Norfolk Southern Corporation 1999 Annual Report
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Serving the Automotive Industry:
Meeting the Challenges of Growth

The automotive industry broke all production records in 1999. That meant bigger opportunities for NS, the largest carrier of parts and finished vehicles in North America.

But NS also faced big challenges handling surging vehicle traffic at the same time it began operating over its new Northern Region.

Although shipments of finished vehicles were affected, the greatest demands came on the parts side of the automotive business. A steady supply of rail equipment and reliable delivery of parts to assembly plants is required to support vehicle manufacturing.

In early June, the NS automotive group participated side-by-side with customers in command centers set up at the domestic auto manufacturers' Detroit headquarters. Coordinating with the NS National Customer Service Center and the Car Distribution and Utilization department in Atlanta, plus field Transportation people, they worked on the operating plan to keep auto manufacturing production going.

"We responded quickly and comprehensively," says David Julian, NS director Automotive Markets Management Team. "It was a challenging and demanding time for our customers."

Richard Kiley, NS national account manager - General Motors, said, "We are dedicated to problem resolution, and we do all that we can to do just that."

Scott McGregor, NS national account manager - Ford, notes that when it comes to customer needs, NS' goal is "to do everything we safely can do."

"We have had extraordinary cooperation from our customers," says McGregor. "They have been willing to do what it takes to help us make it all come together."

Strengthening relationships with automobile and parts manufacturers is now a focus of the Automotive Markets Management Team. "As the manufacturers see our continued improvements, we expect to see additional freight on our rails," Kiley says.

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