TRW.NYSE announced last week that it will be put into use at the test site in Heihe, Heilongjiang, which is the third in the world, with the exception of Sweden and the United States. It is also the largest winter test in Asia. field. So far, almost all multinational vehicle manufacturers and component manufacturers have set up test sites in the northern part of Heilongjiang and the northeast of Inner Mongolia.
As one of the world's largest parts and components companies, TRW's products focus on automotive safety. In 2008, the company’s sales amounted to US$15 billion, a substantial increase from the US$13 billion in 2007, of which the influence of the Chinese factor cannot be ignored. In the past three years, China’s share of global sales has risen from 10% to 30%.
Since the financial crisis, the shrinking North American business and booming Chinese business have become one of the reasons why TRW has spent heavily to build a test track in northeastern China.
In fact, TRW stated on May 5 that the company will implement layoffs and stop production at its two factories. It is reported that the two factories for layoffs are located in Atkins and Rogersville, Tennessee, USA. The main customers of the two factories are Chrysler. The former will cut about 165 out of 275 employees, and the latter’s 200 employees will take temporary vacations.
In the first quarter of the past, TRW suffered a huge loss globally. The company’s net loss for the first quarter was US$131 million, which was a decrease of approximately 239% compared with its profit of US$94 million in the same period of the previous year. Excluding expenses for business restructuring and machine depreciation, TRW Corporation had a total loss of US$115 million in the first quarter, compared to a profit of US$102 million in the same period of 2008.
In North America, TRW chose to lay off its staff in the face of the above losses. At the same time, taking into account the changes in the global market, the global sales scale in 2009 is estimated to be 10.1 billion to 10.5 billion US dollars, which is substantially lower than the sales of 15 billion US dollars in 2008.
In addition to North America’s more prudent and conservative policies, the only regional market in the world that maintains expansion is the Asia-Pacific region. Its CEO, Gunnig, told CBN reporters that in the next two years, TRW’s full range of products will be localized in China. From 2009 to 2010, a large number of projects will be introduced into China.
Before TRW established a test site in Heihe, Bosch had already started operations in the winter test field in Yakeshi, Inner Mongolia. As TRW's most powerful competitor in the field of automotive safety systems, Bosch is setting new standards in the industry through its ESP products.
As the inventor of the previous generation of automotive electronic control system, ABS, “TRW is working hard to fully compete with its competitors in South Korea, Malaysia, India and China in Asia.†Gonoshi said that it currently includes FAW-Volkswagen, Changan Ford and Chery has already become a customer of the winter garage.
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