Hota wins large transmission parts order from U.S. automaker

This article was published by the Taiwan Headlines on March 28, 2006. It reports that Hota Industrial Manufacturing Co., Ltd., a leading maker of automotive and motorcycle transmission systems and parts in Taiwan, recently won a NT$1.5 billion (US$46.15 million) order for automotive transmission planet gears from a major carmaker in the United States. The company's revenue is expected to grow strongly in the near future.

Hota is a leading original equipment manufacturing (OEM) supplier of parts to international automakers. Currently, the company's OEM products account for 90 percent of its total revenue. In 2005, Hota registered after-tax earnings of NT$370 million (US$11.38 million), up 201.49 percent from 2004.

The aforementioned planet-gear order will last for a period of five years, and Hota will deliver 2.4 million gears to the United States every year.

The company also won a big order for transmission gearbox axles from Borg Warner in 2005, and has been delivering 130,000 such axles every year. Hota has been receiving more orders from major American auto-parts suppliers in recent years. Indeed, industry analysts point out that qualified companies in Asia will receive more OEM orders from major international auto-parts companies, as these companies try to cut costs.