About Gentherm

Gentherm Incorporated is the global market leader of innovative thermal management and pneumatic comfort technologies for the automotive industry and a leader in medical patient temperature management. Automotive products include variable temperature Climate Control Seats (CCS), heated automotive interior systems (including heated seats, steering wheels, armrests and other components), battery performance solutions, cable systems, lumbar and massage comfort solutions, fuel management valves and other valves for brake and engine systems, and other electronic devices. The company’s automotive products can be found on vehicles manufactured by nearly all the major original equipment manufacturers (OEMs) operating in North America and Europe, and several major OEMs in Asia. The company operates in locations aligned with its major customers’ product strategies to provide locally enhanced design, integration and production capabilities. Medical products include patient temperature management systems. The company’s medical products can be found in hospitals throughout the world, primarily in the U.S., China, Germany and Brazil. The company is also developing a number of new technologies and products that will help enable improvements to existing products, improve health, wellness and patient outcomes and will lead to new product applications for existing and new and adjacent markets. Segments The company operates through two segments: Automotive and Medical. Automotive The Automotive reporting segment consists of the results from the company’s global automotive businesses, including the design, development, manufacturing and sales of automotive climate comfort systems, lumbar and massage comfort solutions, automotive cable systems, battery performance solutions, valve systems, and automotive electronic and software systems. Climate comfort systems include seat heaters, blowers and thermoelectric devices for variable temperature CCS and steering wheel heaters designed to provide individualized thermal comfort to automobile passengers, and integrated electronic components, such as electronic control units that utilize its proprietary electronics technology and software. Other climate comfort systems include neck and shoulder conditioners and climate control system products for door panels and armrests. Lumbar and massage comfort solutions include lumbar support, side bolster adjustment, multi-contour seats and massage systems that can be regulated according to the vehicle occupant. Automotive cable systems include ready-made individual cables and ready-to-install cable networks used to connect automotive components to power sources. Battery performance solutions consist of cell connecting devices and battery cable technologies used for various types of automotive batteries and thermal management products for heating or cooling 12 volts, 48 volts and high voltage batteries and battery modules. Valve systems consist of applications that offer solutions in fuel management, ranging from the design of tank ventilation and filling functions to the closed-coupled fuel regulation. The modular systems allow for customizable adaptations. Valve systems also includes other valves for brake and engine systems. Automotive electronic and software systems include electronic control units for climate comfort systems, electronic control units for memory seat modules and other devices. Medical The Medical reporting segment consists of the results from the patient temperature management business in the medical industry. Patient temperature management includes temperature management systems across multiple product categories addressing the needs of hyper-hypothermia therapy in intensive care, normothermia in surgical procedures and additional warming/cooling therapies utilized in acute and chronic care departments and non-hospital facilities. Business Strategy Globally, the company develops, manufactures, and delivers differentiated solutions for automotive and patient thermal management markets that make meaningful differences in everyday life by improving health, wellness, comfort and energy efficiency. The key elements of the company’s strategy are to accelerate thermal comfort growth by leveraging human thermophysiology and smart ClimateSense control algorithms to increase personalized passenger comfort and improve energy efficiency; grow pneumatic comfort business by leveraging the thermal products market share and customer relationships, as well as introducing products and technologies featuring the benefits of combined thermal and pneumatic solutions; continue to bring to market and expand its industry leading and proprietary next generation solutions through innovation; and expand patient thermal solutions that leverage its expertise in thermophysiology and drive synergies from its automotive climate and comfort businesses, as well as introducing new products and technologies. Core Technologies In Automotive, Gentherm is the global market leader of innovative thermal management and pneumatic comfort technologies. For its Medical business, the company’s expertise in thermal management focuses on managing the thermal conditions of people. Resistive Heaters Resistive heater technologies are consists of wire, carbon fiber or positive thermal coefficient (PTC) heating elements that quickly and effectively deliver heat to people and objects. Wire heating elements are designed from stainless steel, copper, the company’s proprietary carbon fiber woven lattice technology called Carbotex or printed circuit