49
RASSINI TECHNOLOGICAL INNOVATION FOR A SUSTAINABLE FUTURE <2018> < ANNUAL REPORT >
R A S S I N ITECHNOLOGICAL INNOVATION
FOR A SUSTAINABLE FUTURE
< 2 0 1 8 >
< A N N U A L R E P O R T >
CONTENTS
MORE ThAN A MANUfACTURER, A dESigN ANd SOLUTiONS COMPANy
COMPANy PROfiLE
fiNANCiAL highLighTS
LETTER TO ShAREhOLdERS
OUR iNdUSTRy
COMMERCiAL REviEw
SUMMARy Of OPERATiONS
fiNANCiAL PERfORMANCE
LEAdER iN TEChNOLOgy ANd CUSTOMER RECOgNiTiON
SUSTAiNAbiLiTy REPORT
COMMUNiTy
TALENT
EThiCS ANd iNTEgRiTy
ThE ENviRONMENT
bOARd Of diRECTORS
iNdEPENdENT AUdiTORS’ REPORT
AUdiT COMMiTTEE REPORT
gLOSSARy
iNfORMATiON fOR iNvESTORS ANd ThE MEdiA
04
08
09
10
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50
MORE ThAN A MANUfACTURER, A dESigN ANd SOLUTiONS COMPANy
<P. 4>
Rassini is a global company that designs and manufactures
components for suspension, brake and anti-vibration
systems for the automotive industry, including both electric
and internal combustion urban, family, off-road, sport,
luxury and commercial vehicles. More than a manufacturer,
Rassini is a design and solutions company.
it is recognized worldwide as a pioneer in the development
of new technologies, thanks to its constant innovation in
engineering products and processes to produce springs,
leaf springs and brake discs.
The company has eight production plants, five technology
centers and offices in Mexico, the United States, Brazil,
germany and Japan, providing components to automakers
in 10 countries, supplied in over eight million vehicles
every year.
furthermore, 51 vehicle models around the world use at least
one Rassini product, supplying major original equipment au-
tomakers like general Motors, ford, Toyota, volkswagen, Tesla,
daimler, Audi, Mercedes benz, Nissan, volvo and Mitsubishi,
among others.
Our competitive advantages are our sophisticated materi-
als, unique processes and product innovation.
Throughout its history, Rassini has received more than 110
awards and recognitions for the quality of its products,
technological development, delivery times, service and
cost-efficiency, including the Daimler Trucks North America
“Masters of Quality Award” and the general Motors “Quality
Excellence Award”, recognizing excellence in performance
and zero defects.
The company has 6,500 employees worldwide, striving to
achieve operational excellence in everything we do, pass-
ing on our “Can do” attitude to the next generations.
#CANdO
6%
8
+6,500
iNCREASE iN SALES OvER 2017
ATTiTUdE
PROdUCTiON PLANTSMExiCO - UNiTEd STATES - bRAziL
EMPLOyEES AROUNd ThE wORLd
wE CREATE vALUE fOR OUR CLiENTS ANd OUR PEOPLE
Reducing the carbon footprint and helping to improve
the environment are priorities for Rassini, which is why
we are working with institutions like the UNAM, instituto
Politécnico Nacional, University of Alabama, University
of Michigan and University of windsor, among others, to
develop new materials that are more resistant, lighter and
friendlier to our planet.
The guiding mission of Rassini is to deliver innovation and
performance to all mobility devices in the world, protecting
the environment and being socially responsible.
COMPANyPROfiLE
SALES by PROdUCT SALES by CLiENT
Leaf SpringsbrakesCoil Springs
58% 40%
27%
9%
5%4%
3%2%
1%
9%
33%
9%
58%33%9%
40%27%9%5%4%
general MotorsfordfCAToyotavolkswagen / MAN
3%2%1%9%
NissanScaniaMercedes-benzOther
fiNANCiALhighLighTS
kEy fiNANCiAL iNdiCATORS
NET dEbT / EbiTdA (TiMES)
SALES(MxN MiLLiON)
EbiTdA(MxN MiLLiON)
NET SALES
EbiTdA
NET OPERATiNg CASh fLOw
AvERAgE CAPiTAL EMPLOyEd
OPERATiNg PROfiTAbiLiTy
OPERATiNg TURNOvER
NET dEbT
gROSS dEbT
CASh
gROSS dEbT / EbiTdA
NET dEbT / EbiTdA
EbiTdA / NET iNTEREST
NET iNCOME
ShAREhOLdERS’ EQUiTy
MiLLiON PESOS
2017
$18,104
$3,366
$2,825
$6,446
52.2
2.8
$591
$2,581
$1,991
0.8
0.2
11.1
$1,475
$6,185
%
TiMES
TiMES
TiMES
TiMES
$19,155
$3,293
$2,524
$6,614
49.8
2.9
$217
$1,821
$1,604
0.2
(0.3)
11.7
$1,331
$6,597
2018
<P. 9>
18
171615141312
(0.3)
0.20.40.71.21.62.2
$19,155
$18,104$16,340$12,897$11,900$10,362$9,392
$3,293
$3,366$3,190$2,141$1,568$1,343$1,203
18
171615141312
18
171615141312
LETTER TO ShAREhOLdERS
<P. 10>
dear Shareholders,
for decades, Rassini has been working to provide solu-
tions for the future. The company has built its success by
anticipating business opportunities, trends and potential
hurdles in the auto parts industry, proving time and again,
as we did in 2018 and will do in 2019, that we not only
think about the future, but also mold and define it based
on comfort, safety and efficient mobility.
we believe in a world in which innovation is a tool to
inspire more ideas, where our work culture makes a real
difference. This is why we strive to be a “great Place to
work”, where our people are resilient, proud, determined
and visionary. We are firmly committed to our employees
and want them to feel like they are members of our family.
we are working in a future where the automation of our
plants is a way to make the best use of employee time in
terms of what’s important. Our focus is on the industry
4.0 enabling employees to use their talents and skills, in
order to enjoy more time with their loved ones.
Our achievements in 2018 lay a very promising path
thanks to the strengthening of our business and our
solid financial metrics.
it is worth mentioning that in the USA, which reported
solid performance with a seasonally adjusted annual
rate (SAAR) of 17.5 million vehicle sales through de-
cember 2018, inventories reached 62 days supply and
other macroeconomic industry indicators maintained a
positive trend (gdP growth, low unemployment rates
and unemployment claims, greater consumer confi-
dence, etc.).
