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..............edag....newsletter....No.4...2006..... Issues: » Editorial » Innovation in Small Series Production EDAG Eisenach produces bodies-in-white for the BMW AG Clean Energy Project » Vocational Trainees at EDAG » EDAG goes to Moscow » Fresh Look on the Web – The New Internet Site for EDAG · www.edag.com » Test Facilities for Fuel Cell Technology EDAG Recklinghausen » New Member of Supervisory Board » EDAG Special Edition » Illustrious Callers at EDAG · Reception in the Fulda City Palace » XL Sculpture ”Automobile” at Munich Airport » Riding a Bicycle to Work Contact: Christoph Horvath Manager Public Relations, Fulda Tel.:++49 (0) 6 61-60 00-5 70 E-mail: christoph.horvath@edag.de Graphics/Layout: Peter Grösch Marketing Department Tel.:++49 (0) 6 61-60 00-2 64 E-mail: peter.groesch@edag.de –1– ..............edag....newsletter....No.4...2006..... The business unit Manufacturing Equipment has even received orders from three European OEMs for the construction or development of body assembly plants for their new vehicle models and has made a major contribution to the positive commercial development of the EDAG Group. Dear employees, Competition on the international market for development services remains severe. Nor is the situation any different in the sector of plant engineering and small series production, where the competition for the externally announced projects remains cutthroat among providers. A trend which affected us in the first half of the year and caused problems for us in achieving our sales targets. Other encouraging signals come from the business unit Production, which has recently faced the greatest challenges for the development of new areas of business due to the noticeable reduction in physical models and prototypes in the development process. It is therefore especially gratifying that the strategy of expanding the segment of small series production has been accepted by the market. For example, our site in Eisenach is currently working as a series supplier to produce 65 bodies for the project BMW AG project ”Clean Energy”. Today yet another German OEM has placed an initial series order for the manufacture of 500 body assemblies for a special variant of a premium vehicle with EDAG. This makes the development of order entries since the month of July all the more satisfying; despite the tensions on the market, the EDAG Group has been able to achieve overproportional results against the competition. As of this time, we have been able to consolidate an increase in our budgeted order entries of more than 20%. The major share of this positive trend was contributed primarily by the activities on our home market in Germany, while developments on the market for our international subsidiaries were rather reserved This positive feedback from the market is for me simultaneously the confirmation and the demand that we not only continue the path we have set out on and maintain our tempo in the reorientation of during this period. Our business unit Product Development was able to score a major success. A European OEM has given us an order for the complete development of a small-size car. The project, which is scheduled to last three years, includes all of the engineering services such as the development of the body assembly, the exterior and interior and the electrical/electronic components, the simulation, and the integration EDAG, but that we continue to push ahead to position EDAG permanently as the leading partner to the international mobility industry. of the power train, chassis, and the ”climate-heaDr. Klaus Blickle, CEO ting-cooling” as well as the trial engineering. –2– ..............edag....newsletter....No.4...2006..... Framing station BMW E68, attachment of the side frames and roof with the floor completely Because of the relatively small number of produced units, the shaping of the higher-strength stainless steel parts had to be done using prototype tools close to series production maturity. Other obstacles were the joining of stainless steel and body sheet metal using crash-secure point welding or the attachment of the side walls to the platform by means of stainless steel rivet connections. Innovation in Small Series Production EDAG Eisenach produces bodies-in-white for the BMW AG Clean Energy Project The price explosion at filling station pumps has given the search for alternative energy sources greater urgency. All of the manufacturers agree on this point, but the OEMs are pursuing different concepts in the technical realization: from CNG drive with natural gas to biofuels to hydrogen technology. But all of the concepts have one thing in common: because of the changes in space requirements for the energy storage cells and the in part stricter safety requirements, substantial modifications have to be made to the car body to satisfy legal requirements. EDAG, being a bodyshell specialist, has been supporting the manufacturers in the realization of their concepts for some time now: for example, in the modification of the CNG vehicles for the customer Opel at the EDAG site in Rüsselsheim. In the middle of 2002, the cooperation with BMW for the redesign of bodyshells as part of the Clean Energy Project began at EDAG Eisenach. The strategic project of the BMW Group stands for a drive using regeneratively produced hydrogen, environmental compatibility, economy, and