WABCO Holdings Inc. 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 2,720.5 2,477.4 9.8 1)
Operating Income 331.9 324.5 2.3 -


1) Net Sales
-In 2013, the Company's sales grew 9.8% from 2012 to USD 2,720.5 million. Excluding foreign currency translation effects, the increase was caused by both an increased amount of Company content per vehicle, along with a 3% increase in the global production of commercial vehicles over six tons. Sales increases in Europe, North America and South America were slightly offset by a decrease in sales in Asia.


-The Company announced that it has acquired the remaining shares in its Chinese joint venture, Shandong Weiming Automotive Products (SWAP), located in Jinan, Shandong Province. This transaction increased the Company's ownership in SWAP from 70 to 100 percent. The change in ownership interest was completed on August 30, 2013 and cost the Company USD 4.6 million in cash. The Company had established SWAP in 1996 together with Mingshui Automotive Fitting Factory. SWAP has developed into a leading supplier of technologies and control systems for major manufacturers of trucks, buses and trailers in China. (From a press release on November 27, 2013)

Recent Developments 

Automated manual transmission system
-The Company announced that its OptiDrive automated manual transmission system is now available in South America. The OptiDrive system improves vehicle control and increases fuel economy up to five percent for trucks and buses through optimized gear shifting. (From a press release on October 28, 2013)

Compressor with integrated clutch
-The Company announced that it is supplying its c-comp compressor with integrated clutch to two global manufacturers of commercial vehicles. In January 2013, two global original equipment manufacturers, headquartered in Europe, began installing WABCO's c-comp on their European heavy-duty trucks and buses. Furthermore, the Company planned to introduce its c-comp compressors to the North American market in 2013. (From a press release on March 20, 2013)

Collision mitigation system
-Meritor WABCO, a joint venture between the Company and Meritor Inc., announced the immediate availability of its next generation OnGuard collision mitigation system. The new system is already in production at two major OEM nameplates with two more OEMs due to begin production in the second quarter of 2013. (From a press release on March 7, 2013)


-The Company announced that it has begun to supply Iveco with its newest pneumatic anti-lock braking system (ABS version E8) with an integrated electronic stability control system, ESCsmart. Iveco's new Eurocargo Euro 6 medium-duty on-road trucks will be equipped with the system. This marks the first time in the commercial vehicle industry that these Company safety technologies are being adopted together in series production. (From a press release on December 4, 2013)

-Meritor WABCO, a joint venture between Meritor Inc. and the Company, announced that OnLane, its new lane departure warning system, is available for immediate order as an option on the Freightliner Cascadia and Freightliner Cascadia Evolution models. Meritor WABCO's OnLane, powered with SafeTrak technology by Takata, is a forward-looking, vision-based lane departure warning system designed to monitor road markings and the vehicle's position in the lane. The new system delivers distinct and separate audible warnings to the driver if the vehicle leaves its lane unintentionally, encouraging the use of turn signals. OnLane also provides a unique feature called Driver Alertness Warning (DAW), which detects erratic or irregular driving based on lane weaving and provides a warning to the driver. (From a press release on November 4, 2013)

-The Company will furnish air processing technology, on a sole supplier basis, to equip braking systems across Mercedes-Benz do Brasil's platforms of medium- and heavy-duty trucks. Series production is expected to start in the fourth quarter of 2014. The Company will supply Mercedes-Benz do Brasil from its manufacturing facility located in Sumare, Brazil. The Company currently provides Mercedes-Benz do Brasil with conventional and advanced technologies for air compression, braking, suspension and transmission automations to support truck and bus production. (From a press release on October 16, 2013)

-The Company has entered into a new multi-year agreement with GAZ Group, a manufacturer of commercial vehicles in Russia. The new contract stipulates the Company as the sole supplier for a range of advanced braking systems and components to support GAZ Group's next generation of medium-duty trucks. Systems and components in the contract include anti-lock braking systems (ABS), single-piston air disc brakes, air-processing technologies and other braking components. Series production is expected to start in 2014. (From a press release on September 10, 2013)

-The Company has agreed to expand its relationship with KAMAZ, a Russian commercial vehicle manufacturer. Starting September 2013, the Company furnished its newest generation of electronic braking systems (EBS) with integrated electronic stability control (ESC) for series production on KAMAZ's new truck platform. Additionally, KAMAZ has also engaged the Company to supply its latest generation of electronically controlled air suspension (ECAS).  (From a press release on September 9, 2013)

-The Company expanded its long-term supply agreement with Ford Otosan, a Turkey-based commercial vehicle manufacturer. The expanded agreement adds the Company's c-comp air compressor with integrated clutch for series production in 2015 to support Ford Otosan's current and new platforms of heavy duty trucks. (From a press release on August 7, 2013)

