Wagon Plc Business Report FY2006 (FY ended Mar. 2007)
Business Highlights
Acquistion of Oxford Automtoive
and Restructuring
-The Company acquired Oxford Automotive, a leading European automotive supplier of large stampings, Body-in-White Assemblies and hinges and mechanisms in April 2006. T
-The Company has run three major reorganization programs in association with the acquisition of Oxford.
1. The Operational Centre integration, completed in December 2006, involved the closure of the Company's former headquarters in Poissy, France and the transfer of its activities to Oxford Automotive's base near Paris.
2. The Disposal of five low-tonnage stamping plants, also completed in December 2006. They operated in a market segment non-core to the Company's new positioning and performed poorly during the first half.
3. The plant restructuring programmes, now well into their final stages, include the co-location of common production technologies and associated plant closures, productivity improvements and the rebalancing of its manufacturing footprint. As part of this process, all of the Ford production was successfully moved to Waldaschaff from Fleurus ahead of the latter's closure. These actions will result in the loss of approximately 900 jobs across the Group.
Contracts
-In FY2006, order intake from French OEMs has been weaker this year partly due to temporary in-sourcing trends. While order intake from French OEMs has been weaker this year due to temporary in-sourcing trends, the Company is awarded contracts from several OEMs as follows;
Innovative Solution Business Group
-Luggage Management System for BMW
Closure Systems
-Front bumper assembly for Peugeot T8 (PSA MPV)
-Sliding door mechanisms and rails for Ford Fusion
-Door frames for X35X (GM Epsilon II)
Body Structures
-Body structure parts for Peugeot T76 programme (will replace the existing T56 (PSA307cc) in 2008)
-Body structure parts for Renault Master (W62)
-The Company acquired Oxford Automotive, a leading European automotive supplier of large stampings, Body-in-White Assemblies and hinges and mechanisms in April 2006. T
-The Company has run three major reorganization programs in association with the acquisition of Oxford.
1. The Operational Centre integration, completed in December 2006, involved the closure of the Company's former headquarters in Poissy, France and the transfer of its activities to Oxford Automotive's base near Paris.
2. The Disposal of five low-tonnage stamping plants, also completed in December 2006. They operated in a market segment non-core to the Company's new positioning and performed poorly during the first half.
3. The plant restructuring programmes, now well into their final stages, include the co-location of common production technologies and associated plant closures, productivity improvements and the rebalancing of its manufacturing footprint. As part of this process, all of the Ford production was successfully moved to Waldaschaff from Fleurus ahead of the latter's closure. These actions will result in the loss of approximately 900 jobs across the Group.
Contracts
-In FY2006, order intake from French OEMs has been weaker this year partly due to temporary in-sourcing trends. While order intake from French OEMs has been weaker this year due to temporary in-sourcing trends, the Company is awarded contracts from several OEMs as follows;
Innovative Solution Business Group
-Luggage Management System for BMW
Closure Systems
-Front bumper assembly for Peugeot T8 (PSA MPV)
-Sliding door mechanisms and rails for Ford Fusion
-Door frames for X35X (GM Epsilon II)
Body Structures
-Body structure parts for Peugeot T76 programme (will replace the existing T56 (PSA307cc) in 2008)
-Body structure parts for Renault Master (W62)
R&D
R&D Expenditure
| (in million pounds) | March 2007 | March 2006 | March 2005 | March 2004 | March 2003 |
| R&D Expenditure | 10.3 | 5.0 | 6.2 | 9.6 | 9.7 |
Investment Activities
| (in million pounds) | March 2007 | March 2006 |
| Capital Expenditure | 58.9 | 28.9 |
Overseas Investment
-The Company has opened three new plants this year: in Atessa (Italy), producing body structure parts for the Ducato van for the Fiat /PSA joint venture; in Orense (Spain) producing the sun visor and glass roof systems for the new Citroen Xsara Picasso; and in Shanghai (China) where the Company has started production for Hyundai, and where its Oleo business is also now producing lift buffers.
-In addition, as part of its restructuring programme and its development in low cost countries, the Company has established expertise in roll-forming and assembly at its plant in Bursa (Turkey), and the Company is establishing an assembly plant in Romania to serve its Innovative Solutions and Closure Systems businesses. The Company has also accelerated the transfer of some programmes to its plant in Turkey, particularly from its plant in Brownhills (UK).