Magneti Marelli, Fiat Group’s wholly owned parts subsidiary, is pushing forward with ambitious plans to boost revenue to US$1 billion in North American by 2014.
Despite Marelli’s plans seeing him meet the 2014 target of US$9.45 billion in sales set by Fiat’s CEO Sergio Marchionne, Fiat’s control of Chrysler doesn’t guarantee Marelli will win Chrysler orders.
Magneti Marelli CEO, Eugenio Razelli, says contracts won for lighting, instrument panels, shock absorbers and infotainment modules for the Fiat 500 to be built in Mexico, put the supplier in a greater position than ever before to win Chrysler’s orders.
“Now we have more chances than before, but we will get the orders only if we design the best products, offering them at the most competitive cost and with the required quality level,” says Razelli.
Marelli, which also supplies the engine management control unit for the 1.4-litre MultiAir Fiat engine Chrysler, will bid for the lighting, instrument panels, infotainment and exhaust systems contracts for the 2013 replacements of the Dodge Avenger and Chrysler Sebring, which will be built on Chrysler’s Compact Wide architecture.
If Marelli succeeds in luring Chrysler’s business, its 2014 sales to Chrysler could total $700 million, a far cry from the $10 million it did in business with Chrysler last year.
While Marelli is not looking to expand its manufacturing footprint in the USA, it is eager to pursue lighting contracts worth $300 million by 2014 with automakers GM, Ford, VW, BMW and Daimler AG and telematics modules for the Ford F-150 pickup.
Source: Automotive News