ZF Transmissions Gray Court - c.ymcdn.comc.ymcdn.com/sites/ ZF… · 1 1 ZF Transmissions Gray Court 2 Introduction Karl Kehr Chief Financial Officer of ZF Transmissions Gray Court,

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ZF Transmissions Gray Court

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Introduction

Karl Kehr

� Chief Financial Officer of ZF Transmissions Gray Court, LLC effective July 1, 2012

� Experience:

� 8 years in the aerospace industry in Southern California

� 15 years in automotive industry, including 10 years with Ford Motor Company and 5 years with ZF

� Masters in Business Administration from Chapman University, Orange, CA.

� Relocating to the Greenville area from Cincinnati in the near future

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Agenda

� ZF global facts and figures

� ZF in North America

� ZF Transmissions in South Carolina

� products

� plant data

� manufacturing technologies

� HR strategy and hiring of employees

� questions

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About ZF - History

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ZF Group - Company Structure

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The ZF Group – An Overview 2011 2011/2010

Sales € 15,509 million 20 %

Employees (end of year) 71,488 11 %

Capital expenditure € 1,058 million 82 %

R&D expenditure € 754 million 17 %

121 production companies in 27 countries

8 main development locations in 4 countries

34 service companies and more than 650 service partners

ZF 2011 ZF Group Key Figures

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1915 Foundation of Zahnradfabrik GmbH in Friedrichshafen through Luftschiffbau Zeppelin GmbH.

1970 Foundation of ZF Getriebe GmbH, Saarbrücken.

1973 Volume production start for automatic 3-speed transmissions in Saarbrücken.

1982 Volume production start for automatic 4-speed transmissions in Saarbrücken.

1990 Volume production start for automatic 5-speed transmissions (for BMW) .

1991 Acquisition of the former IFA transmission plant in Brandenburg; in 1998, it is integrated into the Car Driveline Technology division.

1992 Change of Group’s name to ZF Friedrichshafen AG.

1998 Takeover of R&D from VCST continuously variable transmissions at the Sint-Truiden location, Belgium.

1999 Joint Venture between ZF und FORD in the USA.

2001 World premiere: Volume production start of the first automatic 6-speed transmission 6HP26 for passenger cars.

2003 Presentation of the automatic 7-speed transmission (IAA in Frankfurt).

2004 Joint Venture between ZF und SAIC in China.

2005 Presentation of the 7-speed dual clutch transmission (DT) and the hybrid system (IAA in Frankfurt).

2006 Introduction of the 2nd generation of automatic 6-speed transmissions with another 3-6% in fuel savings and even faster shift times (partly below the driver`s limit of perception)

2007 Presentation of the automatic 8-speed transmission 8HP (IAA in Frankfurt).

2008 5 million 6-speed automatic transmissions produced.

2009 Start of volume production of the automatic 8-speed transmission 8HP.

Car Driveline Technology History

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ZF in North America (2011)

ZF in North AmericaLocations

MichiganMichiganWisconsinWisconsin

KentuckyKentucky

North CarolinaNorth Carolina

South CarolinaSouth Carolina

IllinoisIllinois

AlabamaAlabamaGeorgiaGeorgia

FloridaFloridaMexicoMexico

WashingtonWashington

Employees Sales Locations: USA and Mex.

~7,174~7,174~7,174~7,174 $ 2.702 mil. $ 2.702 mil. $ 2.702 mil. $ 2.702 mil. 22222222

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The ZF Transmission Range in P-Division

Automatic Transmissions

Manuals/Dual Clutch

9HP 7DT

8HP S6-45

6HP S6-37/53

Shanghai (ZFTS)

SaarbrückenBrandenburg

FriedrichshafenKressbronn

Greenville

Northville

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9-Speed Automatic Transmission

OptimizationConventional drives

Hybrid drive Electric drive Lightweight design Alternative energies

ZF Product Innovations

ZF as technological leader

8-Speed Automatic Transmission

� Reduction of CO2 emissions by 10 to 16 percent

� Extremely space-saving

� Flexible construction kit system

� Fuel savings of 6 percent

� Can be combined with different inputs and outputs

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2846 North Old Laurens Road, Gray Court, SC, Lauren s County

ZF TransmissionsGray Court (ZFTG), South Carolina

Employees Size Land Start of Production Investment

~1,200+~1,200+~1,200+~1,200+ 950,000 Ft.950,000 Ft.950,000 Ft.950,000 Ft.2222 127 Acres127 Acres127 Acres127 Acres Q1 2013Q1 2013Q1 2013Q1 2013 $ 430 Mil. +$ 430 Mil. +$ 430 Mil. +$ 430 Mil. +

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� 8 speed automatic transmission

� 8 HP 70, 8 HP 70 X rear wheel drive applications (North-South)

ZFTG Products – 8 speed A/T

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ZFTG Products – 9 speed A/T

� 9 speed automatic transmission

� 9 HP 48, 9 HP 48 x front wheel / all wheel drive applications (East-West)

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Customer Status ZFTG

� Chrysler 300 and Dodge Charger

� Transmission: 8HP70 and 8HP70X

� Engines: 5.7L gasoline

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Customer Status ZFTG

� Jeep Grand Cherokee and Dodge Durango

� Transmission: 8HP70 and 8HP70X

� Engines: 5.7L gasoline

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Customer Status ZFTG

� Ram 1500

� Transmission: 8HP70 and 8HP70X

� Engines: 5.7L gasoline; 6.4L gasoline

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Customer status ZFTG

� Summary customers:

