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Donnelly Corporation Produces Electrochromic Mirror Cells in Asia

5 August 1998

Donnelly Corporation Produces Electrochromic Mirror Cells in Asia

    TRAVERSE CITY, Mich., Aug. 5 -- Donnelly Corporation
has begun producing electrochromic (EC) mirror cells in Asia.
With the production startup, Donnelly is now the only automotive supplier in
the world with electrochromic manufacturing or assembly capabilities in North
America, Europe and Asia.
    The cells will be produced at Varitronix EC Mirrors, Ltd., Donnelly's
joint venture in Penang, Malaysia.
    Dwane Baumgardner, Donnelly chairman and chief executive officer, made the
announcement during a speech given at the University of Michigan Management
Briefing Seminars in Traverse City, Michigan.
    "Many analysts are currently projecting that the market for electrochromic
mirrors in the auto industry will exceed $1.5 billion as the technology
continues to migrate outward into a broader range of vehicles," said
Baumgardner.  "We believe that these projections could become reality, and the
cost and distribution advantages we will achieve with the beginning of
electrochromic production at Varitronix EC this week will prove to be a
milestone in helping push the market to its full potential."
    Until now, all of Donnelly's EC cells were produced at its Donnelly
Mirrors Limited (DML) facility in Naas, Ireland, with final assembly at DML or
at Donnelly's 128th Avenue facility in Holland, Mich.
    Baumgardner said Asian production of EC cells offers Donnelly several
advantages:
    -- the company can take advantage of the economic benefits and
       technological expertise available in the Asian markets,
    -- the production facility is located closer to existing and potential
       Asian customers,
    -- the joint venture gives Donnelly strategic diversification of its
       electrochromic production so the company can reduce the economic and
       currency risks inherent in centralized production.
    Currently, Donnelly produces EC mirrors for 14 North American, European
and Asian automakers.  And from 1997 to 1998, the company doubled the number
of its EC unit sales.
    Electrochromic mirrors dim automatically when they detect glare from the
headlights of following vehicles.  Several studies have shown the reduction in
glare achieved by EC mirrors reduces driver fatigue and improves driver
reaction time while driving at night.
    Donnelly Corporation is an international automotive supplier dedicated to
serving customers around the globe with industry-leading components and
systems in automotive mirrors, windows and interior trim and lighting.
Through its various product lines, Donnelly is a supplier to every major
automotive manufacturer in the world.  The company has been based in Holland,
Michigan since 1905, and today has approximately 5,000 employees in eleven
countries worldwide.  Donnelly is recognized as a leader in the application of
participative management, and has been named to Fortune magazine's list of the
"100 Best Companies to Work for in America."