Global market review of automotive roof systems â€“ forecasts

Global market review of automotive roof systems

– forecasts to 2011

2005 edition

Page i

Global market review of automotive roof systems – forecasts to 2011 3rd edition by Matthew Beecham

July 2005

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Page iii

Table of contents

Multi-user licence edition............................................................................................................... ii Copyright statement .................................................................................................................. ii

Table of contents ........................................................................................................................... iii

List of tables .................................................................................................................................... v

List of figures ................................................................................................................................. vi

just-auto.com’s research portfolio .............................................................................................. vii Incredible ROI for your budget – single and multi-user licences..............................................vii

just-auto.com membership ......................................................................................................... viii

Chapter 1 Introduction.................................................................................................................... 1 Let’s start from the top .............................................................................................................. 1 Report coverage........................................................................................................................ 1

Chapter 2 The market ..................................................................................................................... 3 Market players........................................................................................................................... 3

ArvinMeritor ...................................................................................................................... 3 ASC .................................................................................................................................. 3 Bertone ............................................................................................................................. 8 Car Top Systems.............................................................................................................. 8 Edscha.............................................................................................................................. 8 Heuliez.............................................................................................................................. 8 Inalfa................................................................................................................................. 9 Karmann ........................................................................................................................... 9 Pininfarina......................................................................................................................... 9 Webasto ......................................................................................................................... 10

Mergers, acquisitions and joint venture activity ...................................................................... 10 Capital investment activity ...................................................................................................... 12 Market shares ......................................................................................................................... 12 Market forecasts...................................................................................................................... 15

Sunroof market ............................................................................................................... 15 Convertible roof market........................................................................................................... 19

Chapter 3 Technical review.......................................................................................................... 24 Roof trends.............................................................................................................................. 24 Retractable hard-tops.............................................................................................................. 26 Convertibles ............................................................................................................................ 29 Roof modules .......................................................................................................................... 30

Chapter 4 Manufacturers.............................................................................................................. 32


Page iv

ArvinMeritor............................................................................................................................. 32 ASC......................................................................................................................................... 33 Bertone.................................................................................................................................... 35 Car Top Systems .................................................................................................................... 35 Edscha .................................................................................................................................... 39 Heuliez .................................................................................................................................... 40 Inalfa Roof Systems BV .......................................................................................................... 42 Karmann.................................................................................................................................. 44 Pininfarina ............................................................................................................................... 48 Webasto .................................................................................................................................. 48

Online sources of information ..................................................................................................... 50 Free email newsletters ............................................................................................................ 50 Other research reports ............................................................................................................ 50 Global news and feature articles............................................................................................. 50 Search the web ....................................................................................................................... 50

Your feedback ............................................................................................................................... 51


Page v

List of tables

Table 1: Production of conventional-size sunroofs for light vehicle applications in Western Europe,

Japan, North America, 2000-2011¹ ² (Units, ‘000s) .................................................. 16

Table 2: Market value of conventional-size sunroofs for light vehicle applications in Western

Europe, Japan, North America, 2000-2011 (US$ ‘000s) .......................................... 17

Table 3: Production of large sunroofs for light vehicle applications in Western Europe, Japan,

North America, 2000-2011 (Units, ‘000s) ................................................................. 18

Table 4: Market value of large sunroofs for light vehicle applications in Western Europe, Japan,

North America, 2000-2011 (US$ ‘000s) ................................................................... 19

Table 5: Production of convertible roof systems in Europe and North America, 2003 and 2008

(units)........................................................................................................................21

Table 6: UK convertible car market registrations, 1994 – 2004 ..................................................... 22

Table 7: European convertible vehicle registrations, UK, Germany, France, Italy and Spain, 1999

– 2003....................................................................................................................... 23

Table 8: Car Top Systems’ facilities worldwide.............................................................................. 38

Table 9: Edscha AG’s turnover by division, 2002 – 2004¹ ............................................................. 40


Page vi

List of figures

Figure 1: Global market shares for vehicle sunroofs, 2004 (% of production volume) .................. 13

Figure 2: European OE market shares for vehicle sunroofs, 2004 (% of production volume) ....... 14

Figure 3: North American OE market shares for sunroofs, 2004 (% of production volume).......... 15

Figure 4: Opel Tigra TwinTop ........................................................................................................ 27

Figure 5: ArvinMeritor’s roof module with sunroof.......................................................................... 33


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Chapter 1 Introduction

Chapter 1 Introduction

Page 1


Let’s start from the top

Three roof design trends are notable:

○ First – the sheer size and sophistication of the products. Panoramic

sunroofs stretching the length and breadth of a vehicle are becoming

increasingly popular on both sides of the Atlantic.

○ Second – roof systems are fast becoming part of a car’s identity. For

example, the most eye-catching design feature on the Citroen C3 Pluriel is

the multi-function roof system, which allows the car to be a cabriolet,

spider, saloon and pickup.

○ Third – roof systems are developed along modular lines with suppliers

hoping that car manufacturers will begin standardising roofs to allow a

variety of pre-sized modules to fit the openings.

Despite the Japanese convertible market lagging behind Europe and North

America, open-top cars appear to be making a comeback. The quality of soft-

top designs has also improved significantly over the last decade. Better quality

materials have brought benefits in acoustics and cabin temperatures, enabling

us to drive soft-tops in comfort all year round. They can even be driven through

a car wash without any problems.

The trend toward more convertibles and open-top vehicles has created more

opportunities for suppliers. While Inalfa, ArvinMeritor and Webasto are

focussing on panoramic roofs, coachbuilders such as Karmann, Heuliez and

Pininfarina are concentrating on developing open-air roofs for mass

production.

Report coverage

In this third edition report, just-auto extends the analysis to provide market

volume and value forecasts by product segment for conventional-size sunroofs

in Western Europe, North America and Japan, from 2000 through 2011. We

Chapter 1 Introduction Page 2


also take a closer look at the size of the convertible market in Europe and

North America, the reasons for growth including an exclusive interview with

ASC. In addition to highlighting the main market trends in roof systems,

chapter two identifies the main players and OE sunroof market shares. This

section concludes with a roundup of recent merger, acquisition and capital

investment activity. Chapter three reviews the technical advances in

conventional and large sunroofs. It also reviews the latest retractable hard-top

designs and roof modules. Chapter four provides brief profiles of the major roof

system manufacturers, namely, ArvinMeritor, ASC, Bertone, Car Top Systems,

Edscha, Heuliez, Inalfa, Karmann, Pininfarina and Webasto.

Chapter 2 The market

Chapter 2 The market

Page 3


Market players

ArvinMeritor ArvinMeritor is one of the world's leading independent suppliers of sunroofs

and roof systems products for use in passenger cars, light trucks and sport

utility vehicles, including its Golde brand sunroofs. The company makes

complete roofs, some of which incorporate sunroofs that provide OEMs with

cost savings by reducing assembly time and parts. Its roof system

manufacturing facilities are located in North America and Europe. In late 2004,

the company formed a joint venture with Shanghai SIIC Transportation

Electronic Co Ltd to manufacture passenger vehicle sunroofs for a VW facility

in Shanghai, China.

ASC American Specialty Cars (ASC) is looking to emulate the success of European

styling and engineering houses such as Pininfarina, Karmann, Valmet and

Bertone by expanding into Europe and China. Formerly known as the

American Sunroof Company, ASC has kept its initials but re-invented itself

over the past two years as a specialist body engineering company for low

volume production vehicles.

The company has almost entirely come out of the sunroof business apart from

its joint venture with Yachio at Columbus, Ohio while it has also retained its 20-

year association with Toyota with the roof system on the Solara and with

Mitsubishi on the Eclipse. It sees China as a real opportunity and has already

been contracted by one North American manufacturer to design a line of

vehicles specifically for the Chinese market.

At the 2005 Detroit motor show, ASC showcased five concept vehicles

including a convertible version of the Chrysler 300 Hemi C, the first four-door

open-top since the Lincoln Continental of 1967. ASC took the current 300

Hemi C production body and conducted a full engineering exercise to ensure

that the concept had the necessary stiffness and was able to meet all the

safety standards of the production car. Europe is another hunting ground for

Chapter 2 The market Page 4


growth, although the company accepts the competition there is greater and the

market more fragmented. ASC in its previous existence used to have

operations in Germany for Porsche and retains a small office in Ingolstadt to

liaise with manufacturers in the country. Growth in Europe would probably be

through a mixture of organic growth, acquisitions or joint ventures.

In 2002, the family of ASC’s late founder, Heinz Prechter, agreed to sell the

company to Questor Partners Fund II. Questor is a private-equity fund headed

by turnaround expert Jay Alix. ASC is now 100% privately held by Questor.

Exclusive interview with ASC

In an interview with just-auto, this report’s author Matthew Beecham talked

with Jeff Steiner, executive vice president and chief marketing officer, about

how the company has developed since Questor took over and how it is aiming

to extend its geographical reach.

just-auto: As we see it, ASC is in the throes of moving from an entrepreneurial

company – whose success was highly dependent on the abilities of its late

founder, Heinz Prechter – to a professionally managed one which relies on

technical capabilities, process and financial discipline to improve continuously.

Jeff Steiner: I would agree with that. Heinz Prechter was a very intelligent and

charismatic man with great vision. He spent a lot of time carrying the company

on his personal energies. But today, some of our [new] leadership [team] has

come from the automakers and tier one suppliers. So we are used to working

as one. We are looking at this more as a company that is dependent on its

processes and systems than on any one individual. The acquisition by Questor

has been a very positive move for ASC, enabling the company to grow.

Questor invested money into the company, which has allowed us to fund an

aggressive new product development group, focus our R&D and

manufacturing processes.

j-a: Why are we seeing a resurgence of convertibles in the US?

Jeff Steiner: There are a couple of reasons for that. The first is due to the

current hyper-segmentation of the market. Automakers are looking for unique

features that are causing consumers to rush into a showroom and buy a car.

The second relates to the need to have fun in your vehicle. Some recent



research estimated that 42% of the US market buys cars strictly on value-

based transportation needs. In other words, these consumers are not style-

conscious; they want basic, reliable transportation. [But] then the remaining

58% of the market are influenced by styling and perception. This group is

looking for more fun, style and emotion from their vehicle. Convertibles are a

way to achieve both. For automakers, it is a way to differentiate their product

line as well as add a little bit more fun and excitement for those consumers

looking for that.

j-a: ASC showcased its Helios four-door convertible concept at the Detroit auto show last January. And yet four-door convertibles have been extinct for 40 years. Why now?

Jeff Steiner: I think there are two reasons. The four-door convertible is first

and foremost a body-engineering challenge to make it work. We knew we

could put a convertible top on it – that was the easy part. The hard part was

whether we could make the body stiff enough to make a prototype. Our goal

for the [2005 Detroit] motor show was that we wanted an engineered,

production-feasible prototype that we could show and drive. It was a learning

laboratory for us. To my mind, there were three key things that came out of

that project.

