Harman International Industries, Inc. Business Report up until FY ended June 30, 2011

Business Highlights

Recent Years


-In Feb. 2011, the Company announced the acquisition of 3dB Research Ltd, a Canada-based developer of music and signal processing technology. 3dB Research's musIQ technology is capable of analyzing most complex waveforms in real time to detect and understand structure of music. This acquisition strengthens Harman's audio signal processing capabilities, specifically in the area of music processing & effects generation technologies. (From a press release on February 18, 2011)


-In May 2011, the Company announced that it has been selected by Dongfeng Passenger Vehicle (DFPV) of China to equip its new mid size sedan, the Aeolus, with audio systems. The company will provide a ten-speaker surround audio system for the Dongfeng Aeolus models, including powered subwoofer and vehicle audio amplifier. (From a press release on May 19, 2011)

-In April 2011, the Company announced that the new BYD E6 electric vehicle will include audio solutions from Harman. The company will provide audio for the multi-purpose vehicles destined for international markets such as North America. The first Harman-built system is expected to launch on vehicles in 2012, and will feature an eight-channel amplifier, subwoofer and ten speakers. (From a press release on April 19, 2011)

-In April 2011, the Company announced that it has been selected by Geely Motors to equip its new mid size sedan, the Geely Emgrand EC8, with its audio systems. The Company will provide a ten-speaker audio system, including powered subwoofer and vehicle audio amplifier. (From a press release on April 19, 2011)

-In April 2011, the Company announced that the upcoming electric vehicle from the China-based joint venture company formed by BYD Motors and Daimler AG, will include audio solutions from Harman. The first Harman-built system is expected to launch on domestic vehicles in 2013. The top line model will feature 5.1 surround sound, an eight-channel amplifier, subwoofer and twelve speakers. The second tier model will offer an eight-channel amplifier, subwoofer and 8 speakers. (From a press release on April 19, 2011)

-In April 2011, the Company announced that it has been awarded additional business to provide next-generation infotainment solutions for Volkswagen Group brands, Audi, Seat, Skoda, and Volkswagen in the Asian markets. The new award builds on Harman's previously announced next-generation infotainment award for Volkswagen Group's European and US marketed vehicles. Total order value of this award is now 1.6 billion USD. (From a press release on April 12, 2011)

-In March 2011, the Company and Daimler AG announced new Becker MAP PILOT car navigation system. The Becker MAP PILOT, premiering in the new Mercedes Benz SLK and C Class, is operated by means of controls positioned on the car's steering wheel, the turn/push control, and voice commands. The navigation route is shown on the central display and instrument cluster, and voice instructions are reproduced from the car's onboard speakers. The navigation unit can be moved from the vehicle to update map data and add-on functions. (From a press release on March 1, 2011)

-In Mar. 2010, the Company announced it will supply the Mark Levinson Premium Surround system for the Lexus LFA. Based on the enabling technologies underlying its GreenEdge, High Efficiency Transducers (HiE) and High Voltage Amplification, this system employs all-new Class D power amplification. This 12-speaker, 12-channel system is capable of a 1,002 watts of total power, and is comprised of large 180x250mm. (From a press release on March 1, 2010)

-In Dec. 2009, the Company announced it will supply audio systems for Chrysler's next generation of SRT Series vehicles. The new systems will be available on Chrysler 300, Dodge Charger and Dodge Challenger SRT models beginning with the 2012 model year. (From a press release on December 21, 2009)

-In Sep. 2009, the Company announced that it has been selected by Daimler AG to provide its multimedia driven COMAND infotainment system for the new Mercedes-Benz S- and C-Class models. This system will utilize Harman's GreenEdge technology to reduce weight and power consumption. (From a press release on Sep. 9, 2009)

-In July 2009, the Company said that the Company has launched a total of 13 audio and infotainment platforms for automakers in less than 24 months. Customers for the recent model launches include Audi, BMW, Chrysler, Mercedes, Porsche, PSA Peugeot Citroen, Hyundai and SsangYong. (From a press release on July 30, 2009)

-In May 2009, the Company is supplying its discrete Logic 7 sound system for the 2009 Mercedes-Benz S-class. This system features 15 speakers and 600 watt amplifier. (From a press release on May 25, 2009)

