Type: News
The business is run in North and South America, Europe and Asia. The company has been severely affected by the problems in the automotive industry and Haldex has been forced to reduce its personnel from 6 500 employees in 2008 to its current 3 700. — A significant reduction that has been painful, but the organization has managed to handle it well, says Haldex President Joakim Olsson who Automotive Sweden met with in November. Haldex has 22 manufacturing plants and 9 development divisions. — The plants are localized so that they can support the respective regions with products, says Joakim Olsson.
The public most likely associates Haldex, first and foremost, with the company´s four-wheel drive (AWD — All Wheel Drive) that has been very successful and is used by several of the world´s car manufacturers - but Haldex is much more than its AWD.
Creating a clear niche focusing on specialty areas within the automotive industry
Joakim Olsson relates that the company specializes in industrializing innovations and concepts into finished products. — Sometimes it is coincidence that gives development a sizeable push forward, but often it is a long-term, costly and goal oriented work, says Joakim Olsson and continues to relate the events of the 1990s that gave the AWD system a major push forward. — When we tested our AWD system in Arvidsjaur Ferdinand Pietsch the President of VW happened to be there. He was so impressed by the Haldex system that he directly decided that VW would equip the Golf and Audi models with it.
Haldex has recently reorganized the company to focus more directly towards carmakers. They have sold Garphyttan to a Japanese thread manufacturer and instead acquired the English pump manufacturer Concentric that manufactures products for diesel engines. — We are creating a clear niche for ourselves towards the automotive industry´s specialty areas that have considerably more growth potential than the automotive market at large, says Joakim Olsson.
Business in three divisions
Haldex runs its business in three divisions: Commercial Vehicle Systems, Hydraulic Systems and Traction Systems.
Commercial Vehicle Systems is the largest division and it develops and manufactures air pressure based braking systems for heavy trucks, freight trailers and buses. The system is becoming more and more advanced and contains stabilization systems, disc brakes and the new technique "brake by wire", which means that the pressure air break on the wheel is steered electronically. — It results in 14% shorter breaking distance, which is of course valuable for increased traffic safety, says Joakim Olsson. The basis for this division´s business comes from the Haldex invention "the automatic brake caliper lever", a component that has become required by law in many parts of the world. Haldex is counting on this product being required by law in India, China and other fast growing economies. The division is responsible for half of the group of companies´ turnover and half the number of employees. — I am counting on good growth within this division when the market turns and when safety requirements increase in the world, says Joakim Olsson.
Hydraulic Systems is the second largest division responsible for 25% turnover and 39% of the employees. The division develops and manufactures hydraulic pumps; fuel meter pumps for diesel engines, special products to decrease emission from diesel engines, hydraulic drive and lift systems. In April 2008 Haldex acquired the English company Concentric that is a global suppliers of water and fuel pumps for diesel engines. Alfdex, which is a "joint venture" with Alfa Laval is also included in this division. This company has developed a system for cleansing of crankcase emissions that were previously emitted into the air by diesel engines, but which can now be cleaned from oil drops and redirecting the oil to the engine. This invention is built upon Alfa Laval´s centrifugation technology and it will be important when emission regulations become more stringent. — Haldex variable flow pumps do not pump more water and fuel than the engine requires at each specific time and results in fuel savings, which is extremely interesting to all car manufacturers, says Joakim Olsson.
Traction Systems is the smallest division but the most recognizable by the public. The division is responsible for 12% of the group´s turnover and employs 6% of the employees. The four-wheel drive system AWD for passenger cars is developed here. Haldex also develops the software that electronically regulates the systems and provides the driving characteristics that different manufacturers want on their products. VW, GM, Ford, Volvo Car Corporation, Saab are some of the customers that use the Haldex AWD system. Haldex also works intensively with the development of a system for hybrids. Joakim Olsson says: "that interest for the AWD system will be huge in the future as witnessed by VW´s investment. In the spring we took home an order worth SEK 4.5 billion for supplying the AWD system from 2012 to 2018 to the VW group".
We are discussing the future and electric cars that can significantly alter the powertrain in passenger cars and Joakim Olsson agrees that changes will take place "but the combustion engine and its increasingly finely-tuned and effective transmission will hold a strong position for a long time to come".
Suppliers play an important role in the development process
We conclude our meeting with a discussion about the risks of technology transfer, Sweden as the country to lead development and the suppliers´ role at present and going forward. - I believe that the advantages of Chinese ownership of e.g. Volvo Car Corporation and Saab are bigger than the risks. China is the fastest growing automotive market in the world and to gain support to establish a strong position there is valuable, says Joakim Olsson.
- Sweden is a good country to push development and Haldex has a strategic collaboration with Chalmers, The Royal Institute of Technology and the universities in Lund and Linköping. Many dissertations are carried out with sponsorship and interest from Haldex, says Joakim Olsson.
The suppliers have an important role in the work with development and Haldex works within the areas of safety and environment and driving characteristics and Joakim Olsson believe that there will be significant growth within these areas. — Haldex does not have any plans to step up and supply the final product to car buyers as Austrian Magna planned, but they will continue to be a very important supplier to the entire global automotive industry, concludes the Haldex President.
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