Magna Steyr, an operating unit of Magna International Inc., is expanding its presence in India by opening a new engineering and research & development office in Pune. The new office currently employs 70 engineers and support staff. Magna Steyr plans to recruit approximately 200 additional automotive engineers during 2008-09, to enhance its global Engineering and Research & Development functions. 

“The new office in India is a testament to Magna Steyr’s commitment to India and its importance in our global strategy,” said Guenther Apfalter, President of Magna Steyr. “Additionally, it creates an important base for engineering and research for both our global and local activities.” 

Magna Steyr has strategically chosen to grow its presence in the Chakan/Pune region to target the fast-paced automotive growth in the western part of the country, where many local and foreign OEMs have established operations. Magna has approximately 83,000 employees in 240 manufacturing operations and 62 product development and engineering centres in 23 countries.

Rane Engine Valves Limited (REVL) has inaugurated its most advanced production centre for manufacture of engine valves. Alexander M Seitz, Corporate Executive Director, Volkswagen, Germany, inaugurated the factory in the presence of L Ganesh, Chairman, Rane Group. REVL has invested more than Rs.355 million in the new factory. 

The new plant is located in Pudukottai near Tiruchirapalli, and is designed to produce 6 million valves per annum in phase 1. In the next three to five years, this is likely to be increased to about 25 million valves per annum. The plant is equipped with state-of-the-art CNC machines for various operations like grinding, turning and modern environment friendly heat treatment system. The company has set up an in-house training school at the cost of Rs. 5 million. 

Set up in 1959, REVL is the flagship company of the Rane Group engaged in the production of engine valves and valve train components. Today REVL is the market leader with more than 55% market share in India. REVL has 4 manufacturing facilities across India excluding the Pudukottai plant. The company’s annual turnover in FY 2006-07 stood at Rs.1.83bn with 33% of its revenue coming from exports.

The Brose Group is to acquire Continental AG’s electric motor operations. This comprises the former Siemens VDO’s electric motor drive operations and Continental AG’s engine cooling business. The acquisition is subject to approval by the antitrust authorities and the transfer of business is scheduled for April 1, 2008. Brose is a leading producer of mechatronic components and systems for the vehicle body and interior. At the end of 2007, Brose is expected to achieve sales of 2.5 billion euros with 9,800 employees working at 38 locations in 20 countries. 

Following the purchase of the door latch business from Bosch in 2003, the company will further enhance its expertise in automobile technology with the electric motor operations from Continental. As a market leader for window regulators, door systems and seat adjusters, Brose is the world’s biggest buyer of electric motors for these applications with over 70 million units per annum. Conti’s electric motor operations, at the other end, will achieve a business volume of 740 million euros in 2007. There are 4,200 employees working at 13 locations in Europe and overseas. The four German locations include the production facilities in Würzburg and Berlin as well as the development offices in Nuremberg and Oldenburg. 

Other production sites are located in La Suze in France, Trut­nov in Czech Republic, Budapest in Hungary, Gainesville in USA, Reynosa in Mexico, Salto in Brazil as well as in Shanghai, Zhangjiagang and Changchun in China. Including the new future business segment of “electric motors”, Brose will achieve a consolidated business volume of 3.1 billion euros. This will make the company founded by Max Brose in 1908 the fourth-largest family company in this industrial sector..

Edag’s subsidiary, Edag Sigma Concurrent Engineering GmbH, Hamburg, has bought the Luhmann Ingenieur AG. With this, Edag continues its growth trend, securing its position as a strategic engineering partner to the international aerospace industry. Since November 2004, Edag and Luhmann have been working together successfully in a joint venture under the name of Elan. The JV has shown that Edag's traditional strength in the development of structural components for fuselages and Luhmann’s expertise in cabin development complement each other perfectly. 

With the takeover of Luhmann Ingenieur, further synergies are expected from the cooperation with Albert Mühlenberg Apparatebau GmbH & Co. KG. Said Udo Burggraf, managing director of Edag Sigma, "With Mühlenberg as a producer of cabin interiors and LÜHMANN as a cabin developer, EDAG consequently follows its strategy to become a module supplier". 