The first is that we believed that we could do a four-door convertible on a rear-

wheel-drive architecture utilising a lot of the patents on the structural rigidity

elements that we put into it. So any rear-wheel-drive platform using our

structural technology could become a four-door convertible.

The second element is that a lot of those structural discoveries can also be

used on a two-door convertible because any convertible has an inherent

challenge in keeping the body as stiff as you would like it to be.

And the third element relates to the top system. Because we are trying to

package an enormous top into a very small package, we have a patent-

pending, inward-folding top mechanism which basically allows you to take a 2-

metre-long top and package it into a 0.5-metre space. That again can be

applied to smaller two-door convertibles. So on the 300 Hemi C production we

didn’t change the rear decklid at all to package that top. When the top is down

and you open the trunk, you can put four golf bags plus a few small suitcases.



j-a: And you are targeting baby boomers for this system?

Jeff Steiner: Yes. Those consumers in their late 40s and early 50s are the

prime age to have a vehicle like this. We see a tremendous amount of wealth

in the US among that demographic group who are looking for fun vehicles.

j-a: What are the considerations you give when setting out to develop such a concept? I.e. for any company, this type of activity costs a lot of money and it also means you have to ramp up your skills as a supplier at the consumer level as well.

Jeff Steiner: We measure innovation not on the number of cool ideas we

create but on the cool ideas created that actually have true market value. We

use a process called Planned Innovation. It means you spend a lot of time

understanding the market need and target price in order for that to be

successful in the market. Once we establish that, we then have greater

confidence in spending serious money on engineering and developing it. The

Helios project started in November 2003 with the goal of showcasing it just

over a year later at the Detroit auto show in January 2005. Following the

Planned Innovation process, we took just over two months of upfront study of

setting the technical and financial targets in order to determine whether or not

it was possible to engineer a four-door convertible. We then invested some

heavy money to initiate the engineering work and prove out our theory. There’s

no point in spending US$10m on two really cool ideas only to discover that

nobody wants them.

j-a: What are the trends you are seeing in sunroof designs? Jeff Steiner: I think the general observation is that bigger equals better. The

challenge is weight: you are putting more weight on the roof, which for SUVs

and high centre of gravity vehicles is not a good thing. The second thing in a

lot of cases is the overall sun loading of a car. If you have a huge glass

panelled roof, that presents a problem from a heat-loading standpoint.

We are also seeing more combinations of fixed glass and moving glass roofs

because it is a feature that you need to experience. Once you experience a

vehicle with a lot of glass or an open-air vehicle and you can manage some of

the heat loads, you find that that is a very desirable feature that a consumer

wants for their next vehicle.



j-a: Do you have any plans for international expansion?

Jeff Steiner: We are looking at growth opportunities in Europe as well as Asia.

The Chinese and Korean markets cannot be ignored. But the European market

is more mature. There are some good and well-established players that are

similar to ASC that are located in Europe such as Pininfarina and Karmann.

We continue to have discussions with European automakers primarily about

opportunities that they have in Europe as well as in the US. And in order for us

to be successful in meeting their needs, we are evaluating either partnering

with or setting up our own operations that support those European OEMs,

primarily from an engineering and design standpoint. And then if the right

opportunity presented itself, also from a manufacturing standpoint. Time will

tell and opportunities will dictate whether we do that or not.

j-a: What was the background to ASC’s decision to split the 50/50 joint venture with Germany’s Edscha, known as Premier Roof Systems?

Jeff Steiner: Edscha is a very reputable company. The joint venture was

formed in the US to supply BMW. Whenever you have a joint venture formed

by two companies in a market place where both have chosen to compete, it

becomes a challenge to manage that venture. It came to a point where both

companies were not putting in their best resources or effort into that particular

facility. We agreed that in order for that facility to continue to grow and

maintain good customer relationships with BMW, the best thing was to split it

into either a wholly-owned ASC component or Edscha component. We

mutually concluded that it made sense for Edscha to purchase that joint

venture.

In a news release issued in January 2005, Edscha said: “Two and a half years

after the BMW Z4 went into production, Edscha is now running the plant and

the project on its own. For Edscha the takeover not only signifies noticeable

efficiency potential in the organisation and production of the current roof

project, it also represents the commitment of the Convertible Roof Systems

Division to the North American market and its intention to further increase its

share of currently 20% in this market.”



Bertone The Italian coachbuilder has built a number of prestigious models, including

the BMW C1, Citroen Berlingo, Fiat Punto cabriolet, Citroen Xantia and ZX,

and Daewoo Espero. In 2003, Bertone unveiled a new sports car concept

based around the BMW Z8, called the Birusa. The concept features a number

of novel technologies such as voice-activated door and sunroof opening.

Car Top Systems The German convertible roof specialist, Car Top Systems (CTS) was founded

as a 50/50 joint venture between Porsche and DaimlerChrysler in 1996. In

September 2003, Porsche purchased the remaining 50% shares from

DaimlerChrysler, making CTS a wholly owned subsidiary. CTS generated

sales of €420m in 2004 and produced some 190,000 roof systems.

Edscha Germany’s Edscha has strong positions in convertible roof systems, driver

controls (pedal boxes and parking brakes), sliding roofs for trucks and vehicle

design markets. Owned by EdCar Beteiligungs GmbH, Edscha operates from

25 sites worldwide. Edscha develops and manufactures soft-tops and hard-

tops for a number of convertibles in Europe, including the Audi TT, BMW 3

Series, Opel Astra, Smart roadster, BMW Z4 and 6 Series Convertible. In

2004, the company began supplying the roof of the Chrysler PT Cruiser

Convertible. Edscha is currently preparing a further six convertible roof designs

for series production. In 2004, Edscha produced 190,000 roofs. The company

has doubled its production in the last two years and quadrupled it in the last

five. Today, Edscha claims a 25% share of the European convertible roof

systems market and a 20% share of the North American convertible roof

systems market. Edscha’s acquisition of Premier Roof Systems has also

resulted in an increase in its market share with BMW. With the 3 Series, 6

Series and Z4, Edscha now supplies 100% of the current convertible model

range.

Heuliez The French specialist in body-in-white and niche vehicles, Heuliez has

produced more than 415,000 complete vehicles over the last 25 years. The

company generated sales of €500m in 2004. Headquartered in Cerizay,

France, Heuliez employs 2,700 people. The company operates a production

facility in Cerizay, a JIT assembly shop in Mojados, Spain. A production facility

in Slovakia is scheduled to open in December 2005. The company also



operates a development centre in Le Pin (France), a design office and

showroom in Paris (Massy), a liaison office in Detroit and Tokyo and a

subsidiary company in Seoul, Korea.

Inalfa Inalfa Roof Systems, one of the largest roof systems suppliers, develops and

manufactures equipment for cars and trucks for most OE manufacturers.

Headquartered in Venray, the Netherlands, Inalfa Roof Systems employs

1,500 people at its operations in the US, Brazil, the Netherlands, UK, France,

Italy, Japan and South Korea. Technical centres in Venray (the Netherlands)

and Auburn Hills develop ever larger and more complex roof systems. Recent

innovative products are the rear sliding roof system of the GMC Envoy, the

multifunctional roof system for the Citroën C3 Pluriel and the BMW X3’s twin

panel panorama roof.

Karmann Wilhelm Karmann GmbH designs and develops cars in close co-operation with

its OEM customers. The company also produces stamped parts, bodies-in-

white and convertible tops. Headquartered in Osnabruck, Germany, Karmann

employs 8,750 people, of which just over 7,000 are based in Germany.

Karmann has won a prestigious contract to supply the convertible roof for the

next Chrysler Sebring, another success for European roof suppliers building

business in North America. Based on sales of 40,000 units, the deal will be

worth US$14m a year, rising to US$60m if Karmann also succeeds in getting

the business for an optional folding hard-top.

Pininfarina The Italian coachbuilder Pininfarina made its name originally as a styling

house, but it is increasingly known as a niche vehicle manufacturer. The

company is promoting its backroom engineering skills, and has formed an

engineering division with a dedicated facility near Turin to gain new business.

In late 2004, Pininfarina exited the joint venture with Webasto, known as

OASYS, (or Open Air Systems). Webasto has purchased Pininfarina’s stake in

OASYS, making it a 100% affiliated company. OASYS remains an exclusive

supplier to Pininfarina.



Webasto Webasto's US roof systems business already dominates the local sunroof

market, but the company is planning to further increase its market share and

expand into new areas such as convertibles and body systems. The

company's recent display vehicle, the Welcome 2, sports a large sunroof, a

retractable boot lid, retractable tailgate, sliding cargo bed system and an

electric boot scraper that emerges from underneath each door. A major part of

the company's growth strategy will be in convertibles, despite the fact that US

demand has softened in recent years. Webasto aims to design convertibles

that will retract during driving and retractable roofs that will incorporate

sunroofs. Demand for the UltraView roof, fitted to the Cadillac SRX, is strong

and Webasto has a new plant in Lexington, which will supply the roof system

for the Mercedes GST cross utility plus other systems for Chrysler and

Hyundai.

Mergers, acquisitions and joint venture activity

In 2004, ArvinMeritor formed a 50/50 joint venture between its Light Vehicle

Systems business group and Chinese auto parts supplier Shanghai SIIC

Transportation Electronic Company Ltd. The joint venture, named Shanghai

ArvinMeritor Automotive Parts Company Ltd, manufactures sunroofs for

Shanghai Volkswagen at a facility in Shanghai.

In January 2005, Edscha took control of Premier Roof Systems LLC, the US-

based joint venture with ASC Inc (as noted above). This venture has been

renamed Edscha Roof Systems LLC. In late 1999, ASC and Edscha joined

forces at the request of BMW to work on the roof system of the BMW Z4

roadster. ASC was the incumbent North American convertible roof supplier for

the Z3, the Z4’s predecessor built in the US. Meanwhile, Edscha was (and still

is) a supplier of convertible roofs to BMW with experience expertise in latches,

complex roof movement sequences, lightweight construction and drives. In

August 2000, Premier Roof Systems was set up as a 50/50 joint venture. A

year later, the partners opened a manufacturing facility in Greer, near the

BMW plant in Spartanburg, South Carolina, US.

In 2004, Pininfarina exited its 50/50 joint venture, OASYS, with Webasto.

OASYS manufactures retractable hard-tops at operations in Stockdorf,

Germany and Turin, Italy. OASYS developed the roof system for the Mini



Cabriolet and it has been developing the retractable hard-top for the Golf-

based Volkswagen Cabriolet. Webasto has purchased Pininfarina’s stake in

OASYS, making it a 100% affiliated company. OASYS remains an exclusive

supplier to Pininfarina.

