Automotive

Components
Ltd Investor

Presentation
November 2014

Reflecting Leadership

Safe Harbour
This presentation and the accompanying slides (the Presentation), which have been prepared by Talbros
Automotive
Components Limited (the Company), have been prepared solely for information purposes and do not
constitute any offer,
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or binding
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Companyconsiders
will be
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hascontract
been prepared
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Company whatsoever.
based on information
whichofthe
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but
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means
of amakes
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containing
detailed
about the Company.
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or warranty,
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orinformation
implied, whatsoever,
and no reliance shall be placed
on, the truth,
accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation
may
not be all contains certain forward looking statements concerning the Companys future business prospects
This presentation
inclusive
and may not contain all of the information that you may consider material. Any liability in respect of the
and business
contents
of, or
profitability,
which are subject to a number of risks and uncertainties and the actual results could materially differ
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omission
from those in from, this Presentation is expressly excluded.
such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited
to, risks and
uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and
international),
economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost
over runs on
contracts, our ability to manage our international operations, government policies and actions regulations,
interest and other
fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case
any of these
forward looking statements become materially incorrect in future or update any forward looking statements made
from time
to
Gaskets
Heat Shields
Forgings
Chassis Systems
Rubber Components
Steering & Suspension2
time by or on behalf of the company.

Reflecting Leadership

Table of Contents

Corporate Overview
Diversification Products , Customers & Markets for
Creating
Value
Financials

Gaskets

Heat Shields

Forgings

Chassis Systems

Rubber Components

Steering & Suspension3

Reflecting Leadership

Corporate Overview
Over 58 years of experience in Auto Component
manufacturing
Promoted by Talwar Family with 51.48% holding lead by Mr. Naresh Talwar and Mr.
Umesh
Talwar
Diversified Auto Component player with presence across Two Wheelers, Passenger,
Commercial
Vehicles and Farm
Equipments
Wide client base, ~40% revenue from top 5
clients
Businesses across OEMs, Exports and After
Market
Five International Technology Tie-ups including 3 JVs for Best in Class Products
Diversified Portfolio - Gaskets, Forgings, Suspension Systems, Anti-vibration Products
& Hoses
Consistent Dividend Payout over 50 years
Gaskets

One of the Most Hedged Auto Component

Player

Heat Shields

Forgings

Chassis Systems

Rubber Components

Steering & Suspension4

Reflecting Leadership

Key Milestones
Payen Talbros
incorporated in
collaboration with
Coopers Payen
UK

1956
2012

Technical Agreement
with Nippon
Leakless,
Japan to
manufacture
Non-Asbestos
Gaskets

1979-85

1979 - Renamed as
Talbros
Automotive Components
Ltd

1980 Maiden
IPO
1985 Transfer of
from
Payen International
technology
UK
Gaskets

Heat Shields

Forgings

2008 - Technical
Agreement with
SANWA,
Japan
2009 Technical
Agreement with
Interface,
Germany

1997

2005

JV with Magneti
Marelli, Italy for
Suspension
components

2008-09

JV with Nippon
Leakless
Corporation, Japan for
Automotive Gaskets
Diversification into
Forging
business
commenced
Chassis Systems

Rubber Components

2011

JV with Marugo
Rubber, Japan for
Anti-Vibration
and
Hoses

Steering & Suspension5

Reflecting Leadership

The Leadership Team

Mr. Naresh Talwar

Chairman

Steering
Committee

Mr. Vidur Talwar

Gaskets

Heat Shields

Mr. Varun Talwar

Forgings

Chassis Systems

Mr. Umesh Talwar

Vice Chairman &
MD

Mr. Anuj Talwar

Rubber Components

Steering & Suspension6

Reflecting Leadership

Executive Management

Mr. R. P. Gupta
CEO

Mr. M. S. Ajmani
CFO

Mrs. Seema
Narang
Company

Mr. Koji Homma

Gaskets

Secretary

Managing Director,
Nippon Leakless
Talbros
Heat Shields
Forgings

Mr. S. T.
Hebber
President,
Gasket Division

Mr. Ashish Gupta

Mr. Prakash
Khose
President,
Forging Division

Mr. Yoshiaki Yunoki

CEO,
Managing Director,
Magneti Marelli Talbros
Talbros Marugo
Rubber
Chassis Systems
Rubber Components
Steering & Suspension7

