Tenneco Automotive Inc. (ticker: TEN, exchange: New York Stock Exchange) News Release
March 13, 2001
SKF, TENNECO AUTOMOTIVE, TRW AND VALEO TO ENGAGE IN PLANS TO PROVIDE ENHANCED AUTOMOTIVE AFTERMARKET SERVICES IN EUROPE
Brussels, March 13, 2001 --- SKF, Tenneco Automotive, TRW and Valeo have signed a memorandum of understanding relating to the development of plans for a strategic alliance for the provision of enhanced services for their European automotive aftermarket customers.
The companies will now undertake detailed studies of opportunities to share skills and resources and to improve overall performance and efficiency. The focus of the planned alliance will be on training and technical support services and logistics - particularly in the area of transportation.
The organisations are looking to provide additional and improved commercial offerings to their customers, pulling together their skills and expertise in training and technical support using traditional initiatives and exploring the potential application of new media technologies. The joint skills of the parties could enable them to put together a comprehensive package that would cover most of the needs of the automotive aftermarket industry, now and in the future.
Another area of joint review will be physical logistics, in particular, potential synergies in transportation to customers. The objective is to improve logistics services to customers in the most cost effective way.
The four companies will continue as independent and separate entities in both original equipment and the aftermarket. Each will retain its own product brands, product programmes, channels of distribution and commercial activities. Each company anticipates that there will be no impact on the involvement in any existing partnerships or initiatives.
The focus of the proposed alliance between the companies is the European automotive aftermarket. Formation of any alliance between the companies, based upon the above projects, will depend on the results of the joint review and the parties' negotiations and be subject to customary conditions such as receipt of necessary government approvals.
SKF is the leading global supplier of products, customer solutions and services in the rolling bearing and seals business. The Group's competencies include business areas such as technical support, maintenance services, condition monitoring and training. The Group's sales were some 40 billion SEK for the year 2000.
With its own sales companies in 50 countries, supported by some 7 000 distributors and dealers worldwide, its e-business market place and global distribution system, SKF is always close to its customers for the supply of both products and services.
Tenneco Automotive is a $3.5 billion manufacturing company headquartered in Lake Forest, Ill., with 23,000 employees worldwide. Tenneco Automotive is one of the world's largest producers and marketers of ride control and exhaust systems and products, which are sold under the Monroe® and Walker® global brand names.
TRW's aftermarket business is part of TRW Chassis Systems, a world leader in braking and steering and suspension systems and engine components. TRW Inc. (NYSE: TRW) provides advanced technology products and services to the automotive, aerospace and information technology markets.
Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks, and ranks amongst the world's top automotive suppliers. The Group has 189 plants, 45 R&D centres, 10 distribution centres and employs 76,000 people in 29 countries worldwide.
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This press release contains forward-looking statements regarding certain of the company's strategies with respect to the European aftermarket. Words such as "plans", "will", "looking to" and similar expressions identify these forward-looking statements. These forward-looking statements are based on the current expectations of the company (including its subsidiaries). Because these forward-looking statements involve risks and uncertainties, the company's plans, actions and actual results could differ materially. Among the factors that could cause these plans, actions and results to differ materially from current expectations are: (i) the general political, economic and competitive conditions in markets and countries where the company and its subsidiaries operate, including currency fluctuations and other risks associated with operating in foreign countries; (ii) governmental actions, including the ability to receive regulatory approvals and the timing of such approvals; (iii) the results of the company's review and analysis of the opportunities to provide enhanced services for European aftermarket customers; (iv) the company's ability to execute strategic plans and to realize anticipated benefits from these plans; (v)further changes in the distribution channels for the company's aftermarket products; and (vi) the timing and occurrence (or non-occurrence) of transactions and events which may be subject to circumstances beyond the control of the company and its subsidiaries. The company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.