In explaining the decision to split the joint venture with Pininfarina, Webasto’s

Healy told just-auto: “We parted company on very good terms. We still have a

lot of ties with Pininfarina because of our existing contracts. This business

[OASYS] is going very well in Europe with a lot of innovative products coming

out. Our strategy was to initially entrench ourselves in Europe before moving

into other regions. OASYS’ activities in North America will certainly increase in

the next two years. We are preparing ourselves for the next contracts that

come up.”

In 2002, Webasto AG became a major supplier in the US sunroof market

following its purchase of Magna International Inc’s 50% stake in Webasto

Sunroofs Inc, of Rochester Hills, Michigan. The purchase ends a 16-year joint

venture between Webasto and Magna. Two months later, Webasto

consolidated its aftermarket business in the US. Webasto Sunroofs Inc and

Hollandia Sunroofs Inc merged to become Webasto-Hollandia North America

Inc of Brighton, Michigan. Hollandia had been the North American distribution

channel for Vermuelen Hollandia Sunroofs of the Netherlands. The Magna

deal also allowed Webasto the freedom to separate the aftermarket division

and consolidate it with Hollandia.

In 2003, Webasto acquired Genion Fahrzeugtechnik GmbH, a developer of

vehicle roof systems. Genion is based in Gaimersheim, near Ingolstadt with

branches in Wolfsburg and Sindelfingen. The company employs 80 people and

generated sales of €10m in 2002.

In 2004, Webasto and Indian automotive component major Sumi Motherson

set up a joint venture to make sunroofs. The initial investment is pegged at

€1.5m and the joint venture partnership is 51/49 in favour of the German firm.

The assembly unit is based in Noida, near Delhi, though the plan is to use

Motherson’s existing facilities across India in future. The company has already

launched a range of sunroofs in India under the Hollandia brand name with

prices varying between €245 for a simple, pop-up, manual operation and

€2,725. The joint venture plans to take the franchise route for distribution. The

management believes that they can achieve 10% fitment in all new cars sold.



Guenther Schwanitz, GM-emerging markets for Webasto AG, said: “India

holds a lot of potential for automotive lifestyle products and we will supply

sunroofs for any car from a Maruti to a Maybach.” India has not been a strong

market for sunroofs and Webasto is the first major brand to enter the market.

Capital investment activity

In 2003, Car Top Systems expanded its facility in Bremen, Germany to

accommodate the next generation of Mercedes-Benz SLK retractable hard-top

roof systems.

In 2003, Inalfa Roof Systems USA opened a new assembly plant in Grand

Blanc, Michigan, to make tilt/slide sunroofs for the new Chrysler 300C sedan

and Dodge Magnum, assembly of which began in Brampton, Canada, in

January 2004. The company also supplies sunroofs for the Dodge Ram

Pickup, Jeep Grand Cherokee and General Motors GMT 800 pickup line.

In 2003, Webasto Roof Systems Inc opened a 200,000-ft² facility in Lexington,

Kentucky. The US$28m plant is the company’s second assembly facility in

Lexington, located directly across the street from its current 115,000-ft² plant.

The plant produces automotive roof systems that require the encapsulation of

large glass assemblies. In Asia, Webasto is expanding its manufacturing

presence. The company has opened a second factory near Seoul, South

Korea. Webasto has also expanded its manufacturing capacity in Shanghai,

first for sunroof systems. In Palmela, Portugal, Webasto is building a

production facility. The site is located on the VW Autoeuropa supplier park,

south of Lisbon. The €34m facility will produce complete roof systems for VW,

creating 170 jobs.

Market shares

For some time, the ‘big three’ sunroof makers – Webasto, ArvinMeritor and

Inalfa – have collectively dominated the OE vehicle sunroof market. The

German group Webasto still claims to lead the global sunroof market with a

39% share, followed by Inalfa and ArvinMeritor.



Figure 1: Global market shares for vehicle sunroofs, 2004 (% of production volume)

39%

25%

15%

21%

Webasto

Inalfa

ArvinMeritor

Others

Source: just-auto.com

Aisin Seiki leads the Japanese OE sunroof market, closely followed by

Webasto. ArvinMeritor has around 5-10% of the Japanese sunroof market.

Other leading suppliers are Ohi Seisakusho (supplying Nissan), and Yachayo

(supplying Honda).

The blossoming Chinese sunroof market is led by Webasto, followed by Aisin

and Inalfa. From the end of 2006, Inalfa Roof Systems will supply the sunroofs

for the Cadillac STS to SGM in China. This is the first order for Inalfa Roof

Systems to GM in China. In the US, Inalfa already supplies the Cadillac STS

sunroof to GM North America.

Inalfa Roof Systems has also won an order to supply the sunroof for the next

Nissan X-Trail. Production is scheduled to commence in August 2006. With an

initial annual production volume of over 100,000 units, thus is the second

largest sunroof volume of all models in Nissan. It is a joint project between

several Inalfa companies, led by Nihon Inalfa. The Japanese office is

responsible for the overall programme management. The development is

carried out at Inalfa’s largest technical centre at its headquarters in Venray, the

Netherlands. Assembly will take place at the Kyunggi-Do plant of Inalfa Roof

Systems Korea. This order, together with the Maxima, Titan, Armada and

Quest sunroof business in North America, establishes Inalfa Roof Systems as

a major supplier to Nissan.



In Australia, Webasto claims to have 90% of the sunroof aftermarket,

distributing a range of products through its own subsidiary. In addition, the

company sells a number of sunroofs to HSV (Holden Special Vehicles).

In the European market, Webasto leads the OE market for sunroofs, followed

by Inalfa and ArvinMeritor.

Figure 2: European OE market shares for vehicle sunroofs, 2004 (% of production volume)

43%

29%

20%

8%

Webasto

Inalfa

ArvinMeritor

Others


As far as the European sunroof aftermarket is concerned, manufacturers point

out that it has more or less collapsed following laws being enforced by the car

industry forbidding dealers to cut a hole in a car’s roof after it has left the

factory. There are concerns by the vehicle makers that the safety of the vehicle

will be compromised if a hole is cut in the top of it. Although suppliers can still

fit sunroofs as a retrofit item, the cost of cutting through the red tape makes it

prohibitive.

In North America, Webasto is the number one supplier of OE sunroofs,

followed by ArvinMeritor and Inalfa Roof Systems USA. Collectively, these

three suppliers have three-quarters of the US OE sunroof market. Aisin Seiki

supplies sunroofs to Toyota.



Figure 3: North American OE market shares for sunroofs, 2004 (% of production volume)

40%

19%

15%

5%

21%

Webasto

ArvinMeritor

Inalfa

Aisin Seiki

Others


Market forecasts

Sunroof market Table 1 sets out just-auto’s estimates and forecast for OE conventional-size

sunroof fitment to all new light vehicle applications in Western Europe, Japan,

and North America through 2011. just-auto estimates that vehicle makers

across the triad region installed just over 6m sunroofs alone in 2004, up from

396,000 in 1990. In the US alone, installation rates for sunroof systems have

grown from 5 – 10% in 1990 to almost 30% in 2004 as demand grows for

larger, more complex roof systems.

One of the main reasons for this growth in the roof systems market is due to

the popularity of sport utility vehicles (SUVs). As drivers traded in their

passenger cars for SUVs, they brought along their demand for sunroofs. In

2004, Inalfa Roof Systems USA opened a new assembly plant in Grand Blanc,

Michigan to make sunroofs for the new Chrysler 300C sedan and Dodge

Magnum. This facility soon began making sunroof systems for the Dodge Ram

Pickup, the Jeep Grand Cherokee and the General Motors GMT 800 pickup

line.

In determining demand for sunroofs fitted as original equipment in North

America and Europe, Eddy Van Der Vorst, business development director for

Inalfa Roof Systems, told just-auto: “In both continents fitment rates are rising,

especially due to the increased demand for panoramic sunroofs. In the US, the



market of pick-up trucks has just begun to be fitted with OEM sunroofs, which

gives another push in the demand. Inalfa Roof Systems US supplies three of

the five big selling pick-up trucks in the US at this moment. However the

booming European panoramic sunroofs have not yet experienced their

breakthrough in the US.”

Table 1: Production of conventional-size sunroofs for light vehicle applications in Western Europe, Japan, North America, 2000-2011¹ ² (Units, ‘000s)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Western Europe 2000 2040 2081 2122 2165 2208 2252 2297 2343 2390 2438 2487

Japan 1800 1818 1836 1855 1873 1892 1911 1930 1949 1969 1988 2008

North America 1900 1938 1977 2016 2057 2098 2140 2183 2226 2271 2316 2362

Total 5700 5796 5894 5993 6095 6198 6303 6410 6518 6630 6742 6857

¹ Includes all types of sunroof although majority are tilt and slide variety.

² Even though the European sunroof market continues to shrink, please bear in mind that some of

the European production is exported to the US.


Table 2 sets out just-auto’s estimates and forecasts of the market value of OE

conventional-size sunroofs across Western Europe, North America and Japan.

In calculating these figures, we have assumed an ‘average’ wholesale (factory

gate) price of a sunroof in 2001 as US$170 for each region. That is based on

the fact that a standard manual powered sunroof costs the OEM approximately

US$130 whereas a powered sunroof costs US$190. Given that about 80% of

vehicle sunroofs across Europe are electric and 20% are manually operated,

we have weighted the average price toward the powered sunroof. US-based

vehicle makers are also using powered sunroofs as another way in which to

differentiate their cars from competing models.

Overall, just-auto estimates the triad regional market for passenger car and

light truck OE sunroof applications was worth nearly US$1m in 2000. That

figure could reach US$1.16m by the end of the decade.



Table 2: Market value of conventional-size sunroofs for light vehicle applications in Western Europe, Japan, North America, 2000-2011 (US$ ‘000s)

2000 2001 2002 2003 2004 2005

Western Europe 340000 346800 353736 360811 368027 375387

Japan 306000 309060 312151 315272 318425 321609

North America 323000 329460 336049 342770 349626 356618

Total 969000 985320 1001936 1018853 1036078 1053614

2006 2007 2008 2009 2010 2011

Western Europe 382895 390553 398364 406331 414458 422747

Japan 324825 328073 331354 334668 338014 341395

North America 363750 371025 378446 386015 393735 401610

Total 1071470 1089651 1108164 1127014 1146207 1165752


While table 2 above considers the conventional sunroof market – most of

which are tilt and slide or spoiler designs – table 3 below sets out just-auto’s

estimates and forecasts for the size of the large sunroof market. We estimate

that just over one million large (panoramic) sunroofs were produced in 2004

across Western Europe, Japan and North America. That figure could more

than quadruple by 2011. All roof manufacturers predict massive growth in large

sunroofs worldwide. In an exclusive interview with just-auto, Brett Healy, vice

president of business development planning for Webasto Roof Systems

explained how the company is aiming to grow in the North American sunroof

market. He said: “The first step is to sell more of what you have. That is

working for us. At an industry level, approximately 25% of new vehicles come

equipped with sunroofs. We are above that in the projects, we sell actually

closer to 30%. We see that increasing by about 2% per year. Our mission is

50/50 2010. That means 50% fitment rate with a 50% market share for sunroof

systems in North America by 2010. Will we hit that? I’m not sure but it is

tracking very positive.

