“Nexteer’s very aggressive global growth requires increased oversight on a global level,” said Remenar.  “Laurent not only has a proven success record in managing our major customer relationships around the world, but he has also demonstrated his operational capabilities in the European, Asia-Pacific and South American regions.  His tireless dedication to the business is a tremendous asset.”

In his new role, Bresson will continue to be responsible for global sales, but will take on the additional role of managing day-to-day activities of the company’s divisional and product groups.  Divisional and regional executives will now report to Bresson, aligning the company to better leverage efficiencies, improve launch capabilities and identify growth opportunities.

Bresson, 40, was senior vice president and international division chief operating officer, responsible for all activities in Australia, India, Korea, Mexico, Brazil and Europe.  Prior to that assignment, he was vice president, global sales and marketing, European region where he was responsible for overseeing global sales. He was first given global responsibility in 2009 and has previously held various positions in engineering, project management and sales for several Delphi divisions as well as various sales positions at Nexteer.

Currently located in Paris, France, Bresson will relocate to Nexteer’s headquarters in Saginaw, Michigan.

ABOUT NEXTEER

Nexteer Automotive is a multi-billion dollar global steering and driveline business solely dedicated to electric and hydraulic steering systems, steering columns and driveline products for original equipment manufacturers.  Its 9,800 workforce serves more than 60 customers in every major region of the world.  The company has 20 manufacturing plants, five engineering centers and 15 customer service centers strategically located in North and South America, Europe and Asia.  Nexteer Automotive’s customers include GM, Fiat, Ford, Toyota, Chrysler and PSA Peugeot Citroen, as well as automakers in India, China, and South America.

www.nexteer.com

CONTACT:

Luis Canales
Nexteer Automotive
Director of Global Communications
989-757-3086 (office)
luis.canales@nexteer.com

Max Muncey
The Quell Group
248-649-8900 (office)
248-952-7094 (cell)
mmuncey@quell.com

SAGINAW, Mich. – Nexteer Automotive, a tier one automotive supplier committed exclusively to wheel-to-wheel advanced steering and driveline systems, today announced that its halfshaft business jumped nearly 13 percent last year and continues to grow in 2012 due to new business wins and increased customer demand. Nexteer’s halfshaft business recorded revenue of nearly $440 million in 2011

“Halfshafts are part of the heritage of our company and continue to be a driving force in our global success,” said Robert J. Remenar, president and CEO of Nexteer. “These are performance-critical parts and require the same level of engineering and manufacturing quality that Nexteer has become known for over its 100-year history.”

Building on recent successful years of global growth and record new business bookings, Nexteer is focused on the development, production and delivery of more than 21 halfshaft program launches globally throughout 2012. In the U.S., the company has five halfshaft product launches, including the 2013 Cadillac XTS and Chevrolet Malibu. This is in addition to three U.S. halfshaft launches in 2011 for the Buick Verano, Chevrolet Impala and Ram 1500. Together these programs will employ more than 160 production workers at Nexteer’s Saginaw operations.

While the company has been traditionally known for its advanced steering systems, it prides itself on nearly 50 years of experience innovating and producing one of the most technologically advanced halfshafts in the world.

“Nexteer’s highly-skilled engineering and manufacturing team in Saginaw has developed and produced a product that is in strong demand around the globe,” said Vince De Zorzi, senior vice president, chief operations officer, and driveline business unit director for Nexteer. “Our employees and facilities are at full capacity to assist our customers with perfect program launches.”

Nexteer’s halfshaft products fill the important role of transmitting torque at constant velocity within two-, four-, and all-wheel driveline configurations. The company’s halfshaft products are designed for enhanced passenger comfort, reduced weight and improved fuel economy while delivering superior warranty performance. Nexteer utilizes its advanced analysis techniques and history of vehicle integration to stay at the forefront of new product development to meet industry needs of reduced weight and improved noise and vibration characteristics.

Nexteer offers customers a full halfshaft product offering including front, and rear halfshafts as well as propeller shaft joints and intermediate driveshafts. For more information on Nexteer’s complete product portfolio, please visit www.nexteer.com/technology.

ABOUT NEXTEER

Nexteer Automotive is a multi-billion dollar global steering and driveline business solely dedicated to electric and hydraulic steering systems, steering columns and driveline products for original equipment manufacturers.  Its 9,800 workforce serves more than 60 customers in every major region of the world.  The company has 20 manufacturing plants, five engineering centers and 15 customer service centers strategically located in North and South America, Europe and Asia.  Nexteer Automotive’s customers include GM, Fiat, Ford, Toyota, Chrysler and PSA Peugeot Citroen, as well as automakers in India, China, and South America.

www.nexteer.com

CONTACT:

Luis Canales
Nexteer Automotive
Director of Global Communications
989-757-3086 (office)
luis.canales@nexteer.com

Max Muncey
The Quell Group
248-649-8900 (office)
248-952-7094 (cell)
mmuncey@quell.com

PARIS – Nexteer Automotive has developed an innovative electronic architecture for its electric power steering (EPS) systems that will make integration of new electronic features faster and provide greater functional safety. The architecture gives manufacturers a single, customizable 12-volt platform for all passenger vehicle types, from low-cost micro-cars to the highest-specification luxury SUVs.

