Ceva Logistics is remaining assertive despite a continued reduction in freight flows that have hit automotive-related sectors in the first three months of 2009. It announced a contract renewal with Fiat Powertrain Technologies (FPT) as well as a new contract with Wabco in the commercial vehicle market this week.
Reductions in the inbound automotive sector (as well as airfreight) hit Ceva in the last quarter of 2008 bringing revenue down to €1.56 billion ($2.06 billion) from €1.68 billion in 2007. Automotive constitutes 32% of its current business, down from has high as 40% in past years, and a number that Ceva management has made clear that it would like to reduce.
But it nevertheless continues to gain market share in the declining automotive sector with the recent contract signings. For FTP, Ceva manages inbound logistics at its plant in Pratola Serra, Italy. FTP makes engines, gearboxes and axles for cars and commercial vehicles and the Pratola facility is expected to hit an annual volume output of 570,000 engines.
Ceva will also operate out of an external warehouse there and handle everything from goods receipt to the transport of materials, delivery of motors, as well as kitting and pre-assembly. Ceva has a long relationship with Fiat as a lead logistics provider.
The second contract will support commercial safety and controls systems supplier WABCO, managing logistics and export services for the company in the Middle East, North Africa and India. Ceva will handle warehousing, collection and packaging as well as inbound freight, as well as customs clearance and outbound exports from Dubai.
