Intelligence for All Wheel Drive - Haldex

VALUABLE NEW FEATURES
for commercial vehicles
Haldex
A STEADY LIFT FOR QUALITY
Gerd Bär prefers Haldex
A MAGAZINE FROM THE HALDEX GROUP NO 1/2007
Lands of
opportunity
Haldex expands in Russia and India
Relining with customer focus • Stronger position in China

�Content
News
IN SHORT. Haldex participates in a EU-supported
project to improve traffic safety. 4
STRONGER POSITION. The Haldex acquisition
of Runguang Hydraulics provides the company
access to the Chinese mobile hydraulics
market. 22
Customer first
A TAIL OF SUCCESS. Gerd Bär GmbH dominates the
field of mobile lifting systems. The company
has chosen Haldex as sole supplier of
crucial component. 6
Haldex people
WITNESS TO HISTORY. During his 33
years in the company, Anders Loggert
has seen — and been part of
— Haldex’s rise into one of Sweden’s
corporate success stories. 11
Haldex Dynamix is a magazine published by the Haldex Group, Biblioteksgatan 11, Box 7200, SE-103 88 Stockholm, Sweden.
Editor in chief: Lena Olofsdotter. Editorial services, design and prepress: Appelberg, Box 7344, SE-103 90 Stockholm Sweden, Tel + 46-8-406 54 00.
Managing editor: Anne Hammarskjöld. Editorial commitee: Mats Kälvemark, Sherilyn Hensaw, Thomas Holm, Ulf Herlin, Mårten Lund, Diana Spieler, Steve Zarembski.
Copy editing: Valerie Mindel. Graphic design: Lena Palmius. Print: Trydells Tryckeri, Laholm, Sweden. Cover photo: Ina Agency Press.
Subscription: info@haldex.com or Fax + 1 (816) 891 9447. Haldex Dynamix is published twice a year, in Chinese, English, German and Swedish.
2 Haldex Dynamix 1/2007
11
18
Expertise
JOINED FORCES. Dual brake discs, a fixed calliper
brake and unbeatable maintenance are some of
the features of SKF and Haldex’s new wheel for
commercial vehicles. 12
THE HALDEX WAY. The Grand Rapids, Michigan,
brake shoe relining plant in the United States puts
listening to the customer at the center of its operations.
24
Features & Friends
12
NO BRAKES ON INDIA. In the wake of new
safety regulations, India is facing a huge
need for automatic brake adjusters. Haldex
India is ready to fill that need. 16
ECONOMIC BOOM. Business is booming in
both Russia and India, and Haldex is there to
take advantage of the opportunities. 18
DO IT LIKE TOYOTA. By eliminating waste, Japan’s
Toyota has shown the world how to produce
cars with maximum profitability. 23
24
www.haldex.com

6
Haldex is preferred supplier of a key hydraulic component to Bär,
Europes leading supplier of high quality mobile lifting systems.
When the environment,
safety and vehicle
dynamics drive demand
THE STRATEGIC SIGNIFICANCE OF HALDEX’ engagement in
China, India and other so-called emerging markets is rapidly increasing.
For example, the market in China for wheel-loaders is as large
as that in the rest of the world. The acquisition of Runguan Hydraulics
(see article on page 22) further reinforces Haldex position as the
leading supplier of hydraulics products to the Chinese construction
equipment industry. Haldex Hydraulics (Qingzhou) Co. Ltd. will
manufacture hydraulic pumps, valves and cylinders for different types
of construction plant such as wheel loaders and excavators.
Alongside the very positive developments in China, India is becoming
an increasingly more important market for Haldex. In April 2007,
new legislation was introduced here with regard to automatic brake
adjustment systems for commercial vehicles. With 60 percent of the
global market, Haldex is world leader in automatic brake adjusters
and is at present starting up local production to ensure deliveries to
commercial vehicle manufacturers in India. It is interesting to note
that demand is being driven by legislation. Legislation is even being
discussed in China and this could provide new opportunities for Haldex
and our partners in the commercial vehicle and construction equipment
industries.
In the usa, we can also see extensive and promising opportunities
for Haldex. Environmental legislation is being tightened with regard
to engine emission limits. This has meant an increase in demand for
Alfdex, the very successful crankcase gas cleaning system developed by
Haldex in close cooperation with Alfa Laval. Haldex’ crankcase gases
cleaning system has also been tested this spring on truck engines. The
automotive industry has shown great interest in this technology that
uses a variable pump, Varivent, which recirculates exhaust gases in diesel
engines. egr, Exhaust Gas Recirculation, is in great demand in the
usa but is also used by Scania and man, among others, in Europe.
Also, Haldex’ Traction Systems Division is rising to meet large-scale
challenges – deliveries of fourth generation 4wds are now being prepared.
These will be used, among other things, in Volkswagen’s new
Tiguan. We are also establishing a new factory in Mexico, with a delivery
start to a new North American customer planned for 2008.
Haldex mission values focus on safety, the environment and vehicle
dynamics. Guided by these, we have built up a strong platform as a
supplier to leading automotive manufacturers in Europe and the usa.
It is both gratifying and exciting that similar quality concepts are now
being demanded in the world’s fastest growing economies. Haldex is
well prepared to meet these immense and stimulating
challenges.
Joakim Olsson
Managing Director
and Group ceo
www.haldex.com 1/2007 Haldex Dynamix 3

�News
Photo iStockphoto
Tougher Japanese
Fuel-Economy Limits
The Japanese ministries of Industry
and Transport, have agreed on
new fuel efficiency standards. The
ministries plan to revise regulations
this summer. Cars, including diesel
engine models, will be required to
run 16.8 kilometres on one litre of
fuel under a specific driving mode.
The figure is 23.5% more than an
average of 13.6 km/l in 2004. The
2015 targets for small buses and
trucks are set at 8.9 km/l and 15.2
km/l, respectively, up 7.2 % and 12.6
respectively from 2004 averages of
8.3 km/l and 13.5 km/l.
4 Haldex Dynamix 1/2007
Haldex involved in EU
traffic safety project
THE 3-YEAR SPARC (Secure Propulsion using Advanced Redundant Control) project,
a joint EU/industry-funded effort to improve traffic safety through advanced technology,
was concluded this summer with a major presentation to the EU Commission
on July 16 and to the vehicle industry on July 17, in Papenburg, Germany. About 400
top managers and key figures from the vehicle industry attended the industry
presentation. The project, which began in 2004, was coordinated by DaimlerChrysler
and included 27 other representatives from the European vehicle industry. Haldex
has provided Electro Mechanical Brakes (EMB) for one of the trucks in the project as
well as a complete control system, including EMB and Electronic Air Suspension, for
one of the project trailers. The purpose of SPARC was the creation of a predictive,
rather than reactive, hazard detection system.
For further information on SPARC, visit: http://www.sparc-eu.net
Photo INA Agencypress
China plans for
Jatropha Biodiesel
THE STATE FORESTRY ADMINISTRATION OF CHINA plans to plant 13 million
hectares (an area the size of England) with Jatropha trees for biodiesel.
Jatropha is currently grown on around 2 million hectares across the
country. The forest, mostly spread over southern China, is expected eventually
to produce nearly 6 million tons (6,8 billion litres) of biodiesel every
year.
www.haldex.com