“The industry’s migration from hydraulic to electric power steering as a key part of CO₂ reduction strategies has led to record orders for Nexteer’s premium-feel EPS technology in the past two years,” said Laurent Bresson, Vice President Global Sales and Marketing and Chief Operating Officer International Division. “The new architecture’s ability to deliver higher rack forces and customized electronic functions will help EPS migrate into new applications, creating further growth for Nexteer and exciting career opportunities for our expanding team.”

“The architecture will enable manufacturers to introduce new, increasingly complex steering functions,” said Bertram Moeller, Network leader Systems Engineering Europe, Nexteer Automotive. “Instead of using standardized architectures for different vehicles classes, Nexteer’s single, highly flexible architecture adapts to suit individual customer requirements and future-proof platforms. The architecture also allows us to provide more power to the EPS, so that it can steer any passenger vehicle using a standard 12-volt supply.”

Development of electrical architectures for EPS is driven by a number of related factors. The introduction of new functional safety standard ISO 26262 is a major driver with compliance made more important after recent high-profile competitor product recalls. The introduction of the Autosar standardized software architecture also increases CPU memory requirements. At the same time a rise in the number of more complex functions, such as lane-keeping assistance, where multiple systems communicate, has increased the need for new communication structures, such as dual CANbus and FlexRay.

“Whereas a few years ago, customer specification sheets contained just two or three steering functions, a list of 20 is now common,” said Moeller. “To provide the substantial increase in processing power needed, Nexteer is using a new family of ISO 26262-compliant dual-core processors scalable in memory to 10 times than today with much higher processing speed. The first full implementation of the new electrical architecture enters production in 2013.”

Steering, along with the brake system, is a safety-related vehicle system. It is also the primary interface with the vehicle and road surface. Nexteer’s in-house software expertise enables it to deliver complex functions based on electronic control of the motor and its diagnostics that improve the driving experience and vehicle performance.

“Functions such as pull compensation, which keep the steering straight on crowned roads, and wheel imbalance rejection, which filters uncomfortable wheel vibrations, have significantly reduced warranty issues for Nexteer customers,” added Moeller. “The new architecture provides the processing power, functional safety, robust vehicle communication and standardized software required to introduce further functions such as lane-keeping assistance that coordinate with other vehicle systems. This intelligent approach will make it simpler for OEMs to offer customers new functions throughout vehicle lifecycles.”

The new architecture is fully scalable. At the entry level, a simplified control platform offers a low-cost system for economy cars and emerging markets, with the flexibility to add more sophisticated features for future models. For premium platforms, the modular nature of the architecture allows a high level of feature flexibility to enable a wide range of options and a development path into the future.

The introduction of the new architecture will integrate compliance to the ISO 26262 standard into Nexteer’s core development process and hardware design, making the development of new functions and the fulfillment of customer requirements faster.

Nexteer Automotive electric power steering and electronic architecture (2362 × 1670, 608KB JPG)

ABOUT NEXTEER

Nexteer Automotive is a multi-billion dollar global steering and driveline business solely dedicated to electric and hydraulic steering systems, steering columns and driveline products for original equipment manufacturers.  Its 9,800 workforce serves more than 60 customers in every major region of the world.  The company has 20 manufacturing plants, five engineering centers and 15 customer service centers strategically located in North and South America, Europe and Asia.  Nexteer Automotive’s customers include GM, Fiat, Ford, Toyota, Chrysler and PSA Peugeot Citroen, as well as automakers in India, China, and South America.

www.nexteer.com

CONTACT           

Nexteer Automotive:

Press inquiries
Tristan Honeywill
Market Engineering
Tel: +44 1295 277050
Mob: +44 7870 211887
tristan.honeywill@m-eng.com

Commercial inquiries
Sandrine Fallet
Nexteer Automotive
Tel: +33 6 86 07 72 01
sandrine.fallet@nexteer.com

SAGINAW, Mich. – Nexteer Automotive is proud to announce that Odie Pruitt III, site maintenance manager; David Smith, maintenance team leader and Sheldon “Snap” Matthews, a lean specialist contractor at Nexteer, have been recognized by the Detroit Pistons “Come Together” program, which celebrates community champions from across the state.