To the future we say this, in 2019, we are a global leader
in the manufacture and design of auto parts. we are, of
course, honored to receive the general Motors Supplier
Quality Excellence Award, the daimler Trucks North America
Masters of Quality Supplier Award, and to be the top pro-
ducer of suspensions worldwide, top supplier of brakes in
the Americas, and one of the 100 most global companies
in the automotive sector.
but, above all, it gives us great satisfaction to know that,
just as in the 80’s, we have been able to face the future,
today we are poised to mold it and to inspire a new way of
doing things.
finally, i want to thank our shareholders, as well as the
rest of our stakeholders, for your trust and commitment to
Rassini.
we are proud to call ourselves Rassini and to talk about the
future from the work we do every day.
Regards,
EUgENiO MAdERO
CEO
March 20th, 2019
Mexico City
<P. 11>
Meanwhile, we are honored that Rassini’s Suspensions
Business Unit is among the top five suppliers in the world,
able to predict product performance and useful life. in
addition, we started to work on a new suspension archi-
tecture in 2018 for vehicles that will be produced in the
upcoming years, including those with electric batteries.
The brakes division has developed and built a dynamometer
to detect and eliminate noise and vibrations in vehicles, as
well as the first noise-canceling system. We also received
approval from general Motors to improve the damping factor
and for the prototype line that will be built in 2019. Rassini
will open its compound materials plant this year, which will
mass produce more than a million parts a year, demonstra-
ting our mastery of material engineering.
The challenges for 2019 are great, but all our efforts are
focused on the road ahead, which includes working to meet
the budget goals set for our business divisions to strengthen
our balance by implementing a deleveraging strategy.
we are feeling good about the fact that today, we recycle
30% of the inputs we use in Mexico and we have reduced
our liquid waste by 45%. it is very important to us that
Rassini continues to adhere to the strictest environmental
standards for the auto industry and trends in vehicle safety,
increasing our capacity to produce lighter parts and, with
this, minimize vehicle carbon footprints while maximizing
performance.
Our Suspensions and brakes divisions are Clean industry
certified, and for the fifth year in a row, the Centro Mexicano
para la filantropía (CEMEfi) recognized Rassini as a Socially
Responsible Company.
we’re working with universities like the UNAM, the instituto
Politécnico Nacional, University of Alabama, University of
Michigan and University of windsor, among others, to develop
new materials that more resistant, lighter and friendlier to
our planet. These are just the first steps for the future we
envision, where social responsibility is not an added value,
but a way of life for all.
OURiNdUSTRyAn environment with a positive outlook
The North American auto industry experienced a slight drop
of 1% in 2018, reporting production of 16.9 million light
vehicles. however, the light truck segment (Pick-ups, SUvs,
CUvs and vANs), which use Rassini suspension and brake
components, continued an upward trend. The 11.7 million
units produced this year represent a year-over-year growth
of 4.5%.
The production mix in 2018 was 70% light trucks and 30%
cars, compared with 2017, which reported 69% light trucks
and 31% cars. Light trucks remain the most profitable seg-
ment for assembly plants, which strategically have stopped
production on various car models to focus on light trucks.
in the United States, light vehicle sales closed 2018 with
17.5 million units, seasonally adjusted annual rate (SAAR),
exceeding ihS (industry experts) expectations, which in
September forecasted 17.1 million vehicles sold.
industry analysts estimate that production in North America
will remain at stable levels between 2019 and 2023, expec-
ting this rate to fluctuate between 16 and 17 million vehicles
per year. Of note is that the expected adjustment will be in cars.
Meanwhile, the brazilian economy continues to show good
signs of stability with good prospects for the coming years.
The production of heavy trucks reported a 27% growth in
2018, this being the principal market for Rassini in the region.
<P. 12>
vehicle sales in brazil were 2.5 million units in
2018, 13% higher than in 2017, and the total vehicle
production was 2.8 million units, a year-over-year
increase of 17%. industry experts estimate that
vehicle production in brazil will show annual in-
creases of around 5% until 2023, when production
is forecast to reach 3.8 million units.
11.9
11.7
5%
MiLLiON UNiTS SOLd iN ThE USA(LighT TRUCkS)
MiLLiON UNiTS PROdUCEd iN ThE USA(LighT TRUCkS)
ANNUAL iNCREASE iN PROdUCTiON iN bRAziL UNTiL 2023
<P. 13>
COMMERCiALREviEwThe company is consolidating in the North American market and strengthening its relationships with the US government
Today, Rassini’s annual sales exceed $19 billion pesos (80%
of which is foreign currency income). Rassini sells to 14
countries, principally Mexico, the US and brazil. we operate
a supply chain with 1,400 domestic and 240 foreign suppliers,
creating a spillover of US$5 billion in the last 10 years.
Rassini manufactures brakes and springs in flint, Michigan
and Montpellier, Ohio, in the United States, with sales to
Nebraska, wisconsin and Texas for US$128 million per year,
creating more than 250 direct jobs.
in 2018, we won the multi-leaf spring business for the next
generation of Ranger vehicles (P703) and general Motors
high-performance pick-up trucks. Rassini also confirmed its
place as a leader in technology with the successful launch
of a hybrid multi-leaf spring in the light truck sector for gM
Sierra/Silverado Ld. A new steel supplier was developed and
approved in the USA and also a new component warehouse
project to improve operating efficiency by 20%.
Rassini participated in the event Technological innovation
and Management organized by ford, presenting an adjus-
table leveling system, built in record time in a ford f-150
truck, which was shown to more than 60 ford testers.
Furthermore, the successful transition and certification
in the new iATf16949 / iSO 14001 and the new Q1 was
fundamental to confirm Rassini as an essential supplier
to the automotive sector in 2019. Additionally, 17 custo-
mer-planned audits were conducted receiving satisfactory
results, enabling Rassini to approach new business and to
reach new customers.
The brakes division developed and built a dynamometer to
detect and eliminate noise and vibrations in vehicles, and
also developed the first noise-canceling system. Rassini
received gM’s approval to improve the damping factor and
for the prototype line that will be built in 2019.
<P. 14>
Rassini is one of the top five anti-vibration suppliers in
the world, able to predict product performance and useful
life, striving to become a zERO accidents, zERO PPM, totally
automated and digitized company to achieve world class
manufacturing status.
