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Automotive News World Congress
What’s the status of the China automotive industry and where are the opportunities for
growth?
Robert J. Remenar President and CEO, Nexteer Automotive
Company Profile ! Global Headquarters: Saginaw MI ! 2011 Revenue: $2.2B ! 10,000+ global employees (as of Dec 2011) ! Products:
! Electric Power Steering, ! Hydraulic Power Steering, ! Steering Columns, Halfshafts
! Global Customers: ! 60+, GM, Ford, Chrysler, Fiat, BMW,
Toyota, PSA Peugeot-Citroen and India-China OEM’s!
What PCM Bought
" Support Nexteer’s growth as a premier steering & driveline supplier – capture more of untapped global and Chinese share
" Capitalize on conversion to EPS
" Chinese domestic parts suppliers lagging
" Build a global reputation in critical, green products
Business Thesis
!"#"$
! HQ moved to China
! Production shipped to China
! Investment only in China
! IP, engineering moved to China
! Management out
!"##$
! HQ remains local Employment up
! Balanced investment globally
! R&D HQ remains local Engineering up 30%
! Management remains
! Global production jobs added
Year One: Perception vs. Reality
" Chinese are not mysterious, not different - Needs are the same
PROFITABLE GROWTH
BUSINESS EXCELLENCE
Year One Lessons
" Committed to the industry and success
" Bring knowledge, capital and better access to new markets
" Learning from each other - and how to communicate with one
another
" Investment helped save Nexteer
Chinese Investment Here To Stay
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“China Autos: Transition to an Innovative Industry”
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2012 Automotive News World Congress
Jack Perkowski
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ASIMCO Technologies – at a glance
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Products for Commercial Vehicles
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JFP Holdings Ltd. “A Merchant Bank for China”
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Access to Capital:
Getting the Strategy Right:
Implementation:
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Transition from “Made in China” to “Designed in China.”
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Overview of China’s Position
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WTO Entry: A Key Inflection Point Three Phases of China’s Domestic Automotive Industry Growth (Units in millions of vehicles)
* Refers only to cars; excludes SUVs, MPVs, and crossover vehicles
Local Assemblers Are Gaining Market Share
Passenger Car Market Shares in China* (by origin of technology)
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Conventional Vehicles: Only the Tip of the Iceberg
V E H I C L E S / T R A N S P O R TAT I O N
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C O N C L U S I O N S
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CHINA MARKET
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Chinese Assemblers: International Expansion
! China’s exports of vehicles increased by 53% to 867,000 units in 2011
! Great Wall
! Chery
! Brilliance
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! Major export markets: Southeast Asia, Middle East/North Africa, Russia and Poland
! Chery is exporting to 64 countries
Egypt, Iran, Malaysia, Russia, Indonesia, Vietnam, Senegal, Bulgaria, Venezuela, Philippines
Egypt, Iran Malaysia
Egypt, Iran, Malaysia, Russia, Ukraine
Summary of Major Trends
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