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A <strong>global</strong> <strong>market</strong> <strong>review</strong> <strong>of</strong><br />

<strong>automotive</strong> <strong>steering</strong><br />

<strong>systems</strong>: trends,<br />

<strong>com</strong>panies and forecasts to<br />

2010 - 2nd edition<br />

2004 edition


Page i<br />

A <strong>global</strong> <strong>market</strong> <strong>review</strong> <strong>of</strong><br />

<strong>automotive</strong> <strong>steering</strong> <strong>systems</strong>:<br />

trends, <strong>com</strong>panies and forecasts to<br />

2010 - 2nd edition - SAMPLE<br />

by Matthew Beecham<br />

July 2004<br />

Published by<br />

Aroq Limited<br />

Seneca House<br />

Buntsford Park Road<br />

Bromsgrove<br />

Worcestershire<br />

B60 3DX<br />

United Kingdom<br />

Tel: +44 (0)1527 573 600<br />

Fax: +44 (0)1527 577 423<br />

Web: www.just-auto.<strong>com</strong><br />

Registered in England no: 4307068<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Page ii<br />

Single-user licence edition<br />

This report is provided for individual use only. If you would like to share this<br />

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Fax: +44 (0)1527 577 423<br />

Email: oliver@just-auto.<strong>com</strong><br />

Copyright statement<br />

© 2004 All content copyright Aroq Limited. All rights reserved.<br />

This publication, nor any part <strong>of</strong> it, may be copied, reproduced, stored in a<br />

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<strong>of</strong> Aroq Limited.<br />

This report is the product <strong>of</strong> extensive research work. It is protected by<br />

copyright under the Copyright, Designs and Patents Act 1988.<br />

Aroq Limited <strong>of</strong>fers a reward <strong>of</strong> £1,000 for information leading to the<br />

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The authors <strong>of</strong> Aroq Limited research reports are drawn from a wide range <strong>of</strong><br />

pr<strong>of</strong>essional and academic disciplines. The facts within this report are believed<br />

to be correct at the time <strong>of</strong> publication but cannot be guaranteed. All<br />

information within this study has been reasonably verified to the author’s and<br />

publisher’s ability, but neither accept responsibility for loss arising from<br />

decisions based on this report.<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Page iii<br />

Table <strong>of</strong> contents<br />

Single-user licence edition............................................................................................................. ii<br />

Copyright statement.................................................................................................................. ii<br />

Table <strong>of</strong> contents ........................................................................................................................... iii<br />

List <strong>of</strong> tables .................................................................................................................................... v<br />

List <strong>of</strong> figures ................................................................................................................................. vi<br />

Acknowledgements ...................................................................................................................... vii<br />

just-auto.<strong>com</strong>’s research portfolio .............................................................................................viii<br />

Incredible ROI for your budget – single and multi-user licences.............................................viii<br />

just-auto.<strong>com</strong> membership ........................................................................................................... ix<br />

Glossary <strong>of</strong> terms............................................................................................................................ 1<br />

Chapter 1 Introduction.................................................................................................................... 2<br />

Heading in the right direction .................................................................................................... 2<br />

Report coverage........................................................................................................................ 3<br />

Chapter 2 The <strong>market</strong> ..................................................................................................................... 5<br />

Market trends ............................................................................................................................ 5<br />

Market players........................................................................................................................... 6<br />

Market shares ........................................................................................................................... 7<br />

Electric <strong>steering</strong> <strong>systems</strong> .......................................................................................................... 7<br />

Hydraulic <strong>steering</strong> <strong>systems</strong> .....................................................................................................10<br />

Market by product type............................................................................................................ 12<br />

Worldwide ............................................................................................................................... 13<br />

North America ......................................................................................................................... 13<br />

Europe..................................................................................................................................... 15<br />

Asia-Pacific ............................................................................................................................. 15<br />

Market forecast ....................................................................................................................... 16<br />

Electric power <strong>steering</strong>............................................................................................................ 16<br />

Electrically powered hydraulic <strong>steering</strong>................................................................................... 19<br />

Hydraulic powered <strong>steering</strong> .................................................................................................... 19<br />

