Delphi, Autoliv, Breed Technologies and TRW are all competitors for the head impact protection market. SMU MUST partner up with someone, for the ITS to be well-adopted. Autoliv is the Tier One supplier of the ITS to BMW........but also has under development a side-wall curtain airbag for Mercedes.
In my view, SMU would be better served to team up with Breed...We have a board interlock thru our director, Fred J. Musone, new President of Breed. Breed is integrating within, and consolidating the auto-interior safety device market, is a technology leader (spends 6% of revenues on R&D), knows well how to manufacture for this industry (look at net margins on this company, until recently...ran 15-16% for years.....and will again on higher revenues, IMO), and has significant experience in getting new ideas adopted by the regulators and auto makers.
Take a look at Breed Technologies, Inc. (NYSE: BDT)....They know how to operate. They are going to produce significantly higher earnings after they digest the AlliedSignal auto safety division acquisition. |