“The second step is that our customers are starting to look at roof systems in

three categories. The first category is a traditional sunroof in which our



customers are beginning to respond to our recommendations to ‘commonise’,

i.e. use the same sunroof on many vehicles. That way we can give them better

prices because of leverage. Quality goes up, too. We are now seeing that

consistently across multiple customers. Secondly, we see the growth of

panorama roofs in North America.

“And then there is a new niche which falls in between a traditional sunroof and

a full panorama roof system. We call it a bottom load big roof. It typically has

moving glass in the forward passenger area and fixed or moving glass in the

rear passenger area. It is a unit which installs from underneath which is more

traditional to a normal sunroof. We believe this will be the fastest area for

growth.

“Over the next two car cycles, we see the majority of applications being

traditional sunroofs, although the share of these bottom load big roof and

panoramic systems is increasing very fast.”

Table 3: Production of large sunroofs for light vehicle applications in Western Europe, Japan, North America, 2000-2011 (Units, ‘000s)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Western Europe 20 42 105 220 330 416 524 660 832 1048 1320 1664

Japan 18 38 100 210 330 396 475 570 684 821 985 1182

North America 19 40 115 250 405 494 603 735 897 1095 1335 1629

Total 57 120 320 680 1065 1306 1602 1966 2413 2964 3641 4475


The following table sets out just-auto’s estimates and forecasts of the market

value of OE large sunroofs across Western Europe, North America and Japan.

In calculating these figures, we have again assumed an ‘average’ wholesale

price of a large sunroof in 2000 as US$600 for each region. As volumes

increase, unit price will inevitably fall.



Overall, just-auto estimates the triad regional market for passenger car and

light truck OE large sunroof applications was worth US$34.2m in 2000. That

figure could reach nearly US$2bn by 2011.

Table 4: Market value of large sunroofs for light vehicle applications in Western Europe, Japan, North America, 2000-2011 (US$ ‘000s)

2000 2001 2002 2003 2004 2005

Western Europe 12000 24444 59277 120473 175288 214237

Japan 10800 22116 56454 114997 175288 204035

North America 11400 23280 64922 136901 215126 254580

Total 34200 69840 180653 372371 565702 672852

2006 2007 2008 2009 2010 2011

Western Europe 261840 320021 391130 478039 584260 714082

Japan 237497 276446 321784 374556 435983 507485

North America 301270 356523 421910 499288 590857 699221

Total 800608 952991 1134823 1351883 1611100 1920787


Convertible roof market

Demand for convertibles worldwide is increasing. “We expect global demand

for convertibles will double over the next ten years,” said Dr Christian P Eick,

marketing & public affairs manager for Wilhelm Karmann GmbH, in an

exclusive interview with just-auto. “There are a number of reasons for that.

First, we see the retractable hard-top as additional demand. In other words, we

do not see a trade-off between soft-tops and retractable hard-tops. Second, we

are seeing convertibles becoming a ‘must’ in OEMs’ product line-up. There are

still a number of brands that do not yet have convertibles in their product line.

We expect to see that change over the next decade. By 2007, we expect to

have more retractable hard-tops than soft-tops in the world because [of] the

introduction of retractable hard-tops in the compact segment.



“On the other hand, we expect to see a solid proportion of certain luxury

models with soft-tops. VW has just disclosed that Karmann will develop partly

the body and deliver the roof system for the Bentley Convertible. This is also a

soft-top. Overall, however, we predict that the market for soft-tops will remain

stable while the proportion of retractable hard-tops will reach more than 50%

by 2015, up from 35% today.”

The French specialist in body-in-white and niche vehicles, Heuliez also

believes that the retractable hard-top market is set to blossom. “When the

Mercedes SLK appeared on the market seven years ago, the consensus was

that the retractable hard-tops technology would soon replace the conventional

soft-tops and will be exclusively dedicated to exclusive car segments,” said

Bernard Girard, director of Heuliez Deutschland and business development, in

an exclusive interview with just-auto. “But opinions have changed. Most people

would now agree that retractable hard-tops can be largely integrated in almost

all car segments and that it will not only be considered as the replacement of

the soft-top.”

Heuliez is in total agreement with Karmann with regard to the direction of the

convertible market. “We believe that the volume of convertible vehicles

equipped with soft-tops will progress slowly and almost stagnate,” added

Girard. “Today in Europe, 70% of the convertibles have a soft-top and only

30% have a retractable hard-top. We believe that this ratio will be inversed in

2010. Parallel to this, the volume of convertible vehicles in general will rise. In

2003, the sales of convertibles in Europe have increased to reach 2.5% of the

total volume of cars. This part was only 0.8% in 1990. If this growth continues,

we can expect in 2010 a volume of convertibles increased by almost 6% in

comparison with today. Some 70% of this recalculated volume should be

equipped with a retractable hard-top. There are sceptics about the application

of retractable hard-tops to large roofs, involving multi-part complex roof

systems. Today, the big unknowns are cost and reliability of such systems. As

these larger vehicles will be launched soon, these factors will have a big

influence on the evolution of the retractable hard-top through this decade.”

On that basis, just-auto estimates that there were some 390,000 convertible

systems produced in Europe in 2003, of which 260,000 were soft-tops,

100,000 retractable hard-tops and 30,000 one-piece hard-tops. By 2008, we

forecast that some 585,000 convertibles will be produced in Europe, of which



200,000 will be soft-tops, 350,000 retractable hard-tops and just 35,000 one-

piece hard-tops.

The convertible market in North America is also blossoming. In 2003, just-auto

estimates there were some 344,000 convertible systems produced, of which

290,000 were soft-tops, 30,000 retractable hard-tops and 24,000 one-piece

hard-tops. By 2008, we predict that some 525,000 convertibles will be

produced in North America, of which 340,000 will be soft-tops, 170,000

retractable hard-tops and just 15,000 one-piece hard-tops. It should be noted

that these estimates and forecasts differ from just-auto’s second edition of this

report title. The second edition was sourced to a single company. Table 5,

however, has been completely revised based on estimates from a number of

sources as well as just-auto’s own database.

Table 5: Production of convertible roof systems in Europe and North America, 2003 and 2008 (units)

Europe North America

Soft-tops Retractable hard-tops

One-piece hard-tops Soft-tops Retractable

hard-tops One-piece hard-tops

2003 260,000 100,000 30,000 290,000 30,000 24,000

2008 200,000 350,000 35,000 340,000 170,000 15,000


Furthermore, the latest year-end figures from ACEA, the European carmakers’

trade association, confirm that coupe/convertibles are taking market share

away from soft-tops and coupes thanks to new models such as the Renault

Megane CC and Opel Tigra. France's PSA has driven the boom with its

Peugeot 307CC and 206CC, both with folding steel roofs previously limited to

luxury cars such as the Mercedes SL. The Peugeot 206 CC was Europe's

most popular convertible in 2003, with sales of around 60,000 units, followed

by the Citroen C3 Pluriel and the BMW Z4 (both with sales of around 23,000

units). In terms of resale value, the Peugeot 206 CC is said to be third in its

category, behind the Mercedes-Benz SLK and SL.

Latest sales figures from the UK indicate that Britons are leading the rest of

Europe with regard to driving convertibles. The numbers reflect a ten-year



trend in which new convertible sales have grown from 17,706 units in 1994 to

an estimated 115,000 units in 2004.

Table 6: UK convertible car market registrations, 1994 – 2004

UK convertible registrations Total registrations % of market

1994 17,706 1,910,933 0.93

1995 22,510 1,945,366 1.16

1996 30,486 2,045,047 1.51

1997 44,078 2,170,725 2.03

1998 46,334 2,247,402 2.06

1999 45,973 2,197,615 2.09

2000 47,277 2,221,647 2.13

2001 59,679 2,458,769 2.43

2002 68,523 2,563,631 2.67

2003 98,316 2,579,050 3.81

2004¹ 115,000 2,580,000 4.46

¹ estimates

Source: SMMT

The UK sells roughly three times more convertibles than either France or Italy.

Only Germany, by far the largest market for new cars, sells more convertibles

each year but their 32% growth in the market since 1999 is still dwarfed by the

UK’s hike of 114%.



Table 7: European convertible vehicle registrations, UK, Germany, France, Italy and Spain, 1999 – 2003

1999 ¹ 2000 ¹ 2001 ¹ 2002 2003 Volume increase²

UK 46,000 47,000 60,000 68,523 98,316 52,000

Germany 106,000 111,000 117,000 118,833 140,083 34,000

France 13,000 15,000 36,000 28,528 33,304 20,000

Italy 16,000 19,000 24,000 24,010 31,663 16,000

Spain 4,000 4,000 10,000 9,665 7,633 4,000

Total 185,000 196,000 247,000 249,559 310,999 126,000

¹ Based on ACEA figures for convertible models’ market share, rounded to the nearest thousand

² Based on year-end 2003 minus year-end 1999 totals, rounded to the nearest thousand.

Source: SMMT

Chapter 3 Technical review

Chapter 3 Technical review

Page 24


Roof trends

The roof systems are fast becoming part of a car’s identity. For example, the

most eye-catching design feature on the Citroen C3 Pluriel is the multi-function

roof system, which allows the car to be a cabriolet, spider, saloon and pickup.

The car industry has discovered that the roof is an area where they can make

money. Panoramic sunroofs stretching the length and breadth of a vehicle are

becoming increasingly popular on both sides of the Atlantic. In fact,

manufacturers report an “unbelievable” amount of interest in large sunroofs.

The trend is toward roof systems, mainly of glass, with big openings that can

be adjusted even during driving. These designs give the best of both worlds:

saving on cost (compared to a convertible) and adding to the versatility of the

car. Again, the owner of a Citroen Pluriel can modify the car to suit their needs,

and all at a much lower cost.

Citroen is not alone in roof innovations. In the US, an increasing number of

cars with panoramic glass roofs are being offered, notably the Pontiac G6 GT

with its four-panel glass sunroof (the same model Oprah Winfrey gave to XXX

members of her audience in a media stunt in September 2004.) The popularity

of large and expensive sunroof systems on US vehicles is soaring and they

are available as options on everything from a Mini to a Cadillac SRX. This

burgeoning new market offers suppliers a great opportunity to develop model-

differentiating and value-added products, which translate into higher profits for

them and OEMs.

