Annual Report 2003 2004

74
Automotive sees growth
potential in Asia, Central
and Eastern Europe.
Automotive The Automotive segment has continuously expanded its position as a
systems supplier, development partner and materials specialist. Virtually every car on the road
today features our products. At some 140 locations in 17 countries, we produce customized
components, modules and systems for Body, Chassis and Powertrain applications. Sales
increased to €7.3 billion.
Automotive in figures
Order intake million €
Sales million €
EBITDA million €
Income* million €
Employees (September 30)
* before taxes and minority interest
2002/2003
2003/2004
The Automotive segment has set itself ambitious goals to strengthen its international market position.
We aim to build on existing leadership positions, enhance our performance, expand our regional
presence, differentiate ourselves further from the competition, and advance our international employee
development program. In achieving these goals, the cross-segment material and process capabilities
available in the ThyssenKrupp Group play a key role in customer retention.
With the acquisition of an interest in Bertrandt, one of Europe's leading engineering specialists,
the segment now offers its customers a complete package of technology, development, process and
production know-how. This investment permits Automotive to become involved in the development of
vehicle models at a very early stage in which 80% of the costs are already defined by the selection
of materials and design. We are thus better equipped to meet the increasing market demands for
the supply of modules through to complete bodies in white. The reallocation of the Assembly Plant
activities from Technologies to Automotive will allow us to utilize synergies in body-in-white assembly
equipment and construction.
Innovations such as the Presta DeltaValveControl, independent suspension systems for heavy trucks
and advances in mechanical and electric steering systems attracted great interest from our automotive
customers. All companies made particular progress in the area of weight reduction. The expansion of
our Ilsenburg site allowed us to considerably extend our lead in the field of assembled camshafts.
Expansion in Asia and Eastern Europe
Asia as well as Central and Eastern Europe are among the fastest growing markets in the automobile
sector. Automotive aims to further expand its presence in these markets. In China we have joined up
with local partners to establish various companies for the production of steering systems and chassis
components. Preparations are under way to establish further new companies, e.g. for the production of
crankshafts. In addition, we will further intensify our collaboration with Asian automobile manufacturers
in their respective local markets and also with their foreign production sites.
In view of its medium- and long-term growth potential, we are monitoring very closely the entire region
of the eu enlargement countries. The crucial factors for us are the strategy and location decisions of
the vehicle manufacturers: “We follow our customers”. Automotive already has two locations in Poland,
two in Romania and one in the Czech Republic. Further operations will be added. For example, plans
currently under way include the expansion of steering systems production in Poland and shock absorber
capacities in Romania, as well as the establishment of a production site for structural components in
Slovakia and of crankshaft forging and machining capacities in Eastern Europe. For Russia's growing
automobile market, the scope for increasing activities with domestic vehicle manufacturers is likewise
being assessed. In addition, we aim to expand our supplies to European vehicle producers in Russia.
6,271
6,295
533
189
41,414
7,424
7,312
644
288
43,491