3.1 CRS management [102-12, 102-18, 102-31, 202-1, 205-2, 412-2]

SDGs related with this chapter


Ensure sustainable consumption and production patterns



Strengthen the means of implementation and revitalise the global partnership for sustainable development.

CIE Automotive builds CSR principles into its business model and strategy with the aim of creating value for all its stakeholders and for society at large, as set down in its CSR Policy, approved in December 2015, which applies to all of the entities comprising CIE Automotive.

CIE Automotive has been a member of the United Nations Global Compact since October 2015, thus publicly pledging to respect its 10 universal principles in the areas of human and labour rights, environmental conservation and the effort to combat corruption and fraud. Its membership of the Global Compact is also a commitment to act as an agent of development, generating positive impacts on society as a whole based on compliance with the 17 Sustainable Development Goals (SDGs) (refer to section 5.3).

Milestones in 2017

  • CIE Automotive's 1st CSR Day.
  • Performance of a materiality assessment.

Lines of initiative undertaken in 2017

  • Consolidation of CIE Automotive's Ethics Framework to guarantee knowledge and awareness, oversight and application of the internal rules of conduct in all its business markets by distributing the Code of Conduct approved in December 2015, along with a reminder of the existence of a whistle-blowing channel, Group-wide. [205-2]
  • Commitment by all of the factories to CIE Automotive's human rights policy. [412-2]
  • Reiteration of the availability on the website of certain corporate policies within the purview of the Board of Directors to ensure compliance with Spain's Corporate Enterprises Act and reinforce CIE Automotive's body of internal rules and regulations.
  • Systematisation of the process of identifying stakeholder expectations and their alignment with the idiosyncrasies of each of the geographies in which CIE Automotive has a significant presence and with the broad business strategy. Elsewhere, the Group conducted a materiality assessment in 2017 (refer to 2.4.1).
  • Consolidation of the tax strategy and associated reporting model, enabling the Board of Directors to oversee the correct functioning of the tax compliance function, thereby mitigating tax risks.
  • Integration of ESG risks into corporate procedures related with supply chain management with a dual objective: effective management of the ESG risks posed by suppliers and management of the associated reputational risk.
  • First steps in designing an Eco-Efficiency Plan, including a monitoring regime with specific reduction targets at the factory level and a reporting system for the related information so that performance in this connection can be duly monitored.
  • Global compilation of the donations and other community contributions made in all of the countries in which CIE Automotive does business, thus helping to reinforce the community work management model.

The continued pursuit of other lines of initiative in the process of implementation related to integrating ESG criteria into the Group's growth, employee training, risk identification and management efficiency processes, among others.

Lines of initiative identified for 2018

  • Completion of the outstanding initiatives set down in the 2015-2018 CSR Plan and work on formulating a new three-year plan.
  • Definition of a community work model in line with the guidelines approved by the CSR Committee in December 2017.
  • Global rollout of the CSR Day event organised in Europe in October 2017. The goal here is not only to carry out a workshop with the managers from each of the regions but also to confirm the global deployment of the key initiatives envisaged in the 2015-2018 Strategic CSR Plan.
  • Implementation of a CSR working methodology that can grow with CIE Automotive.

CIE Automotive’s 1st CSR Day

To demonstrate the importance the Group assigns to CSR, in October 2017 it held its first Corporate Social Responsibility Day, providing updates on the progress being made in this arena and what its stakeholders are looking for. The event, which was inaugurated by the Company’s CEO, Jesús Mª Herrera, was attended by division heads and the European factory managers, as well as the members of the CSR Cross-Group Committee.

In addition to analysing and sharing the improvements and action plans to be tackled, the event was used to underline the importance of three imperatives:

  • Being rigorous with the information reported on environmental, human resources, supply chain and community work matters.
  • Using and relying on the Cross-Group CSR Committee for any doubt that may arise within the organisation regarding CSR matters, to which end a dedicated corporate e-mail account has been set up: csr@cieautomotive.com.
  • Making use of the corporate website and Integrated Report to learn about all of the non-financial information available at CIE Automotive, in line with its commitment to transparency.

3.1.1 How CSR works at CIE Automotive and who is responsible for it [102-18, 102-19, 102-20, 102-27,102-32]

CSR is held in the highest regard at CIE Automotive. It is supervised by the Corporate Social Responsibility Committee, which delegates oversight of execution of the key lines of initiative in the Cross-Group CSR Committee.

CSR is included within what CIE deems its second line of defence (refer to section 4.4.2 Internal control systems).

The latter committee is made up of eight professionals from a range of areas.

“CIE Automotive’s commitment to responsible management has been reinforced by a host of internal CSR rules and policies.”


Member Area
Javier Álvarez Human Resources
Lorea Aristizabal Business Development
Gonzalo Ceberio Quality & Environmental Management
Iker Hernández Internal Control and Risk Management
Angel Zalduegui Internal Audit
Susana Molinuevo CSR & Compliance
Irache Pardo Supply chain
Mikel Orbegozo Sales

CIE Automotive’s commitment to responsible management has been reinforced by a host of internal CSR rules and policies, all of which are the responsibility of the Board of Directors. Those policies are publicly available on the corporate website.

Effective application of the CSR policy and the potential risks associated with it are framed by the Risk Management and Control Policy, which uses the ISO 31000 methodology.

CIE Automotive has established Group-wide CSR indicators to measure its performance in various ESG areas: supply chain, HR, environmental management and community work. All of this information is compiled using interactive surveys enabled by the SAP Process Control tool.

3.2 Customer orientation

CIE Automotive’s strategy is focused on satisfying its customers: vehicle OEMs and Tier 1 parts makers. To meet their needs, it comes up with highly value-added and innovative solutions which it adds to and upgrades every year thanks to investments in its manufacturing facilities, continual adaptation for the most stringent quality standards and close collaboration with its customers.

  • New customer for stamped parts for electric cars: Tesla.
  • New customers for stamped parts for electric brakes: Bosch, Continental.
  • Industrialisation of parts using Composite Spray Moulding (CSM) technology for interior trims. Reduction of weight and price without renouncing mechanical features: FCA and General Motors.
  • Industrialisation of interior plastic door handles using nitrogen gas injection moulding in order to enhance the mechanical structure and appearance while preventing material contraction: Volkswagen.
  • Addition of stamped aluminium parts for light-weighting purposes in NAFTA market: Continental, Bosch, Tesla.
  • Addition of laser welding for steering assembles: ZF.
  • Introduction of new servo stamping presses.
  • Entry into the chassis niche for stamped subassemblies: Volkswagen, Daimler.
  • Start-up of a new JIT factory for subassembly work in Puebla (Mexico): Volkswagen.
  • First order for high-pressure fuel rails for gasoline engines in the machined forging segment: Magneti Marelli / Mazda.
  • Installation of a 100%-automated forging process for transmission tulips and CV joint housings: Net Shape.
  • Automation of the loading and unloading of aluminium pieces in 5-axis, twin-spindle horizontal machining centres in the new facilities in Mexico: Magna, Ford.
  • Introduction of the first 2,000-tonne aluminium injection press for a new project: Ford

Lines of initiative undertaken in 2017

  • Expansion of the product portfolio in various geographies, adding new solutions closely tied to the latest trends in the automotive market.
  • Enhanced quality control having obtained new certifications at three factories.

Customer satisfaction assessment

At CIE Automotive customer satisfaction means not only meeting its customers’ needs but also exceeding them. This concept is embedded into everything it does, from when it designs a product until that product is delivered to the end customer. It is represented in the process map, which puts the customer at the beginning and end of all of its activities. This pledge is also embodied in the Health, Safety, Environmental and Quality (HSEQ) Policy, which stipulates that the Group locate its operations where its customers need it, provide its customers with what they need when they need it and create added value for them in everything it does. Should it deviate in any way, CIE Automotive reacts swiftly to minimise any potential fallout.

Quality control

The concept of Total Quality Management (TQM) as an organisational management approach has been fully embraced by the automotive industry in general and by CIE Automotive in particular. Since first adopted, the TQM model has been fine-tuned by means of definition of its mission, vision and values, stakeholders, process map and scorecard. The core tenets of prevention, training, automatic revision and continuous improvement are put into practice in all of the Group’s activities.

CIE Automotive’s TQM model was revised for the seventh time in 2017. This last revision focused on integrating ESG criteria, a process that far from contradicting the definition of total quality enhances it by engaging key stakeholders.

In addition, over the course of the year CIE Automotive continued to work towards its goal of achieving triple certification (quality management: ISO/TS 16949; environmental management: ISO 14001; and health and safety: OHSAS 18001) at all its factories. For those factories not yet certified there is a plan for obtaining certification during the next three years.


Divisions Factories ISO/TS   ISO 14001   OHSAS  
Europe 42 42 100% 41 98% 29 69%
NAFTA 15 14 93% 10 67% 0 0%
Brazil 12 12 100% 11 92% 3 25%
Asia (India/China) 21 21 100% 15 71% 15 71%
Total 90 89 99% 77 86% 47 52%

Upcoming certifications

Whereas 2017 was the year of model rollout (refer to chapter 2.1), in 2018 CIE Automotive is faced by two new and more demanding standards:

  • On the quality front, it faces the transition from ISO/TS 16949 to IATF 16949, in which the management model lies at the heart of the certification.
  • From the standpoint of environmental management, it must tackle the evolution of ISO 14001.

There is also a third challenge on the horizon in 2018: the new ISO 45000, which will replace the current OHSAS 18001.

Tackling these challenges will generate important feedback from different countries, cultures and approaches that will help the Company to do better.

Certifications and accolades

As a result of all of these initiatives, the automotive business sustained revenue growth of 27.1% to €2.88 billion and received a host of prizes and accolades from its customers.

Customer recognition:

General Motors



  • OpEx (Operational Excellence). Prize awarded for the best performance in terms of defect-free parts deliveries.



  • Excellent Quality Supplier.



  • Quality Excellence.




  • Best supplier




  • Prize for 20 years of collaboration and alliance.




  • Prize awarded by Nexteer Planta Querétaro for the firm’s contribution to achieving excellence in quality.




  • SQEP (Supplier Quality Excellence Process). Supplier for 10 years in a row.



  • SQEP (Supplier Quality Excellence Process).




