TRW Automotive Holdings Corporation 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 | |
| Overall | ||||
| Sales | 17,435 | 16,444 | 6.0 | -This increase was driven primarily by higher demand for active and passive safety products and increased vehicle production in North America and Asia Pacific (USD 843 million), and favorable impact of foreign currency exchange (USD 176 million), partially offset by lower sales (USD 28 million) related to a business divested in the third quarter 2012. |
| Net earnings | 970 | 1,008 | (3.8) | - |
| Chassis Systems | ||||
| Sales | 11,492 | 10,685 | 7.6 | -Sales partially offset by lower sales (USD 28 million) related to a business divested in the third quarter 2012. |
| Occupant Safety Systems | ||||
| Sales | 3,314 | 3,287 | 0.8 | -Sales partially offset by lower sales (USD 87 million) related to price reductions provided to customers. |
| Electronics | ||||
| Sales | 721 | 654 | 10.2 | -Sales partially offset by lower sales (USD 33 million) related to price reductions provided to customers. |
| Automotive Components | ||||
| Sales | 1,908 | 1,818 | 5.0 | - |
Acquired by ZF Friedrichshafen
-In September 2014, the Company announced it has entered into a definitive agreement with ZF Friedrichshafen AG (ZF) under which ZF will acquire all outstanding shares of the Company. The transaction is expected to close in the first half of 2015. The Company will be a separate business unit of ZF.Contracts
-The Company announced that it is supplying Electrically Powered Hydraulic Steering (EPHS) technology to Ferrari's latest vehicle launch "LaFerrari" - the first Ferrari to feature hybrid propulsion. The Company's EPHS system offers fuel savings of up to 0.3L/100km and a reduction of carbon dioxide emissions of approximately 7g/km when compared with traditional hydraulic power steering systems. The technology also delivers fuel economy and CO2 reduction benefits comparable to full electric steering solutions. The Company's EPHS features a compact Motor Pump Unit (MPU) connected with a conventional rack and pinion power gear. As with other electric steering solutions, EPHS is independent of the combustion engine. (From a press release on October 15, 2013)-The Company announced that it is launching a host of safety features on the new "Qoros 3" Sedan. The Company is a key partner involved in supporting Qoros in its vehicle development program. It helped to develop the full passive safety system, supplying airbags (including side and curtain), seat belts, steering wheel and safety electronics, and on the active safety side it also assisted in developing and supplying electronic stability control, anti-lock braking and foundation brake systems. (From a press release on October 9, 2013)
-The Company has recently been awarded significant contracts for its Slip control systems in multiple regions including its Premium (P) and Premium Hybrid (PH) technology. Based on its electronic stability control (ESC) family and in particular the Company's EBC 460 six-piston pump technology, the ESC braking system can deliver high levels of brake pressure rapidly and allows in its PH form for partial regenerative braking. The Company will launch the ESC PH on multiple platforms and in multiple regions beginning in 2015. The next generation system will be ready for production for 2017 MY applications. (From a press release on February 14, 2013)
-TRW Automotive Japan Co., Ltd. has received its first contract for Electric Park Brakes (EPBs) and knee airbags from a Japanese OEM. The Japan unit of TRW has already begun supplying these safety products made at the Group's facilities overseas for the automaker's several vehicle models built in Japan. The Company is a global supplier, and has been dealing with Japanese OEMs, primarily in the area of safety systems products. The Company won the contract for its cost-competitive, smaller and lighter products with greater design flexibility. The Company will step up making proposals to trigger expansion of transactions with Japanese car makers. (From an article in the Nikkan Jidosha Shimbun on Feb. 8, 2013)
-The Company brings its Passive Entry system to Chrysler's new 2013 "Ram" trucks and offers consumers a greater level of convenience than traditional Remote Keyless Entry (RKE) systems. The "Ram" truck's Passive Entry system - sold under the name "Keyless Enter 'n Go" enables the vehicle's doors to be automatically unlocked when a person carrying the key-fob comes within close proximity of the vehicle's door sensor without any need to press the key-fob buttons. (From a press release on January 14, 2013)
Start of Production
Lane Keeping Assist (LKA)-The Company has announced that its latest Lane Keeping Assist technology, incorporating closed loop control, has gone into production for the first time on two vehicle platforms for the European market. In conventional LKA systems, the technology is only active when the vehicle is close to the lane borders, at which point the counter-steer torque is applied, helping to correct the driving position. However, with this closed loop version, the steering angle is controlled more closely as the driver is 'coached' to steer the vehicle away from the border back to the center of the lane. (From a press release on December 3, 2013)