PTC heaters based on the specifications for a particular product application. Resistive heaters have multiple automotive applications, including seat heating, steering wheel heating, interior panel heating and battery heating. Thermoelectric Technologies Many of the company’s thermal products manage the thermal conditions of people using its internally developed advanced thermoelectric device technology (TED). A TED is a solid-state circuit that has the capability to produce both hot and cold thermal conditions by use of the Peltier effect. The advantages of advanced TED over conventional compressed gas systems include a reduced environmental impact and less complexity as they have no moving parts and are compact and light weight. The company’s work on this technology has yielded improvements in areas of functionality, efficiency, durability and performance. Air Moving Devices The company’s highly durable and quiet air moving devices, some of which include its proprietary blower and fan designs, are essential to all of its products that require air movement. The company has a broad portfolio of these products that are tailored to various automotive applications, including seat ventilation and electric vehicle battery cooling. Pneumatic Pneumatic massage and lumbar systems operate by inflation and deflation of air bladders to achieve desired comfort effect. The company’s products' differentiation is that its underlying valve technology for regulating air flow is based on shape memory alloy valves (SMA). Gentherm has developed actuators and valves with SMA technology that replace heavy, noisy and less accurate electromagnetic valves. The company’s innovative control elements produce precise mechanical forces and movements using the finest wires made of memory metals and without the labor-intensive use of additional sensors. Electronics The electronics in the company’s core climate comfort solution products are primarily designed and manufactured by it. The company also supplies value-added electronic products to third parties for adjacent areas within the automotive interior. In addition, Gentherm manufacturers and supplies electronic control units for memory seat modules that include electric motor position sensing technology. This technology further applies to other automotive products requiring fine motor controls. WellSense In January 2024, Gentherm introduced WellSense, a software defined consumer experience that delivers customized in-cabin comfort sensations that promote wellness and well-being. The technology the company is developing leverages science-based physiology research as the foundation for proprietary software that orchestrates heating, cooling, lumbar and massage comfort effectors. WellSense delivers enhanced wellness and well-being sensations in product offerings suitable for software defined vehicles and over-the-air feature upgrades for all vehicle configurations. The WellSense software development kit can be combined with additional vehicle features like in-cabin audio, visual and aromatic stimulation to deliver unique sensations that go beyond traditional comfort regulation to help promote individual wellness and well-being. ClimateSense ClimateSense is an integrated comfort system the company is designing to create a personalized microclimate for passengers using localized convective, conductive and radiative heating and cooling products. Using automatic regulation technology in combination with its unique occupant-centric control algorithm, ClimateSense offers the ability to personalize and improve overall occupant thermal comfort, improve time to comfort with (all-electric) pre-conditioning, provide comfort with less energy consumption thereby lowering greenhouse gas emissions by conventional internal combustion and hybrid powertrains, and extend range for electrified powertrains through a reduction in central heating, ventilation and air conditioning system usage. The company’s first production vehicle award for its ClimateSense technology has launched on the all-new 2024 Cadillac CELESTIQ, and will be followed by a battery electric version of a popular SUV launching in 2025. Products Climate & Comfort Solutions – Seat Climate Control Systems CCS Gentherm offers a range of CCS products utilizing proprietary technologies for regulating temperature and enhancing the comfort of vehicle passengers. The company’s ventilated CCS products move air through the seat to provide conditioning. The company’s active CCS products utilize TEDs to heat and cool air used to condition the seat. The conditioning air circulates by one of the company’s specially designed air moving devices through an air distribution system installed in the seat cushion and seat back, so that the seat surface can be heated, ventilated or cooled. Each seat has individual electronic controls to adjust the level of heating, ventilating or cooling. The company’s CCS products improve comfort compared with conventional vehicle cabin air conditioners by focusing heating and cooling directly on the passenger through the seat. The company’s CCS products can be combined with its resistive heating elements to increase heating capacity and reduce time to comfort. Heated Seat Heated seats, based on the company’s resistive heater core technology, are seamlessly integrated into automotive seat designs, and are constructed using materials that offer the best capacity, installation characteristics and durability. The company’s design and manufacturing capabilities allow customers to choose among a variety of