, and the aluminum reduces the weight."

Corporate Structure Wink, who had been involved in the trucking business since 1980, decided to begin building his own line of dump trailers. The company operated as American Trailer Manufacturer Inc from its start in 1995 until last year. In October 1999, FDM purchased the assets of American Trailer and renamed the Rockport company American Trailer Inc.

FDM, based in Corona Del Mar, California, has been renamed American Trailer Industries Inc. The company owns Fruehauf de Mexico as well as American Trailer Inc. Chris Street, chief executive officer of American Trailer Industries, is a former director of Fruehauf Corporation prior to its acquisition by Wabash National Corporation. American Trailer Industries management also includes Worth Fredrick, chief operating officer, and Kevin Carnahan, chief financial officer.

The move to Mexico should help the company serve the North American market. Wink is particularly optimistic about Mexico, where he sees major changes coming.

"It would be foolish to think that the Mexican market will not be changing," he says. "Too many US companies are coming into the country and sharing ideas with the people. We plan to be part of that."