DETROIT - Siemens Automotive Corp. says it plans to double annual sales from $3.6 billion to more than $7 billion by 2003.
The growth will come solely from internal growth and new contracts the automotive supplier already has secured, Siemens executives say. Among those contracts is one to supply some Ford Motor Co. 2001 model cars with an occupant-sensing system for airbag deployment.
Other contracts include plans to provide driver-information and navigation systems with two North American carmakers and keyless-ignition systems to a North American carmaker. Siemens would not identify the carmakers involved.
'One example of our growth is driver-information systems, where two years ago we had no sales. Now we are at $300 million, and that will get up to $600 million by 2003,' spokesman David Ladd said. 'There's more of that going on in Europe, but we have secure contracts with at least two of the three domestic (US) automakers.'
To help compensate for the rapid growth, Siemens Automotive is in the midst of its third major land expansion in the Detroit area in the past two years. The company expects to complete in March a three-story, 6,930-square-meter building in Troy, Michigan that will house 250 employees. In 1998 it opened a 5,850-square-meter campus in Dearborn, Michigan. Last year it added 5,940 square meters to its North American headquarters in Auburn Hills.
The Troy building will be a sales and engineering office. By the end of the year, Siemens Automotive will have more than 1,000 employees in the Detroit area. Five years ago the company had fewer than 200 here.
John Sanderson, general manager of Siemens' powertrain systems group, said the expansion should take the company through to 2002 or 2003.
Siemens Automotive is a subsidiary of German industrial and technology group Siemens AG.