Of note is that the company has consolidated strong rela-
tionships in the US with state governors and in washington
dC, with senators, representatives and state secretaries in
the current administration, explaining the fundamental role
of Mexico, how the auto industry works, its global supply
chains, and the advantages of trade relations.
digiTizATiON Of ALL OUR COMMERCiALANd PROdUCTiON PROCESSES
<P. 15>
SUMMARy Of OPERATiONS
Rassini has operations in the USA, Mexico and brazil, and our
products and mobility solutions are delivered to 10 coun-
tries in the Americas, Europe and Asia. we have the capacity
to supply brakes for 4 of every 10 vehicles in the US and
suspensions for all of the Pick-ups in North America, where
16.9 million light vehicles are produced each year.
we have been using an industrial 3d printer since 2017,
considered the fastest in the Americas, which produces
prototypes in just two hours (this process took at least six
weeks). with this speed, Rassini can develop samples to
find the design that best satisfies the automakers’ needs
and, in turn, the end consumer.
in 2018, we implemented a new suspension architecture for
vehicles being produced in the coming years, including those
with electric batteries. The idea is to include new concepts
in multi-leaf springs with compound materials and steel,
according to customer needs. in addition, we began research
on materials and fibers to start the next generation (2025)
of coil springs, optimizing performance, processing capacity
and cost. Rassini has implemented 12 new automatic data
management measuring instruments, which were developed
and installed to improve times and precision, facilitating the
decision-making process for key operations.
Six data management systems were developed and/or
upgraded to reduce the process time for administrative
or data management tasks (RPA project for accounts payable,
payroll system (fortia) in Piedras Negras and xalostoc,
SiROPP linkup with plant data, augmented reality prototype
that will be used as a training tool for thermal treatment,
salesforce for APQP control, and SCRUM methodology for
better project control).
Rassini is embarking on new projects and negotiations for
materials that will improve financial performance, flexibility
and productivity in 2019.
The company also developed the first phase of a new
workplace strategy, which includes new approaches for
the workers’ needs and services, strengthening our social
responsibility actions. A supervisor program was implemen-
<P. 16>
innovation is a priority, seen throughout the company
ted to standardize our technical and administrative know-
how, including a culture of critical thinking to analyze and
solve problems, with more than 300 people trained.
Rassini will inaugurate its compound materials plant in
2019, confirming its leadership in material engineering,
with a production capacity of more than a million parts
per year.
Today, Rassini has a polymer with the same properties as
steel, but with 30% less weight.
The company is also participating in the construction of a
folding electric smart car developed by City Transformer, a
company based in Tel Aviv. This is a car that has only 1,000
parts (instead of the 30,000 that traditional vehicles have),
that can reach 90 kilometers per hour (55 mph), carry two
passengers and park in the space of a motorbike, thanks
to an automatic contracting system.
More than 300 Rassini engineers have been trained in the
Internet of Things, Big Data, Digitization and Artificial In-
telligence, and new technologies at Singularity University.
Rassini received Clean Industry recertification from the
Mexican authorities for 2019.
<P. 17>
iN 2018, iT bEgANAN ARChiTECTURE OfSUSPENSiON fOR ThEvEhiCLES Of ThENExT yEARS
fiNANCiALPERfORMANCERassini is in the process of delisting from the Mexican Stock Exchange
Thanks to good financial management, Rassini’s financial
indicators continued to report healthy levels, in addition
to being a company recognized for its profitability, with
continual increases in sales and marginal profits. In 2018,
the consolidated EbiTdA was $3.293 billion pesos, a 2%
decrease compared to 2017 due primarily to the end of
the extraordinary contract, an increase in energy prices
and the “phase in-phase out” of major platforms that
were replaced with the new model during the second
half of 2018.
Net consolidated income was $1.331 billion pesos, or the
equivalent of $4.16 pesos per share, representing a 10%
decrease, due to the reduced benefit from deferred taxes
as a result of the application of lower tax losses in 2016
and 2017.
Meanwhile, consolidated sales increased 6% in 2018,
compared with 2017, thanks to gains in market share in
the brakes segment, the recovery of the brazilian automo-
tive sector and the start of production regarding contracts
awarded in previous years. The distribution of sales in
2018 was 89% in North America and 11% in brazil, where
the team has been reorganized. Suspension components
represented 67% of sales, while brake discs made up the
other 33%.
Operating cash flow decreased 11% year-over-year to
$2.524 billion pesos, due to the increased taxes paid in 2018
as a result of the application of the last tax losses in
2016 and 2017. The consolidated cash balance was $1.604
billion pesos as of december 31st, 2018.
Rassini’s consolidated debt in US dollars as of december 31st,
2018 decreased to $25 million, compared with $131 million
at the end of 2017. The consolidated cash balance at the end
of 2018 was US$81.5 million.
it is worth mentioning that sales of light trucks increased
6% over the previous year, while passenger vehicles
decreased 9%. inventories reported 62 days of supply at
the end of december, two days above the industry ideal
<P. 18>
of 60 days and one day above the previous year. All this
was due to different macroeconomic industry indicators,
which maintained their positive trend (gdP growth, low
unemployment rates and unemployment claims, greater
consumer confidence, etc.).
The brazilian market continued to recover in 2018, experien-
cing a year-over-year growth of 17% in vehicle production.
Sindipeças expects production to increase 5% in 2019 to
an annual production of 3.1 million vehicles, with growth
outlooks of 5% per annum for the coming years.
The deutsche bank factoring facility was renewed to 2021,
with a US$21M increase (US$66M total line), while new
clients were added to Rassini’s portfolio, resulting in a 16%
decrease in the all-in cost.
Also other achievements in 2018 were the implementation
of Onesource Tax Provision software at bypasa, Rassini
Suspension and Rassini brakes, digitizing and standardizing
the tax calculation processes.
The principal shareholders of Rassini recently purchased
the shares traded on the Mexican Stock Exchange, and in
2019, Rassini is expected to become a privately owned
company focusing on growth, innovation and development
of products.
