Preh Opens First North American Production Plant

AUBURN HILLS, Mich., Sept. 15 -- Preh Automotive, a leading German supplier of automotive sensor and driver control systems, announced the establishment of the company's first North American production facility in Monterrey, Mexico.

The 30,000 sq. ft. plant will house all of Preh's production processes, from plastics injection molding, lacquering, laser-etching and SMD technology to testing and final assembly.

Representing a $10 million investment, Preh plans to employ around 150 people at the Monterrey site, located in the industrial park of Guadalupe in the southeastern part of the city, and anticipates beginning operations by the end of the year.

Christoph Hummel, president and CEO of Preh Automotive in the U.S., says that the central location will help to attract local workers and limit employee turnover.

"Monterrey is Mexico's third largest city, with a population of four million. It has a strong industrial tradition with a highly skilled workforce," Hummel adds. "It also has the advantages of being close to the U.S. border and belonging to the NAFTA trade zone."

According to President and CEO of Preh GmbH Dr. Michael Roesnick, "We also will benefit from North American economic growth without running the risk of unstable exchange rates, a factor that has negatively influenced trading with U.S. car manufacturers and suppliers in the past."

In 2003, Preh made its initial footprint in the U.S. with the opening of an office in Auburn Hills, Mich., to assist customers with design and product development.

"In spite of the current weakness in the car manufacturing economy," Dr. Roesnick says, "we still see significant growth opportunities for Preh's lineup of advanced and innovative products." As a consequence the company has also decided to increase the headcount in its customer service center in Auburn Hills.

About Preh Automotive

Preh Automotive is a division of Preh GmbH, which was founded in Germany in 1919. As a full-service supplier, Preh Automotive works directly with major automakers and Tier I suppliers in the development and manufacture of complete interior control systems and sensors.

The company maintains in-house capabilities for plastics injection molding, precision mechanics, light-pipe design, electronics hardware, surface finishing, laser etching and software development.

With sales of $312 million (USD) in 2004, Preh GmbH employs over 1,900 people located in Germany, Portugal, France, Mexico and the U.S. Three- quarters of Preh's annual revenue comes from its automotive business. Preh's U.S. customer service center is located in Auburn Hills, Mich.