  • Logistic award.

PSA Group



  • Best plant: the second year in a row that this factory was named the best overall facility.



  • Best plant


FRANCE – CIE Compiègne

  • Best plant: the third year in a row that this factory was named the best overall facility. As a result, it has been elevated to the status of ‘Best of the best plants’, a distinction only 11 PSA suppliers have achieved.

Jaguar – land rover



  • Key supplier.




  • Best quality improvement.




  • Benchmark supplier, having obtained the highest score in all of NAFTA in the WCM audit.




  • Zero Defect Quality Culture.


One of the qualities CIE Automotive articulates its credibility around is its respect for confidentiality. To this end, it fosters the responsible use of sensitive information to ensure customer confidentiality at both the corporate and individual division levels.

3.3 The team [102-8, 102-41, 103-1, 103-2, 103-3, 202-1, 401-1, 412-1]

SDGs related with this chapter



Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all.



Ensure healthy lives and promote well-being for all at all ages.

Milestones in 2017

  • 25% reduction in injury frequency rate, 50% reduction in injury severity rate and reduction in the number of accidents by 41 despite headcount growth of 10%.
  • New 2020 Prevention Plan.
  • Integration of Newcor employees.
  • Arrival at the Spanish factories of the first graduates from the 'Reversed Ulysses' programme.

Lines of initiative undertaken in 2017

  • Expansion of CIE Automotive's headcount driven by organic growth and M&A activity.
  • 2pp increase in the percentage of women on staff.
  • 5pp increase in the percentage of staff receiving training.
  • Increase in the number of training hours.
  • Collective bargaining agreements signed at 36 factories.
  • Increase in the amount earmarked to professional support measures.
  • Unification of workplace climate survey criteria. Survey conducted at 32 factories.
  • 5% increase in OHSAS 18001-certified factories.

Lines of initiative identified for 2018

  • Growth of the Reversed Ulysses and international exchange programmes.
  • Integration of the new employees deriving from CIE Automotive's growth.
  • Continued increase in the number of OHSAS 18001-certified factories.
  • Continued improvement in injury frequency and severity rates.

The more than 23,000 employees comprising the automotive business’s global multicultural team are a strategic asset. Their dedication and talent contribute to the Group’s growth and profitability.

Management of its human resources is therefore a Group priority as is set down in the Global Resources Plan and the commitments assumed in CIE Automotive’s human rights policy: the provision of decent work; the prevention of discrimination; zero tolerance of compulsory and child labour; the facilitation of collective bargaining and the freedom of association; promotion of a culture of respect; and protection of individual health.

These commitments are aligned with the universal labour principles acknowledged in the United Nations Global Compact which CIE Automotive endorsed in 2015.


2016 2017
No. of employees
Europe (*)
Asia (India/China)
Fixed/indefinite contracts % 80% 78%
Female employees % 14% 16%
Female hires % 18% 18%
Employees with some form of disability % 1.5% 1.5%
Employees covered by collective bargaining agreements % 63% 63%

(*) CIE Maroc (Morocco) included.

Professional profile [102-8] [401-1]




Promote sustained, inclusive and sustainable economic growth,full and productive employment, and decent work for all.

CIE’s automotive business employed 22,899 people across all five continents at year-end 2017, 1,973 more than at the end of 2016.

The growth in employment is attributable to the acquisition of Newcor (29%, or 571 employees) but, above all, to organic growth (71%, or 1,402 employees), which was particularly significant in Mexico and Brazil: these markets added 1,143 employees, 82% of organic headcount growth.

The general characteristics of the jobs provided by CIE Automotive in the automotive parts business at year-end 2017:

  • By category: 728 executives (3%), 5,913 university graduates, technicians and clerical staff (26%) and 16,258 skilled workers (71%).
  • By gender: 84% male and 16% female, the latter up two percentage points from 2016.
  • By age: 7,328 employees under the age of 30 (32%), 12,488 between the ages of 30 and 50 (54.5%) and 3,085 (13.4%) over 50.

Provision of decent work [102-8, 202-1, 401-3, 403-2, 405-2]

Some 8,875 people joined CIE Automotive in 2017 and 4,846 left the company of their own free will. The new hires were concentrated in the Americas (4,827) and Asia (3,126), while Europe was home to 922 new hires. Elsewhere, the voluntary departures took place mainly in Asia (2,684 people) and the Americas (1,764), while 398 people left CIE Automotive in Europe.

Of total new hires, 1,590 (18%) were women and of all voluntary departures, 610 (13%) were women. The profile of women in respect of the Group’s new hires and turnover improved in quantitative terms compared to 2016, evidencing CIE Automotive’s commitment to gradually increasing the percentage of women in its headcount. Indeed this percentage increased by 2pp in 2016.

All employees earn a fixed salary, in keeping the nature of the work they do as well as their performance; performance at the factory level and by CIE Automotive as a whole is also taken into consideration.

52% of the employees, 11,972 people, were party to formal annual performance evaluations in 2017 and 32%, or 7,234 employees, also received a bonus for meeting their targets, doing their jobs excellently or lifting their performances.

78% of the headcount (around 18,000 people) enjoyed indefinite job contracts at 31 December 2017. Europe tops the ranking with 86% of its staff on indefinite contracts, while the other regions average 76%.

Absenteeism amounted to 5% in 2017. In addition, 278 men and 131 women availed of paternity/maternity leaves, included in the absenteeism. CIE Automotive uses the most prudent version of this concept, considering absenteeism any absence from work, such as those derived from work or common accidents, long-term sick leave or maternity and paternity leave, with the exception of holidays. CIE Automotive upholds the minimum legal requirements in all of its factories and in several of its facilities it offers its employees more time off than is stipulated in applicable local legislation.

CIE Automotive prioritises the quality of the jobs it provides. To that end, it goes beyond providing good working conditions, decent wages and job stability and attempts to help make sure that the everyday lives of its employees and their families is as simple as possible and that membership of CIE Automotive constitutes a source of pride for them.

CIE Automotive analyses the circumstances of the people working at the factories it acquires, improving them as necessary, in terms of both gender wage equality and compliance with the minimum wage requirements applicable to each factory, industry or country. Accordingly, it analysed the situation at Newcor, acquired in 2017. At that company at the end of 2017, the ratio of pay of women to men was 1 in the lowest wage brackets (this means that the lowest-earning man earns the same as the lowest-earning woman) and 1.4 in the higher wage brackets, although the levels of responsibility compared are different. Note also that the lowest salary at Newcor is significantly above the minimum wage: 1.32 at Rochester Gear Inc. and 1.34 at Machine Tool & Gear.

CIE Automotive’s decentralised management model is a plus as the factories are 90% run by local managers, who are free to take their own decisions, facilitating adaptation for the specific needs of each region.

“In 2017, CIE Automotive invested more than €20 million in professional support measures.”

These measures can be classified into four major groups:

€11 million was earmarked to medical and accident insurance, in-house medical and/or nursing services and other activities related with the health of the Group’s employees and their families, notable among which:

  • Medical insurance in the US in the amount of over €3.5 million.
  • Medical assistance and health plan in Brazil in the amount of €3 million.
  • Agreements with private hospitals at the factories in Mexico.
  • Cancer screening for the early detection of certain manifestations of this disease at some Spanish factories.
  • On-staff doctors at several factories.

€5.5 million earmarked to services such as:

  • Subsidised canteens.
  • Restaurant vouchers (with tax benefits for employees in the countries in which this scheme applies).

€3.5 million. For example:

  • Factory-funded proprietary bus services.
  • Employee fuel payment schemes at certain factories.
  • Public transportation payments for employees.

€1 million earmarked to services related with the education of employee relatives and other services. By way of example:

  • CIE Galfor (Spain): contribution of €170 per child in daycare and €500 per child in university.
  • CIE Mecasur (Spain): contribution of €23 per month per child under the age of 8.
  • Mexico: organisation of the ‘Best student’ scheme under which the children of employees with grade point averages of 8.5 or more out of 10 receive scholarships or school materials.
  • India: computer donations, creation of schools and provision of school supplies.

Prevention of discriminatory practices

CIE Automotive offers its employees a work environment free of bias on the grounds of gender, race, religion, age, sexual orientation, nationality, civil status or socio-economic background.

Its labour relations are governed by the legislation prevailing in each of the countries it operates in, so that it attempts to adapt to each region’s practices and customs. This commitment to diversity and equal opportunities is evident in the fact that 90% of the Group’s factories are run by local managers.

Although the fact that automotive factories have traditionally been male denominated and the difficulty in hiring women in some markets means that 84% of its workforce is male, CIE Automotive is working actively to address this situation, increasing the percentage of female hires. In 2017, female representation increased by two percentage points, from 14% to 16%.

Zero-tolerance stance on compulsory or child labour [408-1, 409-1, 412-1]

CIE Autmotive takes a zero-tolerance stance on child and forced labour. Against this backdrop, it has pledged to uphold labour legislation in its operating markets and to take corrective action to ensure it is enforced.

Every year, CIE Automotive conducts an in-house survey to identify factories at risk of being affected by these scourges and take opportune measures as required. 90% of its factories have already responded satisfactorily. As for the rest of the factories from which the completed survey had yet to be received at the reporting date, CIE Automotive is certain that none of its plants is involved in these practices, as all of the factory managers and HR managers in the automotive business worldwide have endorsed CIE Automotive’s Human Rights Policy, thereby undertaking to respect and enforce it.

Facilitation of collective bargaining [403-4]

Regardless of the country it operates in, and in keeping with the commitments assumed under the scope of the United Nations Global Compact, CIE Automotive stringently respects its employees’ right to unionise and to bargain collectively. It engages openly with its employees’ representatives not only in its European plants but also in less unionised countries such as China and India.

At year-end 2017, 63% (14,344 employees) of its workforce was directly covered by a collective bargaining agreement either at the plant, sector or regional level and the number of employee representatives in the automotive business totalled 383. All collective bargaining agreements include specific references to occupational health and safety matters; indeed they constitute one of their most important areas.

In 2017, company and/or sector agreements were executed at 36 workplaces in the following countries: France, Spain, Romania, Brazil, Mexico, the Czech Republic, India, Germany and China. The collective agreements signed in 2017 directly cover 7,789 employees.

