Tenneco Inc. (ticker: TEN, exchange: New York Stock Exchange) News Release
August 11, 2008
TENNECO TO SUPPLY CES SHOCK ABSORBERS ON NEW VOLVO XC60
Brussels, Belgium/Lake Forest, Illinois, August 11, 2008 – Tenneco Inc. (NYSE: TEN) announced that it has been awarded new ride control business from Volvo. The company will supply its Continuously Controlled Electronic Suspension (CES) shock absorbers as optional components of the Interactive Vehicle Dynamic Control Four-C Chassis on the new Volvo XC60.
"A vehicle’s ride and handling performance are among the top influencers in consumer buying decisions," said Karel Van Bael, vice president and general manager, Europe original equipment ride control. "Tenneco’s reputation for helping vehicle manufacturers deliver enhanced ride and handling has driven greater demand for high performance suspension systems like our electronic CES shock absorbers."
CES is a semi-active suspension system that achieves optimal balance between ride comfort and handling. The CES system changes the feel of a vehicle’s ride by continuously adjusting the shock absorber damping levels to driver inputs, road conditions and vehicle dynamics like speed and cornering. Tenneco developed the system together with Öhlins Racing. Tenneco manufactures the CES shock absorbers at its Ermua, Spain facility.
Tenneco has a long history with Volvo. The first generation CES went into production in 2003 as standard equipment on the Volvo R-line and as an option on the S80, V70 and S60.
Since then, Tenneco has been expanding its share of the electronic suspension market, supplying the Ford S-Max, Galaxy & Mondeo, the new Volvo S80 & V70, Volvo XC70, as well as the Audi A6, Audi Allroad, Mercedes C-class, the new VW Passat CC, VW Scirocco, VW Eos and VW Tiguan.
Tenneco announced earlier this year that it projects it will achieve an average compounded annual OE revenue growth rate of 11% to 13% between 2008 and 2012. The Volvo business announced today is included in that projection.
Tenneco is a $6.2 billion manufacturing company with headquarters in Lake Forest, Illinois and approximately 21,000 employees worldwide. Tenneco is one of the world’s largest designers, manufacturers and marketers of emission control and ride control products and systems for the automotive original equipment market and the aftermarket. Tenneco markets its products principally under the Monroe®, Walker®, Gillet™ and Clevite®Elastomer brand names.
This press release contains forward-looking statements. Words such as "anticipate," "expects," "will", "continue" and similar expressions identify 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) changes in automotive manufacturers' production rates and their actual and forecasted requirements for the company's products, including the company's resultant inability to realize the sales represented by its awarded book of business; (ii) changes in consumer demand and prices, including decreases in demand for automobiles which include the company's products, and the potential negative impact on the company's revenues and margins from such products; (iii) the general political, economic and competitive conditions in markets where the company and its subsidiaries operate; (iv) workforce factors such as strikes or labor interruptions; (v) material substitutions and increases in the costs of raw materials; (vi) the company's ability to develop and profitably commercialize new products and technologies, and the acceptance of such new products and technologies by the company's customers; and (vii) 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.