Nemak competes with a number of independent manufacturers and with in-house original parts manufacturers (OEMs) foundries regionally and globally.
Although not limited to them, Nemak’s independent competitors include: Linamar-Montupet, Martinrea Honsel and Ryobi in North America; and Linamar-Montupet, Martinrea Honsel, Georg Fischer, KS Aluminum and Magna Cosma in Europe.
There are also Teksid Aluminum, Fundicao Brasileira de Aluminio, Magal and Italspeed in South America; and other local suppliers in Asia such as KPSNC, Ruiming, DongSeo, Daerim and Jaya Hind and Ryobi.
Some of Nemak’s clients have in-house foundry operations.
They compete with them, although generally only for programs of these OEMs and in exceptional cases, for programs of other OEMs.
More specifically, the competition targets things like joint design and product development capabilities, technology, price, quality, and delivery.
The company focuses on the production of complex aluminum components for the automotive industry, primarily the production of powertrain parts and structural components and for electric vehicles.
Powertrain parts consist of engine heads, monoblocks, and others, as well as transmission parts, such as gearbox, converter box, and others.
Meanwhile, the engine heads and the monoblock form the main structure of the engine.
The gearbox forms the outer part for various parts of the transmission system.
Structural and electric vehicle components are elements that make up the structure and chassis of the vehicle, including pillars or posts, suspension towers, door structures, cross members, engine mounts, suspension arms and stringers, among others, as well as parts. that protect batteries and motors and transmissions of electric cars.
Nemak has a portfolio of more than 60 clients, including the top 10 automotive groups and their subsidiaries worldwide, such as BMW, Daimler, Fiat-Chrysler, Ford, GMC, Hyundai-KIA, PSA, Renault-Nissan, Toyota and Volkswagen Group.
In addition, Nemak is the sole supplier for most of the components it produces and has been designated as the supplier for the same for the entire engine design life cycle, which historically spans between six and eight years.
This life cycle is compared to four years for interior components and two years for vehicle exterior components.