TRW Automotive Localizing Production of Electronic Stability Control (ESC) Technology in China
LIVONIA, Mich., Jan. 11, 2007 -- TRW Automotive Holdings Corp. , the global leader in active and passive safety systems, is extending its local capabilities in China to offer global and domestic customers TRW's Electronic Stability Control (ESC) system: a technology that enhances vehicle safety.
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TRW Automotive Components (Shanghai) Co., Ltd. (TACS), the Company's wholly owned subsidiary, is investing in a long-term program aimed at increasing localized production of ESC and related electronic braking systems in China.
TRW's ESC combines the function of an antilock brake system (ABS) and traction control and adds a yaw stability function to help control vehicle dynamics based on driver demand. By monitoring vehicle velocity information (wheel speeds, yaw rate and lateral acceleration) and driver inputs (steering, throttle and master cylinder pressure), it can selectively apply individual or a combination of brakes to help reduce the possibility of a loss of driver control. The system utilizes an electronic control unit (ECU), while a hydraulic control unit (HCU) controls the flow of brake fluid to the foundation brake system.
Initial production of electronic braking systems (ABS-only) at TACS is expected to launch later this year for Chang'an Ford Mazda. Between 2007 and 2009, production of ECUs and HCUs and fully localized assembly of ESC systems is scheduled for other major Chinese vehicle makers such as SAIC, Shanghai GM, Chery, FAW and Lifan. The Shanghai facility was a natural candidate for leading the ESC localization efforts, based on its focused portfolio of safety electronics including airbag ECU, ABS ECU, and crash sensors.
Kevin Elgood, Chief Engineer, Asia Pacific, TRW Automotive, said: "Vehicles equipped with electronic stability control systems are steadily on the rise, as more manufacturers recognize its contribution to safety, as well as enhanced driving control. TRW currently supplies ESC system to more than a dozen vehicle manufacturers on nearly 40 vehicle models worldwide. The TACS project demonstrates a consistent strategy to expand the global reach of the Company's technology to the world's fastest-growing automobile market."
Gary Dubberley, the TRW senior project manager responsible for ESC launches in Asia Pacific, added, "We are experiencing a growing application of ESC technology to vehicles manufactured in China, for the domestic and overseas markets. We believe TRW's expertise in stability control technologies and its extensive global engineering network makes the Company a valuable partner for Chinese OEMs in creating cars that meet international safety standards."
About TRW
With 2005 sales of $12.6 billion, TRW Automotive ranks among the world's leading automotive suppliers. Headquartered in Livonia, Michigan, USA, the Company, through its subsidiaries, employs approximately 63,000 people in 26 countries. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services. All references to "TRW Automotive", "TRW" or the "Company" in this press release refer to TRW Automotive Holdings Corp. and its subsidiaries, unless otherwise indicated. TRW Automotive news is available on the internet at www.trwauto.com.
Forward-Looking Statements
This release contains statements that are not statements of historical fact, but instead are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those contained in forward-looking statements made in this release. Such risks, uncertainties and other important factors which could cause our actual results to differ materially from those contained in our forward-looking statements are set forth in our Report on Form 10-K for the fiscal year ended December 31, 2005 (the "10-K"), and our reports on Form 10-Q for the quarters ended March 31, June 30 and September 29, 2006, and include: the ability of TRW's subsidiaries to succeed in China; production cuts or restructuring by our major customers; work stoppages or other labor issues at the facilities of our customers or suppliers; non-performance by, or insolvency of, our suppliers and customers, which may be exacerbated by recent bankruptcies and other pressures within the automotive industry; the inability of our suppliers to deliver products at the scheduled rate and disruptions arising in connection therewith; interest rate risk arising from our variable rate indebtedness (which constitutes a majority of the company's indebtedness), especially in view of the current climate of rising interest rates; loss of market share by domestic vehicle manufacturers; efforts by our customers to consolidate their supply base; severe inflationary pressures impacting the market for commodities; escalating pricing pressures from our customers; our dependence on our largest customers; fluctuations in foreign exchange rates; our substantial leverage; product liability and warranty and recall claims; limitations on flexibility in operating our business contained in our debt agreements; the possibility that our owners' interests will conflict with ours and other risks and uncertainties set forth under "Risk Factors" in the 10-K and in our other SEC filings. We do not intend or assume any obligation to update any of these forward-looking statements.
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