With the Elan joint venture, the EDAG Aerospace business unit had already taken the important step to achieve the status of "national strategic supplier for Airbus" in 2005. Given the fact that Airbus and its parent company Eads are pressing for greater supplier consolidation, this takeover is a major step towards securing the future of the two companies and adding to their chances of growth.

In a bid to globalise the Indian subsidiary of Italian auto major Piaggio will set up an engine plant at Baramati near Pune, in India. The Indian subsidiary, Piaggio Vehicles Private Limited (PVPL) was set up in 1999 and is currently engaged in the manufacture of Ape three-wheelers and Ape Truk four wheelers. Piaggio, which has under its wings famous European brands like Vespa, Aprilia, Moto Guzzi, Gilera and Derbi reached an agreement with Daihatsu recently. The agreement extends co-operation in light transport vehicles to provide for the supply by Daihatsu of powertrains (1300cc petrol) for the current Piaggio Porter range and further co-operation relating to the supply by Daihatsu of parts, components and assemblies for the new models in the Porter and Quargo range mounted with the new small displacement, twin-cylinder diesel engines that will be produced in India by PVPL. 

While stating that the company’s strategy is to be global, Roberto Colaninno, chairman and CEO of Piaggio & C.s.p.a, announced that the Indian subsidiary will make 1000cc NA and 1200cc TDi diesel engines at Baramati. Piaggio is investing Euro 65 million in the development and industrialization of the engines and the construction of the plant. A new engine plant near the existing one, which makes the Ape three wheelers and four-wheelers will be constructed to build these engines. While Daihatsu is expected to help Piaggio in the development of these engines, the Italian auto giant has also entered into agreement with Greaves Cotton to continue the supply of single cylinder BS III diesel engines to PVPL and with Lombardini for the supply of 482cc diesel engine mounted on the Ape Truk. Stressing on an increased focus on Asia Pacific and Piaggio’s operations in China, India, Japan, Vietnam and Singapore, Colaninno added that expects Asia's contribution to total sales at 30-35 per cent by 2010 from about 20 per cent now. The Asia-Pacific region offers immense opportunity and we are very positive about our growth in these markets”. 

About India, Colannino said, “We want a bigger share of the market and make India a manufacturing hub for Piaggio's worldwide operations. Piaggio will build a new two-wheeler facility, and double its three-wheeler capacity to 200,000 units over the next two years. It will also extend its 100,000-unit four-wheeler capacity to make other sub-two tonne vehicles”. Stating that the company wants to expand its market reach from sub 1-tonne four-wheeler to sub 2-tonne, Ravi Chopra, managing director of PVPL, added, “We are therefore setting up a new production line for 1000cc and 1200cc twin cylinder diesel engine at Baramati”. 

With near 100 per cent localization the engines are expected to roll out by 2009. Piaggio is also planning to launch the Vespa gearless scooters in India by 2010. The new plant at Baramati is therefore also expected to make 150,000 scooter engines in addition to 50,000 diesel engines. The Italian giant is also contemplating hybrid technology that is employed in its products in Europe. This technology could be further expanded to the three-wheeler range. While commenting on hybrid technology, Colannino remarked that Italy and India can work together. “We are exploring the opportunity to set up an R&D facility in India”. 

Currently the Baramati plant build up to 500 Apes a day. PVPL, which started started with the production of 1800 units in 1999 produced 180,000 three-wheelers and 24,000 four-wheelers in the year 2007. By 2010 the company is planning to produce 200,000 three-wheelers, 36,000 four wheelers and 150,000 two wheelers. Speaking about Piaggio’s ambitions in the Indian market, Chopra said, “PVPL is young and growing. It is the second largest manufacturer of three wheelers in India and wants to be number one”.

