Solero Forecasts Strong Growth
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During Solero Technologies’ year-end celebration Tuesday, the company teamed up with Make-A-Wish Mississippi to grant five-year-old Arianna Lee of Sallis, Miss., her wish to visit Disney World. Arianna, who is fighting leukemia, also enjoyed an early stop from Santa and a Christmas song from Leilyn Farris. Also pictured are Make-A-Wish Development Manager Erica Rivers (right) and Arianna’s parents.
WATER VALLEY — More than 100 new jobs are expected to be added at Solero Technologies’ Water Valley plant in the coming years, CEO Dr. Donald R. James announced Tuesday morning during the company’s annual year-end celebration. James said the expansion will be driven by new business awards and increasing demand across the company’s global automotive product lines.
The announcement came as part of an hour-long celebration held Tuesday morning at the plant that outlined what James described as a “transformational” future for Solero Technologies. The company is preparing for more than $200 million in anticipated new business awards, including major programs in transmission control technologies, semi-active suspension and emerging electric-vehicle components. “Water Valley has a very strong future,” James told employees. “These programs position us well for the next decade.”
Tuesday’s event opened with a welcome from Solero Senior Vice-President Chris Byrd and a National Anthem performance by Ole Miss Choir member Leilyn Farris. Local civic leaders attending included Mayor Tommy Reynolds, Rep. Kevin Horan, Senator Ben Suber and Yalobusha County Economic Development Director Kagan Coughlin. Representatives from the YMCA, Compassion Food Ministry and the Water Valley Main Street Association were also present as the company continued its tradition of giving back to the community. Solero Technologies awarded $5,000 each to Compassion Food Ministry and the YMCA as part of the celebration. Executives from Atar Capital, the Los Angeles–based private investment firm that owns Solero, also attended.
The celebration also included a special partnership moment with Make-A-Wish Mississippi. Solero helped surprise five-year-old Arianna Lee of Sallis, Miss., who is battling leukemia, by announcing that her wish to visit Disney World will be granted. Arianna also received an early visit from Santa and a Christmas song from Leilyn Farris as part of the presentation.
The celebration marked just over one year since Solero’s purchase of Kendrion Automotive, finalized in October 2024. That acquisition expanded the company’s global footprint to Germany, Czechia, Romania, bringing Solero’s workforce to roughly 1,400 worldwide. James said integrating the Kendrion operations into a unified global structure was one of the biggest achievements of the year, crediting the IT, engineering and manufacturing teams for building what the company now calls the “Solero-Sphere,” a consolidated global operating system.
James then walked employees through a detailed quarter-by-quarter review of 2025. The year began with the company’s PRO-A.C.T. Strategic Initiative expanding globally, resulting in $15 million in cost-structure savings. International talent exchanges between Water Valley and European plants strengthened best practices and standardized operations.
In the second quarter, Solero completed the integration of its newly acquired plants, merging all locations into the same technology and process framework within six months of the acquisition’s close. “That’s bringing an entire company under one roof,” James said. “It’s a major accomplishment.”
The third quarter brought a series of new business launches: a semi-active suspension program with KYB in Romania, an expansion with Cummins in Germany and additional business from General Motors, which remains Water Valley’s largest customer. James also highlighted a new EV technology win for a product called the eVALV, which will be built on the existing SSA line in Water Valley. “This shows that our products are fit for the future,” he said.
The fourth quarter brought one of the year’s biggest financial challenges: a sharp rise in tariffs tied to what James referred to as “Liberation Day,” a supply-chain shift that had been making headlines throughout the year. For Solero, the impact was immediate — the company absorbed about $6.5 million in unexpected tariff costs, a hit that directly affected global operations.
James emphasized that managing this increase required close coordination between Solero’s sales team and purchasing team. Working together, they renegotiated pricing with OEM customers and secured full recovery of the entire $6.5 million. “Round of applause to the sales team,” James told the employees. “That was a huge challenge.”
Even more significant, James said, was what happened next. After recovering the initial loss, Solero’s sales group successfully negotiated new terms with its OEM partners guaranteeing 100 percent recovery of any future tariff increases for the foreseeable future. James praised the team again, calling it an important protection for Solero’s cost structure going forward.
Looking ahead, James said two major new contracts will also be a big boost for the Water Valley plant. One involves Hyundai TRANSYS, the supplier responsible for all of Hyundai’s transmissions worldwide. The potential contract represents roughly $125 million in lifetime business for Water Valley. A second award with Fox Factory would introduce a new semi-active suspension product for the plant. Combined with a third award tied to European operations, James said the company is pursuing roughly $200–$250 million in new global business.
James also shared encouraging industry trends. General Motors, in its third-quarter letter to shareholders, announced it would retain internal combustion engine production much longer than previously projected. Earlier plans had forecast significant EV displacement by mid-decade, but GM’s updated strategy aligns with Solero’s product strengths. Internal projections show that about 73 percent of the products currently made in Water Valley will remain relevant for at least the next ten years. “That is outstanding news,” James said.
He then outlined four priorities for 2026: preserving cash, securing $80 million in new awards by mid-year, continuing to reduce material and operating costs, and maintaining strong production performance, particularly in scrap reduction and OEE improvements.
The consolidation of Shelby into Water Valley remains ongoing, with equipment already arriving and installation underway. That move, paired with the incoming business programs, is the basis for the 100-job growth forecast shared at the beginning of James’ remarks.
James closed by reaffirming Solero’s long-term vision to become a one-billion-dollar global leader in controls technology. Employees responded, as they do at every company gathering, with the Solero rally call: “All in!”
Atar Capital founder Cyrus Nikou also addressed employees, praising the Water Valley plant for its role in the company’s growth and its smooth integration of Kendrion Automotive. “When we bought this business in 2021 from BorgWarner, it looked very different,” Nikou said. “Now we’re innovating, winning major contracts and operating on the cutting edge. Competitors across Europe and Asia know who Solero is — and Water Valley is a big part of that.”
Nikou concluded by commending the workforce. “You’ve done an extremely fantastic job,” he said. “We have a world-class management team, but it all starts with you.”