efficiency in the premium segment. BMW and EDAG together faced a broad range of technical challenges in integrating hydrogen technology into the 7 Series models. Higher-strength body sheet metals and stainless steels had to be combined with carbon fiber elements. Wheelhouse area BMW E68 inside rear, attachment of stainless steel parts with higher-strength body sheet metal –3– ..............edag....newsletter....No.4...2006..... The results produced by the EDAG specialists for prototype construction and small series production at the Eisenach site were convincing. Following the presentation of the first three concept vehicles, some 70 more BIW assemblies were produced in Eisenach in the course of 5 phases (construction steps) from test to prototypes, prototype demonstration, and pre-series manufacture. Naturally, EDAG claimed the right to act as series supplier in this project as well. Once EDAG had ensured that its assembly processes met all of the preconditions for direct series connection to BMW, it was awarded official approval as a series supplier to BMW AG. The first series of about 65 units is currently being manufactured in Eisenach. EDAG’s conduct of this project once again provides proof of the company’s competence in the sector of small series production. Today yet another German OEM has placed an initial series order for the manufacture of 500 body assemblies for a special variant of a premium vehicle with EDAG in Eisenach. Vocational Trainees at EDAG EDAG Engineering + Design AG has trained more than 670 young people since 1973. 10% of the 4,000 employees at EDAG today come from the company's own training department. Contact: ralf.schueler@edag.de Tel: (0 36 91) 69 22-2 36 Fax: (0 36 91) 69 22-2 35 34 young people began their vocational training at EDAG on August 21st, 2006. These young people, just starting their professional careers, will be trained as specialists in 11 different training occupations and in-service training parallel to courses of study (BA courses) over the next three to three and a half years, enabling them to contribute in the future to the development of motor vehicles and production systems. ”Due to the constantly growing need at EDAG for specialized and highly specialized employees, it is absolutely essential for us to train our staff for tomorrow ourselves,” emphasizes Alexandra Dantmann, head of the training department at EDAG. ”Our own training program remains an important pillar of our personnel recruiting, above all in view of the conditions on the free labor market today which make it very difficult or even impossible to find people with certain qualifications.” –4– ..............edag....newsletter....No.4...2006..... Left to right: Erwin Hetke, Marc Wild, Victor Kraizer, Ivan Wolf (all EDAG) EDAG Goes to Moscow was demonstrated using bulletproof glass panes and body sheet parts. The aim to the presence at the Moscow trade fair was to send clear signals that Russia is an important future market for EDAG. EDAG is already working on development projects for Russian manufacturers and the supplier industry. For the first time in the company’s history, EDAG was represented as an exhibitor at the Interauto in Moscow, which was held simultaneously with the Moscow Motor Show and Car Salon. The focus of the trade fair presentation was on the overall depiction of EDAG’s range of services and its newly organized business units. The company’s competence in general vehicle development was demonstrated using the exhibit ”Mercedes B Class” as an example. The roller hemming technology was presented as an example from the EDAG business unit Manufacturing Equipment and Production, and the know-how in the sector ”Light Armored Vehicle” Reinhard Bolz, Director for Trade Fairs + Exhibitions, expressed his great satisfaction with the visitor response at the EDAG trade fair booth at the end of the fair on September 03rd, 2006. ”It was a great advantage, especially for our sales team, to be able to offer a meeting point for their current and future customers where contacts could be intensified.” –5– ..............edag....newsletter....No.4...2006..... Fresh Look on the Web – The New Internet Site for EDAG www.edag.com For the third time since 1999, EDAG has completely redesigned its Internet site on the ”World Wide Web”. Constant new developments in graphics as well as topicality are what make the Internet such a vibrant medium. So the marketing team has given the EDAG site a visual rejuvenation, ensuring a con- nents results in a visually modern site. Since the middle of August, visitors have, for example, been able to move interactively through the picture archives from 1969 to 2006 under the section History or learn about the worldwide EDAG site network with the help of the animated maps. Besides the new layout, new functionalities such as the new concept of the download section in Marketing/PR/Trade Fairs are available to anyone coming to the EDAG pages. Visitors will find here a wealth of information material regarding the EDAG Group, including printable picture material for downloading. temporary appearance for the largest independent engineering company in the world. The objective was to communicate the new structure of the EDAG business units and to present their complex services within a clear structural form online. In cooperation with the Stuttgart agency ”reseen”, interactive and