resistive heater materials based on their individual vehicle specifications. Sales of heated seat products contributed 21% to its total product revenues for the year ended December 31, 2023. Intelligent Neck Conditioner Intelligent neck conditioning systems ventilate warm or temperature-controlled air directly onto the passenger’s neck and shoulder area. The system combines electronics, air moving device technologies and a heating element into a compact, integrated headrest design that can be adjusted to suit the body size of the passenger. Climate & Comfort Solutions – Surface Climate Control Systems Heated Steering Wheel Heated steering wheels deliver heating comfort to automobile drivers through resistive elements. This product can be applied to both leather and wood steering wheels. A solution for drivers in cold and mild weather climates, the heated steering wheel is designed for the global automotive market. Heated Surfaces Gentherm’s thermally conductive or radiative surfaces, such as door panel armrest and center console armrest products, are powered by the company’s core technologies. The system is thermally managed by a heating control system which can be discretely located in the door panel or seat of the vehicle. Heated door panels and armrests complement its climate-controlled seat and steering wheel products and provide a superior level of thermal comfort to the driving experience. Climate & Comfort Solutions – Pneumatic Seat Massage Gentherm's seat ergonomics system consists primarily of pneumatic lifting elements (air bladders) which are mounted under the surface of seat cushion and back. Through the cyclical inflation and deflation of the lifting elements, the contour of the seat cushion is selectively modified. The lifting elements are controlled by valves, utilizing software that can be enabled in modes by the vehicle occupant in accordance with their preferences and specific body types. Climate & Comfort Solutions – Electronics Solutions Memory Seat Modules Gentherm has developed a unique way to control certain electrical motors in a vehicle. The company’s Intelligent Positioning System (IPS®) product suite utilizes proprietary software to determine the position of a power seat and control the memory seat module. Hands-On Detection All vehicles manufactured with autonomous driving level 2 or higher capabilities are required to ensure that the driver stays in control of the vehicle during operation. In order to accomplish this task, Gentherm developed PilotSense – a sensor integrated into the steering wheel that monitors whether the driver’s hands are maintaining contact with the steering wheel. This product is available for both heated and non-heated steering wheels. Battery Performance Solutions Cell Connecting Systems Cell connecting systems provide secure connections between advanced automotive batteries to transmit a continuous flow of information about battery temperature and cell voltage during the charging and discharging process to monitor battery system performance. Gentherm has developed a range of cell connecting system products, including flexible foil cell connecting boards that offer improved packaging, weight and functionality. The company offers these products in a variety of materials to cover customers’ requirements. Thermoelectric Battery Thermal Management Thermal management is critically important for the long-term operation of advanced automotive batteries. The expansion of electrified vehicle applications, such as electric vehicles, plug-in hybrids and mild hybrids, have increased the demand for battery thermal management (BTM) systems that enable wider operating temperature ranges, enhanced driving range and prolonged life of the battery. Gentherm’s BTM system can provide precision battery cooling of 48-volt mild hybrid systems on pack or cell-level using patented TED technology. The BTM system maintains the temperature of the lithium-ion battery or other advanced chemistry battery within an acceptable temperature range without the use of chilled liquids or refrigerant loops, making it a light weight, highly scalable, compact solution ideal for automotive applications. Gentherm’s proprietary BTM system is compact and energy efficient, resulting in a minimal energy usage, which is important for an electrified vehicle. Aside from battery cooling, Gentherm’s BTM portfolio includes battery heating applications. Based on the company’s proprietary technology, it offers solutions to its customers that enable efficient heating of lithium-ion batteries for most electrified vehicles. Thermal Convenience Solutions TrueTherm Cup Holder The TrueTherm Cup Holder applies Gentherm’s patented TED technologies to keep beverages of automobile drivers and passengers either warm or cool. The company has developed a range of cup holder models with varying degrees of functionality, designed to be manufactured in multiple configurations to accommodate different console environments. The company’s dual independent design provides separate temperature settings in each holder allowing the driver and passenger to individually maintain a heated or cooled beverage. TrueTherm Storage Unit Gentherm’s TrueTherm Storage Unit provide for food or beverage cooling for the global automotive market. Using patented TED or refrigeration technologies, the TrueTherm Storage Unit provides temperature control independently from a vehicle’s heating and air conditioning system. It can be custom designed to accommodate tight interior spaces, such as the front floor console of a sport utility