ArcelorMittal (NYSE:MT) has been chosen by Volkswagen (DE:VOWG_p) AG (OTC:VLKAY) as a supplier for the carmaker’s new FAST − Future Automotive Supply Tracks − initiative. This initiative seeks to provide a solution for globalization and frequent innovations problems faced in the automotive industry. For the success of the initiative, Volkswagen has emphasized the importance of a good supplier network.
Volkswagen has selected 55 partners, all experts in their respective fields, through a transparent and unbiased selection process. The company wants to manufacture affordable automobiles with advanced and sustainable technology, and chose partners with similar global strategies and ideas of innovation.
ArcelorMittal was formally nominated as a FAST supplier in early Mar 2016, in a ceremony held at the Volkswagen headquarters. All partners of Volkswagen’s FAST initiative, including ArcelorMittal, will take action with regard to the undergoing digital transformation in the automotive industry, and employ joint technological innovations speedily to accomplish more effective and efficient vehicle projects worldwide.
The steelmaker is being seen as a dependable partner that has accompanied the Volkswagen Group through the years. In the past, ArcelorMittal has brought forward novel ideas such as hot stamping technology while also supplying steel for lightweight automobiles produced by Volkswagen. Moreover, the carmaker has previously provided the steel producer with a Supplier of the Year award and later with an A-rating, the highest recognition, to its St-Chely d'Apcher mill.
ArcelorMittal’s automotive segment has a global presence. The company has 11 research centers all over the world, stressing on the ability to supply steel for lightweight, low energy consuming vehicles. With a partnership with Volkswagen, the company intends to further expand this presence and ramp up its research program.
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ArcelorMittal recorded a wider year-over-year adjusted loss of 10 cents per share in first-quarter 2016. However, the loss was narrower than the Zacks Consensus Estimate. Revenues plunged 21.7% year over year to $13,399 million in the quarter and missed the Zacks Consensus Estimate.
The company received recognition for its excellence in providing steel products and solutions for automobiles by General Motors Company (NYSE:GM) and Ford Motor Co. (NYSE:F) in the quarter. While General Motors awarded the company as the Supplier of the Year for the third consecutive year, Ford rendered ArcelorMittal the highest rank for the fifth consecutive year.
ArcelorMittal currently holds a Zacks Rank #2 (Buy).
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