Time for greener Formula 1
The environmental requirements
imposed on Formula 1 racing are
being tightened and the end is
drawing near for the considerable
carbon dioxide emissions produced
by Formula 1 cars. In 2011, new rules
will be in effect for a greener racing
environment.
THE HEAD OF THE FIA car racing organization, Max
Mosley suggests there will be new opportunities for racing
teams and race car designers when the rules change
in 2011. Bio fuels, energy recycling, limited fuel allocation
and smaller cylinder volumes – perhaps even hybrid
engines – will be used to decrease carbon dioxide emissions
before Formula 1 falls into disrepute in the face of
environmentally conscious public opinion.
The designers are aware that the highest category formula
race cars are environmental bad guys and that the
potential exists to reduce emissions. An 800 horse power
Formula 1 car releases about 1,500 grams of carbon dioxide
per kilometer on the track. In comparison, average
emissions for cars today is 170 grams and the eu recently
set a limit of 130 grams by 2012.
Technology
can save lives
Safety oriented Intelligent Transport
Systems, ITS, such as Adaptive
Cruise Control and Intelligent Speed
Assistance can save reduce casualties
(fatalities and injured) by 40
percent according to a report from
the Dutch Institute for Road Safety
Research. The report points out
Intelligent Speed Assistance as the
most promising new technology in
terms of potential impact on safety.
ALFDEX TAKES OFF
ORDERS FOR THE ALFDEX OIL/MIST SEPARATOR have increased dramatically
since last December. The main impetus for increased production is environmental
legislation that is now taking effect. “In 2005, environmental laws took effect
in Japan. In January
2007, they took effect
in the United States. In
2008 and 2009, they
will take effect in the
EU,” says Mats Ekeroth,
Alfdex president. Recent
Photo iStockphoto
‘‘
In 2005, environmental laws took
effect in Japan. In January 2007,
they took effect in the United States.
In 2008 and 2009, they will take
effect in the eu.
Mats Ekeroth, Alfdex president’’
attention on greenhouse
gases and global
warming has not had an
immediate impact on
business, says Ekeroth.
“Even without the ‘Al Gore effect,’ demand for our separator is up because of
existing laws. Catalytic regulations, for example, are on the rise everywhere.”
But as governments respond to new pressure, they may further tighten environmental
legislation, which may result in additional demand for Alfdex, whose
customers are large truck manufacturers.
www.haldex.com 1/2007 Haldex Dynamix 5

A lift
for quality and logistics
for quality and logistics
Gerd Bär is a man with his own way of doing
things, a fact that has helped drive Gerd Bär
GmbH to the top in the fi eld of a mobile lifting
systems. The company has chosen Haldex as
sole supplier of crucial components.
Text Michael Lawton Photos Thomas Müller
Entrepreneur Gerd Bär is a typical product of the
Swabian region of Germany: He’s a bit stubborn, a
bit conservative, very hardworking and driven. He
started out running his father’s fl our mill. When
he had turned it into a profi table business, he handed it
over to his brother. Following his education, he went to
work for a company that made lifts for the backs of trucks,
and when the management wouldn’t let him get involved
in policy making, he went off and founded his own company,
Gerd Bär GmbH.
Despite the fact that he has now retired from active
involvement in Bär, Gerd Bär is still the spirit behind the
company, which has just celebrated its 25th anniversary.
Rolf Petermann-van den Berg, the company’s commercial
director, says, “We are a very young leadership team, but
we are all deeply infl uenced by [Gerd Bär].” The company
makes the Bär Cargolift mobile lifting system and is the
market leader in Germany, Poland, the Czech Republic and
Russia. �
6 Haldex Dynamix 1/2007 www.haldex.com

‘‘
We also got rid of the need for welding
– first because welders are rare and
expensive
’’
and second because you then
need to treat the joint with new rustproofing.
Gerd Bär
www.haldex.com 1/2007 Haldex Dynamix 7

Bär was the first mobile lifting system producer to offer
aluminum platforms as standard. Bär was also the first
company to offer a two-year guarantee on their steel
parts, when six months was standard.
Gerd Bär himself is known as an innovator in a fairly
conservative environment: “I have made an impression on
the industry,” he says, refl ecting on his career. “Others have
followed me.”
From the start, Bär was the fi rst company to offer aluminum
platforms as standard. “We cost dm 500 [usd 350]
more than the competition’s standard product as a result,”
remembers Gerd Bär, “but we cost dm 1,000 [usd 750] less
than the others with the aluminum platform option.”
FIFTEEN YEARS AGO, Bär started treating its steel parts
with a cathodic dip coating. That meant the company could
offer a two-year guarantee instead of the six-months guarantee
that had been usual until then. The fi rst German
competitor caught up with Bär fi ve years ago, but competitors
in the rest of Europe have just begun to use cathodic
dip coating this year.
8 Haldex Dynamix 1/2007
“Haldex has been around
longer and has better
experience with the electrical
side,” says Gerd Bär
about his companys preferred
supplier.
The market is moving
WHEN GERD BÄR, founder of Gerd Bär
GmbH, says that others in the mobile lifting
systems industry have been following his
lead, he’s not just talking about Germany. He’s
had a significant influence on the European
industry as well and especially on European
regulations.
“European regulations have turned out
to be very similar to those in Germany,” he
says. “Other people have been skeptical, but I
always said that we have to end up in Europe
on the German side of center, when it comes
to policy. And indeed, continental Europe is
now much more German than it was.” The
choice of words is significant: Only continental
Europe seems to be moving in the same
Rolf Petermann-van den Berg, Bär GmbH’s
commercial director, notes an increasing
demand for quality mobile lifting systems all
through Europe.
Bär’s latest innovation is the FreeAccess, a folded tailgate
lift that only covers one of the double doors at the back of a
transporter. The advantage is that it doesn’t have to be lowered
when the driver only wants to get in and out of the van.
But when something heavy or awkward has to be unloaded,
the tailgate can be lowered, folded out to the full width of
the vehicle and used as a full-size lift. Petermann explains
that the Bär design allows the FreeAccess to be fi tted in just
four hours. “You don’t have to cut any of the bodywork,”
he says. “You don’t have to do any welding. You don’t even
have to drill any holes because the holes we’ve used are
already in the vehicle. You and I could do it between us
right now.
“This is going to be an important product for us in the
future,” he continues. “We expect to sell 1,000 a year.”
In addition, Bär introduced the idea of selling units that
were already largely constructed. “In the old days you used
direction. The United Kingdom, says Gerd Bär,
has its own tradition, and that has made it
difficult for Bär to get a solid foothold, even
though it has one of its four subsidiaries there.
But the development of European standards
was only an extension of Gerd Bär’s
work on the development of German standards.
Some years back, he was the driving
force behind the formation of the Association
of German Manufacturers of Lifting Equipment,
which is now a Europe-wide organization.
“We needed an organization like that,”
says Gerd Bär now, “so that we could speak
to the vehicle manufacturers on equal terms.”
A major result of the group’s work was the
development of a standard interface between
trucks and lifts so that installing a lift didn’t
mean having to rewire the truck. Now all
that’s required is to fit a plug into a socket.
But each European market has its own
www.haldex.com