<P. 19>
In general terms, we can report that our financial indica-
tors remain at healthy levels due to the following results
reached in 2018:
$3.293
$1.051
$2.524
(0.3x) 11.7x
biLLiON PESOS
iN EbiTdA
biLLiON iNCREASE
iN NET SALES
biLLiON PESOS NET
OPERATiNg CASh fLOw
NET dEbT TO
EbiTdA (ANNUALizEd
AS Of dECEMbER 31ST)
EbiTdA TO
NET iNTEREST
AS Of dECEMbER 31ST
<P. 20>
ThE bRAkES diviSiON REPORTEd 4% gROwTh iN NORTh AMERiCAREgiON
<P. 21>
LEAdER iN TEChNOLOgy ANd CUSTOMER RECOgNiTiON
being a leader in technology means having the freedom to
create, connect, manage, protect, discover, save and, most
importantly for us, to work efficiently and safely.
in keeping with this, for Rassini 2018 was a year of using
disruptive technologies looking toward the digitization of
the company to improve productivity, cybersecurity and
collaboration.
in this regard, we started a Robotics Process Automation (RPA)
pilot program, where a digital robot focuses on error-free
productivity. This pilot program increased productivity by
more than 50%.
following our digital transformation strategy, a cloud-based
platform was implemented, which in addition to improving
productivity, reduces capex.
An Augmented Reality (AR) prototype was also developed
to monitor phosphating, giving the operator feedback from
the equipment and the ERP system in real time, using an
immersive technology.
The cybersecurity initiatives implemented have aided in
ensuring the continuity of the business in the face of new
threats. A cyberattack simulation tool to prevent identi-
ty theft was added to staff training and experts were
contracted to develop an integral cybersecurity strategy.
A cutting-edge software was launched based on finite
element modeling. This simulation software predicts
failures due to material fatigue. Additionally testing
equipment was put into operation, which can test at
700hz, in addition to the previous capacity of 250hz, to
validate anti-vibration products.
<P. 22>
Rassini has embraced the challenge of digitizing the company, optimizing production through artificial intelligence, while strengthening our cybersecurity systems
RASSiNi iS RATifiEd AS A TEChNOLOgiCAL LEAdERwiTh ThE iNTROdUCTiON Of A hybRid LEAf SPRiNgiN ThE LighT TRUCk SECTOR
<P. 23>
Regarding suspensions, key platforms were successfully
launched for general Motors, ford and Mercedes benz.
Rassini confirmed its place as a leader in technology with the
introduction of a new hybrid leaf spring in the light
truck sector.
Rassini also continues to actively participate in the
construction of a folding electric smart car, created by City
Transformer, a company based in Tel Aviv.
SOCiALLy RESPONSibLE COMPANy 5Th yEARiN A ROw
gPTw 3Rd yEAR iN A ROw
SUSTAiNAbiLiTyREPORTOur priorities our people and the environment
<P. 26>
Community
At Rassini, we have a strong commitment to support,
empathy and solidarity, and this applies not only within the
company, but also looking outside our doors to contribute
to the wellbeing and quality of life of the communities where
we work.
Thus, since its beginnings, the company has played an im
portant role in the local economy, providing direct and
indirect jobs for local residents.
when our communities are affected by contingency or
emergency situations, we band together and deliver
immediate support with financial or in-kind donations
(such as power generators, fuel and safety equipment) and
we work directly in the areas affected providing clean-up,
organizing or repairs as needed, coordinating teams of
volunteer employees to help out. we have supported
communities in Coahuila, Puebla, Oaxaca, Chiapas, Mexico
City and Texas in this way.
we operate an educational development program through
the Real del Norte Community Center in Piedras Negras,
which has a computer lab, audiovisual lab, classrooms, and
a library.
we offer programs for people to complete their high school
diploma in less than two years. we also donate equipment to
Respecting the environment, valuing our talent and
supporting the community have been major factors con-
tributing to Rassini’s well-earned reputation and success.
Our model of corporate sustainability, starting with senior
management, charts our relationship with stakeholders
and their needs. Rassini’s corporate governance defines
the sustainability criteria of the company, which are re-
flected in our social, environmental and economic impacts.
We are Clean Industry and ISO 14001 certified, a recognized
Socially Responsible Company, and we complied with the
UN global Pact.
schools, including computers, calipers for engineering pro-
grams and microscopes for research departments (benefiting
more than 2,400 students).
A few months ago, we donated a robot to the Universidad
Politécnica de Piedras Negras, tool that will aid in the pro-
fessional development of future engineers.
Rassini frequently participates in symposiums, invention
competitions, conferences, workshops and forums, providing
support as sponsors, speakers, judges, consultants and exhi-
bitors, where our employees share their broad experience
with student participants. Rassini participates in educational
relevance and linkage committees, contributing to the
restructuring of study plans and programs to meet the needs
of the job markets for the industries in the region.
in coordination with universities, we invite students to com-
plete their community service with us performing machine
maintenance and we offer teachers and students training in
the use of tools.
<P. 27>
we also have groups of volunteers that participate in the
organization of cultural and sports activities, as well as teams
that work on school remodeling projects and visit hospitals
to deliver personal hygiene kits.
iN RASSiNi, wE ALigNOUR OPERATiONS TO ThE gLObAL PACT Of ThE UNiTEd NATiONS
we recall that 20 years ago, thanks to the company’s growth,
we built the “Real del Norte” residential complex with 850
homes, a park and recreational. On one hand, it was difficult
to find local personnel, while on the other hand, there was
a high turnover rate in the area and a shortage of available
housing for the more than 700 employees who were coming
to the city from around the country.
Through iNfONAviT programs and mortgage loans, the resi-
dential complex became a reality, and today, together with
its green spaces, has become part of the city.
<P. 28>
1
850
700
RECREATiONAL PARk
hOMES
PiEdRAS NEgRAS, COAhUiLA
EMPLOyEES
fROM AROUNd
ThE COUNTRy
SiNCE iTS fOUNdATiON, RASSiNi hAS PLAyEd AN iMPORTANT ROLE iN ThE REgiONAL ECONOMy, CREATiNg diRECT ANd iNdiRECT JObS fOR LOCAL RESidENTS
REAL dEL NORTE
<P. 29>
Talent
At Rassini, we believe that our people are the most im-
portant asset in our organization. Our hiring process does
not discriminate by reason of ethnicity or nationality,
age, disability, social status, health, religion, immigration
status, opinion, sexual orientation, marital status, or any
other violation of human dignity; upholding the principles
of gender equality, inclusivity, human rights and worker
rights, adapting to the cultural and legal aspects of each
country where the company operates.
we encourage our employees to feel that their work has
special meaning, that it is more than “just a job”. This
is the basis for our recognition programs and practices,
through social development actions, that involve not only
employees, but their families as well. We firmly believe
in the importance of having a balance between work and
personal life.
