Magneti Marelli (Components)
Magneti Marelli reported an increase in revenues of 3% over the prior year (6% at constant exchange rates) driven primarily by performance in NAFTA and China, in addition to a modest gain in Europe. In Brazil, revenues were substantially in line with 2012 on a constant currency basis.
During the year, Magneti Marelli entered into several major agreements relating to the development of innovative products in its core business areas.
In January, an agreement was signed with a leading car leasing company, LeasePlan, for fleet maintenance by Magneti Marelli’s Checkstar service centers.
In September, Magneti Marelli and China South Industries Group Corporation, a manufacturer of automotive parts and systems, entered into an agreement to establish a 50/50 JV in China (Hubei Huazhong Magneti Marelli Automotive Lighting Co. Ltd.) for the production of auto headlights and tail lights.
In November, Magneti Marelli signed two cooperation agreements with Faurecia (a global supplier of passenger car modules and components), one for the production and distribution of interior and exterior components for FIASA in Brazil (Pernambuco) and the other for the design, development and production of advanced human-machine interfaces for vehicle interiors.
Also in November, Magneti Marelli signed a cooperation agreement with Opar, a Tofaş subsidiary and leader in the automotive parts market in Turkey, for distribution of aftermarket parts in Turkey. It also entered into an agreement with Iveco for the distribution of two new lines of OEM parts for LCVs in Europe.
In December, Magneti Marelli and Hero MotoCorp Ltd. established a JV in India for the production of engine control systems for the two-wheeler market. Magneti Marelli will hold 40% of the JV and Hero MotoCorp the remaining 60%.
Performance for the principal business lines was as follows:
Revenues totaled €2,275 million for 2013, an increase of approximately 12% over the prior year driven by growth in NAFTA, where several new products were launched during the second half of 2012, and in China for Volkswagen. In the German-Czech Republic region and Brazil, revenues were substantially in line with the prior year.
Innovation and development activities related to:
- LED projection module (eLight Modular Concept), the concept has the flexibility to react to changes in market trends and/or technological improvements such as substitution of the LEDs with latest generation LEDs that offer the same performance with fewer diodes;
- glare free high-beam LED technology applied on reflexion technology. Based on use of a single LED, the solution will reduce the cost of modules;
- laser beam in headlamps: product which will use the laser beam module for a high beam application.
Major new orders included headlights for Audi, Ford, Volkswagen and Mini models, as well as headlights and tail lights for Honda.
Revenues totaled €898 million, which was in line with the prior year on a constant currency basis. In Europe, an increase in turnover from sales of the direct injection pump to Hyundai more than compensated for lower sales of a similar component to PSA.
A modest increase in sales to FIASA and Volkswagen in Brazil and the supply of new products to Chrysler more than compensated for the loss of revenues associated with the sale of the carburetor business to Edelbrock in 2012.
Activity in the Chinese market was in line with 2012, while sales to Maruti Suzuki in India were down, particularly in the second half, due to an overall decline in local demand.
On the innovation front, development continued on electric inverters and motors for application on hybrid electric and battery electric vehicles (HEV/BEV) for Ferrari, Qoros Group (China) and Chrysler.
Major orders received during the year included: systems and components for FAW and Volkswagen, intake manifolds for the Chrysler Pentastar, systems and components for Chrysler and Qoros hybrid vehicles, manifolds and throttle bodies for Fire MultiAir turbo engines for Fiat/Chrysler and Mazda.
Revenues were €470 million, substantially in line with 2012. Increased sales associated with the Ducato in Brazil and Mexico compensated for contractions across brands for Fiat Group, the business line’s principal customer, in Italy and Poland.
Research and innovation activities related to high-resistance metal (steel and iron) and alloy solutions (carbon steel) and variable thickness components continued during the year.
Major new orders included suspension components for the new SUV vehicle platform for Fiat/Chrysler in Italy and Brazil.
The business line recorded revenues of €309 million for 2013, a 4% year-over-year decrease at constant exchange rates attributable to an overall contraction in demand in the business line’s core markets.
Principal new product developments during the year related to aluminum mono-tube shock absorbers that contribute to reduced emissions, cabin leveler shock absorbers for Iveco, low-cost Dual Stage Valve shock absorber technology, and E_FSD (electronic frequency selective damping) shock absorbers. Development also continued on regenerative shock absorbers.