Reflecting Leadership

Executive Management
Mr. Rajeev Paal
Gupta

CEO
He holds a Bachelors in Engineering and a PGDBA and
has over
30 years of experience with BHEL, Modi Xerox, Timex
Watches
and Subros Ltd. Mrs. Seema

Narang

Mr. Manvinder Singh

Ajmani

CFO
With experience spanning M/s. HEG, International
Tractors,
Jindal Sour Ltd, Eicher Motors Ltd to name a few he has a
total
of 27 years ofMr.
financial
experience
Suryanaryan
T.

Hebbar

Company
President Gaskets
Secretary
She has over 22 years of experience in the secretarial He
has over 20 years of experience in the Auto
Division
Components
department and has worked with Whirlpool of India and
sector with JBM Auto, Rangsons Electronics, TVS motors,
Aksh
TACO,
Optifibre Ltd
Visteon and DELPHI

Mr. Prakash Khose

Mr. Koji Homma

President Forging
Managing Director Nippon Leakless Talbros Pvt.
He
is
a
Mechanical
Engineer
with
specialisation
in
He
Division
Ltdholds a Bachelors of Engineering degree from Tokyo
Foundry and
and has
Forge Technology. His experience spans across Mahindra
spent over 30 years with Nippon Leakless holding various
CIE,
posts
Varroc Engineering, Bharat Forge and DGP Hinoday

Mr. Ashish Gupta

Mr. Yoshiaki Yunoki

CEO Magneti Marelli Talbros Pvt. Ltd

He holds a BE degree and has over 24 years of
experience with
manufacturing companies in India, Europe & CIS
Gaskets

Heat Shields

Forgings

Managing Director Talbros Marugo Rubber Pvt. Ltd

He is a science graduate from University of Tokyo and has
spent
32 years with Marugo Rubber holding various posts

Chassis Systems

Rubber Components

Steering & Suspension8

Reflecting Leadership

Business Overview

Consolidated
Revenue
Contribution

Gaskets

62%

Forging

18%

Nippon Leakless
Talbros

10%*

Magneti Marelli
Talbros

8%*

Talbros Marugo
Rubber

Standalone
Gaskets

* Talbros share in
JV
Heat Shields
Forgings

%*

Products
Multi Layer Steel, Rubber Molded, Exhaust
Manifold, Edge Molded, Cylinder head, Heat
Shield

Housing & Yoke Shafts, King Pins, Gear

Blanks

Automotive Gaskets for Honda and other

Japanese
OEMs

Suspension Systems: Control Arms, Knuckles,

Front
Axle and Rear Axle

Anti Vibration parts such as : Bushes,

Exhaust
Hanger, Dust Cover, Hoses

Above data excludes other income

Chassis Systems

Rubber Components Steering & Suspension9

Reflecting Leadership

Gaskets

FY14 Revenue Rs 227

Crores

In House tool design and

manufacturing

Others
4%

Export
13%

38% Market share in Gaskets 3x the nearest

competitor
Market Leader in Two Wheeler, Agri & Off Loaders, HCV &
LCV
segment
Tier I OE supplier for 12 of our customers

After
Market
19%
OEM
64%

Single Source Supplier for 5 of our

customers
100%
of Sales compliant with Asbestos Free
material

Multi Layer Steel

Gaskets

Rubber Molded

Heat Shields

Forgings

Heat Shield

Exhaust Manifold

Chassis Systems

Edge Molded

Cylinder Head

Rubber Components Steering & Suspension

1010

Reflecting Leadership

Forging

FY14 Revenue Rs 67
Crores

One stop solution for Hot Forging (750 to 1,600 Ton

Press)

OEM
31%

In-House tool design and

manufacturing
Strong presence in Overseas Market & Supplier to top
Tier I
companies
Capability to handle raw material grade across Carbon Steel,
Alloy

