CIE Automotive, S.A. Business Report FY ended Dec. 2018

Recent Years

Financial Overview

(in million EUR)
  FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 Rate of change
Net Sales 3,029.5 2,842.5 6.6
EBITDA 529.0 471.1 12.3


-The Company’s net sales for the fiscal year ended December 31, 2018 increased by 6.6% to EUR 3,029.5 million. The Company had organic growth of 10.1% during the fiscal year. Sales were boosted by the Company’s strength in operations in North America, Brazil and Asia. While the Company’s sales in the European commercial vehicle segment also increased, its sales tied to the European passenger vehicle segment decreased due to the introduction of the new WLTP.


-The Company’s subsidiary, Mahindra CIE Automotive Limited, informed that its Board of Directors approved the merger between Bill Forge Private Limited and Mahindra CIE. The merger would result in increased operational efficiencies, bring economies of scale and result in synergetic integration of businesses presently being carried on by Mahindra CIE and Bill Forge. Bill Forge is a Tier One supplier of passenger car OEMs and manufactures a variety of cold, warm, hot forged and machined components primarily for steering, transmission and wheel-related assemblies. (From Mahindra CIE press stock exchange filing on September 25, 2018)

-The Company announced the acquisition of Inteva Roof Systems. The transaction, upon its closing and execution, shall entail an investment of USD 755 million. With more than 4,400 employees, Inteva Roof Systems operates sixteen manufacturing facilities and six research centers in seven countries. The transaction enables the Company to reinforce its commitment to comfort systems. (From a press release on September 17, 2018)


-In July 2018, the Company divested its Dominion business unit. The Dominion business unit previously provided solutions, services and support to other companies to improve the efficiency of their processes.

Joint Ventures

-The Company acquired an additional 5% in Mahindra CIE Automotive from Mahindra & Mahindra for approximately EUR 60 million. Its stake in the joint venture increases to above 56%. Created in 2013, the Mahindra CIE Automotive joint venture helped the Company, both in entering the Indian market and for creating of a worldwide forging unit. (From a press release on June 29, 2018)

Recent Developments

-The Company's financial targets for the fiscal year ended December 31, 2020 were updated as follows during the fiscal year ended December 31, 2018:

  • Sales: Approximately four times market growth
  • Return on net assets: Approximately 23%
  • EBIT margin: At least 14%
  • Net debt to EBITDA ratio: Approximately equivalent
  • Annual capital expenditure: Approximately 7.5% of sales


-The Company received the following awards in 2018:

Awarding Company Awarded factory Name of the award
Honda CIE Plasfil (Portugal) Sustainability award
GM Nanging Automotive Forging (China)
PEMSA Celaya (Mexico)
CIE Inyectametal (Spain)
Logistics and quality
Supplier Quality Excellence Award
Supplier Quality Excellence Award
Ford CIE Galfor (Spain)
CIE Autometal Camacari (Brazil)
PSA CIE Compiegne(France) Best of the Best Plant Award 2018
Mercedes-Benz CIE Durametal(Brazil) Excellence in logistics
Jaguar Land Rover CIE Galfor (Spain) JLRQ award
Aisin CIE Taubate (Brazil) Logistics Achievement Performance Certificate
ZF CIE Celaya Aluminio (Mexico) Excellence in motion 2018
Nexteer CIE Celaya Aluminio (Mexico)
CIE Unitools Press (Czech Republic)
Perfect Quality 2018
Perfect Quality 2018
Bosch CIE Celaya Aluminio (Mexico)
Bill Forge Bommasandra (India)
Best supplier award North America 2016/2017
Achieving Delivery Target-2018 under Silver Category

R&D Structure

-As of December 31, 2018, the Company has 7 research and development centers worldwide in the following countries:

  • Spain
  • Portugal
  • Germany
  • France
  • Brazil
  • Mexico
  • India

R&D Activities

-The European Investment Bank (EIB) is providing a EUR 80 million loan under the Investment Plan for Europe to finance the Company’s RDI strategy aimed at developing innovative technologies to reduce the weight of vehicles and ensure more efficient, less polluting manufacturing processes. The Company will focus its investment on innovation and the development of hybrid and lightweight materials. Its RDI programme is also aimed at the design and manufacture of new electric vehicle components. The investments will be utilized at the Company’s plants in Spain, France and Portugal. The agreement will also serve to finance the upgrading of the Company’s factories in the Czech Republic, Slovakia, Romania, Portugal and Lithuania. The program will be implemented through 2022. (From a press release on July 24, 2018)

Capital Expenditure 

(in million EUR)
  FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 FY ended Dec. 31, 2016
Total 210.9 131 186.4

-The Company invested EUR 210.9 million in the fiscal year ended December 31, 2018. Of this total, EUR 87.6 million was earmarked towards greenfield projects, including a new welding assembly plant in Mexico, a new crankshaft line in Lithuania, and an expansion of fuel rail lines for gasoline engines in Spain.

Investment Outside Spain

-In January 2018, the Company began operations at its new welding and assembly plant in Puebla, Mexico. The plant is located on a 5,000-square-meter site.

-The Company announced it is investing USD 150 million to support its expansion plans in Mexico. The Company’s CEO, Jesus Maria Herrera, stressed that the plans for Mexico will create 1,000 new job positions and "significant improvements in key aspects" such as energy efficiency or development from a competitive base of local suppliers. (From a Mexico-Now article on July 5, 2018)

-CIE LT Forge, a subsidiary of the Company, has opened a second shaft production line in Marijampole, Lithuania. Its EUR 10 million investment will triple its production capacity. The launch of the new line created 60 jobs and took two years to complete. The second shaft production line features automated controls, better production efficiency and higher quality processing. With the opening of the new line, production capacity has tripled to 1.5 million units per year. The new line produces crankshafts for Audi, Renault and Volkswagen models. (From Invest Lithuania press release on March 27, 2018)