Eaton Acquires Truck Clutch Business in Mexico

    CLEVELAND--July 3, 2001--Diversified industrial manufacturer Eaton Corporation today said it has acquired the heavy-duty and medium-duty truck clutch manufacturing assets of Transmisiones TSP, S.A. de C.V., for an undisclosed amount.
    With $10 million in sales in 2000, TSP is located in Queretaro, Mexico and has been a licensee of technology from Eaton and its predecessors since 1973. TSP, an indirect subsidiary of DESC, S.A. de C.V. and Dana Corporation, sells its products to original equipment manufacturers and the independent aftermarket in Mexico. The transmission business of DESC and Dana, including TTC Transmission, TREMEC and TTSP, are not involved in this transaction.
    "TSP's clutch business is well positioned in its market, and will be an excellent extension to our North American clutch operations," said Eaton Clutch Division vice president and general manager, DeWayne Egly. "This acquisition enables Eaton to streamline the supply of transmissions and clutches to our Mexican customers, and provides for technological integration of clutches with other drivetrain products, which will also benefit our Mexican customers."
    Egly concluded that Eaton is optimistic about Mexico's contribution to NAFTA truck production. "We expect that our customers will continue to increase unit production from their Mexican facilities in the next few years, and Eaton(R) Fuller(R) clutches and transmissions will be an important part of that market growth."
    Eaton plans to relocate the acquired assets to its newest facility in San Luis Potosi, Mexico. The company said this transition will occur as the San Luis Potosi plant becomes operational over the next several months, and that consolidation of its Mexican transmission and clutch production at the San Luis Potosi facility will provide a cost-efficient, focused approach to manufacturing from internally shared resources in Mexico.
    Eaton is a global leader in the design, manufacture and marketing of drivetrain systems and components for medium duty and heavy duty commercial vehicles. In concert with its manufacturing and marketing partners, principally Dana Corporation, Eaton provides a complete Roadranger(R) System of manual and automatic transmissions, clutches, collision warning systems, driveshafts, steer, drive and trailer axles, brakes and chassis control systems.