AV Manufacturing, a subsidiary of Ceva Logistics, has bought the assets of Delphi’s supply operation at GM’s Automotive Industrial Complex in Gravatai, Brazil. The acquisition puts AVM in control of an 8,000m2 warehouse with responsibility for the full range of services involved in the supply and sub-assembly of front suspension systems.
According to Ceva’s Business Development Director, Paulo Franceschini, “Ceva is the only logistics operator to develop this kind of service in South America.” He believes that full outsourcing of logistics solutions for assembly is a market trend.
"The new business [includes] reponsibility for all activities involved in the suspensions supply chain," Ceva's Business Development Manager, Ruy Nogueira, told  Automotive Logistics. "It means planning and purchasing the components, national and international transportation, storage, sub-assembly and delivery to GM in a just-in-time sequenced model."
AVM has been carrying out sub-assembly operations on engines for two years at Gravatai, which makes the GM Prisma and Celta cars, and has sub-assembled more than 400,000.
With this acquisition, Ceva has further blurred the line between the role of a tier supplier and a logistics provider. Besides managing transport flows and inventory, AVM will also be purchasing and programming more than 60 components from global markets, as well as doing sub-assembly and sequencing to the plant. The inbound deliveries will be made using a just-in-time model sequenced for GM.
Delphi South America spokesman, Marcel Dellabarba, told Automotive Logistics that the selling of the chassis business assets to AVM is part of the Delphi Global transformation plan, which was announced in 2006. "The chassis business is related to front corner and rear axle assemblies...but is not representative of Delphi logistics activity in the region," he said. "Delphi will continue to supply GM lines with products from other divisions."  
In Germany meanwhile, Ceva has renewed its aftermarket logistics contract with filtration and intake systems expert Mann+Hummel for five years. It has been operating at the German company’s 17,000m2 storage facility at Niederaichbach since 2002.