Nexteer Automotive Group Ltd. Business Report FY ended Dec. 2019

Financial Overview 

(in million USD)
  FY ended Dec. 31, 2019 FY ended Dec. 31, 2018 Rate of 
change (%)
Net Sales 3,575.7 3,912.2 (8.6) 1)
Net Profit 234.7 384.3 (38.9) 2)

1) Net Sales
-The Company’s net sales for the fiscal year ended December 31, 2019 was USD 3,575.7 million, a decrease of 8.6% from the previous year. Decreased light vehicle production negatively impacted all three of the Company’s geographic segments. Other contributing factors included negative foreign currency translation effects and the GM employee strike. Sales in North America declined by 6.7%, while the Asia Pacific region declined by 17.8% and the EMEA and South America region decreased by 4.2%.

2) Net Profit
-In the fiscal year ended December 31, 2019, the Company’s net profit decreased by 38.9% to USD 234.7 million. The decrease in profit was due to decreased vehicle production, unfavorable foreign currency translation effects, unfavorable volume and mix and increased tax expenses.

Joint Ventures

-The Company announced that the Dongfeng Nexteer Steering Systems (Wuhan) Co., Ltd., joint venture with Dongfeng Motor Parts and Components Group will start mass production of Single Pinion Assist Electric Power Steering (SPEPS) systems. The new joint venture increases the Company’s manufacturing footprint to 28 locations globally. The SPEPS systems are currently featured in A to C segment vehicles for customers including BMW and PSA. The Company’s EPS hardware and software are developed concurrently and work together to connect the driver with the road - taking into account driving dynamics and the operating environment. The Company’s EPS systems also enable ADAS features, such as lane keeping, park assist, active return to center, traffic jam assist and more. (From a press release on August 20, 2019)

Recent Developments

-In June 2019, the Company relocated a production facility in Liuzhou to a new, Company-owned facility in the city. The new facility manufactures column-assist EPS systems and related technologies for the Asia Pacific markets.


-In 2019, the Company successfully launched 45 major customer programs: 13 in North America, 4 in the EMEA and South America region, and 28 in the Asia-Pacific region.
North America

  • Chevrolet Silverado HD, GMC Sierra HD: Integral gears, Steering pumps, Intermediate shafts, Halfshafts
  • Cadillac CT5: Steering columns
  • Cadillac XT6: Halfshafts, Rack-assist EPS
  • Ford Explorer: Steering columns, Halfshafts
  • Lincoln Aviator: Steering columns, Halfshafts
  • Ford F-53, Ford F-59: Steering columns
  • Karma Revero, Revero GT, Revero GTS: Steering columns 

EMEA and South America

  • DS3 Crossback: Single pinion-assist EPS
  • Opel Corsa: Single pinion-assist EPS
  • Peugeot 2008: Single pinion-assist EPS
  • Peugeot 208: Single pinion-assist EPS


  • BYD E2: Column-assist EPS
  • BYD E3: Column-assist EPS
  • BYD Yuan: Column-assist EPS
  • Ossan X7: Column-assist EPS, Halfshafts
  • Changan Cs35 Plus: Halfshafts
  • Chery Arrizo GX: Column-assist EPS
  • Exeed LX: Halfshafts
  • Exeed VX: Halfshafts
  • Guangzhou Auto Aion S: Column-assist EPS
  • Cadillac XT6: Halfshafts, Rack-assist EPS
  • Buick Encore: Column-assist EPS, Halfshafts
  • Chevrolet Trax: Column-assist EPS, Halfshafts
  • Mahindra XUV300: Halfshafts
  • Peugeot 208: Single pinion-assist EPS
  • Nissan DAYZ: Halfshafts
  • Mitsubishi eK Wagon: Halfshafts
  • Renault Triber: Column-assist EPS, Halfshafts
  • eGT K-Ze: Column-assist EPS
  • MG Hector: Column-assist EPS
  • Baojun RS-3: Column-assist EPS
  • Maruti Suzuki S-Presso: Halfshafts
  • Tata Harrier: Halfshafts, HPS steering pumps


-The Company won the following awards in 2019:

  • GM Supplier of the Year
  • Ford Silver Level Manufacturing Awards for Nexteer Suzhou
  • Shanghai-GM-Wuling Excellent Responding Award and International Pioneer Award for Nexteer Asia Pacific
  • Groupe PSA Platinum Supplier Status Certificate of Excellence for Nexteer Poland
  • GM Supplier Quality Excellence Award for plant in Saginaw, Michigan, U.S.
  • thyssenkrupp Delivery Quality Award for Nexteer Poland

R&D Expenditure 

(in million USD)
  FY ended Dec. 31, 2019 FY ended Dec. 31, 2018 FY ended Dec. 31, 2017
Overall 296.3 272.0 249.3
Expenditure as % of revenue 8.9% 7.0% 6.4%


R&D Facilities

-As of December 31, 2019, the Company has one global technical center, two regional technical centers, and one software service center.

-In 2019, the Company expanded its technical center in Tychy, Poland by adding an electrical validation laboratory. Other facilities at the Tychy center include a prototype center, mechanical validation laboratory, NVH validation, a garage and a test track. The center has hired 200 engineers across a variety of fields.

-The Company has opened its new software center in Bengaluru, India as part of its strategy to capitalize on growing demand for its software-enabled functionality in advanced steering applications. It expands the Company’s software development by focusing on downstream software production and validation, ensuring quality and regulation compliance. Meanwhile, the Company’s Global Technical Center in the U.S., in tandem with regional centers in Poland and China, will continue upstream software development and research and development. Currently, the ISC employs almost 100 software engineers with plans to grow to 200 employees by the end of 2019. These engineers work on all aspects of software and calibration projects, from architecture development through delivery. (From a press release on January 30, 2019)

Capital Expenditure 

(in million USD)
  FY ended Dec. 31, 2019 FY ended Dec. 31, 2018 FY ended Dec. 31, 2017
Overall 368.3 303.7 357.4

Investments in U.S.

-In 2019, the Company started the process of transforming its driveline operations in Saginaw, Michigan, U.S. to improve its efficiency and cost competitiveness. The investment into the facilities includes new assets, technology upgrades, increased reliance on the Company’s strategic supply base, and enhanced process standards and disciplines. The transformation process is expected to create further consistency between Saginaw and the rest of the Company’s regional driveline operations.

Investments outside U.S.

-The Company opened its first African plant in Kenitra, Morocco. This new facility will manufacture Electric Power Steering (EPS) and driveline systems. The Company expects to hire approximately 500 people by 2020. Construction on the 107,000-square-foot Kenitra facility began in the first quarter of 2018 and completed in nine months. Production will start in September of 2019. The systems produced at the Kenitra plant will include single pinion EPS systems, currently featured in A-C segment vehicles for customers such as BMW and the PSA Group. The Driveline systems that will be produced at this plant will include halfshafts for new generations of bestselling models from FCA, PSA Group and the Renault-Nissan-Mitsubishi alliance. (From a press release on June 26, 2019)

-The Company announced the grand opening of a new production facility in Chennai, India. The Company anticipates that the new plant will provide 150 jobs in Chennai by the end of 2019. Covering an area of 8,336 square meters, the plant will manufacture Electric Power Steering (EPS) and driveline products to India. The Company’s EPS systems enhance driver comfort, control and feel-of-the-road, while also enabling ADAS features, such as lane keeping, park assist, lane departure warning, traffic jam assist and more. EPS systems also offer automakers increased fuel efficiency and reduced emissions. (From a press release on January 30, 2019)