TRW to Buy Two Firms in Effort to Develop ‘Smart’ Air Bags

TRW Inc., the world’s largest producer of automobile air bags, is betting $418 million that it can become the leader in the development of “smart” bags. That’s the price Cleveland-based TRW will pay for control of two companies owned by Canada-based Magna International Inc., which makes air bag components and other automotive parts. Smart air bags use sensors and/or other electronic devices to vary bag deployment speeds based on the weight of the person sitting in front of the bag. Conventional air bags deploy at rates of speed ranging from 140 mph to 200 mph. The companies coming under TRW’s wing are Magna’s Germany-based MST Automotive and Temic Bayern-Chemie Airbag. TRW and Magna also plan to operate a joint technical research center to speed up the development of smart air bags, as well as other advanced vehicle crash systems. TRW shares lost $1.875 to close at $45.75 on the New York Stock Exchange.