Inalfa Roof Systems’ consumer research confirms demands for light and airy

cabins. In an exclusive interview with just-auto, Eddy Van Der Vorst, business

development director for Inalfa Roof Systems, said: “A clinic conducted in

cooperation with a customer and a research institute told us that the main

benefits consumers see in their sunroofs are sky view and a brighter

compartment. Consumers are starting to realise that air-conditioning is for

cooling and a sunroof is for light and fresh air.”

Van Der Vorst also points out some challenges of panoramic sunroofs in terms

of design and manufacture. He told us: “A glass roof becoming larger and

Chapter 3 Technical review Page 25


larger has a rising impact on the body structure. This impact plays an

increasing role in sunroof design. Another aspect is the rising weight. Ways to

reduce weight of the roof module is thus the other challenge.”

Webasto reports that the classic slide-tilt sunroof remains one of the top-selling

products of its roof systems business, but the trend is towards large-scale

sunroof systems. Webasto supplies panorama roofs for the Renault Scenic,

Cadillac SRX and the Mini. The German roof supplier has also developed the

lamella roof for the Mercedes-Benz A-Class; for the first time, polycarbonate is

being used in its construction instead of glass. Webasto has already

developed a steel louvers roof.

With the latest polycarbonate roof, Webasto claims a weight saving (19kg

instead of 22.5 kg for a steel louvered roof). The composition of polycarbonate

material made it possible to create a more flexible shape, says Webasto. The

polycarbonate components can also be configured in three dimensions and

integrated into existing systems relatively easily. This results in design benefits

for the A-Class louvered roof. The plastic panel is bonded onto an aluminium

reinforcement frame, making each louver a stable, load-bearing unit. The

louver surfaces are tinted grey and protected against scratching by a

polysiloxane coating. The surface coating is subject to the same resilience

requirements as the vehicle framework. The net result is a 928 x 850 mm roof

with transparent louvers. Two individually operated manual blinds made from a

semitransparent material keep the amount of isolation within reasonable limits

when the roof is closed. When the blinds are closed with the roof open, they

form a wind barrier to protect the occupants from draughts. The scratchproof

external coating is resistant to UVA, UVB and UVC, therefore providing the

passengers with additional protection against the sun.

The designers paid special attention to the seal integrity and low noise when

developing the louvred roof. For example, the gaps between the louvers are

equipped with a special triple seal system that, in conjunction with the water

management function, provides protection against moisture penetration into

the car. An aerodiffusor and a wind deflector louver also protect against wind

noise at high speeds.

In Europe, the market for panoramic glass roofs is blossoming with suppliers

preparing for increased demand. For example, Spanish supplier Grupo Antolin

recently won important new panoramic roof contracts from GM and PSA and



this business now forms the fourth key business area for the company. Antolin

sold 20% of its shares to Spanish banks to raise the €80m needed to get into

the market and compete with rivals such as ArvinMeritor and Webasto. It sees

panoramic roofs as an important new trend and will supply the new Astra

Coupe and new Citroen Picasso minivan in 2005 and 2006 respectively.

Retractable hard-tops

Another area of roof design gaining increasing attention is retractable hard-

tops. Several coachbuilders have perfected the art of folding the metal.

“We believe that innovation and creativity in the field of retractable hard-tops

should not focus on complexity but much more in simplicity, manufacturability

and reliability,” said Bernard Girard, director of Heuliez Deutschland and

business development. “We have demonstrated this with the Opel Tigra

TwinTop, developed and produced at Heuliez. The innovations of this car are

not in the roof kinematics but in the packaging of the roof into the car and in its

modular plug and play assembly concept. We believe that there is great

potential for integrating very simple roof systems into very innovative

packaging. This will be the best way to develop the market.”

In June 2004, Heuliez began producing the Opel Tigra TwinTop two-seater

roadster equipped with a retractable hard-top at a rate of 210 vehicles per day.

Some specific novel design elements of this retractable hard-top include:

○ The two roof elements do not fold completely one over the other, but keep

an open area which enables a ‘cargo area’, accessible from the passenger

compartment.

○ The rear window element folds diagonally behind the seats, optimising the

luggage space and loading diagonal: the folded roof elements do not use

the entire length of the trunk and the luggage space height remains

unchanged.

○ Fully automatic deck lid opening.

○ Combined hinge/latch units in the front and back of the deck lid. The same

mechanisms are used for both front and rear opening movements.



○ A rigid panel separates the folded roof elements in the boot from the

luggage area. This separation panel is adjustable and allows extra luggage

space in the coupe position.

○ The roof is controlled by an electro-hydraulic unit and opens in just 18

seconds.

Figure 4: Opel Tigra TwinTop

Source: Opel

Girard added: “There were two main reasons why Opel selected Heuliez for

the Tigra. First, because they had decided to launch a convertible based on an

existing platform, they were looking for a company that could demonstrate the

expertise of engineering and manufacturing derivatives. That means an

engineering and manufacturing derivative based on an existing platform

thereby minimising the associated investments and maximising the potential

for carryover components. [In other words,] use as many of the components

and elements of the existing car. We have been developing derivatives for

Citroen Peugeot for many years.

“Secondly, we also have experience, expertise and creativity in the field of

retractable hard-tops. Regarding creativity, Heuliez has filed more than 160

patents in this field. On the other hand, Heuliez has already been

manufacturing more than 325,000 retractable hard-top modules of the Peugeot



206 CC since the production launch of this vehicle in September 2000. This

production volume is today unique in the field of retractable hard-tops.”

Meanwhile, Inalfa Roof Systems has developed and is assembling two

separate sunroof systems for the new Renault Modus, a combination of

supermini and mini-minivan attracting acclaim in Europe for its flexible cabin

layout and ingenious touches such as an available boot access hatch in the

rear tailgate. With a glass surface of more than 1400mm x 900mm, the

optional exterior sliding roof adds to the impression of spaciousness in the new

car. The transparent roof system covers almost the full roof panel and consists

of two flush-fitting panels. The rear panel is fixed; the forward panel can tilt and

slide open in three positions and the maximum opening is 500mm x 700 mm.

To minimise cabin heat, both glass panels are made of sun blocking glass and

two manually operated sunshades can be pulled across. When the roof is

opened a wind deflector unfolds to prevent wind noise.

Inalfa also developed a twin panel pop-up roof offered as an option for the

Modus. Two flush-fit glass panels can be tilted manually and independently, or

can be completely removed from their aperture. A bag behind the rear bench

seat stores the glass panels. The Renault Modus is one of the first of a new

generation of compact cars to be equipped with a large glass roof system that

can tilt and slide to create such a large opening. The two sunroof projects were

designed and engineered jointly by Inalfa and Renault, and both types were

based on proven Inalfa technology already in development and/or production

for Mercedes-Benz, BMW, Land Rover and other carmakers.

Webasto has also developed a new roof design. Based on a four-seater BMW

convertible, it combines the advantages of a coupé with sunroof with those of a

convertible. While driving along, says Webasto, the driver can open a large

glass sunroof and, depending on his preference and on the weather, can

electrically fold the whole roof away completely in top boxes. The luggage

room of the basic vehicle remains as unaffected as the silhouette of the

opened convertible. Wolfgang Thurow, board member responsible for roof

systems said: “The task we set ourselves was difficult, as you can imagine.

They had to combine all the advantages of different conflicting roof systems

without disadvantaging the car buyer. The result was a prototype based on a

BMW 3-Series convertible. Its particular strength is the practical synthesis of

convertible and sunroof, which brings benefits whether the roof is open or

closed.”



Convertibles

ASC used the 2005 Detroit motor show to reveal its four-door convertible, the

Helios (pronounced he-lee-ohs). The company claims that the Helios

represents a feasible prototype that could allow any carmaker to create the

first production four-door convertible in nearly 40 years. The last four-door

convertible, the Lincoln Continental Convertible, was discontinued in 1967. To

achieve the structural integrity required in a four-door convertible, ASC fitted a

novel cross-car steel bulkhead just behind the car’s front seats. The bulkhead

is attached to new half B-pillars positioned between the front and rear doors –

designed to keep the car solid and quiet as well as transfer the force of a side-

impact collision into the body of the car, rather than the occupants. New, front-

seat mechanisms allow the front seats to sit over the bulkhead, ensuring full

adjustment of the front seats. The 5’8” convertible roof system packs into the

area behind the rear seats allowing ‘ample room for carrying four, full-size golf

bags’ in the boot. The resulting vehicle is a four-door convertible that weighs

300 pounds more than a similar-sized large sedan.

ASC also used the 2005 Detroit motor showcase its GTO Stinger, a vehicle

model that could be offered by ASC as a dealer-upfit package by the end of

2005. Features include body panels using ASC’s new composites process,

including a new hood, wheel flares, custom two-piece fascias and two-piece

rocker panels. Other parts made using the company’s new carbon filter include

a spoiler on the deck lid, fascia inserts and appliqués on both exterior mirror-

surrounds.

Ford of Europe is to launch a production version of its Focus Vignale cabriolet

concept by the end of 2006. The concept, shown at the 2004 Paris motor

show, was designed by Pininfarina and features a retractable hard-top

designed and built by OASYS, the Pininfarina/Webasto roof systems joint

venture. Pininfarina will build the model in Turin with components sourced from

the Ford plant in Saarlouis, Germany. The Vignale is based on a four-door

version of the new Ford Focus.

Valmet Automotive displayed a new Audi A4 Coupe Cabrio concept at the

2004 Geneva motor show, with a fully automatic three-panel retractable hard-

top. The three panels are stacked parallel when the top is down. Most of the

design is a carry-over from the original A4 cabriolet including the A pillars and



windscreen, but the rear side windows have been lengthened to offer a better

rear view and allow more light into the cabin. Valmet's Technical Centre

completed the project in only three months.

Roof modules

Vehicle makers are gradually taking the idea of one-piece roof modules

seriously, and it seems only a matter of time before they are in widespread

use. Assembly advantages are impressive, as without its roof the unfinished

vehicle will offer much better access for interior assembly tasks, while bodies-

in-white can be further standardised as all roof options will come with the 'drop-

in' roof module. Webasto was the first supplier to manufacture a large roof

module, which it built for the Smart. It then began manufacturing a new

generation of convertible roofs.

ArvinMeritor’s Light Vehicle Systems division supplies complete roof modules

consisting of a roof headliner bound to an outer shell. These modules can

incorporate the sun visor, grab handles, interior lighting, antennae and

speakers. The company’s sunroof products include slide/tilt, spoiler plus, multi-

panel, spoiler and canvas models. The company’s powered sunroofs

incorporate such electronic control capabilities as anti-squeeze, remote control

roof closure, and advancements such as encapsulated glass and an integrated

water management system. The company says that all its sunroofs are

designed to offer low weight and noise and maximum headroom. The

company’s roof module is featured in the DaimlerChrysler Smart car. In

addition, in 2004 this LVS business was awarded two multi-year contracts to

supply major European OEMs with large-opening roof systems that individually

feature different roof technologies. One system features long fibre injection

technology (injecting a mixture of long glass fibres and a polyurethane resin

into a plastic mould, which reduces the weight of the roof), and the other

features full-glass appearance. “We are experiencing an increase in demand

for our large roof-opening systems, as consumers continue to seek more

lifestyle characteristics from their vehicles,” said Alberto Nadal vice president

and general manager of LVS Roof Systems.



