TRW Announces New Management Alignment
28 April 1999
TRW Announces New Management Alignment and LucasVarity Integration Team
CLEVELAND--April 28, 1999--TRW Inc. announced today that as a result of the acquisition of LucasVarity plc, the company will be organized into two principal business sectors: TRW Automotive and TRW Aerospace and Information Systems.Joseph T. Gorman, TRW chairman and chief executive officer, also announced the appointment of Ronald D. Sugar to the position of president and chief operating officer of TRW Aerospace and Information Systems. The company has initiated and will complete as soon as possible a search for a president and chief operating officer of TRW Automotive.
Gorman also announced that all key executives and managers directly responsible for existing LucasVarity operations will join TRW. "In this regard," Gorman said, "we are extremely pleased that this highly experienced and talented team will be joining TRW; this LucasVarity team, combined with our existing TRW executives and managers, will be unexcelled in the industries we serve.
"The creation of this new organizational structure and these management teams will support the acquisition of LucasVarity and position TRW to capitalize on the opportunities offered by the substantially increased size and scale of our global operations," said Gorman.
"I believe this will also reinforce with customers, shareholders and other constituents that we are committed to the future of our automotive and aerospace and information businesses and intend to manage them for increased profitability and growth," Gorman said. "I am excited about the potential we have to achieve our objectives."
The new TRW Automotive sector includes all present TRW automotive operations and all newly acquired automotive operations of LucasVarity. Together, these businesses constitute a $13 billion global enterprise with approximately 100,000 employees. The newly designated TRW Aerospace and Information Systems sector combines TRW's existing Space, Defense and Information Systems business with Lucas Aerospace to create a $6 billion global high-technology business with nearly 35,000 employees.
"Establishing these two principal sectors will allow us to focus TRW's increased size and resources more sharply on the customers, competitors and technologies in each of the two business areas. It also will enable us to manage infrastructure costs more effectively," Gorman said. "The two new presidents will report to me and serve as members of the chief executive office."
James S. Remick will continue to lead TRW's existing automotive businesses as executive vice president and general manager, TRW Automotive. John Plant, currently president, LucasVarity Automotive, will also serve as executive vice president and general manager, TRW Automotive, and will continue to head the former LucasVarity automotive units. Both Remick and Plant will report to Gorman and serve as members of the TRW management committee.
In his new role as president of TRW Aerospace and Information Systems, Sugar, who has held a number of senior positions with TRW, will have the following organizations:
-- TRW Space and Electronics Group, led by Timothy W. Hannemann,
executive vice president and general manager
-- TRW Systems and Information Technology Group, led by Phillip A.
Odeen, executive vice president and general manager
-- TRW Aeronautical Systems Group (formerly Lucas Aerospace), led by
W. Kenneth Maciver, formerly president of Lucas Aerospace, who is
named executive vice president and general manager
-- TRW Telecommunications, led by John P. Stenbit, executive vice
president and general manager.
Hannemann, Odeen, Maciver and Stenbit will also serve as members of the TRW management committee.
Gorman also announced a LucasVarity integration team.
"I will chair a steering committee to oversee the integration of LucasVarity with TRW," Gorman said. "Serving on the committee will be Howard V. Knicely, executive vice president, human resources and communications; Jim Remick; and Ron Sugar. Ron will lead the integration team of the former Lucas Aerospace operations with TRW's space and defense businesses. John Plant and Arvind M. Korde, vice president and general manager, TRW seat belt systems, will also serve on the committee and will be co-leaders of the automotive integration," Gorman said.
The integration committee will focus heavily on implementing promptly high-leverage cost reduction and growth opportunity synergies. A plan to deleverage the TRW balance sheet through enhanced cash flow and asset dispositions already is being implemented for early completion.
The company confirmed that Victor Rice, chief executive officer of LucasVarity, will not be joining TRW.
On February 6, TRW commenced a cash tender offer for all the outstanding shares of LucasVarity. The period during which the recommended cash offer for LucasVarity plc by TRW Automotive UK remains open for acceptance will expire at midnight (London time), 7:00 p.m. (New York City time) on May 7, 1999.
TRW provides advanced technology products and services for the global automotive, aerospace and information markets. The company's news releases are available through TRW's corporate Web site (http://www.trw.com).
TRW Management Biographies --------------------------
Ronald D. Sugar President and Chief Operating Officer TRW Aerospace & Information Systems
Ronald D. Sugar is president and chief operating officer of TRW's Aerospace & Information Systems sector. He is a member of TRW's Chief Executive Office and Management Committee. He previously served as a senior operating executive in the company's Space & Defense and Automotive businesses, and as TRW's chief financial officer. Most recently he was executive vice president in charge of special projects for the CEO.
Dr. Sugar joined TRW in 1981, initially directing advanced research and development programs. From 1983 to 1987 he served as chief engineer and deputy program manager of the Milstar Satellite Payload Program. Milstar remains the nation's most technically advanced operational space communications system.
In 1987 he was named vice president and general manager of TRW Space Communications Division, responsible for Milstar and TRW's other military, scientific, and commercial satellite electronics programs.
