Brose Expects Further Growth: Targeted Business Volume of $3.7 Billion by 2010

AUBURN HILLS, Mich., Sept. 14 -- Despite the sluggish domestic market and the intensified pricing pressure in the international supplier industry, the Brose Group continues to grow. In 2005, turnover is expected to increase by seven percent to over $2.6 billion with more than 50 percent generated outside Germany. Compared to the previous year, the employment will increase by 6 percent to approximately 8,600. On Wednesday, at the International Motor Show in Frankfurt (IAA), Michael Stoschek, president and CEO of the Brose Group, told journalists that the family-owned company intends to increase its business volume to about $3.7 billion by 2010.

The company's growth is based on extending its position as an innovation and quality leader in doors and seats through appropriate investments and advance input. Every ninth employee at Brose is engaged in the development of new products or production processes. Brose invests a total of six percent of its turnover in research and development. By increasing capacities in the areas of electronics development and production, as well as in closure systems, the company is positioning itself as the only supplier with comprehensive development and production expertise regarding mechanical, electrical and electronic components in the vehicle door and seat.

Brose aims to use its technological leadership and the economies of scale achieved from almost 40 million electrical drives to supply further adjuster systems in the vehicle body. Drive systems for liftgates, trunk lids and sliding doors will be exhibited for the first time at the IAA 2005.

In order to improve competitiveness, agreements designed to save costs have been concluded primarily at Brose's German locations. Longer working hours and cuts in wages and salaries of up to 10 percent were necessary to counter increased cost pressures.

Expansion in North America and Asia

"Given the immense pricing pressure and process of concentration among suppliers, it is imperative for us to continue to grow if we wish to achieve cost benefits," said Stoschek, describing the company's international growth strategy.

In 2004 and 2005, Brose set up six new locations in North America, the Czech Republic and Germany. Brose North America Inc. opened a new headquarters and development center in Auburn Hills, Mich. Since 2004, door systems for Ford and DaimlerChrysler have been produced at two new plants in Chicago, Ill. and Tuscaloosa, Ala. Production of seat adjusters and door latches commenced in Ostrava (Czechia) in 2005. In Germany, the automotive supplier began "just-in-sequence" production of door systems at Sindelfingen and Rastatt.

In 2006, Brose will start operations at another four plants. In London, Ontario, Canada, a production site is being set up for seat adjusters, entailing investments of almost $60 million. In China, the company is in the process of establishing its third production site. Seat adjusters, door systems, window regulators and closure systems are scheduled to be produced at the Changchun plant, beginning next year. Two plants for door system

production are also under construction at Gothenburg, Sweden and Holzgerlingen, Germany.

From components to system: Brose innovations at the IAA 2005

At the 2005 International Motor Show in Frankfurt, Brose is exhibiting a number of innovations for automobile doors and seats which provide economic and technical benefits for the automakers, as well as making the vehicle safer and more comfortable.

Brose will present the following new products for the vehicle door: power drives for side-doors and liftgates, the "Soft-Open latch", the "Direct-Drive window regulator," as well as a highly integrated door system with a plastic functional carrier. In the seat area, Brose is supplementing its product range with two new recliners for backrests, as well as manual and power adjustable lumbar supports.

Power closure systems for side-doors and liftgates

Brose is extending its product range with drives for side-doors and liftgates, thus responding to the increased demand for comfort functions in the automobile.

Two mechatronic systems for opening and closing liftgates have been developed at Brose: the spindle drive which replaces the conventional gas strut as well as a rod drive solution which can be integrated under the vehicle roof and is 20 percent smaller and lighter than comparable products.

Both variants provide high levels of comfort and safety. The liftgate can be opened via remote control and the closing noise is some 30 percent less than what comparable products can provide. The door drives have anti-trap technology designed to prevent injuries. Additionally, there are sensors that recognize obstacles during opening and closing as well as protecting against damage.

Brose has developed an intelligent drive for the growing market of sliding-doors. It is integrated into the vehicle door and contains two safety systems to prevent injuries: a speed-controlled electro-mechanical unit and a sensor panel in the edge of the door which stops the closing process immediately in the event of an obstacle. An integrated door system with a window regulator also makes it possible to open the window in the sliding- door.

Soft-Open latch

Soft Open-Soft Close(R) is what Brose calls a new closure system which acoustically and mechanically dampens side-doors and gates, enabling easier and quieter opening and closing. Also, sealing forces of 1,000 Newtons -- more than double today's systems -- are possible. The result: wind noise is lessened and crash safety enhanced.

Direct Drive window regulator

Brose will be presenting its "Direct Drive" window regulator for the first time at the IAA 2005. It is mostly made of plastic parts, is 20 percent lighter and provides benefits in terms of assembly space. The glass attachment and drive from one unit, increases the efficiency of the whole system to such a degree that smaller and lighter electro-motors can be used.

Door system with plastic functional carrier

Another new product is a door system with a fiberglass reinforced plastic functional carrier integrating window regulator rails, loudspeaker frame, inner handle, fixing elements for cables and other components. Weight and cost savings can be achieved while maintaining approximately the same crash strength provided by steel carriers.

Innovations for vehicle seats: backrest adjusters and comfort drives

Brose has developed new products for adjusting the backrest of the seat. Depending on the customer's wish, backrest adjustments can be made using a lever or a handwheel. Brose also offers a power variant for enhanced comfort requirements. All systems are characterized by lower weight, optimized functionality and higher strength. By broadening its product spectrum in this way, Brose meets the increasing demand for complete metal structures, consisting of the backframe and the seat chassis including all mechatronic components.

Manual and power lumbar supports with an electronic massage function, as well as adjustments for the seat side bolsters and upper backrest, fulfill increased comfort requirements by providing extended adjustment possibilities for front seats. The "tailor-made seat" consisting of individual modules contributes greatly to a safe and comfortable ride.

About Brose

Brose supplies systems and modules for vehicle doors and seats to more than 40 vehicle brands and seat manufacturers worldwide. With 39 locations in Europe, North and South America, Asia and Africa, and a staff of 8,600 globally, Brose offers quality window regulators, door systems, seat adjusters and closure systems to OEMs worldwide. For more information, visit http://www.brose.net/ .