to get a kit of parts,” says Gerd Bär. “We also got rid of the
need for welding – fi rst because welders are rare and expensive
and second because you then need to treat the joint
with new rust-proofi ng. All you have to do with our lifts is
drill some holes and screw them on.”
In addition to FreeAccess, Bär has the usual full-width
tailgate lift and a series of lifts that retract underneath the
chassis, so that they don’t interfere when trucks are driven
up to a loading bay or when they are being unloaded by a
forklift truck. Top of the line is the all-hydraulic Hydfalt, a
double-folded lift in which the retracting, folding and lifting
mechanisms are all hydraulically operated. Many of the
products with up to 1.5 tons carrying capacity use Bär’s 2=4
technology, where two cylinders (one for lifting and one for
tilting) replace the usual four, saving cost and weight.
Haldex is the sole supplier of the hydraulic system for
Bär’s products. Gerd Bär says that Haldex is one of only two
characteristics. Rolf Petermann-van den
Berg Gerd, Bär GmbH’s commercial director,
notes that Bär is market leader for lifts on
secondhand trucks in Greece, even though
until recently Bär didn’t have a dealer there.
The trucks with the lifts were being sold from
Germany.
In the UK, column lifts seem to be standard,
and operators are not inclined to fit Bär’s cantilevered
lifts to their new trucks because of
cost. But there is a good market in retrofits,
where price seems not to be such an issue.
In Poland, it is very often the vehicle dealers
who have the main say in which lifts are to be
fitted. Petermann says that causes problems,
since Bär wants to be sure of the quality of
the fitting. So the company has its own teams
do the work, to avoid the risk that a dealer
who is inexperienced will give Bär a bad name.
In the German market, there are three typi-
www.haldex.com
cal scenarios: “The simplest situation for us is
when the vehicle body builder has a couple
of suppliers, and we’re No. 1,” says Petermann.
“Then, when a customer comes, he will be
advised to take our lift.”
But that doesn’t always happen: “Sometimes
the end user will insist on a particular
product,” Petermann says. “That occurs
mostly among the big food retailers or
the vehicle hire companies. Many of
the big companies buy their lifts
directly from us. We deliver them to
the bodywork manufacturer, but the
invoice goes to the end user.”
Increasingly now, however, vehicle
makers are cutting out the vehicle
body builders and offering complete
solutions off the shelf. “That’s changing
the market,” says Petermann.
Bär’s main partners are still the vehicle body
FreeAccess only covers one of the double doors at the
back of a transporter, and doesn’t have to be lowered
when the driver only wants to get in and out of the van.
companies that produce the quality his company needs,
and he adds, “Haldex has been around longer and has better
experience with the electrical side.” Bär has designed its
own compact unit that fi ts neatly into the main supporting
beam, so that it is protected from the elements. Haldex will
make 80 percent of the units, while Bär will make the other
20 percent from Haldex components. “We have about 80
versions of our hydraulic unit,” explains Gerd Bär, “but 20
of them make up 80 percent of our output. So we will make
the other 20 percent. That gives Haldex a good throughput,
and we can do the small jobs.”
BÄR HAS NEVER BEEN the cheapest lift manufacturer,
but Rolf Petermann says you have to see the total picture.
“Our lifts take less time to install, and they probably spend
less time in the workshop afterwards,” he says. “If you’ve
�
taken that into account, the total cost is equivalent. In
builders, however. Most of its lifts go to small
firms that are best served by local suppliers,
and that means that Bär is not dependent on
any one customer. “If a big customer drops
out, it would hurt,” says Petermann, “but it
wouldn’t break us.” �
Bär sends a specialized
team to help vehicle
dealers ensure the
quality of the lift
fittings.
1/2007 Haldex Dynamix 9

Bär has designed its own compact unit that fits neatly
into the main supporting beam. Haldex will make 80
percent of the units, Bär makes the other 20 percent
from Haldex components.
addition, we offer features as standard that others offer as
extras, such as the plug-and-play electrical interface.”
But high quality is not always rewarded, and Gerd Bär
admits that, in the past, the company tended to suffer from
a problem typically found among medium-sized German
engineering manufacturers: Products are made to please
the engineers and not necessarily the customers. “I’m
a technical man, and I tend sometimes to be a bit of an
extremist, but I’d say you could see a change in ideology
[within Bär] from around 1998, and a change in practice
from around 2002,” he says. 1998 was when Gerd Bär’s
son Tobias began to be involved in the strategy of the company.
He became joint managing director in 2002. “Initially
he was given certain areas of responsibility,” explains
Gerd Bär. “He then extended his range until he took over
everything last year.”
Tobias Bär has helped the company produce products
that are competitive throughout Europe, says his father. In
the past, the company concentrated on the German-speaking
world, but now its Web site is in seven languages. Subsidiaries
in the Czech Republic and Poland have a been a
big success, and the Russian market seems to be booming.
It is planning to increase production from 11,900 units in
10 Haldex Dynamix 1/2007
The plug-and-play electrical interface is offered as
standard.
2006 to 13,800 this year. Petermann says that this is only
partly due to the company’s growth: “We are dependent
also on the level of the economy, and the current growth is
helping us a lot,” he says.
“We orient our work towards the standards of the vehicle
manufacturers,” says Gerd Bär. “We have the same understanding
of logistics and quality as they do. A lift is an integral
part of a vehicle. It may represent a small proportion of
the value, but if it fails, the vehicle can’t be used. We take
that responsibility very seriously.” �
www.haldex.com