Manual <strong>steering</strong>....................................................................................................................... 20<br />

Rack and Pinion...................................................................................................................... 20<br />

Recirculating ball system ........................................................................................................ 20<br />

Steering system <strong>market</strong> values............................................................................................... 21<br />

Chapter 3 Technical <strong>review</strong>.......................................................................................................... 23<br />

Four types <strong>of</strong> EPS................................................................................................................... 23<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Page iv<br />

Front <strong>steering</strong> innovations....................................................................................................... 24<br />

Rear <strong>steering</strong> innovations .......................................................................................................26<br />

Steering column innovations................................................................................................... 29<br />

Steer-by-wire........................................................................................................................... 30<br />

Chapter 4 Manufacturers.............................................................................................................. 33<br />

Delphi...................................................................................................................................... 33<br />

Koyo Seiko.............................................................................................................................. 35<br />

NSK......................................................................................................................................... 37<br />

ThyssenKrupp......................................................................................................................... 37<br />

Toyoda Machine Works .......................................................................................................... 39<br />

TRW ........................................................................................................................................ 40<br />

Visteon .................................................................................................................................... 43<br />

ZF Lenksysteme...................................................................................................................... 44<br />

Others - Aisin Seiki.................................................................................................................. 48<br />

CIE <strong>Auto</strong>motive ....................................................................................................................... 48<br />

Dana........................................................................................................................................ 48<br />

Mitsubishi Electric ................................................................................................................... 49<br />

Online sources <strong>of</strong> information ..................................................................................................... 50<br />

Free email newsletters............................................................................................................ 50<br />

Other research reports............................................................................................................ 50<br />

Global news and feature articles............................................................................................. 50<br />

Search the web ....................................................................................................................... 50<br />

Your feedback ............................................................................................................................... 51<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Page v<br />

List <strong>of</strong> tables<br />

Table 1: Major <strong>steering</strong> system and column manufacturers’ business activities............................... 6<br />

Table 2: Steering system by type fitted to vehicles in Western Europe, divided by RD EPS, PD<br />

EPS and CD EPS, 2000 - 2010 (‘000 units).............................................................18<br />

Table 3: Steering system by type fitted to vehicles in North America, divided by RD EPS, PD EPS<br />

and CD EPS, 2000 - 2001 (‘000 units) .....................................................................18<br />

Table 4: Steering system by type fitted to vehicles in Asia-Pacific, divided by RD EPS, PD EPS<br />

and CD EPS, 2000 - 2001 (‘000 units) .....................................................................18<br />

Table 5: Total <strong>steering</strong> system by type fitted to vehicles in Western Europe, North America and<br />

Asia-Pacific, divided by RD EPS, PD EPS and CD EPS, 2000 - 2001 (‘000 units)..18<br />

Table 6: Electrically Powered Hydraulic Steering system fitted to vehicles in Western Europe,<br />

North America, Asia Pacific and worldwide, 2000 - 2010 (‘000 units)......................19<br />

Table 7: Hydraulic Powered Steering <strong>systems</strong> fitted to vehicles in Western Europe, North America,<br />

Asia Pacific and worldwide, 2000 - 2001 (‘000 units)...............................................20<br />

Table 8: Manual rack and pinion <strong>steering</strong> <strong>systems</strong> fitted to vehicles in Europe, North America, Asia<br />

Pacific and worldwide, 2000 - 2001 (‘000 units).......................................................20<br />

Table 9: Recirculating ball steeing <strong>systems</strong> fitted to vehicles in Western Europe, North America,<br />

Asia Pacific and worldwide, 2000 - 2001 (‘000 units)...............................................20<br />

Table 10: Western Europe: Steering system <strong>market</strong> value by type fitted to vehicles, divided by RD<br />

EPS, PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2000 - 2010 (€ millions).21<br />

Table 11: North America: Steering system <strong>market</strong> value by type fitted to vehicles, divided by RD<br />

EPS, PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2000 - 2010 (€ millions).21<br />

Table 12: Asia-Pacific: Steering system <strong>market</strong> value by type fitted to vehicles, divided by RD EPS,<br />

PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2000 - 2010 (€ millions)..........22<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Page vi<br />

List <strong>of</strong> figures<br />

Figure 1: European <strong>market</strong> shares <strong>of</strong> the electrically powered <strong>steering</strong> <strong>systems</strong>, 2003 (% <strong>of</strong><br />

volume)....................................................................................................................... 8<br />

Figure 2: European <strong>market</strong> shares <strong>of</strong> the hydraulic vehicle <strong>steering</strong> <strong>market</strong>, 2003 (% <strong>of</strong> volume). 11<br />

Figure 3: North American <strong>market</strong> shares <strong>of</strong> the hydraulic vehicle <strong>steering</strong> <strong>market</strong>, 2003 (% <strong>of</strong><br />

volume)..................................................................................................................... 12<br />

Figure 4: Proportion <strong>of</strong> <strong>steering</strong> <strong>systems</strong> to passenger cars and light trucks worldwide, divided by<br />

RD EPS, PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2003 (% <strong>of</strong> volume). 13<br />

Figure 5: Proportion <strong>of</strong> <strong>steering</strong> <strong>systems</strong> to passenger cars and light trucks in North America,<br />

divided by RD EPS, PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2003 (% <strong>of</strong><br />

volume)..................................................................................................................... 14<br />

Figure 6: Proportion <strong>of</strong> <strong>steering</strong> <strong>systems</strong> to passenger cars and light trucks in Europe, divided by<br />

RD EPS, PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2003 (% <strong>of</strong> volume). 15<br />

Figure 7: Proportion <strong>of</strong> <strong>steering</strong> <strong>systems</strong> to passenger cars and light trucks in Asia Pacific, divided<br />

by RD EPS, PD EPS, CD EPS, EPHS, PR&P, MR&P and RCB, 2003 (% <strong>of</strong> volume)<br />

.................................................................................................................................. 16<br />

Figure 8: Delphi’s Active Front Steering (1 <strong>of</strong> 2) ............................................................................. 25<br />

Figure 9: Delphi’s Active Front Steering (2 <strong>of</strong> 2) ............................................................................. 25<br />

Figure 10: Delphi’s Quadrasteer system.........................................................................................28<br />

Figure 11: Components and signal flow in ZF Lenksysteme’s Active Steering system .................. 32<br />

Figure 12: Delphi’s E*Steer system ................................................................................................ 34<br />

Figure 13: Visteon’s <strong>steering</strong> gear machinery, Wuelfrath Chassis facility, Wuelfrath, Germany .... 44<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Page vii<br />

Acknowledgements<br />

The publishers would like to especially thank the following for their assistance<br />

in <strong>com</strong>piling this report:<br />

○<br />

○<br />

○<br />

Delphi;<br />

TRW; and<br />

Mitsubishi Electric.<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Page viii<br />

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Page ix<br />

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Glossary <strong>of</strong> terms Page 1<br />

Glossary <strong>of</strong> terms<br />

○<br />

○<br />

○<br />

○<br />

○<br />

○<br />

○<br />

RD EPS<br />

Rack Drive Electric Power Steering.<br />

PD EPS<br />

Pinion Drive Electric Power Steering.<br />

CD EPS<br />

Column Drive Electric Power Steering.<br />

EPHS<br />

Electrically Powered Hydraulic Steering.<br />

PR&P<br />

Power Rack & Pinion.<br />

MR&P<br />

Manual Rack & Pinion.<br />

RCB<br />

Recirculating Ball Systems.<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Chapter 1 Introduction Page 2<br />

Chapter 1 Introduction<br />

Heading in the right direction<br />

During the last 15 years, there has been a slow evolution in power <strong>steering</strong> but<br />

recent engine-independent electro-hydraulic power <strong>steering</strong> (EHPS) and<br />

electric power <strong>steering</strong> <strong>systems</strong> (EPS) have marked a major change in the<br />

technology. For many years, power <strong>steering</strong> technology was focused on<br />

hydraulic <strong>systems</strong> but demand is now favouring electric power <strong>steering</strong> mainly<br />

due to reduced fuel consumption and logistical benefits.<br />

Although estimates <strong>of</strong> future penetration levels by region and worldwide vary,<br />

