As a global leader in electric power steering, Nexteer Automotive has always been at the forefront of pushing automotive technology beyond conventional borders with its focus now on automated driving systems. This is what keeps it ahead of the curve, reports Sarada Vishnubhatla
Nexteer Automotive, a leader in intuitive motion control, is a multi-billion dollar global steering and driveline company known for its electric and hydraulic power steering systems, steering columns, driveline systems, as well as advanced driver assistance systems (ADAS) and automated driving enabling technologies for OEMs. It has strategic locations in North and South America, Europe, Asia and Africa, serving more than 60 customers globally. Established in 1906 as Jackson, Church and Wilcox Company in Saginaw, Michigan in the US, the company became a division of General Motors Corporation (GMC) a few years later. In 1928, GMC realigned to create the Saginaw Steering Gear (SSG) Division to design and manufacture steering systems.
Informs Madhav Kulkarni, Managing Director, Nexteer Automotive India: “A milestone was touched in 1954 when SSG produced its one millionth safety power steering system. In the next few years, more plants were set up to manufacture propeller shafts, front wheel drive axles and air pumps and energy-absorbing steering columns. In 1985, SSG became Saginaw Division to better reflect the range of products it offered to the automotive industry, and 10 years later it became Delphi Automotive Systems, a separate business unit of GM. The same year in 1995, it set foot in India to manufacture steering components and half shafts.
“Soon after, it became an independent company. Delphi Automotive Systems’ division was bought back by GM in 2009 and was renamed Nexteer Automotive.” Acquired by Pacific Century Motors (PCM), an offshoot of Aviation Industry Corporation of China (AVIC), in 2010, Nexteer Automotive then entered into a fast-growing period as the industry transitioned to engine-independent steering. “In 2018, we unveiled our first comprehensive suite of advanced steering technology for autonomous and mixed mode driving. And this year, we achieved the milestone of producing our 60 millionth electric power steering system globally,” shares Kulkarni.
On the road to success
Nexteer Automotive’s successful journey began from being a $2 billion entity when acquired by PCM to becoming a $3.9 billion business in 2018. The company’s aim is to become a benchmark on safe and profitable steering and driveline systems in the industry. Globally, driveline and steering businesses make up for 15% of their total business.
Says Kulkarni: “We are a global leader in electric power steering (EPS), which is the heart of a vehicle’s personality and performance, and we give vehicle control and feel of the road to the driver. EPS is a socially responsible technology that offers increased fuel economy and reduced emissions. To cite an example, Nexteer Automotive has put more than 60 million EPS units on the road since 1999, saving enough fuel to fill the equivalent of 48 billion 16 oz. water bottles. Moreover, EPS is a key ADAS-enabler for features on the road today, such as park assist, lane keeping assist, lane departure warning, and traffic jam assist.”
Accomplishing global vision
Nexteer Automotive’s ability to seamlessly integrate its systems into OEMs’ vehicles is a testament to the company’s over 110-year heritage of vehicle integration expertise and product craftsmanship. Pegged at the third position globally in EPS systems, the company is leveraging its steering expertise to develop technologies that enable ADAS and automated driving. Its suite of advanced steering technologies delivers advanced safety and performance as the role of steering quickly evolves. “We seek to be the partner of choice for our customers and suppliers by delivering dependable, safety-critical products and building enduring relationships,” Kulkarni states.
“Nexteer Automotive is a high-quality, proven technology and manufacturing partner that is strategically located around the globe to serve customers in every major automotive market. In India, we set up a new plant in Chennai earlier this year to produce EPS systems for a popular passenger vehicle brand, and we are also in talks with other domestic giants in their bid to boost their businesses and achieve each of their vision. Half shaft products from our Bangalore and Pune plants serve both local and global OEMs,” he adds.
EPS trends
Along with the BS-VI standard, the automakers and auto component makers are preparing to upgrade their products to make them more economical and environmental-friendly. In terms of steering systems, the EPS products will come to the market faster in the passenger vehicle segment up to SUVs. The column-assist EPS systems produced by Nexteer Automotive’s Chennai plant integrate the system electronics (motor, controller and sensor) and the assist mechanism with the steering column, which can be a strategic alternative for customers who need a cost-saving steering solution for a heavier vehicle.
OEMs in the Indian market align their technologies to match Indian customers’ cost sensitivities; in turn, Nexteer Automotive provides tailored motion control solutions for OEMs’ needs in various markets such as India. To that end, traditional hydraulic power steering systems still rule the roost in the Indian market – for now.
The USP
Customer experience management (CEM) instead of customer relationship management (CRM), is the new USP of Nexteer Automotive. The idea behind CEM is to enhance the customer experience at every touch point by providing professional and prompt service there by “delighting” the customer. “We aim for the entire process – right from generating the RFQ to the drawing board and design till the natural end of the product, it must be a delightful experience for the customer. This has stood us in good stead over the years where, with our persistence, we have even outshined competition,” Kulkarni states.
Another USP of the company is technology – to have vehicle-level thinking and systems integration embedded in their DNA. With almost 130 engineers on their rolls, Nexteer Automotive houses software designing, development and validation facilities in Bangalore and hence has the distinction of being a one-stop shop to support the company’s global business.
It is so because the company believes in growing with its customers to touch milestones together.