24 GHz forward-looking radar
-The Company has started production of its 'AC100' 24 GHz forward-looking radar on the new PSA Platform 'EMP2'. The first vehicle is the Citroen "C4 Picasso" which has recently launched this summer, and will be followed at the end of 2013 by the new Peugeot "308". The AC100 radar on this platform enables several safety and driver comfort functions including distance and collision warning and integration with braking systems to provide follow-to-stop adaptive cruise control (ACC). The technology can also enable further features such as activation of reversible restraint systems, pre-crash pre-fill of brakes, adaptive brake assist and automatic emergency braking (AEB). (From a press release on July 29, 2013)
Occupant safety systems
-The Company announced that it has started producing and delivering its next-generation Snake pretensioner retractor 4 (SPR4) seat belt assemblies. Replacing conventional metal components with a plastic piston has led to a more compact and lighter packaging. The new products will be supplied for various vehicle models manufactured in North America, Europe and China, ranging from small A-segment vehicles to SUVs. (From an article in the Nikkan Jidosha Shimbun on Jun 5, 2013)
-The Company has started production with a full range of occupant safety systems for two vehicle platforms from the GAC Group in China: the "Trumpchi Sedan" and "Trumpchi GS5" SUV. On both vehicles, the Company supplies the passenger airbag, driver airbag, side airbag, curtain airbag, front and rear seat belts and the electronic control unit (ECU). As well as the design and manufacture of the products, the Company was responsible for the entire testing program including areas such as hardware simulation, time-to-fire characteristics, tuning, system integration and more. (From a press release on April 22, 2013)
Electric power steering systems (EPS)
-The Company is the only major steering manufacturer to produce its advanced electric power steering systems locally in Brazil. With the launch of electric steering for Ford's "Ecosport" and "Fiesta" models, The Company is bringing clear cost and environmental benefits to automakers in South America. (From a press release on October 7, 2013)
-The Company announced that one of its Chinese facilities has started production of "Belt Drive EPS" (also referred to as "Rack Drive"), which is an electrically powered steering (EPS) system. The assist power is applied directly to the rack via a belt drive and a ball nut mechanism. It will be supplied to General Motors for use in a global platform. The production capacity is expected to reach 400,000 units annually by 2014. The Belt Drive EPS is produced at the Anting plant in Jiading District of Shanghai, which is located near GM's assembly plant. The Company has been installing equipment to produce the belt drives units over the past 18 months. The Company also manufactures "Column Drive EPS", which is an EPS system mounted on the steering column. (From an article in the Nikkan Jidosha Shimbun on June 26, 2013)
-The Company has recently started production of its electrically powered steering (EPS) column drive technology with a major Chinese vehicle manufacturer and is due to launch with three further China domestic platforms in 2013. Production will be located at the Company's manufacturing facility in Anting, China. The Company offers two Electrically Powered Steering (EPS) solutions to cover the full vehicle platform range. The first is the column drive unit which is mounted on the steering column inside the passenger compartment and the second is belt drive where the assist is applied directly to the rack with a belt and ball nut mechanism. (From a press release on April 22, 2013)
Recent Development Outside USA
<Romania>-The Company held the opening ceremony of a new facility in Baia Mare, Romania. The plant is a steering wheel leather wrapping facility primarily for Audi and currently employs around 300 people. Baia Mare started operations in January 2013 and it is planned that up to 650 employees will work at the plant by the end of 2013. (From a press release on April 29, 2013)
Awards
-The Company was recently awarded the 2013 General Motors (GM) Supplier Quality Excellence Award at 10 of its manufacturing facilities.The 10 sites honored with the award include:
・ Ansan TSCL, South Korea - steering systems
・ Langfang LVLB, Hebei Province, China - brake systems
・ Anting, China - brake systems, slip control systems
・ Beckedorf, Germany - engine valves
・ Bricherasio, Italy - air bags, steering wheels
・ Marion, Virginia, United States - steering systems
・ Incheon, South Korea - fasteners
・ Orleans, France - engine valves
・ Czestochowa, Poland - air bags, seat belts