there is <strong>com</strong>plete agreement that the trend is upwards. The only<br />

disagreements concern the slope <strong>of</strong> the trend and at what level it might<br />

plateau. Delphi anticipates that worldwide adoption rates <strong>of</strong> EPS will reach<br />

xx% <strong>of</strong> the light vehicle <strong>market</strong> by 2007. European penetration during that<br />

timeframe could reach as high as xx%, says Delphi. Koyo Seiko also anticipate<br />

exponential growth for EPS; predicting that it will be fitted to more than xx% <strong>of</strong><br />

new cars built worldwide in 2005, equivalent to xx million vehicles. Looking<br />

further ahead, TRW forecast that by 2010, xx% <strong>of</strong> cars produced worldwide<br />

will incorporate some form <strong>of</strong> electrical assistance integrated into the <strong>steering</strong><br />

system.<br />

The main reasons for strong growth in electric <strong>steering</strong>, as opposed to<br />

hydraulic, is that electric <strong>systems</strong> are more economical to run, lighter,<br />

recyclable and easier to package and install. Electric and electro-hydraulic<br />

power <strong>steering</strong> <strong>systems</strong> are typically lighter and more <strong>com</strong>pact than<br />

conventional hydraulic <strong>systems</strong>. TRW’s electrically assisted <strong>steering</strong> (EAS), for<br />

example, is a power-assist system that eliminates the connection between the<br />

engine and <strong>steering</strong> system. Its migratory product, EPHS (Electrically Powered<br />

Hydraulic Steering) replaces the customary belts and pulleys with a brushless<br />

motor that drives a hydraulic power <strong>steering</strong> pump in a conventional rack and<br />

pinion <strong>steering</strong> system. EPS takes EAS technology a step further, eliminating<br />

hydraulic fluid and the ac<strong>com</strong>panying hardware <strong>com</strong>pletely. An EPS module<br />

includes the motor, torque sensor, electronic control unit (ECU) and<br />

control/diagnostic s<strong>of</strong>tware. Although EPHS was initially considered a<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Chapter 1 Introduction Page 3<br />

‘transitionary’ technology - preceding the arrival <strong>of</strong> full EPS <strong>systems</strong> -<br />

manufacturers now predict a strong growth path.<br />

While EPS and EPHS have made significant inroads in Europe and Japan, US<br />

vehicle makers have been reluctant to replace their proven hydraulic <strong>systems</strong><br />

with the more costly electric ones because they claim the benefits are largely<br />

unnoticeable and the added cost unjustifiable to customers. The key benefit <strong>of</strong><br />

EPS is in the increased fuel efficiency obtained by freeing the engine from<br />

powering the <strong>steering</strong> <strong>com</strong>pressor, and demand would probably be far higher if<br />

fuel prices in the US and Japan were as high as they are in the UK and<br />

Germany, for example, where the fuel savings <strong>of</strong> EPS have sufficient impact to<br />

<strong>of</strong>fset the added cost <strong>of</strong> the system. As environmental concerns have gained in<br />

importance over recent years, energy-efficient electric power <strong>steering</strong><br />

mechanisms have be<strong>com</strong>e more popular. So far, the <strong>systems</strong> have been<br />

limited to use on mini-vehicles, but further development could mean they will<br />

soon be found on larger vehicles.<br />

Despite its promise, EPS is really the stepping stone to tomorrow’s full steerby-wire<br />

(SBW) directional control. The theoretical benefits <strong>of</strong> SBW are<br />

<strong>com</strong>pelling. SBW will dispense with all mechanical linkages between the wheel<br />

and the <strong>steering</strong>, freeing-up even more space in the engine <strong>com</strong>partment.<br />

Although all the major <strong>steering</strong> system manufacturers have been developing<br />

SBW <strong>systems</strong> for use in cars, some report on scaling back their development<br />

activities until 42-volt emerges. “There is still a lot <strong>of</strong> work to be done in terms<br />

<strong>of</strong> getting acceptance from the OE,” said an auto executive. “I’m sure the<br />

<strong>market</strong> will <strong>com</strong>e but with some sort <strong>of</strong> back-up system rather than full bywire.”<br />