Opportunities for everyone at Rassini
At Rassini, we respect gender equality. Our recruitment and
hiring processes, as well as our promotion system, focused
on talent and not on gender, age or social status. when
there is an opening, the opportunity to apply is offered
equally to women and men, regardless of their current
position and level, provided they meet the requirements
for the open position.
disabled employees are assigned tasks that are appropriate
to their condition. in addition, we subscribe to the UN global
Pact, which includes the elimination of discrimination in em-
ployment and occupation among its 10 principles.
it is of note that 66% of our workforce are millennials, the-
refore we strive to ensure our practices are aligned with the
interests of this generation. we use videos and images to
capture their attention and communicate effectively, and
<P. 30>
place special emphasis on topics of interest like social
responsibility, social development and sustainability,
among others.
Promotions and incentives are achievement-based;
we involve our millennials in our innovation processes
through their positions or projects, offering the oppor-
tunity to participate in activities that will transform the
company and influence the automotive industry.
They are offered opportunities for growth both in their own
country and abroad at other company plants. They also
participate in programs that ensure work-life balance, such
as flex-time and special leave, among others.
Communication as the key to grow
An effective communication between management and em-
ployees is critical for good performance and the basis for
our Rassini Leadership program. Our tools include an inte-
raction Process, the goal of which is to improve management
and employee communications, one-on-one or in groups,
fostering and improving interpersonal relationships with
a positive impact on others. Additionally, Rassini has an
open-door culture, where employees are encouraged to
approach senior management to address any issue either
work-related or personal. This is also reflected in the design
of our office spaces, where staff are in direct contact with
each other.
in addition to these channels that promote communication,
employees can make suggestions and get involved in making
<P. 31>
OUR COLLAbORATORS hAvE gROwTh OPPORTUNiTiES iN OThER PLANTS Of ThE gROUP, iNSidE ANd OUTSidE ThE COUNTRy
the decisions that affect positively their work through our
Ongoing improvement Program. This program encourages
personnel, either individually or as a team, to participate
through suggestions and “kaizen”, team projects under the
“Path to Excellence” methodology, individual and/or team
projects applying ‘Lean’ tools, and team projects using the
Six Sigma methodology.
<P. 32>
Code of Ethics and integrity
Of note is our integrity platform, where employees can
report incidents or suggest improvements anonymously.
The platform has a mobile app, hotline and website. we
also use Ethicsglobal, a new system for reporting violations
of our Code of Ethics.
Rassini’s culture of integrity is built by all employees and
members of our organization, through their attitudes
and actions both within and outside the organization, in
the day-to-day. And this is very important as it directly
impacts our reputation and our success.
To achieve this, we have implemented a model known as
integrity, essentially a relaunch of our Code of Ethics and
Conduct, which seeks to foster and strengthen adherence
to this code in both the workplace and our personal lives.
Our Code of Ethics and Conduct outlines eight principles:
1. Staff relations
2. Customer satisfaction and quality
3. business practices
4. Anti-corruption, transparency and conflicts of interest
5. vendor relations
6. Confidential and/or privileged information
7. Communication
8. Enforcement of the Code of Ethics and Conduct
Phone
01 800 002 (468-347)
website
www.integrity-rassini.com
Ethicsglobal app
EvERyONE hAS A PART TO PLAy iNbUiLdiNg RASSiNi’S CULTURE Of iNTEgRiTy
One of the key tools in the integrity model, supported by
confidentiality and respect, is the platform EthicsGlobal,
our new communications channel for receiving reports
and comments. Together with this, we have reinforced our
follow-up and control mechanisms for reports presented
by employees on the different platforms.
Our Ethics and Conduct Committee serves as a representa-
tive and mediator for employee interests to lend assurance
to the procedure for handling reports, in addition to ensuring
the proper dissemination and application of the Code of
Ethics and Conduct.
We believe that embodying our values benefits both our-
selves and those around us. Therefore, we encourage all
inappropriate conduct to be reported.
<P. 34>
Recognitions and training
in terms of the growth and development of our personnel, we
offer training programs that promote a culture of innovation
within Rassini. we believe that the more information our ope-
rators and engineers have about their respective fields, the
better equipped they will be to make appropriate decisions,
offering creative solutions to new problems that arise along
the way. As a result, more than 300 Rassini engineers have
received enhancement training and in new technologies
from Singularity University.
we are collaborating with the Mexican government on the
“CONOCER” program (National Council on the Standardization
and Certification of Job Skills), for the skills acquired while
working at the company to be acknowledged with academic
qualifications. The company is also a partner in the Volkswagen
dual Training program to offer academic technical training
opportunities to engineers and operators.
Other activities to promote the training and development
process include readings, in-person and e-Learning courses,
visits to other companies, benchmarking, fairs, expos, semi-
nars, diploma courses, conferences, symposiums, roundtables,
research, projects, clusters, as well as coaching and monitoring
from supervisors.
finding and developing talent
Rassini places high value in young talent, which is why
we have a program to attract talent aimed at students
in technical college and university programs related to the
company’s processes. Through agreements with different
educational institutions, visits, fairs, conferences, inter-
views and job fairs, students from the local community,
region, around the country and around the world are
encouraged to participate in industrial internship
<P. 35>
opportunities. interns are assigned a mentor and a pro-
ject to work on during their internship.
Another action to promote hiring students is through the
“Modelo Mexicano de formación dual” (dual study model),
under an agreement with COPARMEx and the Coahuila
CONALEP school system, to develop student training at
the company. fifteen young students have participated
in this program since 2015, we currently have five trai-
ning with us.
Our employees can see the value and appreciation of their
work through different recognitions the company receives
from our customers, such as the general Motors Supplier
Quality Excellence Award, the daimler Trucks North America
Master of Quality Award, and the fiat Chrysler Automo-
tive Recognition of Partnership & improvement Award,
wE OffERONgOiNg ENhANCEMENTTRAiNiNg ANd UPdATESiN TEChNOLOgiES
among others, acknowledging the good work of all Rassini
employees.
Rassini’s commitment to our people is one of the principal
reasons we are continually recognized as a Socially Responsible
Company, as we cultivate a better quality of life and care
about safety at our plants.
The Environment
Moving into the future means taking a great responsibility
to the planet and in these times of dramatic changes and
situations like global warming, humanitarian crises and
shortage of resources, we have the opportunity to con-
tribute with solutions. Rassini has always been known as a
company that complies with environmental regulations and
for being socially responsible. That will not change, which
is why we are committed to innovation and using renewable
technologies, and we will continue to take actions that
contribute to caring for the environment.
