Tenneco Automotive Inc. (ticker: TEN, exchange: New York Stock Exchange) News Release
July 30, 2001
TENNECO AUTOMOTIVE AND TOKICO LTD. SIGN STRATEGIC ALLIANCE AGREEMENT
Companies have already received contracts on Japan-based global vehicle platforms
LAKE FOREST, IL and TOKYO, JULY 30, 2001 - Tenneco Automotive (NYSE: TEN) and Tokico Ltd. announced today that the companies have signed a strategic alliance to market, engineer and manufacture automotive shock absorbers and suspension struts for Japanese original equipment manufacturers. The alliance covers vehicles that require Japan-based engineering and/or manufacturing support and include production outside of Japan.
The alliance will leverage the geographical presence and engineering and manufacturing strengths of each partner to serve Japan-based global platforms. As a result of the alliance, the Tenneco Automotive/Tokico team will have full marketing and engineering capabilities in the world's three largest automotive producing regions: North America, Europe and Japan. The alliance further enhances each company's offering in the global automotive market by means of its combined worldwide manufacturing base.
"We're pleased to join with Tokico in this strategic alliance that blends the complementary strengths of two leaders in ride-control engineering and technology to help meet the needs of the global automotive market," said Tim Donovan, managing director for Tenneco Automotive's international group. "Tenneco Automotive's manufacturing presence worldwide combined with Tokico's presence in Japan will better position both companies to provide high quality, technically advanced and more efficient ride control products and services for customers requiring Japan-based support."
Tokico is a supplier to the leading original equipment manufacturers in Japan, where the company operates two production facilities, and in North America where it has a major manufacturing presence as well. Tokico's strong presence in Japan and the Asia region complements Tenneco Automotive's strong presence in the Americas and Europe.
The companies have already worked together to secure business in the global ride control market. Together they have won contracts with three major Japanese original equipment manufacturers to supply shock absorbers and struts on global vehicle platforms in South Africa, India, and North America.
The strategic alliance will be directed by a global steering committee. Joint marketing and engineering teams will develop and market products on behalf of the alliance or, on behalf of joint ventures that may be created by the two companies. As a part of the agreement, the two companies are pursuing the possibility of forming a manufacturing joint venture in Europe.
"We continue to look for opportunities to grow our business through strategic alliances," said Donovan, who also serves as Tenneco Automotive's senior vice president and general counsel. "This is a win-win situation for both companies as we will enhance our global engineering and manufacturing capabilities to serve our original equipment customers around the world that require Japan-based support."
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. Among its products are Sensa-Trac® and Reflex™ shocks and struts, Rancho® shock absorbers, Walker® Quiet-Flow™ mufflers and DynoMax™ performance exhaust products, and Monroe® Clevite™ vibration control components.
Tokico Ltd., founded in 1937, is a manufacturing company and a leading supplier of shock absorbers, suspension struts and brake products to Ford and DaimlerChrysler as well as all Japanese car makers. In addition to automotive components, Tokico also manufactures electronic and measuring equipment and pneumatic products.
Tenneco Automotive, Media relations
Jane Ostrander, 847/482-5607
Tenneco Automotive, Investor relations
Leslie Cleveland Hague, 847/482-5042
Inoue Public Relations