Antonov business strategy for next stage of commercialisation
The UK-based vehicle transmission specialist Antonov has provided shareholders with an update this week on its business strategy as it moves into the next stage of the commercialisation of its business. The update follows recent announcements regarding changes to the board of directors of the company and measures taken to reduce operating costs. The revised strategy places greater emphasis on generating short term revenues in order to reduce the level of ongoing fundraising required to support products with a longer development cycle. Key elements include:
Primary focus on products with a shorter time to market, for example Antonov 2-speed applications
Securing commercial engineering projects with both automotive and non-automotive customers, using core competencies and technologies
Continued support of products with a longer time to market, such as its 6-speed automatic transmission
After successfully proving its technology through the course of 2008, the board’s strategy is designed to further strengthen the commercial position of the company, with particular emphasis on products with a shorter time to market, and by securing commercial engineering projects. Significant progress has already been made in this area.
Current trading activities in China are driven through the company’s office in Chong Qing. Antonov already has a high quality 6-speed prototype demonstrator operational in China and, along with its strong long-standing government contacts, will continue to explore potential manufacturing partnerships in the Chong Qing region and develop guarantees for part of the necessary funding.
In the meantime, the company will continue to manage the level of ongoing project investment within available funding and resources, which it currently obtains through the issue of new shares under existing financing arrangements. It will also continue to pursue commercial projects to generate short term revenues.
As announced to the stock exchange on 30 January 2009 steps have been taken to reduce annual costs by over £1m, in addition to the reduction of over £0.5 million already achieved in October 2008. Almost half of the cost reductions have been achieved by reducing the number of employed and contracted staff; the remaining reductions will be achieved through savings across a broad variety of other operating costs.
After this restructuring the company will continue to be able to fully deliver what is required to its customers in line with the strategic priorities recently set. It will also continue to have access to funding under its existing facilities and is negotiating a new funding facility, expected to take effect following a share capital reorganisation.
Dr Jos E. Haag, a director of the company since 2005, has been appointed executive chairman of Antonov to manage its re-orientation as the company moves into its next stage of commercialisation. Mick Battrick, who has previously handled assignments at Tickford, Ricardo and Prodrive, has been appointed UK operations director, and is based at the company’s technical centre in Warwick.
The appointments follow the retirement of non-executive chairman Christopher Ross and departure of chief executive officer John Moore. John Moore has served the company as a CEO for four years and during this time has brought the operation of the business to a professional level. Christopher Ross has been a director of the company for five years, including four years as chairman, and has also played a significant role in this process. The board of Antonov values the contribution that Mr Ross and Mr Moore made to the company.
Antonov 2-speed applications
Reduced carbon emissions and better fuel economy are the major benefits of introducing dual-speed ancillaries says Antonov, which is pressing on with the development and application of this technology. Simple dual?speed drives can help alternators and other engine ancillaries operate more efficiently, by better matching their drive speed to the vehicle requirements.
The innovative Antonov Mechanical Module (AMM) is essentially a self controlling two?speed planetary gearset, which can be tuned to meet specific vehicle requirements. For example, mated to an alternator it provides improved alternator matching to give good charge at engine idle without incurring losses at higher engine speeds.
It can also be applied as a dual?pulley unit to give a two?speed belt driven alternator, air? conditioning pump and water pump, whereby the accumulated energy saving translates into a 5 to 6 per cent reduction in fuel consumption. Ultimately, the company aims to introduce a compact unit that is mounted directly to the engine crankshaft.
Various technical developments, such as downsized engines and lower idle speeds, are increasing the need for more efficient electrical systems. Vehicle manufacturers also want more engine torque at low engine speeds to improve driveability as well as better fuel efficiency.
Maximising the overall operating efficiency with fixed drive alternators, water?pumps, superchargers ? indeed any crankshaft driven or electric motor ancillary ? is becoming ever more difficult. At high engine speeds this can result in unacceptable losses or even excessive speeding outside an ancillary’s most efficient operating range.
Applied to an alternator, the Antonov dual?speed module can increase the electrical output for regenerative braking and reduce engine idle speed without battery charging issues. A smaller dual-speed alternator can match the low engine speed output of a larger more expensive alternator.
Another application of Antonov’s AMM device, to facilitate low cost engine downsizing, is as a 2?speed drive with a centrifugal supercharger. The resultant higher drive ratio at low engine speeds provides a big engine feel from a small engine, allowing for less gear down changing and improved fuel economy.
Antonov is similarly pursuing the development of its mechanical module as a 2?speed electric vehicle transmission, whereby it’s either packaged into the electric motor as part of the reduction gearing, installed as a separate dual?speed unit or as part of the transaxle. The AMM device requires no external control, with its characteristics predetermined at the design stage. The high transmission efficiency of a purely mechanical system ensures minimum losses through the driveline.
Two Antonov epicyclical sets can also be combined to create a simple fully mechanical fully automatic 4?speed transmission, which is ideal for the low?cost cars required in third world and emerging markets. The very low costs are achieved by not having any hydraulic systems or transmission control units.
Antonov 6-speed automatic transmission
Antonov’s all-new TX6 gearbox provides a technical breakthrough in automatic transmission design, eliminating the traditional torque converter and bringing the efficiency of an automatic gearbox closer to that of a manual transmission. It also avoids the high capital investment, cost, complexity and development issues associated with dual clutch automated manual transmissions. It therefore provides a solution for manufacturers with millions invested in existing manufacturing plants already building planetary design automatic transmissions to modify their designs by eliminating the torque converter. Following four years of design, development and prototype build, the programme has now entered the pre-production phase.
Antonov’s major innovation for an electronically controlled six-speed automatic transmission is based on new kinematics (the motion of the gears and other components) and structural design, which has achieved for the first time a hybrid combination of planetary gears and parallel transfers of power. Significantly, the traditional torque converter has been eliminated and replaced with a simple wet clutch, reducing cost, weight and size, whilst improving mechanical and fuel efficiency as well as retaining the virtually seamless gearshifts of an automatic transmission. In addition, the transmission uses components similar to those of current production automatics, offering car makers low development costs and the ease of introducing a new product into production. The transmission is protected by worldwide patents.
Further information on Antonov technology is available at antonovat.com
