Supplier Astemo Seeks To Deal With Automotive Industry's Future
Logo for Japan's Astemo automotive supplier
Japan's Astemo Group and its Astemo Americas unit are making major adjustments amid changes in the auto industry.
Astemo Americas is at work related to new technology, including steer by wire, break by wire, and autonomous driving.
Astemo Group is looking to do an initial public offering in 2026. Currently, the company is 40% owned by Honda Motor Co., 40% by Hitatchi Ltd., and 20% by private equity.
The U.S. unit, Astemo Americas, is looking to expand from its Farmington Hills, Michigan, complex. It changed its name to Astemo Americas last month.
'We're growing out of this facility,' said Tim Clark, CEO and president of Astemo Americas. 'We're bursting at the seams.'
The executive said the supplier's new quarters will remain in the greater Detroit area. The company is looking for a site that could include an actual test track, rather that doing test drives in a parking lot.
Astemo has 80,000 employees globally and 14,000 in the Americas. Its customers include Honda, Volkswagen AG, and General Motors Co.
The supplier provided a briefing on Friday to automotive journalists.
With the planned IPO, there's the question whether Astemo's relationship with Honda may change.
'We are very close to them,' Clark said of Honda. After the IPO, 'I don't think that will change…It's a very good relationship.'
What follows are other topics discussed by Astemo Americas:
--China's decision to limit rare earths to the U.S.: 'I think magnets are affecting almost every auto supplier,' said Rob Sharpe, senior vice president of sales and marketing for Astemo Americas.
The impact on Astemo Americas? 'Not yet, but soon,' Sharpe said. 'We're counting the days.'
An April 27 story on the Forbes website said, 'Rare earths are the great multiplier in the production of electricity and the efficiency of motors. Without them wind turbines would probably not be worth constructing — rare earths increase the output from a wind turbine fivefold or better and the same dynamic is at work in the efficiency of motors.'
--Tariffs: The administration of President Donald Trump has imposed tariffs of 25% on imported vehicles and parts. Tariffs are levied on importers of products. Typically, those costs are passed on to customers. Tariffs are not paid from one country to another.
'The tariff is no fun,' Clark said. 'I wish it were gone.'
He added: 'We are looking to see where we can localize' parts.
The briefing included media test drives of vehicles with Astemo technology. The cars and trucks were production models equipped with prototypes of Asemto tech.
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Rolling Start, 5–60 mph: 5.0 sec Top Gear, 30–50 mph: 2.2 sec Top Gear, 50–70 mph: 3.5 sec Top Speed (gov ltd): 112 mph Braking, 70–0 mph: 171 ft Braking, 100–0 mph: 343 ft Roadholding, 300-ft Skidpad: 0.85 g C/D FUEL ECONOMY AND CHARGING Observed: 75 MPGe 75-mph Highway Range: 180 mi Average DC Fast-Charge Rate, 10–90%: 84 kW DC Fast-Charge Time, 10–90%: 39 min EPA FUEL ECONOMY Combined/City/Highway: 91/94/88 MPGe Range: 204 mi C/D TESTING EXPLAINED More Features and Specs
