Auto supplier Inteva Products LLC aims to boost business with German, French, Korean and Chinese automakers after its purchase of fellow U.S. partsmaker ArvinMeritor Inc.'s body systems division.
Inteva takes over the former ArvinMeritor unit's contracts with Germany's BMW AG, France's Renault SA and PSA/Peugeot-Citroen SA, South Korea's Hyundai Motor Co. and Kia Motors Corp., and SAIC Motor Corp. of China.
The key additions to Inteva's product portfolio are ArvinMeritor's roof business, which includes sunroofs, panoramic roofs and full roof modules, and its electronics & motor systems unit, which encompasses electric motors for power windows and doors. Those two product lines will be added to the two lines already offered by Inteva: interiors (including cockpits and headliners) and closures (including latches, door modules and window regulators).
Because of its expanded product offering, Inteva primarily aims to grow by winning more business with its current customers, said Stefan Land, vice president and executive director of the Inteva's roof systems product line.
"It is clearly our target to expand the product lines with our existing customers," Land told Automotive News Europe in a phone interview last week. "Our existing customers are our most important customers."
Expanded European footprint
Inteva is much stronger in Europe following the $27.3 million deal, which was announced in August 2010 and closed last week. The company's European footprint grows to 12 manufacturing facilities from two.
Last week's acquisition also increased Inteva's number of plants in the booming Asia-Pacific region to seven from two.
"It is key that we are able to provide customers products and services whether they launch their products in Europe, the U.S., Asia-Pacific or elsewhere," Land said.
Volkswagen AG, General Motors Co. and Daimler AG -- all of which are adding production plants or increasing existing capacity in places such as China and India -- are the company's top customers based on revenues, Land said. Those three automakers are closely followed by Hyundai-Kia, PSA and Ford Motor Co., he said, adding that no customer accounts for more then 25 percent of Inteva's sales.
Inteva and the ArvinMeritor unit have combined revenues of about $2.2 billion, said Land, who was previously vice president and general manager of ArvinMeritor's body systems unit.
Land estimates that each side brings an equal proportion of business -- about $1 billion -- into the mix. Inteva, which is privately held and based in suburban Detroit, declined to provide more specific details about its finances.
The sale of the body systems unit is part of ArvinMeritor's plan to exit the light vehicle business to focus on commercial trucks.
Inteva was created in 2008 from the sale of Delphi Corp.'s global interiors and closures business to New York private equity firm Renco Group Inc.