Schaeffler expects other takers for valve-control system as it nears production in South Carolina.
Group will launch U.S. production of the MultiAir valve-control system for Automobiles SpA in June, beginning what could be the start of something big in North America for the German supplier.
The first Cheraw, SC, MultiAir units will be headed to Dundee, MI, to support production of 1.4L FIRE engines for the North American market500, slated for assembly at Group LLC's Toluca, Mexico, plant.
But there already are plans forto use the technology on two of its own engines, and says it has other auto makers interested in adopting the advanced valve-control technology.
“There is interest on a global basis,” Peter Pleus, president-Schaeffler Group Automotive, tells Ward's at the North American International Auto Show.
“And the technology is not restricted to just cars,” he adds, suggesting there is interest in employing the valve-control system on larger diesel engines offered in commercial vehicles.
Pleus says applications beyond Chrysler-Fiat could emerge within three or four years.
Cheraw is in the process of adding 300 workers for production of MultiAir for the Fiat 500, with production projected to top 100,000 units annually.
Schaeffler officials decline to predict how big volumes could get, but the Fiat 500 is just the beginning for Cheraw. It also will produce MultiAir modules for Chrysler's Tiger Shark 2.4L 4-cyl. engine — a revamped version of the Global Engine originally developed withMotor Co. Ltd. and Motors Corp. that also is built in Dundee.
Tiger Shark is due next year, with applications in Chrysler's C- and D-segment entries.
Cheraw also will supply the system for a version of Chrysler's new Pentastar V-6 that took a Ward's 10 Best Engine award for 2011 and will proliferate throughout the auto maker's lineup.
But continued pressure industry-wide to improve fuel economy is heightening interest for what Schaeffler brands as UniAir, and driving much of the growth the supplier has enjoyed in North America over the past year.
Fiat originally developed MultiAir/UniAir with Schaeffler and uses the technology on its FIRE small engines in Europe. The auto maker also will employ the system on a new 2-cyl. engine for Europe. Schaeffler bought licensing control in 2001 and now has the rights to market the technology under its own brand to other auto makers worldwide.
Adding UniAir improves fuel economy about 10%, Schaeffler says. But coupled with engine downsizing and turbocharging, gains can increase to 25%.
Schaeffler expects worldwide revenues — at an estimated $9 billion in 2010 — to jump 30% in 2011, driven largely by the industry's efforts to improve conventional powertrain technology and new-vehicle volume growth in emerging markets.