Gestamp Automocion S.A. Business Report FY ended Dec. 2019

Financial Overview

 (in million EUR)
  FY ended Dec. 31, 2019 FY ended Dec. 31, 2018 Rate of change (%)
Net Sales 9,065.1 8,547.6 6.1
EBITDA 1,071.7 960.5 11.6
Sales by business unit
Body-in-White and Chassis 7,449.8 6,841.8 8.9
Mechanisms 1,019.8 1,016.6 0.3


Net Sales
-The Company’s net sales in the fiscal year ended December 31, 2019 increased by 6.1% over the previous year to EUR 9,065.1 million. Regional factors contributing to the Company’s sales are as follows:

  • Western Europe: Revenue decreased by 4.6% due to a decline in the second half of the 2019 fiscal year caused by weakening market conditions.
  • Eastern Europe: Revenue increased by 16.2%, primarily driven by project ramp-ups in Turkey, Czech Republic and Slovakia. The Company’s joint venture in Bulgaria which manufactures battery boxes also contributed to the increase in sales.
  • North America: NAFTA recorded revenue growth of 19.1% in the fiscal year ended December 31, 2019. The growth was mainly driven by new projects, although project ramp-ups were taking place slower than the Company expected.
  • South America: Revenue of the Mercosur region increased by 12.0% in the fiscal year ended December 31, 2019. Sales in the region showcased increasing growth in the second half of the 2019 fiscal year.
  • Asia: Revenue in Asia increased by 12.5% in the fiscal year ended December 31, 2019. The growth was driven by the Company’s joint venture with BHAP.


Joint Venture

-The Company signed a memorandum of understanding (MOU) with the group Beijing Hainachuan Automotive Parts Co. Ltd. (BHAP) to increase cooperation in areas such as the electric vehicle. This agreement will strengthen the position of Gestamp in China to be able to give a better service to the manufacturers installed in the Asian country, both local and international. In this way, the alliance will strengthen the capabilities of Gestamp in China. Gestamp also signed an MOU today with Liuzhou Wuling Automobile Industry Co., Ltd. (WLAI). In this case, both parties intend to take advantage of their advantages and resources to cooperate in bodywork, chassis and new products within the autonomous region of Guangxi . (From a press release on April 16, 2019)

-On January 25, 2018, the Company and BHAP formed a joint venture which focuses on the development and manufacturing automotive parts and components designed to reduce the overall weight of the vehicle.


R&D Expenditure

(in million EUR)
  FY ended Dec. 31, 2019 FY ended Dec. 31, 2018 FY ended Dec. 31, 2017
Overall 529.5 445.5 361.2

R&D Structure

-The Company has a total of 13 research and development facilities and approximately 1,600 employees working on research and development activities.


R&D Activities

For the fiscal year ended December 31, 2019, The Company's R&D activities are as follows;

-For reduction of vehicle weight and CO2 emissions for Internal Combustion Engine (ICE) cars, with improving safety, the Company continued to work on the designs of new ICE models together with new EV models. The Company has more than 285 co-development programs with its clients in BiW (Body in White), Chassis and Mechanisms. 


-In 2018, the Company began development of a new hot stamping technology called multistep. Multistep enables the processing of martensitic materials with new chemical compositions as part of a larger transfer process. Multistep enables the forming of materials with traditionally unattainable geometries, thus allowing new physical characteristics. Furthermore, it enables pieces to be cut in such a way that an additional post-stamping process is unnecessary. Also, Multistep enables the manufacturing of components with zinc, thereby improving the component’s corrosion resistance. Mass production of parts through Multistep began in 2019.

BKT (Bending Kinematic Treatment)

-In 2018, the Company had begun the development of a new process, called Bending Kinematic Treatment (BKT), which could manufacture hot stamped components with smaller and more precise areas with differing hardness, compared to other processes. BKT utilizes laser heat treatment to create areas with different properties on a single part. The introduction of smaller and more precise areas with less hardness on a part enable designs that can improve crash performance, prevent localized breakage, improve assembly and reduce welding strength failures or mechanical joints in components. BKT can not only be used in current 1,500 Mpa materials, but also the next-generation 1,900 and 2,000 Mpa materials. In 2019, the Company used this technology in parts belonging to the electric platform of a Japanese constructor.

One-Piece Door Ring

-In 2019, the Company worked with eight different automakers to develop and manufacture unique one-piece door rings for their individual vehicle models.

The One-Piece Floor

-The Company is currently developing a One-Piece Floor concept, which is intended to take up less space and weigh less compared to traditional floors while still absorbing a suitable amount of energy in the event of a crash. The concept also allows the integration of different parts that are assembled together.

New components for vehicle electrification

-The Company has expanded its aluminum part development capabilities through its joint venture with ETEM. The development and application of new aluminum alloys with excellent crash performance has enabled the Company to develop battery boxes made solely from aluminum for customers in 2019. The Company has also completed multiple projects, including several for fully electric vehicle platforms that will be produced in 2020 and 2021. In 2019, mass production of an aluminum chassis for an electric vehicle began in Europe.  The Company also received orders for aluminum chassis in China during the year.


Capital Expenditure

(in million EUR)
  FY ended Dec. 31, 2019 FY ended Dec. 31, 2018 FY ended Dec. 31, 2017
Total 822.5 920.2 796.0

*including the impact of IFRS 16

-Capital expenditures were used for mainly capital expenditures in new plants (greenfields), expansion of facilities, new products/technologies for clients, investments to replace existing programs, expenditures on the maintenance of our production assets and capitalization of a part of the Group’s R&D expenses.



-Announced that it opened a new plant specializing in aluminum in Nitra (Slovakia). Gestamp invested EUR 130 million in the new factory that will supply Jaguar Land Rover, which has recently started its operations in this country.  With a staff of around 200 employees, the plant manufactures numerous panels and structural pieces mainly in aluminum. The equipment of the plant includes two tandem serpentine lines of last generation that will produce 70% of the product in aluminum. The components manufactured in Nitra seek to reduce the weight and increase the safety of the vehicles, which are two global objectives of Gestamp. The production is focused on the manufacture of components of the Discovery model, currently in series, as well as the new Defender, whose start of production is scheduled for 2019. The new plant in Slovakia joins the one that the company already has in the country and where the Group manufactures mechanisms through its subsidiary Edscha. (From a press release on June 27, 2019)

-The Company officially opened its second manufacturing plant in the state of San Luis Potosi, seventh overall in Mexico. The company invested USD 86 million (EUR 74 million) to build the nearly 300,000-square-foot facility over a 34.5-acre site located in the Colinas de San Luis industrial park. The new factory will have the latest technology in hot stamping, as well as hydroforming, becoming the company’s first operation in Mexico with this type of technology dedicated to the production of chassis parts. The new plant joins the Edscha facility, Gestamp’s subsidiary specializing in mechanisms, enabling the company to provide its full product offering in San Luis Potosi, including body-in-white, chassis and mechanisms. Besides San Luis Potosi, Gestamp Mexico’s seven production plants are also located in Puebla, Toluca, and Aguascalientes. Since beginning operations in 2001, the Mexican market is Gestamp’s sixth largest market, with revenues of USD 682 million (EUR 578 million) in 2018. (Gestamp press release on March 19, 2019) (Mexico-Now article on March 20, 2019)