Magneti Marelli displays parts prowess at Auto Shanghai 2013

Italian component supplier Magneti Marelli is showcasing its latest product and technology portfolio at the ongoing Shanghai Auto Show (April 21-29). The company, which recorded revenues of 287.4 million euros (Rs 2,024 crore) in revenue in China last year, plans to double that turnover in the next two/three years. The 2012 revenues are an increase of over 19 percent, year on year, in Chinese auto market – the largest in the world – which grew by 6 percent in terms of cars produced (from 17.27 to 18.23 million).

Taking centre stage at show are direct injection, hybrid engine systems, telemetry solutions and lighting, with a focus on themes of CO2 and technological exchange with the world of Motorsports. The stand (Hall N4, Stand B040) houses the Formula 1 car, the Lotus E21. Magneti Marelli, which has had a presence in the country since 1996, is establishing a very solid base in China. It has a footprint that covers the main strategic areas of the Chinese automobile industry (Shanghai, Jiading, Guangzhou, Wuhu, Hangzhou, Changchun, Changsha and Hefei). It supplies to 13 Chinese carmakers and 10 international carmakers present in China, relying on 8 industrial sites – including direct presence and joint ventures – which currently employ over 3,000 people, of which 370 handle R&D.

Future prospects indicate the possibility of a significant, constant increase in business volume, both in the medium and long term, considering three key factors such as the relentless development of the ‘local’ automotive market, the growing importance of China as a global player and the consequent need for increased technological content.

According to IHS, in 2025 China will reach a total of about 34 million vehicles produced, partly to satisfy local demand and partly to assume a role as global player in the automotive sector, with an important presence on foreign markets. In order to be competitive on these markets and simultaneously tackle the problem of CO2 and sustainable mobility in the country, the technological content of Chinese vehicles must necessarily increase both in quantitative and qualitative terms, as well as in decisive areas such as safety, consumption/emissions and connectivity.

From a technological perspective in particular, Magneti Marelli banks on strengths that will support and add value to such growth, mainly the direct injection systems and hybrid-electricity engine technology, as well as telemetry and infotainment technology which enable connection of the car to information and service networks. Another fundamental area of technology that will drive growth on the Chinese market is car lighting, Magneti Marelli’s top business sector at a global level and technological point of excellence, especially with regard to LED and Xenon solutions. Lighting plays a fundamental role in safety; it is also relevant in terms of reducing consumption and emissions and has a decisive impact on the aesthetic of a car, thanks to new design possibilities provided by new technology. In the lighting sector, Magneti Marelli is also expanding its aftermarket activity to China, in terms of original, top quality spare parts.

Magneti Marelli tech in vehicles at Auto Shanghai

Some important models on show at Auto Shanghai feature Magneti Marelli technology. These include the new Maserati Ghibli, for which Magneti Marelli has provided a Xenon illumination system with AFX (Advanced Frontlight Extended), instrument cluster, GDI pump for the 3.0 V6 petrol engine, shock absorbers and hands-free module system.

A large amount of its technology is used on vehicles by Chinese carmakers, including the new brand Qoros. An instrument cluster was produced in the Magneti Marelli plant in Guangzhou, China, to equip the Qoros 3.

Furthermore, it has a presence in model previews such as the Chery A2 Sedan (electronic motor control system and throttled body), GAC Triumpchi GA3 (transmission control unit), JAC YueYue FL and JAC Heyue S30 (Freechoice AMT complete with electronic control system, hydraulic kit and exhaust systems), BAIC E-Series HB (throttled body), and JAC Refine S5 (exhaust systems). For the China-market Audi Q5, in addition to the LED lights, Magneti Marelli has provided the instrument cluster, again made in plants in China. In the lighting sector, Magneti Marelli technology is used on LED lights on the Buick Regal GS and Ford Mondeo and projectors on the BMW X4 and Citroën C4L Sedan.

The Chinese presentation of the Jeep Grand Cherokee is equipped with Magneti Marelli LED lights and the Renault Fluence with halogen and xenon lights and projectors. Powertrain applications are used on many previews including a throttled body on the Skoda New Octavia, Skoda Rapid (which also uses GDI system injectors) and the Citroën New Elysee (also with shock absorbers). Plus, intake manifolds and shock absorbers on the Citroen C4L Sedan and GM Cruze HB, throttle body and intake manifolds on the VW Lavida HB and Sagitar GLI.

Magneti Marelli factfile

Magneti Marelli, a part of Fiat SpA, designs and produces advanced systems and components for the automotive industry. With its 83 production units, 12 R&D centres and 26 application centres in 19 countries, about 36,900 employees and a turnover of 5.8 billion Euros (Rs 40,855 crore) in 2012, the group supplies all leading carmakers in Europe, North and South America and the Far East. Its business areas include electronic systems, lighting, powertrain, suspension systems and shock absorbers, exhaust systems, aftermarket parts & services, plastic components and modules, and motorsport.

Photograph: Eugenio Razelli, CEO, Magneti Marelli, with Jack Cheng, head of Magneti Marelli China, at the company stall at the Auto Shanghai 2013.