Siemens VDO Automotive Announces Diesel Systems Group

South Carolina HQ to focus on R&D, testing

AUBURN HILLS, Mich., Feb. 18 -- Siemens VDO Automotive today announced plans to establish a North American diesel systems headquarters with the creation of its Powertrain Diesel Systems North America division, to be located in Columbia, Richland County, S.C.

The company is making this move to better support customer programs and products rising from the growing interest in new generation diesel engine technology. The new division headquarters will become a national center for research and development, engineering and testing of diesel fuel technology, including piezo electronic fuel injectors, diesel pumps and fuel rails.

"We're incredibly proud to welcome another Siemens company to South Carolina," said South Carolina Governor Mark Sanford. "This is a company that has consistently pushed the research and technology envelope in creating innovative, high-tech products for a wide range of different marketplaces. Their decision to locate here represents a tremendous opportunity for our state to associate itself with that kind of innovation and we're certainly excited about moving forward with that partnership."

"Our new diesel systems headquarters creates a center of technological research and engineering expertise in diesel fuel technology and will support our innovation and leadership in diesel systems technology," said Siemens VDO Automotive President and CEO John Sanderson. "We have seen increasing interest from North American customers in new generation diesel fuel technology. The new headquarters allows us to leverage that interest with our diesel expertise to serve our customers."

Siemens VDO Automotive has been advancing diesel system technologies with the introduction and first industry application of a piezo electronic fuel injection system in 2000. The technology elevated the company to a market leadership position in Europe. Siemens VDO Automotive recently secured a contract with International Truck and Engine Corp. to supply Ford Motor Co. with piezo injection technology beginning in 2007.

The new Powertrain Diesel Systems headquarters represent a $25 million capital investment and 120 employees -- 70 of whom will be new hires from the region. Siemens VDO Automotive has taken possession of the 17,500 sq.-ft. leased facility in late January and immediately began refurbishment. The facility will include engine dynamometers and various advanced testing equipment.

Prior to the move-in date, the company temporarily will be using space in facilities made available at the new Midlands Technical College - N. E. Campus, a nearby technical institution with whom Siemens VDO has formed a relationship in education, technology and research and advancement.

"We are fortunate to have a close affiliation with both Midlands Technical College and the University of South Carolina's College of Engineering," Sanderson said. "These technical institutions provide the facilities and human capital that will support our highly technical research and development."

The close proximity to these technical and engineering schools, combined with a skilled workforce, made Columbia an attractive location to develop Siemens VDO Automotive Powertrain Diesel Systems North America headquarters.

Other Siemens commitments to South Carolina include a Siemens Energy and Automation facility in Roebuck, along with Emitec, a joint venture plant between GKN and Siemens VDO Automotive, in Greenville and Siemens Diesel Systems Technologies (SDST) LLC, a joint venture formed in 1999 with International Truck and Engine Corporation.

Siemens VDO Automotive is a tier-one supplier of automotive electronic/electrical systems and components with applications covering gasoline and diesel powertrain technologies, safety and chassis systems, body electronics, plus interior products including infotainment systems. Worldwide sales reflecting fiscal year 2002/2003 totaled $9.5 billion (euro 8.375 billion). For more information: www.usa.siemensvdo.com .

Siemens AG , headquartered in Munich, is a leading global electronics and engineering company. Siemens and its subsidiaries employ 417,000 people in 192 countries and reported worldwide sales of $80.3 billion in fiscal 2003 (10/1/02 - 9/30/03).

The United States is Siemens' largest single market in the world, with 11 of Siemens' worldwide businesses headquartered here and annual sales of $16.6 billion in fiscal 2003. The Siemens companies in the U.S. employ approximately 65,000 people in all 50 states and Puerto Rico. Corporate headquarters for Siemens' U.S. businesses are located in New York City. For more information: www.usa.siemens.com .