The Brose Group says that 2005 turnover is expected to increase by seven percent to over $2.6 billion with more than 50 percent generated outside Germany.
Compared to the previous year, the employment will increase by 6 percent to approximately 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 $3.7 billion by 2010.
The company says its 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, the company says, adding that it invests a total of six percent of its turnover in research and development.
The company claims it is positioning itself as the only supplier with comprehensive development and production expertise regarding mechanical, electrical and electronic components in the vehicle door and seat.
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, the company says.
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 centre in Auburn Hills, Mich. Since 2004, door systems for Ford and DaimlerChrysler have been produced at two new plants in Chicago, Ill. and Tuscaloosa, Ala. 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, Canada, a production site is being set up for seat adjusters, entailing investments of almost $60 million. 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.