WABCO Holdings Inc. Business Report FY ended Dec. 2014

Business Highlights

Financial Overview

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 Rate of change (%) Factors
Net Sales 2,851.0 2,720.5 4.8 1)
Operating Income 331.0 331.9 (0.3) -


1) Net Sales
-In 2014, the Company's sales grew 4.8% from 2013 to USD 2,851.0 million. The increase was driven by the recently acquired Transics business and increased content of the Company's products per vehicle.

-Total sales in Europe, the Company's largest market, showed a slight increase of 0.1% for the full year 2014. Total sales increased 29.3% in North America due to increased content of the Company's products per vehicle and increased production of new trucks and buses. Total sales in Asia increased 13.3%, driven primarily by increases in India and China. Total sales in South America decreased 12.0%

-For full year 2014, the Company increased penetration of advanced vehicle safety and efficiency technologies in North America. In 2014, sales of its automated manual transmission (AMT) technologies increased by 110% as major global truck makers increased their adoption of AMT systems. Sales of its OnGuard collision mitigation system (CMS), the first with active braking in North America, increased by 49% as the Company continued to expand its CMS market leadership through further adoption of OnGuard among major commercial vehicle makers and national fleets.


-In February 2014, the Company acquired all of the outstanding shares of Tavares NV for EUR 111.1 million through WABCO Europe BVBA, a Belgian subsidiary of the Company. Tavares is a major provider of fleet management solutions in Belgium.

-In July 2014, the Company acquired Transics International, a leading provider of fleet management solutions in France. In September 2014, the Company introduced its next-generation TXTRAILERGUARD fleet management solution, which combines the functionalities of the Company's TrailerGuard telematics technology with Transics' back-office software platform TX-CONNECT. In January 2015, the Company disclosed that its fleet management business, Transics International, entered into a new agreement with ASKO NorgesGruppen, Norway's largest grocery company. Transics will provide the customer's fleet of 700 combined trucks and trailers with its fleet management solutions, including on-board computers, mobile technologies and back-office software.

Recent Developments 

Electronically controlled air suspension (ECAS)
-The Company expanded its electronically controlled air suspension (ECAS) technology – now branded OptiRide – to the truck market in China. As a result, China National Heavy Truck Corporation (CNHTC) has adopted the Comapny's OptiRide in series production on multiple truck platforms across a range of axle configurations. The Company has already equipped around 40,000 buses on Chinese roads with its OptiRide systems. (From a press release on September 24, 2014)

Predictive economic cruise control system (OptiPace)

-The Company introduced OptiPace technology, a predictive economic cruise control system for trucks and buses, at IAA Commercial Vehicles 2014 in Hanover, Germany. In a new long-term supply agreement, a major commercial vehicle manufacturer has already adopted its OptiPace system for series production expected to begin in 2016. (From a press release on September 23, 2014)

Modular braking system platform (mBSP)
-The Company launched its modular braking system platform (mBSP) and already won major awards for this technology from two global commercial vehicle manufacturers headquartered in Europe. The Company's braking architecture now enables its customers to interchangeably equip their diverse global truck and bus platforms with anti-lock braking (ABS) or electronic braking (EBS) systems. WABCO mBSP reduces the number of ABS components by 50% to the same amount of components as in EBS. The Company will provide mBSP with ABS and EBS applications for the first customer to equip its next generation of trucks and buses. These commercial vehicles will be manufactured in Europe, North America, Brazil and India from 2017 through 2021. The Company will supply its advanced braking systems to support production of more than 450,000 new trucks and buses for several of the customer's leading vehicle brands worldwide. The Company will provide EBS for the second customer's range of commercial vehicles from 2018 through 2022. Ultimately, the Company will furnish approximately 175,000 of this customer's new trucks with EBS to serve primarily markets across Europe. (From a press release on July 17, 2014)

Advanced automated manual transmission (OptiDrive system)
-The Company, at its test track in Chennai, India, demonstrated its OptiDrive system, advanced automated manual transmission (AMT) technology for trucks and buses. The Company's AMT OptiDrive technology increases fuel economy up to 5% for trucks and buses. In trials conducted in India, two fleets claimed average fuel savings up to 8% on buses fitted with the Company's AMT OptiDrive system. (From a press release on May 21, 2014)

Air processing technology
-Meritor WABCO, the Company's 50%-owned joint venture in North America, introduced fuel-saving electronic air processing technology to the North American truck market. This connectivity technology combines its System Saver 1200 Plus air dryer technology with electronic fuel-saving software stored in Meritor WABCO's anti-lock braking system. System Saver 1200 Plus is now available on four major commercial vehicle manufacturer brands and is standard equipment for select models at three OEMs. (From a press release on March 28, 2014)

Aerodynamic product (OptiFlow)
-The Company unveiled OptiFlow Tail solution, an aerodynamic product that helps to improve fuel economy and operational efficiency of trailers in Europe. OptiFlow products are the result of the Company's acquisition in 2012 of Ephicas, a pioneering company in the field of aerodynamic solutions for commercial vehicles.


-The Company was awarded a new long-term agreement by a major manufacturer of commercial vehicles headquartered in Europe. The Company will supply brake actuator technologies for a new truck platform that will enter into new markets in Southeast Asia. Designed by the Company's engineers in India, these brake actuators have been optimally adapted for the customer's local product applications in the region of Southeast Asia. The Company will supply its products from its factory in Rayong, Thailand. In addition, under the extension of an existing long-term agreement, the Company's factory in Rayong will continue through 2021 to equip the customer's standardized medium- and heavy-duty truck platform, which is manufactured at its plants in Thailand, India and China. (From a press release on August 14, 2014)


-The Company was recognized as one of the top suppliers to its U.S. operations by Cummins Inc.


R&D Expenditure 

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 145.0 119.4 104.3

-Approximately 16% of its employees work in research and development.

New Engineering Center

-The Company opened a new Application Engineering Center in Pune, India. The Company envisions deploying up to 15 engineers at the center by the end of 2015. The new center will provide a wide range of system design, application engineering and project management support to help its OE customers, including Tata Motors, develop new commercial vehicle platforms and models. (From a press release on May 5, 2014)

Investment Activities

Capital Expenditure

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 135.9 121.5 100.5

New Plant

-The Company inaugurated its fifth manufacturing facility in India, located in Lucknow. At Lucknow, the Company will manufacture advanced technologies, including anti-lock braking systems (ABS), actuators and a range of braking valves for multiple global commercial vehicle makers operating in India, including Tata Motors. The Company's new 11-acre (40,500 square meters) facility provides employment for around 150 people to-date. The Company expects to employ an estimated 300 persons when this factory reaches its full production capacity by the end of 2015. (From a press release on September 3, 2014)

Major Joint Ventures

Joint venture Location Business Ownership ratio (%) Partner
WABCO Japan, Inc. Japan Distribute WABCO's products in the local market 90 Sanwa Seiki
WABCO Compressor Manufacturing Co. U.S. Produce air compressors designed by WABCO 70 Cummins Engine
GuangDong WABCO FUWA Auto Braking System Co., Ltd. China Produce air disc brakes for commercial trailers in China 70 Guangdong FUWA Heavy Industry
WABCOWURTH Workshop Services GmbH Germany Supply commercial vehicle workshops, fleet owners and operators and end users internationally with multi-brand technology diagnostic systems 50 Wurth Group
Meritor WABCO North America Markets ABS and other vehicle control products 50 Meritor
WABCO Automotive South Africa South Africa Distributor of braking systems products 49 Sturrock & Robson