Leading Airbag Maker Consolidates Its Market Share

12/20/96

TRW Inc. announced Tuesday that it will pay $418 million to purchase two subsidiaries of the Canadian company Magna International, which manufactures parts for car airbags. The purchase is seen by industry experts as a move by TRW -- currently the biggest airbag maker in the world -- to consolidate its position in the new smart airbag market.

Smart airbags are the latest twist in airbag development, incorporating sensors and electronic "smarts" that allow the airbag to vary its deployment speed depending on the size of the passenger. These airbags are intended to correct a number of safety problems with conventional airbags, which have been blamed for the deaths of 52 people in the past decade.

The two newly-purchased Magna subsidiaries, German companies MST Automotive Automobil-Sichterheitstechnik and Temic Bayern-Chemie Airbag, are predicted to have combined sales of $688 million this year.

Ryan Houlette -- The Auto Channel