Eaton and Motorola to form strategic alliance to develop automotive component assemblies
NORTHBROOK, ILLINOIS and CLEVELAND, OHIO …Motorola, Inc. (NYSE:MOT) and Eaton Corporation (NYSE:ETN) announced today they intend to enter into a joint agreement to design, develop, market and supply automotive component assemblies to the automotive market.
The companies have agreed to use Eaton's capabilities in automotive electromechanical actuators, pressure sensors and electronics with Motorola's DigitalDNATM technology and expertise in designing and manufacturing automotive electronics and sensors to design, develop and market world-class, automotive transmission modules to original equipment manufacturers (OEMs) and all tiers worldwide.
The Motorola-Eaton alliance has secured their first contract from General Motors Corporation. Under terms of the agreement, the Motorola-Eaton alliance will provide GM with transmission modules for model year 2003 vehicles. Revenues are expected to exceed $200 million over the life of the program.
This agreement enables us to take Eaton's strong controls technology and application expertise and combine it with Motorola's capability in automotive electronics," said Bruce Taylor, senior vice president and group executive--Automotive, of Eaton Corporation. "We are confident that this relationship will result in new and exciting products that offer broader solutions to all our customers."
"Bringing together Motorola's DigitalDNATM technology—the technology that makes systems smart, powerful and easy to use—and our expertise in automotive electronics with Eaton's electromechanical applications creates a powerful team to better serve our automotive customers world-wide," said Dave Melka, senior vice president and general manager of Motorola's Automotive and Industrial Electronics Group (AIEG). "We are delighted to join forces with leadership companies like Eaton because it gives us another avenue to strengthen our customer focus."
According to the two executives, each company will be responsible for funding its own costs such as engineering, technical resources and capital investment. The strategic alliance is nonexclusive and allows both companies to work with other tier ones in a similar way. The Motorola-Eaton alliance will continue to work closely with all tiers to provide OEMs with optimized system solutions.
Motorola, Inc. (NYSE:MOT) is a global leader in providing integrated communications solutions and embedded electronic solutions. Sales in 1999 were $33.1 billion.
Eaton Corporation, with 1999 sales of $8.4 billion, is a global manufacturer of highly engineered products that serve industrial, vehicle, construction, commercial, aerospace and semiconductor markets. Principal products include hydraulic products and fluid connectors, electrical power distribution and control equipment, truck drivetrain systems, engine components, ion implanters and a wide variety of controls. Headquartered in Cleveland, Ohio, the company has 64,000 employees and 195 manufacturing sites in 23 countries.