AFTER COMPLETING HIS MBA at the University of
Lund, Anders Loggert joined Haldex aged 29, as a fi nancial
controller at sab Automotive and was there for four years
before he switched to sales in 1978. “I got fed up with the
balance sheet,” he smiles. “I wanted to do something else
and I become sales manager for Scandinavia, Eastern
Europe, Benelux and South America as well as handling
inside sales in Landskrona.”
In 1983, he moved to Blue Springs, Missouri, where he
took up the position of general manager. “It was a kind
of start-up position,” Loggert explains. “Production of the
automatic brake adjuster had only just begun in the US
when I moved there, and we were still in the red. The product
hadn’t really been accepted yet so we had to do a real
sales job,” he says. “But by not cutting corners and making
sure the quality of the product was consistent with European
standards, we won through, and other companies
couldn’t compete.”
In 1991, Loggert moved to Berching in Germany to
run Schabmuller GmbH, an electrical dc motor plant
acquired to compliment Haldex’s hydraulic applications.
“This was probably my most challenging and diffi cult time
with the company,” says Loggert. “The deal happened just
months before the turnaround in the Communist bloc
which instantly opened up new competition. We ran into
problems and had to cut staff from 500 to 250”, says Loggert.
“Those were very tough years and I learned a lot but it
wasn’t much fun,” he says, ruefully.
Working in so many different areas, including three
out of Haldex’s four divisions has given Loggert a good
overview of the entire group. But, he says, company operations
were always consistent across the board. “That’s one
of its great strengths,” Loggert opines. “And it means the
quality of our products and our message to customers is
always consistent,” he adds. “Of course, there are variations
depending on local cultures, but we’ve always had good
bosses who put people fi rst.”
Loggert believes that having a strong core product was
one of the drivers to the good relationships within the
company. The automatic brake adjuster was introduced in
1967 and didn’t show black fi gures until 10 years later. But,
says Loggert, the owners had such patience and faith in the
product and the workers that they took the necessary time
to turn it into one of Sweden’s success stories.
By early 1995, Loggert was back in Stockholm and
engaged in Group Business Development, with the main
task of setting up the Group in Asia. That was when the
Korean and Chinese sales offi ces were set up and local
potential customer penetration started. “That was one of
the tasks I most enjoyed,” says Loggert. “I was one of our
fi rst people in China and soon our operations there will
rival Europe,” he adds proudly.
In 1998, Loggert was offered the position of European
sales manager for the Brake Systems division. He moved to
his present position in 2005.
“I’m very lucky to have been able to work all over the
world,” Loggert refl ects. “It has taught me that even if you
don’t speak the same language or if you have a different
skin color, underneath it all, people fundamentally want
the same out of life. And that applies to our customers
too, which has shown me the importance of being consistent.”
�
�Haldex
People
“The quality of our products
is always consistent”
Currently head of sales and marketing for Commercial Vehicle Systems (CVS) based in
Strasbourg, Anders Loggert has had a long and varied career with Haldex. He looks back
at the ups and downs of the past 33 years with the company.
Text Anna MacQueen Photo Alastair Millar
Name: Anders Loggert
Age: 62 years old
Lives: in Alsace, France.
I’m married and we
have one daughter and
two grandchildren.
Working for Haldex for
33 years and married
for 36 – I’m kind of a
boring guy!
Education: I have an
MBA from the University
of Lund. I never really
liked school. Some
people say school was
the best time of their
life but I’ve enjoyed
work more.
Hobbies: I play a little
golf and I like messing
around with cars and
BMWs in particular.
Motto: Never give up!
Historical figure you
most admire: Mikhail
Gorbachev.
What is your one
regret: Giving up my
French lessons!
www.haldex.com 1/2007 Haldex Dynamix 11

Double disc,
double perform
Haldex and SKF from Sweden have jointly developed an advanced wheel end for commercial
vehicles. Its typical features include a fixed caliper brake with two discs and the compact
SKF hub unit. Text Michael Kern Photos Haldex, Gigant
12 Haldex Dynamix 1/2007 www.haldex.com

ance
www.haldex.com
Closing the gap in stopping distance
requires a better bite in truck brakes.
DISC BRAKES have a fairly long history
in cars. But in commercial vehicles,
especially in heavy trucks, this
type of brake has been used only for a
relatively short period of time. That’s
due to the fact that hydraulics are
not really a practical power transmission
medium for the brakes of such
vehicles, which typically weigh about
40 tonnes. And it was not until the
mid 90s that purely pneumatic brakes
reached the level of maturity required
for fi eld operation. Manufacturers Scania
and Mercedes were the pioneers, and it took
about ten more years before the last European
truck builder switched over to disc brakes.
Today the standard both in trucks and trailers
is sliding caliper brakes with one brake disc
each. But there’s still plenty of room for technological
advancement. After all, the wheel ends
have to meet the same expectations as the truck
as a whole. Today, more than ever, the trend is
towards increased effi ciency with reduced weight
and lower costs. Haldex’ Development Engineer
Joakim Gripemark explains what this means
with regard to brake clamping forces – in other
words, the “bite” of the brakes: “We expect that
clamping forces of up to 35 kNm will be required
in future, compared to some 27 kNm today.”
From a technical point of view, it would be no
problem to make today’s sliding caliper brakes
fi t for such fi erce forces. But due to the required
reinforcements, the result would be a roly-poly
that would be diffi cult to incorporate in the available
installation space – especially at the front
axle where space is extremely restricted. So it
was a logical step for Haldex to undertake the
design of a fi xed caliper with dual discs. Thanks
to the fi xed caliper, the entire unit is no wider
than the sliding caliper brakes used today. A support
is not required.
Development began in the year 2000 and
immediately looked very promising. So the idea
started to form in the minds of the engineers
to do it thoroughly and completely to be able to
develop an entire wheel end. At this stage, skf
became involved as an extremely experienced
hub bearing unit manufacturer and contributed
�Expertise
The new fixed caliper dual disc brake reduces
life cycle costs to a considerable extent.
with a tailor-made integrated slim-line hub
unit. Designed for one million kilometres of
maintenance-free operation, it boasts a decisive
advantage: When the discs are worn down, they
can easily be drawn off the axles as soon as the
wheel fl ange has been dismounted and the locking
device opened.
IT’S NOT WITHOUT REASON that skf was
selected as a partner. The company took up
series manufacture of compact truck hub units
in 1990. Having produced more than fi ve million
such units to date, skf is the most experienced
manufacturer worldwide in this fi eld.
But let’s take a detailed look at the so-called
“ModulD” solution developed in cooperation
with Haldex. The hub unit is of extremely slim
design and offers precisely adjusted interplay
between the bearing, grease and seals. It has
been designed for a service life of one million
kilometres. Conception of the unit was assisted
by sophisticated calculation programs that made
it possible to anticipate fi eld conditions at the
laboratory stage. During fi eld tests, the impressive
expected life of one million kilometers was
�
proven to be achievable.
1/2007 Haldex Dynamix 13

�Expertise
“ From a technical point of view, it would be no problem to make
today’s sliding caliper brakes fit for such fierce forces. But due to the
required reinforcements, the result would be a roly-poly that would
be difficult to incorporate in the available installation space.”
� Five ingeniously positioned springs ensure
that the disc virtually floats on the wheel end.
The technicians used all their wiles when it
came to the attachment of the brake: The disc
is positioned on the toothwork of the integrated
hub, interlocked. Here fi ve ingeniously designed
springs permit lateral displacement, to ensure
wear compensation and clearance. They also
ensure that the contact between hub and disc
does not become too close as to avoid excessive
heat dissipation in the hub: The disc virtually
fl oats on the hub and, as a consequence, noise
development is exemplarily low. The fact that
the thermal stress on the hub is kept as low as
possible is vital for long hub life and at the same
time means less strain on the tyres.
ANOTHER ADVANTAGE of this ensemble is
that the pads can be easily replaced from overhead
without having to dismount the wheel
fl ange or other components.
Both the dual disc and the triple brake pads
are being developed to last some 500,000 kilometres
or more. So the replacement of pads and
discs coincide and, the brake maintenance time
for a trailer is now about six hours.
Fitted with the new hub and offering today’s
usual clamping force, “the skf-Haldex wheel end
weighs about 15 percent less than current conventional
solutions,” emphasizes Andreas Richter,
Vice President Marketing of Haldex Brake
14 Haldex Dynamix 1/2007 www.haldex.com