Webasto has developed the roof module for the Opel Zafira. The support

frame of the roof module is manufactured using the roving process1 and

consists of polyurethane with a glass fibre content of 22%. The 2100 x

1100mm roof module features a special plastic foil that blends optimally with

the glass look, is scratch resistant and offers UV and temperature stability. If a

repair should be necessary, the foil can be painted over a large area. Minor

damage, can also be effectively eliminated by polishing. The glass panels

(measuring 1080 x 400mm) along the two sides of the roof are tinted. Four

electrically-driven sun blinds made from a translucent material are operated by

a switch in the front area of the frame. Five storage boxes of different sizes are

integrated in the middle part of the roof. The module is designed as a modified

top-load system for installation from above. Once at the vehicle assembly

plant, Opel welds in an adapter frame that replaces the standard steel roof.

The complete module is then attached to the adapter frame using PU

adhesive.

1 Term referring to combining spun glass fibres into strands (rovings) during the manufacture of

fibreglass.

Chapter 4 Manufacturers

Chapter 4 Manufacturers

Page 32


ArvinMeritor

ArvinMeritor is a worldwide supplier of sunroofs and roof system products for

use in passenger cars, light trucks and SUVs. Its roof system operation is

organised under the Light Vehicle Systems (LVS) division. ArvinMeritor’s LVS

business posted sales of US$X.Xm in 2004, employing XX,XXX workers at XX

facilities in XX countries.

LVS is a supplier of complete roof modules comprised of a roof headliner

bound to an outer shell using its patented process, which can also incorporate

LVS sunroof technology.

ArvinMeritor recently formed a Chinese joint venture with Shanghai SIIC

Transportation Electronic Co Ltd to make sunroofs for supply to Shanghai

Volkswagen in China. The new venture, known as Shanghai ArvinMeritor

Automotive Parts, will build the sunroofs for passenger car applications at a

plant in Shanghai.

Chapter 4 Manufacturers Page 33


Figure 5: ArvinMeritor’s roof module with sunroof

Constructed of lightweight, rigid, insert capable LFI (Long Fiber Injection) base material. Shown in

class “A” surface with an ArvinMeritor ‘B’ series sunroof. Top loading installation with polyurethane

or mechanical bonding.

Source: ArvinMeritor

ASC

ASC Incorporated (formerly known as American Sunroof Company and

recently redefined as American Specialty Cars) is a supplier of sunroofs,

convertible tops, niche vehicles and vehicle prototypes. ASC supplies

convertible systems and specialty vehicle components to most of the major

vehicle makers in North America, including GM, DaimlerChrysler, Toyota,

Ford, Mitsubishi and BMW. In June 2005, ASC built its one millionth

convertible. ASC also supplies 70% of all sunroofs for Honda vehicles

produced in North America through AY Manufacturing, its 50/50 joint venture

with Yachiyo.

ASC points out that it helps carmakers create specialty vehicles, including

halo, image and buzz models2.

2 According to ASC, halo models are all-new brand defining vehicles. Image models are vehicles

that can enliven an entire brand. Buzz vehicles invigorate an existing nameplate.



Headquartered in Southgate, Michigan, ASC has operations throughout the

US and Canada. ASC employs 1,250 people in 15 facilities, as follows:

○ Southgate, Michigan – Headquarters, Design, Modelling/Milling,

Fabrication, Engineering, IT

○ Warren, Michigan – GM-focused Design, Modelling/Milling, Programme

Management, Accessory Systems

○ Auburn Hills, Michigan – Chrysler-focused Design, Modelling/Milling,

Fabrication, Composite Systems

○ Huntington Beach, California – ASC West Coast Design and Technical

Centre (opened February 2005)

○ Livonia Michigan – Paint and finishing

○ Gibraltar, Michigan – Accessory Systems, Composite Systems

Manufacturing, Service Parts Operations

○ Lansing, Michigan – Composite Manufacturing, Topstack Assembly

○ Oak Park, Michigan – Complete Specialty Vehicle Development and

Fabrication

○ Normal, Illinois – Mitsubishi-focused Topstack Manufacturing

○ Bowling Green, Kentucky – Composite Systems Manufacturing, Paint and

Assembly

○ Wilmington, Delaware – Vehicle Entertainment System Assembly and

Installation

○ Doraville, Georgia – Vehicle Entertainment System Assembly and

Installation

○ Spartanburg, South Carolina – BMW-focused Topstack Assembly

○ Lachine, Quebec, Canada – Specialty Vehicle Conversion

○ Cambridge, Ontario, Canada – Two Stage Vehicle Conversion, Topstack

Assembly and Installation

In May 2002, the family of ASC’s late founder, Heinz Prechter, agreed to sell

the company to Questor Partners Fund II. Questor is a private equity fund

headed by turnaround expert Jay Alix. ASC is now 100% privately held by

Questor Funds.

The company claims a number of ‘firsts’ including:

○ First retractable hard-top on a truck chassis

○ First modern retractable hard-top

○ First outwardly folding convertible top



○ First factory-installed mobile entertainment system (VHS/DVD)

○ First factory-installed power sunroof in North America

○ First inwardly folding convertible top

○ First rail-to-rail sunroof

○ First glass-panel sunroof

Bertone

During the 1990s, the Italian coachbuilder built a number of prestigious

models, including the BMW C1, Citroen Berlingo, Fiat Punto cabriolet, Citroen

Xantia and ZX and Daewoo Espero.

In 2003, Bertone unveiled a new sports car concept based around the BMW

Z8, called the Birusa. The exterior design is inspired by the classic Italian GT

form, and the vehicle uses the all-aluminium Z8 chassis stretched by 350mm,

with the BMW V8 engine and six-speed gearbox. The concept features a

number of novel technologies, such as voice-activated door and sunroof

opening, a Valeo night vision system and a Segway Human Transport vehicle

stored in the boot. The double sunroof has been developed with Inalfa and

features two large sliding panels that fold and disappear under the boot. The

panels are made of heat-resistant glass laminated with PVB film allowing light

into the interior while screening out UV rays.

Bertone recently presented the CARousel, a novel interior concept

characterised by its flexibility of use. It allows the driver to select certain driving

positions and controls. The seats are fixed to a rotating base, which offers the

choice of a driving position on the right, on the left or in the centre. It is also

possible to choose how to drive: there are no pedals. Instead, the two driving

controls give the option of a special foldable steering wheel, which is stowed

under the seat or a joystick control positioned on the right and left armrest.

Car Top Systems

The German convertible roof specialist, Car Top Systems (CTS) was founded

as a 50/50 joint venture between Porsche and DaimlerChrysler in 1996. In

September 2003, Porsche purchased the remaining 50% shares from

DaimlerChrysler, making CTS a wholly owned subsidiary.



CTS generated sales of €420m in 2004 and produced some 190,000 roof

units.

In September 2004, the company celebrated the production of its 500,000th

retractable hard-top since the company was founded. The assembled roof was

an electrohydraulic folding top for a silver Peugeot 307CC. In 1996, CTS

began with the production of the first fully automatic retractable hard-top for the

Mercedes SLK. This was followed in 2001 with the vario top for the Mercedes

SL, also a retractable hard-top. In 2003, the production for the Peugeot 307

CC and the Cadillac XLR retractable hard-tops began.

Headquartered in Hamburg, Germany, CTS develops and manufactures

vehicle roof systems for many major vehicle makers worldwide. Its product

portfolio consists of all relevant types of vehicle roof systems: soft-tops, hard-

tops, retractable hard-tops and roof modules. CTS manufacture’s hard-tops for

the following vehicles:

○ Peugeot 307 CC – a retractable hard-top system. Notable features with

this roof system are that the hydraulic actuator is integrated in the roof

module. The roof frame components of sheet metal.

○ Mercedes-Benz SL – a panorama vario roof system. Novel features

include a rotating roof concept for optimisation of the boot volume in the

top down position. The hydraulic actuator for the secondary function

(inverse decklid opening and auxiliary loading function) is integrated into

the roof module.

○ Mercedes-Benz SLK Class – a vario roof system. In order to optimise the

boot volume in the top down position, the SLK uses a rotating window

concept similar to the SL. When opening the roof, the rear window rotates

so that it is stored with the curvature upwards underneath the top front

section. As a result, a compact roof package and improved loadability of

the vehicle in the top down position is achieved.

○ Cadillac XLR – a retractable hard-top system. The quarter windows are

integrated into the roof system and fold between the roof panels when

opening the roof.



The company also produces soft-top systems for these vehicles:

○ Porsche 911 – a powered retractable soft-top and tonneau cover. Claimed

design benefits include the lightweight top allowing for a lower centre of

gravity within the vehicle and therefore higher agility and improved driving

dynamics.

○ Porsche Boxster – a powered soft-top and tonneau cover. The top

features a light magnesium design and the roof bows are aluminium. The

roof module includes the rollover bar and the backing system.

○ Saab 9-3 – novel features of this automatic soft-top include roof frame

parts consisting of magnesium die cast and are painted to match the

vehicle interior. The roof module includes the top cover box and the drive

for the foldable top cover box.

○ Chevrolet Corvette – a powered retractable soft-top and tonneau cover.

The innovative features include; the front roof bow is a large aluminium die

cast part; both centre and rear side rails are magnesium thixo moulded

components.

○ Ferrari 360 Spider – a powered retractable soft-top and tonneau cover.

Novel features include a top storage (double folding) with folding of the

window to the outside/back in order to offer a particularly compact top

storage.

○ Mercedes-Benz G Class Cabriolet – a powered retractable soft-top.

Claimed to be the world’s largest semi-automatic soft-top with a separately

exchangeable tailgate.

CTS also produces a modular top for the Porsche 911 Targa and removable

hard-top for the Porsche 911 Carrera Cabriolet.

As table 8 shows, CTS employs 955 people at seven locations in Germany

and the US.



Table 8: Car Top Systems’ facilities worldwide

Country Location Number of employees ¹

Floor space –

feet² Operation Notes

Germany Stuttgart 200 60,000 Textile production Final assembly of Porsche 911 Top System (soft-top and hard-top). Final assembly of Porsche Boxster Top System (soft-top and hard-top). Final assembly of Mercedes G-Class (soft-top). Final assembly of Ferrari 360 Spider (soft-top). Final assembly of Saab 9-3 CV (soft-top).

October 2004, began production of new Porsche Boxster soft-top roof system. July 2003, began production of the new Saab 9-3 soft-top.

