Magneti Marelli will invest some USD35m to expand its automotive lighting production capacity in the US, by converting an existing company plant in Independence Township (Oakland County, Michigan) into a facility dedicated to the production of headlamps.

It says the new plant layout and activity will create more than 360 jobs over five years.

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Automotive Lighting, the subsidiary of Magneti Marelli, devoted to the automotive lighting sector, reports that it is seeing growth in the NAFTA region and that the new investment satisfies the need to serve local customers in the Michigan area.

“The US market is becoming more and more important for Magneti Marelli,” said Pietro Gorlier, CEO of Magneti Marelli. “This investment enables a more powerful production platform for the lighting business, supporting in the best way possible our local customers in the Michigan region.

“It reaffirms our commitment and trust in the Michigan industrial and economic system, where we have our regional Headquarters, an R&D centre and we employ about 380 people”.

Automotive Lighting develops, manufactures and sells automotive exterior lighting products for all major OEMs worldwide.

As a result of the expansion, the company has been awarded a USD2m Michigan Business Development Program performance-based grant. Independence Township has offered support to the project in the form of property tax abatement.

LED headlamps in NA a high growth area

LED headlamps are a growth area in automotive lighting. According to just-auto’s research platform, QUBE, some  3.35% of all new vehicles in North America are estimated to have been fitted with OE front LED lighting systems in 2016 (Western Europe slightly higher at 7.25%). However, US fitment is forecast to almost treble to 9% by 2020; by the early 2030s more than 40% of NAFTA produced vehicles are expected to be fitted with full LED headlamps.

Global automotive OE lighting market – forecasts to 2031

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