-The Company entered into an agreement with Agrale, a major original equipment manufacturer based in Brazil and Argentina, to supply hydraulic anti-lock braking (ABS) technology for Agrale's full range of light commercial vehicles which use hydraulic brakes. New vehicle and road safety legislation in Brazil mandates ABS on 40 percent of trucks, buses, trailers and passenger cars manufactured in 2013. From January 2014, all such vehicles must have ABS installed. (From a press release on June 25, 2013)

-The Company announced that series production trucks from Daimler Trucks North America (DTNA) are currently on the road and fitted with the Company's MAXXUS heavy-duty single-piston air disc brake technology. The Company entered into a long-term supply agreement with DTNA in June 2012. MAXXUS is currently available on Freightliner Cascadia, Coronado, Columbia, Business Class M2 and SD models, as well as Western Star 4700, 4800, and 4900 platforms. (From a press release on March 20, 2013)

-The Company announced that it won contracts to provide anti-lock braking systems (ABS) to six of Brazil's trailer manufacturers. Trailer manufacturers that placed recent orders with the Company in Brazil include Facchini, Guerra, Rodofort, Usicamp and two other local manufacturers. Together, these companies supply approximately 45 percent of the new trailers manufactured in Brazil. (From a press release on January 29, 2013)


-The Company's Meppel manufacturing facility in the Netherlands was recognized with the 2012 Quality Achievement Award from PACCAR Inc. This marked the second consecutive year that a Company plant has won this award. The Meppel plant supplies vehicle parts and components for DAF trucks in series production. (From a press release on July 9, 2013)

-Meritor WABCO, a joint venture between the Company and Meritor Inc., received the 2012 Excellence in Quality Award from Hino Motors Manufacturing U.S.A., Inc. Meritor WABCO has been recognized for this award three times in the past five years. The award recognizes Meritor WABCO's achievement of a perfect 0 parts per million (PPM) defect rate during the 2012 calendar year. Meritor WABCO supplies Hino with pneumatic and hydraulic anti-lock braking (ABS) systems. (From a press release on June 7, 2013)

-The Company was honored by Hino Motors with a Global Contribution Award. The award recognizes the Company's technology in terms of designing and supplying a new brake actuator, resulting in a significantly reduced number of actuator part variants, from 48 to six. In addition to brake actuators, the Company supplies Hino with other vehicle control and advanced braking technologies including anti-lock braking systems (ABS), electronic braking systems (EBS), electronic stability control (ESC) and air processing technologies. (From a press release on April 11, 2013)

-The Company won a Daimler Supplier Award in the Electrics/Electronics category for its brake components on the new Mercedes-Benz trucks Actros, Antos and Arocs. (From a press release on April 2, 2013)

Major awards from Chinese manufacturers in 2012
Company Award
Dongfeng Commercial Vehicle Company Supplier Excellence Award
Baoutou Bei Ben Heavy Duty Truck Company Supplier Excellence Award
Development Contribution Award
Beiqi Foton Motor Company Supplier Excellence Award
China National Heavy Duty Truck Group Supplier Excellence Award
Dongfeng Liuzhou Motor Company Supplier Excellence Award
Quality Contribution Award
FAW Jiefang Automotive Company Quality Excellence Award
WuHu CIMC RuiJiang Automobile Company Top Ten Supplier Award


R&D Expenditure 

(in million USD)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Overall 119.4 104.3 105.1

-The Company has 1,644 employees working in research and development.

Product Development

Automated video safety function
-Meritor WABCO, the Company's joint venture with Meritor Inc., announced a new option for OnLane, its lane departure warning system, which adds the ability to record and save videos of critical safety events. This new video safety option is currently available for OnLane. Meritor WABCO's new video-capturing feature is triggered by critical events such as a sudden deceleration. When a critical safety event occurs, the system will capture a forward-looking color video of the scene starting ten seconds before and five seconds after the event. (From a press release on December 19, 2013)

Stability control system enhancement
-Meritor WABCO, a joint venture between the Company and Meritor Inc., has combined comprehensive features that include auto-lift axle control and tire inflation data management into its newly released Rollover Stability Support (RSS) 1M trailer stability control system, a two-sensor, one-modulator system. These features provide additional benefits by controlling and monitoring ancillary trailer components in addition to providing trailer rollover mitigation functionality. (From a press release on March 7, 2013)

Technological Partnership

-The Company announced that it is partnering with Huf Electronics Bretten to develop a next-generation tire pressure monitoring system for trucks, buses and trailers. Building on its IVTM system, the Company will offer customers a choice of internally or externally mounted tire sensors or a mix of both on new commercial vehicles. Through the partnership, the Company will be able to leverage Huf Electronics Bretten's tire temperature monitoring capability to use in the new system's sensors. This new system will be available for both OEMs and the aftermarket in the second half of 2014. Huf Electronics Bretten provides tire pressure monitoring equipment to the automotive industry. (From a press release on August 13, 2013)

Investment Activities

Capital Expenditure

(in million USD)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Overall 121.5 100.5 105.2