notes to consolidated financial statements - Timken

transforming
"The actions we are taking in this transformation process
rank among the most far-reaching in our history, and they will
provide the impetus for a second century of success."
6
– James W. Griffith, President and COO
Creating focused factories. Reducing fixed assets.
Increasing alliances with experts around the world,
even competitors. These are just a few of the
components of Timken’s new manufacturing strategy
that is essential to the company’s transformation.
And what do we expect to achieve? A more efficient
and low-cost manufacturing base that will support our
expansion into new areas – and help us to do what we
do best. That is, creating products and services that
bring value to our customers in ways our competitors
cannot match.
Timken recently used one of its differentiated
products in DaimlerChrysler’s 2002 Chrysler PT
Cruiser. In three weeks, Timken associates in engineering,
product development and sales and
marketing had developed a custom wheel bearing
prototype that would fit into the existing front wheel
casings. A specially designed Timken ® UNIPAC bearing (a two-row tapered roller bearing package)
was created for the vehicle. The PT Cruiser’s transmission
also is equipped with six Timken ® tapered
roller bearings and five Timken ® precision steel
components.
for growth and global
Leadership
In fact, we have 12 major automotive wheel-end
programs in the pipeline from 2001 through 2004 – all
providing differentiated, value-added products to
maximize performance in each application and adding
about $200 million in new sales over the next five
years. Exciting programs, such as General Motors
light trucks that have the Quadrasteer four-wheel
steering system, use our Generation II bearing package.
In addition, Dodge Ram 1500 series 4x4 and
4x2 vehicles contain the new Timken ® Generation III
integrated bearing package, which incorporates the
bearing into the wheel hub. Both of these advanced
wheel bearing systems improve vehicle maneuverability
and increase fuel efficiency.
Internationally, our automotive customers are
demanding more local sources of supply, and we’re
responding. In 2001, Timken reached an agreement
with NSK Ltd. – a major producer of tapered roller
bearings in Japan – to jointly supply tapered roller
bearing products and services to Toyota Motor
Corporation facilities
throughout the
world.