Mahindra Group, CIE Automotive to Form Alliance
The Mahindra Group of India and CIE Automotive S.A. of Spain announced the signing of a global alliance agreement between Mahindra's automotive-component businesses (held under its Systech Sector) and CIE Automotive (also involving its subsidiary Autometal). The agreement will see the formation of a global automotive-component supply network with combined annual sales of approximately $3 billion with operations in North America, South America, Europe and Asia held through listed businesses in Spain, Brazil and India. As part of the transaction, CIE Automotive will contribute its forging businesses in Spain and Lithuania and consolidate all companies under the new, rechristened Mahindra CIE.
As an additional part of the transaction, CIE Automotive – through one of its subsidiaries – will acquire a stake in Mahindra Group’s listed and unlisted companies belonging to the Systech Automotive Component business. Mahindra Systech offers a variety of components and services to the automotive and other ground-based mobility industries around the world. Its component portfolio includes forgings, castings, gears and composites. CIE Automotive is a main supplier of components and sub-components for the automobile sector. It develops its entire line of products through processes that include forging and iron casting.