The recent recall <strong>of</strong> 680,000 Mercedes-Benz and Maybach models fitted<br />

with electro-hydraulic brakes has raised alarm bells over SBW across the auto<br />

industry.<br />

Report coverage<br />

In this second edition <strong>review</strong>ing the key <strong>market</strong> drivers for passenger car and<br />

light vehicle <strong>steering</strong> <strong>systems</strong>, we broaden the analysis, providing forecasts <strong>of</strong><br />

the six types <strong>of</strong> <strong>steering</strong> system:<br />

○<br />

○<br />

Rack Drive Electric Power Steering;<br />

Pinion Drive Electric Power Steering;<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Chapter 1 Introduction Page 4<br />

○<br />

○<br />

○<br />

○<br />

Column Drive Electric Power Steering;<br />

Electrically Powered Hydraulic Steering;<br />

Power Rack & Pinion Steering; and<br />

Recirculating Ball Systems.<br />

Although power rack and pinion <strong>steering</strong> <strong>systems</strong> look set to dominate the<br />

<strong>global</strong> vehicle <strong>market</strong> for some years to <strong>com</strong>e - currently accounting for xx% <strong>of</strong><br />

the <strong>global</strong> <strong>market</strong> - demand is gradually switching to electric power <strong>steering</strong><br />

mainly due to fuel consumption and logistical benefits. Consequently, the main<br />

focus <strong>of</strong> this forward-looking report is on the current <strong>market</strong> and outlook for<br />

electrically-assisted <strong>steering</strong> <strong>systems</strong>.<br />

Chapter two sets out our forecast for product trends, fitment levels and <strong>market</strong><br />

wholesale values for all six types <strong>of</strong> <strong>steering</strong> in Western Europe, North<br />

America, Asia-Pacific and worldwide through 2008. It also identifies some<br />

<strong>market</strong> shares for both electrically assisted <strong>steering</strong> and conventional hydraulic<br />

<strong>steering</strong> <strong>systems</strong> in Europe and North America. All in all, this report provides<br />

no less than 50 <strong>market</strong> volume and value forecasts by region and technology<br />

through 2008.<br />

Chapter three sets out some recent innovations and the forces driving those<br />

technical advances.<br />

The likelihood <strong>of</strong> a future dominated by electric <strong>steering</strong> <strong>systems</strong> is prompting<br />

some <strong>market</strong> participants to strengthen their presence in the <strong>market</strong>, investing<br />

in new plant and equipment and forming new joint ventures. For example,<br />

ThyssenKrupp recently acquired a xx% stake in the Mercedes-Benz<br />

Lenkungen <strong>steering</strong> system subsidiary from DaimlerChrysler, adding €xxx<br />

million a year in sales to its growing Presta <strong>steering</strong> system business. In 20xx,<br />

Toyota and three <strong>of</strong> its partners have formed a new joint-venture, called<br />

Favess, to develop, manufacture and sell drive-by-wire electric power <strong>steering</strong><br />

<strong>systems</strong>.<br />

Chapter four provides pr<strong>of</strong>iles <strong>of</strong> the major <strong>steering</strong> system manufacturers,<br />

including Delphi, NSK, ThyssenKrupp, Toyoda Machine Works, TRW, Visteon,<br />

and ZF Lenksysteme.<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Chapter 2 The <strong>market</strong> Page 5<br />

Chapter 2 The <strong>market</strong><br />

Market trends<br />

During the last decade or so there has been a slow evolution in power <strong>steering</strong><br />

but recent engine-independent EHPS and EPS have marked a major change<br />

in the technology. While EPS and EHPS have made inroads in Europe and<br />

Japan, American vehicle makers have been reluctant to replace their proven<br />

hydraulic <strong>systems</strong> with the more costly electric ones because they claim the<br />

benefits are largely unnoticeable and the added cost unjustifiable to<br />

customers. EPS <strong>systems</strong> began to appear in the late 1980s, initially in mini<br />

cars. The key benefit <strong>of</strong> EPS is in the increased fuel efficiency obtained by<br />

freeing the engine from powering the <strong>steering</strong> <strong>com</strong>pressor, and demand would<br />

probably be far higher if fuel prices in the US and Japan were as high as they<br />

are in the UK and Germany, for example, where the fuel savings <strong>of</strong> EPS have<br />

sufficient impact to <strong>of</strong>fset the added cost <strong>of</strong> the system.<br />