It is important to note that if CIE Automotive is inescapably obliged to restructure its workforce, it complies scrupulously with the law and in many instances provides better terms than those imposed under local legislation.


Employees covered by collective bargaining agreements Total headcount Coverage, % Worker representatives by country
Spain 2,421 2,549 95% 112
Mexico 3,051 4,680 65% 46
Brazil 3,537 3,574 99% 31
India 2,466 6,271 39% 72
China 376 691 54% 45
Resto 2,493 5,134 49% 77
Total 14,344 22,899 63% 383

Promoting a culture of respect

Employee relations are based on transparency and respect for individuals, to which end CIE Automotive has created specific channels for engaging with its employees, most importantly its scorecards and intranet, where employees can find all sorts of corporate information.

CIE Automotive also conducts a workplace climate survey at every factory every two years. In 2017, the Company updated the survey used to simplify it and make it a better tool for taking decisions on the basis of its employees’ responses and for preventing potential instances of harassment or disrespect. The survey now consists of 56 questions divided into five blocks: assessment of the Company; feedback about the organisational model; opinion about relations with the Company; opinion about the work performed; and a general assessment of satisfaction as an employee.

In 2017, CIE Automotive conducted the survey at 32 Group factories, scoring 7.05 out of 10 on average, with all the factories where the survey was carried out delivering a score of over 5. However, at all centres the results of the survey point to areas in which the Company needs to improve on its path towards excellence and action plans have been designed as a result.

Among the initiatives carried out to improve the workplace climate in 2017, the contributions made to various employee sports competitions and the numerous events organised to mark certain special dates (Father’s Day, Mother’s Day, Christmas, etc.) stand out.

3.3.1 Career development [101-1, 102-2, 103-3, 404-1, 404-2, 412-2]

CIE Automotive believes it is crucial to attract and retain the most talented individuals by offering them an environment in which to develop their professional skills, without neglecting work-life balance. To create such an environment, it has an HR management model under which it establishes employee skill profiles, evaluates executive, middle management and skilled workers’ job performance, identifies areas for improvement and designs career development and training programmes, the latter by means of a dedicated Professional Development Programme.

In 2017, 11,972 employees (52% of the headcount) were evaluated in respect of seven skill-sets: results orientation, customer relations, proactive attitude, innovation, teamwork, decision-making, flexibility and leadership.

Employees undergo an annual assessment with their immediate superiors to analyse theirs and the Group’s performance during the prior 12 months and to get feedback regarding their expectations for the near and longer term. Whenever skill gaps are detected, the employee in question is included in a specific training programme.

Attracting talent

The ability to attract top talent is critical to putting the Company’s innovation and continuous improvement policies into practice. As demonstrated by the materiality assessment conducted recently, CIE Automotive views talent management as one of the areas of greatest importance to guaranteeing the Group’s excellence and sustainability. To this end, it ran a series of recruitment programmes throughout the year designed to attract young graduates keen to work in a multinational environment, collaborating specifically with Deusto University (Spain) and the Polytechnic University of Guanajuato (Mexico), on the one hand, and with the Technology Centres of Tlanepantla, Celaya and Saltillo (Mexico), on the other.

Reversed Ulysses Programme

In 2017, the first graduates of the Company’s career development programme known as Reversed Ulysses began to work in its Spanish factories, specifically in its metal, machining and plastics technologies. This programme is populated by new graduates from CIE Automotive’s business markets: these graduates are trained in its legacy Spanish factories for one year and are then offered a job in their home markets with four objectives in mind:

  • Providing technical training to graduates at the facilities with the longest track records, facilities at which the Group’s values have been embedded for years.
  • Facilitating engagement down the line with the countries that have been integrated into the Group more recently.
  • Generating the intra-Group relations that are essential to a healthy business performance.
  • Training local staff in excellence so that, as has traditionally been the case, the Group’s factories are largely staffed by home-market professionals at both the technical and managerial levels.

During the year, in light of the CIE Automotive’s growth expectations, the Reversed Ulysses programme was structured for 2018, when it will seek to attract young graduates from the state of Guanajuato to the various divisions’ factories in Spain’s Basque region.

Bizkaia BBK Scholarships

CIE Automotive is also one of the companies collaborating on the first edition of the Bizkaia BBK scholarship programme being championed by the regional authorities and the BBK Foundation. What’s novel about this programme is the fact that the scholarships combine training in excellence at foreign universities with a job contract at a cutting-edge company.

This scholarship programme evidences the regional authority’s commitment to youth, training in excellence and quality work. It is aimed at supporting sectors considered strategic to the economy.

In this manner, CIE Automotive guarantees itself an annual intake of young engineers who, in addition to the degrees obtained in their home markets, receive training in excellence at one of the world’s most prestigious universities (CIE Automotive is twinned with RTWH Aachen), learning they will then put into practice at the Group, thus creating an important source of competitive advantage.

Professional training [404-1, 404-2, 404-3, 412-2]

The Group’s training effort is articulated around developing the skills needed for effective on-the-job delivery of CIE Automotive’s strategic objectives. With this goal in mind, some 610,658 training hours were provided to 19,513 employees (85% of the workforce) in 2017, which is equivalent to 31.3 training hours per employee.

These figures evidence CIE Automotive’s commitment to training, as does the 20% increase in the number of training hours imparted and the 3,000 additional individuals receiving training (so that the total number of employees receiving training increased by 5%).

The decentralised management approach is good for the training effort as decisions are taken with a focus on operational needs so that training courses are oriented towards improving job efficiency and performance.

In 2017, CIE Automotive provided over 6,000 hours of human rights training and education at 27 factories worldwide (38% of the total employees), in line with CIE Automotive’s 2015-2018 CSR Plan and its Human Rights Policy.

In addition, at the corporate level a non-binding proposal is presented to the CIE Automotive factories itemising all of the training initiatives to be undertaken in the year ahead, including sessions aimed at providing advanced management and interpersonal skills for individuals with certain abilities and/or potential:

  • People management: Includes skills such as leadership, motivation and communication.
  • Teamwork: To show the characteristics of successful teams and concepts such as synergy, effectiveness and efficiency.
  • Decision making based on financial aspects: Increasing the knowledge in financial aspects allows to increase the degree of objectivity and success of the decisions taken.

3.3.2 Health and safety [103-1, 103-2, 103-3, 403-2]




Ensure healthy lives and promote well-being for all at all ages.

CIE Automotive is committed to the health, safety and well-being of its employees, its zero accident objective being a top priority. To this end it observes more stringent standards than are required under local legislation, provides safety training to employees in keeping with the work conducted at their places of work, establishes preventative measures and controls the effectiveness of the improvements introduced by means of internal audits.

Occupational health and safety

In 2017, the Company rolled out its 2020 Health & Safety Strategic Plan, articulated around the following lines of initiative.



Continuous improvement in the indicators that track workplace accidents (volume, frequency and severity rates).


Implementation of a self-assessment questionnaire at all factories. The target score is 85% and the results will trigger the mandatory implementation of specific measures in their annual safety plans in order to improve their scores going forward.


The target – an ambitious one – is to have all of CIE Automotive’s factories OHSAS certified by 2020 (+5% in 2017).

The workplace safety management system is based on the OHSAS 18001 standard, which is audited regularly by Bureau Veritas. At 31 December 2017, 47 CIE Automotive factories were OHSAS 18001-certified.

Over the course of 2017, CIE Automotive focused strategically on reducing its accident rates and improving its indicators with encouraging results. Looking to 2018-2020, CIE Automotive will focus more decisively on the staggered obtention of OHSAS 18001/2007 certification, albeit without neglecting the need to continuously improve on the other points.

Organisationally, CIE Automotive has an outside safety service that covers the four legally-stipulated areas of accident prevention expertise and a safety officer at each of its facilities.

This effort is shored up by a corporate safety department which regularly audits the factories, maintains the corporate intranet and serves as contact point for issues related with occupational health and safety.

At the factory level, the safety staff inspect the adequacy of the Company’s facilities, conduct emergency evacuation drills, provide training, assist with incident investigations and carry out awareness drives.

Each plant has its own health and safety plan, which is put together on the basis of a framework system that is subjected to continual audit as part of the Group’s workplace safety management systems. This structure enables the Company to adapt safety measures for each plant and evaluate the measures taken by it on this front as a whole. Individual action plans are formulated every year to deliver the targeted level of improvement defined on the basis of the prior year’s performance. All of the Group’s facilities have a health and safety officer.

Also as part of its safety effort, all employees are offered an annual medical check-up to detect any potential problems and take action in good time if required.

Accident rates [403-2]


  2015 2016 2017
Lost-time injuries 532 629 588
Factory fatalities 1 1 0
Injury frequency rate 14.4 15.1 11.2
Injury severity rate 0.6 0.4 0.2

The number of lost-time injuries (more than one work day lost) for every million man-hours worked during a defined period of time (year).

In 2017, there were 588 accidents. Although any and all accidents are regrettable, these numbers are low in proportion to the total number of employees.

One of the key lines of initiative set down in the 2020 Healthy & Safety Strategic Plan is delivery of continuous improvement in accident indicators and rates. The data corresponding to 2017 show that this improvement is already materialising: the number of accidents fell by 6% last year despite the fact that the headcount in the automotive platform increased by 10%. The injury frequency rate declined from 15.1 to 11.2 (down 26% year-on-year) and the injury severity rate dropped from 0.4 to 0.2 (a 50% reduction). Although CIE Automotive is on the right track to reducing its accident rates, it is undeniable that any accident is evidence of shortcomings.

Control of contractors and subcontractors

None of the outsourced workers employed by subcontractors was seriously injured at any workplace in 2017.

The Group applies a corporate policy at all its automotive plants, which requires subcontractors to adhere to minimum quality and productivity standards and to comply with their health and safety obligations. Before they are contracted, the tasks they are going to perform are identified, as are the associated risks, preventative measures and safety resources, along with other complementary measures designed to mitigate residual risk. This procedure is subject to internal and external auditing.

Specific health and safety training

CIE Automotive’s employees receive safety training tailored to the risks posed by their jobs. The Group makes sure that any employee starting a new job receives appropriate training. In 2017 CIE Automotive provided 115.443 hours in health and safety training.

