Tenneco Inc. (ticker: TEN, exchange: New York Stock Exchange) News Release
April 29, 2008
VOLKSWAGEN SELECTS TENNECO TO SUPPLY CES SHOCK ABSORBERS ON NEW PASSAT CC
Brussels, Belgium/Lake Forest, Illinois, April 29, 2008 – Tenneco Inc. (NYSE: TEN) announced that it has been awarded new ride control business from Volkswagen. The company will supply its Continuously Controlled CES shock absorbers as a component of Volkswagen’s Adaptive Chassis Control DCC on the new Volkswagen Passat CC.
"We continue to grow our share of the electronic suspension market and are pleased to supply Volkswagen for the first time with our state-of-the-art CES shock absorbers," said Gregg Sherrill, Tenneco Chairman and CEO. "Vehicle ride and handling continue to be key factors in consumer vehicle purchasing decisions and, like Volkswagen, many OEMs are using electronic suspension technology to differentiate their vehicles with enhanced performance features."
Tenneco initially introduced its CES shock absorbers in 2003 and is now adding larger volume platforms. By 2011, the company anticipates expanding its share of the global electronic suspension market by four times.
Tenneco’s CES shock absorbers, developed in conjunction with valve supplier Öhlins Racing, eliminate the need to compromise between high levels of ride comfort and high levels of handling and performance. They are integrated into a system that continuously adjusts the shock absorbers based on driver inputs, road conditions and vehicle dynamics like speed and cornering. With valve adjustments that occur within 10 milliseconds and a broad damping force range, these shock absorbers are some of the most advanced electronic suspension components available today.
The CES shock absorbers are manufactured at Tenneco’s Ermua, Spain facility.
Earlier this year, Tenneco announced that it projects it will achieve an average compounded annual OE revenue growth rate of 11% to 13% between 2008 and 2012. Although primarily driven by tightening emission control regulations globally, this projection also reflected the Volkswagen business announced today.
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.