Day One of The Power of Two

Day One of The Power of Two

With embattled Takata Corporation struggling with huge fines and a fast-shrinking customer base, ZF TRW expects to take the number two spot as one of the world’s largest supplier of airbag inflators, Automotive News reports. The company has secured a flurry of new contracts from Takata’s former customers.

According to Stefan Sommer, CEO of ZF Friedrichshafen AG, the company is expanding global production of inflators and airbags to keep up with demand. He also noted that two factors are currently pushing the expansion. The first, is due to the fact that global industry crash standards were becoming more stringent, requiring more automakers to fit airbags into vehicles.

The second reason is that Takata is currently struggling to replace millions of defective inflators. This has lead to Takata’s customers buying replacement inflators not just from ZF TRW, but from Autoliv and Daicel Corp – all of Takata’s biggest rivals. Moreover, 68% of airbag inflators produced by all three companies will be used to repair the embattled company’s faulty airbags by March, this year.

Honda airbag

Honda, which has already dropped Takata late last year, is one of the company’s newest clients. Fiat Chrysler Automobiles (FCA) said in August that ZF TRW will be a long-term supplier. To meet demand of its growing list of customers, Sommer explained that it will be expanding its global capacity. “It’s a global effect. We are expanding capacity in our existing plants,” the CEO revealed.

The company’s North American headquarters will be located in Livonia, Michigan, where its headquarters is situated at the moment. Its old headquarters in Northville will be converted into a sales and engineering centre. Franz Kleiner will replace Julio Caspari as ZF TRW’s North American president on April 1, 2016.

Instead of the controversial ammonium nitrate as an airbag propellant, TRW and Autoliv for that matter, both utilise guanidine nitrate as an alternative explosive compound. Guanidine nitrate is less vulnerable to heat and moisture in comparison. Said chemical is also being produced by Takata as an alternative propellant for the last two years.

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