BREED/Siemens Joint Venture With New Airbag Electronics Series
2 December 1998
BREED/Siemens Joint Venture With New Airbag Electronics Series; Production Starts in 2000 - Complete Systems From a Single Source
ALZENAU, GERMANY--Dec. 2, 1998--BSRS Restraint Systems, Alzenau (Bavaria), the newly formed joint venture (50/50) of BREED Technologies Inc., Lakeland Florida and Siemens Automotive Systems, Regensburg, Germany, made its premier appearance at the Airbag 2000 International Symposium in Karlsruhe, Germany, today. In its first year of business (October 1, 1998 to September 30, 1999), BSRS anticipates annual revenues of approximately $150 million. In the next two years, the company will take over all existing restraints business from BREED and Siemens, which together reported sales of approximately $1.5 billion in the 97/98 fiscal year.
"We are continuing to make technological breakthroughs in the area of occupant restraints by utilizing the combined strengths of BREED and Siemens," commented BSRS Chief Executive Officer Wolfgang Schafer at the Airbag 2000 conference. "Our patented remote airbag firing system, which will be in production by mid-2000, is a significant example of our joint capabilities."
The BSRS remote firing system streamlines electronic controls by moving power circuits and capacitors from the ECU to the igniter. "We believe this innovation will gradually replace current central airbag electronics, as restraint systems become more complex. With this firing system, more functions can be controlled and assembly work is more cost effective. The next development step will be a sensor bus, which connects all sensor satellites," added Wolfgang Schafer.
As reported last year, BREED and Siemens have incorporated their business activities in passive restraint systems within the worldwide operating joint venture holding company BSRS. Siemens contributed $115 million in advance to pave the way, taking a 13 percent stake in BREED, which achieved sales of $1.38 billion in the 1997/98 fiscal year.
"BREED and Siemens have taken the industry's most aggressive approach to meeting customer demand for complete restraint systems. Our vision was to create a seamless, international organization dedicated solely to bringing advanced systems to market, now," commented BSRS Operating Chairman Johnnie Cordell Breed. "In the future, we will go well beyond today's definition of occupant safety through the ongoing developments at BSRS."
BSRS will establish regional subsidiaries in the U.S., Latin America and the Asia Pacific, for development and technical integration as well as for engineering and sales of components and systems. In the final expansion phase, which should be completed in two years, around 500 people will be employed worldwide, half of whom are already integrated.
Production will be based in the parent companies; and later on BSRS will also contribute new components and systems from its own production while the BSRS holding company concentrates on worldwide control of the business. In addition to customer-specific innovations, the advanced development of intelligent occupant restraint systems and their definition as the technology of the future will play an important part.
With five million central airbag control units in 97/98 - plus five million units manufactured under license - Siemens Automotive is the leading international supplier of airbag electronics; BREED Technologies is the world's largest manufacturer of steering wheels and has a strong market position in seat belt systems as well as inflators and airbag modules.