With regard to power <strong>steering</strong>, there has been a transition from hydraulic to<br />

more environmentally-friendly electronic control <strong>systems</strong>, (hydraulic power<br />

<strong>steering</strong> involves excess pumping, whereas electric power <strong>steering</strong> uses less<br />

energy and is also lighter and more <strong>com</strong>pact). The diffusion <strong>of</strong> electric power<br />

<strong>steering</strong> is led by Europe, with its strict environmental regulations, as well as<br />

by Japan, where small cars are <strong>com</strong>mon.<br />

Electrically power-assisted <strong>steering</strong> <strong>systems</strong> are headed for the mass-<strong>market</strong><br />

worldwide, helped by their potential to save manufacturers money, reduce<br />

customers’ fuel bills, save designers valuable space, and possibly save lives<br />

as well. TRW believes switching to electric can save vehicle makers $5-10 per<br />

car, because the units are quicker to install, eliminate <strong>com</strong>plex set-up<br />

engineering and have fewer moving parts. TRW’s EPHS module is fully filled<br />

with hydraulic fluid and takes GM about 30 seconds to install and connect the<br />

module to the vehicle’s electrical system. Delphi estimates its own system cuts<br />

four minutes <strong>of</strong>f the assembly time <strong>of</strong> a vehicle and reduces <strong>com</strong>ponent parts<br />

stocked from 15 to only two. Delphi also believes that its system can deliver<br />

fuel savings <strong>of</strong> 0.21 to 0.41 kilometres per 100km, because it draws less power<br />

from the engine. Electric <strong>steering</strong> could also be safer, as it still works if the<br />

engine stalls, unlike hydraulic <strong>systems</strong>.<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Chapter 2 The <strong>market</strong> Page 6<br />

Market players<br />

The main manufacturers <strong>of</strong> <strong>steering</strong> <strong>systems</strong> are Delphi, Koyo Seiko, NSK,<br />

ThyssenKrupp, Toyoda Machine Works, TRW <strong>Auto</strong>motive, Visteon and ZF<br />

Lenksysteme. Table 1 summarises the major players’ business activities.<br />

Table 1: Major <strong>steering</strong> system and column manufacturers’ business activities<br />

Manufacturer<br />

Business summary<br />

Delphi<br />

Koyo Seiko<br />

NSK<br />

ThyssenKrupp<br />

Toyoda Machine Works<br />

TRW <strong>Auto</strong>motive<br />

Visteon<br />

ZF Lenksysteme<br />

Source: just-auto.<strong>com</strong><br />

Market shares<br />

Electric <strong>steering</strong> <strong>systems</strong><br />

On the world stage, TRW is the world’s largest supplier <strong>of</strong> electrically assisted<br />

<strong>steering</strong> <strong>systems</strong>, closely followed by Koyo Seiko, NSK and Delphi. Koyo<br />

Seiko expects to produce about 10 million EPS units in 20xx, up from xx<br />

million in 20xx. NSK sold xx million EPS units in 20xx, xx million units in 2002<br />

and expect to sell some xx million units in 2006 and 6 million in 20xx, <strong>of</strong> which<br />

around xx% will be produced outside Japan. In 2001, NSK spun <strong>of</strong>f its EPS<br />

business into a separate <strong>com</strong>pany, NSK Steering Systems Co Ltd, in a bid to<br />

accelerate development and production.<br />

In Europe, the main EPS <strong>com</strong>petitors are TRW, Koyo Seiko, Delphi and NSK.<br />

TRW also leads the electro-hydraulic <strong>steering</strong> <strong>systems</strong> <strong>market</strong> in Europe. ZF<br />

Lenksysteme claims to lead the European <strong>steering</strong> <strong>systems</strong> <strong>market</strong> for<br />

