gkn driveline torque technology group · overview of gkn driveline torque technology group ......

GKN Driveline Torque Technology Group

Graeme Walford – Managing Director

Driving to perfection Driving to perfection

Overview of GKN Driveline Torque Technology Group

TTG Video

Business Overview

• History and Recent Developments

• Products, Markets and Customers

• Technology Trends

TTG Site Tour


Torque Technology Group – Brief History

2002 Torque Technology Group createdPursue growth opportunities in non-CVJ driveline componentsCapitalise on fast growing AWD and 4WD vehicle segmentsOrganic and acquisitive growth30% shareholding in Tochigi Fuji (TFS) acquired from Nissan

2004 Acquisition of TFS (100%)TTG turnover increased to c £300mTTG portfolio extended to include complete AWD capability

2005 TFS integration and restructuring successfully completed Disposal of China casting operations (Fujiwa)


Torque Technology – Delivering Growth

2005 2006 2007 2008

300

200

100

Revenues£ million

None Core

TMD

Geared

Core business on track to deliver above industry average growth

8% CAGR projected through 2011

Exit from Fujiwa and non core


GKN Driveline Torque TechnologyGKN Driveline Torque Technology is a global leader in technology, manufacture and vehicle integration of geared systems and torquemanagement products, primarily for 4WD and AWD vehicles.

Global Supply 2006:Geared Products – c. 900k units Torque Management – c. 2m units

Manufacturing Footprint:Japan – 2 plantsChina, Italy, North America

R&D Centres:Japan, Germany, North America

Employees: c.1,500


Torque Technology – Profile Torque Technology supplies products which deliver Power to a vehicle’s wheels and manage that power to Control the dynamic performance of thevehicle

Power products“Geared”

Final Drive Units (FDUs) for SUVs and Light Trucks

Power Transfer Units (PTUs) for SUVs and CUVs

Control products “Torque Management Devices”

AWD couplings for SUVs, CUVs, and cars

Axle TMDs to enhance dynamic performance of cars, or mobility in SUVs, Light Trucks


AWD vehicles• Normally based on FWD,

transverse engine platform• Adapted for AWD• Operate mainly in FWD mode,

AWD activated ‘on-demand’• Lightweight, fuel efficient, light

duty AWD

Torque Technology – Products and Technology

DCX Pacifica

Toyota RAV 4

Volvo XC90


Products for FWD based AWD (crossover) vehicles


Final Drive Unit (FDU)

Power Transfer Unit (PTU)

Active TMD (centre coupling)

Passive TMD (centre coupling)

Differentials



4WD vehicles• Purpose built 4WD with in-

line engine and primary RWD

• Transfer case for drive to front axle

• Heavy, high duty 4WD, less fuel efficient

LR Discovery

Ford F150

GM Chevy Tahoe


Products for RWD based 4WD vehicles


Lock up Differential

Active/Passive TMD (centre/axle LSD)

FRRD Disconnect

Final Drive Unit (FDU)

Differentials


Power Transmission Products

Complete range of Geared Products supplied to the Japanese and global markets:

• Power Transfer Units• Global No1 independent supplier ( c. 9% share)

• Final Drive Units• Japan/Asia Pacific supply, primarily for

Mitsubishi

• Differentials• Expanding global supply with new outsourcing

opportunities

PowerPowerTransmissionTransmission



Competitive Environment - PTUs

GKN Market Share 2006 – 9% Main Competitors: In-house Production, Getrag, Magna, AkashiOver 60% of the market is captive supply in-house/Keiretsu suppliers (Japan/Korea)TTG maintains #1 independent position with current business and projected growth



Control Products

Leading independent TMD supplier (c.16%) with the broadest range of products:

• E–motor and Electro-magnetic Active TMDs

• Electronic Torque Vectoring (ETV)

• Speed sensing (Viscodrive) and Torque sensing passive TMDs

• Differential Lockers, Disconnect units

• Electric Motor Drive Systems

DynamicDynamicControlControl


Competitive Environment – TMDs

GKN Market Share 2006 – 16%Main competitors: JTEKT, Magna, Borg Warner, EatonMarket is largely outsourced – progressive shift to electronic active products TTG volumes decreasing in Viscodrive but increasing in Active TMD with higher unit price


Torque Technology – Global Footprint


Torque Technology Proving Group in Japan


Torque Technology Wintertest FacilitiesArjeplog, North Sweden


Torque Technology – Sales to Major Customers 2006

Ford GroupChrysler

Mitsubishi

BMW GroupRenault-Nissan Group

IsuzuSubaru

Toyota Group

Hyundai Group

Total Others

Honda

Others include:

