Brazilian engine manufacturer, Tritec Motors, is finding new customers in China that will help ensure its future when its engines are no longer needed by BMW for the Mini.
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Tritec Motors is a joint venture between DaimlerChrysler and BMW.
It was set up at the end of the 1990s at an investment of US$484m to supply small gasoline engines to both those companies.
However, demand from both companies has declined. Chrysler originally needed the engines for the PT Cruiser but soon after the start of production at Tritec, Chrysler was acquired by Daimler-Benz giving it access to small gasoline engines from Mercedes.
BMW originally needed Tritec engines for the Mini but the second generation model that is being launched this year will source small gasoline engines from its own under-utilised engine plant in the UK (Hams Hall).
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By GlobalDataIn 2006 Tritec will have produced around 200,000 engines, or around half of its installed capacity, according to Brazilian automotive industry analysts, Autodata.
This is up on previous years thanks to new contracts with Chinese vehicle manufacturers. Chinese models fitted with Tritec engines inlcude the Chery A15 and the Lifan 520, according to Autodata. Negotiations are also underway to supply two models from FHAC Hainan.
According to Autodata, a Tritec executive has said that there is also the possibility that the engines may be supplied to local OEMs, and that negotiations are underway with a number of manufacturers, one of which Autodata concludes is likely to be PSA. The engines would be attractive to South American assemblers because they have 77% local content.
In the past there have been rumours that Tritec is up for sale. In March this year it was reported that Russia’s two largest vehicle manufacturers, GAZ and AvtoVAZ, have held discussions with the company’s owners about acquiring the plant. China’s Lifan Group has also been reported as having an interest in acquiring the facility.
