MAG’s Global Automotive Business Achieves Record Growth

Innovative machining technology, significant growth rates, bookings and backlog cap a year of extraordinary strength in Asian markets and growth in the Americas and Europe.

MAG IAS, LLC (MAG Americas; Erlanger, KY) and MAG Europe GmbH (MAG Europe) ended 2011 with a strong close and backlogs which stretch to 2013 in the key automotive segment. Order intake amounted to $834 million (€607 million), marking a record increase of 90 per cent (2010: $438 million /€318 million). These results include a significant amount of business in the fast growing markets of China and India, with more than two thirds of orders coming from these countries.

Dr. Sebastian Schöning, the global president of automotive at MAG, said, “During the last five years, we expanded our automotive business activities significantly, partnering with OEMs from traditional and emerging markets. I am pleased that we were able to foster existing customer relations and at the same time win new, promising key customers. In Asia, for example, we provided highly productive manufacturing technology to local OEMs as well as to European and American manufacturers setting up new facilities in the region.”

Among the major orders from China in 2011 were two manufacturing lines for SGM Wuling (SGMW) with a total of 115 CNC machines from the XS series. All cylinder heads, crankcases and most crankshafts for Wuling’s top seller “Sunshine” (ranked third in the Forbes list of best-selling cars) are being produced on MAG systems. The latest orders are the seventh and eighth MAG manufacturing lines for SGMW and will be installed in facilities in Liuzhou and Qingdao.

In addition to supplying three agile manufacturing systems to German facilities for Mercedes A, B and C class engine production in 2011, MAG was chosen to contribute to the brand’s globalization into China. BBAC (Beijing Benz Automotive Corporation), a joint venture of Daimler AG with BAIC, one of China’s leading automotive manufacturers, ordered a manufacturing line from MAG for cylinder block production.

Another notable project in China is with Changan Automobile Co. Ltd. which has placed four cylinder block lines and four turn-key crankshaft systems with MAG Automotive Europe, representing a volume of $220 million (€160 million). “We are especially proud of these projects with Changan, one of the fastest growing Chinese tigers. The customer’s complete satisfaction with our project execution is evidenced by repeat orders for MAG globally,” said Dr. Manfred Berger, the president of MAG Automotive Europe. “The customer’s continuing trust has been shown as the joint venture Changan-Ford-Mazda recently placed a new cylinder head line with MAG Automotive Americas and the crankshaft system with MAG Automotive Europe.”

In addition, several new projects are in the final stages of simultaneous engineering and exemplify the close working relationships and global resources the manufacturer is able to offer its customers. For example, Tata Cummins Limited has been working closely with the company globally on several production systems for Mid Range heads and blocks at both the Jamshedpur and Phaltan, India sites.