BombardierSuzuki GroupGMFiat GroupOther Japanese

Strong historical customer base in JapanChina/Asia Pacific and North America are fastest growing markets


PTU Applications

MMC i

Mazda 6 MPS

Nissan Murano

MMC EVO IX

MMC Outlander

Dodge Caliber,Jeep Compass/Patriot

Nissan X-Trail


Active TMD Applications

Nissan Murano

MMC GrandisPorsche Cayenne

Land Rover LR3EMCD

ETM2

Nissan Quest

Mercedes M-Class


Torque Technology – Advanced TMD ProductsC

ompl

exity

Enhanced Driving Performance

active TMD

Limited Slip Differential

Open Differential

2-Motor Electric Drive

ETV

Today


E-Motor AWD Applications

Mazda DemioNissan March

Nissan CubeNissan Wingroad


Torque Technology – Electric AWD Evolution

10 kW E-AWD

Today

Com

plex

ity

Functionality

30 kW Hybrid AWD

Wheel Hub Motor

5 kW E-AWD(in production)


Torque Technology – Industry Trends

Driveline Product Trends Mechanical AWD systems to remain dominant through 2015 with focus on light-weight, fuel efficient products

Electric AWD (motor-drive of axle or wheels) challenged by high costs & technology gaps, but area of increasing OEM activity

Emerging markets continue trend towards electronic TMDs as integral components in vehicle dynamics and safety systems

New demand from BRIC and Asian market growth - focus on basic technology, low cost products


Torque Technology – Industry Trends

4WD/AWD Market Trends through 2015Continuing but slowing growth of global 4WD/AWD market

Increasing penetration of AWD on smaller vehicles, new opportunities emerging in China, India

Some consumer shift from 4WD to AWD in US and Europe - degree dependent upon trends in fuel costs and environmental legislation

Continuing growth of 4WD in expanding Asia Pacific market


Global Light Vehicle Growth 2002 to 2011

Source: Based on Global Insight April 2007 Vehicle Forecast

0

10

20

30

40

50

60

70

80

90

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Tota

l Veh

icle

Pro

d'n

Volu

me

(m)

Total Vehicles

Compound Annual Growth Rate2006-2011

All vehicles 3.3%


4WD/AWD Vehicle Growth 2002 to 2011

Source: Based on Global Insight April 2007 Vehicle Forecast

0

10

20

30

40

50

60

70

80

90

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Tota

l Veh

icle

Pro

d'n

Volu

me

(m)

0

2

4

6

8

10

12

14

16

18

20

4WD

/ A

WD

Veh

icle

Pro

d'n

Volu

me

(m)

Total Vehicles 4WD Vehicles AWD (Hang-on) Vehicles

Compound Annual Growth Rate2006-2011

All vehicles 3.3%4WD vehicles 2.3%AWD vehicles 4.9%


Global AWD Vehicle Production

0

1000

2000

3000

4000

5000

2006 2011

Vehi

cles

('00

0s)

Source: Based on Global Insight Vehicle Forecast, April 2007

Vehicle Growth Outlook – Highlights for TTG

AWD markets show general global increase

TTG competes with PTU and TMD Coupling

4WD SUV and Truck markets show relative strength in Japan & Asia Pacific

TTG competes with Mitsubishi axle supply and Limited Slip TMD

4.9% CAGR

SUVs & Pick-Ups in Japan/Asia-Pacific

0

000

000

000

000

000

2006 2011

1

2

3

4

5

Vehi

cles

('00

0s)

5.6% CAGR


Torque Technology – 2006/7 Market Success

Korea – new SUV: PTU and EMCD Coupling, vehicle integration contract

China – new SUV: PTU

Europe – new low cost AWD platform and high volume differential

New Electronic Torque Vectoring launch in next 12 months

Launch of high volume PTU for DCX in US AWD segment

Industry-leading Electronic Torque Manager launched for DCX in Europe


Torque Technology - Summary

Global business with competitive products, operating in growth markets and projecting 8% CAGR

Unique breadth of AWD/4WD product and technology

Proven driveline engineering competence and vehicle integration

World class manufacturing built on Japanese production excellence

Global network and operating experience from Driveline heritage

Strong Customer relationships – especially in Japan

GKN financial strength to capitalise on expected industry consolidation

gkn driveline torque technology group · overview of gkn driveline torque technology group ......

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