Hella Expands Production at Flora Facility

    FLORA, Ill.--May 1, 2003--Hella is increasing North American production of automotive accelerator-pedal sensors by more than 300 percent at its manufacturing facilities in Flora, Illinois.
    The company is adding a $1-million production line and two shifts with a total of 10 new employees at the Flora plant, according to Joseph V. Borruso, Hella North America's president and CEO.
    The plant currently produces more than 450,000 electronic accelerator-pedal sensors per year. Annual production is expected to reach two million units when the new line becomes fully operational in 2005.
    Borruso notes that new, low-cost accelerator-pedal sensor (APS) technology from Hella is improving the safety and reliability of many new-model vehicles. Wider acceptance of the technology also has prompted Hella to invest nearly $3 million in the development of its Flora APS production facilities.
    Hella pedal-sensor technology, which debuted in Europe in 1996, regulates acceleration with an electrical connection between the accelerator pedal and a vehicle's engine-management system. It replaces mechanical systems in which throttle valves are opened or closed by gears and cable.
    Hella has supplied nearly 11 million accelerator-pedal sensors for electronic throttle-control systems on a global basis since 1996, according to Borruso. He expects Hella's North American unit sales to reach four million or more within the next five years.
    A recent report by CSM Worldwide, Inc. -- a Northville, Mich., forecasting firm -- predicts that the North American market share for electronic throttle-control systems will climb from 10 percent today to 30 percent or more by 2007.
    "APS technology is safer, easier to assemble, more reliable and less costly to produce than the mechanical systems it replaces," says Anke Hoferichter, director of advanced engineering at Hella North America.
    Hoferichter notes that the use of APS technology results in an average cost savings of approximately 15-20 percent, primarily due to ease of installation. Hella's integrated pedal is fastened to a firewall or dashboard by two or three bolts, and a connector is plugged into a Hella control module. During new car assembly, it can be installed at one station, compared to three or four stations required to install cable-based systems.
    A typical mechanical unit has a cable hooked to the pedal. The cable is fed through the dashboard and firewall, then connected to the throttle body. In the engine compartment, the cable can be kinked or damaged when other components are being installed.
    "Electronic throttle controls also permit automakers to more efficiently manage electronically-monitored engine-control systems and onboard diagnostic systems," Hoferichter adds, noting that Hella's patented APS technology also provides drivers with virtually the same accelerator pedal "feel" as more conventional mechanical systems.
    Hoferichter estimates that virtually all vehicles built in North America will have electronic accelerator controls within the next 10 years -- a potential market of 120 million or more units.
    "Another advantage of Hella's electronic accelerator-pedal sensor is that it can be adapted to a wide range of installation situations in different vehicle models because of its compact, modular design and standardized technology," Hoferichter points out.

    Hella is a tier one supplier of lighting, electronic equipment, sensors and complete vehicle front-end modules to the auto industry. Hella North America and its parent company, Hella KG Hueck & Company, have 22,500 employees at more than 58 production locations in 16 countries throughout the world. Worldwide consolidated sales for Hella during the company's 2001-2002 fiscal year grew to more than $2.9 billion. Additional information about the company is available on the Internet at http://www.hellana.com or www.hella.de.