In terms of specific actions, Rassini Brakes has a solar panel
system installed that supplies the power needs of our
administrative spaces and common areas.
We installed a filter press at our Rassini Wastewater Treatment
Plant to separate the solids from the liquids efficiently and to
dispose of the sludge properly, improving the treatment of
wastewater and reducing the moisture the sludge produces.
The next project is the automation of the process for the
addition of the cationic polymer to the sludge tank, to im-
prove efficiency and facilitate the operation. This process was
started in March 2018, after determining that the sludge was
generating a high amount of moisture in the land –owned
by Rassini–. Another program we are proud to mention is
our confinement system for the dust generated by the brake
casting process, preventing the release of this pollution into
the environment.
we operate a nursery at our Piedras Negras plant, from which
we donate more than 10,000 plants each year (stone pine,
avocado, ash, date palm, and oak, among others). we also pro-
mote a culture of recycling at our facilities. Of note is that with
the support of our leaders, many of the ideas that have come
from our employees have been put into action with initiatives
like recycling campaigns, reuse of inputs, among others.
We received the new ISO 14001:2015 certification on April
27th, as a company committed to reduce pollution and the
environmental impact from our operations.
At Rassini, we use resources like energy and water respon-
sibly and carefully, and we are constantly striving to reduce
our contaminant emissions. in 2019, we will use 40%
recycled water and 40% of our power will be imported from
the US thanks to our power and water projects.
<P. 36>
waste
Seeking to optimize the use of pallets and reduce waste,
Rassini brakes has started to transition from using wood
pallets to plastic ones, which have more than double the
useful life. worn wood pallets are constantly being
restored to extend their useful life. Approximately 1,200
pallets are recovered each month.
water
Rassini bypasa automated its phosphating line, a wa-
ter-intensive process that generates hazardous waste,
which has reduced water consumption by nearly 70%. A
water treatment plant will be installed for this particular
process in 2019 to recirculate 100% of the water used.
Energy
Rassini brakes continues to invest in generating clean energy
onsite. we will be starting a project in 2019 to expand the
output of our solar panels by 60%. The project to replace all
traditional lighting with an automated lighting system at our
plants was completed in 2018, adjusting the light intensity
according to the natural light.
inputs
The Rassini bypasa engineering team, in collaboration with
ford, has developed a bushing that replaces a portion of
the mineral oil used with soybean oil. Additionally, we will
start to produce coil springs in 2019 using a plastic fiber
compound, which reduces the weight of the product by
30%, lowering vehicle fuel consumption.
bOARd Of diRECTORS 2018
diRECTORSAntonio Madero brachoChAiRMAN Of ThE bOARd
Eugenio Madero PinsonChiEf ExECUTivE OffiCER
Carlos Autrey MazaJavier bours Castelo Enrique bours MuñozEverardo Elizondo AlmaguerJames Robert JonesShannon k. O’Neilvicente grau AlonsoAntonio Madero Pinson Arturo Pérez Arredondo Javier Pérez Rochafernando Ruiz SahagúnAlberto Saavedra Olavarrietaguillermo francisco vogel hinojosa
ALTERNATE diRECTORSfernando del Castillo ElorzaAlfredo Elías AyubJuan Pablo Sánchez kanter
SECRETARy Of ThE bOARdJuan Pablo Rosas Pérez
(i) independent
(i)
(i)(i)(i)(i)
(i)(i)(i)(i)(i)
(i)(i)
President
President
President
President
President
ExECUTivE COMMiTTEEAntonio Madero brachoJavier bours Castelo Eugenio Madero Pinson fernando Ruiz Sahagún Javier Pérez Rocha
ALTERNATESAntonio Madero Pinson Enrique bours Muñoz Carlos Autrey Maza Alberto Saavedra Olavarrieta
AUdiT COMMiTTEEfernando Ruiz SahagúnAlberto Saavedra Olavarrieta Enrique bours Muñoz
CORPORATE PRACTiCES COMMiTTEEJavier Pérez RochaJavier bours Castelo Everardo Elizondo Almaguer Antonio Madero bracho Eugenio Madero Pinson Alberto Saavedra Olavarrieta
ShARE bUybACk SUbCOMMiTTEEAntonio Madero brachoJavier bours Castelo Eugenio Madero Pinson Javier Pérez Rocha Alberto Saavedra Olavarrieta
COMPENSATiON SUbCOMMiTTEEJavier Pérez RochaJavier bours Castelo Everardo Elizondo Almaguer Antonio Madero bracho
<P. 39>
Opinion
We have audited the consolidated financial statements of
Rassini, S. A. b. de C. v. and its subsidiaries (the Company),
which comprise the consolidated statement of financial
position as at december 31, 2018, and the related consoli-
dated statements of comprehensive income, of changes
in equity and of cash flows for the year then ended and
notes to the consolidated financial statements, including
a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial
statements present fairly, in all material respects, the con-
solidated financial position of the Company as at December
31, 2018, and its financial performance and its cash flows
for the year then ended in accordance with international
financial Reporting Standards as issued by the international
Accounting Standards board (ifRS).
basis for Opinion
we conducted our audit in accordance with international
Standards on Auditing (iSAs). Our responsibilities under those
standards are further described in the Auditor’s Responsi-
bilities for the Audit of the Consolidated financial Statements
section of our report. we are independent of the Company
in accordance with the Ethics Standards of Mexican institute
of Public Accountants together with other requirements
applicable to our audit of the consolidated financial state-
ments in Mexico. We have fulfilled our other ethical re-
sponsibilities in accordance with these requirements and
standards. we believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis
for our opinion.
key Audit Matters
key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the con-
solidated financial statements of the current period. These
matters were addressed in the context of our audit of
the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a
separate opinion on these matters.
To the Shareholders and directors of Rassini, S. A. b. de C. v. and its subsidiaries
iNdEPENdENT AUdiTOR’SREPORT
<P. 40>
key audit matter
Recoverability of the book value of the goodwill.
As mentioned in Note 4 “Summary of accounting policies”
and in Note 17 “Goodwill” to the consolidated financial
statements, the Company performs annual impairment
tests of its intangible assets with an indefinite useful life,
specifically, its goodwill. .
we have focused on this item in our audit due, mainly,
to the importance of the balance of goodwill ($437,382
thousand pesos as of december 31, 2018) and because
significant management judgments are required to
prepare its financial projections to determine the future
business results and the relative recovery value.