<strong>com</strong>mercial vehicles (over 6-tonnes) with a xx% share. The German supplier<br />

claims a xx% share <strong>of</strong> the total European <strong>steering</strong> <strong>market</strong>. Koyo Seiko entered<br />

the European EPS <strong>market</strong> in 19xx, supplying under a joint venture with<br />

Renault. In 20xx, the <strong>com</strong>pany further strengthened its presence in Europe,<br />

setting up the joint venture, Electric Power Steering Components Europe sro,<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Chapter 2 The <strong>market</strong> Page 7<br />

with Mitsubishi Electric in Czech Republic to produce electronic control units<br />

for EPS units in 20xx.<br />

Figure 1: European <strong>market</strong> shares <strong>of</strong> the electrically powered <strong>steering</strong> <strong>systems</strong>, 2003 (% <strong>of</strong><br />

volume)<br />

%<br />

TRW<br />

Koyo<br />

NSK<br />

Delphi<br />

ZF Lenksysteme<br />

Others<br />

Sources: just-auto.<strong>com</strong>; industry estimates.<br />

Delphi, TRW and Koyo are the leading suppliers <strong>of</strong> electric power <strong>steering</strong><br />

<strong>systems</strong> in the North American <strong>market</strong>.<br />

In Japan, Koyo Seiko leads the <strong>market</strong> with a xx% share supplying <strong>steering</strong><br />

<strong>systems</strong> to all the vehicle makers. NSK is in second place with a xx% share<br />

followed by Toyoda Machine Works, Showa and Kayaba Industry. Then there<br />

are vehicle makers’ in-house manufacturing businesses and various joint<br />

ventures that also manufacture their own EPS units. Koyo Seiko has been<br />

manufacturing EPS in Japan since 19xx.<br />

TRW recently expanded its <strong>market</strong> position in the electrically-assisted <strong>steering</strong><br />

system <strong>market</strong>, unveiling its Electrically Powered Hydraulic Steering (EPHS) to<br />

support vehicle makers applying such <strong>systems</strong> to larger vehicles. The<br />

<strong>com</strong>pany has won contracts for the new generation system with two major<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


Chapter 2 The <strong>market</strong> Page 8<br />

European vehicle makers, starting production in 20xx. “TRW has developed a<br />

product that delivers improved fuel efficiency, reduced emissions and greater<br />

power output <strong>com</strong>pared to standard EPHS, while retaining the cost benefits <strong>of</strong><br />

an hydraulic system,” said Dr Dieter Fehlings, engineering director <strong>of</strong> EPHS<br />

<strong>steering</strong> for TRW <strong>Auto</strong>motive. “In tests, the new generation <strong>of</strong> EPHS system<br />

delivers an xx% improvement in fuel economy <strong>com</strong>pared to standard hydraulic<br />

<strong>steering</strong> <strong>systems</strong>. This reduction in fuel consumption leads to a respective xx%<br />

improvement in CO2 emissions.”<br />

TRW <strong>Auto</strong>motive claims it is the dominant supplier in the European EPS<br />

arena, with more than a third <strong>of</strong> an estimated $xx billion <strong>market</strong>. The<br />

<strong>com</strong>pany’s column drive EPS <strong>systems</strong> are in production on Renault, Nissan<br />

and Fiat models, with a number <strong>of</strong> launches planned for 2004 model year. “We<br />

are in discussions with a number <strong>of</strong> customers regarding our rack drive<br />

technology that will deliver EPS for D segment vehicles and we are also<br />

working to develop enhanced power output for our column drive EPS system<br />

for upper C segment models,” said Ken Lowe, <strong>steering</strong> product manager for<br />

TRW.<br />

In total, in Europe, TRW <strong>Auto</strong>motive has EPS contracts with three vehicle<br />

makers for xx platforms. In Asia Pacific, the <strong>com</strong>pany has EPS contracts with<br />

two vehicle makers for three platforms. In 20xx, TRW doubled its sales for<br />

these products over the year. The <strong>com</strong>pany’s EPHS is fitted to vehicles in<br />

Europe, North America, Asia-Pacific and South America.<br />

© 2004 All content copyright Aroq Ltd. All rights reserved.


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