IAC (International Automotive Components) Group Business Report up to FY ended Dec. 2014
Recent Years
Financial Overview
-In the fiscal year ended December 31, 2014, the Company had sales of approximately USD 5.9 billion. The Company had sales of USD 3.2 billion in North America, USD 2.3 billion in Europe, and USD 400 million in Asia.
Joint Venture
-In 2013, the Company established a joint venture with Feltex Automotive, a South Africa-based supplier of automotive trim components. The joint venture IAC-Feltex Pty Limited (IAC-Feltex), located in East London, Eastern Cape province, marked IAC's initial entry into the South African automotive market. IAC-Feltex will initially support current production requirements for Ford, Mercedes-Benz, Toyota and Volkswagen South Africa operations. Also, this facility will support global vehicle programs, such as the Mercedes "C-Class", for which the Company will supply interior garnish trims, flooring systems, trunk trims and exterior wheel arch liners. (From a press release on July 9, 2013)
Recent Development
-In October 2014, the Company announced the grand opening of its European headquarters in Dusseldorf, Germany. The new facility hosts European operations including commercial and sales, design and engineering, procurement, and administrative activities. Program management teams work in partnership with other regions to oversee global platform launches and ensure consistent production standards across four continents for customers such as Daimler, BMW, Volkswagen and Jaguar Land Rover. The Dusseldorf facility currently has approximately 100 associates in sales, engineering, and administrative roles. (From a press release on October 8, 2014)
-In June 2014, the Company opened its Asia headquarters in Shanghai. In addition to housing a technical center, the new 30,000-square-foot headquarters will host many of the Company's Asian operations including the region's commercial and administrative activities, global and domestic design and engineering, procurement, and manufacturing leadership. The center currently employs approximately 115 professionals for engineering, administration and sales, with plans to eventually expand its workforce to 150 employees. (From news releases issued by multiple sources on June 10, 2014)
-In April 2014, the Company inaugurated its new global headquarters in Luxembourg. The new headquarters will serve as the Company's home office for its global executive team and its European senior leadership. The location will also host corporate central functions and general administrative activities. (From a press release on April 28, 2014)
-In 2013, the Company established a sales and engineering office in Incheon, South Korea. The Company currently supplies interior components for a number of Hyundai and Kia programs through Hyundai Mobis and also will support additional new business from Ssangyong Motor, Renault Samsung and GM Korea.
Contracts
-In 2013, the Company will supply various interior components to Chevrolet's new vehicle, the 2014 "Corvette Stingray", launching later 2013. The Company will produce the various "Corvette" components in Dayton, Tennessee, USA. Pre-production and prototype components are currently being tested and the interior parts supplier expects to begin full-scale production in July, 2013. Components to be supplied include:
- Hand-crafted instrument panel and floor console
- Pillar trim
- Garnish
- Floor mats
- New Smartfoil solution for lower door panels
-In 2013, the Company has won the Opel "Adam" hoodliner business and the "Chevrolet Impala" floor carpet program.
Major Awards
| Year | Award | Company |
| 2013 | Supplier of the Year Award, Overdrive Award | GM |
| 2012 | Ford World Excellence Award | Ford |
| 2012 | Award of Excellence in Product Development | Mahindra & Mahindra |
R&D Expenditure
-In 2012, the Company spent USD 68 million in research and development.
R&D Facilities
-The Company holds design, technical and commercial centers around the world:
- Europe: 12 facilities
- North America: 7 facilities
- Asia: 7 facilities
Product Development
Leather-like thermoplastic olefin material
-In 2013, the Company announced that its leather-like thermoplastic material "SmartFoil" is supplied to the 2014 Chevrolet "Corvette" for the lower door panels. SmartFoil can be applied to most other injection molded parts including consoles and instrument panel components. SmartFoil features are as follows:
- Designed specifically for vehicles with low entry/exit points like the "Corvette", while providing improved luxury.
- Provides up to a 10 percent weight savings over traditional solutions.
- Durable top coat improves scratch, scuff and mar resistance.
- Eliminates the traditional adhesive process, as the sheet is bonded to the resin during a one step molding process.
Capital Expenditure
-In 2012, the Company invested USD 161 million on capital expenditures.
Investment outside Luxembourg
-In December 2014, the Company announced the opening of its newly expanded manufacturing operation in Anniston, Alabama, U.S. The 126,000-square-foot expansion increases the area of the facility to approximately 262,000 square feet. The operation will support the hiring of approximately 350 new skilled associates, which will increase the total workforce to more than 500 employees by 2016. Numerous manufacturing processes such as injection and compression molding will be featured at the new facility. These processes will be used to produce the Company's full suite of vehicle components, including instrument panels, door panels, flooring and acoustics and other interior trim systems for customers such as Nissan, Honda, Hyundai/Kia, and Mercedes-Benz. (From a press release on December 9, 2014)
-In October 2014, the Company inaugurated two new plants in Changshu, China: IAC Automotive Components (Changshu) Co., Ltd. and Shanghai IAC Songjiang Automotive Carpet & Acoustics Co., Ltd. Changshu Branch. The two new facilities cover a total of 23,400 square meters and will employ approximately 540 people. The facilities will produce components such as instrument panels, cockpit systems, door panels, center consoles, floor carpets, and acoustic components. Shanghai IAC Songjiang Automotive Carpet & Acoustics has four production lines that are capable of producing 200,000 sets of products. IAC Automotive Components (Changshu) has three assembly lines to produce cockpit systems, subpanels and roof panels. It also has an injection molding line, a surface bonding line, and a cutting and sewing line. (From news releases issued by multiple sources on October 16, 2014)
-In 2013, the Company announced the opening of its 10th manufacturing facility in China, in the city of Chongqing. The 10,400-square-meter facility employs approximately 275 associates. The new operation marks the Company's second manufacturing location in Chongqing, but will consolidate both locations. The new plant supplies following components:
- Ford "Kuga": Door panel and floor console assemblies
- Ford "Mondeo": Door panel, floor console assemblies, instrument panels, cockpits modules, finish trim and ducts
- Volvo "S80L": Door panel assemblies, glove boxes and instrument panels
- Suzuki: Instrument panel trim components will be launched the production by the end of 2013
-In 2012, the Company announced the opening of its new manufacturing facility, the Company's ninth facility in China, in the Shenbei New District, Shenyang, Liaoning Province. IAC's Shenyang facility is part of IAC Songjiang, a joint venture between the Company and Shanghai Car Carpet Plant (SCCP). The new facility, which supplies Shanghai General Motors' nearby Norsom facility with carpet for the "Chevrolet Cruze" and "Buick GL8", employs more than 100 associates. (From a press release on July 10, 2012)
-In 2012, the Company announced the opening of a new manufacturing facility in Bals, Romania. The Bals manufacturing plant is the Company's 27th in Europe and joins more than 90 IAC locations around the world. In June 2012, the IAC Bals plant began production to support Ford Motor Company's nearby assembly facility in Craiova, approximately 25 kilometers from the IAC facility. The new site employs approximately 250 people. The IAC facility, which covers 15,000 square meters, produces instrument panels, center consoles, rear doors, front door panels and headliners for Ford's new "B-Max" compact mini MPV (Multi-Purpose Vehicle). (From a press release on October 22, 2012)
-In March 2014, the Company announced the opening of two new facilities in New Delhi and Pune, India.