Germany Hamburg 226 112,000 Kinematic – assembly Administration

June 2004, this site celebrated the 50,000th production of RHTs for PSA Peugeot Citroen

Germany Bremen 130 57,050 Final assembly of Mercedes SL and SLK Top System (Panoramic vario roof)

December 2003, began production of the new SLK retractable hard-top roof system.

Germany Bietigheim-Bissingen

239 176,500 Administration (headquarters) Development Prototype build Testing

April 2003, began production of the Peugeot 307 CC retractable hard-top roof system.

Germany Mullheim/ Freiburg

57 42,000 Final assembly of Peugeot 307 CC Top System (retractable hard-top).

US Bowling Green, KY

63 35,000 Final assembly of Cadillac XLR Roadster (hard-top). Final assembly of Corvette C6 soft-top. Administration

July 2004, began production of the GM Corvette removable roof system. November 2004, began production of the Corvette C6 soft-top. May 2003, began production of the GM Cadilac XLR retractable hard-top roof system.

US Rochester Hills, MI

40 25,000 Development Prototype build Administration

¹ As of April 2005.

Source: Car Top Systems



Edscha

Germany’s Edscha develops and manufactures soft-tops and hard-tops for a

number of convertibles in Europe, including the Audi TT, BMW 3 Series, Opel

Astra, Smart roadster, BMW Z4 and 6 Series Convertible. In 2004, the

company began supplying the roof of the Chrysler PT Cruiser Convertible. The

company is currently preparing a further six convertible roof designs for series

production.

Edscha’s convertible roof systems are manufactured in Hengersberg,

Germany; Velky Meder, Slovakia; Coventry, UK; Greer, near Spartanburg, US;

and Toluca, Mexico where the roof of the Chrysler PT Cruiser Convertible is

manufactured.

The company’s main development facility is located in Hengersberg, Germany

with additional development capacities in Pontiac, Michigan, US. This business

employs 1,000 people, of whom 100 work in development and design.

Edscha operates from 25 sites worldwide, including 24 production plants. The

company organises its business activities into five divisions: Hinge Systems;

Convertible Roof Systems; Vehicle Design; Driver Controls; and Sliding Roofs

for Trucks. The Convertible Roof Systems division is Edscha’s second largest

business, behind Hinge Systems.

Edscha is owned by EdCar Beteiligungs GmbH. In December 2002, EdCar – a

company in which the financial investors of The Carlyle Group hold a majority

interest, but in which the board members of Edscha also have an interest of

23% in all – took over 70.5% of the share capital of Edscha AG from the

majority shareholders. As part of the parallel public takeover offer, this share

rose to more than 98% of the share capital by February 2003. At the request of

EdCar, an extraordinary general meeting held on 23rd May 2003 agreed on a

control and profit transfer agreement with Edscha AG as the dependent

company as well as on the squeeze-out of the minority shareholders. On 29th

January 2004, with the entry of the transfer decision (squeeze-out) into the

commercial register of Edscha AG, all shares of minority shareholders passed

to EdCar. EdCar has since held 100% of Edscha shares. After four years and

ten months, trading in Edscha shares ceased.

In the year ended 30th June 2004, Edscha’s Convertible Roof Systems

division generated sales of €219.3m, up 16% over the year. This growth was



achieved thanks to the production launches of the BMW 6 Convertible and the

Chrysler PT Cruiser Convertible. This business posted earnings before interest

and tax (EBIT) of €22.8m, up by 43.6% over the year. The company’s smallest

business division, Sliding Roofs for Trucks, achieved an 11.2% increase in

sales over the year, up from €30m to €33.3m owing to the revival of the

commercial vehicle market. The EBIT of the Sliding Roofs for Trucks business

division dropped to €1.7m or 5% of sales over the year due to the shift of

production to the Czech Republic and the insolvency of two major customers.

Table 9: Edscha AG’s turnover by division, 2002 – 2004¹

2002 2003 2004

Hinge Systems 555,089 553,332 576,326

Convertible Roof Systems 144,784 189,039 219,346

Vehicle Design – 107,704 77,621

Driver Controls 45,403 67,754 79,199

Sliding Roofs for Trucks 31,904 29,951 33,313

Total 777,180 947,780 985,805

¹ Years ended 30th June.

Source: Edscha AG

Heuliez

The French specialist in body-in-white and niche vehicles has produced more

than 415,000 complete vehicles over the last 25 years. The company

generated sales of €500m in 2004.

Headquartered in Cerizay, France, Heuliez employs 2,700 people. The

company operates a production facility in Cerizay. This 130,000-m² production

area incorporates eight press lines and one blank cutting line, robotised body

shop areas, an e-coat line, two paint shops and a final assembly line. This site

has annual capacity of 50,000 vehicles and a production volume ranging from

a few units to 200 vehicles a day. Heuliez also operates a JIT assembly shop

in Mojados, Spain. A production facility in Slovakia is scheduled to open in

December 2005. The company’s manufacturing operations currently employ

2,500 people.



The company also operates a development centre in Le Pin (France) and a

design office and showroom in Paris (Massy). Heuliez’s product development

and prototyping operation employs 300 people.

In addition, Heuliez operates a liaison office in Detroit and Tokyo and a

subsidiary company in Seoul, Korea.

Heuliez has invested a lot of time and money to make quick-folding solid

convertible roofs and has registered no less than 160 patents for roofs and

boot-lid systems since 1999. The company’s ‘Retractop Tech’ system is a

three-part (two roof panels and a rear window element) retractable roof

designed to fit coupes, sedans and limousines with extra-long roofs.

just-auto takes the view that Heuliez continuously faces a number of different

scenarios in vehicle manufacture. For the manufacturing of a convertible

vehicle, the following four scenarios are possible:

○ Scenario 1 – A specific assembly line may be realised and dedicated to

an entirely new convertible vehicle, e.g. Mercedes SLK.

○ Scenario 2 – A specific assembly line may be realised for a new

convertible based on an already-existing vehicle. The convertible version

can be developed independently from the basic version, e.g. Audi A4

convertible and Opel Tigra TwinTop.

○ Scenario 3 – A standard assembly line may be shared between the sedan

vehicle and its convertible version if the two vehicles are developed

together, e.g. Renault Megane CC.

○ Scenario 4 – A standard assembly line may be shared between the sedan

vehicle and its convertible version even if the two vehicles are not

developed together, e.g. Peugeot 206 CC.

How does Heuliez view production scenarios? Bernard Girard, director of

Heuliez Deutschland and business development, told just-auto; “The product

and process constraints to be considered during the engineering phase of a

convertible vehicle are very much dependant on the various above-mentioned

scenarios. The approach of Heuliez for the development of a convertible



vehicle will largely depend on which aforementioned scenario is adopted. The

most challenging scenario is, of course, the fourth scenario with the highest

level of constraints: develop a totally new looking car with a new technology by

re-using an already existing platform and an existing manufacturing process.

This point is often neglected when comparing different convertible vehicle.”

Inalfa Roof Systems BV

Inalfa Roof Systems is one of the world’s largest manufacturers of sliding

roofs. It has been developing and producing sunroofs since 1974.

Headquartered in Venray, the Netherlands, Inalfa Roof Systems employs

1,500 people across three major car-producing regions, as follows:

Inalfa Roof Systems USA

○ Inalfa Roof Systems, Auburn Hills, MI.

○ Inalfa SSI, Warren, MI.

○ Inalfa Roof Systems, Grand Blanc, MI.

Inalfa Roof Systems Europe and Brazil

○ Inalfa Roof Systems, Venray, the Netherlands.

○ Inalfa France, Paris.

○ Inalfa America do Sul, Sao Paulo, Brazil.

○ Inalfa Italia, Livorno.

○ Inalfa UK, Tamworth.

Inalfa Roof Systems Asia

○ Nihon Inalfa, Osaka, Japan.

○ Nihon Inalfa, Yokohama, Japan.

○ Inalfa Korea, Kyunggi-Do, South Korea.

Inalfa Roof Systems’ comprehensive product range includes standard sunroofs

systems such as: tilt roofs, tilt-slide roofs, spoiler roofs, folding roofs and

several manually and electronically operated truck hatches. In recent years,

Inalfa Roof Systems has been focusing on panorama roofs, exterior sliding

roofs and multifunctional roof systems.



Inalfa supplies to BMW, DaimlerChrysler Group, Ford-PAG, GM Group, Hafei,

PSA Peugeot Citroen, Renault-Nissan, Ssangyong and SAIC Chery, as well as

to almost all truck manufacturers.

Inalfa Roof Systems' research and development is conducted on a global

scale. The company’s technical centres are based in the Netherlands and the

United States, with support operations in France, Brazil and the United

Kingdom. Local engineering centres are located in South Korea, Japan and

Italy.

Inalfa Roof Systems reinvests more than 7% of its turnover back into R&D and

engineering, comprising more than 200 employees within Inalfa itself and a

further 200 staff at suppliers and external agencies. Inalfa's R&D and

engineering staff are primarily concerned with developing new products,

prototyping and improving existing products. In-car and lab testing is used to

check for and optimise, wind and driving noise, wind flow, water-tightness,

protection against forced entry and use in extreme conditions.

The current trend of more light in the car’s interior creates a demand for large

transparent roof systems. To cater for this development Inalfa has developed

several roof opening systems offering daylight and large openings in

combination with sunblind systems and heat reflecting glass. Especially the

panoramic roof systems for the BMW X3, X5, 3 and 5 Series Touring as well

as the exterior sliding roof for the Renault Modus. In addition, in 2005 Inalfa

has 15 more panoramic roof systems in development. Inalfa’s roof modules

each feature an anti-trap mechanism to avoid injuries when closing the roof

unexpectedly.

Inalfa Roof Systems supplies the tilt-vent slide roof for the 2005 Mercedes S-

Class with the highest levels in quality, security and driver comfort.

The company has developed ideas for future roof systems to offer increased

flexibility to car manufacturers and consumers: The main advantage of these

modular roof systems is that car manufacturers can offer consumers a wider

choice of roof system without having to develop additional bodywork variants.

These new roof modules are designed so that they can be installed into a

uniform body at the end of a production line.



Karmann

As a specialist coachbuilder, Wilhelm Karmann GmbH designs and develops

cars in close co-operation with its OEM customers. The company also

produces stamped parts, bodies-in-white and convertible tops.

Headquartered in Osnabruck, Germany, Karmann employs 8,750 people, of

who just over 7,000 are based in Germany. The company operates the

following sites:

○ Wilhelm Karmann GmbH, Osnabruck, Germany – vehicle engineering,

tooling, roof systems, vehicle production, (5,920 employees).

○ Karmann-Rheine GmbH & Co KG, Rheine, Germany – vehicle and roof

system production, (1,124 employees).

○ Karmann-Ghia do Brasil Ltda, Sao Bernado do Campo, Brazil – tooling,

stamping and vehicle production, (545 employees).

