Nexteer, citing steering contract, will expand in Michigan
Nexteer President Laurent Bresson: “Rapid adaption of electric power steering is a direct result of automakers striving to meet new fuel economy regulations and EPS enables up to a 6 percent improvement along with numerous driver assist benefits.”
Nexteer Automotive said it is investing nearly $70 million and adding 325 jobs at its headquarters in Saginaw, Mich., to handle a new contract with a Detroit automaker.
The supplier, which makes advanced steering and driveline systems, declined to identify the automaker it will supply with its 12-volt rack electric power steering system in a contract through 2022.
The $70 million will be spent throughout 2014 to improve Nexteer's development, manufacturing and test capabilities, a company statement said today.
Nexteer calls its 12-volt EPS an "industry breakthrough" that accounted for nearly 60 percent of its business in 2011, a release said. The supplier booked a record $12 billion in business over the past 30 months.
By the end of 2014, 90 percent of new North American full-sized trucks will be equipped with Nexteer's 12-volt EPS systems, the release said.
Nexteer President Laurent Bresson said in a statement: "Rapid adaption of electric power steering is a direct result of automakers striving to meet new fuel economy regulations and EPS enables up to a 6 percent improvement along with numerous driver assist benefits."
The supplier's current customers include General Motors Co., Ford Motor Co., Chrysler Group, Toyota Motor Corp., Fiat Group and PSA Peugeot Citroen, as well as automakers in China, India, and South America. Nexteer ranks No. 74 on the Automotive News list of the top 100 global suppliers with estimated worldwide sales to automakers of $2.2 billion in 2011.