Export
64%

Others
5%

Steel, Stainless Steel

One Stop Solution for Die Design, Machine parts and
Heat
treatment (Normalizing and
Carbohydrizing)
King Pins
Gear Blanks

Gaskets

Heat Shields

Forgings

Chassis Systems

Housing and Yoke

Shafts

Rubber Components Steering & Suspension

1111

Reflecting Leadership

Nippon Leakless Talbros Pvt. Ltd

Nippon Leakless Corporation,
Japan

With annual sales of $200+ million Nippon Leakless is

one
of the largest global manufacturers of gaskets for
automotive, motorcycle, power equipment, industrial
and
Established
in 2005
with 40% Talbros
a major Honda
supplier
Share

Non- asbestos Automotive Gaskets for Honda and

other
Japan OEMs

Sales Rs.
Crores
+17%

100% Sales to
OEMs:

32

Hero Motor Corp, HMSI, India Yamaha, Honda Car

India,
Maruti Suzuki, Honda Siel Power
Products

Gaskets

Heat Shields

Forgings

20

33

37

25

FY10 FY11 FY12 FY13 FY14

* Talbros share in JV
Rubber
Components
Steering & Suspension
Chassis Systems
1212

Reflecting Leadership

Magneti Marelli Talbros Chassis Systems Pvt. Ltd

Magneti Marelli S.P.A, Milano
A Fiat Group company, Magneti Marelli has a annual
revenue of 6 Billion. Suspension business line
generate
over 470 Million revenue worldwide with advanced
light
50:50
partnership
began
in 2011,
production
weight
technologies
having
diverse
customer base
commenced in
April 2012
The JV has the capability for design and development
for
complete chassis for OEM

Suspension Systems for Passenger Vehicles and Pick

ups:Control Arms, Knuckles, Front Axle and Rear
Axle
100% Sales to
OEMs:
Bajaj Auto, Mahindra & Mahindra, Maruti Suzuki India,
TataMotors
Significant share of Control Arms business from
Maruti
Gaskets

Heat Shields

Forgings

Chassis Systems

Sales Rs.
Crores

29

16

FY13
FY14
* Talbros share in
JV
Steering & Suspension
Rubber Components
1313

Reflecting Leadership

Scope of Chassis Systems

Rear Twist
Beam Axle

Front Cross
Members

Wheel Group
+ Corner
Module

Control Arms

Knuckles
Existing
Business
Gaskets

Planned for
Future
Heat Shields

Forgings

Chassis Systems

Rubber Components

Steering & Suspension

14

Reflecting Leadership

Talbros Marugo Rubber Pvt. Ltd.

Marugo Rubber Industries, Japan
in

Marugo Rubber a $300 Million company, global leader

supply of anti-vibration product and hoses to OEMs.

50:50 partnership began 2012, production
commenced in
February 2013
The JV has the capability to provide technical knowhow
for Design, Development & Validation for OEM

Anti Vibration Products & Hoses: Engine Mounts,

Strut
Mounts, Mufflers & Hangers, Suspension Bushes,
Rubber Bushes, Hoses
100% Sales to
OEMs:

Maruti Suzuki, QH Talrbos, Endurance Technologies,

Rane
(Madras) Ltd, Escort India,
TATA

Gaskets

Heat Shields

Forgings

Chassis Systems

Sales Rs.
Crores
5.1

0.4

Feb-Mar 2013
FY14
* Talbros share in
JV
Steering & Suspension
Rubber Components
1515

Reflecting Leadership

Scope of Anti-Vibration & Hoses

Fuel Hose

Strut Mount

Engine Mount

Suspension
Arms Bush

Air Hose

Steering Bush
Existing
Business
Gaskets

Exhaust
Hanger

Planned for
Future
Heat Shields

Forgings

Chassis Systems

Rubber Components

Steering & Suspension

16

Reflecting Leadership

Technical Licensing Agreements

Interface Solutions Altenkirchen,
Germany

Year 2008 : Technical know how to manufacture Non-asbestos Beater Addition

Jointing
A key raw material required for manufacturing gaskets conforming to international
standards
100% Asbestos free Sales