In 1992 he was appointed vice president, strategic business development, for TRW's Space & Defense Sector and played a key role restructuring the sector for the post Cold War business environment. He then became vice president of group development for the newly formed TRW Space & Electronics Group, responsible for planning, marketing, technology, and international business. In 1993 he directed a special CEO study which led to changes in the company's strategy and portfolio of information services businesses.
In 1994 he was elected executive vice president and chief financial officer of TRW Inc., and a member of the TRW Management Committee. In this capacity he was responsible for the worldwide financial operations of the company and its subsidiaries, including its accounting, tax, treasury, audit, investor relations, and information technology functions.
Dr. Sugar served from 1996-98 as executive vice president and general manager of TRW Automotive Electronics Group, responsible for implementing significant improvements in its worldwide operations in automotive electronics, and engineered fastening systems.
Before joining TRW, he held technical and management positions at The Aerospace Corporation, Hughes Aircraft Company, and Argosystems, Inc.
Dr. Sugar is a summa cum laude graduate in electrical engineering of the University of California at Los Angeles (1968), where he also received master's (1969) and doctoral (1971) degrees in the same field. He subsequently completed executive education programs at Stanford and the Wharton School. He was honored by his alma mater in 1996 as Alumnus of the Year and in 1997 as Commencement Speaker.
James S. Remick Executive Vice President and General Manager TRW Automotive
James S. Remick was named executive vice president and general manager of TRW Automotive in February 1999. In this position he is a member of the TRW Management Committee. He also is serving as acting vice president of lean manufacturing and quality for TRW Automotive until a permanent leader is named for that position.
Mr. Remick oversees the full range of strategic and operating issues for the automotive businesses TRW held prior to its acquisition of LucasVarity. In his temporary role as head of lean manufacturing and quality, he will design and champion the TRW Production System and assist with lean implementation practices at all of the company's automotive locations. He also will establish a global manufacturing policy team.
Most recently, Mr. Remick was executive vice president and deputy general manager of TRW Automotive.
He joined TRW in 1961, serving for more than 10 years in assignments of increasing responsibility at the Valve Division plant in Cleveland, Ohio. In 1971 he was appointed plant manager for TRW Steering & Suspension Division in Sterling Heights, Mich., and in 1974 he became director, manufacturing planning, for the Lebanon and Greeneville, Tenn., plants of TRW Commercial Steering Division. In 1980 he was appointed vice president and general manager of the Commercial Steering Division.
Mr. Remick left TRW in 1985 but returned in 1989 as vice president and general manager of commercial steering operations worldwide. He was named deputy general manager, TRW Steering Systems Group, in 1990. From November 1991 to April 1995 he was vice president and general manager, TRW Steering & Suspension Systems, North & South America.
From April to October 1995, he was vice president and deputy general manager of Project ELITE, TRW's broad-based effort to improve the operating effectiveness of its worldwide automotive businesses.
In October 1995 he was named executive vice president and general manager of TRW Steering, Suspension & Engine Group. The following year he became executive vice president and general manager of TRW Occupant Restraint Systems Group.
A native of Youngstown, Ohio, Mr. Remick holds a bachelor's degree in mechanical engineering from Youngstown State University and a master's degree in business administration from Michigan State University.
John Plant Executive Vice President and General Manager TRW Automotive
John Plant was named executive vice president and general manager of TRW Automotive on April 28, 1999. In this position, he heads the former LucasVarity automotive units and is a member of the TRW Management Committee.
Prior to his current position, he was president of LucasVarity Automotive.
Mr. Plant joined Lucas in 1978, entering Central Finance within the Systems Development Department. During the late 1970s and early 1980s he held a variety of finance positions in electronics, starter, lighting and switch controls, culminating in appointment to the position of divisional finance manager in 1983.
In 1985 Mr. Plant was appointed to his first general manager position at the switch controls business in Lancashire in the United Kingdom. With the formation of Lucas Automotive in 1987, he was appointed managing director of Body Systems, one of the then six automotive business divisions, and in 1991, following further reorganization, he was made managing director of the whole Electrical Division.
Prior to joining Lucas, Mr. Plant was employed by Touche Ross, where he qualified as an accountant in 1977 and became a Fellow of the Institute of Chartered Accountants. He is a graduate of Birmingham University, holding a bachelor of commerce degree.
W. Kenneth Maciver Executive Vice President and General Manager TRW Aeronautical Systems Group
W. Kenneth Maciver was named executive vice president and general manager of TRW Aeronautical Systems Group on April 28, 1999. In this position, he heads the former LucasVarity aerospace operations. Prior to this appointment, he was president of Lucas Aerospace.
Mr. Maciver joined Lucas in 1985 as managing director of Lucas World Service. In 1987 he was appointed managing director of Lucas Aftermarket Operations and in January 1992 became managing director of Lucas Braking Systems. He moved to Lucas Aerospace as managing director in November 1995.
Mr. Maciver began his career in the automotive industry in 1967, initially with Ford of Europe and then with British Leyland. After a number of positions in finance and planning, he was appointed to the board of Leyland Vehicles Limited in 1978 as finance and systems director. In 1981 Leyland Bus was established to take responsibility for all Leyland bus and coach activities, and Mr. Maciver was appointed managing director.
He is a graduate of Edinburgh University.