Delphi Licenses Duraswitch Switch Technology for Auto Market
Delphi Automotive PLC (Warren, OH) is licensing DuraSwitch Industries Inc's (Mesa, AZ) magnetically coupled switch technology industry under an exclusive agreement. Delphi's Packard Electric Division will utilize its knowledge of switches and switch packaging to adapt the DuraSwitch technology to the automotive industry, as well as the non-automotive switch markets. Along with the licensing agreement and additional near term manufacturing opportunities, Delphi has an option to acquire slightly under 20% of DuraSwitch.
"This is a significant win for Delphi and for DuraSwitch," explains David R. Heilman, president Delphi Packard Electric Systems and VP Delphi. "I'm confident that the marketplace acceptance of this innovative technology will be great, yielding substantial sales that will benefit both Delphi and DuraSwitch. Our potential for an equity position in DuraSwitch will not only cement our relationship, but will allow us to participate in their value growth."
The automotive switch market is valued at $4 billion, with a 6.8 percent compounded average annual growth rate. Delphi's diversified customer base and solid manufacturing footprint will help take DuraSwitch global.
According to Heilman, "This is exactly the switch technology that is needed to provide the multitude of switching and electronic features that today's automotive customers demand. We consider DuraSwitch to be a next generation switch technology, which has a straightforward design that fits perfectly with our manufacturing capabilities."
DuraSwitch utilizes a patented, revolutionary magnetic-based design that provides previously unheard of levels of reliability and durability, with a consistent tactile feedback or "click." This specialized technology enables the switches to be used in applications where either membrane or electro-mechanical switches are currently used. It easily incorporates into flat panel, electronically integrated switch packaging, currently required in advanced electrical/ electronic architectures and in demand by vehicle manufacturers.
"We are excited to be part of the Delphi Team, combining our switch technology with their state-of-the-art manufacturing capabilities," says Terry Dunlap, chairman and CEO, DuraSwitch. "I'm confident that by working together the opportunities to apply this technology will quickly extend well beyond the automotive market."
This strategic partnership with DuraSwitch will enable Delphi to maintain and grow its current switch business. The intent is to begin moving away from some of the electro-mechanical switches typically used in vehicles and replace them with DuraSwitch technology, which has fewer parts, says Heilman. By doing so, switch degradation and failure rates can be minimized leading directly to more satisfied vehicle buyers.
"We see this switch technology fitting nicely with Delphi's infotainment systems and devices, as well as other automotive communication applications," explains Carl Rausch, director of marketing, planning and business development, Delphi Packard Electric. "It also lends itself well to the custom styling, differentiation and higher quality that our customers are requesting."