SANWA Packaging Co. Ltd,

Japan
Year 2009 : Technical Collaboration for Heat Shields used in automotive
applications
Year 2011 : Technical Collaboration for Partial coating technology for Multi Layer Steel
Gaskets

Gaskets

Heat Shields

Forgings

Chassis Systems

Rubber Components Steering & Suspension

1717

Reflecting Leadership

Diversified Customer - OEM

2 Wheeler

Gaskets

Passenger

HCV/LCV

Agri & Off

Loader

Exports

Hedged customer base, 40 % revenue from top 5

customers

Heat Shields

Forgings

Chassis Systems

Rubber Components

Steering & Suspension

18

Reflecting Leadership

Strategic Manufacturing Locations

Plant

Gasket
Forging
Nippon
Leakless
Talbros
Talbros Marugo
Rubber

Gaskets

Heat Shields

Forgings

Chassis Systems

Faridabad Haryana
Pune Maharashtra
Sitarganj
Uttarakhand
Bawal
Haryana
Bawal Haryana
Haridwar
Uttarakhand
Manesar
Gurgaon

Magneti Marelli
Talbros

Faridabad Haryana

Material Division

Sohna
Gurgaon
Faridabad
Haryana

R&D Centres

Manufacturing sites

Location

Rubber Components

Steering & Suspension

19

Reflecting Leadership

Table of Contents

Corporate Overview
Diversification Products , Customers & Markets for
Creating
Value
Financials

Gaskets

Heat Shields

Forgings

Chassis Systems

Rubber Components Steering & Suspension

2020

Reflecting Leadership

Diversified Product Portfolio

JV with Marugo
Rubber

Evolution
Continues...

Revenue FY07

JV with Magneti
Marelli

Hoses

Hoses

Anti Vibration Anti Vibration

TA with SANWA
Products
Products
Acquired Sheet
for 2
Wheelers
Metal,
Entry
Forgings,
JV into
Chassis Systems
Chassis Systems
Chassis
with
Systems
NLK - Gaskets

Gasket
100%

Heat Shields

Heat Shields

Heat Shields

Heat Shields

Revenue FY14

TAA with Nippon

Sheet Metal
Leakless
Market Leader
in
Gaskets

Forgings

Forgings

Sheet Metal
Forgings

Anti-Vibration
Sheet
andMetal
Hose
2%
Suspension
SForgingsyst
em
8%

Non Asbestos Non Asbestos Non Asbestos Non

Asbestos
Gaskets
Gaskets
Gaskets
FGasketsorgi

Sheet Metal

Sheet Metal

Forgings

Forgings

Gasket

Non
Asbestos72%
Gaskets

Non Asbestos
Gaskets

Gasket

Gasket

Gasket

Gasket

ng
Gasket
18%

Gasket

Gasket

1956

2005

2007

2009

2011

2013

2014

Gaskets

Heat Shields

Forgings

Chassis Systems

Rubber Components

Steering & Suspension

21

Reflecting Leadership

Diversified End Users

JV with Nippon Leakless

Domestic Sales
CAGR

Passenger
Cars

2 & 3 Wheelers
9%

29%

Captured the

emerging demand

in Two

Wheelers in India
90%+ Two Wheeler market covered
(Together
with TACL and JV)

JV with Magneti Marelli

From being Build to Print Stamping company

FY07

FY14

HCV & LCV

11%

FY07

FY14

to
Design & manufacture all chassis
components
JV
Marugo
forwith
passenger
carRubber
segment

Agri & Off

Loaders

Helped Maruti to localise production and

gained
business in passenger vehicles

20%

Technical
agreements

FY07
Gaskets

FY14
Heat Shields

FY07
Forgings

FY14

SANWA: Heat Shield technology for

automotive
applications
Interface Solutions: Control on Material
Sourcing

Chassis Systems

Rubber Components

Steering & Suspension

22

Reflecting Leadership

Diversified Markets

FY07

Gaskets :

Others
5%

Going Asbestos
Free...

