Behr America Inc. completes its 2-year joint venture with DaimlerChrysler AG, taking full ownership of the auto maker's thermal products plant in Dayton, OH. The two entered into the JV to ease the transition from DC to Behr management (see WAW — May '04, p.40).
With Behr having invested more than $60 million in new upgrades at the facility within the term of the JV and another $100 million investment planned by May 2005, the Dayton facility is now key to Behr's plans to grow in the U.S.
While 100% of Dayton's output currently is used in Chrysler Group vehicles, including the Chrysler 300 and Dodge Magnum, executives say 40% of Dayton's output should go to non-Chrysler customers within the next three to four years.
Dayton has contracts to supply engine-cooling modules and heating, ventilation and air conditioning systems to a number of new customers, executives say.
Output for BMW AG's next-generation X5 SUV begins in 2006, with output for General Motors Corp.'s Lambda platform (accounting for 220,000 components annually) starting at the same time.
Dayton also will provide engine-cooling modules for the next-generation Mercedes-Benz M-Class SUV beginning this fall (at a rate of 180,000 parts annually), with production of engine-cooling modules for Ford Motor Co.'s F-150 pickup slated to begin in 2006 (950,000 components annually).