When a co-worker, Diana Templeton, lost her home in Vassar to a devastating fire in February, they organized a group of colleagues and friends to help raise funds and collect goods for the family.  Matthews, a Saginaw resident and longtime Detroit Pistons season ticket-holder assisted by reaching out to the Pistons organization to help with their efforts. These individuals are a perfect example of community champions, individuals who selflessly go above and beyond to help those in the community. They held a pancake breakfast benefit, a popcorn giveaway and an auction that included items donated by the Detroit Pistons – and their efforts are ongoing.

Templeton, her husband and four daughters are living in a mobile home while their house is rebuilt. Unfortunately, the Templeton’s insurance didn’t cover the contents of their home and the family needs to replace all of their clothing, appliances, furniture and additional items. That’s where the team at Nexteer stepped in to help.

“We are extremely pleased that the Detroit Pistons are recognizing the hard work and time the Nexteer team put into organizing efforts to assist Diana and her family,” said Vince DeZorzi, senior vice president and chief operations officer at Nexteer. “Nexteer employees have always come together to assist a colleague in need and they take great pride in making positive contributions to their local communities. It’s this family culture that sets Nexteer apart and makes it an ideal company to work for.”

To honor Pruitt, Smith, and Matthews as part of the Detroit Pistons “Come Together” program, the team will be providing tickets, parking passes and discounted concessions and merchandise vouchers for Nexteer volunteers who are assisting with the fundraising and goods collecting for the Templetons. The group will attend the Pistons vs. Chicago Bulls game on Sunday, April 15, where they will be recognized at halftime for their outstanding efforts. Diana Templeton and her family will be attending the game as well.

Nexteer worked with the Detroit Pistons to establish a special “Templeton Family Fund” account through PNC Bank, the Detroit Pistons presenting sponsor. Anyone wishing to make a donation to help the family can visit any PNC Bank branch.

The Detroit Pistons encourages nominations of worthy individuals or groups to be honored in its Come Together program. Those chosen will be invited to a future Detroit Pistons game to receive their honor. Nominations can be submitted by visiting the team’s “Come Together” website at www.pistons.com/cometogether and filling out the online form.

Watch this video on YouTube.

ABOUT NEXTEER

Nexteer Automotive is a multi-billion dollar global steering and driveline business solely dedicated to electric and hydraulic steering systems, steering columns and driveline products for original equipment manufacturers.  Its 9,800 workforce serves more than 60 customers in every major region of the world.  The company has 20 manufacturing plants, five engineering centers and 15 customer service centers strategically located in North and South America, Europe and Asia.  Nexteer Automotive’s customers include GM, Fiat, Ford, Toyota, Chrysler and PSA Peugeot Citroen, as well as automakers in India, China, and South America.

www.nexteer.com

CONTACT           

Nexteer Automotive:
Luis Canales
Director of Global Communications
989-757-3086 (office)
luis.canales@nexteer.com                       

Max Muncey
The Quell Group
248-649-8900 (office)
248-952-7094 (cell)
mmuncey@quell.com

SAGINAW, Mich. – Nexteer Automotive, a tier one automotive supplier committed exclusively to wheel-to-wheel advanced steering and driveline systems, today announced it will provide the 2013 Ram 1500 with its 12-volt electronic power steering (EPS) system. Nexteer’s highly acclaimed 12-volt EPS system not only improves fuel economy, but enhances handling and steering feel as well.

“The 12-volt EPS system featured on the 2013 Ram 1500 is truly a significant technology milestone for Nexteer,” said Mike Richardson, senior vice president of global steering business unit and chief technology officer at Nexteer. “This industry-leading technology has led the way for Nexteer’s EPS systems to be standard on more than 90 percent of North American full-size pickups by 2013.”

Nexteer was first to market in 2010 with a 12-volt, high-volume EPS technology for the full-size pickup truck segment. The company’s EPS system offers the largest rack-load available in a 12-volt system.

EPS is a crucial technology for automakers as they strive to meet the 2016 Corporate Average Fuel Economy (CAFE) regulations. Additionally, EPS systems can integrate with other on-board electronics to improve overall safety and driving performance. Since EPS tuning is software based, the vehicle’s steering characteristics can be programmed and customized to each model based on automakers specific requirements.

“Our EPS system is rapidly becoming the steering system of-choice for global automakers for its advanced capabilities and cost-effective solutions for a full range of vehicle segments, sizes and classes,” added Richardson. “From compact cars to full-size trucks, Nexteer’s EPS systems will be steering the global automotive market.”

Nexteer booked nearly $10 billion worth of new business over the past two years. In 2011, EPS accounted for 60 percent of new customer contracts. The demand for EPS will continue to grow, paving the way for Nexteer to become the North American EPS market leader by 2016.