vehicle and provide additional cooling capacity to those who have long work commutes or transport multiple passengers. Automotive Cable Systems Gentherm manufactures automotive cable systems used to connect automotive components to power sources. The automotive cable systems are an important element in the production of many of the company’s products and form a significant component in how it generates value to its customers by being a manufacturer. The company offers cable systems as integrated parts of its products and also as stand-alone components for other automotive applications, such as oxygen sensors. The company’s cable systems business includes both ready-made individual cables and ready-to-install cable networks. Valve Systems Technologies Gentherm has deep expertise in automotive fluid management, providing intelligent solutions for applications in engine systems, brake systems and fuel management such as actuators, thermal management valves, crank case ventilation valves, non-return valves, mechanical switching valves, servo assistance valves, fuel limit vent valves, roll over valves and drain valves. The company has many years of experience in precision injection molding and valve technology, which include innovative technologies, such as the SMA actuating elements. Patient Temperature Management Systems Gentherm aspires to provide healthcare professionals with superior temperature management solutions and clinical expertise that improve patient outcomes, increase the standard of care and enhance patient satisfaction. The company provides a full line of patient temperature management systems that utilizes air, water and resistive technologies across multiple product categories addressing the needs of hyper-hypothermia therapy in intensive care, normothermia in surgical procedures and additional warming/cooling therapies utilized in acute and chronic care departments and non-hospital facilities. The company’s core brands include Blanketrol/Kool-Kit hyper-hypothermia system, WarmAir/FilteredFlo convective warming system, ASTOPAD resistive patient warming system (leveraging technology used in its automotive products), Electri-Cool/Micro-Temp localized cooling/warming systems, ASTOTHERM/ASTOFLO IV fluid and blood warming systems, and Hemotherm cardiovascular cooling/warming system that delivers precise blood temperature control during cardiopulmonary by-pass and other related cardiovascular procedures. Automotive Customers The company’s Automotive segment customers include primarily light vehicle OEMs and Tier 1s, including automotive seat manufacturers. The company also directly supplies CCS products to aftermarket seat distributors and installers. The company’s automotive marketing is directed primarily at the OEMs and their Tier 1s and focuses on the enhanced value consumers attribute to vehicles with thermal and pneumatic solutions. In many cases, the OEMs direct the company to work with their suppliers, primarily their Tier 1s, to integrate its products into the vehicle’s seat or interior design. The volume of products the company sells is significantly affected by global and regional automotive production levels and the general business conditions in the automotive industry. The company’s product revenues are generally based upon purchase orders issued by its customers, with updated production schedules for volume adjustments. For 2023, the company’s revenues from sales to its two largest customers, Lear Corporation (Lear) and Adient plc (Adient). Revenues from Lear and Adient represent sales of the company’s climate comfort solutions, pneumatic comfort solutions, battery performance solutions and cable technology products. Lear acquired the Interior Comfort Systems business unit of Kongsberg Automotive ASA in February 2022, and acquired I.G. Bauerhin in April 2023, which are both key competitors of the company’s climate comfort and pneumatic comfort products. The company’s clients include General Motors; Hyundai; Volkswagen; Mercedes-Benz; BMW; Ford Motor Company; Stellantis; Honda; Global EV manufacturer; Jaguar/Land Rover; and Other (including Medical). Proprietary Rights and Patents As of December 31, 2023, Gentherm held 459 issued patents, of which 226 were U.S. patents and 233 were non-U.S. patents. Gentherm held 177 patents directed to climate control products and thermoelectric technologies (including 36 patents directed to ClimateSense), 64 patents directed to battery cell connecting and cable technologies, 52 patents directed to massage and lumbar technologies, 31 patents directed to air moving devices, 28 patents directed to medical technologies, 48 patents directed to heating elements and technologies, 40 patents directed to occupant sensing technologies, 11 patents directed to fluid valve technologies, and 8 patents directed to electronics technologies. Seasonality The company’s principal operations are directly related to the automotive industry. Consequently, the company has historically experienced seasonal fluctuations to the extent automotive vehicle production slows, such as in the summer months when many customer plants close for model year changeovers and in December when many customer plants close for the holidays. Regulation In the U.S., the National Traffic and Motor Vehicle Safety Act of 1966 (the ‘Safety Act’) regulates motor vehicle equipment that the company manufactures and sells, as well as vehicles. History The company was founded in 1991. The company was incorporated in 1991. It was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in 2012.