dynamic Flash animations were integrated as a way to set visual accents. The combination of objective content and Flash compo- You can naturally find out more by logging onto www.edag.com. We look forward to your visit! Test Facilities for Fuel Cell Technology EDAG Recklinghausen with GM FCA in Honeoye Falls, USA. Location director Lothar Sunke regards the fuel cell technology to be a field of competence which he would like to expand within the EDAG association. It is therefore only logical that on August 17th, 2006, he joined the ”Competence Network Fuel Cells and Hydrogen of the State of North Rhine-West- Since 2003, the Recklinghausen site has been supporting EDAG activities in the field of fuel cell technology by developing and constructing test facilities for fuel cell components. In addition, a phalia” so that he could establish even more contacts to potential customers and/or partners. component for the anode side has been developed, validated, and further developed to maturity for small series production in close cooperation –6– ..............edag....newsletter....No.4...2006..... ..............People..... New Member of Supervisory Board six employee representatives on the EDAG Supervisory Board and had resigned her position for professional reasons. On behalf of Dr. Helmig, Dr. Blickle, and ourselves, we wish to thank Ms. Haas for her commitment at EDAG and wish her all the best in her personal and professional future. Effective on July 06th, 2006, Mr. Michael Pilz, general manager at IG Metall Hanau/Fulda, was appointed by a court to be a new member of the EDAG Supervisory Board. He is the successor to Ms. Babette Haas, who until that date had been one of EDAG Special Edition A special issue about the EDAG Group will appear in October 2006 in conjunction with the professional journal ”Automobil Produktion”. The 28-page magazine, which will be sent out to the 16,000 readers from the automotive industry with the October issue of ”Automobil Produktion”, contains a detailed portrait of the four new business units at EDAG. Articles about EDAG, innovations, the show and concept cars from the past eight years, and a long interview with EDAG head Dr. Klaus Blickle round off the editorial concept of the EDAG special issue. –7– ..............edag....newsletter....No.4...2006..... Illustrious Callers at EDAG The Hessian Minister of Economics, Dr. Alois Rhiel, paid a visit to EDAG headquarters in Fulda on July 19th, 2006. The purpose of the one-hour ”one-onone discussion” with EDAG CEO Dr. Klaus Blickle was the intensification of the personal relationships. Dr. Rhiel emphasized that the direct contact between the worlds of politics and economics was an important component of his work. ”EDAG, being one of the largest and most innovative employers in the region, is especially important to me because I used to be the mayor of the city Fulda.” Left to right: Dr. Alois Rhiel, Minister of Economics of the State of Hesse, and Dr. Klaus Blickle, EDAG CEO Reception in the Fulda City Palace: High-ranking politicians from the Prefecture Fukuoka made sure that their European trip included a visit to the company EDAG and the city of Fulda. EDAG just opened a branch in Fukuoka in November 2005 and was strongly supported by local politicians. ”We are delighted that EDAG chose our prefecture for its branch location. It is an honor for us to be invited to the EDAG headquarters in Fulda,” emphasized Junichiro Nakashima, Executive Director of Prefecture Fukuoka during his visit to Fulda at the beginning of July. Left to right: Osamu Takashima (Director), Junichiro Nakashima, Executive Director, Gerhard Möller, Mayor of Fulda, and Christoph Horvath, EDAG Press Speaker –8– ..............edag....newsletter....No.4...2006..... XL Sculpture ”Automobile” at Munich Airport Airport until September 18th, 2006. The landing maneuver for the large piece was also quite a bit more sedate that that of the flying giants on the neighboring runways. Just as for the debut in front of the Brandenburg Gate on April 06th, 2006, specialists from EDAG were hired to act as ”flight controllers.” After the stopover in Munich, the sculpture will head for another destination, probably one abroad. What is undoubtedly the largest and, with a weight of 10 long tons, undoubtedly heaviest car in the world has ”landed” at the Munich Airport. The XL sculpture, realized by EDAG as the technical partner for the image campaign ”Germany – Land of Ideas”, will be on display on the open space between Terminals 1 and 2 at the Munich the campaign ”Riding a Bicycle to Work” in June of this year. The campaign is initiated annually and advertised nationwide by the AOK and ADFC. During the last three months, the car was left in the garage – whenever it was at all possible – and the people made their way to work on their own muscle power. As a further incentive, the participants divided up into five teams and compared their performance on the cycles in both a friendly and competitive spirit. For example, one group booked an average of 40.3 trips per capita, while another group turned in a mere 15 trips per participant. In total, the 20 participants rolled up a highly respectable figure of more than 7,000 kilometers. Riding a Bicycle to Work Even the automobile enthusiasts at EDAG know that riding a bicycle is a healthy way to get exercise. That is why 20 colleagues from Fulda took part in –9–