In particular, we focus our audit efforts on the cash flows
projections of the CgU of suspensions, to which the good-
will is assigned, and in the most relevant cases, which are
the income growth rate and the discount rate determined
by the Company and applied to future cash flows forecasts.
how our audit addressed the key audit matter
we have evaluated and considered the processes establi-
shed by Management for the preparation of projections
of future cash flows. We note that the administration has
followed its defined processes to prepare the forecasts of
future cash flows, which were analyzed and approved in
due time by the board of directors.
we have compared that the base information for the
elaboration of the projections of future cash flows was
consistent with that used by the Management in previous
projections, with the budgets approved by the Mana-
gement and with the historical trends of results of the
Company and we requested the Management clarifications
regarding the variations identified.
we have compared the actual results of the current year
with the figures budgeted the previous year for the current
year, to consider if some assumption included in the pro-
jections could be seen as very optimistic.
we have relied on valuation experts to evaluate the as-
sumptions used by Management, comparing the revenue
growth rate with economic and industry forecasts for this
business segment.
we have recalculated the discount rate, considering the cost
of capital of the Company and of comparable companies.
we discussed with Management the sensitivity calcula-
tions on the recovery value of the CgU and we evaluated
the degree to which the assumptions would need to be
modified in order for impairment to be required and the
relative disclosures included in the notes to the consoli-
dated financial statements.
<P. 41>
Other information
Management is responsible for the other information. The
other information comprises the annual report presented
to Comisión Nacional bancaria y de valores (CNbv) and the
annual information presented to shareholders but does
not include the consolidated financial statements and our
auditor’s report thereon, which is expected to be made
available to us after the date of this auditor’s report.
Our opinion on the consolidated financial statements does
not cover the other information and we do not and will not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated finan-
cial statements, our responsibility is to read the other
information identified above when it becomes available
and, in doing so, consider whether the other information
is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
when we read the other information not yet received, we
will issue the report required by the CNbv and if we con-
clude that there is a material misstatement therein, we
are required to communicate the matter to those charged
with governance and, if required, describe the issue in our
report.
Responsibilities of Management and Those Charged with
governance for the Consolidated financial Statements
Management is responsible for the preparation and fair
presentation of the consolidated financial statements
in accordance with ifRS and for such internal control as
management determines is necessary to enable the
preparation of consolidated financial statements that
are free from material misstatement, whether due to
fraud or error.
In preparing the consolidated financial statements, manage-
ment is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless management either
intends to liquidate the Company or to cease operations,
or has no realistic alternative but to do so.
Those charged with governance are responsible for over-
seeing the Company´s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated
financial Statements
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accor-
dance with iSAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggre-
gate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with iSAs, we exercise
professional judgment and maintain professional skepti-
cism throughout the audit. we also:
• Identify and assess the risks of material misstatement of
the consolidated financial statements, whether due to fraud
or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepre-
sentations, or the override of internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Compa-
ny’s internal control.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
<P. 42>
exists related to events or conditions that may cast sig-
nificant doubt on the Company’s ability to continue as a
going concern. if we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s
report to the related disclosures in the [consolidated]
financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s
report. however, future events or conditions may cause
the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content
of the consolidated financial statements, including the
disclosures, and whether the consolidated financial state-
ments represent the underlying transactions and events in
a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business ac-
tivities within the Company and subsidiaries to express
an opinion on the consolidated financial statements. We
are responsible for the direction, supervision and perfor-
mance of the Company and subsidiaries audit. we remain
solely responsible for our audit opinion.
we communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
we also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communi-
cate with them all relationships and other matters that
may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
from the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the consolidated financial
statements of the current period and are therefore the key
audit matters. we describe these matters in our auditor’s
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated
in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.
The engagement partner on the audit resulting in this
independent auditor’s report is stated below.
PricewaterhouseCoopers, S.C.
Juan Luis garcía
Audit Partner
Mexico City,
March 20th, 2019
<P. 43>
in compliance with the new Mexican Securities Market
Law (Ley del Mercado de valores) and in my capacity
as Chairman of the Rassini, S A b. de C.v. (Rassini) Audit
Committee, we deliver this report so that, in due course,
it may be submitted for the consideration of the Ordi-
nary general Shareholders Meeting.
To analyze the 2018 operations, the Audit Committee held
seven meetings on the dates of: April 18, July 11, Sep-
tember 25, October 17 and december 26, 2018, february
20 and March 20, 2019. in addition to the members of the
committee, these sessions were attended by the Chair-
man of the Board of Directors, the Chief Executive Officer,
the independent auditors, the Chief Financial Officer, the
Internal Audit Officer, as well the Rassini officers whose
presence was requested by the Committee. The actions
and resolutions adopted were approved in the correspon-
ding minutes.
The principal matters considered at these sessions were:
i. general provisions applicable to the Entities and issuers
regulated by the Mexican banking and Securities Commis-
sion (Comisión Nacional bancaria y de valores) “bulletin
for independent Auditors”.
Regarding the contracting of the independent Outside
Auditing firm and Auditor to review the Rassini financial
Statements and issue the independent Auditor’s Report,
and compliance with the related requirements set by these
provisions, as well as the drafting of the communiques
and opinions referenced in the provisions, this Committee
supervised, and documented accordingly, full compliance
with:
∙ The requisites the Independent Outside Firm and Auditor
is required to satisfy.
∙ Compliance with applicable regulations for Independent
Audits, as well as the content of the independent Auditor’s
report and other communiques and opinions.
March 20th, 2019
Mexico City
To the Members of the board of directors, Rassini, S.A.b. de C.v. and Subsidiaries
<P. 45>
AUdiT COMMiTTEE REPORTRASSiNi, S.A.b. dE C.v. ANd SUbSidiARiES
∙ Compliance with the provisions regarding the contracting
of the firm.
∙ Monitoring the work of the Independent Outside Firm and
Auditor.
∙ Review of the work performed by the Independent Outside
firm and Auditor.
– Services other than the independent audit of the finan-
cial Statements.
– Compliance by the independent Outside firm and Au-
ditor with the arm’s length requirements set by article
6 of the provisions.
