Magneti Marelli START - 2

Global development engines

Despite the European crisis, the production of motor vehicles at global level is growing by 4.6% thanks to the contribution of developing economies. Countries where Magneti Marelli brings technology and innovation, but also the culture of sustainability.

The numbers speak loud and clear. At the global level, the production of automobiles and light commercial vehicles has posted a significant growth (+4.6%).

Compared to a struggling Europe (-2.3%), in fact, North America recorded a noteworthy increase in production (+11%), the Brazilian market is growing (+3.8%), and China continues to move forward with an average annual production increase that is around 9%.

The fact that surfaces from this quick overview is clear enough: Magneti Marelli’s global development strategy and the steady investment in production plants and in the definition of joint ventures on all five continents, and specifically in the so-called developing countries, have enabled the company to stay in step with the dynamics and challenges of the global automotive market.

Bringing innovation, technologically cutting-edge products and also an approach aimed at sustainability even within “young” economies, undergoing their full development phase.

The most glaring example is precisely China, a country where Magneti Marelli has been operating since 1996 and where it has managed to set up its business in a very solid and competitive fashion.

With a footprint that covers the main strategic areas of the Chinese automotive market, the Company is a supplier to 13 Chinese carmakers and 10 international carmakers with facilities in China, relying on a total of 8 industrial plants and engineering centres - including direct facilities and JVs - that employ over 3,000 people.

Another example of success is India, a country where Magneti Marelli, thanks to various joint venture agreements, has duplicated its industrial perimeter in just a few years, from 2007 to 2011. Magneti Marelli is present in India with 8 production plants in areas that range from powertrain to electronics and lighting, along with exhaust systems and suspensions.

With a view of creating engineering skills and know-how onsite and to provide the best support to the development programs of its Indian customers, Magneti Marelli has set up local engineering application centres, thus confirming its high level of participation in the country’s social and economic development and growth.

One last example of Magneti Marelli’s global development is obviously Brazil, one of the Company’s main markets that employs over 8,500 people in 11 production plants and 5 R&D Centres.

Magneti Marelli started its operations in this country way back in 1978, conquering along the way a bigger and bigger market share and introducing innovative technologies, such as, for example, the Flexfuel and Tetrafuel systems, which have marked the evolution in certain technological segments of Brazil’s automotive scenario.

Agreements and Joint Venture for 2012

China
Changchun Fudi Equipment Technology Development Co., Ltd. JV (51% Magneti Marelli and 49% FUDI) for the production of powertrain systems intended mainly for the Chinese market.
Hefei Jianghuai Automotive Co., Ltd (JAC) and Hefei Lingdatang Collective Assets Management Co., Ltd, JV (51% Magneti Marelli, 37% JAC and 12% Lingdatang) for the production of exhaust systems.

Mexico
Joint Venture Agreement between Sistemi Sospensioni S.p.A. (51%) and Promatcor Inc. (49%), which marked the birth of a new company called Magneti Marelli Promatcor Sistemi Sospensioni Mexicana S.de R.L. de C.V. The company will be dealing with the production of complete suspensions for the Fiat Professional Ducato in Mexico.

Italy
Four-year agreement between Magneti Marelli and Dorna that will enable all MotoGP teams to fit Magneti Marelli’s Electronic Control System on their motorcycles.


New plant openings

China
A new Magneti Marelli plant for the production of exhaust systems for GAC Fiat was inaugurated in Changsha. At full capacity, the plant will have a workforce of over 200 people and it will be able to produce up to 300,000 systems a year.

India 
A new plant for exhaust systems was inaugurated by SKH Magneti Marelli Exhaust Systems Pvt Ltd. The plant is located at the Maruti Suzuki Supplier Park in Manesar, nearby Gurgaon and just a few kilometres away from New Delhi.

Interview with Jack Cheng, Country Manager for Magneti Marelli China

Jack Cheng

Constant growth and development based on quality. Interview with Jack Cheng, Country Manager for Magneti Marelli China.

Magneti Marelli has been operating in China since 1996, and it has “followed” the explosive growth of this country’s economy in the past 10 years. What challenges does this growth entail?
We are facing an important transformation. From the standpoint of economic indicators, the Chinese market has gone from a double digit growth posted until 2010, to a one-digit but constant growth. However, there is an even more interesting factor: China has switched from a quantitative growth to a qualitative one. And it is on this field that the most important match, for us, is being played.
Because it means working towards a local adaptation of product design, of the ability to develop a product, as well as of project management activities. In order to deal with this challenges, we have invested first of all in the area of Research and Development, bringing the expertise and know-how of Magneti Marelli’s global R&D network to the local level.

How important is the issue of sustainability in the growth of Chinese automotive sector?
As always, in contexts where accelerated industrialization and urbanization phenomena take place, the topic of sustainability takes on a strong value. If we think about environmental sustainability, there are many measures that can be taken: promoting energy savings and the development of alternative energy sources; rationalizing the use of mine resources, through careful use of local resources; promoting sustainable use of water resources; vigorously protecting the resources of the sea; intensifying the battle against pollution; seriously dealing with the issue of climate change.
As concerns economic sustainability, it is necessary to contribute to an innovative path of industrialization and stimulate the purchase of environmentally-sustainable products.
As regards sustainability in the social sphere, on the other hand, we need to, generally speaking - including the different topics which I mentioned before - work towards a gradual improvement of the environment and of living conditions.

What has Magneti Marelli done so far in this sense?Looking at these objectives, we have been operationally active with various measures. From the standpoint of contributing strategic-industrial know-how, we have, for example, taken part in the special Forum organized by the Chinese government in order to lay down the ESV and NEV Industry Development Plan. Also, as it specifically regards our job, the introduction of Gasoline Direct Injection (GDI) technology has contributed to improving engine efficiency and reducing CO2 emissions, just like the Electronic Fuel Injection (EFI) technology applied to motorcycles was a part of a strategic agreement entered into with the government of the Municipality of Chongqing.