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Siemens Lauded by for Ability To Bring New Technologies to Market

14 December 1999

Siemens Automotive Lauded by Parent Company for Ability To Bring New Technologies to Market

    MUNICH, Germany, Dec. 14 - "Siemens intends to stay a leader
that shapes the future of the electrical engineering and electronics industry
with cutting-edge innovations," stated Heinrich von Pierer, president and CEO,
Siemens AG, last week at the company's annual press conference in Munich,
Germany.
    To demonstrate his point, von Pierer drew on examples from Siemens
Automotive, among the company's 16 operating units, citing numerous automotive
technologies that are transitioning from the drawing board to the market
place.  "Inventions and patents are one thing, but market success is the
critical factor," von Pierer said.  "Our automotive systems group could never
have positioned itself so strongly in the market and achieved such success
without its array of high-tech products."
    Von Pierer cited automotive products such as, gasoline and diesel fuel
injection systems, engine and emissions management systems, airbag
electronics, electronic vehicle immobilization systems, locking systems,
electronically controlled suspension systems and driver information and
navigation systems.
    "It's easy to get excited about these innovations," von Pierer said,
referring to the impact they will have on improving vehicle security,
environmental compatibility, comfort and convenience.
    Eighty percent of Siemens Automotive products are less than three years
old.  Fifty percent are two years old, or younger.  The company, presently at
$3.6 billion in sales, will double its sales volume by 2003 through internal
growth.  Many of the new technologies cited by von Pierer will represent a
substantial percentage of this growth.  In 1999, Siemens Automotive invested
14 percent ($490 million) of sales back into research and development.
    Von Pierer remarked also about the number of inventions Siemens has
registered.  In 1999, the company tallied nearly 7,500 invention
registrations, topping Europe's list of companies with the most patents.  Five
years ago, Siemens registered approximately 3,700 patents.  In the United
States, Siemens ranks among the top 20 American companies with 750 patent
registrations in 1999.  Siemens was issued 350 of those U.S. patents, 53 of
which came from Siemens Automotive's U.S. operations.
    Von Pierer's remarks about Siemens Automotive's core capabilities and
achievements stood in contradiction to recent reports indicating Siemens AG
was preparing to sell the automotive group.  Emphasizing the point, von Pierer
said, "Siemens Automotive is not for sale!"  According to von Pierer, Siemens
AG is working on scenarios with Merrill Lynch, "but on a forward-oriented
strategy for the automotive group."
    Siemens Automotive is a tier-one supplier of automotive
electronic/electrical components and systems with sales of $3.6 billion in
1998/99.  The company invested 14 percent of sales back into research and
development in 1999.  Siemens Automotive is an operating unit of Siemens AG,
the world's second largest manufacturer of electronics capital goods, at $77
billion in sales in 1998/99.  Siemens employs 443,000 people in 190 nations
around the world.