TRW and Mexican Industries Officially Open Joint Venture Facility
20 November 1998
TRW and Mexican Industries Officially Open Joint Venture Facility In Detroit Producing Side Impact Air Bags
DETROIT, Nov. 20 -- TRW Inc. and Mexican Industries of
Michigan Inc. today officially opened a joint venture facility to produce side
impact air bags in the city of Detroit.
Aguirre Safety Technologies L.L.C., a new joint venture, is located at
1400 Howard St. in the Detroit Empowerment Zone. The business is 53 percent
owned by Mexican Industries and 47 percent owned by TRW through its TRW
Vehicle Safety Systems Inc. operations in Washington, Mich. The facility is
TRW's first in the city and seventh in the metro Detroit area. It is the
sixth Mexican Industries facility in the Empowerment Zone.
"This joint venture allows Mexican Industries to expand our already
significant local operations into the area of safety technologies through our
enhanced partnership with TRW," said Pamela Aguirre, Mexican Industries'
chairman and chief executive officer. "It also expands our relationship with
one of our major automotive customers, Ford Motor Co."
The joint venture this month began producing side impact air bags for two
1999 Ford Motor Co. vehicles. The 21,000-square-foot joint-venture facility
initially will employ about 55 people. The total is expected to double by the
end of 1999 with production of about 500,000 side impact air bags for Ford and
potentially other customers.
"We are pleased to expand our relationship with Ford and Mexican
Industries by producing side impact air bags in our Detroit joint venture
facility," said James F. Smith, vice president and general manager of
Inflatable Restraint Systems worldwide for TRW. "Mexican Industries has been
a valued supplier of ours for a long time. They will also be a valuable
partner as we work to meet the increased demand for side impact air bags."
Both TRW and Mexican Industries recognized Ford Motor Co. for their strong
support in the joint venture. A long-time customer of TRW and Mexican
Industries, Ford said the joint venture is indicative of its continuing
commitment to safety and to increased minority purchasing.
Mexican Industries has been a supplier to TRW's air bag business since
1991, cutting and sewing driver and passenger air bags at its Tempe, Ariz.,
and Detroit facilities. TRW will produce about 21 million driver, passenger
and side impact air bags worldwide in 1998.
Smith noted TRW's leadership role in the global side impact business.
Industry projections are that side impact units will increase from 11 million
this year to more than 40 million annually in five years. TRW also produces
side impact air bags in facilities in Germany and in Chihuahua, Mexico.
Detroit Mayor Dennis Archer welcomed the TRW-Mexican Industries joint
venture as evidence of continued industrial development in the city and the
combining of two strong local automotive suppliers "to the benefit of the
community, the two companies and consumers alike."
The side impact air bag assembly facility expects to receive the
automotive industry's QS-9000 quality certification within the next six
months. The operation will be directed by a three-member board comprised of
two representatives from Mexican Industries and one from TRW. Daily
operations will be managed by Aguirre Safety Technologies (AST) and Mexican
Industries.
TRW, which is licensing AST to use its product and process technologies,
has primary responsibility for areas such as engineering, design and sales.
Mexican Industries is responsible for areas such as manufacturing, human
resources, accounting and purchasing.
The daily operations of the facility, located in the former Detroit Ball
Bearings building, also utilize other Mexican Industries and TRW facilities in
the Detroit area. These include the Mexican Industries facility in Dearborn
and headquarters in Detroit, and the TRW sales and engineering facility in
Washington, Mich., and TRW's testing and development operations in Romeo,
Mich.
Mexican Industries is a minority-owned, family-run supplier of leather-
wrapped steering wheels, driver, passenger and side air bags, tire covers and
other automotive trim products. The company operates 11 plants, six of which
are in Detroit's Empowerment Zone. The firm has $176 million in sales and
employs about 1,500 -- of which 90 percent are minorities.
TRW is the world's largest supplier of occupant restraint
systems, including air bags, seat belts, steering wheels, sensors and
electronics. Its global inflatable restraint systems business is based in
Washington, Mich. Cleveland-based TRW Inc. provides advanced technology
products and services for the automotive, space and defense and information
markets. TRW's 1997 automotive sales were $7 billion. Total 1997 sales were
$12 billion.