Electric power steering supplier Nexteer says it is on course to double its business by the end of the decade under new Chinese owners PCM.
Speaking at the recent Automotive News World Congress in Detroit, Nexteer CEO Bob Remenar gave the upbeat assessment as the component manufacturer looks to build on its current US$2.2bn operations.
Go deeper with GlobalData
“We were challenged by our new owners [PCM] as to what they wanted us to be,” Remenar said. “We are on the way to doubling our business by the end of the decade. There is a tremendous opportunity for steering growth and with the conversion of hydraulic to electric.
“China domestic parts were really not up to the same standards as other global manufacturers of automotive components. Nexteer was a way to catapult China up to the next level of technology.”
The Nexteer chief conceded there had been some “scepticism” when the Chinese takeover happened, but noted the steering wheel business had added 20% to its salaried workforce with positions remaining in the US, while investment would be added.
“Not one job has been moved to China and in fact we added to our workforce around the world [and] in Michigan [while], the Chinese embraced our UAW members,” said Remenar. “Many thought management would be replaced, but the good news [is] it has not, so I had better make sure I am hitting the numbers.
“We will probably spend up to US$500m in two years in investment. We are growing everywhere, but you have to balance where you deploy your capital.”
Remenar highlighted the fact Nexteer’s bankers “were not that familiar” with PCM, but all parties were learning about different ways to do business.
“The Chinese are here to stay,” he added.