The courses provided in 2017 notably included programmes dealing with working at a height, in confined spaces, with forklifts and cranes, emergencies, ergonomics and electric risks, as well as job-specific training developed as a result of risk evaluation processes.

Safety forums

CIE Automotive is a member of the Alava round-table forum for workplace safety, SEA, and the Guipuzcoa workplace safety forum. It is also a member of the AEC’s occupational health and safety committee. AEC is Spain’s Quality Association.

3.4 Investors

CIE Automotive is focused on creating value for its investors and shareholders by means of managerial effectiveness that translates into share price gains and profits such that it can pay out one-third in the form of dividends.

CIE Automotive anticipates potential mismatches or conflicts of interests between its core shareholders, who control 62.9% of its shares, and its minority shareholders thanks to its effective corporate governance system and a transparent Shareholder and Market Information and Communication Policy.

Milestones in 2017

  • Long-term equity investment by Corporación Financiera Alba.
  • Celebration of Analyst Day 2017 in Mexico.
  • Début Analyst Satisfaction Survey (2017).

Lines of initiative undertaken in 2017

  • Accurate and transparent communication with investors.
  • Assistance to investor conferences.
  • Organisation of investors events, including roadshows.
  • Proactive effort to increase feedback obtained from analyst community.

Lines of initiative identified for 2018

  • Increased presence in London, Paris, New York and Singapore.
  • Implementation of the suggestions derived from the 2017 Analyst Satisfaction Survey.

Generating value for shareholders

CIE Automotive paid out €52.8 million of dividends from 2016 profits, up 24% year-on-year, and in 2017 its share price gained 30.7%.

Consistent delivery of its guidance year after year has driven the share price 203% higher since the end of 2013 (refer to chapter 1.3 CIE Automotive’s share price performance).

Ownership structure

CIE Automotive had 129 million shares outstanding and a market valuation of €3.12 billion at year-end 2017, up 30.7% from year-end 2016. Its core shareholders owned 62.9% of its shares at year-end, with the remaining 36.9% freely floated. CIE Automotive held 0.2% of its shares as treasury stock.

Its shares are traded on the Madrid and Bilbao stock exchanges through the continuous market (SIBE for its initials in Spanish).

New benchmark shareholders

In December 2017, CIE Automotive welcomed a new investor to its shareholder ranks: Corporación Financiera Alba, a company quoted on the continuous stock market which has been devoted to making direct investments in listed and unlisted companies and real estate assets for lease to third parties since 1986. It is part of Grupo March, one of Spain’s most important private business and finance groups.

CIE Automotive has evolved significantly since it was set up in 1996, guided at all times by the important industrial shareholders that have been its legacy companions.

Indeed, this very development and maturing of the business platform is now translating into an improved shareholder structure, one marked by greater diversity, as the majority shareholders with industrial backgrounds make room for more financially-minded investors, albeit still with long-term investment horizons. The addition of Alba to CIE Automotive’s shareholder roster as a new core shareholder is evidence of that process; it strengthens the Company’s position as a listed company and enables it nurture a stable core of long-term investors with impressive track records, support that is necessary in order to tackle new challenges.

Breakdown of the free float

CIE Automotive estimates that at year-end 2017 some 700 investment advisors were managing the investments of the retail shareholders comprising its free float. Over half of these investment advisors are located in Spain but there is also a significant number of them in the US, UK, France, Ireland, Canada and other European markets such as Germany, Belgium, Portugal, Norway and Denmark. Notably, the Company also boasts investors from Australia, Mexico and Taiwan.

The Investor Relations Department is working hard to become familiar with the composition of its free float by means of active, two-way and transparent communication with its investors; it is trying to strengthen its relationship with them by means of marketing activities, attendance at conferences tailored for their needs and the organisation of roadshows. The sharply increased investor marketing presence observed in 2016 continued in 2017, with new cities added to the map. In 2018, CIE Automotive is planning to step up its presence in major financial cities such as London, Paris, New York and Singapore.

At 31 December 2017


Core shareholders


Own shares held as treasury stock


Free float



Shareholder  2015 2016 2017
ACEK / Corporación Gestamp, S.L. 22.9% 20.9% 15.9%
Antonio María Pradera Jáuregui 12.0% 10.0% 10.0%
Corporación Financiera Alba  -  - 10.0%
Elidoza Promoción de Empresas, S.L. 9.6% 9.6% 9.6%
Mahindra & Mahindra, Ltd. 12.4% 12.4% 7.4%
Addvalia Capital, S.A. 5.0% 5.0% 5.0%
Alantra Asset Management, SGIIC, S.A. 5.0% 5.6% 5.0%
Total core shareholders 69.9% 63.5% 62.9%
Own shares held as treasury stock - - 0.2%
Free float 30.1% 36.5% 36.9%








€0.25 per share


RISTEEL CORPORATION, B.V.(i) 13,417,021  – 13,417,021 10.401% 3,354,255.25
ACEK DESARROLLO Y GESTIÓN INDUSTRIAL, S.L. 7,105,182 13,417,021 20,522,203 15.909% 5,130,550.75
INVERSIONES, ESTRATEGIA Y CONOCIMIENTO GLOBAL CYP, S.L.(iii) 6,450,000 6,450,000 5.000% 1,612,500.00
ANTONIO MARÍA PRADERA JÁUREGUI 6,450,009 6,450,000 12,900,009 10.000% 3,225,002.25
CORPORACIÓN FINANCIERA ALBA, S.A. 12,900,000 12,900,000 10.000% 3,225,000.00
ELIDOZA PROMOCIÓN DE EMPRESAS, S.L. 12,386,138 12,386,138 9.602% 3,096,534.50
MAHINDRA OVERSEAS INVESTMENT COMPANY (MAURITIUS), LTD.(ii) 9,590,706 9,590,706 7.435% 2,397,676.50
MAHINDRA & MAHINDRA, LTD. 9,590,706 9,590,706 7.435% 2,397,676.50
ADDVALIA CAPITAL, S.A. 6,450,208 6,450,208 5.000% 1,612,552.00
ALANTRA ASSET MANAGEMENT, SGIIC, S.A. 6,438,682 6,438,682 4.991% 1,609,670.50

The information above is based on notifications made by the Company’s shareholders to the securities market regulator, the CNMV, and to the Company (data updated as of 31/12/2017).

Investor relations

CIE Automotive provides the analyst and investor communities with continuous and accurate information so that they can analyse its financial, social and environmental performance, forecast its progress and take informed decisions. In keeping with its aim of injecting transparency into its reporting effort and dealings with investors and the broader market, in 2017, CIE Automotive intensified communication with the investor community by means of a number of channels.

At year-end 2017, 14 equity research firms were covering the stock (compared to 15 at the end of 2016). The changes in coverage are attributable to the following developments:

  • Caixabank discontinued coverage following the merger with BPI, a firm that was also already covering CIE Automotive.
  • Haitong discontinued coverage due to the lack of an analyst.
  • Fidentiis initiated coverage in April 2017.

The consensus analyst target price stood at €25.30 in December 2017 (up from €18.78 a year earlier). Looking solely at the reports updated during the second half of the year, the consensus target price rises to €26.10.


Company Analyst Recommendation Price Update
 Ahorro Corporación Álvaro Arístegui Buy  31.91€   12/2017
 Alantra Equities  Team Coverage Hold 25.50€   09/2017
 Bankinter  Esther Gutierrez de la Torre Coll Buy 22.64€   05/2017
 BBVA David Díaz Rico Outperform 30.50€   11/2017
 BPI Manuel Coelho Hold 22.80€   06/2017
 Exane BNP Paribas Javier Pinedo Hold 22.40€   10/2017
 Fidentiis Juan Cánovas Buy 26.30€   09/2017
 Intermoney Valores Virginia Pérez Hold 24.40€   12/2017
 JB Capital Markets Ignacio Ortiz Mendivil Buy 24.80€   09/2017
 Link Securities Iñigo Isardo Buy 28.41€   11/2017
 Mirabaud Securities Gonzalo Sanz Martín Buy 23.80€   09/2017
 Nau Securities Pedro Baptista Buy 22.00€   03/2017
 Santander Robert Jackson Pina Buy 26.23€  10/2017
 Société Générale Erwann Dagorne Hold 22.50€  07/2017
 CONSENSUS  25.30€

Trend in the consensus target price



For more information about the analysts covering CIE Automotive, their recommendations and target prices, refer to the website section titled ‘INVESTOR NEWS’


The start of 2017 was marked by uncertainty and concern in the NAFTA market regarding what policies US President Donald Trump would pursue and what effects they would have on vehicle production in Mexico. Given the scale of CIE Automotive’s investments in the country, the Investor Relations Department organised an Analyst Day at which, over the course of three days, various analysts, in the company of members of CIE Automotive’s top management team, toured the country, visiting as many as eight factories that manufacture using different technologies.

The positive feedback received afterwards confirmed the success of this initiative, which helped these stakeholders become better acquainted with both CIE Automotive and the reality of a country destined to become a major manufacturing and export hub.

Analyst Satisfaction Survey 2017

CIE Automotive carried out its first Analyst Satisfaction Survey. The purpose was to garner feedback from the analysts regarding how they rate the information and services provided by CIE Automotive’s IR Department and get their thoughts on the Company’s performance compared to prior years. The goal was to pinpoint external, measurable feedback to enable identification of the key areas for improvement. To this end, the survey asked participants to provide their opinion about the following topics:

  • Quarterly earnings presentations – 92% of the analysts polled rated all of the aspects addressed in these questions positively or very positively.
  • Quarterly earnings conference call – 100% of the analysts polled rated all of the aspects addressed in these questions positively or very positively. There were no negative comments.
  • Market guidance – The short-term guidance found most useful by analysts related to organic growth and the outlook for profit margins; longer term they welcome above all guidance regarding capex, organic growth and margin trends.
  • Equity story – 100% of the analysts believe that the market understands the CIE Automotive story well or very well. The aspects of the equity story they believe need reinforcing in terms of market communication relate to the competitive environment and the provision of long-term guidance. There were no negative comments.
  • IR Department – with respect to the IR Department, 100% of the analysts polled rated its knowledge of the sector players, communication skills, availability, response times, proactive attitudes, professionalism and frequency of interaction positively or very positively. There were no negative comments.
  • Marketing events – between 90% and 100% of the attendees rated all of the questions about the Analyst Day 2017 event positively or very positively. There were no negative comments.
  • Communication – 73% of the analysts believe that CIE Automotive improved its communication and engagement with the market in 2017 compared to prior years. There were no negative comments.