Since 1999, Nexteer has put more than 17 million EPS systems on the road globally, saving more than 1.5 billion gallons of fuel.

ABOUT NEXTEER

Nexteer Automotive is a multi-billion dollar global steering and driveline business solely dedicated to electric and hydraulic steering systems, steering columns and driveline products for original equipment manufacturers.  Its 9,800 workforce serves more than 60 customers in every major region of the world.  The company has 20 manufacturing plants, five engineering centers and 15 customer service centers strategically located in North and South America, Europe and Asia.  Nexteer Automotive’s customers include GM, Fiat, Ford, Toyota, Chrysler and PSA Peugeot Citroen, as well as automakers in India, China, and South America.

www.nexteer.com

CONTACT           

Nexteer Automotive:
Luis Canales
Director of Global Communications
989-757-3086 (office)
luis.canales@nexteer.com                       

Max Muncey
The Quell Group
248-649-8900 (office)
248-952-7094 (cell)
mmuncey@quell.com

PARIS–Nexteer Automotive’s European Headquarters and Customer Support Center near Paris has been ranked number five in the top 50 employers in France by the Great Place to Work Institute. The Institute conducted two surveys, one analyzing company culture, human resource policies and procedures as well as management practices, the other one surveying employees’ opinions. The surveys measure five trust-building factors that create a great workplace: credibility, respect, fairness, pride and camaraderie.

“It’s good to receive independent recognition of how well we work together,” said Pascale Ruiz, Nexteer’s Human Resources Director for Europe. “As a supplier of advanced steering technologies, Nexteer needs perfect quality and a high-performance culture to deliver them. We base our culture on four core values: clarity of purpose, robust dialogue, a sense of urgency and strong relationships. The result is a working environment that our employees – and the Great Place to Work Institute – say has a real family spirit.”

All of Nexteer’s Paris employees took part in the Great Place to Work survey, volunteering their opinions about their organization: 94% rated Nexteer as a great place to work. Staff highlighted the conviviality of the company and pride in belonging to the Nexteer family. Assignments abroad and daily work with international teams were another source of motivation and satisfaction, with the mix of cultures at the company also valued highly by people.

“Nexteer’s objective is to become a benchmark company for the automotive industry,” said Laurent Bresson, Nexteer’s Senior Vice President and Chief Operating Officer International division and Global Sales. “A working environment where good ideas progress more quickly and innovation thrives is what supports dynamic growth. Orders for our electric power steering systems have reached record levels – and provide a source of further motivation for us all, bringing fresh challenges but without the pressure for fast results.”

Nexteer has undergone significant change in recent years. Now an independent Tier One supplier, specializing in driveline and steering systems, the company has won more than $6 billion of future orders since it was established in 2010. 

Q&A with Laurent Bresson, Senior Vice President & Chief Operating Officer International division and Global Sales

What makes Nexteer a great place to work?

Great companies have great camaraderie. Nexteer underwent a lot of change in recent years: it’s a new brand with energy, but also a company with a century of history and an established reputation in the industry.

Everybody here has always been open and direct with each other and I think the changes have pulled us even closer together. Everybody here understands that they play a part in Nexteer’s success and in winning new business; Nexteer empowers all employees to act as owners of the company, to use their unique skills and abilities.

An important factor is that Nexteer does not hesitate to entrust junior employees, to allow them to grow up, to develop their potential and build up their experience. This is one of the keys to ensuring Nexteer’s success: to know how to make sure everyone brings their value to the company.

Of course, it also helps that Nexteer has some great technologies, global career opportunities and challenging projects.

How important is clarity of purpose?

Clarity of purpose is critical. The steering system is a significant factor in how a car feels to drive and Nexteer has been pioneering the introduction of electric power steering since the first mass-market application in 1999. Everybody understands that we’re committed to delivering the highest quality and that we take seriously any suggestion on how to do things better still.

The result is a team that produces results that customers respect. To get to this result, clarity of purpose is key: it allows everyone to understand very precisely what he/she has to do to implement the company’s strategy at their own level, and as a consequence, to make the difference.

How would you describe Nexteer’s corporate culture?

The key thing is that everybody at Nexteer is encouraged to speak their mind freely. Having people who are free to offer ideas and criticism is what gives us the continuous improvement that benefits our employees, products and customers alike. It also means we attract the right people when we recruit – we get applications from people looking for opportunities to learn and develop their careers, knowledge and skills.

We also put a lot of emphasis on offering global career opportunities. It’s really important that even the junior members of the team have the chance to build experience in this way. Working on challenging projects around the world alongside people from the leading car manufacturers creates enormous growth opportunities for individuals and our company.

