Oberg Industries Reports Slow Penetration Projected for New Automotive Technologies

FREEPORT, Pa., April 29 -- According to a recent survey, fewer than 25% of new vehicles will feature new, high profile automotive technologies by model year 2010. While the media highlights the tremendous potential of fuel cells, hybrid vehicles and 42 volt electrical systems, industry experts are less confident about the short term impact.

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The Model Year 2010: Beyond the Horizon survey was sponsored by Oberg Industries, a leading supplier of precision metal and plastic parts to the automotive industry. Recent SAE World Congress attendees, primarily engineering and development professionals from OEM automotive and tier one suppliers, were asked to project the number of new vehicles in 2010 that will feature the top twenty, new automotive technologies.

  The results were eye opening.  They include:

  --  Seventy-three percent of respondents believed that fuel cells will
      power fewer than 5% of new vehicles in 2010

  --  Eighty percent expected that penetration of hybrid electric motors
      and diesel engines will each be less than one-fourth of new vehicles

  --  Fewer than twenty percent of the respondents believed that the
      majority of vehicles will have a 42 volt electrical system, steer-by-
      wire, brake-by-wire, continuous variable transmission, or automated
      manual transmission systems

  --  Even without high penetration of new technologies, modest increases
      in vehicle prices will be partially offset by improved fuel
      efficiency.

"The survey sheds light on the difficulty of implementing new automotive technologies quickly," said Ralph Hardt, President and CEO of Oberg Industries. "In addition to the technical development challenges, there are significant consumer-, financial-, supply- and regulatory issues to be addressed. This process simply takes time."

Although most respondents expected low penetration of new automotive technologies by model year 2010, their comments suggested a more positive outlook for the longer term. In fact, many respondents indicated that these technologies are the only way to meet the ever-increasing demands for automotive safety, comfort, and efficiency.

Free survey results are available online at www.oberg.com.

Headquartered in Freeport, Pennsylvania, Oberg Industries provides world- class manufacturing solutions specializing in precision metal and plastic parts and assemblies for the automotive market as well as appliance, electronic components, interconnect, medical and other industries around the world. Solutions range from product and tool design to full production and assembly.

Tier One Research, a leading market research firm for the automotive industry, contributed to the survey development.

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