La Unidad Popular

The Powertrain division integrates innovative and effi- cient powertrain system solutions into vehicles of all categories. The goal is to not only make driving more affordable and environmentally sound, but to increase driving comfort and pleasure as well. With our com- prehensive portfolio of gasoline and diesel systems including sensors, actuators and tailor-made electron- ics through fuel supply systems, engine management and transmission control units down to design solu- tions for hybrid and electric drives, we offer our cus- tomers a full range of systems and components. The Powertrain division has 60 production sites in 22 countries. In the year under review, its 26,614 em- ployees generated sales of €4.7 billion. The division is divided into five business units:

q Engine Systems q Transmission

q Hybrid Electric Vehicle q Sensors & Actuators q Fuel Supply

The Engine Systems business unit develops and manufactures engine management systems for a clean environment. The product portfolio includes system and component solutions for gasoline and diesel en- gines, control units for engine management in com- mercial vehicles, as well as turbocharger and exhaust gas aftertreatment technologies. Extensive expertise with regard to software and system integration, cali- bration and simulation complete the offering.

As a specialist in electronic control units for automatic transmissions, the Transmission business unit pro- vides solutions for all types of transmission and all- wheel applications. Modern transmission electronics optimize driving comfort, save fuel and reduce ve- hicles’ pollutant emissions. The range also includes high-end systems and cost-effective solutions for growth markets. The product portfolio extends from external control devices through to mechatronics integrated into the transmission, including sensors and electric or hydraulic actuators.

With the potential to save fuel and cut emissions by 25% and more, plus a significant increase in torque, the hybrid drive and the all-electric drive are major alternatives to the pure combustion engine. The Hy- brid Electric Vehicle unit was the first European sup- plier to start production of hybrid systems in 2003 and offers a modular system which covers all key compo- nents for future drive types. These modules can be adapted to specific vehicle requirements worldwide – from compact vehicles through SUVs to trucks. The primary goal of the Sensors & Actuators busi- ness unit is to reduce the CO2 emissions of vehicles of all categories. Intelligent sensors and actuators com- bined with engine management systems allow for dynamic diesel and gasoline engines that not only fulfill current emission standards but are optimally prepared for future regulations for many years to come. Our product portfolio covers all key requirements in the powertrain area – from turbochargers to exhaust gas aftertreatment – and comprises both solutions for combustion engines and transmission and also for hybrid and electric vehicles.

All technologies relevant to fuel management are de- veloped and produced by the Fuel Supply unit. Its range of products includes fuel delivery units, fuel-level sensors, fuel pumps, valves, and integrated electron- ics. Due to their modular structure, the components can be adjusted flexibly to individual customer re- quirements and also allow for fast, inexpensive devel- opment of customized systems with maximum func- tionality. With new pioneering technologies such as on-demand fuel supply, we make an active contribu- tion to CO2 reduction.

Market positions

The Powertrain division is the world market leader in fuel supply systems, engine actuators, control units for automatic transmission, four-wheel and all-wheel applications as well as nitrogen oxide, flex fuel and knock sensors, among other areas. We are number two worldwide for gasoline and diesel injection sys- tems.

Divisions and Business Units | Corporate Profile | Management Report

35 Opportunities for future growth

Stricter legislation on emissions – for example, the goal of cutting CO2 emissions on a sustained basis – and the limited supply of oil, as well as the demand for economical vehicles, require fast and effective action. It is indisputable that a mix of drive solutions will be necessary for this. The Powertrain division therefore aims to push forward increases in the efficiency of conventional combustion engines effectively in the short term, and the advancing electrification of the powertrain in the medium and long term.

We see particular opportunities for growth as a result of our system expertise and our approach, which involves modular solution elements for current and

future powertrain configurations. These solutions can be selected and combined based on the vehicle cate- gory and the respective requirements profile. Exam- ples include combining gasoline direct injection with exhaust gas turbocharging for high-efficiency gasoline engines in order to further reduce fuel consumption, or combining diesel engine technology with precise and rapid piezo technology in order to further reduce emis- sions, as well as innovative technologies for hybrid through to all-electric vehicles.

Further advances in exhaust gas aftertreatment and an open system architecture in powertrain management for integrating the growing number of functions in the vehicle will also increasingly gain in importance.