ASHA Says OEMs Interested in Advanced Traction Technology
23 July 1997
OEMs Committed to ASHA's Advanced Traction Technology For Future Vehicle Installations
SANTA BARBARA, Calif. July 23 -- ASHA Corporation
announces that the long-awaited debut of its highly touted
GERODISC(TM) traction technology is in the near future based on a number of
OEM programs already in place and future production commitments now getting
ready to enter the pipeline.
Because of the advanced nature of these vehicle programs, OEMs prefer
anonymity while they strategize how to market the safety, handling, and
durability advantages of GERODISC on upcoming products.
This is good news to patient ASHA investors who know that every time one
or more GERODISC units is installed in a vehicle starting in the third
calendar quarter of 1998, a royalty will be paid to ASHA, whose business is
developing and selling automotive technology, not manufacturing it. This
means that with development costs and overhead accounted for, royalties
generated from each GERODISC installation amounts to substantial incremental
income.
OEMs and Tier I suppliers around the world, who traditionally eschew
royalty arrangements, are more than willing to pay for GERODISC technology.
Why? Because after extensive testing, they all have come to the same
conclusion: GERODISC traction technology significantly improves all
traditional two-wheel, four-wheel, and all-wheel drive systems, and makes
evolving electronic traction control systems perform even better.
From an accounting perspective, the OEMs know they will save an estimated
$50 to $200 per vehicle depending on the installed GERODISC drivetrain
configuration. This is due to the potential for significant reductions in
vehicle weight and component complexity. "At one OEM, we eliminated 52 pounds
of mass and more than $200 in cost," says Robert Anderson, ASHA's Engineering
Manager. "These amounts were unheard of in the past. Now they're looking at
the impact of less weight on fuel savings."
"GERODISC has given automotive engineers what we've promised them during
development and proveout," adds Anderson. "They know that GERODISC, in
addition to improving vehicle traction, handling, and safety, will reduce
weight, cost, and projected warranty exposure when compared to the current
systems now being used. They've also compared it to competitive systems and
found ours is simply better. We've never been beaten in a runoff
competition." GERODISC is a self-contained hydromechanical device that
contains a continuously operating fluid pump, piston, and set of clutches that
fit inside an axle carrier or transfer case. The GERODISC unit limits wheel
spin by automatically sensing when a wheel begins to slip. The increased
wheel speed increases the pump's output pressure which causes the clutches to
engage and slow the spinning wheel. At the same time the GERODISC unit
smoothly transfers the incoming driveshaft torque to the non-spinning wheel to
produce traction and help maintain vehicle motion and control. It
continuously monitors and maintains this torque balancing act regardless of
which wheel begins to spin and lose traction on wet, icy, or mud-slicked roads
or gravel berms.
What has also excited automotive engineers around the world is that
GERODISC works on all vehicle drivetrain configurations, including the
emerging Flexible Platform Concepts which would allow two-wheel, four-wheel,
and all-wheel drive vehicles to be built on the same assembly line at the same
time. The program development costs and tooling and assembly cost savings
from this alone could be significant.
"Our flexible platform concept will allow manufacturers to install
GERODISC-based drivetrains in much the same way as they now install different
radio or seat options," says Jack McCormack, ASHA president. "When you factor
in all of the benefits that GERODISC offers both to the manufacturer and the
vehicle owner, then add in the platform flexibility advantage, you begin to
understand the potential for ASHA technology to meaningfully advance
automotive engineering design and manufacturing."
The OEMs and their Tier I suppliers already understand these economic
advantages, evidenced by the fact that all ASHA licensees are world leaders in
their respective market segments.
ASHA Corporation, headquartered in Santa Barbara, develops advanced
technology products, and automotive design and manufacturing techniques for
the global automotive industry. It recently completed a second stock offering
of 1.25 million shares in June. The stock trades on the NASDAQ SmallCap
Market (Symbol: ASHA).
SOURCE ASHA Corporation