Products in Landskrona
(Sweden), and adds.
“After all, this is up to 25
kilograms per axle.”
But the new brake
concept offers even
more advantages.
Thanks to its consistent
modular design, the
new wheel end is a model
example of adaptability. This
characteristic permits not only
a wide range of different specifi -
cations but also at the same time,
retrofi t potential. “It is important
that the customer can use the old axle
and its journal,” Matthias J. Haupt, Vice
President Marketing of skf’s Business
Unit Trucks, explains the concept.
The brake itself is extremely versatile too. For
all 22,5” wheels, Haldex uses 21” brakes which
saves more than 75 kilograms per triple-axle suspension.
However, within the Haldex modular
concept, a fi xed caliper brake, with the same pad
and disc replacement intervals, could also be
used for 19,5” wheels. This variant is attractive
� Testing of the disc brake.
� The SKF-Haldex wheel end, combining
the two companies’ experience in disc brake
design and compact truck hub units.
www.haldex.com
for all those who pay special attention to weight:
“Compared to conventional 22.5-inch wheel
ends, it reduces the weight per axle by as much
as 35 kilograms,” Joakim Gripemark, product
development, points out.
But the Haldex-skf system is also suitable for
heavier clamping forces. With more of a solid
design (and thus a bit more weight) and fi tted
with a 22-inch (430 mm) disc, the fi xed calliper
dual disc brake is well prepared for clamping
forces of up to 35 kNm that will undoubtedly be
required some time in the future. “The capacity
of sliding caliper brakes is suffi cient for up to 30
kNm,” Gripemark is convinced, “but if you need
35 kNm, then there’s not enough space available
for sliding caliper brakes.“
FIELD TESTS WITH THE NEW WHEEL end
are in full swing both in Europe and in the
United States, not only in trailers but also in
truck front axles. Here, in particular, such a
space-saving slim design is likely to meet with
high demand, at least when the independent
wheel suspension for the steering axle becomes
involved. “In 2006, we concluded the devel-
The new SKF hub
unit has been
designed for a lifetime
of one million
maintenance-free
kilometres.
opment stage,” Andreas Richter outlines the
history of the new fi xed caliper brake that is
now ready for serial delivery. It is the German
axle manufacturer Gigant who introduced the
brake at the Solutrans trade fair in Lyon in April
2007.�
1/2007 Haldex Dynamix 15

�Features
& Friends
16 Haldex Dynamix 1/2007
Text R.F. Mamoowala
Photo R.F. Mamoowala and INA Agency Press
Indian business
in overdrive
With India making the use of automatic
brake adjusters mandatory for
commercial vehicles, Haldex India is
pushing annual production towards
1 million.
THE MOOD IS UPBEAT at the Lounge of the Leela
Kimpinski Hotel in Bombay, where the Haldex delegation
awaits the arrival of Jay C. Longbottom, executive vice
president of the Haldex Commercial Vehicle Systems (cvs).
Longbottom has fl own in early that morning from the
United States.
The commercial vehicles segment of Haldex India is
about to explode. It grew at 25 percent in 2006, and now,
with India’s Mandatory Automatic Brake Adjusters legislation
going into effect for all commercial vehicles starting
April 1, 2007, the sky’s the limit.
Explaining the importance of this landmark legislation in
road safety, Ganesh R. Pai, coo of Haldex India (a joint venture
of the Anand Group and Haldex formed in 1998), says
the manual adjusters that were previously used required
periodic adjustment of the gap between the brake liner and
the drum and were vulnerable to human error. “Automatic
brake adjusters [abas] take care of this problem,” he says,
“making braking smoother and safer and reducing braking
distance as well as maintenance time and cost.”
Haldex India has already begun supplying self-setting
abas to customers such as Tata Motors and Ashok Leyland.
It started assembling s-abas in India in 2004 and has been
producing from 1,000 to 2,000 pieces a month. With the
new legislation, says Longbottom, who has just joined our
little group for the interview, “We are pushing production
towards a level of 1 million adjustors a year.
“This is an exciting time in the commercial vehicle segment
in India, with expansion in production, a strong economy
and greater focus on safety in commercial vehicles,
an area we are particularly concerned with,” Longbottom
www.haldex.com

Jay Longbottom (left)
and Ganesh Pai enjoy
their close cooperation.
says. He sees a great synergy between the Anand Group,
(“a longstanding, successful group in the automotive and
commercial vehicles segment, and our partner in India”)
and Haldex, with its long tradition in vehicles and vehicle
dynamics. “It’s exciting to work together to bring the best
products to the Indian market,” he says.
Pai is confi dent the new legislation will get maximum
compliance. With Indian traffi c planners working to
improve road safety, commuters demanding more comfort
and safety and keen competition among auto manufacturers
to deliver vehicles of superior quality, vehicle component
manufacturers will have to gear up to keep the supply
chain going and meet the market demand. “We are confi -
dent of doing that,” he says.
Pai comments that Anand is a “professionally run organisation
that highly respects all its collaborators. Haldex is
a globally known brand in the commercial segment, and it
has brought the latest technology to the joint venture.”
In addition to high-quality products, Longbottom says,
“Haldex has a long history of safety that drives a very strong
demand for our products. We see this legislation as a landmark
and a strong development for our business. Apart
from India, the Korean, Chinese and European markets
are growing very quickly. This is one of the busiest periods
we’ve had, and all our factories are running at full capacity.”
Pai says the challenge will be maintaining the supply
chain in the coming days. “We are growing at an exponentially
high rate, changing from one product to another very
rapidly,” he says. “But we have a very good cooperation
[with the parent company] – one phone call and an entire
team from Sweden and the us comes here, proving that
India is an important market for them.”
Investments in Haldex’s Indian production are expected
to exceed 3 million us dollars, says Longbottom.
“As the pace of infrastructure and technology development
gathers steam, we’re stepping up production of abas,”
he says. “We have other products too that will contribute
tremendously to vehicle performance, vehicle dynamics
and safety, and we look forward to introducing those on the
Indian market as well.” �
‘‘ ’’
Towards a safer, smoother ride
It’s exciting to work together
to bring the best products to the
Indian market.
The great mix of vehicles on Indian roads — bicycles, motorized two-wheelers,
trucks, vans, buses, cars, hand-pulled carts and commercial three-wheelers
— constantly challenges even the most skilled of drivers. On many busy roads,
the cacophony of sound from racing engines, impatient honking and screeching
brakes can give travelers a splitting headache.
But robust economic development — upward of 9 percent in the first quarter
of 2007 — and cheap bank loans have electrified the automobile industry and
brought new vehicle purchases within the reach of the huge Indian middle class.
Efforts are now focused on widening roads, constructing overpasses, smoothing
traffic flow, controlling emissions and improving road safety. More and more
billboards on road safety line the highways to educate road users on ways to
reduce accidents.
The Mandatory Automatic Brake Adjusters legislation, which makes compulsory
the use of ABAs for commercial vehicles, is one such attempt to ensure
smoother, more efficient and quicker braking. “A lot of things are happening,”
says Magnus Bergström, senior vice president of Haldex’s Commercial Vehicle
Systems Division in Sweden. “India is building a lot of roads, and now there is
this legislation, which I think is very positive for road safety and better traffic
management.”
For Jay Longbottom, executive vice president of the Haldex Commercial
Vehicle Systems (CVS) and a periodic visitor to India, the improvement in India’s
road system is very visible. “The long struggle to upgrade the quality and safety
of components in commercial vehicles is slowly bearing fruit,” he says.
Longbottom also sees the beneficial effects of improved vehicle technology
on the environment. “In our product line we concentrate on noise reduction and
safety,” he says. “Within the Haldex group we have a number of products directly
related to the environment. Haldex is very conscious of environmental and safety
issues.”
www.haldex.com 1/2007 Haldex Dynamix 17