Creating these chances for people to move around the organisation, promoting or helping them to work in different areas also helps the company to keep in touch with employees’ ambitions and capabilities. It also ensures that employees learn more about the company’s needs and objectives.

The Great Place to Work award demonstrates that our company’s culture is just right. It’s a subtle mix of soft and hard values: strong relationships, robust dialogue, a sense of urgency, and clarity of purpose. These values strengthen the indispensable link between superior execution and care for our people. We drive financial results while valuing the people who deliver the performance.

ABOUT NEXTEER

Nexteer Automotive is a multi-billion dollar global steering and driveline business solely dedicated to electric and hydraulic steering systems, steering columns and driveline products for original equipment manufacturers.  Its 9,800 workforce serves more than 60 customers in every major region of the world.  The company has 20 manufacturing plants, five engineering centers and 15 customer service centers strategically located in North and South America, Europe and Asia.  Nexteer Automotive’s customers include GM, Fiat, Ford, Toyota, Chrysler and PSA Peugeot Citroen, as well as automakers in India, China, and South America.

www.nexteer.com

CONTACT           

Sandrine Fallet
Nexteer Automotive
Tel: +33 6 86 07 72 01
sandrine.fallet@nexteer.com

SAGINAW, Mich. — This struggling city, staggered by a flurry of blows during the recession, is getting a lift from an unlikely place.

Nexteer Automotive, Saginaw’s biggest remaining industrial employer, was on the verge of closing less than three years ago, its 3,000 or so jobs in danger of evaporating, when the Chinese showed up. “If their money helps rebuild the community, I’m cool with it,” says Mayor Greg Branch.

In 2010, Pacific Century Motors, controlled by Aviation Industry Corp. of China and Beijing E-town International Investment Co., an investment arm of the city of Beijing, bought the money-losing auto-parts maker from its corporate parent, General Motors Co., for about $450 million. With that, this city went from being an exhibit of America’s industrial decline to a case study in the impact of Chinese investment money on U.S. communities.

“There were a lot of concerns about the Chinese coming over and packing this place up” and moving the jobs to China, says Matt Beaver, a vice president of United Auto Workers Local 699. “People were really scared the Chinese would take the patents.”

Today, few people in town are wringing their hands about the Chinese. Inside a 59-year-old factory at Nexteer’s sprawling complex, contractors are ripping out antiquated machine lines and installing new equipment to produce an electronic steering system for the next generation of GM’s large pickup trucks and SUVs. The company, for years known as Saginaw Steering Gear, has hired more than 100 engineers in Saginaw last year and is looking for 80 more this year.

Nexteer is one of the largest U.S. industrial investments by a Chinese company. Chinese delegations are scouring the Midwest for more automotive deals. “We’re pretty close to seeing a flood of deals,” says Richard Walawender of Miller Canfield Paddock and Stone, a Detroit law firm that worked with Nexteer’s buyers.

Chinese state-owned and private enterprises are pouring investment money into the U.S., into industries such as auto parts, real estate, and oil and gas. Besides giving Chinese buyers a foot in new markets, the deals are giving them access to American technology and management techniques—know-how that, in some cases, they can use in Chinese markets.

Chinese direct investment in the U.S. is a fraction of what it is from many other nations, but it is growing rapidly. According to New York consulting firm Rhodium Group, which tracks Chinese investment in U.S. companies and real estate, such investment exceeded $5 billion in 2010, up from $146 million in 2003. Thilo Hanemann, Rhodium’s research director, says he expects Chinese investment to continue increasing.

Still, Chinese investors and managers may encounter obstacles as they learn how to do business overseas, Mr. Hanemann says. “The single biggest impediment to Chinese firms investing in the U.S. is the lack of capacity to operate in sophisticated and highly regulated economies,” he says.

The investments have raised concerns in some quarters about threats to U.S. jobs, American technological advantages and national security. U.S. regulators blocked a bid by China’s Huawei Technologies Co. to acquire 3Com Technologies in 2008 after lawmakers raised questions about whether the deal posed a security threat. Huawei has said it will cooperate with U.S. officials to allay concerns.

Monday’s U.S. visit by Xi Jinping, who is expected to become China’s next leader, is likely to focus attention on China’s complex financial relationship with the U.S.

The perceived economic threat posed by China remains a hot political issue, both in Michigan and nationally. Last month, lawmakers in several industrial states, including Sen. Debbie Stabenow, a Michigan Democrat, accused auto-parts makers operating in China of unfair trade practices that could threaten U.S. jobs. A Republican candidate for Sen. Stabenow’s seat aired a controversial ad during the Super Bowl, featuring a young Asian woman speaking broken English, which implied that Sen. Stabenow’s fiscal policies had allowed China to take American jobs.

