DURA Automotive Signs Joint Venture Agreement with Olhotronic GmbH to Create Duratronics GmbH
ROCHESTER HILLS, Mich.--July 27, 2005--| New company to supply growing mechatronic systems market |
DURA Automotive Systems, Inc. , today announced that it has entered into a joint venture agreement with Olhotronic GmbH to develop, manufacture and sell electronic modules used in mechatronic systems for the automotive industry. The new joint venture company will conduct business under the name Duratronics GmbH and be headquartered in Lohne, Germany. The transaction is effective immediately.
Mechatronic systems utilize microprocessors and software to control the motion of mechanical devices. Mechatronics is a growing market, as the electronic content on automobiles is expected to rise to between 35 percent and 40 percent of a car's cost by 2010, versus 25 percent in 2004. Duratronics' products will be integrated with DURA's portfolio of mechatronic control systems and sold worldwide to original equipment, specialty and recreation vehicle customers, as well as to dealerships and consumers through aftermarket channels. The company's initial products will include systems such as: shifter indication; electronic seating controls; anti-pinch window electronics; and a portfolio of by-wire systems.
"The creation of Duratronics will more than double our capacity to develop and manufacture leading-edge control systems, increasing DURA's participation in the market growth of automotive electronics," said Larry Denton, DURA Automotive's chief executive officer. "Combining Olhotronic's success in electronics product development and manufacturing with DURA's control systems expertise will enable us to leverage our combined intellectual property, fuel our organic growth and provide our customers with outstanding product solutions."
"Our capabilities complement each other very well and will help to accelerate product innovation," said Lothar Oleff, Olhotronic's president. "We expect this venture will provide substantial long-term benefits to DURA, Olhotronic and our customers."
The new venture is owned and controlled equally by both companies, which will each contribute intellectual property and technical resources.
About Olhotronic
The Olho Group originated in 1963 with Olho-Technik in Lohne, Germany. A further addition to the Olho Group was the founding of Olhotronic, specialized in the development and production of electronic modules. Olhotronic designs and manufactures automotive electronic products, including assemblies for shifters, ambient lighting, sensors and parking systems. More information about Olhotronic may be found at www.olhotronic.de.
About DURA Automotive
DURA Automotive Systems, Inc., is the world's largest independent designer and manufacturer of driver control systems and a leading global supplier of seating control systems, engineered assemblies, structural door modules and integrated glass systems for the global automotive industry. The company is also a leading supplier of similar products to the North American recreation and specialty vehicle markets. DURA sells its automotive products to every North American, Japanese and European original equipment manufacturer (OEM) and many leading Tier 1 automotive suppliers. DURA is headquartered in Rochester Hills, Mich. Information about DURA and its products are available on the Internet at www.duraauto.com.