Riding high
on grow
As the Russian and Indian economies
surge forward, they bring into play a new
class of consumers, and global businesses
sense huge opportunities.
Text R.F. Mamoowala
Illustration Ladislav Kosa
Photo INA Agency
18 Haldex Dynamix 1/2007
Prudent macroeconomic management, a windfall
from rising oil prices and strong economic
growth over eight years – 7 percent in 2006 – have
brought Russia back into business.
At the World Economic Forum meeting in Davos, Switzerland,
in January 2007, the Russian delegation reported
that Russia’s gdp would soon overtake that of France.
In the fi rst nine months of 2006, the volume of foreign
investment in Russia increased by 55 percent, compared
with the same period in 2005, according to the annual
Global ceo Survey (of 1,100 ceos from 50 countries)
released by global accountancy fi rm PricewaterhouseCoopers.
“Russia remains the focus of great attention on
the part of investors all over the world,” the survey states.
It says also that for the fi rst time ever, in 2006 Russians
bought more foreign than domestic cars.
With highly valued natural resources, a strengthening
ruble, an educated and skilled workforce and rising wages,
the Russian economic scenario has never looked better.
Financial services, construction, retail and automotive sectors
are all booming.
“Top money spinners include groceries, beer and cars,”
says a recent editorial in The Economist, commenting on
Russia’s “demanding as well as aspirational” consumers.
The editorial points to ikea, which has spent 2.4 billion u.s.
dollars in Russia. It now has eight stores and runs eight
mega-malls.
“Russia has a potential for continued strong economic
growth due to its national resources, especially oil and gas,”
says Lennart Hammargren, Haldex sales manager for Eastern
Europe. The overall gnp growth will boost the infrastructure
sector, particularly road construction, generating
a huge demand for construction vehicles, and increased
trade with Western Europe will boost demand for long-haul
transport trucks and trailers.
As modernization of existing fl eets and improved maintenance
come into play, Hammargren says, “high-quality
products, safety issues and environmental concerns will
have a favourable impact on superior suppliers of vehicles
and components such as Haldex.”
Hammargren explains that historically Russia had
focused on domestic manufacture of all components, but,
he says, “gradually the more modern and successful manufacturers
are concentrating on their strong areas and opting
for partners/suppliers in others.”
IN 1915 GARPHYTTE BRUK – later Haldex – sensed the
potential of the Russian market early, setting up a wire
plant in Yekaterinburg in Central Russia in 1916. Two
years later it was closed because of the Russian revolution,
but Garphytte Bruk continued to serve the Russian market
from various European plants. From the mid 1990s, says
Hammargren, “sales have grown signifi cantly, and we’re
approaching the 15 million euro mark.” In 2006 Haldex
opened a sales offi ce in Moscow.
An important Haldex customer is Kamaz, the largest
Russian heavy truck manufacture. Kamaz makes 50,000
vehicles annually and plans to double this output in a
few years. As the bus and trailer markets grow, there is
www.haldex.com

th
�
www.haldex.com 1/2007 Haldex Dynamix 19

A modern shopping mall in St Petersburg.
‘‘
20 Haldex Dynamix 1/2007
potential for more business for Haldex, “but, as in most
developing markets, the balancing act between high-quality
products and low prices has to be maintained,” Hammargren
says.
The health of the Indian economy, which in the past
two quarters has seen a gdp growth above 9 percent, was
recently demonstrated by the Forbes 2007 list of billionaires.
This year, with 36 billionaires, India heads the Asian
portion of the list, ending Japan’s reign as Asian country
with the most billionaires.
India’s healthy economy is further refl ected in its vibrant
equity market, a foreign exchange reserve of usd 180 billion
and booming manufacturing and services sectors.
Young Indian professionals with hefty disposable incomes
sport fl ashy cars, snazzy mobile phones and expensive
designer wear.
Indian policymakers maintain that an annual growth
rate of 8.4 percent is sustainable until 2020, and they say
a double-digit growth rate is just around the corner. A key
projection is that India’s gdp will surpass that of the United
States before 2050.
Manufacturing, driven by increased effi ciency of privatesector
fi rms, is partly responsible for this robust growth.
“Restructuring has made India’s private sector leaner, fi tter,
and more productive,” says a Goldman Sachs report,
India’s Rising Growth Potential (Jan. 22, 2007).
As manufacturing gathers pace, the construction and
automotive industries will benefi t. More investment in
highways will, according to the report, “reduce travel times
by half, lower fuel costs and freight delivery times and
enable fi rms to leverage economies of scale, help ease congestion
in cities and attract activity. Most importantly, the
highways will open up … the closed worlds of India’s villages,”
further boosting the economy.
IN ITS ECONOMIC SURVEY 2006–07, the Indian government
calls the auto sector, which has grown at 16 percent
since 2001, a key sector in the economy. “Automobile
exports crossed the usd 1 billion mark in 2003–04 and
increased to usd 2.28 billion in 2005–06,” the paper says,
and urges the auto sector to “keep innovating and upgrading”
to remain globally competitive.
For Haldex India, the environment couldn’t be better,
says coo Ganesh R. Pai. “As the infrastructure sector develops,
the auto industry is registering a good growth rate,”
he says. “The commercial vehicle sector is growing at more
An important Haldex customer is Kamaz, the largest Russian heavy truck manufacture.
Kamaz makes 50,000 vehicles annually and plans to double this output in a few years.
www.haldex.com
‘

