Eaton wins $500 million GM contract for technologically-advanced powertrain program
CLEVELAND, OHIO… Diversified industrial manufacturer Eaton Corporation (NYSE:ETN), today said it has been awarded a $500 million multiyear contract by General Motors (NYSE:GM) to supply an advanced powertrain technology for an undisclosed future program. The technology and its application will improve fuel economy without sacrificing power and performance.
Stephen M. Buente, senior vice president and group executive-Automotive, said Eaton used cooperative expertise from multiple Eaton divisions to meet rigorous GM criteria. "While this program is still highly proprietary at this stage, we can point with pride to having been able to develop a system solution which draws on unique cross-group synergies to support customer requirements. We believe we have the technological innovations and related customer services to fully support the industry in reducing the future environmental impact of vehicles," Buente said.
"We know that in today's market, our customers are depending on suppliers to be seamless and streamlined in the way they do business. The opportunity to work with General Motors' Advanced Research & Development Team from the program's inception has contributed greatly to the fulfillment of that expectation and the program's success to date," he said.
Buente said Eaton has been focusing its automotive strategy and resources on fuel economy, safety and environmental impact. Other product examples include advanced gasoline vapor controls, common rail Diesel fuel controls, and patented ULV⠕ltralite engine valves that have been nominated for the 2001 Automotive News PACE⠩nnovation award.
With 2000 sales of $8.3 billion, Eaton is a global diversified industrial manufacturer of highly engineered products that serve industrial, vehicle, construction, commercial and aerospace markets. Principal products include hydraulic products and fluid connectors, electrical power distribution and control equipment, truck drivetrain systems, engine components and a wide variety of controls. The company has 59,000 employees and 195 manufacturing sites in 24 countries.
This news release contains the forward-looking statement that the amount of the GM contract is $500 million. This statement is subject to various risks and uncertainties, some of which are outside the company's control. The following factors could cause actual results to differ materially from that forward-looking statement: a substantial decline in anticipated consumer demand for the vehicles that will include the advanced powertrain technology that is the subject of the GM contract, unanticipated problems with that technology or further substantial deterioration of economic and financial conditions in the United States. We do not assume any obligation to update this forward-looking statement.