GKN Plc Business Report FY2011
|(in million pounds)|
|FY2011||FY2010||Rate of change(%)||Factors|
|Sales by Division|
|Powder Metallurgy Division||845||759||11.3||2)|
1) Driveline Divison
-Sales of CVJ systems and non-CVJ sales grew 7% and 22%, respectively, compared with global vehicle production which increased 3%.
-Market outperformance was broad based across North America, Europe, China and Japan, reflecting recent market share gains, the Company's strong position in premium vehicles, demand for which continued to be strong, and the Division's broadening product mix, particularly with AWD systems and trans-axle solutions.
2) Powder Metallurgy Division
-Sales increased in all regions as automotive markets recovered, recent new business wins entered production and market share gains were made.
-eAxle for PSA Hybrid 4
-New European customer for 1-speed eTransmissions
-2-speed eTransmissions from European and North American vehicle manufactures
-The Company will supply drive shafts and CVJ systems to Opel/Vauxhaull's new electric drive vehicle "Ampera". The car is set to hit European showrooms at the end of this year. The sales of "Ampera" across Europe alone will reach 10,000 by 2013. (From a press release on July 14, 2011)
<Powder Metallurgy Division>
-During 2011, more than 100 million euro of new program business was awarded.
-One-way clutch system for a Mazda transmission in Asia.
-One piece combination sprocket for Volkswagen engine's variable valve timing stator.
-The Company announced that the acquisition of Getrag's Driveline Products Business (comprising Getrag Corporation based in U.S. and Getrag All Wheel Drive AB based in Sweden), announced on 28 July 2011, completed. Getrag Driveline Products will be integrated into GKN Driveline. In addition, GKN is also acquiring an exclusive licence, principally for Europe and the Americas, to Getrag's electric drivetrain technology for use in electric and hybrid vehicles. (From a press release on September 30, 2011)
-The Company announced its agreement to acquire the all-wheel-drive (AWD) components businesses of Getrag KG. The businesses being acquired, together referred to as "Getrag Driveline Products", are Getrag Corporation, a joint venture with Dana Corporation based in U.S., and Getrag All Wheel Drive AB, a joint venture with Dana Holding Corporation and Volvo Car Corporation based in Sweden. The core business of Getrag Driveline Products is the supply of Power Transfer Units (PTU) and Rear Drive Units (RDU) for AWD vehicles, along with Final Drive Units (FDU) for rear wheel drive vehicles. Getrag Driveline Products will be integrated into GKN Driveline. As part of the overall transaction, GKN is also acquiring an exclusive licence, principally for Europe and the Americas, to Getrag's electric drivetrain technology for use in electric and hybrid vehicles. The acquisition cost comprises a cash consideration of 283 million pounds. Closing of the transaction is expected during September 2011. (From a press release on July 28, 2011)
-The Company announced that it has formed a joint venture in UK with EVO Electric Ltd, a UK manufacturer of electric drive solutions for the automotive sector. The new business, GKN EVO eDrive Systems, will manufacture and sell axial flux electric motors and drive systems for use in hybrid and all-electric vehicles. GKN will also acquire 25.1% of EVO Electric. (From a press release on June 22, 2011)
Recent developments Outside UK
-The Company announced that its production capacity for CVJ (constant velocity joint) systems and AWD (all-wheel-drive) systems in China also will grow by more than 50 percent in the next four years. The company's propshafts for AWD vehicles is expected to nearly double from 400,000 in 2010 to 800,000 in 2014. The Company currently has more than 36 electric and hybrid-electric vehicle projects underway with major automakers around the world, including several programmes for manufacturers in China. In Europe, GKN Driveline hybrid technology debuts in 2011 on the Peugeot "3008 HYbrid4". In addition to the development of electric-drive axles (eAxles) for Peugeot- Citroen, the Company is developing electric-drive transmissions (eTransmissions) for several electric-car programmes scheduled for production in Asia and North America. Assembly of its eTransmissions in China is expected to begin in 2012. Over the next five years the Company will be investing 80 million Chinese yuan (approximately 8.7 million euros) to expand its research and development centre in Shanghai. (From a press release on April 18, 2011)
-The Company announced that it has been honoured by Porsche as the Supplier Award 2011 in the category "production material". (From a press release on July 25, 2011)
R&D Structure-Over the next five years the Company will be investing 80 million Chinese yuan (approximately 8.7 million euros) to expand its research and development centre in Shanghai, China. (From a press release on April 18, 2011)
Product DevelopmentCountertrack CVJs
-High efficiency and reduced fuel consumption.
-SX8 47 -standard: Target first launch in 2013.
Face spline - advanced wheel-hub interface
-Weight, backlash and assembly advantages.
-Launched on BMW "7 series" and will appear on the new BMW "5 and 6 series" all wheel drive vehicles in the end of 2011.
|Powder Metallurgy Division||44||27||10|
Investments Outside UK<Mexico>
-The Company announced that it will manufacture nine million CVJ Systems in Mexico by 2015, up from three million in 2005. The company has invested over 100 million USD (1.4 billion pesos) in its Mexican operations since 2005. During this period, GKN Driveline has expanded the manufacturing facility, opened a technical centre and built a new precision forge all in Celaya. In nearby Villagran, a new assembly facility has also opened. The Company supplies its driveline systems and solutions to 10 vehicle makers in 16 cities throughout Mexico. (From a press release on November 17, 2011)
-The Company opened a new precision forging facility at Oragadam near Chennai in India. The Company has invested nearly 48 crores Indian rupees (6.6 million pounds) in the new forging facility. The 5,000-square-metre facility will supply precision forgings to its Oragadam CVJ Systems manufacturing plant which annually produces 1.2 million sideshafts for automotive manufacturers in South India. (From a press release on November 2, 2011)
-The Company announced that it has started construction of a new manufacturing facility for CVJ Systems and Trans Axle Solutions in Pune, India. This 130 crores Indian rupees (18 million pounds) factory will employ more than 200 people and is located within 30 kilometres of a number of its customers including Fiat, Volkswagen, General Motors, Tata and Renault. When fully operational in August 2012, the new 8000 square-metre facility will have an annual production capacity of more than 600,000 CVJ Systems. The company has three factories in India: Faridabad, Dharuhera and Oragadam. (From a press release on May 26, 2011)
-The Company opened a new CVJ systems plant in Changchun.
-The Company expanded production at Wuhan.