‘
This year, with 36 billionaires,
India heads the Asian portion
’’
of the
list, ending Japan’s reign as Asian
country with the most billionaires.
than 20 percent and will continue to remain buoyant.”
Haldex India produces manual brake adjusters for
both the domestic and export markets. As of April
2007 an Indian law makes it mandatory for all
commercial vehicles with air brakes to change from
manual to automatic brake adjusters (abas). “Internationally
Haldex is a major player in supplying
abas,” says Pai. “In India, too, we supply abas
to both Ashok Leyland and Tata Motors. This
product, which we make in India, is technically
sound and requires less maintenance. The new
law will expand the market, and we are gearing
up for much higher numbers with a big expansion
plan.”
Haldex India also makes ConSep (condensercum-separator)
for the domestic auto market, with
buy-back arrangements with Haldex.
According to a recent study done by MasterCard
International, the size of the mass affl uent market
(household income of usd 7,500–50,000) in India
was 5.2 million households in 2005. MasterCard
International’s chief economic adviser, Yuwa Hedrick-Wong,
estimates that this number will double
to 10.5 million households by 2015, with an average
income of usd 11,912. Indians will become avid consumers,
spending a total of 51.3 billion on everything
from shopping to dining and entertainment, travel
and leisure, private health and luxury medicine
and automobiles, pcs, mobile phones and the like.
“Global businesses will ignore the Indian market
only at their peril,” he says. �
5,2 million Indian households can afford a beautifully decorated home.
Risk … and reward
Businesses can win in new markets if they keep one eye
on potential risks, and the other on the unique opportunities
and advantages on offer, says Haldex’s Eastern
Europe Sales Manager Lennart Hammargren. As in any
new markets, there is political risk in Russia, he says,
but as Russia improves its relations with the rest of the
world, this is diminishing. “Also,” he says, “to be successful,
a company’s presence must be established. A large
territory like Russia, with many time zones, requires a
local presence.”
Another challenge is to find the right employees in a
market with high attrition rates. “Haldex typically likes to
develop and educate its employees over a long period,”
he says.
Haldex India’s Ganesh Pai says that while India’s stable
political environment is a huge plus, businesses must
be sensitive to cultural issues. In India, he says, “people
management” is most important. “Trained manpower
availability is excellent,” Pai says, “and India is becoming
the resource country for everybody. Those who can
manage this skilled resource well will be the winners.”
But income inequality and growing rural-urban and
educated-uneducated divides may well cause problems.
Failure to provide a more inclusive growth may result in
social tension and political pressure to slow down the
reform process. “If managed badly, this has the potential
to kill the golden goose of growht,” is the sober warning
in Goldman Sachs’ “India’s Rising Growth Potential’ (Jan.
22, 2007).
www.haldex.com 1/2007 Haldex Dynamix 21

�News
A stronger presence
Improves service for customers in China
Haldex has acquired Runguang Hydraulics, one of the leading suppliers
of hydraulics products to the Chinese construction machinery industry.
A NEWLY FORMED COMPANY,
Haldex Hydraulics (Qingzhou) Co.
Ltd, has taken over the employees
and most of the assets of
Runguang Hydraulics. Haldex
Hydraulics (Qingzhou) will
produce hydraulic pumps,
valves and cylinders, mainly
for use in different types
of construction machinery
such as wheel loaders and
excavators. The company will
have 1,200 employees, with largely vertically
integrated production. The prospects for future
growth are considered to be favorable.
The transaction will enable the Haldex
Group’s hydraulics division to benefi t from Runguang’s
40 years of experience in the Chinese
mobile hydraulics market, and to become one of
the leading suppliers of hydraulic pumps, valves
and cylinders to Chinese construction machinery
manufacturers. The acquisition will also
give Haldex access to the products that are currently
being used in China. As market demand
for improved technical solutions grows, Haldex
will be able to phase in its own technology and
expand in terms of both product line and applications.
The Haldex Hydraulics (Qingzhou) operations
is sited at new plant facilities in Qingzhou, in
the Shandong province. Sales and the recently
launched production of hydraulic power systems
at one of the two new Haldex-owned plants in
Suzhou has been coordinated with the new coowned
company.
“This cooperation with Runguang Hydraulics
will enable Haldex to benefi t from their
stable relations with Chinese customers and
strengthen Haldex’s market position in China.
Because the production base is already in place,
we will also quickly be able to serve our international
customers in the Chinese market,”says
Haldex President and Group ceo Joakim
Olsson. �
22 Haldex Dynamix 1/2007 www.haldex.com
Photo Victor Brott

Just in time
– the Toyota way
�Features
& Friends
Japan’s Toyota created a revolutionary production system based on the elimination of waste. It
changed the face of auto manufacturing — and manufacturing in general, writes Christer Karlsson,
Professor Innovation and Operations Management at Copenhagen Business School.
IN THE AFTERMATH OF WORLD WAR II, Toyoda Eiji, a
nephew of Toyota founder Toyoda Sakichi, traveled to the
United States to study car production at gm, Ford and amc
(American Motor Corporation). In a letter back to his uncle,
he wrote:
“The production system here is incredibly impressive,
but unfortunately impossible for us to do, since we lack
both the raw material and the energy needed for this production
method.”
In response, Taiichi Ohno, a production engineer at
Toyota, developed a system, called the “Toyota Production
System” or simply “Lean Production,” in which the central
idea was that everything being produced had to add value
to the product or to the customer. A process called “waste
elimination” was introduced, where eight different types of
“waste” – muda in Japanese – were identifi ed (see sidebar)
and eliminated.
The strategy was very simple. To begin with, workers
were educated in the production process for nine to 10
weeks (at the Ford factory in the u.s., in contrast, workers
In 1994 Christer Karls-
received one week of training). When the workers had sufson
was appointed
fi cient knowledge of the production process, Ohno asked
Professor in the field of
them to participate in an experiment: If they found them-
Innovation and Operaselves
not adding value to the production, they were to raise
‘‘
tions Management at
their hand. He then focused on eliminating the muda in the
the Stockholm School
area with the largest number of raised hands. Sometime
of Economics. Since
later, the test was performed again, and new bottlenecks
2004 he is Dean CBS
were found and eliminated. The process was repeated a
Executive and Profes-
number of times and eventually a phenomenon appeared,
sor Innovation, Copen-
later referred to as “Continuous Improvement,” where
The production system here
hagen Business School.
everyone involved in production began eliminating mudas
as they appeared.
is incredibly impressive, but unfortu-
The eight types of
One muda to be eliminated was storage and buffers in
muda, sources of
nately impossible for us to do, since
all areas of production. Having reduced these to a minimal
waste, in the produc- level, the concept of “just in time” was created, whereby any we lack
’’
both the raw material and the
tion process:
item at any point in the production process arrived just in
1. Overproduction time – neither too early nor too late.
energy needed for this production
2. Waiting
While the Toyota production system uses a slightly
3. Transportation
method.
larger workforce and more machinery than the traditional
4. Labor
Western model, the emphasis is on throughput: moving
5. Inventory
products through the production chain without mistakes
6. Motion
or defects as quickly as possible. Although the cost for this
7. Defective parts is slightly higher, the overall effect is that the cost for assets
8. System
is kept to a minimum, resulting in a signifi cantly higher
return on capital. �
www.haldex.com 1/2007 Haldex Dynamix 23