○ Karmann-Ghia de Portugal Lda, Vendas Novas, Portugal – fabric

production, (341 employees).

○ Karmann USA Inc, Plymouth, Michigan, US – technical development, roof

system production, (114 employees). This site was opened in January

2005, costing US$15m. It produces convertible roof systems for

DaimlerChrysler and GM.

○ Karmann-Ghia de Mexico Sde, Puebla, Mexico – roof system production,

(15 employees).

Karmann is currently building the complete Audi A4 Cabriolet (at its Rheine

factory), Mercedes-Benz CLK Cabriolet, Chrysler Crossfire Coupe and

Chrysler Crossfire Roadster cars (all at the company’s Osnabruck factory).

The A4 and CLK convertibles were developed by Karmann engineers in co-

operation with Audi and Mercedes-Benz. Both Crossfire models were created

from the basis of Chrysler design studies almost entirely in the Osnabruck

development department. For the Mercedes-Benz SLK, Karmann produces the

underbody assemblies and delivers them to the Mercedes-Benz factory in

Bremen. The roof module for the Renault Megane II CC is produced in Rheine

and then delivered to the Renault factory about 300 miles away for final



assembly. Karmann also manufactures the roof module for the VW Beetle

Convertible. A total of 93,671 units were produced in 2004.

○ Mercedes-Benz CLK convertible – this vehicle’s soft-top folds down

automatically in 20 seconds. The hydraulic motor locks the roof

automatically to the upper frame of the windscreen, eliminating the need

for roof handles. The Mercedes-Benz is the only convertible in its class

that is also available with an 8-cylinder engine. Other notable features are

its aerodynamics with a cW value of 0.3 and boot space of 390-litres, the

largest in its class. The chassis torsion resistance is 10% higher than its

predecessor. The sheet metal used for the chassis is 40% made from

high-tensile steel alloys, helping to ensure maximum stability with minimal

weight. Karmann currently produces nearly 100 units a day. In 2003, the

company produced 21,734 units, rising to 26,003 units in 2004.

○ Audi A4 convertible – the A4 is the only convertible four-seater with four-

wheel drive. The Rheine factory currently produces 130 units a day. The

standard lined electro-hydraulic fabric hood with heated glass rear window

disappears at the press of a button. In 2003, the company produced

29,285 units, rising to 31,962 units in 2004.

○ Chrysler Crossfire – the first two-seater Chrysler Crossfire sports coupe

rolled off the production line in February 2003. The exterior design

combines the looks of 1950's Zagato-designed Italian fastbacks with

modern sharp-edged style to create a handsome and unique looking

vehicle. The new car comes with a retractable spoiler that activates when

the car reaches 50 mph and its most recognisable feature is a centre spine

that runs the length of the car, from the front grille to the exhaust pipes.

This spine also appears on the door handles and exterior. The interior

features low-positioned seats and a cocoon-like cockpit offering a very

traditional sports-car arrangement. Cabin decoration features bright silver-

coloured trim, though production models are likely to be toned down. In

2003, the company produced 18,398 units, rising to 19,423 units in 2004.

○ Chrysler Crossfire Roadster – Karmann was responsible for the

development and production of the entire vehicle as well as the fabric

hood. In 22 seconds, the two-seater hatchback transforms itself into a



convertible. Electro-hydraulics fold and stow the fabric hood under the boot

lid behind the roll bars. In 2004, the company produced 16,229 units.

Karmann also produces the roof module for the VW Beetle Convertible and

Renault Megane retractable hard-top.

○ VW Beetle Convertible – thanks to a new way of folding, the hood is

much flatter in its down position than on its predecessor thereby giving an

unrestricted view to the rear. Once it is manually detached, an electro-

hydraulic system opens the hood in 13 seconds. Karmann-Ghia de Mexico

produces the roof system and delivers these modules to the local VW

plant. In 2003, the company produced 42,577 units, rising to 60,462 units

in 2004.

○ Renault Megane retractable hard-top – Renault worked with Karmann to

develop the retractable hard-top. The glass roof is electronically operated.

The completely retractable panoramic glass roof is made of two parts: the

rear and the front roof. The modules used are made from 4mm thick

infrared filter glass. The electro-hydraulic open and close mechanism

converts the roof in 22 seconds. In 2003, the company produced 6,831

units, rising to 42,923 units in 2004.



In a statement to just-auto, June 2005, Mr Rolf-Peter Baule, head of Karmann’s roof systems business, wrote: “The core competence of Karmann is building cars and roof systems in particular as a full service

supplier since 1901. The change in convertible design and roof systems is identified at Karmann

by evaluating international market research during the last [few] decades due to [changing]

customer requirements. The convertible market is going to be growing within the next ten years

contrary to the market in general.

“The market analysis shows a strong requirement of comfort, quality, reliability, maximum flexibility

and individuality. Furthermore, [there has] been a recognised trend [towards] retractable hard-tops

(RHTs). Nevertheless, the market for soft-tops will be stabilised because of the special

appearances of a convertible. The marketing decision of the OEM for a soft-top is also based on a

deliberate differentiation to a coupe, for instance. This follows an idea to create a particular identity

of the convertible versus coupe.

“Due to customer demand, Karmann has developed different options for RHTs and soft-tops.

Some of these options are applied at launched cars already and others are in preparation for roof

systems, which will be launched soon.

“The flexibility of a RHT could be very much improved by using an integrated sliding roof, rotating

C-Pillar and rotating rear window. In terms of comfort, the use of glass applied in a RHT in

combination with an anti-glare shield is one of the features which is directly related to a customer

in order to give that cabrio feeling even when the roof is closed. The maximum available boot

space needs a clever concept based on style and function, especially for RHT application. We are

also focusing on colour diversity and manufacturing aspects with after-sales options. Due to this

manufacturing and marketing request, Karmann developed a system to add on parts which will be

applied direct on an assembly line and offer the opportunity to change these parts with a special

colour or pattern (e.g. carbon, wood) at the dealer directly.

“The technical soft-top trend is similar to the RHT but more sensitive to apply. The soft-top is more

complex because of elastic behaviour of the textile components in combination with a high

complex kinematics. This development needs a full competent supplier, which Karmann is. The

latest evolution of materials for the exterior and headliner improved the noise level significantly as

well as the surface feel. The individuality request of the changing market is also part of the

development focus. Different colour and material combinations could be applied in combination

with illuminated headliner/integrated light systems or spoiler systems in order to improve down

force. The application of an exterior fabric in leather has been shown at the Geneva motor show

this year [2005], for instance. Another feature in roof redesign is in preparation, which covers the

passenger safety improvements. [These] features follow the US market research in particular but

might be applicable for luxury cars only. All these features have been proved and realised at show

cars or internal studies already.”



Pininfarina

The Italian coachbuilder Pininfarina made its name originally as a styling

house, but it is increasingly known as a niche vehicle manufacturer. In 2002,

the company manufactured its millionth vehicle and over the past ten years,

annual production has averaged 30,000 units. Pininfarina is increasingly

promoting its backroom engineering skills, and has formed a new engineering

division with a dedicated facility near Turin to gain new business. The new

€20m complex houses 500 Pininfarina engineers, of whom 400 are working on

product engineering and 100 on industrial processes.

Pininfarina reported a major financial loss in the first quarter of 2005 as

production of older models ended and investment for new models had to be

made. Sales slumped 31.2% to €108m in the quarter and earnings fell to a

€4.4m loss compared to a €3.3m profit a year earlier.

In 2004, OASYS, (or Open Air Systems) the Pininfarina/Webasto roof systems

joint venture, won a contract to supply Ford with the convertible roof for its new

Focus coupe-cabriolet. Pininfarina will build the model, which debuts in 2006,

in Italy. It already builds the StreetKa for Ford. OASYS was formed to respond

to the trend for carmakers to bring back assembly of convertibles in-house, but

to supply them with the actual roof systems. OASYS was founded in March

2002. Historically it was a 50/50 joint venture between Webasto and

Pininfarina. In December 2004, Pininfarina exited the joint venture. OASYS

manufactures retractable hard-tops at operations in Stockdorf, Germany and

Turin, Italy. OASYS developed the roof system for the Mini Cabriolet and it has

been developing the retractable hard-top for the Golf-based Volkswagen

Cabriolet. Webasto has purchased Pininfarina’s stake in OASYS, making it a

100% affiliated company. OASYS remains an exclusive supplier to Pininfarina.

Webasto

Germany’s Webasto is a major supplier of vehicle roof systems and heater

units for cars, trucks, buses and ships. Its roof systems include convertible roof

systems, roof modules, folding roofs, glass sunroofs, lamella roofs, panorama

roofs and solar sunroofs.

In 2004, the company posted sales of €1.4m, up by 6.3% over the year. The

majority of sales, around 60%, are made up of sunroofs, panorama roofs and

convertible roofs for passenger cars. The remainder is generated from sales of



heating products (cars, buses ad commercial vehicles) and air conditioning

(commercial vehicles and buses). The company generated operating profits of

€43.5m, up from €37.5m in 2003. Its main product launches during 2004 were

the BMW Mini with its cabrio roof from OASYS and the lamella sliding

polycarbonate roof for the Mercedes A-Class.

Headquartered in Stockdorf, near Munich, Webasto has 27 manufacturing

facilities in Brazil, China, France, Germany, the UK, Italy, Japan, Netherlands,

Spain, South Korea, Turkey, Ukraine and the US. Webasto employs 6,200

people worldwide, of whom 2,000 work in Germany. Since 1990, the company

has been separately owned and controlled.

Webasto’s US headquarters are based in Rochester Hills, Michigan. The

company has two assembly plants and one prototype test and development

centre in Rochester Hills. It also has an assembly plant in Lexington, Kentucky,

a roof preparation centre in Livonia, Michigan, an installation centre in Sterling

Heights, Michigan, an installation and distribution centre in Santa Fe, California

and aftermarket facilities in Brighton, Michigan and Los Angeles.

Webasto says that its growth strategy for North American business will include

increasing its already dominant share of the sunroof market and expanding

into other business sectors such as body systems and convertible roofs. Its

quest for convertible business has met with mixed success so far. Its joint

venture with Pininfarina has developed the convertible for the BMW Mini but

the company missed out on convertible programmes for the Cadillac XLR,

Chevy SSR and Pontiac G6. However, Webasto is having considerable

success with its large rooftop opening systems and its new plant in Lexington

will supply the panorama roof for the Mercedes GST.

Webasto entered the Japanese sunroof market in 1978, forming a joint venture

with Daikyo and then taking full control of the company in 1999. It has a 25%

share of the Japanese sunroof market. Its major customers are Mazda, Nissan

and Toyota. Webasto Japan Co has invested some ¥1m in building a new

facility to produce annually 2,500 convertible roofs for Daihatsu Motor Co’s

Kopen.

Online sources of information Page 50

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Global market review of automotive roof systems â€“ forecasts

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