� Chrysler for 8 speed and 9 speed, several applications incl. Sedan, SUV and trucks

� 5 other OEM’s included in BP volume

� 2 more OEM’s with high probability to be customers (not included in BP volume)

� almost all major OEM’s in discussion with ZF

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plant data (1)

� plant location: 2846 North Old Laurens Road, Gray Court, SC, Laurens County(on I-385 between exit 22 and exit 19)

� size of land: 127 acres (514.000 sqm)

� size of building: 947.000 sqft (87.000 sqm)(230 m x 380 m)

� extension option: 400.000 sqft (approx.) (38.000 sqm)

� building ready to move in: January 2012

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plant data (2)

� number of employees 1200 + (direct, indirect, salaried)

� current number of employees: 310 (as of September 2012)

� in house production: final test, final assembly, sub assemblies,steel parts incl. ring gears, machining of only one die casting part

� initial capacity: approx. 800.000 transmissions(400k 8HP, 400k 9HP) @ 16 shifts

� investment: $ 430 M +

� SOP: second quarter of 2013

20Manufacturing Engineering Overview

• Groundbreaking 02/012011

• Walbridge - Construction Started 03/07/2011

• Steel Installation Began 05/31/2011

• Main Building Steel Complete 08/25/2011

• Main Building Roof -100%Complete 10/14/2011

• Electrical Sub-Yard - Site Permanent Power Ready 12/05/2011

• North 1/2 of Plant Floors 100% Completed 01/24/2012*

*Ready For Mfg. Equipment Installation

• South 1/2 of Plant Main Electrical Power Complete. 03/01/2012

• Entire Facility (Interior, Exterior & Site Work) Complete 04/30/2012

-All Building Systems & Infrastructure Operational and Commissioned

-Punch List Complete and (C of O) Certificate of Occupancy Granted *

Construction Milestones

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21ZFTG Engineering Overview

Plant: Concept to Reality

Feb 2011 Feb 2012

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ZFTG Site Layout

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ZF Product and Production Strategy

� ZF product strategy:

� technological leadership

� providing highest customer value with innovative products

� ZF production strategy:

� Production of products in the market for the market to minimize currency exchange risks, transportation cost risks (also natural hedging opportunities) and close proximity to customers

� ZF strategy execution:

� Automatic transmissions (A/T) for USA are currently produced in Germany

� ZF’s current and future USA customer base and future opportunities however justifies a local production of A/T’s

� Localization of A/T requires a large investments

� ZF started a site selection process in North America

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ZF’s Site Selection Process

� ZF’s site selection included 70 potential sites in USA and Mexico

� some criteria within the site selection process

� Availability of a site with right size / extension options also for suppliers

� Availability of qualified workforce, work ethics and right to work

� Cost structure (incl. labor cost , energy, logistic cost, cost for land, development, etc.)

� Local training / qualification support (ReadySC)

� Harbor (Charleston) / airports (CLT, GSP)

� Potential future suppliers in the area

� Product engineering / process engineering support organization (CUICAR)

� Support structure from State and County organizations (organization and incentives)

� Further opportunities in the US. S.E. automotive cluster

� Result: Laurens County Industrial Park, Gray Court, SC

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Required Skills

� Total Number of Employees

� 1,200 + at full capacity in 2016

� Overall

� Minimum high school or GED

� One year in a manufacturing environment

� Technical

� Two year degree or equivalent experience in position

� CNC programming (highest level)

� Semi-Skilled

� High School or GED

� One year in a manufacturing location

� One to two years of CNC experience (in Machining area)

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Plant Overview

Main Offices

Electrical &

Mechanical

Spare Parts

Storage

Maintenance

Supplier

Quality

Shipping

NorthParking

Employee

Entrance

Main Entrance

Truck Entrance

Receiving

Cafeteria

Storage

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Machining & Heat treat: General Information

� 347,543 sq. feet

� Planned cycle time: 35 seconds

� 7 Basic parts

� Sun Gear

� Ring Gear

� Planet Carrier

� Input Shaft

� Output shaft

� Transfer gears

� Planet Gears

� Fully automated heat treat

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Machining & Heat Treat: Layout

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Machining & Heat Treat: Layout - Typical Flow

TURNING/DRILLING/REAMTURNING/BORING

BUSHING PRESS

LASER WELDING

FINAL INSPECTION

LOAD

U-SHAPE WASHER

HIGH PRESSURE WASHER

ROBOTIC DEBURRING

100% BORE INSPECTION

SPC Station

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Machining & Heat Treat: Technologies

� Turning (Green/ Hard)

� Milling

� Drilling

� Welding (Laser)

� Washing (U-Shape, HP, Batch)

� Balancing (Auditing,

Correction)

� Induction hardening

� Extrude Honing

� Presses (Automated Hydraulic)

� Broaching

� Scudding

� Heat Treat

� Robotic Deburring

(automated)

� ECM Deburring

� Kuka Robots

� Hobbing

� Grinding

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Assembly & Test: Plant Layout

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Assembly & Test: Technologies

� Robotics - KUKA

� Bolt torqueing – Atlas Copco

� Laser Marking - Ricther

� Vision systems – several types

� Washing (Traditional with Robotics)

� Helium Leak Test – HOF, Kuka

� Test Benches - ZF Passau

� Servo Presses (Tox)

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= Installation in Progress

Equipment InstallationProgress

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Thank you! Any Questions?