On the cutting
“ Our efforts at the Service Centers are focused on the
core principles of the Haldex way: Customer First,
Respect for the Individual and Elimination of Waste.”
24 Haldex Dynamix 1/2007 www.haldex.com

edge of relining
Relining brakes has become a high-tech science at Haldex’s
brake shoe relining plant in Grand Rapids, Michigan. The operation
is geared to and driven by what the customer is ordering.
WALK IN THE MAIN ENTRANCE of the Haldex
brake shoe relining plant in Grand Rapids,
Michigan, turn right past the time clock, walk 50
feet, and you’ll step into the future of the dynamic
brake relining industry. Behind you is the older
portion of the plant, with dim lights, a stained
concrete fl oor and a look that is less than modern.
Ahead is the year-old 6,000-square-foot addition.
Bright and clean, with freshly painted walls, it
has a modern, almost cheery, scrubbed look that
belies the gritty nature of the work done here.
This plant, in the heart of America’s Midwest,
is the model for all 12 of the Haldex Commercial
Vehicle Systems’ Service Centers in North
America. Worn and damaged brake shoes from
big trucks and other heavy-duty vehicles come
into the Service Center, where, using increasingly
sophisticated equipment, employees
refurbish and reline the brake shoe cores, sending
them back out into service. And just as the
brakes are being remanufactured, the Haldex
plants themselves are being reconditioned into
modern, advanced facilities.
Roger See examines each core as he removes them from the paint
line.
www.haldex.com
Text and photos Dwight Cendrowski
“It’s a dynamic industry, and you’ve got to be
nimble,” says Brian Cordle, Haldex sales and
marketing manager. More and more competitors
are springing up worldwide, from Asia to Mexico
to South America. “We’re making sure we do a
good job communicating with our customers,”
he says.
That’s what’s happening at the Grand Rapids
shop. Service manager Chuck Zimmer points
with obvious pride to the bright, new relining
space as he ticks off the reasons Haldex is a
tough competitor: unmatched service and quick
response to customer orders, the most reliable
brake linings (made by Haldex in Prattville, Alabama)
and an unfl agging devotion to quality in
every step of the manufacturing process. As an
example, Zimmer points a basin where newly
processed brake shoe cores are dipped in a paint
and rust inhibitor. To keep the active ingredients
evenly suspended, he says, “the paint is stirred
seven days a week, 24 hours a day, and new paint
is stirred for eight hours before it’s added.”
Haldex has the relining process down to a
�Expertise
science, and newer facilities, streamlined workfl
ow and advanced technologies are kicking the
process into the higher gear demanded by the
increasingly worldwide competition. Helmut
Derra is Haldex’s director of friction remanufacturing
in North America. “Globalization of
the supply chain has made the market much
more competitive in the past couple years,” says
Derra. “Our efforts at the Service Centers are
focused on the core principles of the Haldex way:
Customer First, Respect for the Individual and
Elimination of Waste.” The Grand Rapids plant
showcases that determination.
THE EXTRA OPEN SPACE HERE provides
for the ebb and fl ow of customer orders. When
spring comes to the Midwest and orders spike,
the extra space and capability is there to absorb
the work without a hiccup. “It allows us to run a
smooth fl ow and do the quality checks needed to
ensure that we have top-quality parts going out,”
says Zimmer.
“Quality” is a word that surfaces again and
again. From the beginning to the end of the process,
quality checks are stressed. The operation
is geared to and driven by what the customer is
ordering. On average, more than 10 percent of
brake shoe cores that come in don’t pass muster
and are discarded.
One examples of cutting-edge technology
A special paint with rust inhibitor assures uniform coverage and corrosion
resistance.
1/2007 Haldex Dynamix 25

�Expertise
“ The paint is
stirred seven days
a week, 24 hours a
day, and new paint
is stirred for eight
hours before it’s
added.”
Chuck Zimmer
used by Haldex is the deliner. The computercontrolled
machine uses laser technology to automatically
remove the rivets and old linings in far
less time than older mechanical methods, thereby
increasing effi ciency. And when the brake shoe
core is freshly painted and dried, a new hydraulic
riveter applies high pressure to assure a longlasting,
foolproof adhesion. Attention to detail in
every step of the process focuses on added value.
Says Derra, “Our customers won’t pay for nonvalue
add in our processes.”
There’s no getting around the fact that
machining brake cores in this process can be a
dirty business. But here Haldex has moved to
assure a high-quality outcome by keeping the
plant clean and free of dust. “If you had seen our
shop before, it was dusty and dingy,” says Zimmer.
“So we added a ducting system that goes
to each machine and draws away the dust as it’s
being created. When you’re running a cleaner
environment, the parts you’re sending out are
cleaner.” And that’s better for both plant workers
and customers.
Walk the plant, and you’ll evidence of
improvements everywhere. Bright halogen
lighting gives the area a vibrant, even optimistic
feel – not what you’d normally associate with a
remanufacturing operation. New, easy-to-clean
epoxy fl oors replace the old cement fl ooring that
held dirt. Each work area now also has a vacuum
system to let employees clean their areas and get
to those hard-to-reach places, much like a wholehouse
vacuum system you’d fi nd in newer,
upscale homes. Even what seems like a simple
rearrangement of materials around the riveting
station increases effi ciency, meaning less traveling
for the operator and quicker response
time for urgent orders. Director Helmut
Derra’s goal is for what he calls a
nascar race shop look: “clean, well-lit, almost
a lab environment.
“At the end of the day, we want facilities we
can be proud of,” he says.
Haldex has a 45-person sales force that tends
to customers across North America. Chuck Zimmer
regularly accompanies sales people on client
visits throughout the upper Midwest, troubleshooting
and educating them on methods and
materials. Says Derra, “We’re regarded as being
the top sales force in the industry. We’re not just
taking orders. It’s quality. It’s responsiveness.
It’s delivering performance.” These traits are
necessary to go head-to-head with the competition
in this tough, gritty business. With innovation
in products, processes and facilities, Haldex
is determined to provide relined brakes that lead
the industry in durability and long, worry-free
operation. �
Remanufacturing
start to finish
The Haldex Commercial Vehicle Systems
division provides brake relining services
for vehicles that are class 6 and up. These
are the big rigs of more than 25,000
pounds. All the linings are made by Haldex
to rigid specifications in their plant in Prattville,
Alabama, in the United States. As in
all Haldex’s U.S. plants, the Grand Rapids
facility follows a tried and true workflow.
Worn brake shoes come into the plant and
are immediately inspected to weed out
obviously deformed and defective cores.
They are then run through a high-temperature
washer to remove oil and road residue.
Another inspection includes a test for
“stretch,” or an unacceptable bend in the
radius of the brake shoe. Next comes the
computer-controlled deliner, where rivets
and old linings are removed. Then there is
one more inspection before going into the
blaster, where tiny steel shot pellets scrub
the metal. Near the end of the process, the
cores are immersed in a specially formulated
paint and run through an oven to dry.
Finally, friction material (of the customer’s
choosing) is securely riveted to the core,
using a new, precision hydraulic riveting
machine. It is inspected once again before
boxing and shipping. Haldex has the flexibility
to handle orders of less than 100 or
more than 1,000.
26 Haldex Dynamix 1/2007 www.haldex.com

With an eye for detail, Mike
Westra loads a brake shoe
into the deliner machine.
www.haldex.com
Dale Systma is confident
that the parts he rivets are
of top quality.
Left to right; Chuck Zimmer,
Scott Busbee, Roger See,
Mike Westra, Dale Systma
and John Trestrail make up
more than 60 years of relining
experience.
1/2007 Haldex Dynamix 27

Intelligence for All Wheel Drive
www.haldex-traction.com