– The results of the review of the independent Auditor’s
Report and accompanying financial Statements, as well
as the communiques and opinions of the independent
Auditor as referenced in article 15 of these provisions.
– discussion and follow-up on the implementation of
preventive and corrective measures resulting from the
independent audit, according to the action plan refe-
renced in article 15, last paragraph, of these provisions.
∙ The filing of the Independent Auditor’s Report, as well as
other communiques and opinions, with the Mexican ban-
king and Securities Commission.
ii. Review of the internal Control System:
On consideration of the results of the operational reviews
of the internal Control System provided by the internal
Auditor, the independent Auditor and the Company CEO,
in compliance with applicable law, this Committee finds
that Rassini’s internal accounting control system satisfies
the control objectives of Management and offers reaso-
nable security, in all material aspects, to prevent or detect
errors or irregularities in the normal course of business.
iii. Review of the internal Audit duties:
The Audit Committee is kept abreast of the internal
Audit department’s needs to ensure they have the human
and material resources required to properly execute
their duties. in this regard, the 2018 scheduled work and
activities were carried out satisfactorily. furthermore
the members of this Committee have met with internal
Audit department staff, without other corporate officers
being present, to gather the information deemed perti-
nent for this review.
iv. Review of the independent Audit:
The contract terms for the services of the independent au-
ditor to review the financial statements for the year ended
december 31, 2018 were discussed and the fees approved.
The Audited financial Statements through december 31,
2018 were received from the independent Auditor, reporting
a clean audit with no observations. Additionally, the work
of the independent Auditors, PricewaterhouseCoopers, S.C.
and Mr. Juan Luis garcía, CPA, tasked with the audit, was re-
viewed and deemed satisfactory. The independent Auditors
confirmed their arm’s length.
The members of the Committee have met with the in-
dependent auditor without the company officers being
present, having received their full collaboration to provide
additional information regarding the matters addressed,
on request.
v. financial information:
The company’s financial statements were discussed with
the management responsible for their preparation and
review. Additionally, we were informed by the internal
Audit department that there were no observations made
with regards to the financial information reported for the
March, June, September and december 2018 quarters,
which were approved by the Committee for filing with the
Mexican Stock Exchange.
in preparing this report, we listened to relevant company
management, without hearing a difference of opinion.
vi. CEO Report:
The Committee received and approved the report pre-
pared by the CEO regarding the company’s activities
in 2018.
<P. 46>
The digital version of Rassini S.A.b. de C.v. Annual Report
2018, as well as the consolidated financial statements
with their respective notes are available in the following
addresses:
2018 Annual Report (Pdf)
https://www.rassini.com/pdf/2018_annual_report.pdf
Consolidated financial Statements 2018 (Pdf)
https://www.rassini.com/pdf/2018_Consolidated_
financial_Statements.pdf
vii. Legal Report:
The Committee received the legal reports prepared by
the Rassini Legal department regarding the status of
current legal matters and litigations.
viii. Proposal:
based on that presented, we recommend the board of
directors submit the Rassini financial Statements for the
year ended december 31, 2018 for the approval of the Sha-
reholders Meeting.
Lastly, i hereby certify that there was no occurrence of any
of the operations mentioned in article 28, section iii, sub-
sections (a), (b) and (c) of the Mexican Securities Market
Law during the period reported.
Regards,
fernando Ruiz Sahagún
<P. 47>
CONSOLidATEd fiNANCiALSTATEMENTS 2018
Rassini, S.A.b. de C.v. and Subsidiaries
gLOSSARy
1. Asian and European: Common auto industry term to jointly
refer to Toyota, Nissan, honda, bMw, Renault, Mercedes benz
and volkswagen, primarily.
2. Light trucks: Automotive segment comprised of pick-up
trucks, SUvs, CUvs and vans.
3. CUv (Crossover Utility vehicle): Compact to mid-sized vehicle
built on a unibody platform with a passenger car powertrain
and suspension, but having a higher ground clearance.
4. detroit Three: Common auto industry term for general
Motors, ford and fiat Chrysler Automobiles.
5. Elastomers: Rubber components or subcomponents nor-
mally used to reduce vibration and noise levels.
6. Casting: Metallurgic process by which scrap steel and fe-
rroalloys are melted to obtain a piece of gray or ductile iron.
7. gray iron: Ferrous carbon material in flake graphite
form with hardness properties to resist high pressures and
dampen vibration. ideal for the brake tracks of a rotor.
8. ductile iron: This iron is obtained by adding magnesium
to melted iron; the carbon deposits as graphite spheres
and it is more ductile, resistant and elastic than gray iron.
9. Machining: Physical process for finishing gray iron pieces.
10. Leaf Spring: Steel suspension system component used
to cushion weight and increase comfort in handling. The
two types of leaf springs are multi-leaf and parabolic:
<P. 48>
a) Multi-Leaf Spring: Type of leaf spring with two or more
steel plates, generally used in pick-up and cargo trucks.
b) Parabolic Leaf Spring: Leaf spring with one or two plates
that gives better performance with less weight, compared
to a traditional multi-leaf spring.
11. Platform: family of vehicles that share the same tech-
nical base (suspension, transmission, brake systems, etc.),
although varying in design and appearance.
12. Parts: Sale of suspension or brake components intended
for the auto parts market.
13. Spring: Coil-shaped suspension component made from
steel that cushions and increases comfort in handling.
14. Rotor / disc: in the automotive industry, two words with
the same meaning. Rotors or discs are brake components,
usually cast gray iron, that provide two flat surfaces to
distribute a vehicle’s braking force.
15. SUv (Sport Utility vehicle): All-terrain recreational use
vehicle, in the 4x4 version, that can be used on different
road conditions.
<P. 49>
iNfORMATiON fOR iNvESTORS ANd ThE MEdiA
hEAdQUARTERS
Av. Pedregal 24, 7o Piso
Molino del Rey
11040 Ciudad de México
T.: 52 (55) 5229-5800
AUdiTORS
PwC
Mariano Escobedo 573
Rincón del bosque
11580 Ciudad de México
T.: 52 (55) 5263-6047
f: 52 (55) 5263-6010
LEgAL dEPARTMENT
Juan Pablo Rosas Pérez
T.: 52 (55) 5229-5885
design: design Center TM
TEChNOLOgiCAL iNNOvATiONfOR A SUSTAiNAbLE fUTURE
2018 ANNUAL REPORT
RASSiNi .COM
RASSiNi –
2018 ANN
UAL REPORT
