LUDWIGSBURG, Germany (Nov. 30, 2004) — German automotive supplier Beru A.G. has won a three-year contract worth between $106 million and $133 million to supply tire-pressure monitoring systems (TPMS) for a European car maker's U.S. model range.
Beru, which is in the process of being acquired by U.S. car parts group BorgWarner Inc., declined to name the vehicle maker but in previous releases identified BMW A.G., Mercedes-Benz A.G. and Audi A.G. as customers that use Beru's direct-pressure monitoring system.
The first deliveries of the TSS Tire Safety System are planned for the middle of 2005, Beru said, before relevant U.S. legislation takes effect. The contract should contribute $20 million to $26 million in sales in the 2005/06 fiscal year. Sales of tire pressure monitoring systems in the 2003/04 financial year generated revenue of nearly $40 million, or about 8 percent of Beru's total sales.
Beru's TSS is a direct-measuring high-frequency technology that electronically measures and monitors tire pressure inside the tire. Each system has four aluminum valves, wheel electronics, high frequency antennae and a central electronic control unit, Beru said.
The latest U.S. regulations stipulate the compulsory fitting of a TPMS in at least half of all vehicles newly registered in the U.S. starting Sept. 1, 2005.
In the future, Beru said, this regulation will apply to all of the 16.5 million to 17 million vehicles sold each year in the U.S.; German car makers export about 600,000 vehicles to North America each year.