-In May 2009, the Company announced that it will supply its sound system as standard equipment for the BMW's limited edition "MINI 50 Camden". The Company will also supply the system as an option for the limited edition "MINI 50 Mayfair". (From a press release on May 25, 2009)


-In June 2010, the Company closed the sale of its Canadian unit QNX Software Systems in June 2010. The Company has sold the business to Research In Motion Limited of Canada for 200 million USD. (From a press release on June 8, 2010)

Business Partnership

-In Apr. 2010, the Company and Neusoft Corporation, a leading IT solutions and services provider in China, announced that the two companies have agreed to enter into partnership for the development of technologies in automotive electronics. As a result of this collaboration, the Company and Neusoft have jointly established technology development centers in Shenyang, Liaoning Province, China and Hamburg, Germany. (From a press release on April 23, 2010)


R&D Expenditure

(in million USD)
  FY2011 FY2010 FY2009
Overall 304.6 322.7 325.1

Trademarks and Patents

-As of June 30, 2011, the Company had 1,874 trademark registrations and 414 pending trademark applications around the world. On that date, the Company also had 2,531 patents and 1,732 pending patent applications covering various audio, infotainment and software products.

R&D Structure

-In 2009, The Company opened a new group office and research and development center in Shanghai, China. Also, the Company announced the global launch of its new automotive infotainment system, which is slated for manufacturing at the facility in Suzhou. Using the Company's QNX operating system software, the system offers recognition and playback of movies, music and other multimedia regardless of format; and wireless connectivity to services such as Internet radio and social networking sites. (From a press release on Sep. 29, 2009)

-In 2008, The Company and Wipro Technologies, the IT services business of Wipro Limited, announced the launch of a joint engineering center in India. The new Harman India Development Center will operate from Wipro's existing Bangalore and Chennai facilities. The center will broaden its footprint for developing audio and infotainment solutions across the automotive and other markets. Services delivered from the center will include both software development and related hardware engineering for its portfolio. (From a press release on Sep. 2, 2008)

Technological Alliance

-In Jan. 2011, the Company and Sierra Wireless Inc will collaborate to bring automotive customers the 4G broadband connectivity. Sierra Wireless Inc, based in Canada, manufactures mobile computing and wireless machine-to-machine (M2M) communications products. Harman will support Sierra Wireless AirPrime modules for LTE networks to offer in-vehicle wireless connectivity. (From a press release on January 5, 2011)

-In 2009, the Company and Lotus Engineering have reached an agreement to jointly develop noise management solutions using Lotus' patented active noise-control technologies. The agreement includes all of Lotus' noise-control technologies. Lotus Engineering is an automotive engineering consultancy division of Lotus Cars Ltd. (From a press release on Apr. 16, 2009)

-In 2008, the Company announced it has extended its relationship with NAVTEQ, the leading provider of digital maps for vehicle and location-based applications. The two companies have signed an agreement that secures Harman/Becker, its International's automotive division, worldwide access to NAVTEQ data through 2015. Accelerated content introduction including integration of NAVTEQ's dynamic content portfolio to maximize Harman/Becker's next generation infotainment systems and broader global relationship including joint offerings in Russia, China, Korean and other emerging markets are some of the areas of cooperation identified. (From a press release on May 12, 2008)

-In 2008, the Company and Seagate Technology announce plans to incorporate Seagate D.A.V.E. Technology into future Multimedia System applications which will give automotive manufacturers the ability to provide their customers a storage upgrade enabled by industry standard wireless and communications protocols. The technology will be featured on the Company designed Chrysler MyGig multimedia system at the Seagate booth during CES. Seagate's D.A.V.E is a technology platform that provides substantial wireless storage capacity for digital files such as standard and high-definition movies, TV programs, music, games and more. The technology platform allows automotive manufacturers the ability to offer multiple passengers a way to consume their own unique digital content throughout the vehicle. (From a press release on Jan. 8, 2008)