Nevertheless, many politicians in the industrial Midwest are focusing on the potential upside of direct Chinese investment. In Michigan, which has lost tens of thousands of jobs as auto makers and parts suppliers shrank or moved operations to lower-wage countries, Gov. Rick Snyder and other officials are courting Chinese investment. So are Governors Scott Walker of Wisconsin and Jay Nixon of Missouri. Ohio Gov. John Kasich has said his state will help train workers for Chinese employers if they invest in a pharmaceutical operation in Toledo.

The Saginaw area, about 100 miles north of Detroit, was hit hard by the decline of Michigan’s auto industry. Saginaw County’s population fell 4.7% between 2000 and 2010, to just over 200,000. The median household income of $39,364 was 13% below the statewide average in 2009. Unemployment during the recent recession peaked in July 2009 at 13.4%.

Downtown Saginaw has suffered a long decline. Today it is a mix of stately old homes, many built during the city’s heyday as a lumbering center, and dilapidated houses and empty storefronts.

The roots of Nexteer, which assembles systems that connect the steering wheel to the front wheels, reach back to 1906 and a company called Jackson, Church and Wilcox Co. That company was purchased by Buick in 1909. By 1917 it had become GM’s first stand-alone parts-making division, and in 1928 it was renamed Saginaw Steering Gear. Saginaw and other parts-making operations were spun out of GM in 1999 as Delphi Corp.

In 2005, as problems mounted for the U.S. car industry, Dephi sought Chapter 11 bankruptcy protection and began a restructuring that called for slashing its U.S. manufacturing and shedding thousands of UAW union jobs.

Robert Remenar, who had led Nexteer since 2002, says Delphi management was determined to be rid of the operation. Mr. Remenar said he saw that as an opportunity. He says he anticipated a surge in demand for the company’s electronic-steering technology. Nexteer just needed to survive long enough to benefit.

That nearly didn’t happen. A planned sale to a private-equity group fell through. By 2009, Nexteer was back under GM ownership—part of a complex deal involving Delphi and the UAW. GM planned to either sell Nexteer or close it.

That September, Mr. Remenar met with GM’s senior management. He says he argued that liquidating Nexteer would cost GM money, weaken its access to technology and undercut relations with the UAW. Selling to one of Nexteer’s competitors, he said, would leave GM with fewer steering suppliers to choose from. Private-equity buyers also presented risks, he said.

At the bottom of a chart summarizing GM’s options, Mr. Remenar recalls, he highlighted a new idea: Sell to a “Chinese industrialist.” Mr. Remenar says he had no particular buyer in mind.

At the time, AVIC Auto, the auto-parts arm of state-owned Aviation Industry Corp. of China, was intent on breaking into the top ranks of global automotive-technology suppliers. It was in the market for a “high-end auto component company to acquire,” according to AVIC Auto Chairman Zhao Guibin. AVIC Auto hired investment banks and law firms and “sifted through some 50 potential targets in Japan, Europe and North America,” he says.

By mid-2010, Nexteer had emerged as a target. AVIC Auto knew “GM had to sell,” Mr. Zhao says.

The negotiating terrain was complex. GM had itself sought bankruptcy protection, and in the reorganization both the U.S. Treasury and the UAW had wound up with GM stakes. The White House was pushing to finish the GM overhaul and have an initial public offering of new GM stock by the end of 2010, the first step in ending government involvement.

To make Nexteer more attractive to potential buyers, UAW leaders already had agreed to labor concessions. Buyouts and early-retirement packages were offered to many workers. Nexteer then began hiring younger, replacement workers at a new starting wage of $12.50 an hour, less than half the level that prevailed a decade ago. That made labor costs competitive with nonunion shops in the U.S.

In exchange for the concessions, GM and the U.S. Treasury gave the UAW effective veto power over any buyer.

Selling union workers on the concessions hadn’t been easy, recalls Mike Hanley, a former UAW Local 699 president. “I had members say, ‘they’ll never shut this place down,’” he recalls. “I’d say, take a ride down M-46.” That road runs past a spot where 5,000 people used to work for Eaton Manufacturing. Those jobs are gone, and the factory was demolished in 2008.

In the end, two potential buyers surfaced: the Chinese group led by AVIC, and a Korean supplier, Mando Corp., allied with Hyundai Motor Co.

“We were really concerned about the Chinese at first,” says Cal Rapson, who was the UAW’s top negotiator at GM. The union worried that the Chinese would take Nexteer’s technology and eventually move jobs overseas. But the UAW also was wary of the Korean bidder.

