TRW Acquires FIAT Steering Operation In Poland

09/11/96

Business Wire has reported that TRW, the world's largest independent designer and manufacturer of rack and pinion steering gears, engine valves, air bags and seat belts, has agreed to acquire FIAT's manual steering gear operation in Czechowice, Poland, near Krakow. TRW, which provides advanced technology products, systems, and services for automotive markets worldwide, already runs an occupant restraints manufacturing facility in Czestochowa.

Under the agreement, TRW Steering Systems Poland will lease the facility at the Czechowice site, acquiring inventory, machinery, and equipment. TRW will maintain existing employment of about 170 people who will produce manual rack and pinion gears for the Polish car market. Detailed terms of the agreement were not disclosed and the transaction is subject to standard regulatory approvals.

Dr. Bernd Blankenstein, executive vice president of TRW's worldwide steering, suspension and engine business, said, "This acquisition is part of TRW's global growth strategy. We expect this operation to evolve into TRW's European center for manual rack and pinion. The transaction will include a multi-year supply agreement and represents a new level of partnership between independent supplier and car maker. We expect efficiencies gained from working as one team will benefit consumers directly."

Diego Avesani, chief executive officer of Fiat Auto Poland, said, "This agreement is in keeping with FIAT's strategy to concentrate on the core business of building cars and rely on leading suppliers for component manufacture. I am convinced that this move will contribute to the growth of the Polish component industry."

TRW is the world's fourth largest independent automotive component supplier, and its global automotive businesses include engine valves and valve train systems, steering and suspension systems, occupant restraint systems, electrical and electronic systems, and engineered fasteners for cars, trucks, buses and off-highway vehicles. TRW's sales in 1995 exceeded $10 billion.

Paul Dever -- The Auto Channel