In short, the results of the survey were very encouraging and generated a number of suggestions worth considering and implementing in 2018. In total, 12 of the 14 analysts covering CIE Automotive took part in the survey. The analysts who did not respond could not for reasons unrelated to their relationship with CIE Automotive.


There is a dedicated “INVESTORS & SHAREHOLDERS” microsite within the corporate website www.cieautomotive.com where the Company publishes information of relevance to this stakeholder group. It provides information about attendance at conferences and roadshows, analyst coverage and the scheduled quarterly earnings calls.

E-mail inbox: ir@cieautomotive.com
Telephone number: +34 94 605 62 00
Fax number: +34 946 656 49 57

Events organised to engage with the financial community

In 2017, CIE Automotive organised 26 events (8 more than in 2016), including conferences, roadshows and the Analyst Day Mexico, visited 19 international cities and received over 45 investors who were given the chance to tour its facilities. Investor meetings reached 380 in 2017.

Event attendance

Fecha Date Conferences and/or Roadshows Broker
01/2017 Madrid 7th Spain Investors Days Exane BNP Paribas
02/2017 Madrid XXIII Iberian Conference Santander
03/2017 Madrid Roadshow Ahorro Corporación
03/2017 Estocolmo / Copenhague / Oslo / Stavanger Roadshow JB Capital Markets
03/2017 Londres / Edimburgo Roadshow Santander
04/2017 Ginebra / Zurich V Spanish Equities Day Mirabaud Securities
05/2017 Madrid Roadshow CaixaBank
05/2017 Frankfurt Roadshow Alantra Equities
05/2017 Barcelona Roadshow Intermoney Valores
05/2017 Madrid Presentación Fidentiis
05/2017 Madrid Foro MEDCAP 2017 BME
06/2017 París Automotive Conference Société Générale
06/2017 Nueva York / Chicago 7th Spanish Small & Mid Cap Conference BME / JB Capital Markets
07/2017 Andorra Roadshow Mirabaud Securities
07/2017 Milán / Lugano Roadshow JB Capital Markets
09/2017 Casçais XIV Iberian Conference BPI
09/2017 Londres London Small/Mid Cap Conference J.P. Morgan Cazenove
09/2017 Bilbao Roadshow Mirabaud Securities
10/2017 Dublín VI Spanish Equities Dublin Conference Mirabaud Securities
10/2017 Bilbao Foro Ahorro Corporación Ahorro Corporación
11/2017 Madrid Roadshow BBVA
11/2017 Londres 14th  Mid Cap Forum Exane BNP Paribas



2015 2016 2017
Conferences and roadshows 15 18 26
Investor briefing sessions 207 369 380
Facility visits by investors 20 9 45
Total 242 396 451

3.5 Innovation and technology [102-2]




Strengthen the means of implementation and revitalise the global partnership for sustainable development.

Lines of initiative undertaken in 2017

  • Vehicle light-weighting.
  • Propulsion systems and energy storage.
  • Reduction of internal combustion engine fuel consumption and emissions.
  • Facility efficiency.
  • Smart manufacturing processes.
  • Use of new advanced materials and processes for joining dissimilar materials.

Lines of initiative identified for 2018

  • Progress on components related with electric vehicles.
  • Implementation of advanced industrialisation.

The global trend of growing mobility, the depletion of fossil fuels and climate change are having a direct impact on the sustainability of the transportation sector. The decarbonisation of transportation, electrification, connectivity and autonomous driving are some of the key challenges that were embraced by the players active in the automotive sector in 2017.

The need to strive for the system’s sustainability has brought the sector to the current state of technological coexistence. Vehicles are adding new sources of fuel, new generation and energy storage systems and complex propulsion systems (the prospects for continually enhancing internal combustion engines are increasingly limited, the associated technological leaps increasingly small and the marginal cost, increasingly steep). The OEMs are producing more personalised cars and continue to work tirelessly to reduce their weight so as to cut fuel consumption and emissions.

All of this will be compounded by the challenge of the years ahead: finding the best possible trade-off between the need for mobility, the vehicle concept and the fuel source within an overall appraisal of mobility applications and driving cycles, as well as the factors that shape emissions in the transportation sector.

Lines of initiative undertaken in 2017

CIE Automotive is investing heavily in analysing the key market trends (in collaboration with clusters such as ACICAE, national sector associations such as SERNAUTO and their international counterparts, CLEPA and EGVIA) and in designing and developing innovative products associated with these shifts and the new challenges facing the automotive sector, from both the product and process perspectives.

In 2017, CIE Automotive earmarked about 2% of its revenue to the work undertaken by its R&D centres, taking a multi-technology and multi-material approach. These projects are mainly related with:

  • Vehicle light-weighting.
  • New propulsion systems and energy storage.
  • Reduction of fuel internal combustion engine consumption and emissions.
  • Facility efficiency.
  • Smart manufacturing processes.
  • Use of new advanced materials and processes for joining dissimilar materials.

Many of these projects are carried out in collaboration with other companies, with the participation of technology centres such as IK4, in alliance with agents from science and technology networks such as Tecnalia and with local, national and international universities such as UPV-EHU. Some of these projects (>20 in 2017) are financed from public funds as they are presented for European research programmes and cross-country collaborations.

Some examples of collaborative research work

Local programmes (authorities of Bizkaia)
  • PLAN 2i
    Development of safety parts using materials presenting high elastic limits combined with hardness for the automotive industry. New safety parts for car seats and locks.

Regional programmes (regional Basque government)
    Development of a sliding panoramic sunroof. Application of technology for the mechanical characterisation and dimensional control of deformations in laminated glass resistance tests.
    Development of a new cell concept for flexible in-line dimensional inspection. Development of image acquisition (artificial technology), automation, data analysis and processing systems.
    Study of the critical steps of the near solidus forging (NSF) process. Adaptation and design of steels specifically for NSF and development of microstructural process simulation models.

National programmes
  • CDTI
    Development of new and optimised large-scale automotive parts manufacturing processes. Acquisition of expertise in the thermal, metallurgical and electrochemical aspects of hot-forged aluminium alloys.
  • CIEN
    Hybridisation of traditional and electric propulsion systems, development of light fuels and reuse of residual heat from exhaust fumes for use in sustainable transportation systems..

International programmes
    Development of a pilot cell on an industrial scale for the thixocasting of aluminium and steel parts.
  • H2020
    Development of an electric engine with an integrated transmission system for 100% electric vehicles.
    Some of these new developments are sufficiently novel to have warranted patenting: in 2017 CIE Automotive presented a number of patents for new types of equipment, products and tools associated with manufacturing processes.

2018: vehicle electrification and advanced manufacturing

Vehicles with electric engines, equipped with batteries fuelled by electricity in turn generated from renewable sources and energy recovery systems present important advantages compared to conventional vehicles with internal combustion engines.

CIE Automotive sees huge potential for the manufacture of parts associated with the gradual but constant electrification of cars on the steady path towards a purely electric, efficient, profitable and sustainable vehicle.

In the years to come multiple technologies will coexist: different propulsion systems (series hybrid, parallel hybrid, hybrid plug-in, purely electric, with fuel batteries) and, importantly, different energy recovery, recharging and storage systems.

As well as working on the products associated with the sector trends, CIE Automotive continues to make progress in the world of materials and processes and develop manufacturing strategies that allow it to make large quantities of parts embodying greater value-added and more know-how; it continues to advance, in short, towards smarter manufacturing.

Certain trends are having a direct impact on production: digitalisation, new materials, increasing product personalisation and system sustainability. As a result, CIE Automotive needs to develop and/or implement technologies that increase the flexibility of its productive processes and work with short cycles right along the value chain. Moreover, it can and must use all the capabilities afforded by industry 4.0 to control and reduce costs in areas as broad as design, materials, energy, manufacturing and logistics.

CIE Automotive is tackling these challenges by means of the following key initiatives:

  • Smart operation of its productive facilities thanks to sensorisation.
  • Implementation of software to enable its machines to adapt their processes for the most appropriate production parameters.
  • Production lines designed to be modular.
  • Select data capture and analysis with a focus on continuously improving the productive process.
  • Machine-to-machine and person-to-machine communication capabilities so that each work station can recognise the product, avail of the parts and tools needed for the process and describe the operations that must be performed.
  • IT architecture designed to enable automation among different technology systems.

CIE Automotive strives to align its R&D effort as closely as possible with its business strategy.

Its innovation model is designed to select and prioritise projects with potential for future application, specifically the scope for generating business embodying the know-how, products and technology developed. 


The cornerstones of this model are:

  • Identification of business opportunities.
  • Selection of those that add most to CIE Automotive’s strategy.
  • Management and development of the defined R&D projects.
  • Know-how transfer.

As a result, the model allows:

  • Systematisation of the innovation effort.
  • A honed ability to track and detect technology trends in the market and plan for innovation.
  • Resource planning and organisation such that the innovation effort adds value to the business.
  • Enhanced market positioning through the patents generated.

3.6 Supply chain [102-9, 102-10, 103-1, 103-2, 103-3, 203-1, 204-1]

CIE Automotive has a global and diversified supply chain populated by over 24,000 suppliers which held the Company create its value-added proposition. In 2017, the Group purchased €1.70 billions’ worth of goods and services.

Aware of the impact its suppliers have on the community and environment, in 2017, the Supply Chain Area centred its strategy on integrating ESG criteria into its supply chain management in an attempt to make these a hallmark that sets CIE Automotive apart. In parallel, it continued to fine-tune its model, streamlining costs and carrying out controls to ensure the quality and reliability of its supplies, as laid down in its new Global Supply Chain Manual, published in December 2017.

Milestones in 2017

  • Publication of the Global Supply Chain Manual.
  • Implementation of the procurement policy and supply chain procedures at Newcor and greenfield facilities.
  • Performance of 502 supplier audits.
  • Design of a Suppliers Portal due to start to operate in 2018.

