Share content on LinkedIn Share content on YouTube

Corner Office Café—Pat D’Eramo

September 26, 2025
0
Comments

This segment of Corner Office Café features my conversation with Pat D’Eramo, CEO at Martinrea Intl. D’Eramo has extensive metal forming and product-manufacturing experience, having throughout his career provided global leadership in manufacturing, engineering, purchasing, logistics, sales and business development, as well as vehicle-manufacturing operations.

Meet Martinrea CEO Pat D’Eramo at PMA’s Auto Parts Supplier Conference, to be held Oct. 28-29 in Nashville. D’Eramo will offer insights and share experiences in the PMA Member Panel Discussion from a Tier’s Perspective on Current Automotive Issues session. Register here

Before you became CEO at Martinrea, you held leadership positions at Dana, Toyota, Nummi and GM. Which credos and management principles did you take with you?

I’ve been fortunate to work for some great companies and leaders, and I’ve picked up something valuable from each stop along the way. I started my career at Saturn, which had a very different culture, one where people were truly involved in decisions and that shaped a lot of how I think about leadership.

From there, my time at Nummi and Toyota had the biggest impact. Toyota’s Production System and its philosophy around continuous improvement, teamwork and respect for people resonated with me and still guide how I lead today.

At Martinrea, we have 10 principles that define who we are, and our core principle is “treat people with dignity and respect.” We’ve made tough decisions, even parting ways with leaders who delivered strong financial results but didn’t live up to that principle.

I believe people are at their best when they feel supported and respected. Our role as leaders is to create an environment where they can succeed and help them find the right fit. Sometimes that means moving someone into a different role, and when we do that thoughtfully, we’ve seen people thrive.

I also believe in handling challenges privately and respectfully. If someone’s struggling, that conversation happens one-on-one, never in front of others. I give a lot of credit to my staff and our leaders across Martinrea. They take care of their people, and that makes all the difference.

Since you became CEO in 2014, Martinrea has grown from a $3.23 billion company to an over $5 billion company. To what do you attribute this success?

Our success comes down to focus, discipline and the incredible people we have at Martinrea. From day one, we knew we had to strengthen our launch capability, because in our industry, that’s one of the toughest things to get right. We invested a lot of time and energy into improving launches, along with productivity, quality and all the things our OEM customers expect from a world-class supplier.

Just before the pandemic, we secured a tremendous amount of new business—so much so that we had to build new plants and expand existing ones. Then the world shut down, and we had to launch all of that in the middle of COVID. 

On top of that, literally a week before COVID shut the world down, we acquired Metalsa’s six body-in-white plants, and had to integrate those facilities while navigating global travel restrictions and supply-chain chaos. 

We’ve built a culture where we focus on plant efficiency, productivity and operational discipline, and we hold ourselves accountable. 

What changes that you affected are you most proud of?

When I joined Martinrea, we were very decentralized. Each plant operated almost like its own business. That gave some flexibility, but it also meant we weren’t sharing best practices across the organization. One of the first things we did was create business units and establish a “read-across” where we started sharing what we do well, moving best practices quickly and effectively across the organization. 

We also made a major commitment to lean manufacturing—my experience at Toyota taught me what it really means. I brought in people I had worked with at Toyota who understood the necessary discipline, tools and mindset. It’s been great to see how quickly our Martinrea team embraced lean thinking and began using the tools the way Toyota intended, helping us to in win more business and strengthening our competitive position.

We’ve done a lot of little things that have made a difference—implementing more structured HR processes, for example, including robust succession planning and career progression. Our goal is for 80% of promotions to come from within, and we have a lot of success stories that show this works.

Which resources—books, mentors, etc.—have you incorporated into your leadership?

I’ve been fortunate to have some incredible mentors. My first boss at Saturn probably had the biggest impact. I came in right out of school, and for whatever reason he took me under his wing. He didn’t just tell me how to treat people; he showed me through his actions. There were others along the way, too. Another leader I worked for at Saturn actually is on our board of directors at Martinrea. And I had great leaders at Toyota as well—many of whom I’m still connected with. 

When it comes to books, I’m drawn to those that combine operational excellence with human motivation. The Goal is a classic from the ’80s that still applies today. Smarter, Faster, Better is a great read on productivity and decision-making. Big Potential by Shawn Achor speaks to collective success, not just individual wins. Drive by Daniel Pink has a unique perspective on what truly motivates people beyond the bottom line.

What concerns you as a manufacturing leader? What are some of the greatest challenges you face and how do you work to resolve them?

This is a tough, competitive industry. It’s high-tech, high-volume and everything we deliver has to be zero-defect. That’s always challenging, but the past several years have tested us in ways no one anticipated.

When we came back from the pandemic, we had a strong start, but then the semiconductor shortage hit. Then, in my view, government policies around pandemic relief made it harder to find people to work, which added to inflationary pressures and drove up material costs. Then came the industry’s investment in electric vehicles, placing huge capital demands on OEMs and suppliers. And just as we started to regain momentum, we’ve faced ongoing tariffs and trade-related pressures.

All of this has created significant headwinds for the entire automotive supply chain. That means keeping people motivated and focused is more important than ever. It takes constant communication and engagement.

We’ve addressed that by increasing transparency and alignment. Every couple of years we hold leadership conferences to share our vision, strategy and priorities. We’ve also implemented an annual business-planning process tied directly to our strategy, where every function and business unit is accountable for progress. If someone’s behind, we ask why and work together on solutions.

It’s not easy, but we’ve built a resilient culture. Our people are motivated, disciplined and capable.


What plans do you have for Martinrea’s future?

One exciting area is our internally developed practical AI—machine learning (ML) designed specifically for manufacturing. One of our plants led the charge with a pilot project, using ML to improve equipment performance, predict maintenance needs and optimize quality. That plant alone has saved nearly $3 million so far. Now, that team is helping us scale this technology across our organization. This isn’t about large language models; it’s about making our machines smarter and able to run more efficiently and improving quality while solving problems before they happen.

We’re also continuing to deepen our lean journey. Some of our plants now use advanced lean tools, setting a new standard for us and the industry.

Because our HQ is in Cleveland … who is your favorite Rock & Roll Hall of Famer?

I have a favorite band that I’ve always liked since way back in high school—The Electric Light Orchestra. I saw ELO in concert in 2018 for the first time; the band hadn’t come to the United States for something like 30 yr. It was fantastic. So, I’m still a fan and still listen to ELO today. 

Industry-Related Terms: Core, Corner, Forming, Run, Scale, Forming, Forming
View Glossary of Metalforming Terms

 

See also: Martinrea International

Technologies: Management

Comments

Must be logged in to post a comment.
There are no comments posted.

Subscribe to the Newsletter

Start receiving newsletters.