Product Development

-In March 2011, the Company has launched QuantumLogic surround sound technology which transforms any stereo or multi-channel audio source into a 7.1 channel surround sound experience. The QuantumLogic forms an integral part of the JBL Professional surround sound system for the Ferrari FF. In addition to the audio systems, the new Ferrari FF features a Harman hard-disk-based GPS navigation system with map and arrow display. (From a press release on March 1, 2011)

-In Jan. 2011, the Company has developed GreenEdge in-vehicle audio systems which reduce power consumption and heat generation. The new systems leverage state-of-the-art amplifier and speaker technologies that are more compact, weigh less, and are more energy-efficient than conventional systems. (From a press release on January 10, 2011)

-In Jan. 2011, the Company, together with Lotus Engineering, has developed HALOsonic noise management technology, which generates synthetic engine sounds which serve to warn pedestrians that the hybrid or electric vehicle is approaching. Electronic sound synthesis is also used inside the car. HALOsonic(TM) systems can generate engine noises to give the driver familiar feedback relative to his speed. (From a press release on January 10, 2011)

-In Jan. 2011, the Company's Automotive Division developed technologies that can beam information such as SMSs and e-mails from smartphones over to HARMAN in-dash head units. Messages are then displayed on the infotainment system screen, or read back aloud using a text-to-speech option. Text-to-Speech capabilities are already available in the Company's infotainment systems in the market today, with Speech-to-Text solutions to be available in cars beginning 2012. (From a press release on January 5, 2011)

-In Jan. 2011, the Company announced that it will unveil an automotive multimedia system called Toyota Entune, which was developed in cooperation with Toyota Motor Engineering and Manufacturing, North America, at the Consumer Electronics Show (CES) in Las Vegas, U.S. After downloading the Toyota Entune mobile application and pairing a Bluetooth capable phone with their Toyota vehicle, customers can access a wide variety of apps, including Bing, iheartradio, MovieTickets and OpenTable, from the vehicle's touchscreen display. This system will be first offered on select Toyota vehicles beginning later this year. (From a press release on January 4, 2011)

-In Jun. 2010, the Company is developing an automotive infotainment system for entry-level luxury vehicles - including those in the fast-growing Asia markets. The new Harman system employs System-On-a-Chip (SOC) technology to simplify the integration of multiple infotainment features. It will support wireless integration with mobile devices such as iPhone, Blackberry, and Android-based smart phones to deliver mobile office features such as e-mail, SMS text messaging and calendar functions. (From a press release on June 1, 2010)

-In May 2010, the Company is working together with Nokia to develop technology which integrates smartphones into in-vehicle infotainment systems. In addition to providing the smartphone applications through the displays embedded in the car, the connection also supports information exchange between the smartphone and the car; and information retrieval through GPS functionality. (From a press release on May 17, 2010)

-In May 2010, the Company and U.K.-based Lotus Engineering unveiled in Tokyo their joint development device to generate pseudo-engine noise meant to be installed on vehicles driven by electricity such as hybrid vehicles. The system emits noise similar to that of a combustion engine from under the hood and an audio speaker in the cabin. The noise volume and tone can be changed depending on how the accelerator pedal is pressed. The technology is designed to provide increased safety to pedestrians so that they can recognize an approaching car even when it is running on electricity. European automakers are already planning to install this device by the end of 2010. The marketing activities targeted at Japanese makers will go into full swing in the future. (From an article in the Nikkan Jidosha Shimbun on May 14, 2010)

Investment Activities

Capital Expenditure

(in million USD)
  FY2011 FY2010 FY2009
Overall 108.4 60.2 79.9
Automotive 74.8 40.8 59.5

Investment Outside USA

-In 2008, the Company said that it has opened a new manufacturing facility to produce automotive audio and infotainment systems in Suzhou, China. Key customers include Shanghai General Motors, Hyundai, Ssangyong, and Kia. The Company announced recently that the facility will also produce the premium audio, connectivity and entertainment systems for an extended version of the BMW 5-Series built exclusively for the Chinese market. (From a press release on Nov 17, 2008)

-In 2009, the Company announced that it is expanding its manufacturing operations in Szekesfehervar, Hungary with the assistance of a development grant from the Hungarian government. The expansion includes construction of a new plant to produce acoustic and electronics modules for automotive use. (From a press release on Oct. 9, 2009)