Lines of initiative undertaken in 20177

  • Adding CSR criteria in supply chain management.
  • Detection and crystallisation of financial and management synergies from newly- acquired and created companies/factories.
  • Assessment of supplier quality and service reliability
  • Improved communication with potential suppliers to ensure due publicity of contracts and equal tendering opportunities.
  • Making top suppliers aware of environmental criteria.

Lines of initiative identified for 2018

  • Standardisation of the global requirement to embed ESG criteria into audits of suppliers of productive material.
  • Development and implementation of industry 4.0 tools applicable to the supply chain in order to make its management more agile, efficient and cost-effective.
  • Rollout of the Suppliers Portal as an open communication channel and vehicle for facilitating equal opportunities.
  • Development of an action plan with suppliers of productive material for the definition of environmental requirements.


78.2% of all purchases

by value (euros), were procured from local suppliers.

Local suppliers account for 89.9%

of all the suppliers with which CIE Automotive worked.

Capital expenditure of €285 million.

46% went to upgrading existing facilities and 54% to building new factories and expanding capacity at existing ones.

CIE Automotive’s sharp growth posed a fresh challenge for supply chain management in 2017.

On the one hand, the acquisition of Newcor implied the need to deploy the procurement policy and procedures at this entity, which required whittling down suppliers and identifying supplier synergies. In parallel, the Company consolidated management of the supply chains of the companies acquired in 2016 – Grupo Amaya Tellería and Bill Forge – achieving full integration.

Elsewhere, the organic growth at the existing factories also implied a major effort due to the need to manage new projects, certify new suppliers and adjudicate contracts and purchases to existing suppliers all over the world.


  • New crankshaft line in Lithuania.
  • New stamping presses and new finished product warehouse in the Czech Republic.
  • Expansion of the manufacturing warehouse in Italy.
  • New painting line in Portugal.
  • New warehouse and automated machining lines in the US.
  • New welding cells, stamping presses, aluminium injection machines and machining centres in Mexico.
  • New chroming line and aluminium & plastic injection machines.
  • New forging and CNC machines in China.
  • New press line, machining equipment and storage facility in India.

Local suppliers

Each time the Group integrates a new company or expands an existing facility it demonstrates its commitment to the industrial landscape in the regions in which it operates, as is evident in the percentage of local suppliers, which once again increased in 2017. The identification of suppliers located close to the Group’s factories is a crucial component of its purchasing strategy because it helps create wealth in these regions, while reducing logistics costs and import duties and naturally hedging exchange rate risk.

Each manufacturing facility makes sure that their supply chain professionals are familiar with and understand CIE Automotive’s Internal Code of Professional Conduct, which expressly stipulates the purchasing function’s fundamental guidelines, such as the provision of equal opportunities and the prevention of corruption. Once they have endorsed CIE Automotive’s principles, these professionals are in a position to explain the CSR criteria to their suppliers and ask them to in turn endorse them.


New supplier manual

One of the most important milestones for CIE Automotive’s supply chain in 2017 was the publication of the Global Supply Chain Manual. This document includes comprehensive information about the Group, how it works and what it expects of its suppliers. In short, it sets down the Group’s aspirations and how it plans to achieve them with the help of its suppliers.

The Global Supply Chain Manual details graphically and in plain language the MissionPurchasing Policy, the various product and service purchasing categories, the purchasing flowchart and the associated internal procedures and the requirements suppliers must meet in order to work with CIE Automotive.

The new document is available to anyone interested on the Suppliers tab of the corporate website. The Group hopes that it will satisfy the interest of numerous companies seeking information about the purchasing process.

The Manual was drawn up in keeping with the requirements of the new global automotive quality management standard, IATF 16949, which for the first time contemplates CSR criteria. CIE Automotive has adapted its procedures for the new standard, introducing the new requirements as warranted.

Supplier communication channels

To facilitate interaction with prospective suppliers, the Suppliers tab on the corporate website also provides the general purchasing terms and conditions by country and a dedicated e-mail address for enquiries: purchasing@cieautomotive.com

In addition, the Group engages with its supplier community at the corporate and local levels by meeting directly with them, attending trade fairs and through phone and e-mail contact.

In some markets, such as Mexico, it holds an annual Suppliers Day. Until 2016, prizes were awarded at this event to suppliers of productive material. In 2017, these prizes were expanded in scope to include suppliers of non-productive material with the aim of acknowledging the small and medium-sized enterprises, mainly local, that contribute to the Company’s business development and growth. In 2018, the plan is to additionally reward the supplier deemed most exemplary in terms of their integration of CSR criteria, whether due to their commitment to the environment, employees or other stakeholders.

Designing a Suppliers Portal

In 2017, CIE Automotive worked on designing a new Suppliers Portal, which is due to go live in the second quarter of 2018, in order to address growing interest in the Company on the part of suppliers all over the world and to ensure equal opportunities.

The portal will make it easier for suppliers to approach the Group. Following a prior registration process in which they can view and accept CIE Automotive’s policies and requirements, portal access requests will be analysed and accepted or denied; once authorised, suppliers will be asked to upload their certifications, read and fill out questionnaires addressing CSR issues, environmental management, conflict minerals, etc., based upon which they will be given a final score depending on the purchase category and quality and veracity of the information provided.

Anti-fraud and anti-corruption measures

CIE Automotive has a whistle-blowing channel for reporting irregular conduct or activities. whistleblowerchannel@cieautomotive.com

In 2017, one potential incidence of fraud or corruption on the part of purchasing staff was reported through this channel; the case was subsequently investigated following the stipulated internal procedure, the corresponding measures were taken and the case closed.

3.6.1 Supplier quality and service reliability

In keeping with the Quality Management System for the Automotive Sector (UNE-ISO/TS 16949), the CIE Automotive Group’s purchasing procedures require the periodic assessment of the firms supplying it with raw materials, components, subcontractors, logistics services and tools. For more information, refer to the Global Supply Chain Manual.

The requirements demanded of suppliers are aligned with their classification as a function of the product or service they supply. Over 93% of CIE Automotive suppliers of the product families deemed subject to assessment are UNE-ISO/TS 16949 or ISO 9001 certified; environmental certification under UNE-EN ISO 14001 and OHSAS 18001 certification is also positively rated.

For the suppliers that have yet to obtain any of these certifications, a schedule has been devised for either getting certification or having a third party certify that their work standards meet those of CIE Automotive.


Suppliers are evaluated by means of audits which assess and score them on the following parameters: planning, reception, training and skills, process, maintenance, inspection, packaging, storage, continuous improvement and environmental performance, customer satisfaction, documentation and corporate social responsibility. These audits are highly rated by the suppliers themselves as they generate benefits for their own organisations that they leverage with the rest of their customers.


Europe 125 24.9%
NAFTA 135 26.9%
Brazil 54 10.8%
Asia (India/China) 188 37.4%

3.6.2. Supply chain: labour and environmental commitments [103-1, 103-2, 103-3, 308-1, 414-1]

In 2017, CIE Automotive’s main suppliers were sent a mandatory social responsibility declaration which they were asked to endorse and sign in conjunction with their initial contracts or maiden orders. One of the goals for 2018 is to leverage the new Suppliers Portal to raise the profile of this document and make it globally enforceable.

By signing this document, the Company’s suppliers pledge to respect the International Labour Organisation’s (ILO) conventions. On the environmental front, they have to uphold the principle of precaution, take initiatives to promote greater environmental responsibility and encourage the development and dissemination of environmentally-friendly technologies.

These labour and environmental commitments are similarly reflected in the new Global Supply Chain Manual

Defining environmental requirements

In 2017, the main suppliers to each factory were sent a questionnaire in order to assess their level of environmental awareness. The results of this survey revealed that only the large multinational enterprises, mainly steel mills and plastics manufacturers, hold environmental certifications and/or report to the Carbon Disclosure Project (CDP). In most of the remaining cases, the firms reported they do not track any environmental aspects other than the odd intervention to reduce their power consumption and/or improve their waste management.

Definition of the environmental management criteria to be required of suppliers, a process to be launched in 2018, development and implementation of which will take several years, will be vital to helping small- and medium-sized suppliers to develop in this field.


Total no. of surveys sent to suppliers: 300. These suppliers represent over 50% of total purchasing volumes.
Total no. of responses received: 150
% of total responses affirming certification: 10%
% of total that report to the CDP: 5%

In 2017, information was also requested regarding the use of certain materials deemed ‘conflict minerals’ under section 1502 of the US Ley Dodd-Frank Act: cassiterite (for tin), wolframite (for tungsten), coltan (for tantalum), and gold ore. This law obliges listed US companies to disclose their use of the above minerals and indicate their origin and document such use following the stipulated procedure.


Total no. of letters sent out: 400
Total no. of responses received: 200
% reporting that they do not use these minerals: 95%
% of suppliers reporting that they do use these minerals: 5%
% of suppliers demonstrating that the source of these minerals is not a conflict source: 100% (of the 5% who reported to using these minerals).

All of these measures are designed to encourage suppliers to become more responsible, thus contributing to social development and environmental protection.

3.7 Environmental management [103-1, 103-2, 103-3, 307-1]

SDGs related with this chapter


Ensure sustainable consumption and production patterns.


Milestones in 2017

  • Membership of the Climate Change Cluster.
  • Implementation of a new environmental indicator: average environmental cost over revenue.

Lines of initiative undertaken in 2017

  • Formulation of an Eco-efficiency Plan per facility.
  • Establishment of a new scorecard indicator reflect each factory’s total environmental cost.

Lines of initiative identified for 2018

  • Allocation of the cost of emissions.
  • Start of the work required to calculate environmental footprints by product.

The manufacture and distribution of parts for the automotive industry on a global scale is an activity that has an inexorable impact on the environment. In order to minimise that impact, the Group strives to strike a balance between its business activities and environmental protection right from the product design stage, in keeping with the United Nations Global Compact principles.

Its environmental commitment – explicitly laid down in the Group’s Mission, Vision and Values and in its Health, Safety, Environmental and Quality (HSEQ) Policy – translates into the production of more environmentally-friendly products, the introduction of energy efficiency processes into its processes and installations, the rationale use of water and the correct management of waste.

In 2017, CIE Automotive continued to make progress on its efforts to combat climate change by executing a series of initiatives contemplated in its Environmental Strategy Plan, including the formulation of an Eco-efficiency Plan for each productive facility. It also added a new indicator to its scorecard: environmental costs over revenue.

