Precision Auto bags Chrysler deal

Written by Bureau | Pune, Jul 21 | Updated: Jul 22 2008, 07:20am hrs
Precision Automation and Robotics India (Pari), a robotics and automation company, has bagged a Chrysler deal to build the US car major's axle assembly plant and ship it to its Marysville axle unit in Michigan for installation in March 2009.

The US car maker is contemplating investing $ 700 million into the Marysville plant. This investment is part of Chrysler Group's $3 billion investment to produce more fuel-efficient engines, transmissions and axles. The axle assemble plant, which is a Rs 15 crore deal, will have adequate flexibility so that it can accommodate new platforms and enable the car company to add new axles of any size.

"It took us over 50 project executions in the US to convince the Chrysler Group to let us do this project," said Ranjit Date, president and joint managing director, Pari.

The Chrysler team was in India for two weeks visiting Pari and its customers in India, added Date.

Pari, a 16-year-old company with over 1,000 installations worldwide, had earlier worked with Caterpillar, American Axle, Emerson, Eaton, Honeywell and Dow Corning in the US.

It aims to be in the top ten league of global automation companies with a billion dollar turnover.

With Chrysler's orders, Pari expects this to open more doors. Successful execution of the project will put to rest the question on whether this type of project can be done using a global delivery model, he added. Pari's subsidiary in Detroit will do the front-end job while the project engineering manufacturing will take place at its Pune facility and the Automation City, near Pune.

We are also talking to GM and Ford. I am sure we will have a chance to work together, Date averred.

After the powertrain assembly, Pari also wants to set up an engine plant and body assembly units globally.

The US automotive industry has restructuring itself and is reinventing the small and fuel efficient car platforms. It is trying to do this at lower capital costs and with lower margins and this represents a major opportunity for Pari, added Date.