Achieved 100% Asbestos free

production in
FY14

gasket

International
Contracts

Export
9%

In the process of signing export contracts

with
major OEMs to get potential
international
business
Gasket exports growing at a 11% CAGR
since
FY07

Forging :

Direct Export to Agri-major Tier-1

companies
DANA Corp and Carraro increasing, end
users
being
Forging
exports
by 50% CAGR since
John
Deeregrew
and Caterpillar
FY10
Gaskets

Heat Shields

Forgings

Chassis Systems

OEM
75%

After
Market
11%

FY14

Others
3%
Export
20%

After
Market
12%

OEM
65%

Rubber Components Steering & Suspension

2323

Reflecting Leadership

Evolving Product Portfolio

Tie-Ups

Talbros
Automotive
Components

Products

To be launched
by

Heat Shields for Passenger

Car

FY15-16

Post Coating MLS Gaskets

FY 15-16

Front Cross member

Magneti Marelli
Talbros

Rear Twist Beam Axle

Wheel group assembly

Talbros Marugo

Engine Mount

FY15-16

FY 15-16
FY 16-17
FY 15-16

Rubber
Gaskets

Heat Shields

Forgings

Chassis Systems

Rubber Components Steering & Suspension

2424

Reflecting Leadership

Optimising Diversified Portfolio

Group Company QH Talbros has TA
(Technical Assistance) with
MUSASHI, JAPAN for Ball Joint
Assly.

Talbros Marugo Rubber (50:50

JV) has design and manufacturing
capability for Suspension Bushing

Magneti Marelli Talbros has

design and manufacturing
capability for Chassis Systems

Unique combination for single point sourcing of Suspension Arm

Assembly
Gaskets
Heat Shields
Forgings
Chassis Systems
Rubber Components Steering & Suspension
2525

Reflecting Leadership

Table of Contents

Talbros Corporate Overview

Diversification Products , Customers & Markets for
Creating
Value
Financials

Gaskets

Heat Shields

Forgings

Chassis Systems

Rubber Components Steering & Suspension

2626

Reflecting Leadership

Business Divisions
Revenue FY14 Rs 368
Crores
Magneti Marelli
Marugo
Talbros
8%

EBIDTA FY14 Rs 43
Crores

Talbros
Rubber
1%

Magneti Marelli
Talbros
0%

Nippon
Leakless
Talbros
18%

Nippon
Leakless
Talbros
10%

Standalone
Business
81%

Talbros Marugo
Rubber
-2%

Standalone
Business
84%

* Including other
income

Gaskets

Heat Shields

Forgings

Chassis Systems

Rubber Components Steering & Suspension

2727

Reflecting Leadership

Q2FY15 highlights
Revenue

EBIDTA

+10%

+15%
99.2

PAT
+33%
3.2

11.6
10.1
2.4

89.9

Q2FY14

Q2FY15

Q2FY14

Q2FY15

Q2FY14

Q2FY15

* Rs Crores
Gaskets

Heat Shields

Forgings

Chassis Systems

Rubber Components Steering & Suspension

2828

Reflecting Leadership

Q2FY15 Business Highlights

Gaskets Division: Strong order book built on excellent customer

relationship with
automakers and robust distribution network for the aftermarket is driving

Forgings Division: Slowdown witnessed in Europe and Labour Issues resulted in

growth
lower
turnover affecting margins. Effective October 2014, labour issues have been
completely
resolved
Joint Ventures

Nippon Leakless Talbros: With excellent revenue growth in H1FY15 and expanding
margins
the company has improved bottom-line significantly

Magnetti Mareli Talrbos: The process of building a robust product line is progressing
as per
schedule. With securing relationships with Key OEMs, better performance is expected
going
forward
Talbros Marugo Rubber: Besides Anti-vibration products, inter-cooler Hose Project is
on
schedule and is expected to get completed by Q3FY15. The company is expected to
turn cash
positive
Q4 Shields
FY15
Gaskets byHeat
Forgings
Chassis Systems
Rubber Components Steering & Suspension
2929