・ Koblenz, Germany - brake systems, slip control systems
(From a press release on October 28, 2013)
-The Company has been recognized by the Chrysler Group LLC's Innovation group with a 2012 Innovation Award for User Experience and Driver Assistance in the development of Lane Centering Assist systems. (From a press release on March 7, 2013)
Outlook for FY ending Dec. 31, 2014
-The Company expects full year 2014 sales to be in the range of USD 17.3 billion- to USD 17.6 billion, including first quarter sales of approximately USD 4.3 billion dollars. Main conditions precedent are;・Production levels of 16.8 million units in North America, 19.5 million units in Europe
・Exit of certain North American brake component and assembly operations
・Continued expansion in vehicle production volumes in China
・Expectations for foreign currency exchange rates
R&D
R&D Expenditure |
(in million USD) |
| FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | FY ended Dec. 31, 2011 | |
| Overall | 905 | 834 | 827 |
Number of R&D Facilities |
(As of Dec. 31, 2013) |
| North America | Europe | Asia Pacific |
Other | Total | |
| Chassis Systems | 3 | 4 | 5 | 1 | 13 |
| Occupant Safety Systems | 2 | 3 | - | - | 5 |
| Electronics | 2 | - | - | - | 2 |
-TRW Automotive Japan Co., Ltd. will enhance its development operations. The Japan unit of the Company will hire more technical personnel at its engineering center in Yokohama, while working more closely with the Group's engineering bases in the U.S. and Germany. Through such measures, the company aims to reduce the lead-time required for implementing design changes and making technical improvements to its products. The Yokohama facility conducts performance testing, prototype production, and product installation of airbags, seat belts and brakes. It currently employs approximately 50 engineers who are working on joint development projects with Japanese automakers. During 2012, the company won the first program to supply the following products for Japanese OEMs' vehicles produced at home: direct-type electric park brakes (EPBs) that directly activate the brake caliper; knee airbags; and cameras for driver assistance systems. Expecting a further increase in demand from Japanese companies, The Company will establish a stronger development framework in the country so that it can more quickly respond to the technological requirements of its customers. (From an article in the Nikkan Jidosha Shimbun on Feb. 21, 2013)
Technology Licensing-out Agreement
-Showa Corporation will start production of column-drive electric power steering (EPS) systems by licensing-in technology from TRW Automotive of the U.S. Showa will optimize TRW's product design for application to the vehicles of its customers. It plans to supply the EPS systems globally through license production at its own factories or by using TRW's manufacturing bases. Mass production is scheduled to start in three or four years. (From an article in the Nikkan Jidosha Shimbun on Mar. 21, 2013)Product Development
Sensor technologies-The Company in the U.S. has developed a new monocular camera system with integrated object recognition capabilities to support collision mitigation braking and other pre-crash safety systems. The new camera system costs less than conventional camera systems which use either two cameras or a combination of a camera and millimeter wave radars. According to the company, it is difficult to develop a monocular camera system which matches the quality of a camera and millimeter wave radar combination at detecting obstacles at distances over 200 meters. However, the new system offers higher performance than current low-cost systems in the market. The Company worked with Mobileye Technologies Ltd., a leading Israeli provider of image processing technology for automotive cameras, to enhance the system's capability to detect lane markers, pedestrians and other obstacles. The Company intends to encourage automakers to use the system for pre-crash safety features on vehicles with moderate prices rather than high-end cars. (From an article in the Nikkan Jidosha Shimbun on December 12, 2013)
-The Company announced that it's working closely with a major European vehicle manufacturer to develop the AC1000, the next generation radar technology, and anticipates that the technology will be ready for production in 2015. With 360 degree sensing capabilities and the option of dual mode functionality that covers both low speed applications and high speed applications in one unit, it can be used for a range of safety and convenience functions including adaptive cruise control, forward collision warning, collision mitigation braking, automatic emergency braking, pedestrian detection, blind spot detection, lane change assist, cross traffic alert and more. (From a press release on September 10, 2013)
