TRW Group (China) FY2005-FY2006

Business Highlights

<Highlights>
- The TRW Group, which focuses on active and passive safety systems, recently placed particular emphasis on manufacturing electronics safety system products in China. It already produces anti-lock brake systems (ABSs), electronic stability control (ESC) systems, and electric power steering systems (EPSs) in the country. 

- Since it launched operations in the Chinese market in 1994, TRW has been supplying its products mainly to FAW-VW and Shanghai GM. In 2005 and after, the Company formed alliances with Changan Automobile, Beijing Benz, and Chery Automobile to expand its business with car OEMs.  

- The Company won supply agreements to provide electronic control units (ECUs), hydraulic control units (HCUs), and ESCs to SAIC Motor, Shanghai GM, Chery Automobile, China FAW, and Lifan Automobile by 2009. 

Highlights by product

1. Active safety system division
<Steering systems> 

Business with Changan Ford Mazda 
- In February, 2006, the Company began producing steering system products for the new Ford Focus built by Changan Ford Mazda. Electric power hydraulic system (EPHS) parts are being produced at TRW Automotive Components (Shanghai) Co., Ltd. (TACS)

<Brake products>

Business with FAW-FW
- In April, 2005, the Company started producing active safety systems and safety components for the remodeled Audi A6 built by FAW-VW. Lucas Varity Langzhong Brake Co., Ltd. (LVLB) handles production of rear calipers as well as actuators and other new active safety system components that LVLB started to make recently. 

- In April 2006, the Company announced that it will supply active safety systems to FAW-VW for the Audi A4. TRW Lucas Varity Langzhong Brake Co., Ltd. (LVLB) will make rear brake calipers and brake boosters. 

ABS business with Changan Ford Mazda

- In 2006, TRW Automotive Components (Shanghai) Co., Ltd. (TACS) started manufacturing and supplying ABSs to Changan Ford Mazda.


Business with Chery Automobile
-
In 2006, the Company started supplying ABSs, caliper disc brakes, servo brakes, and brake master cylinders for the new A520 built by Chery Automobile.

<Chassis modules>

New production facility in Beijing
- In November 2006, TRW FAWER Automobile Safety Systems (Changchun) Co., Ltd. established a chassis module plant to support Beijing Benz. Located adjacent to the manufacturing facility of the automaker, the plant produces rear axles, brake assemblies, front struts, and knuckle assemblies using the just-in-time production method. 


2. Passive safety system division
<Airbags, seatbelts, steering wheels>

Business with FAW-VW
- In April 2005, the Company started producing passive safety systems and safety components for the remodeled Audi A6 built by FAW-VW. TRW FAWER Automobile Safety System Co., Ltd. (TFASS)  manufactures steering wheels, driver airbags, and curtain airbags; and Shanghai TRW Automotive Safety System (STASS) produces passive safety system products. 

- In February, 2006, the Company began producing occupant safety systems for the new Ford Focus made by Changan Ford Mazda. Airbags and seatbelts are being manufactured at Shanghai TRW Automotive Safety Systems Co., Ltd. (STASS). 

- In April, 2006, the Company announced that it will passive safety systems to FAW-VW for the Audi A4. TRW FAWER Automobile Safety Systems Co., Ltd. (TFASS) will make steering wheels, driver airbag modules, and side impact airbag impact modules. 


3. Other divisions dealing with automotive products
<Interior products and fasteners>

New subsidiary --TRW Automotive Components (Langfang) Co. Ltd.
- In November 2006, the Company established TRW Automotive Components (Langfang) Co. Ltd., providing 100 percent of the capital. TRW Automotive Components (Langfang) is situated 60 kilometers from Beijing, and next to Lucas Varity Langzhong Brake Co., Ltd. (LVLB), which is TRW's brake manufacturing joint venture company established in 1994. TRW Automotive Components (Langfang) will manufacture interior parts such as air registers and center bezels, as well as fasteners. 

R&D

R&D facility
- The group's development center in Asia Pacific

Company Name TRW Automotive Research & Development (Shanghai) Co., Ltd.
Year Established July 2004


Winter-road proving ground
- In February 2006, the Company launched construction of a winter-road proving ground in Heihe, Heilongjiang Province. This facility will become the first of its kind in the Asia Pacific region. 

Recent Developments

ABSs for the new A520 manufactured by Chery Automobile

- In March 2006, a joint development team of TRW North America and Asia Pacific developed ABSs for the remodeled A520 manufactured by Chery Automobile. It took two years for the two companies to develop the fifth-generation ABS technology.   

BS4.0 seatbelts incorporating active control retractor (ACR) technology
- In September 2006, the Company announced that Shanghai TRW Automotive Safety Systems Co., Ltd. (SRASS) will supply the BSA4.0 seatbelts incorporating the latest active control retractor (ACR) technology to Chinese automakers. Equipped with pre-crash pretensioning and load controlling technology, the new seatbelt also offers riding comfort and effective noise reduction features. The BSA4.0 seatbelts are used in models such as the new Passat B6 made by FAW-VW and the Buick Royaum built by Shanghai GM. 

Local production of electronic parking brake (EPB) systems 
- In April 2006, TRW announced that Lucas Varity Langzhong Brake Co., Ltd. (LVLB) will start manufacturing electronic parking brake (EPB) systems in 2007. 

Investment Activities

Recent Capital Investments
- Project Facility Progress
1. Constructing new plant at 
TRW FAWER Commercial Vehicle Steering (Changchun) Co., Ltd.(TFCVS)
- 16 new production lines including 2 TAS lines for steering products. 
- Targeted level of production capacity: 250,000 units/year

Completed in March 2006

2. Expanding manufacturing facility at Lucas Varity Langzhong Brake Co., Ltd.(LVLB) - Manufacturing facility to make electronic parking brakes

n.a.

3. Constructing winter road testing center  - New proving courses and dynamic testing grounds

The facility is under construction 

4. Expanding manufacturing facility at TRW Automotive Components (Shanghai) Co., Ltd. (TACS)  - Facility to make Electronic Stability Control (ESC) systems and related electronic brake systems  

n.a.

5. TRW Automotive Components (Langfang) Co. Ltd. - Facility to make interior components such as air registers and center bezels; and fasteners.  

n.a.