Reflecting Leadership

Consolidated P & L Statement

Rs. Cr

Q2FY15
98.1

Revenue

Q2FY14 YoY %
88.4
11%

1HFY15 1HFY14
190.4
180.4

YoY %
6%

FY14
363.0

2.5

2.4

3%

5.9

89.9

-30%
10%

192.9

182.8

6%

368.9

55.4
11.4

49.2
11.0

13%
3%

105.6
23.5

101.2
21.5

4%
9%

206.3
42.4

Other

20.8

19.6

6%

40.8

38.7

5%

77.6

Expenses

11.6

10.1

15%

23.0

21.4

8%

42.6

11.69%

11.23%

4.4

4.5

Depreciation
Exceptional

2.6

2.6

0.0

0.0

Item

4.6

3.0

PBT
Tax

1.4

PAT

Other Income

1.1

1.5

Total Income from

Operations

99.2

Raw Material
Employee Cost

EBITDA Margin
Interest

PAT Margin
Gaskets

Heat Shields

11.93% 11.68%
9.0

9.1

5.3

5.1

0.0

0.0

8.8

7.2

0.6

56%
160%

2.7

3.2

2.4

33%

3.23%

2.69%

Forgings

-3%
-1%

Chassis Systems

11.55%
-1%
3%

19.0
10.5
8.8

1.0

22%
176%

22.0
2.7

6.1

6.2

-2%

19.3

3.17%

3.41%

Rubber Components

5.24%
Steering & Suspension
30

Reflecting Leadership

Consolidated Balance Sheet

Mar14 Rs. Cr

Rs. Cr

Sep14

Shareholders
Fund

125.4 119.3
12.3

Share Capital

113.0 106.9

Reserves &
Surplus
Total Non Current
Liabilities
Long Term
Borrowings
Other Long Term
Liabilities
Total Current
Liabilities
Borrowings
Other Current Liabilities
Trade Payables
TOTAL EQUITY &
LIABILITIES
Heat Shields

40.5

40.8

30.7

30.9

9.7

9.8

Mar14

Total Non Current

Assets

139.3 134.1

Fixed Assets
Long Term loans &
Advances

15.4

11.4

5.1

4.5

118.7 118.2

Other Non Current Assets

Total Current
Assets

222.3 211.9
110.7 106.8

80.4

77.2

Inventories
Trade
Receivables
Cash & Cash Equivalents

84.2

74.9

Short Term loans &

30.2

26.4

31.1

33.8

Advances

0.7

0.9

195.7 186.0

Short Term

Gaskets

12.3

Sep14

361.6 346.0

Other Current Assets

68.4

69.7

12.3

8.0

361.6 346.0

TOTAL ASSETS
Forgings

Chassis Systems

Rubber Components

Steering & Suspension

31

Reflecting Leadership

Consistently paying Dividend for the last 50 years

In Rs

1.2

1.2

1.2

1.2

1.2

Aug-11

Aug-12

Sep-12

Sep-13

Sep-14

1.0

0.5

Sep-09

Gaskets

Jul-10

Heat Shields

Forgings

Chassis Systems

Rubber Components

Steering & Suspension

32

Reflecting Leadership

Promoter Shareholding
53%

43%

45%

46%

47%

Sep-11

Sep-12

Sep-13

40%
37%
29%

26%

Sep-06

Gaskets

Sep-07

Heat Shields

Sep-08

Forgings

Sep-09

Sep-10

Chassis Systems

Rubber Components

Sep-14

Steering & Suspension

33

Reflecting Leadership

For further information, please

contact:
Company :

Investor Relations
Advisors :

Talbros Automotive Components Ltd.Strategic Growth Advisors Pvt.

Ltd.
CIN: L29199HR1956PLC033107
Mr. Navin Juneja Director & Group CIN:
U74140MH2010PTC204285
CFO
Email:
rruchi@sgapl.net
/
Ms. Ruchi Rudra/ Ms. Neha
navinjuneja@qhtalbros.com
sneha@sgapl.net
Shroff
www.talbros.com
www.sgapl.net

Gaskets

Heat Shields

Forgings

Chassis Systems

Rubber Components Steering & Suspension

3434