Motherson Sumi denies any impact from VW dieselgate

Since the past few days German carmaker Volkswagen has been in the news for all the wrong reasons, mainly for the diesel emissions scandal which originated in the US.

It was speculated that Motherson Sumi Systems (MSS), the flagship company of the Samvardhana Motherson Group, the Noida-based multi-product supplier, was deeply impacted. MSSL has a huge overseas exposure of 85 percent. The Volkswagen Group accounts for 44 percent of the consolidated revenues of MSSL of $5.5 billion. 

However, G N Gauba, CFO, Motherson Sumi Systems, told Autocar Professional today that MSSL is not impacted because it is not supplying any engine part which is currently under the scanner. MSSL supplies mirrors, bumpers, dashboards and door trims to VW in Europe, and mirrors and plastic parts in US, the majority of which come from its Mexico facility that makes mirrors. Overall, VW’s business in USA is a miniscule 1-1.24 percent of total overseas supplies of MSSL.  

“The parts that we are supplying to VW in the USA also do not change because of the car being petrol, diesel or CNG. The parts supplied by us outside India are related to aesthetic, engineered parts which are not connected to the engine,” affirms Gauba.

The company’s Mexico facility contributes a very small portion of sales of less than 3 percent of total MSSL consolidated sales. Among the VW Group companies, Audi accounts for 21 percent of MSSL’s revenue, VW 12 percent, Seat 9 percent and Porsche 4 percent.

At present MSSL’s European business contributes 55 percent of the company’s total revenue, the main OE customers being BMW, VW, Audi and Daimler. 

“We are not aware of people’s apprehensions. We can only clarify regarding our business position,” says Gauba.