Savi Technology, a Lockheed Martin [NYSE: LMT] company, and India-based AVAANA™ have entered into a strategic partnership for active Radio Frequency Identification (RFID)-based supply chain solutions, products and services to prospective government and commercial customers in India. The partners announced on 23rd Jan 2008 that they have signed an exclusive teaming and marketing agreement focused on markets in India. The regional partnership was developed to leverage the technology expertise and geographic knowledge base of the two companies in delivering state-of-the-art, real-time solutions that enhance the visibility, management, security and efficiency of supply chains in India, especially in the government, defence, homeland security and transportation sectors. 

AVAANA™ will provide Savi’s range of innovative and proven active RFID services and technology products, and will collaborate with Savi to deliver Savi’s customised active RFID-based solutions that are mission-critical to customers. 

“The powerful synergies created by the Savi-AVAANA partnership in India will help deliver leading-edge supply chain and infrastructure solutions to one of the world’s largest and most rapidly growing economies,” said Bruce Jacquemard, Savi’s Managing Director of International Business. “AVAANA’s proven RFID experience, technology expertise, innovation, and relationships make it the perfect partner for Savi in the India marketplace.” 

“There is tremendous interest in India to capitalize on the proven benefits of active RFID, and Savi Technology clearly has distinguished itself as a world leader and innovator in this field,” said Bimal Sareen, chief executive officer of AVAANA. “From defence and homeland security to transportation and port infrastructure, the opportunities to apply active RFID solutions with Savi in India are diverse and vast.”

Sona Group company, Sona Okegawa Precision Forgings Ltd, (a JV between Sona Autocomp Holdings and Mitsubishi Materials, Japan), has announced that it has entered into an agreement to buy ThyssenKrupp Präzisionsschmiede GmBH, a subsidiary of ThyssenKrupp Technologies A.G. (a Euro 51 Billion Group). ThyssenKrupp Präzisionsschmiede GmBH is a Euro 291million (Rs. 1740 Crores) company with 1750 employees and has 3 plants in Germany and 1 plant in the USA. 

The acquisition will be completed in the last week of January 2008. After acquisition, The Sona Okegawa Group will become the largest precision forgings group in the world. Besides Precision Forgings the European plants produce Heavy Duty vehicles products as well as cold forged Hatebur parts. The Sona Okegawa Precision Forgings Group will have in all 6 plants : 2 in India, 3 in Germany and 1 in USA, thus creating a global footprint to service customers. The major customers of the European operations are Daimler Chrysler, Volkswagen, GM, Renault, BMW and ZF Lemforder.

At the special session on Auto Sector; Partnership Summit 2008, Gurgaon, Haryana, organised by Confederation of Indian Industry, Pawan Kant Munjal, Past Chairman, CII Northern Region & Managing Director & CEO, Hero Honda Motors Ltd who delivered the key note address mentioned, “India has the potential to be a global automotive power. However, concerted efforts will be required to take auto manufacturing to a self-sustaining level”. 

Gerry Fedchun, President, Automotive Parts Manufactures' Association mentioned that he is leading a 15 member delegation to India that is interested in collaborating with Indian Industry for education and technical services. The various options of collaborating could be new Joint ventures, Acquisitions, Equity Swap, Investments, License agreements, etc. “We need to have partnerships whose progress benefits everyone”, he further mentioned. 

The summit comprised leaders from various automotive manufacturing industries. Rajeev Arora, Managing Director, HSIIDC emphasized that all manufacturing facilities need to move out of urban centres to other industrial places that are closer to NCR. 

“There are ample growth opportunities available, but only partnerships and alliances across the world can ensure a growth that remains profitable”, said Sharad Verma, Partner (Auto Practice), Boston Consulting Group stressing upon the theme of the Partnership Summit 2008. 

While welcoming the delegates, Deep Kapuria, Chairman, CII (Northern Region) & Chairman & Managing Director Hi-Tech Gears Ltd, mentioned that Indian Auto sector is an essential part of the economy and is contributing significantly to country's sustainability and inclusiveness through adopting ITIs. 

Sanjay Labroo, President, ACMA & MD & CEO, Asahi India Glass Ltd while concluding the session mentioned that inclusiveness is not just a social concern any more but has become a business necessity. “We need to make sure that everyone is benefited through the boom of economic growth in India”, He mentioned.