Representatives of the two finalists approached Mr. Remenar with the same question: How do we win over the union? Mr. Remenar says he advised them to write letters to UAW leaders promising to honor the existing labor agreement.

The Chinese bidders responded that they were prepared to abide by the labor deal and to maintain Nexteer as an independent company and not move the work to China, according to Mr. Remenar. The Korean group never sent a letter, he says. A Mando representative declined to comment.

Mr. Rapson and other UAW leaders threw their weight behind the Chinese bid.

“We found the labor union to have a very long-term view,” says Mr. Zhao. “If you don’t work together to make a company more competitive, the company won’t have any future at all.”

GM announced in July 2010 that it was selling Nexteer to the Chinese group. The news release identified Mr. Remenar as president, leaving unclear who would be Nexteer’s chief executive officer.

Mr. Remenar hoped to continue running the company. But an aide to the new owners explained that wouldn’t happen immediately because he hadn’t met all of the new board members.

On a warm evening shortly after the deal was announced, Mr. Remenar and his new Chinese bosses gathered for a celebratory dinner at the Pine Lake Country Club in the northern suburbs of Detroit. The Chinese board members showed up with a box of wine and several bottles of moutai, a potent sorghum liquor that lubricates business dinners in China.

After rounds of wine and moutai—and very little talk about the business—Mr. Remenar excused himself. When he returned, he recalls, the Chinese directors greeted him with shouts of “Bob-O! You CEO! You do double!” He downed two shots of moutai.

The new owners had taken over the company as the global auto industry was gravitating to higher-tech steering mechanisms. Under pressure from consumers and government regulators to boost fuel economy, car makers were shifting from steering systems that use pulleys and hydraulic pumps to electronic power steering—more efficient software-driven systems that sell for as much as $400 apiece.

Under its former owners, Nexteer’s efforts to retool facilities to build the new systems were hobbled by a lack of capital, says Mr. Remenar. Under the new owners, that isn’t a problem. “They said, we have $15 billion to invest and grow in this space. Go grow,” he recalls.

The factory upgrades are intended to enable the company to supply electronic-steering systems for GM pickups and SUVs for years to come. A new contract with GM, announced after the company changed hands, could be worth about $1.9 billion over its life, and support about 1,000 production jobs, Nexteer says. The company also is pursuing new business with existing customers such as German luxury car maker BMW AG, Ford Motor Co. and Italy’s Fiat SpA

Mr. Zhao says he is optimistic about Nexteer’s prospects for global growth. The Chinese car market is the world’s largest, and is growing. Mr. Zhao said Nexteer is “definitely winning more clients and contracts in China compared with its past performance.”

Nexteer’s revenues increased by about 10% in 2011, to $2.2 billion, Mr. Remenar says, and the company is profitable, although he won’t say how profitable. Yet a slump in vehicle sales in Europe, he says, or a slowdown in U.S. or Chinese vehicle demand could trip up growth plans.

The company’s Chinese directors are keeping a close watch. Mr. Remenar says they challenged him on what they saw as overly conservative growth plans, which he says are prudent given the industry’s recent volatility. The language barrier, he says, is a constant challenge. When board discussion gets bogged down rehashing issues, he says, he tries to prod things along with an expression borrowed from a Chinese associate: “We’re frying the same rice.”

Mr. Zhao says Nexteer is considering a new factory in Beijing. He says the ownership group has assured U.S. employees it doesn’t plan to take the jobs and intellectual property to China and leave a shell in Saginaw.

“It’s all about growth,” he says. “We told them we would not give up the U.S. market, so how could we cut or move jobs?”

Nexteer has added more than 600 jobs on the factory floor since July 2010. The hiring and new investment has won over many workers initially suspicious of Chinese ownership. “They followed through with what they said they were going to do,” says Mario Gonzales, a team leader for workers who assemble hydraulic steering pumps for GM pickups. Says Troy Newberry, president of UAW Local 699: “This place went through two different bankruptcies. With the Chinese owning us, we won’t see a third.”

Still, some longtime workers remain skeptical, and there is lingering tension over concessions agreed to by union leaders. Tool-and-die maker Brian Bolter, a 17-year veteran, says he doesn’t see much evidence of new investment in his part of the factory complex.

For beleaguered Saginaw County, Nexteer’s revival and the resurgence of the American auto industry overall have provided an economic jolt. Saginaw County’s unemployment rate, as of December, had dropped to 8.6%, far below the county’s 2009 peak.

“Everybody was afraid [Nexteer] would just get liquidated, and the place wouldn’t exist any more,” says Jerry L. Seese, superintendent of schools in Saginaw Township. “It’s kind of a blessing” that the Chinese bought it.