Revenues totaled €935 million for the year, an increase of approximately 7% over 2012 driven primarily by growth in sales of telematics and body products to PSA (RT5, RT6 and RT6FF radio navigation systems and SMEG A9 and SMEG+ infotainment systems).
Ongoing innovation projects included: development of a new infotainment system for BMW (launched in November 2013); the new instrument cluster platform for Audi and Fiat/Chrysler SUVs; new body computers for Chrysler and Fiat/GAC’s Compact United States Wide (CUSW) platform, the L7 family in Slovakia (Ducato and Iveco MY 2014), the L9 family for application on FIASA models in LATAM.
New orders included: the E-call system for FGA, a telematics box for GM and Suzuki, an infotainment system for the BMW EVO range and a body computer for the 2014 Ducato.
Revenues totaled €559 million, a 2% decrease at constant exchange rates attributable to the overall contraction in demand in the business line’s principal markets, which was only partially offset by increased volumes to customers in Serbia and China.
On the innovation front, the business line launched projects for the development of second generation Selective Catalytic Reduction systems. In addition, research continued on systems that recover exhaust-generated heat and design solutions to reduce the weight of exhaust systems and, consequently, contribute to achieving lower CO2 emissions through reductions in the total weight of the vehicle.
Major new orders included exhaust systems for Chrysler’s TigerShark engine in the U.S. and Volkswagen’s LCV range in Germany.
Revenues totaled €356 million for 2013, up 5% over the previous year (+13% at constant exchange rates). Growth in Europe and Mercosur was partially offset by decreases in NAFTA. March saw the launch of the business line’s sales activities in China, where lighting products led the way. All product areas experienced volume increases with particularly strong growth for telematics products.
Plastic Components and Modules
Revenues were down 2% over the prior year to €410 million. The decrease was attributable to an overall contraction in demand in the business line’s core markets, only partially compensated for by revenue growth associated with new products for FGA models, particularly the 500L.
Orders received during the year included interiors, exteriors, fuel systems and pedals for the new B-SUV Jeep to be produced at the Melfi plant starting in 2014.
Teksid (Metallurgical Products)
During 2013, the global Light Vehicle market registered a 3.1% increase globally. By region, production for Teksid’s customer segment was down 0.5% in Western Europe (Italy -0.5%, France -11.5%, Spain +8.5%), but higher in both Mercosur (+4.1%) and North America (+4.8%).
For Medium and Heavy Vehicles combined, the global market was up 4.3% over the prior year. By region, production for Teksid’s customer segment was down 2.8% in Western Europe (Italy +4.4%, Germany -9.3%, France -3.3%), up 43.5% in Mercosur (Brazil +47.5%, compared with 2012 when volumes were down 50% over pre-crisis levels) and down 3.0% in NAFTA. Increases were not sufficient to bring Teksid’s volumes in the Medium and Heavy Vehicle segment to pre-crisis levels.
The Cast Iron business unit recorded a 7% decrease in volumes, primarily due to lower demand in the heavy vehicle segment, and the continuing shift to the use of aluminum in the production of car engine basements. Revenues were down 16% for the year.
The Aluminum business unit closed the year with volumes up 13% and revenues up 10%
Comau (Production Systems)
During 2013, automakers maintained investment in activities related to the Body Welding business line at 2012 levels, but reduced investment in areas related to Powertrain’s activities.
In the U.S., automakers continued to invest, but at significantly different levels.
In China, investment levels remained high.
In Brazil, new contract orders were up and the medium-term outlook is robust.
In Europe, investment levels were higher in the U.K., but elsewhere automakers demonstrated a high degree of selectivity in their investment programs.
Order intake for the Systems activities totaled €1,454 million, an increase of 18% over the prior year attributable primarily to the Body Welding business.
By region, 44% of new orders were generated in Europe, 28% in NAFTA, 16% in APAC and 12% in LATAM. By customer, 25% of orders came from Fiat/Chrysler companies and the remaining 75% from other manufacturers. At 31 December 2013, the order backlog totaled €1,022 million, a 17% increase over the previous year.
For the Services operations, activity was substantially in line with 2012 levels but with signs of a recovery.