Mr. Costamagna stated, "Fuel Systems is establishing regional leadership roles and refocusing our senior executive team as an important step to prepare for our next phase of growth and development. The emerging North American marketplace for CNG/LPG vehicles is growing rapidly and is anticipated to receive additional governmental and legislative support. This tremendous opportunity demands additional focus...
I own both CLNE and FSYS. FSYS was making a ton of profits in 2009 in Europe since there were a lot of subsidies at the time for purchasing natural gas vehicles. FSYS has an agreement with FIAT who produces a lot of the nat gas vehicles over there in Europe.
When the substantial Italian subsidies for nat gas vehicles disappeared in 2010, this really hurt Fuel Systems profits on year over year comparisons, but they are growing elsewhere around the world. Here in the US, they have a pre-market arrangement with GM to outfit 2011 GM Express and Savannah vans for CNG at their Union City, Indiana plant before GM dealers sell these vans as new. The response to these new GM CNG vans is gaining traction with AT&T now a big customer. FSYS has a similar relationship with Ford in South America. They have a relationship with Tata Motors and Suzuki Maruti in India. Fuel Systems' long relationship with Fiat makes Fuel Systems the leading candidate for involvement with Chrysler's upcoming push to offer nat gas vehicles in the United States. Fiat owns a large percentage of Chrysler. These are some of Fuel System's involvements with OEMs.
On an after market basis for light vehicle conversions to nat gas, I am pretty sure that Fuel Systems is the worldwide leader. Here in the United States, that after market conversion business competes with Clean's subsidiary, BAF Technologies, among others. Whereas profitability for many companies involved in the nat gas vehicle space is only a gleam in their eye, Fuel Systems has been profitable for quite some time. Just my opinions.
They seem fairly inexpensive, good bit of cash, especially after recent offering. Started following them in the last few weeks. They seem to be put together from several acquisitions, and I have no feel for management's ability. Do you have an opinion or position on/in FSYS?