Tower International, Inc. Business Report FY ended Dec. 2016

Financial Overview

(in million USD)
FY ended Dec. 31, 2016 FY ended Dec. 31, 2015 Rate of change (%) Factors
Net Sales 1,913.6 1,796.1 6.5 1)
Operating Income 101.0 85.4 18.3 -

1) Net Sales
-The Company’s sales during the fiscal year ended December 31, 2016 increased by 6.5% over the previous year to USD 1,913.6 million. The increase in sales was due to higher sales volumes in the Company’s operations in North America and Europe. These gains were partially offset by unfavorable pricing and negative foreign currency exchange effects.


-On January 11, the Company announced the results of its divestitures that it completed during the fourth quarter of 2015. The Company received cash proceeds of USD 48 million for the sale of two of its joint ventures in China. In addition, the Company sold one of its two operations in Brazil during the fourth quarter of 2015, and received cash proceeds of USD 9 million. (From a press release on January 11, 2016)


OEM Model Product Group
North America
Ford Econoline Frame Assembly
Explorer Complex Assembly
Expedition/Lincoln Navigator Body Structures
F-Series Frame Assembly & Body Structures
Focus Body Structures
Taurus/Lincoln MKS Complex Assembly
Escape Body Structures & Complex Assembly
Chrysler Dodge Grand Caravan/Town & Country Body Structures
Jeep Grand Cherokee/Dodge Durango Body Structures
Jeep Wrangler Frame Assembly
Jeep Cherokee Body Structures
Ram Pickup Body Structures
Nissan Frontier/Xterra Body Structures & Frame Assembly
NV Series Frame Assembly
Titan/Armada Frame Assembly
Altima Body Structures
Toyota Camry Body Structures
Corolla Body Structures
Tacoma Body Structures
Tundra Body Structures
Honda Accord Body Structures
Volvo V40/S60/XC60 Complex Assembly
VW Touareg/Q7 Body Structures & Complex Assembly
Caddy Van Body Structures
Citigo/Mii/Up! Body Structures
Octavia Body Structures
Superb Body Structures
Fabia Body Structures
Porsche Macan Body Structures
Cayenne Body Structures & Complex Assembly
BMW 1 Series/3 Series Body Structures
Daimler Sprinter/Crafter Body Structures & Complex Assembly
Fiat 500 Body Structures
500X Body Structures
Ducato Body Structures
Giuletta Body Structures
Punto Body Structures
Renegade Body Structures
Opel Astra Body Structures

R&D Facilities

-The Company has a total of seven technical centers located in the following countries: U.S., Brazil, Germany, Italy, China, India, and Japan.

Capital Expenditure

(in million USD)
FY ended Dec. 31, 2016 FY ended Dec. 31, 2015 FY ended Dec. 31, 2014
Overall 116.3 119.7 98.4

-The decrease in capital expenditure in the fiscal year ended December 31, 2016 compared to the previous year was primarily due to the timing of customer program launches.

The Company expects to invest approximately USD 130 million for capital expenditures in the fiscal year ending December 31, 2017.

Investments in U.S.

-The Company announced on July 12 that it is establishing its first operations in South Carolina in Greenville County. The Company is investing USD 75 million in the new facility, located at 139 Southchase Blvd. in Fountain Inn. The facility will manufacture large complex assemblies for a leading OEM, with the first assembly program scheduled for September 2017. Greenville County was awarded a USD 100,000 grant to assist with the costs of building upgrades and renovations for the new facility. (South Carolina Department of Commerce release from July 12, 2016)