DaimlerChrysler In Engine And Turbocharger Venture … Volvo Plans New Engine … Parker Unveils Czech Plant … Impco Forms Joint Venture

Diesel Progress North American Edition, August, 2001 by Mike Mercer

As a follow-up to the partnership announced last year, DaimlerChrysler AG and Hyundai Motor Co. announced they will jointly manufacture commercial vehicle engines in South Korea. According to Hyundai, the companies will also set up a joint venture by the end of 2002 to produce medium and large commercial vehicles. Each company will invest $90 million into the diesel engine project. The engines will use DaimlerChrysler technology and are to be produced starting in 2004 at Chonju, the site of a major Hyundai plant. Most Hyundai commercial vehicles will use the engines once the factory is on line. DaimlerChrysler holds a 10.46 percent stake in Hyundai.

In other DaimlerChrylser news, Ishikawajima-Harima Heavy Industries Co. and DaimlerChrysler AG have established a joint venture in Germany to develop, design, manufacture and market turbochargers and superchargers, primarily for the diesel automotive markets in Europe. The venture, which will be called IHI Charging Systems International GmbH, will have Ishikawajima-Harima holding a 51 percent stake, while Daimler Chrysler will hold 49 percent. IHI said the new company has targeted sales of 250,000 units in the fiscal year ending March 2002, with plans to expand its production to 1 million units in five years. IHI Charging Systems will develop, design and market the turbo products at its headquarters in German and make them at a plant in Italy.

Volvo announced plans to develop a 16 L diesel for on- and off-highway, stationary and marine applications. The company said this is the first step in the consolidation of its engine program following the acquisition of Renault VT/Mack, Volvo will invest $132 million to develop the engine. With output from 200 hp and above, the new engine will be offered to Volvo's trucks, buses, construction equipment and marine and industrial engine groups. The engine will be developed and manufactured by Volvo Powertrain, the unit within Volvo responsible for supplying diesel engines, gearboxes, rear axles and driveline systems to all of Volvo's business areas.

Parker Hannifin opened a new plant in the Czech Republic, highlighting the company's strategy for expanding in the lower-cost production centers around the world. The $10 million plant is located in Chomutov, about 90 miles northwest of Prague. The plant was spearheaded by Parker's Hose Division, one of 14 divisions in the Fluid Connectors Group. The facility will manufacture hydraulic hose, couplings and fittings for such applications as automotive air conditioners, construction machinery and transportation equipment. In a change from the way that Parker has traditionally operated, nine independent divisions will share common services in the 100,000 sq.ft. incubator plant as they establish production in Central Europe.

Impco Technologies Inc., announced it has formed two joint ventures with Delhi, India-based Minda Industries Ltd., which is part of the Minda Group. The joint ventures will focus on local manufacturing of Impco products and systems in India and marketing, sales and distribution throughout the region. Minda Impco Technologies Ltd. is owned 40 percent by Minda Industries Ltd. and 60 percent by Impco to develop the market, sell product and provide services and training. Minda Impco Ltd., which will manufacture products, will be 60 percent owned by Minda Industries Ltd., with the remaining 40 percent owned by Impco.

The European Commission has cleared the way for Fiat subsidiary CNH Global NV to acquire full control of Fiat Hitachi Excavators (FHE), which produces construction equipment and agricultural machinery. FHE was jointly controlled by CNH and Japan's Hitachi Construction Machinery Co., which will remain a minority shareholder.

Hyco International Inc., purchased Hidrover Equipamentos Oleodinamicos, S.A. of Caxias do Sul, Brazil. Hidrover produces hydraulic cylinders, primarily for mobile applications. Financial terms of the deal were not disclosed. Prior to Hyco's acquisition, the shareholders of Hidrover formed a spinoff company which incorporates Hidrover's directional control valve business and therefore are not involved in the sale. Both companies expect to continue to pursue the cross-selling opportunities that come naturally with complementary cylinder and valve product lines.

Finning International Inc. announced that its U.K. subsidiary Hewden Stuart has acquired the materials handling equipment of Maxxiom Ltd., consisting of 640 units.