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Connaught
Electronics Ltd
2 . Background
Company Background
Established in 1982 by Dr Joe McBreen and Mr. Frank Clancy,
Connaught Electronics Ltd. (CEL) is dedicated to the design
and manufacture of electronic systems for the automotive industry.
Initially selling alarm (security) systems exclusively in Ireland,
CEL subsequently became a leading player in the vehicle aftermarket,
dominating the domestic market.
By
1991 the company began to develop expertise in Radio Frequency
(RF) technologies. Rather than retro fitting once the vehicle
had been manufactured, the company changed strategy with products
being supplied directly to car manufactures (OEM (Original Equipment
Manufacturer)).
This
strategy proved particularly fruitful as, by 2000, 98% of sales
were to the OEM automotive electronics sector. The workforce
grew proportionately to sales and the company currently has
a staff of 190 based in Tuam, County Galway.
CEL is committed to continuous technological innovation. Detailed
market analysis has allowed them to remain at the forefront
of new developments. Currently the company is focusing their
efforts in the following areas:
- UHF
(Ultra High Frequency) receivers and transmitters
- Passive
access and remote, keyless entry systems
-
LF Immobilisation (Low Frequency)
-
Microwave sensor technologies
-
GPS (Global Positioning System) based information systems
and services
In
2000 CEL developed solutions using the emergent GPS technology.
A separate company, CELtrak, was formed to manage this diversification
into the design of a satellite-based vehicle monitoring system,
allowing fleet tracking, in real time, using the GPS network.
CEL
has achieved the highest quality standards in the industry (ISO
9001, QS9000 and VDA6). The company also has a strong commitment
to sound environmental management and was awarded ISO 14001
in 1999.
Market Background
With the exception of the premium vehicle market, which
tends to be more resilient to fluctuation, the car industry
is currently suffering a downturn. CEL's products are targeted
at the luxury sector of the market and all of their major customers
are currently enjoying sales growth, even though sales remain
healthy major pressure continues on price. The
supplier network in the automotive industry operates on two
distinct levels:
- Tier
1 operators supply products directly to vehicle OEM's
- Tier
2 operations sell to an integrator who then sell on to the
vehicle OEM's
CEL,
being a relatively small company in their new marketplace, operate
mainly in a tier 2 capacity. Through a network of partners such
as Donnelly, Magna, Dynex and Sumitomo, CEL supply a range of
OEM's including Volvo, Saab, Ford and Toyota.
Facing
stiff competition from multinational companies such as Bosch
and Siemens, CEL continuously strived to penetrate the Tier
1 supplier market. They can offer a complete solution to their
OEM's and Tier 1 customers, from concept to volume manufacturing.
CEL are currently tier 1 suppliers to four manufactures: BMW,
MG Rover, Land Rover and Thermo King.
The
automotive industry has placed a massive emphasis, recently,
on the reduction of weight and energy consumption. To support
these increasing demands, the company has remained committed
to innovation and exploring leading edge technologies. In addition,
during 1999, CEL began to work closely with Irish based research
centres. Partnerships with University College Cork, University
College Limerick, University College Galway and the National
Microelectronics Research Centre, have resulted in fruitful
opportunities with Volkswagen/Audi Group (VAG) and Ford.
CEL
feel that they maintained a competitive advantage due to their
ability to both design and manufacture products in one location.
This concept to finished product ethos coupled with their willingness
to bid for smaller volume tenders has great appeal to potential
customers.
To
sustain and increase the growth of previous years, CEL has embarked
upon an aggressive 5-year business plan. To achieve it's targets,
CEL has highlighted a need to create efficiencies and cost reductions
in their business and operational processes. System automation
and streamlining will be supported by the strategic development
of an eBusiness model to support day-to-day operations and business
processes. This model incorporates secure "online"
services tailored for customers and suppliers.
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