Brose expects further growth

Frankfurt (14.09.2005). Despite the sluggish domestic market and the intensified pricing pressure in the international supplier industry, the Brose Group continues to develop positively. In 2005, turnover is expected to increase by seven percent to over 2.1 billion euros with more than 50 percent being generated outside Germany. Compared to the previous year, the company headcount will increase by 6 percent to approx. 8,600. On Wednesday at the International Motor Show in Frankfurt (IAA), Michael Stoschek, President and CEO of the Brose Group, told journalists that the family-owned company intends to increase its business volume to about 3 billion euros by 2010.

The company’s growth is based on extending its position as an innovation and quality leader in doors and seats through appropriate investments and advance input. Every ninth employee at Brose is engaged in the development of new products or production processes. Brose invests a total of six percent of its turnover in research and development. By increasing capacities in the areas of electronics development and production as well as in closure systems, the company is today positioning itself as the only supplier with comprehensive development and production expertise regarding mechanical, electrical and electronic components in the vehicle door and seat.

Brose aims to exploit its technological leadership and the economies of scale achieved from almost 40 million electrical drives to supply further adjuster systems in the vehicle body. Drive systems for liftgates, trunk lids and sliding doors will be exhibited at the IAA 2005 for the first time.
In order to improve competitiveness, agreements designed to save costs have been concluded primarily at Brose’s German locations. Longer working hours and cuts in wages and salaries of up to 10 percent were necessary to counter increased cost pressures.


Expansion in North America and Asia

“Given the immense pricing pressure and process of concentration among suppliers, it is imperative for us to continue to grow if we wish to achieve cost benefits,“ said Stoschek, describing the company’s international growth strategy. In 2004 and 2005, Brose set up six new locations in North America, the Czech Republic and Germany. Brose North America Inc. opened a new headquarters and development center in Auburn Hills/Michigan (USA). Since 2004, door systems for Ford and DaimlerChrysler have been produced at two new plants in Chicago/Illinois and Tuscaloosa/Alabama. Production of seat adjusters and door latches commenced in Ostrava (Czechia) in 2005. In Germany, the automotive supplier began “Just in sequence“ production of door systems at Sindelfingen and Rastatt.

In 2006, Brose will start operations at another four plants. In London/Ontario in Canada, a production site is being set up for seat adjusters, entailing investments of almost 60 million US dollars. In China, the company is in the process of establishing its third production site. Seat adjusters, door systems, window regulators and closure systems are scheduled to be produced at the Changchun plant, beginning next year. Two plants for door system production are also under construction at Gothenburg/Sweden and Holzgerlingen/Germany.



Press contact:
Daniel Reinhardt
Telephone: +49 9561 21 2332
Telefax: +49 9561 21 1704
E-mail: daniel.reinhardt@brose.net