Magneti Marelli opens new HQ in China, equips it with powertrain and lighting lab

Magnelli Marelli today inaugurated its new headquarters in Shanghai, China. In addition to hosting the staff, administrative and commercial functions for the activities relating to the Powertrain, Automotive Lighting, Exhaust systems, Suspensions and Aftermarket areas, the new building also includes an R&D Centre for the Powertrain and Automotive Lighting business areas.

“The investment for these new headquarters, “said Pietro Gorlier, CEO of Magneti Marelli, “aims to further strengthen the organisation of Magneti Marelli in China, offering greater flexibility, efficiency and responsiveness in supporting the local development of target technological solutions with market demands and appropriately and attentively meeting the needs of its customers in this crucial area for the automotive market.”

The new building, which is located on Jujin Road in the North East area of Pudong, covers an area of over 22,000 square metres, of which about 6,500 are devoted to the two R&D laboratories. The new HQ will accommodate around 550 people at the end of 2016, reaching approximately 700 people in 2018. Of these over 350 will be engineers and technicians involved in the activities of the R&D and product development centres.

According to Sylvain Dubois, chairman of Magneti Marelli China, “Magneti Marelli China is currently accelerating its growth with several new plants in ramp up phase.  We are implementing in a decisive way our technology to offer our latest innovations to the Chinese and Asian markets.”

The Powertrain R&D Laboratory will focus on developing strategic solutions and components in the area of hybrid systems, electronics and electromechanical technologies. The Chinese market for hybrid systems and electric propulsion has been experiencing strong growth for years now, with production volumes of approximately 170,000 hybrid systems in 2015 with an estimated growth of 49% in 2016.

In addition to petrol systems and GDI direct injection systems in particular, electronic control units for engine and transmissions and to intake manifolds, the lab will also focus on the development of technologies and systems for motorcycles and two-wheelers. There are also facilities and machinery for reliability testing and qualitative validation of components.

The Automotive Lighting lab will typically develop and adapt to the Chinese and Asian markets all the front and rear lighting technologies starting from technologically proven, large-scale applied and highly reliable halogen solution. The lighting R&D laboratory will also focus on technological peaks represented by the more advanced applications of LEDs and their distinguishing features in terms of safety, durability, fuel reduction and emissions and design. It houses research laboratories dedicated to the fields of optics, electronics, thermal simulation as well as to approval testing and product validation.

Growing business in China

Magneti Marelli’s business in China has been steadily expanding since 1996 and particularly in the last decade. In 2015, its Chinese business was worth over 550 million Euro (including also the non-consolidated JVs), employing approximately 3,500 staff. The Chinese car market in 2015 recorded production volumes higher than 24 million cars, an increase of 4.5% compared to 2014.

Having commenced operations in China in 1996 with activity related to electronic systems in Guangzhou, Magneti Marelli celebrates 20 years in the Chinese market, with estimated  investment of over 300 million euros in this period of time.

The company's activities in China are now located in various parts of the country with 11 production plants: R&D/Engineering in Shanghai (Headquarters, Powertrain in JV with SAGW), Wuhu (Automotive Lighting and Powertrain), Guangzhou (Electronic Systems), Hangzhou (Shock Absorbers in JV with Wanxiang Qianchao Company), Changsha (Exhaust Systems with Fiat/GAC), Changchun (Powertrain in JV with FUDI), Hefei (exhaust systems in JV with JAC and Lingdatang), Foshan (Automotive Lighting), and Xiaogan (Automotive Lighting in JV with CSI).