Note that the Group did not incur any material sanctions for non-compliance with environmental laws and regulations in 2017.

Eco-efficiency Plans

Formulation of factory-specific Eco-Efficiency Plans, including a monitoring regime with specific reduction targets for each factory and a reporting system so that environmental performance can be duly monitored.

New indicators

In 2017, CIE Automotive added a new indicator to the process map, specifically environmental costs over revenue; the numerator factors in the cost of all things related with environmental management of the productive process, from the intake of the energy and water consumed to the exit of the waste generated and its ultimate management. The next step is to include the cost of emissions in this equation, even though CIE Automotive is not active in the emissions market.

Thanks to these indicators, CIE Automotive is now able to manage its impacts more precisely and take more adequate measures to reduce them.

Given the difficulty in properly comparing the indicators year-on-year on account of the constant growth in the size of the Group and the variety of technologies used in its factories, CIE Automotive uses the euro as its common denominator; note that this approximation is not entirely accurate either due to the impact of exchange rates on the various markets in which it operates.

Participation in the Forética’s Climate Change Cluster



Strengthen the means of implementation and revitalise the global partnership for sustainable development.

CIE Automotive defends the European Union’s stance with respect to the Paris Climate Agreement and the UN’s Sustainable Development Goal #13 regarding the efforts to halt global warming and curb greenhouse gas emissions.

In January 2017, CIE Automotive joined Forética’s Climate Change Cluster, a top-flight business group made up of 50 Spanish companies, whose mandate is to transpose into the Spanish landscape the main global climate change trends and debates from a business perspective and become an authority on corporate environmental matters.

As part of its stated objective of investigating and encouraging the adoption of the main international trends, the Climate Change Cluster addressed the following matters in 2017:

  • The impact of climate change on cities.
  • The ways enterprises can adapt for climate change.
  • The upcoming climate change legislation in Spain and the impact it will have on Spanish companies. The Cluster’s participation in several seminars organised by Spain’s Ministry of Agriculture & Fishing, Food and Environment contributed to laying the groundwork for drafting the bill for the upcoming Climate Change and Energy Transition Act.

3.7.1. Consumption of water and material resources [301-1, 301-2, 303-1, 303-3]

CIE Automotive uses water and raw materials intensively. Permanent revision of all processes is vital to ensuring responsible use of these resources.

Adequate management of water is a priority for the CIE Automotive as it needs water to cool materials shaped at high temperatures. In order to minimise water discharges, the CIE Automotive has proprietary water treatment systems that enable its recovery.


Indicator Definition Unit 2016 2017
Europe GRI 301-1 Raw material used Kg 225,071,461.0 235,002,550.4
GRI 301-2 Raw material re used Kg 64,124,067.0 76.126.684,6
% 28.50% 32.40%
Mahindra Europe GRI 301-1 Raw material used Kg 251,055,410.2 277,143,063.0
GRI 301-2 Raw material re used Kg 24,471,050.9 26,718,312.0
% 9.70% 9.60%
NAFTA GRI 301-1 Raw material used Kg 236,962,234.0 292,588,679.9
GRI 301-2 Raw material re used Kg 44,106,529.8 61,719,614.7
% 18.60% 21.10%
Brazil GRI 301-1 Raw material used Kg 62,664,350.4 102,588,358.3
GRI 301-2 Raw material re used Kg 23,006,269.4 34,090,451.9
% 36.70% 33.20%
Asia (India/China) GRI 301-1 Raw material used Kg 242,586,834.7 276,947,728.7
GRI 301-2 Raw material re used Kg 62,715,188.7 74,553,499.6
% 25.90% 26.90%
Total GRI 301-1 Raw material used Kg 1,018,340,290.4 1,184,270,380.3
GRI 301-2 Raw material re used Kg 218,423,105.8 273,208,562.8
% 21.40% 23.10%


Indicator Definition Unit 2016 2017
Europe GRI 301-1 Raw material used Kg/ K€ 292.8 257.6
GRI 301-2 Raw material re used Kg/ K€ 83.4 83.4
Mahindra Europe GRI 301-1 Raw material used Kg/ K€ 544.2 543.8
GRI 301-2 Raw material re used Kg/ K€ 53.0 52.4
NAFTA GRI 301-1 Raw material used Kg/ K€ 440.1 404.7
GRI 301-2 Raw material re used Kg/ K€ 81.9 85.4
Brazil GRI 301-1 Raw material used Kg/ K€ 284.4 312.5
GRI 301-2 Raw material re used Kg/ K€ 104.4 103.8
Asia (India/China) GRI 301-1 Raw material used Kg/ K€ 554.0 573.6
GRI 301-2 Raw material re used Kg/ K€ 143.2 154.4
Total GRI 301-1 Raw material used Kg/ K€ 419.6 400.6
GRI 301-2 Raw material re used Kg/ K€ 90.0 92.4

3.7.2. Waste, discharges and emissions management [306-1, 306-2, 306-3, 306-4]

CIE Automotive deploys a recycling system that enables the internal recovery of thousands of tonnes of remains deriving from its various productive processes.

In aluminium, for example, shaped using injection moulding and machining processes, CIE Automotive generates sizeable amounts of remains such as sprue, risers, starting pieces, etc. from the injection moulding process and shavings from the machining process. In both instances, the Company reuses these remnants in the melting process. It is worth highlighting a new process set in motion by CIE Celaya (Mexico) in order to reuse in-house the aluminium shavings generated in its machining processes; this waste used to have to be sent out for management.

The plastics division recycles sprue and other remains returned by its injection moulding process. The biggest amount of waste generated by CIE Automotive is steel from its stamping, forging and machining processes. Given that this steel cannot be recycled in full within the Group’s factories, it is delivered to a number of different local suppliers for end-to-end reuse.


Aluminium recycling (MT)

2015 2016 2017
48,089 61,437 84,125


Indicator Definition Unit 2016 2017
Europe GRI 306-1 Water discharge M3/year 159,796.0 148,967.3
Mahindra Europe GRI 306-1 Water discharge M3/year 300,427.3 413,632.2
NAFTA GRI 306-1 Water discharge M3/year 89,218.2 95,743.8
Brazil GRI 306-1 Water discharge M3/year 31,190.4 16,689.8
Asia (India/China) GRI 306-1 Water discharge M3/year 121,108.7 148,773.7
Total GRI 306-1 Water discharge M3/year 701,740.7 823,806.7


Indicator Definition Unit 2016 2017
Europe GRI 306-2 Industrial waste treated Ton 83,885.8 67,095.7
Mahindra Europe GRI 306-2 Industrial waste treated Ton 42,194.0 48,558.0
NAFTA GRI 306-2 Industrial waste treated Ton 32,630.6 42,868.8
Brazil GRI 306-2 Industrial waste treated Ton 15,952.3 19,122.6
Asia (India/China) GRI 306-2 Industrial waste treated Ton 83,577.4 84,307.2
Total GRI 306-2 Industrial waste treated Ton 258,240.1 261,952.3

3.7.3. Energy efficiency and emissions [302-1, 302-3, 305-1, 305-2, 305-3, 305-4, 305-5]

In recent years, CIE Automotive has made significant progress in terms of its energy efficiency, an area of priority importance because it helps reduce its environmental footprint and can translate into significant competitiveness gains.

The technologies that use energy most heavily and generate the most emissions – aluminium injection moulding and steel forging – are the key areas of focus for a range of initiatives that includes the reuse of the heat generated by the air compressors, the correct management of the distribution network, electric engines, furnaces, etc., as well as smaller details such as efficient lighting.


Indicator Definition Unit 2016 2017
Europe GRI 302-1 (D) Energy, direct consumption Gj 461,030.80 441,377.71
GRI 302-1 (I) Energy, indirect consumption Gj 657,641.02 694,749.92
Mahindra Europe GRI 302-1 (D) Energy, direct consumption Gj 345,219.09 318,799.31
GRI 302-1 (I) Energy, indirect consumption Gj 715,128.36 748,554.40
NAFTA GRI 302-1 (D) Energy, direct consumption Gj 346,130.86 388,682.37
GRI 302-1 (I) Energy, indirect consumption Gj 363,315.48 540,943.09
Brazil GRI 302-1 (D) Energy, direct consumption Gj 101,636.69 122,190.94
GRI 302-1 (I) Energy, indirect consumption Gj 379,636.33 512,872.70
Asia (India/China) GRI 302-1 (D) Energy, direct consumption Gj 136,807.60 111,087.86
GRI 302-1 (I) Energy, indirect consumption Gj 907,273.61 985,850.49
Total GRI 302-1 (D) Energy, direct consumption Gj 1,390,825.05 1,382,138.19
GRI 302-1 (I) Energy, indirect consumption Gj 3,022,994.80 3,482,970.60


Indicator Definition Unit 2016 2017
Europe GRI 305-1 Direct emissions CO2 ™ 29,646.05 28,353.39
GRI 305-2 Indirect emissions CO2 ™ 54,760.42 58,486.67
Mahindra Europe GRI 305-1 Direct emissions CO2 ™ 22,247.36 20,543.46
GRI 305-2 Indirect emissions CO2 ™ 74,098.54 75,998.27
NAFTA GRI 305-1 Direct emissions CO2 ™ 22,189.48 24,856.42
GRI 305-2 Indirect emissions CO2 ™ 46,145.92 70,596.58
Brazil GRI 305-1 Direct emissions CO2 ™ 6,519.22 7,962.10
GRI 305-2 Indirect emissions CO2 ™ 9,174.54 12,693.03
Asia (India/China) GRI 305-1 Direct emissions CO2 ™ 9,435.39 7,436.08
GRI 305-2 Indirect emissions CO2 ™ 222,618.14 241,360.28
Total GRI 305-1 Direct emissions CO2 ™ 90,037.49 89,151.45
GRI 305-2 Indirect emissions CO2 ™ 406,797.56 459,134.83

Emissions are calculated using the factors recommended by the IPCC (Intergovernmental Panel on Climate Change, set up by the United Nations and International Energy Agency).


