Edscha AG Business Report up until FY 2011

Business Highlights

Recent Years

Insolvency and Restructuring

-On Feb. 2, 2009, the Company filed an application for the opening of insolvency proceedings. The reasons for filing for insolvency are the massive declining trends in the global automobile market in combination with deteriorating access to financing in the capital markets. Insolvency was registered for its European locations including the headquarters and production facilities in Germany. No insolvency application was filed for the companies in Asia and in America. (From a press release on Feb 2, 2009)

-In August 2009, Webasto AG and Edscha AG have reached an agreement regarding Webasto's takeover of Edscha's Convertible Roof Systems Business Unit - Edscha Cabrio Dachsysteme (CDS). The German Edscha CDS sites in Hengersberg and Regensburg as well as other locations in Velky Meder (Slovakia) and Coventry (Great Britain) are to be retained. (From a press release on Aug 4, 2009)

-In March 2010, the European cartel authorities have approved the acquisition of the assets of the Company's business unit Body Components by the Spanish company Gestamp Automocion. The takeover is thus legally effective as of April 1, 2010. Gestamp manufactures metal components and structural systems for the automotive industry. (From a press release on March 22, 2010)

-In 2011, the Company is supplying a new hood hinge for the active hood pedestrian protection of the new Mercedes-Benz "M-Class". (From a press release on November 21, 2011)

-In 2010, the Company supplies a premium sliding door system for the Volkswagen "Sharan" that is coming onto the market in Germany in September. (From a press release on August 10, 2010)

-In 2010, the Company supplies liftgate hinges for the new BMW "5 Series Gran Turismo". It also equips Gran Turismo with an electric spindle drive for liftgates as optional extra. Both the liftgate hinges and the electric spindle drive for the model are manufactured at its plant in Hengersberg, Germany. For the BMW "X5", the Company put an electric spindle drive for liftgates on the market, the first system developer to do so. (From a press release on January 7, 2010)

-In 2009, the Company announced that it is supplying a retractable hardtop for the new BMW "Z4 Roadster" to be launched in May 2009. The electrohydraulically operated two-piece hardtop has a lightweight aluminum shell design. It is opened and closed by means of a switch in the center console, with each procedure taking 20 seconds to complete. With the roof system for the roadster, the Company is now producing a second retractable hardtop at the BMW plant in Regensburg, Germany, in addition to the hardtop for the BMW "3-Series Convertible". (From a press release on Mar 31, 2009)

Business Partnership

-In November 2008, the Company signed a cooperation agreement with the Japanese automotive supplier TIMS Co., Ltd., based in Aichi Pref., Japan. TIMS is a manufacturer of handles, hinges and door checks for car doors as well as seat components. The cooperation comprises the manufacture of body components in Japan - mainly hinge systems to start with. Within the framework of cooperation the Company will utilize the production capacities of TIMS in Japan and create prerequisites for direct supply to Japanese motor vehicle manufacturers. (From a press release on Nov 4, 2008)

New Company

-In June 2006, the Company founded a wholly foreign owned enterprise in China. Edscha Automotive Technology (Shanghai) Co., Ltd (EAT) is based in Shanghai and will begin operations with 17 employees. For the Edscha Group this enterprise is the first that is not in the form of a joint venture, and it will raise the Group's activities in Asia to a new level. EAT will serve as headquarters for the plants in the region, managing all of the Group's holdings in this market. (From a press release by the company on Jun.12, 2006)


Product Development

Hood hinge for active pedestrian protection
-In 2011, the Company announced that it developed a new hood hinge and is supplying for the active hood pedestrian protection of the new "Mercedes-Benz M-Class". If the car hits a person, a pyrotechnic actuator located in the engine compartment under the hinge ignites, setting off the protection mechanism. The force of the explosion allows the hinge and hood to pop up a small distance. The hood rises by a total of eight centimeters. This creates a shock absorption zone that reduces injuries, particularly those to the head. In addition to this safety feature for the "M-Class", the Company has developed an electric spindle drive that permits drivers to open and close the liftgate at the touch of a button. In addition to the hood hinge and spindle drive, the Company manufactures the door hinges and liftgate hinge for the "M-Class". (From a press release on November 21, 2011)

Liftgate system
-In 2008, working with Skoda, the Company has developed a mechanism for the patented Twindoor liftgate system. For the first time ever, it gives sedan owners the convenient option of opening either the trunk lid by itself or the entire liftgate including the rear window. The system will be featured in the new Skoda "Superb". The project included developing a trunk lid hinge and designing an electrically controlled mechanism that blocks the hinge at the touch of a button. A key to success in this cooperative project with Skoda was the favorable location of its plant in Czechoslovakia, where the system was developed and where series production is now beginning. (From a press release on Mar. 10, 2008)