Auto Components

Visteon Avtopribor Electronic, a new joint venture (JV) between US parts supplier Visteon Corporation and local firm OAO Zavod Avtopribor, is on course to become the largest automotive electronics supplier in Russia. BMI sees the tie-up as a significant addition to Russia's vertically integrated and loose auto supply chain and expect it to set the precedent for similar partnerships in the country.

News: According to Interfax, Till Brauner, the head of German automaker Audi's Russian division, has stated that he does not expect Russian car sales to plunge beyond 10% in 2009. He added that the...

News: Russian government is planning to introduce a scheme for trade-in of old cars in the country on the lines of cash-for-clunkers programme implemented in the US to boost its struggling car industry....

Russian carmaker IzhAvto has filed for bankruptcy at the Arbitration Court of the Republic of Udmurtia, where it is based. The filing has made IzhAvto the first victim of the ongoing crisis that has...

Visteon Joins The Wave Of Investment In Parts Sector - Automotives Insight (registration)

The strike in the component manufacturing industry, now in its second day, had already taken its first casualty, with Volkswagen of South Africa (VWSA) announcing on Wednesday that it had been forced to close its Uitenhage plant, which produced the Polo model for the local and export markets, and the Vivo for the local market.

Jennings noted that vehicle manufacturers were bound to be affected by the component strike as they ordered parts according to the just-in-time principle, which meant that they did not hold large component stocks.

The strike in the component industry followed hot on the heels of a crippling eight-day strike by Numsa at South Africas car and pick-up manufacturing plants last month, which cost the industry 17 000 units in new vehicle production.

BMW South Africa also announced on Thursday that all new vehicle production had ground to a halt, owing to the strike in the component industry.

BMW, VW plants down as component strike enters second day - Creamer Media's Engineering News

Schaeffler Group, the roller-bearing maker that aims to merge with Continental AG, reported a second- quarter profit in its first-ever financial report as record car sales in China and a resurgent U.S. market spurred demand.

Net income was 97 million euros ($125 million) compared with a loss of 203 million euros a year earlier, Schaeffler said today. The company is being conservative with forecasts that revenue in 2010 will significantly exceed 8 billion euros and that earnings before interest and taxes will be more than 10 percent of sales, Chief Executive Officer Juergen Geissinger said in a Bloomberg News interview in Munich.

Closely held Schaeffler, whose roller bearings are used in the London Eye Ferris wheel, Frances TGV high-speed train and Airbus SASs double-decker A380 airliner, is working to reduce debt that financed the 2008 takeover of Continental . The Herzogenaurach, Germany-based company published financial figures and held its first earnings press conference as part of preparations for a possible stake sale to outside investors.

Continental rose as much as 1.24 euros, or 2.6 percent, to 48.94 euros and was up 2.3 percent as of 3:54 p.m. in Frankfurt. The company has a market value of 9.76 billion euros.

Schaeffler Reports Second-Quarter Profit on Record China Car Sales, US - Bloomberg

Rajkot auto components industry, which has about 70% share in the Indian auto parts industry, seems to be on an expansion mode buoyed by more than anticipated demand.

Rajkot, which has about 1000 small and medium units, is witnessing an increase in their production capacity to cater to the huge demand this year. As per industry sources, the orders have increased by 35% to 40% this year and to fulfill the requirement, companies are investing in capacity expansions.

Rajkot has about 50 original equipment manufacturer suppliers in auto components and the total turnover of these units is about INR 800 crore to INR 1000 crore per year. An overall turnover of the industry is about INR 4000 to INR 4500 crore every year.

City based Amul Industries, which is a leading supplier for TATA Nano cars has already invested INR 10 crore for expansion this year. The company is building up a unit near Nano factory at Sanand.

Rajkot auto components units on expansion drive - SteelGuru

Credit ratings agency, The rating factors in Rico`s established position as a supplier of automotive components and assemblies in the domestic market to leading automotive Original Equipment Manufacturers (OEMs) and tier-1 suppliers; its diversified product lines; focus on increasing customer and geographic diversity and strategic partnerships in the form of JVs with several leading global automotive suppliers.

Rico`s integrated value chain encompassing manufacture of castings (aluminium and ferrous), machining and assembly provides it the capability to be a full service provider to auto OEMs.

Rico has also set up JVs with leading global automotive suppliers that are likely to provide benefits to Rico over the long term in terms of access to technical knowhow; manufacturing capability in alternate product lines; increase in content per vehicle and broader customer base. However, Rico`s high single client concentration (HHML accounted for 46% of business in 2009-10) remains a concern.

Also, the large debt-funded capital expenditure incurred by the company in the past towards expansion of capacity and investments in JVs has resulted in higher financial leverage and weaker debt coverage indicators.

ICRA reaffirms `LA-/A2+` raTING ON Rico Auto Inds - Myiris.com