smes working with oems - pwc · developing novel technology, zytek will continue to grow and show...

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Continental Engineering Services GmbH Zytek Automotive Ltd October 19, 2011 Page 1 SMEs working with OEMs Neil Cheeseman Strategic Programme Manager

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Page 1: SMEs working with OEMs - PwC · developing novel technology, Zytek will continue to grow and show returns on investment Close links with UK government, offering high value for money

Continental Engineering Services GmbH Zytek Automotive Ltd

October 19, 2011 Page 1

SMEs working with OEMs

Neil Cheeseman – Strategic Programme Manager

Page 2: SMEs working with OEMs - PwC · developing novel technology, Zytek will continue to grow and show returns on investment Close links with UK government, offering high value for money

Continental Engineering Services GmbH Zytek Automotive Ltd

October 19, 2011 Page 2

A high technology engineering company formed 29 years ago to develop racing engine controllers.

Employs 190 people on 2 UK sites, plus an office in Detroit.

Zytek Group comprises 2 companies:-

Zytek Automotive

Roadcar activities

Electric & hybrid electric component & vehicle engineering

Engine management development

Zytek Motorsport

Motorsport activities

Engine & chassis supply

Zytek Automotive 50% investment by

Zytek Group

Page 3: SMEs working with OEMs - PwC · developing novel technology, Zytek will continue to grow and show returns on investment Close links with UK government, offering high value for money

Continental Engineering Services GmbH Zytek Automotive Ltd

October 19, 2011 Page 3

In 2000, Motorola invested in Zytek via purchase of 19% Zytek

shares

Focus on the development of a new engine management

system platform (HW & SW)

1st application of this was in 2008MY Dodge Viper

In 2006, Continental bought Motorola’s automotive business,

inheriting the 19% share in Zytek

In 2008, Continental increased their share in Zytek Automotive to

50%

Primarily for access to products and development/application

experience in Electric & Hybrid vehicles

Zytek are an excellent example of a UK company working with OEMs

having received investment and providing world class solutions

Zytek investment history

Page 4: SMEs working with OEMs - PwC · developing novel technology, Zytek will continue to grow and show returns on investment Close links with UK government, offering high value for money

Continental Engineering Services GmbH Zytek Automotive Ltd

October 19, 2011 Page 4

2010MY smart electric drive

Page 5: SMEs working with OEMs - PwC · developing novel technology, Zytek will continue to grow and show returns on investment Close links with UK government, offering high value for money

Continental Engineering Services GmbH Zytek Automotive Ltd

October 19, 2011 Page 5

Phase 0

Internally funded R&D, 2 demonstration vehicles

Phase 1

In 2007, Zytek were commissioned by Daimler UK to engineer and convert 100 smart for two vehicles for use in a 3 year UK field trial.

Phase 2

In 2009, Zytek were commissioned by Daimler AG to engineer & line build 1500 smart fortwo vehicles for EU/USA use as an unlimited field trial

Phase 3

High volume Daimler programme, launch 2012

Smart ed – Innovation, product development, manufacturing

Page 6: SMEs working with OEMs - PwC · developing novel technology, Zytek will continue to grow and show returns on investment Close links with UK government, offering high value for money

Continental Engineering Services GmbH Zytek Automotive Ltd

KERS technology

October 19, 2011 Page 6

Page 7: SMEs working with OEMs - PwC · developing novel technology, Zytek will continue to grow and show returns on investment Close links with UK government, offering high value for money

Continental Engineering Services GmbH Zytek Automotive Ltd

October 19, 2011 Page 7

2007

Zytek contracted to develop KERS system for leading Formula 1 team

2008

Intensive design, manufacture and test of high innovative, lightweight & powerful KERS systems

2009

Full season of use in Formula 1, zero failures, 1st win for hybrid F1 car, 2 wins in total (more than any other system). 100% reliability over 18 races.

2010

Design, manufacture & test of cost capped version for use in other motorsport series

2011

Use of Zytek KERS in 3 series, 2 of which benefit from full OEM support

KERS – Innovation, quick turnaround, technology

Page 8: SMEs working with OEMs - PwC · developing novel technology, Zytek will continue to grow and show returns on investment Close links with UK government, offering high value for money

Continental Engineering Services GmbH Zytek Automotive Ltd

October 19, 2011 Page 8

Gordon Murray Design small city EV

Page 9: SMEs working with OEMs - PwC · developing novel technology, Zytek will continue to grow and show returns on investment Close links with UK government, offering high value for money

Continental Engineering Services GmbH Zytek Automotive Ltd

October 19, 2011 Page 9

2009

Zytek and Gordon Murray design awarded funding to develop “the world’s most efficient electric vehicle”

2010

Modelling, design & manufacture of innovative, lightweight electric vehicle powertrain

2011

Project conclusion, publishing of results

Vehicle energy usage reduced by >30%

Ongoing commercialisation

Increased power & torque

Selective use of Continental components

New cooling methodologies

GMD – Innovation, value for money, technology

Page 10: SMEs working with OEMs - PwC · developing novel technology, Zytek will continue to grow and show returns on investment Close links with UK government, offering high value for money

Continental Engineering Services GmbH Zytek Automotive Ltd

Financially sound business development

Zytek Group showing positive year on year growth

“Turnover is vanity, profit is sanity”

Consistently meeting EBIT targets set out by investor

Through basic fundamental research and both 1) improving current products and 2) exploring & developing novel technology, Zytek will continue to grow and show returns on investment

Close links with UK government, offering high value for money through limited ongoing public investment

October 19, 2011 Page 10