-The Company has developed a new generation of video camera (S-CAM 3) which offers six times the processing power of the current generation to provide a higher level of performance and several advanced new functions. The camera will be launched early in 2015 and feature on a number of 2016 model year applications. Using Mobileye's EyeQ3 technology, the Company's S-CAM 3 will offer all the functions of its predecessor (lane departure warning, forward collision warning, headlight control, traffic sign recognition and pedestrian detection), but has an increased vertical and horizontal field of view and a significantly higher definition imager to enable a range of more advanced features including: Automatic emergency braking, Adaptive cruise control (ACC) for highway conditions, Advanced traffic sign recognition and others. By late 2013, the current second generation S-Cam will be available on vehicles from five major vehicle manufacturers in North America, Europe and Asia. (From a press release on September 10, 2013)
Electronic Control Units (ECUs)
-The Company has developed its second generation Safety Domain ECU (SDE 2) which can integrate data from multiple driver assist system, chassis and suspension functions in one unit. The second generation SDE will offer greater performance when compared to its previous generation and will be a key technology in supporting semi-automated driving and car2car communication. The Company anticipates that its SDE 2 will be ready for production by 2017. The first generation technology started production this month with a major European vehicle manufacturer. (From a press release on September 10, 2013)
Seat belts
-The Company has designed a new anchor seat belt pretensioner in a rotary configuration (known as the APR1). The APR1 features a lighter weight design and more compact packaging resulting in an easy integration for vehicle manufacturer interiors. There is no linkage element necessary and only the normal seat belt webbing will be visible in the vehicle cabin. It is designed to deliver pretensioning forces of more than 3 kN, which can help to remove some seat belt slack within milliseconds of a crash being detected. It can be combined with the Company's Active control retractor system or Active buckle lifter, that help to remove some seat belt slack before a crash occurs if a potential crash is detected by active vehicle sensors. The APR1 will launch on several European vehicle platforms in 2015. (From a press release on August 21, 2013)
-The Company is revealing a new seat belt concept in collaboration with Rinspeed at the Geneva Motor Show. The system is being introduced on the microMAX commuter vehicle concept. Instead of a seat belt buckle and tongue, the technology features a 'webbing catcher' which enables semi-automatic buckling and unbuckling. (From a press release on March 5, 2013)
Remote keyless entry (RKE) and Tire pressure monitoring systems (TPMS)
-The Company announced it has launched its first integrated Remote Keyless Entry (RKE) and Direct Tire Pressure Monitoring system (TPMS) with a major Japanese vehicle manufacturer. The system delivers RKE and TPMS functions with fewer parts. This system is also leading the industry in reducing risks associated with Radio Frequency (RF) interference by utilizing multiple frequencies. This technology change is transparent to vehicle owners as there is no discernible change to the RKE key fob layout or performance. The integrated ECU decodes the signals to activate the lock/unlock function for vehicle doors and the trunk, and provides tire pressure warning information to the driver in the same way as conventional RKE and TPMS receivers. (From a press release on April 11, 2013)
Integrated brake controls (IBC)
-The Company developed its Integrated Brake Control (IBC) system, which is a vacuum independent technology which can simplify the brake system while enhancing performance. The IBC replaces – in a single integrated unit – the electronic stability control (ESC) system along with the vacuum booster and the associated cables, sensors, switches, electronic controllers, and vacuum pumps where they are required for low-or no-vacuum configurations. At the heart of the system is an actuator that is driven by an extremely fast-acting brushless electric motor. The motor can make a considerable difference when combined with driver assist systems such as radar and camera to enable features such as Automatic emergency braking (AEB). IBC offers considerable packaging and weight savings compared with current ESC systems – weighing just 3.8kg in contrast with 7 kg for a conventional component set. For hybrid vehicles, which may require an electric vacuum pump, the saving is an additional 3.0kg.
Investment Activities
Capital Expenditure |
(in million USD) |
| FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | FY ended Dec. 31, 2011 | |
| Chassis Systems | 461 | 364 | 372 |
| Occupant Safety Systems | 112 | 104 | 73 |
| Electronics | 80 | 61 | 57 |
| Automotive Components | 77 | 86 | 62 |
| Corporate | 5 | 8 | 7 |
| Total | 735 | 623 | 571 |
-The Company expects to spend between USD 730 million - USD 750 million on capital expenditures during 2014.