Gentherm (Formerly Amerigon) Business Report FY ended Dec. 2013

Business Highlights

Financial Overview 

(in million USD)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Rate of change (%) Factors
Net Sales 662.1 555.0 19.3 1)
Operating Income 49.6 36.1 37.4 -
Climate Controlled Seats (CCS) Segment
Net Sales 143.3 132.3 8.3 2)
Operating Income 40.5 11.5 252.2 -
Net Sales 518.8 422.7 22.7 3)
Operating Income 41.8 51.0 (18.0) -


1) Net Sales
-The Company's net sales in 2013 increased by 19.3% to USD 662.1 million. Most of the increase in sales was driven by increased revenues from W.E.T.

2) Climate Controlled Seats (CCS)
-In 2013, the Climate Controlled Seats operating segment had sales of USD 143.3 million, an increase of 8.3%. The increase in sales was due to new program launches such as the Cadillac CTX and the Land Rover Range Rover. Another factor contributing towards increased sales was the additional volume on programs launched in 2012 such as the Nissan Pathfinder and the Infiniti JX.

3) W.E.T.
-W.E.T.'s sales in 2013 grew 22.7% to USD 518.8 million. Strong automotive volumes in North America and Asia along with market penetration in the automotive cable business contributed to the increase in sales. Another reason for the increase was W.E.T's sales performance in Europe, which was 17% higher than in 2012 despite economic struggles in Europe.


Squeeze-out transaction of W.E.T.
-The Company registered a squeeze-out transaction in October 2013 in regards to W.E.T. Due to the transaction, the Company currently owns 100% of W.E.T.'s outstanding shares and is in full control of W.E.T. The Company plans to treat W.E.T. as an individual segment until it is able to implement a substantial portion of its integration plans.


-The Company announced that its new electrically heated armrests were selected by Mercedes-Benz as an available feature for its 2014 S-Class Sedan. The S-Class Sedan's Warmth Comfort package will have heated door and center armrests for both the front and rear seats. A seat heating control switch in the door panel can be used to adjust the temperature of the armrests. (From a press release on September 10, 2013)

-The Company announced that it was awarded a contract from a major North American automotive manufacturer to provide a cooling-only version of its thermal storage bins. Based off technology in the Company's Climate Control Seat system, the thermal storage bins operate independently from the vehicle's heating and air conditioning system. The cooling-only thermal storage bins will be available as a feature from the North American automotive manufacturer in 2014. (From a press release on April 18, 2013)

-The Company announced that its Climate Control Seat (CCS) system will be available in the 2013 Range Rover L405 luxury sport utility vehicle. The Range Rover L405 will feature the CCS system in both the front and rear seats. (From a press release on February 26, 2013)


-Johnson Controls Automotive Seating honored W.E.T. Automotive Systems with a bronze Supplier Performance Award as part of its European Supplier Awards. (From a press release on October 18, 2013)

-W.E.T. Automotive Systems AG won Lear Corporation's 2012 Supplier of the Year for seat modules. (From a press release on February 27, 2013)


R&D Expenditure

(in million USD)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Overall 49.9 41.0 29.7

R&D Facilities

-The Company has a research facility in Augsburg, Germany and two research facilities, including an advanced materials research facility, in Azusa, California, US. The Company also conducts research and development activities at its global headquarters in Northville, Michigan, US and at its European headquarters in Odelzhausen, Germany.

R&D Activities

-The Company is currently involved in a project with the US Department of Energy (DOE) to prepare for the commercialization of a thermoelectric generator (TEG) system. A TEG system is used to recover waste heat and convert it into electricity. This project is a follow-up to a previous project occurring from 2005 to 2011 whose goal was to demonstrate a viable TEG system for vehicles. Other groups involved in the development team include BMW of North America, Ford Motor Company, Tenneco Inc., the National Renewable Energy lab, and the California Institute of Technology. The project costs USD 14.2 million and is performed on a 45% cost share basis with the DOE.

Product Development

Thermoelectric Generator
-The Company, as part of a consortium which includes Tenneco and two global vehicle manufacturers, displayed a prototype of a Thermoelectric Generator (TEG) at the 2013 Frankfurt IAA Motor Show. The TEG is a heat exchanger that uses cylindrical-shaped cartridges. These cartridges are exposed to the heat from exhaust gases on one side, and engine coolant on the other. Thermoelectric material inside the cartridges create a flow of electrical current due to the temperature difference on each end of the cartridge, which is then transferred to the vehicle. (From a press release on September 11, 2013)


-As of December 31, 2013 the Company has 432 issued patents and 317 pending patent applications.

Investment Activities

Capital Expenditure 

(in million USD)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Total 35.9 26.8 10.6

-Capital expenditures in 2013 were primarily related towards the purchase of equipment and leasehold improvements for the Company's electronics manufacturing facility in Shenzhen, China. Other expenditures were related towards the expansion of production capacity, the purchase of the Company's world headquarters buildings, and the replacement of current equipment.

Investment outside US

-In late 2013, the Company completed and opened its new electronics manufacturing plant in Shenzhen, China. The facility produces electronic control units for the Company's Asian customers.