ArvinMeritor stiffens dispute with Dana
Valor Econômico
Two of the largest global suppliers of sets of automotive components to the automakers, the so-called systemizers, are arming themselves against the increasingly fierce competition between them in the business of commercial vehicles in Brazil and they have strengthened their investments in the local operation. Since last year, the country gained relevance in the global dispute between ArvinMeritor and Dana, American companies specialized in the development of parts for those vehicles, as a result of the growing production of the car industry and the promise the growth in the area of trucks and light commercial vehicles will be sustained.
While ArvinMeritor, major supplier of axles for trucks, marks its entrance in the national market of driveshafts, parts that integrate the torque transmission system, with the opening of another plant in Osasco (SP), its rival Dana, on its turn the leader in the segment of driveshafts, has just entered into a partnership with Sifco to increase its presence in the national market of axles. A third company, the American Axle, completes the trio of major international manufacturers of axles and transmission systems that realized the potential of the country.
The plant of ArvinMeritor, inaugurated yesterday evening, will have capacity for 100 thousand parts a year, with possibility of expansion according to the demand and the profile of items ordered. The new unit is part of the investments of US$ 20 million executed by the company in the country since last year and it is attached to the first plant of the company in the country, where between 14 thousand and 15 thousand axles are produced every month. MAN and Iveco have already placed orders and the first parts should leave the new production line in early March. Another US$ 10 million, recalls the Executive, shall be invested in a plant in Resende (RJ), where it is located the modular consortium of MAN.
As regards Dana, it recently invested US$ 150 million in Brazil in a partnership with Sifco, and it begins producing front axles with exclusiveness for the company in the country, besides US$ 50 million in improvements in the plants of Diadema (SP), Sorocaba (SP) and Gravataí (RS). The international partnership with Sifco was first signed by Dana after the restructuring after its composition with creditors ended in 2008. Dana estimates it is responsible for nearly 95% of the national market of driveshafts, considering the sales to the automakers (OEM). Although the competition between the two companies in the segment of driveshafts for heavy vehicles is still almost non-existent in the country - with the new plant of ArvinMeritor the scenario should change -, in North America the companies face fierce competition from each other. In that region, Dana is the market leader, even though Meritor has 40% of market share.