CTS awarded production program

The actuators will be sold to a new tier one customer for CTS who supplies the active air grill shutter system to a major U.S. based automotive company. Total revenues over the life of the initial four-year program are expected to be approximately $30 million. Active air grill shutter systems significant improve fuel economy and reduce emissions by regulating the flow of air through the engine compartment based on engine temperature and vehicle speed. The system is equally applicable to both passenger cars and light trucks. The actuator is the heart of the system, providing the power to open and close the shutters as required. Based on the important benefits they offer, the market for these systems is expected to expand rapidly over the next few years. The actuators will be manufactured in CTS’ Elkhart, Indiana facility with deliveries beginning in late 2012. Commenting on the new award, Vinod M. Khilnani, CTS Chairman and Chief Executive Officer said, “This program win is another strategic milestone for our sensor and actuator business as we grow our actuator business and diversify into new markets with an exciting new vehicle technology for new customers.”