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When Pacific Century Motors of China bought US-based Nexteer Automotive from General Motors in late-2010, everyone stood up and took notice.
The $420-million buy was a substantial investment in an American auto component company and clearly signalled China's intent to go global.
From Mr Robert J. Remenar's point of view, though, it is business as usual despite the changed ownership structure.
India link
The President & CEO of Nexteer Automotive told a team of Indian journalists at the company's Saginaw headquarters in Michigan that the company remained firmly ‘focused on its craft' of making electric and hydraulic steering systems, steering columns and driveline products for vehicle makers.
Nexteer's India association began in 1995 when it set up operations in Bangalore, followed by Gurgaon in 2008 largely to cater to Maruti Suzuki. The next stop is scheduled at Chakan near Pune where a $6-million (around Rs 28 crore) plant will be commissioned in March 2012.
Chakan will produce hydraulic power steering, pumps, drivelines, columns and electric power steering systems. These will meet the needs of key customers such as Tata Motors, Fiat Mahindra & Mahindra and General Motors.
From Nexteer's viewpoint, the other Chinese connection here is SAIC Motor Corp, which will use the GM facility in Talegaon to grow its India presence before moving eastwards to Thailand, Malaysia and Indonesia. Nexteer will be a key part of this plan though Mr Remenar did not give further details.
The company's India business has grown from around $7 million, since the time it was set up, to $52 million today. Bangalore will see an additional $4 million investment to the $30 million already pumped in and the revenue expected as a result is around $16 million.
Global presence
Roughly a third of the products (from Bangalore) are exported, which include despatches to Suzuki plants in Japan, Hungary and Indonesia.
Nexteer has 22 plants spread across South America, Mexico, Europe, India, Australia and China.
The new owner, Pacific Century Motors, is keen that the company spreads its global footprint even more aggressively with four more locations scheduled to be added in good time.
A large part of Nexteer's 100-year history was spent in the GM fold, barring the period when it was spun off as a division of Delphi Corp in 1999.
A decade later, GM bought the global steering operations, rechristened it Nexteer and promptly sold the business in the following year to Pacific Century.
By 2013, said Mr Remenar, 90 per cent of North America's pickups will be fitted with Nexteer's electric power steering system.
Likewise, EPS will be available in over 50 per cent of the world's automobiles by 2012.
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