24 Oct Interview with Patrick Vith, CEO, thyssenkrupp Presta, Liechtenstein
What main trends and challenges are global automotive technology providers like thyssenkrupp Presta facing in 2024?
As a manufacturer and a producer of steering systems, we face several challenges. One major issue is supply chain disruption. We continue to experience bottlenecks, especially after the COVID-19 pandemic, with chips and semiconductors being an ongoing concern. Addressing these new trends and technologies requires significant development costs, and finding the right balance within our existing framework is essential. In addition, the volume race among original equipment manufacturers is shifting toward higher value-added vehicles, which has impacted our strategy. We are now focusing on modularization and standardization to maintain high production volumes. This approach helps us achieve the necessary scale while transitioning to higher value-added products. Steer-by-wire technology is a good example. We also face increasing competition from China, not only at the original equipment manufacturing level but also from our direct competitors. We must focus on cost efficiency to stay competitive while leveraging our strengths in advanced technology and superior service.
The automotive industry is currently being shaped by several disruptive technologies, with electrification and autonomous driving being very important for us. Electrification technology is advancing rapidly. Key developments include battery technology and charging infrastructure, especially in terms of increased range. The latter is a critical factor for both cities and regional areas. Advances in artificial intelligence, core technologies and other related areas are driving the momentum of autonomous driving and vehicles. However, progress has been slower than expected in recent years due to ongoing safety and regulatory concerns.
Can you give our readers an overview of the company’s current operations and technologies?
thyssenkrupp Presta is an internal operating business unit of thyssenkrupp that works in the automotive technology segment. We supply components and systems for more than 30 million vehicles per year. Headquartered in Liechtenstein for over 80 years, thyssenkrupp Steering is the core of this business unit. We employ around 11,000 people worldwide and operate 24 research, development and manufacturing sites.
Engineering plays a significant role in our company. Our current projects focus on advancing steering technology such as electric power assisted steering (EPAS) and steer-by-wire systems. Our focus is on steer-by-wire, which eliminates the traditional link between the steering wheel and the road wheel. This has led to the development of entirely new products and supporting technologies. While the steer-by-wire segment has not progressed in the market as quickly as initially planned, it is now entering serial production and will remain a key focus for us in the coming years. We are also exploring new human-machine interfaces that redefine the interaction between the driver and the steering system. Our ultimate goal is to contribute to the development of software-defined vehicles.
In the brake-by-wire segment, we have developed a groundbreaking new technology for brake systems, the electromechanical braking system, which eliminates the need for hydraulics. Moving forward, this will be a major enabler for autonomous driving and will serve as a base for future break-by-wire systems and concepts in cars. Due to the technological synergies between the steer-by-wire and our EPAS systems, we established a strategic partnership in 2024 to drive these innovations forward.
Beyond the steer-by-wire segment, we are engaged in many other areas and technologies that support autonomous driving. Our efforts extend to vehicle motion control, which includes not only steering systems but the entire chassis control, including brakes, dampers and steering systems. This comprehensive approach is part of what we call vehicle motion control. Our work involves gaining a deep understanding of the entire chassis system and enhancing our core competencies in steering systems as they are all part of the same larger integrated concept.
What new disruptive technologies is the company using to enhance efficiency and product development?
Digitalization is a critical aspect of how we work today, with our primary focus being on our steering cloud platform. This platform enables us to collaborate efficiently on various projects. Launched in 2020, it serves as a central hub for our data and provides us with a single source for all our operations. It has become crucial in conducting complex analyses required for our products and technologies on a global scale. The platform offers many functionalities that improve efficiency and optimization, including key performance indicator reporting, anomaly detection, various production applications and product traceability, which is crucial since we manufacture safety-critical parts.
Additionally, the integration of artificial intelligence into our standard processes has made us more efficient. This initiative started in the last few years and is already showing significant benefits. Large language models significantly lower the barriers to integrating artificial intelligence within the company. We use these models in various ways. For example, we use them to analyze contracts, particularly given the influx of new regulatory agreements from both customers and suppliers. Beyond contract analysis, we also apply these models to more complex areas such as product and software development where they help streamline and improve our processes.
What is thyssenkrupp Presta doing to address the evolving demand for a highly skilled workforce?
We are experiencing a “war for talent,” as many technology companies compete for skilled professionals. However, our development of cutting-edge technologies like our steer-by-wire products and the inherent appeal of the automotive industry make us an attractive option for young engineers. We have a unique company culture where young engineers can take on significant responsibilities in global projects, which is a strong draw for talent. Plus, we are based in a highly desirable area with a high quality of life. We also run in-house apprenticeship programs focused on new technologies, digitalization and artificial intelligence. We collaborate with prestigious universities such as ETH Zürich. We organize events such as racing days where we sponsor engineers to develop and build racing cars. This program is an excellent opportunity for them to showcase their talents. We also recognize the need to attract talent from beyond this region. We have an extremely international environment; at our Liechtenstein facility, we have more than 40 nationalities represented. Ultimately, our goal is to integrate talented individuals into our team at Presta.
How does the USA fit into the company’s large international footprint?
Our main markets are Europe, China and North America, including Mexico, Canada and the USA, with ongoing developments across all regions. Presta initiated steering developments in the US automotive industry decades ago; it is an extremely important market. We operate an engineering center in Indianapolis and a production plant in Terre Haute, Indiana. One of our biggest plants is located nearby in Puebla, Mexico. The USA is an important market for advanced technologies. While electrification is progressing more slowly in the USA compared to other areas, the prevalence of heavy vehicles and trucks necessitates sophisticated EPAS technologies. Our strong and deep-rooted partnerships with US manufacturers and tech companies form the backbone of our history in the automotive sector. Moving forward, we will continue to work closely with these partners to drive our strategy, with a focus on developing safer and more sustainable vehicles on a global scale.
What long-term vision do you have for thyssenkrupp Presta?
We aim to maintain our leadership in the steering system sector by advancing into emerging technologies such as autonomous driving and steer-by-wire systems. Given the current challenges in the automotive industry, including potential supply chain disruptions, we are proactively strengthening our resilience and adaptability. Our forward-looking vision is to establish Presta as a premier supplier of integrated steering systems tailored for autonomous vehicles. We aim to be at the forefront of this technological evolution by leveraging the transition from traditional mechanical systems towards innovative and software-driven architecture. Sustainability is also a major focus for our industry; it has introduced many new opportunities. We are dedicated to leading the automotive industry toward the future of innovation, with a clear focus on sustainability. We aim to reduce carbon dioxide emissions and foster more sustainable supply chains.