Nexteer Automotive Group Ltd. Business Report FY ended Dec. 2018
Financial Overview |
(in million USD) |
| FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | Rate of change (%) |
Factors | |
| Net Sales | 3,912.2 | 3,878.0 | 0.9 | 1) |
| Net Profit | 384.3 | 355.9 | 8.0 | 2) |
Factors
1) Net Sales
-The Company’s net sales for the fiscal year ended December 31, 2018 was USD 3,912.2 million, an increase of 0.9% over the previous year. Sales in North America increased by 3.6% over the previous year. Despite a decrease in light vehicle production, strong demand for 2018 program launches, 2017 carryover programs and a favorable product line mix combined with increased full-size truck production drove sales. Sales in the Asia Pacific region decreased by 8.5% primarily due to lower OEM pricing and unfavorable customer pricing. In the EMEA and South America regions, sales increased by 3.2%, due to carryover programs and a positive foreign currency translation effect. The gains in the region were partially offset by weaker production volumes.
2) Net Profit
-In the fiscal year ended December 31, 2018, the Company’s net profit increased by 8.0% to USD 384.3 million. The increase in profit was primarily driven by successful customer program launches, improved efficiencies resulting in decreased costs and improved product mix.
Contracts
-In 2018, the Company launched the following 22 major customer programs, with 11 in North America and 11 in the Asia Pacific region.
North America
Rack-assist EPS: Ram 1500, Ford Ranger, GMC Sierra 1500, Chevrolet Silverado 1500, Chevrolet Blazer, Holden Acadia
Steering column: Ram 1500, Ford Ranger
Intermediate shafts: GMC Sierra 1500, Chevrolet Silverado 1500
Driveline products: GMC Sierra 1500, Chevrolet Silverado 1500, Holden Acadia, Chevrolet Blazer
Asia-Pacific
Steering column: Jeep Grand Commander
Driveline: Maruti-Suzuki Swift Dzire Tour, Nissan Micra
Column-assist EPS: Buick Excelle, SGMW Rongguang, SGMW Baojun RS-5, Changan Ossan X70A, Changan Eado, Changan Yuxiang V3, Changan CS35 Plus, Changan Raeton CC
Awards
-The Company was recognized as a top-performing global supplier for Ford Motor Company, receiving two awards at the 20th annual Ford World Excellence Awards. The Company earned the award for achieving the highest levels of global excellence based on the Aligned Business Framework principals which focuses on quality, delivery, value and innovation. The Company also received the Silver Award, recognizing its steering gear manufacturing facility in El Marques, QRO C.P. Mexico. (From a press release on May 23, 2018)
-The Company was named a GM Innovation Award winner during General Motors’s 26th annual Supplier of the Year awards ceremony held in Orlando, Florida. The Company was named one of four 2017 Innovation Award winners for high availability electric power steering system – a steering innovation that enables advanced safety for varying levels of autonomous driving. (From a press release on April 30, 2018)
-The Company also won the following awards in 2018:
- SAIC-GM-Wuling Excellent Supplier Award for Nexteer Liuzhou
- SAIC-GM-Wuling Excellent Supplier Award for Indonesian Subsidiary for Nexteer Indonesia
- FCA-GAC Excellent Delivery Performance Supplier Award for Nexteer China
- GM Supplier Quality Excellence for Nexteer India
- Maruti Suzuki Superior Performance and Consistently Delivering High Quality Performance Award for Nexteer India
- Tata Agility Award
- Nissan Best Innovative Idea award
- PSA Platinum Supplier Status Certificate of Excellence for Nexteer Poland
- FCA Commitment to Excellence in Management Aligned with Quality Principles award for Nexteer Brazil
R&D Expenditure |
(in million USD) |
| FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | |
| Overall | 278.5 | 249.3 | 232.8 |
| Expenditure as % of revenue | 7.1% | 6.4% | 6.1% |
R&D Facilities
-As of December 2018, the Company has 1 Global Technical Center, 3 Regional Technical Centers, 14 Customer Service Centers and 1 Software Service Center.
-The Company will expand its strategic software investment and global software team by opening a Software Center in India. The Software Center will be the latest addition to the Company’s global software team that operates under one digital roof with locations in Saginaw, US; Tychy, Poland; and Suzhou, China. The Company’s software plays a safety-critical role in its products such as Steer-by-Wire and Electric Power Steering Systems that are key gateway technologies for advanced safety functions and automated driving. (From a press release on April 9, 2018)
-The Company continued construction on its regional technical center in Suzhou, China through 2018. The technical center is expected to begin operations in the third quarter of 2019 and will be used to develop local engineering competencies in EPS design, electrical systems, and software engineering.
-The Company’s technical center in Tychy, Poland became fully operational in 2018. The technical center employs approximately 200 engineers.
Product Development
Technologies showcased at the 2018 NAIAS
-The Company is exhibiting advanced steering technology at the 2018 North American International Auto Show, featuring systems that accommodate both semi- and fully-automated driving. Its Steering on Demand System is activated with the press of a button or by grabbing the steering wheel to transition steering control between automated and manual driving in vehicles capable of Level-3 and higher autonomous driving. The Quiet Wheel Steering system prevents the steering wheel from moving during autonomous mode, even while the vehicle is in the process of turning. The Company’s Steer-by-Wire systems, electronics and actuators on the steering column and rack support both manual and autonomous driving. (From a press release on January 16, 2018)
Capital Expenditure |
(in million USD) |
| FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | |
| Overall | 303.7 | 357.4 | 284.7 |
Investments outside U.S.
<Morocco>
-The Company announced a new production facility in Kenitra, Morocco. Initially, the Company will use the facility to manufacture single pinion-assist electric power steering systems. The Company plans to extend manufacturing to driveline products in the future. The new 18,000-square-meter facility will be the Company’s first plant in Africa and is scheduled to host a groundbreaking ceremony in late March 2018. Production at the facility is scheduled to begin in 2019. (From a press release on February 22, 2018)
<China>
-In 2018, Dongfeng Nexteer announced the opening of its production facility in Wuhan focused on single pinion-assist EPS systems. The facility will be fully operational by the second quarter of 2019.
<Mexico>
-In 2018, the Company opened a new production facility in Queretaro, Mexico focused on producing driveline products.
<India>
-Due to winning new business in India, the Company opened its third production facility in the country. The facility is located in Chennai, and will produce EPS and driveline components. Production at the facility began in the first quarter of 2019.