Indicator Definition Unit 2016 2017
Europe GRI 302-3 (D) Energy, direct consumption Gj /K€ 0.60 0.48
GRI 302-3 (I) Energy, indirect consumption Gj /K€ 0.86 0.76
GRI 302-3 Energy, total consumption Gj /K€ 1.46 1.25
GRI 305-4 Total emissions CO2 CO2 ™/ k€ 0.11 0.10
Mahindra Europe GRI 302-3 (D) Energy, direct consumption Gj /K€ 0.75 0.64
GRI 302-3 (I) Energy, indirect consumption Gj /K€ 1.55 1.47
GRI 302-3 Energy, total consumption Gj /K€ 2.30 2.11
GRI 305-4 Total emissions CO2 CO2 ™/ k€ 0.21 0.19
NAFTA GRI 302-3 (D) Energy, direct consumption Gj /K€ 0.64 0.54
GRI 302-3 (I) Energy, indirect consumption Gj /K€ 0.67 0.75
GRI 302-3 Energy, total consumption Gj /K€ 1.32 1.29
GRI 305-4 Total emissions CO2 CO2 ™/ k€ 0.13 0.13
Brazil GRI 302-3 (D) Energy, direct consumption Gj /K€ 0.46 0.37
GRI 302-3 (I) Energy, indirect consumption Gj /K€ 1.72 1.56
GRI 302-3 Energy, total consumption Gj /K€ 2.19 1.94
GRI 305-4 Total emissions CO2 CO2 ™/ k€ 0.07 0.06
Asia (India/China) GRI 302-3 (D) Energy, direct consumption Gj /K€ 0.31 0.23
GRI 302-3 (I) Energy, indirect consumption Gj /K€ 2.07 2.04
GRI 302-3 Energy, total consumption Gj /K€ 2.39 2.27
GRI 305-4 Total emissions CO2 CO2 ™/ k€ 0.53 0.52
Total GRI 302-3 (D) Energy, direct consumption Gj /K€ 0.57 0.47
GRI 302-3 (I) Energy, indirect consumption Gj /K€ 1.25 1.18
GRI 302-3 Energy, total consumption Gj /K€ 1.82 1.65
GRI 305-4 Total emissions CO2 CO2 ™/ k€ 0.20 0.19

3.8 Community [102-13, 103-1, 103-2,103-3, 203-2, 413-1]

SDGs related with this chapter


End hunger, achieve food security and improved nutrition, and promote sustainable agriculture.


Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.


  • CIE Automotive doubled its community work donations in 2017 and its projects reached nearly 58,000 beneficiaries.
  • Committed participation of 2,400 employees in community work.


  • Donations to NGOs and other associations for projects related with child nutrition and education.
  • Sponsorship of sporting activities and events.
  • Encouragement of employee participation in a range of volunteering activities.
  • Collaboration with the public authorities.
  • Participation in different sector associations.


  • Definition of a community work model in line with the guidelines approved by the CSR Committee in December 2017.
  • Continued fine-tuning of the contribution to the community.
  • Boosting employee participation in a range of volunteering activities.

As a result of its work as a manufacturer of parts and subassemblies for the automotive market, CIE Automotive plays an important role in the economic and social development of the areas in which it operates by creating jobs, injecting life into the local business landscape and paying taxes. It also collaborates with the public authorities and other organisations in each region and invests in community development by means of its sponsorship and philanthropic activities. In addition, CIE Automotive strives to minimise the negative impacts generated by its manufacturing facilities and focuses its community programmes on local development needs and expectations, at all times framed by the principles laid down in its Social Action Policy: collaboration, transparency, the creation of value-added, long-term commitment, joint company-employee commitment, and a focus on disadvantaged places.

€ million

2015 2016 2017
Revenue 2,631.5 2,879.0 3,724.5
To shareholders (dividends)* 25.8 42.6 52.8
To employees (employee benefits expense) 600.4 631.7 776.1
To suppliers (consumption of raw materials and auxiliary materials) 1,470.4 1,619.0 2,155.1
To society (income tax paid) 31.9 43.3 55.9
Retained earnings 511.1 647.8 808.6

(*) Dividend paid during the year

CIE Automotive’s decentralised model, coupled with the fact that 90% of its factories are run by local managers, facilitates nimble decision-making in the community work arena. Specifically, it enables a quick response to sudden crises (the most noteworthy example being the earthquake in Mexico in September) to ensure that each country takes the decisions that create the most value.

CIE Automotive earmarked nearly €400,000 to community work programmes in 2017, mainly to a number of different NGOs, associations of various kinds and the student community. These donations reached over 58,000 beneficiaries. The joint company-employee commitment materialised in the participation by 2,400 employees in community work to which they devoted over 3,500 hours.

In addition, CIE Automotive plays a role in local development by creating jobs, purchasing from local suppliers, providing training and paying taxes in all its operating markets.

Community work by region

CIE Automotive sponsors activities at the corporate and local levels, in keeping with the United Nations Sustainable Development Goals. It focuses its efforts on combating social injustice and climate change, eradicating poverty, providing clean and safe water, women’s empowerment, job creation and economic growth, environmental protection and engaging in educational improvements, among other lines of action.

Some of the Group’s community programmes, framed by the community work policies in place in each region, are itemised below by way of illustration:

  • CIE Automotive collaborate with the Food Bank of Bizkaia and UNICEF (a United Nations agency).
  • Participation in programmes for integrating persons with disabilities into society/the workplace: In Italy, the Company worked to adapt vehicles for persons with disabilities in order to promote their well-being and integration into society.
  • Support for people with intellectual disabilities and for their families: CIE Automotive contributes to the care of people with intellectual disabilities through its donations to specialist associations such as Atzegi, AprendeTea, AFAGI and ANAIF.
  • Sponsorship of LaLiga Genuine: football league for people with intellectual disabilities which already has 18 football clubs competing, including the well-known Real Sociedad, sponsored by CIE Automotive.
  • Support for child education, skills training and job creation: CIE Automotive contributes to educational institutions and centres that support disadvantaged children and the integration of youths into society in Portugal and the Czech Republic. Moreover, CIE Automotive has collaboration agreement covering research projects, work practice and recruiting with universities and vocational training schools. The young graduate employment collaboration agreement with the Novia Salcedo Foundation stands out.
  • Promotion of local culture and sports: in Slovakia the Group organises a Sports Day and Christmas Party to promote sport and family traditions. In addition, it contributes over €1,000 to the Euskadi cyclist foundation, to mountain trekking groups, to the football teams of Aalen (Germany) and Orozko (Bizkaia, Spain), as well as sponsoring many other local activities in the communities in which it is present.
  • Sponsorship in Spain of the Lenbur Foundation, devoted to the study, recovery, recreation and publicising of the natural, industrial and cultural heritage of the Urola-Garaia area of the Basque region.
  • The US factories collaborate with organisations that research cures for cancer, leukaemia and diabetes and others that tackle crime and develop local schools (Angels of Hope, the Michael Ostrowski Cancer Foundation, the Children’s Leukaemia Foundation of Michigan (CLF), the Juvenile Diabetes Research Foundation, Crime Stoppers of Michigan).
  • Reforestation and conservation work in preservation areas: Some of the Mexican factories signed up for the initiative championed by the municipal government of Tultitlán encompassing
    the plantation of 1,200 trees in order to raise environmental awareness. Other facilities participated in conservation work in the protected nature reserves of Cerros El Culiacán y La Gavia promoted by the government of Guanajuato (Celaya).
  • Donations in the wake of the earthquake in Mexico of 19 September: CIE Automotive’s Mexican factories and their staff threw themselves into the earthquake relief effort. In addition, given CIE Automotive’s significant presence in this market, the Corporate Community Department made donations to a number of NGOs and charities working to cover basic necessities on the ground
  • Programmes for improving quality of living in the community: CIE Automotive participates in programmes for the eradication of hunger and poverty championed by the Brazilian Ministry of Social Development.
  • Participation in the ‘Young Apprentice’ project, championed by the town council of Diadema (Brazil) in order to provide schooling to homeless children.
  • Contribution to food safety and means of livelihood for the neediest by means of the provision of guaranteed clean water in the community of Sao Paulo.

The Mahindra CIE and Bill Forge factories are known for encouraging their employees to participate in voluntary community work, with a priority focus on the areas of education, environmental protection, personal and road safety and health.

  • Sponsorship of the Nanhi Kali project: Creation of the Nanhi Kali project was framed by the conviction that skilled women with access to education would not only contribute to the economy but would also make a big difference to reducing and eradicating social injustices such as the dowry system and arranged child marriage. Nanhi Kali was designed as a sponsorship initiative which calls on others to participate in and support the education of girls and young women in India. Mahindra CIE contributes to this project in the form of donations and volunteering on the part of 70 of its employees.
  • Promotion of and assistance for education: CIE Automotive provides support for schools such as materials and funds for infrastructure in the most disadvantaged communities. It also gives scholarships to the brightest students so that they can further their education.
  • Personal and road safety programmes focused on and targeted at teenagers. The idea is to educate adolescents about how to stay safe, taking a preventative approach.
  • Health services in schools and villages: CIE Automotive also contributes to medical check-ups for students and villagers with the aim of furthering the early detection and prevention of diseases.
  • Blood donation drives in which over 700 employees participated in 2017.

Relations with the public authorities [415-1]

CIE Automotive is politically neutral and does not finance, either directly or indirectly, political parties or their representatives or candidates, either in Spain or abroad.

Its dealings with the local authorities are based on collaboration and stringent compliance with prevailing legislation, while engaging openly and continuously with them with the aim of minimising potentially adverse impacts on local communities. One of its goals is to advise the authorities on technical matters related to the automotive industry.

Membership of business associations [102-13]

As a significant player in the automotive parts industry, CIE Automotive is a member of a number of business associations, whose remit is to defend the automotive industry’s interests vis-a-vis government.



  • The Spanish association of automotive equipment and components manufacturers Member of the management board and chair of the R&D committee.


  • Association for management progress



  • The European Association of Automotive Suppliers Member of the R&D committee.



  • The European Green Vehicles Initiative Association.



  • A Spanish automotive and mobility technology platform Membership of the governing board.


  • A private applied research centre. Membership of the management board.



  • The Basque automotive cluster Chair of the management board.





  • Automotive Intelligence Center Vice-chair of the management board.


  • Member of the executive committee of the taskforce pilot testing advanced manufacturing in the Basque region.