BREED Announces Joint Venture With Textron and Magneti Marelli

7 May 1999

BREED Announces Joint Venture With Textron Automotive Company and Magneti Marelli

    LAKELAND, Fla.--May 6, 1999--BREED Technologies, Inc. , a world leading manufacturer of automotive occupant safety systems, announced today that the company has formed a joint venture with Textron Automotive Company Inc. (a subsidiary of Textron Inc.), and Magneti Marelli S.p.A., Italy's leading supplier of automotive systems and components to Fiat. The new joint venture company, named Textron BREED Automotive S.r.l., has been established to design and manufacture world-class instrument panels, bumpers and exterior and interior trim, initially in Italy.
    "This partnership with Textron Automotive and Magneti Marelli will significantly enhance our existing plastics and interiors business in Italy, while providing added flexibility and growth opportunities to BREED," stated Chairman & Chief Executive Officer of BREED Technologies, Johnnie Cordell Breed. "We believe strength in interiors and cockpit modules is key to advancing our position in the automotive occupant protection market. The formation of this joint venture company is a strategic move designed to meet immediate and future needs."
    BREED has contributed certain assets of its wholly owned Italian subsidiary, Gallino Plasturgia, to a new subsidiary, BREED Italian Interiors, S.r.l. Textron and Magneti Marelli have acquired 60 percent and 10 percent interests, respectively, in BREED Italian Interiors to form the resulting joint venture company, Textron BREED Automotive, S.r.l. BREED will continue to supply steering wheels produced by the former Gallino Plasturgia outside of the joint venture, under the name BREED Steering Systems.
    Textron BREED Automotive will hold a 20 percent interest in a second joint venture to be established with Magneti Marelli Integra, S.p.A. This joint venture company, in which Magneti Marelli will hold a controlling interest of 80 percent, will supply full cockpits to Fiat, utilizing Textron BREED Automotive instrument panels.
    With over $2 billion in annual revenues and manufacturing locations in fourteen countries, Textron Automotive Company is a leading global supplier of instrument panels, cockpit modules, exterior and interior trim, plastic fuel tanks, and automotive systems and components. Globally recognized for its breakthrough proprietary technologies and quality, Textron Automotive Company has received more than fifty awards for excellence from OEMs in North America, Europe and Asia.
    With turnover of 7,400 billion lire, 50 plants worldwide and a workforce of 29,500, Magneti Marelli ranks among the world's major companies in the design and production of high-tech components, systems and modules for the automotive industry.
    BREED is one of the world's largest manufacturers of complete automotive occupant restraint systems and components. With approximately $1.4 billion in annual revenues, the company designs, develops and produces advanced airbag, seat belt, steering wheel and sensing technologies for leading automobile manufacturers around the globe.