A little over a month since Waukesha-based Husco International, Inc. announced it had been awarded a $113 million yearly contract, the largest in the manufacturer’s history, the company has now announced that contract is cancelled. However, Husco also announced a new $50 million yearly contract to take its place.
Husco, a manufacturer specializing in hydraulic and electro-mechanical control systems, had originally planned to launch an eight-year program at $113 million a year for an unnamed global automotive OEM focused on developing a new engine management system.
“Husco learned recently that the TruCrank program we recently announced was cancelled,” reads a statement from the company. “The client – who is a long-standing client of Husco’s – is accelerating their EV work and is prioritizing electrification projects. This is work Husco will participate in with this client. While disappointing, it is a sign of the times and validates the work and investment Husco continues to place in EV technologies.”
In place of the cancelled TruCrank program, Husco has entered into a new $50 million yearly contract to develop and produce a proprietary system to improve electric vehicle efficiency and extend battery range. The new contract is expected to last at least five years.
Husco declined to specify whether the newly announced contract is with the same global automotive OEM it was working with for the TruCrank program.
“This is Husco’s largest new program focused exclusively on battery electric vehicles, demonstrating our ability to work with our customers to make cars cleaner and more efficient across all types of powertrain,” said Austin Ramirez, chief executive officer of Husco. “Long recognized as a leader in the development of hydraulic and electro-mechanical control systems that enable gasoline and diesel-fueled vehicles, Husco is increasingly creating new solutions for the growing electric vehicle market. Today, approximately 40% of our engineering resources are supporting new products for electric vehicles. The ability to meet the needs of our customers across all powertrains is among our core competitive differentiators, allowing us to pivot with our customers as technology, regulation and car buyer preferences continue to evolve.”
Ramirez previously told BizTimes Milwaukee that the electrification of vehicles did have the potential to impact Husco’s business, but that he thought it would be several decades before that truly happened.
Husco’s new program will be based on technology the company has developed that enables each wheel of a vehicle to connect or disconnect to the electric motor based on driving conditions. This technology improves vehicle efficiency and extends battery range, the company says.
To support this work, Husco will invest $10 million in new capital equipment and plant infrastructure and create 30 new jobs. The program is expected to reach full volume by 2025.
“The automotive industry is undergoing transformative change,” said Todd Zakreski, president of Husco Automotive. “By 2030, we expect to generate more than $500 million per year in business from hybrid, electric or autonomous vehicle systems. While this represents a significant change in our business and the industry overall, we remain committed to supporting our customers across powertrains.”