TRW Significantly Expands Advanced Safety Systems Business
6 March 2000
DETROIT--TRW Occupant Safety Systems has won $1 billion in new annual safety systems business for up to five years, beginning in 2003, for global automakers. Production specifics are being announced for the first time this week at the SAE 2000 World Congress in Detroit.
The new business reflects TRW's industry-leading 24 safety systems integration contracts, which include advanced systems and products. These products help tailor system performance to the specifics of a crash and to the size, weight, and position of vehicle occupants. TRW had nine safety systems integration contracts at the end of 1998 and added 15 last year. The $1 billion in new annual safety systems business for up to five years was announced in October 1999 with TRW's quarterly earnings, but did not include production specifics.
"This new business, coupled with our commitment to reduce costs, improve efficiencies, and maximize purchasing opportunities and cash flow, will further strengthen the growth and profitability of our safety systems business," said James F. Smith, executive vice president and general manager of TRW's Occupant Safety Systems business. "As automakers move toward more integrated systems and advanced restraints, TRW continues to play a lead role."
Smith noted several advanced products for which TRW began production ramp-ups this year. The company is showcasing these products at the SAE show. These include:
| -- | Multistage air bag inflators -- TRW production will double to 1.5 million units this year and will grow to an estimated 9 million units by 2004. Multistage inflators deploy the air bag at different levels, based on the severity of the crash and positions of the occupants. |
| -- | Seat belt pretensioners -- TRW production will increase more than 35 percent worldwide, from 8.8 million units in 1999 to 12 million units this year. Of that total, TRW North American production triples in 2000 to 1.5 million units and will nearly quadruple in 2001. Seat belt pretensioners remove slack in the webbing to further control some of the occupant's forward movement. |
| -- | Curtain air bags -- TRW production will more than triple this year to 1.2 million units, with nearly 10 million units projected in 2004. Curtain air bags, one of the largest of the TRW product ramp-ups, deploy downward from the vehicle's roof rail between the A and C pillars to protect the front and rear-seat passengers. |
TRW's advanced electronic sensing systems -- which rely on TRW's proprietary crash severity algorithms -- enable the optimum systems performance for these products.
In 1999, TRW produced more than 71 million seat belts, 24 million air bags, and 6.2 million steering wheels. The company also significantly expanded its safety systems capabilities with last summer's opening of the $33 million Advanced Car Technology Systems (ACTS) facility in Sailauf, Germany, near Frankfurt. This joint venture with Magna Inc., is focused on the development of modular, functional, and safety systems and conducts rollover, vehicle-to-vehicle, and angular crash testing.
Based in the Detroit area in Washington, Mich., TRW's inflatable restraint, seat belt, and steering wheel systems businesses have worldwide revenues of $3 billion.
With 200 automotive locations in 25 countries, TRW Inc. is among the world's largest OEM suppliers. The company is a leading producer of steering and suspension systems; braking systems; occupant restraint systems; electronic safety and security systems; engineered fastening systems; engine components; commercial steering systems; and aftermarket replacement parts for the global automotive industry. In 1999, TRW's automotive businesses recorded sales of more than $11 billion, approximately two-thirds of the company's total $17 billion in sales.
Based in Cleveland, Ohio, TRW also provides advanced-technology products and services for the aerospace and information technology markets worldwide.
