Michael Cardone III is the Executive Chairman at Cardone Industries, a leading provider of new and remanufactured aftermarket auto parts and products. Cardone Industries is one of the largest private employers in the commonwealth of Pennsylvania and currently employs 5,500 employees worldwide. As a family run business, Michael is the third generation to oversee the day-to-day operation and growth of Cardone Industries. In this insightful interview, Michael provides his thoughts on what we can realistically expect from autonomous vehicles, why the incorporation of pastors in his facilities has dramatically reduced turn over, and candidly shares some challenges the company has experienced by opening up facilities in Mexico.
Key Takeaways:
[1:18] Kevin introduces his guest for this episode — Michael Cardone III.
[6:30] Michael shares a bit about Cardone Industries history and talks about his grandfather — the man who started it all.
[11:45] Michael's grandfather had to start all over at the age of 55 in 1970. What was the first 10-15 years of the Cardone business like?
[13:25] In the mid-80's, Michael Cardone Sr. was in his 30s when he began taking on more leadership responsibilities for the business.
[17:30] How has the quality of American-made car parts changed over the years?
[19:18] Looking back, what are Michael's thoughts on the dark period of the automotive industry and the types of mistakes the industry made?
[21:01] Why is there a 'chicken tax' on new pickup trucks?
[22:45] What are the differences between remanufactured parts vs. rebuilt/reused?
[25:26] How does Cardone source, build, and distribute their products?
[29:02] How does the tagging process work for their units and do they track where that part might go?
[33:25] What happens to the dead or broken car part after it gets replaced?
[36:25] Michael explains how they account for old inventory from previous car models vs. brand new inventory for cars coming out this year.
[38:55] How has competition changed over the last 40 years?
[40:14] What does innovation look like at Cardone?
[45:35] With facilities all over the world, what kind of challenges does Cardone face on an international level?
[51:58] Logistically, it doesn't make sense to establish facilities in China.
[52:56] Michael shares the challenges the company has faced with trade agreements between the U.S. and Mexico.
[55:40] Their union in Mexico had a strike in February against the government. The strike was deemed illegal, but it still interrupted business for about a week.
[58:34] Michael shares his thoughts on autonomous cars and how they might impact the industry.
[1:06:51] How has the company grown to 5,500 employees while still maintaining its culture and values?
[1:13:55] Has Michael seen a big disruption in their workforce due to the evolving changes the company has undergone throughout the decades?
[1:15:44] Who has been Michael's biggest influences throughout his career?
[1:19:00] How has Philadelphia been as a business climate?
[1:21:04] Are entrepreneurs born or made?
Links:
Thunderbird School of Global Management
Automotive Hall of Fame - Michael Cardone, Sr.
Roto Master.com
