Company:WABCO Vehicle Control Systems

Short description: American provider of braking, suspension and transmission systems for commercial vehicles

WABCO Vehicle Control Systems

Industry	Component manufacture and supply for commercial vehicles
Fate	Acquired by ZF Friedrichshafen
Predecessor	Westinghouse Air Brake Company (WABCO) American Standard Companies
Founded	1869 (1869), as Westinghouse Air Brake Company
Founder	George Westinghouse Jr.
Defunct	May 29, 2020 (2020-05-29), became Commercial Vehicle Control Systems division of ZF
Headquarters	Bern , Switzerland
Area served	Worldwide (39 countries, 28 manufacturing locations)
Key people	Jacques Esculier, CEO.
Products	electronic and active braking systems aerodynamic and stability systems suspension systems transmission automation systems fleet management systems
Services	customized aftermarket solutions and dedicated support for fleet operators, maintenance workshops and distribution partners
Revenue	US$2.63 billion (2015)
Operating income	US$351 million (2015)
Net income	US$291 million (2015)
Number of employees	12000
Website	https://www.wabco-auto.com

WABCO was a U.S.-based provider of electronic braking, stability, suspension and transmission automation systems for heavy-duty commercial vehicles. In 2007, the Vehicle Control Systems was spun off as WABCO Holdings, Inc., an American provider of electronic braking, stability, suspension and transmission automation systems for heavy duty commercial vehicles. Their products are present in many commercial vehicles such as trucks, buses, trailers and off-highway vehicles but to only fill the niche roles. WABCO was acquired by ZF Friedrichshafen in May 2020.

History

WABCO logo

The Westinghouse Air Brake Company was founded in the U.S. in 1869 and later acquired by American Standard in 1968 and were designated as American Standards' Vehicle Control Systems division. The earthmoving and mining product range was sold to Dresser Industries in 1984. American Standard changed its name to Trane, Inc. and on July 31, 2007, Trane spun off its Vehicle Control Systems as WABCO Holdings, Inc via a special dividend to its shareholders. The owners of Trane, Inc. stock received one share of WABCO Holdings for every three shares of Trane, Inc which they held. Trane, Inc. was acquired by Ingersoll-Rand the following year.

Previously headquartered in Bern, Switzerland (having moved from Brussels, Belgium in February 2019), WABCO employed more than 11000 people in 34 countries worldwide. In 2013, WABCO's total sales were $2,720.5 million, a rise of 10% over the previous year. WABCO was a publicly traded company listed on the New York Stock Exchange as WABCO Holdings, Inc., with the stock symbol WBC.

Acquisition by Friedrichshafen

On February 27, 2019, WABCO's stock price increased 8% on rumors of a takeover bid by a competitor and trading in the stock was suspended. The following day, a trade publication reported that WABCO had confirmed that it had "been approached" by German auto parts maker ZF Friedrichshafen and was "engaged in preliminary discussions concerning a potential transaction.”

On 28th March 28, 2019, ZF Friedrichshafen announced plans to acquire WABCO for $136.50 per share ($7 billion) in an all-cash transaction. The offer represented a 13% premium above WABCO's February 26 stock price, according to The Wall Street Journal . WABCO shareholders approved the acquisition in July 2019.

In January 2020, the U.S. Department of Justice raised concerns about the market power that the combined entity would have if the acquisition was allowed to proceed. In a news release, a Justice Department spokesman said: “The merger, as originally structured, would have given ZF a monopoly over an essential steering systems component used in trucks and buses that move products and people across the United States.” WABCO was required to divest the steering systems business in order to proceed with the transaction. The companies reached a settlement with the Department of Justice, and ZF completed the $7 billion takeover in May 2020. On 29 May 2020, WABCO was acquired by ZF Friedrichshafen through a merger agreement and thereafter became the Commercial Vehicle Control Systems division of ZF.

Notable products

WABCO Holdings' key product groups are brake actuators, air compressor/air management, foundation brake, anti-lock braking, conventional braking, electronic braking, air suspension, transmission automation, vehicle electronic architecture and stability control/support.

Markets

Major customers for WABCO Holdings are commercial and consumer vehicle OEMs and commercial after-market parts suppliers. Commercial truck and bus OEMs - such as Daimler (largest customer; 13% of sales, 2010), Cummins, Paccar, and Volvo - account for the majority of sales (62% of sales, 2013). Commercial after-market suppliers represent a significant minority of sales (25% of sales, 2013). Trailer and consumer vehicle OEMs also contribute a small percentage of sales.

WABCO Holdings primary market is in Europe (61% of sales, 2013). They get some business from Asia/Pacific region, and much less from other regions of the world.

North America Vehicle Control System and some compressor sales and support is provided by a joint venture (JV) with Meritor Inc. (Formerly Rockwell Automotive) while Disc Brake sales and higher margin compressor sales are handled directly by offices in Rochester Hills, MI and Charleston, SC.

North American operations also has a division "WABCO Reman Solutions" formed to offer remanufacturing of various brands of defective automotive components as well as WABCO branded defective components.

See also

• Wabtec - another spin-off from the original Westinghouse Air Brake Company.