Best known for its work on MagneRide adaptive suspension technologies, which feature in a growing number of premium vehicles, investment in BWI Group’s brake systems capacity aims to raise the company’s profile in key growth markets. Matthew Beecham talked with the company’s global sales and engineering director, Alan Lee, to understand the strategy
How does the brake system division fit within BWI Group’s overall offering?
Go deeper with GlobalData
Basically, BWI Group is a premium Tier One supplier of brake and suspension systems. Having once been part of General Motors, we are unique in being able to bring a whole-vehicle perspective to chassis system development. MagneRide is probably the highest profile example of our expertise, but our portfolio of brake technologies performs a similar role, offering OEMs premium solutions at a competitive cost.
BWI Group’s brake portfolio offers complete brake systems and a full range of brake components. We have recently launched our latest generation sliding caliper and are preparing to launch the corresponding rear integral caliper. In actuation, we are introducing a new fixed seal master cylinder. We have a new ABS product out and are preparing to launch the latest version of our ESC product. This in addition to the drum brakes, rotors, knuckles and fully assembled corners that we supply to many customers.
Where do you see the greatest growth potential for brakes suppliers in the next few years?
As the demand for active safety and more advanced vehicle control increases, so will the need to integrate different chassis systems electronically. For this, OEMs will need partners that have a more integrated approach. Because BWI Group supplies complete chassis systems, brakes and suspension, we can share market, customer, and technical knowledge across systems.
Our expertise in chassis synthesis and design means that we can improve vehicle control. There is also a lot of common electronics, software and vehicle development work that we are able to share.
However, the greatest potential lies in the shift towards more custom solutions. BWI Group is the right size to give individual attention to each customer and to produce the correct brake solution for specific applications. Vehicle manufacturers want the best solution for their customer, not a standardized version of another customer’s solution.
What demand do you see for the supply of complete corner modules?
Corner modules represent a limited, but stable market with some growth opportunities that rely on specific designs by customers. Fully engineered and assembled corner modules can be high-value: each of the components has stricter requirements and tolerance controls and can be assembled with greater precision to deliver higher performance with low noise and vibration. Some market segments recognise the value of the higher field quality and performance, but if corner modules are just a means of outsourcing assembly operations to reduce labour costs, then the business case is not so strong.
We succeed by providing customers with a better solution at a cost that accurately reflects the value. We don’t compete against large, low-cost suppliers that have relatively little component or system knowledge. OEMs come to us to tap into our expertise and to have technologies that improve noise, pedal feel and performance.
What are the main challenges facing braking suppliers?
Braking suppliers are affected by the same challenges as the rest of the industry. Everybody in the supply base faces reduced global demand at the moment and is anticipating the return of consumer confidence, economic recovery and new car sales in North America and Europe. China’s incredible growth has slowed a little as well.
There are still substantial opportunities, however. Vehicle manufacturers need to improve their vehicles’ CO2 emissions and fuel economy and buyers expect continuous advances in safety. Chassis systems have a role to play in both. To support CO2 reduction strategies, engineers across our global development network are developing brake systems with lighter components, lower drag and technology compatible with multiple powertrain configurations. Our range covers everything from motorcycles and small cars to SUVs and so, while the current climate is hard, we are competitively positioned to support new programmes.
What opportunities are you pursuing in China and emerging markets?
There are significant opportunities for all of BWI’s chassis technologies to grow in China and this is particularly true for brakes. The market there continues to experience solid growth and we are increasing production capacity there for both brake and suspension technologies to support this.
We have developed optimized calipers and discs that improve brake performance, drag, wear, noise and cost.
What plans do you have for investment in your braking division? What plans for recruitment?
We are growing our organization in the markets where BWI is experiencing the strongest growth. In China, we are adding capacity for both brake calipers and ESC to meet customer demand. We have also opened new chassis plants in China and India. Initially these plants will build dampers, but there is capacity to expand to support new brake programmes. We are also establishing an additional technical center in the Beijing area. We have been selectively recruiting, looking for talent that can support our growth.
As a global player, do you see future product requirements differing or converging in the various markets? In what ways?
As yet we see no convergence of requirements for brake systems and technologies. Different vehicle manufacturers and markets still have quite different requirements for brake systems. North America leads in terms of penetration of ESC and hybrid powertrains with brake energy regeneration. In Europe, emission reduction requirements and functional safety standards, such as ISO26262, are driving brake system design.
In China cost is a major driver, but one that is balanced by demand for higher levels of technology. In India, the key question is still affordability for the end-user and there is very little penetration of more upscale brake technology.
Over time, we do expect market requirements to converge, but it will always be buyers’ purchasing power that drives the demand for technology.
What are the most likely technical developments in braking systems? Does legislation play a significant part in prioritising technical developments? If so which aspects are most relevant?
Brake systems will continue to evolve as they deal with changes in vehicle architectures, powertrains, and legislation. In controlled brakes, development continues to focus on reducing costs while advancing active safety and brake performance. The issues posed by hybrid powertrains – the lack of vacuum and electric park brakes among others – are also driving development.
Legislative changes will also be a factor. With some US states imposing strict limits on the emission of copper particles from brakes, there will need to be new friction material formulations and systems that can support any possible changes in thermal performance that result.
Legislation can also create demand for new technologies. This is what we’re seeing in the US with ESC now fitted as standard. In Brazil ABS is now mandatory and in China the government is considering new policies on ESC fitment, knowing that volume gains can help affordability.
BWI Group
BWI Group is the company that acquired the business of Delphi Chassis Systems on 1st November 2009. The product portfolio is split into two complementary groups: ride & handling technologies and braking technologies. In both areas, the offering ranges from solid value items such as twin-tube dampers and brake system components, to highly sophisticated active systems, to the expertise required to integrate them with premium vehicle programmes. BWI Group’s engineering philosophy can be summarised as ‘innovation with design simplicity’: a strategy that is clearly demonstrated in world-class technologies such as electronically controlled braking and stability systems, the MagneRide controlled damping system and the award-winning MR Powertrain Mount.
The substantial product portfolio is supported by technical centres in North America, China, Japan, France and Poland and by applications support centres in Australia, Germany, India, Taiwan and the United Kingdom, complemented by hot weather and cold weather test centres in North America.