To be sure, many of the new Nexteer jobs don’t pay the kind of wages that the company offered before the recession, and about 90% of Nexteer’s hourly workers have five years or less of seniority, UAW officials say. But county officials hope Saginaw County has positioned itself to compete for new investment more effectively.

In brochures aimed at Chinese investors, economic-development officials in Saginaw and neighboring Midland and Bay City are promoting the beauty of the Great Lakes and the affordable housing in the area. Officials at economic-development group Saginaw Future are courting Chinese solar-panel makers to invest in a new industrial park situated close to a large manufacturer of the raw materials used in solar power panels.

Mr. Zhao says AVIC Auto is scouting for more deals. “If there is a good opportunity,” he says, “we will consider a second acquisition and more.”

Nexteer Automotive the Saginaw-based, Chinese-owned supplier of steering systems, plans to hire 50 engineers  to support the new 30,000-square-foot customers service center in Troy.

The new center should be open by April, Nexteer said in a statement Tuesday.

“Following two record-breaking years for new customer contracts, this latest customer service center will support new electric power steering work with Detroit-based automakers,” said Dennis Hoeg, vice president of engineering at Nexteer.

“This location allows us to better support our local and global customers with critical electrical and software engineering talent, which is crucial for the flawless execution of new product launches,” Hoeg said.

Nexteer booked nearly $10 billion worth of new business over the past two years.

n 2011, electric power steering accounted for 60 percent of new customer contracts. The demand for EPS systems will continue to grow and by the end of 2013, 90 percent of newly produced full-size trucks in North America will be equipped with a Nexteer EPS system, Hoeg said.

Nexteer also is the only supplier in production with a 12-volt EPS portfolio that spans sub-A segment vehicles to full-size pickup trucks and sport utility vehicles.

Hoeg said increased demand for Nexteer’s steering  technology is driving its continued expansion, not just here in Michigan, but globally as well.  Automakers are switching to the electric power steering system in their entire lineups since EPS technology allows for a 4 to 6 percent increase in fuel economy.

The center will allow Nexteer engineers to work on application engineering projects and to coordinate commodity strategies. The space includes a custom garage that will be used to provide technical support for ongoing customer programs.

“Technical direction will still be developed at our world headquarters in Saginaw, and the Troy facility will serve as an extension of this location, as do our other 14 customer service centers located around the globe,” Hoeg said.

Chinese investors lead by the Beijing Municipal government acquired Nexteer in 2010.

“Following two record-breaking years for new customer contracts, this latest customer service center will support new electric power steering (EPS) work with Detroit-based automakers,” said Dennis Hoeg, vice president of engineering at Nexteer. “This location allows us to better support our local and global customers with critical electrical and software engineering talent, which is crucial for the flawless execution of new product launches.”

Nexteer booked nearly $10 billion worth of new business over the past two years. In 2011, EPS accounted for 60 percent of new customer contracts. The demand for EPS will continue to grow and by the end of 2013, 90 percent of newly produced full-size trucks in North America will be equipped with a Nexteer EPS system. Nexteer is the only supplier in production with a 12-volt EPS portfolio that spans sub-A segment vehicles to full-size pickup trucks and SUVs.

Increased demand for Nexteer’s industry leading EPS technology is driving its continued expansion, not just here in Michigan, but globally. Automakers are switching to EPS in their entire lineups as this green technology allows for a 4 to 6 percent increase in fuel economy.

In addition to hiring engineers for core development at its operations in Saginaw Mich., Nexteer is recruiting electrical, software, safety and mechanical engineers to fill 50 openings at its Troy customer service center. The center will allow Nexteer engineers to work on application engineering projects and to coordinate commodity strategies. The space includes a custom garage that will be used to provide technical support for ongoing customer programs.

“Technical direction will still be developed at our world headquarters in Saginaw, and the Troy facility will serve as an extension of this location, as do our other 14 customer service centers located around the globe,” added Hoeg.

ABOUT NEXTEER

Nexteer Automotive is a multi-billion dollar global steering and driveline business solely dedicated to electric and hydraulic steering systems, steering columns and driveline products for original equipment manufacturers.  Its 9,800 workforce serves more than 60 customers in every major region of the world.  The company has 20 manufacturing plants, five engineering centers and 15 customer service centers strategically located in North and South America, Europe and Asia.  Nexteer Automotive’s customers include GM, Fiat, Ford, Toyota, Chrysler and PSA Peugeot Citroen, as well as automakers in India, China, and South America.

www.nexteer.com

CONTACT           

Nexteer Automotive:
Luis Canales
Director of Global Communications
989-757-3086 (office)
luis.canales@nexteer.com

Max Muncey
The Quell Group
248-649-8900 (office)
248-952-7094 (cell)
mmuncey@quell.com

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.

“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.