E-Z-GO 2014 Annual Report Download - page 12

Fuel Systems and Functional Components
Our Fuel Systems and Functional Components product line is operated by our Kautex business unit, which is headquartered in
Bonn, Germany. Kautex is a leading developer and manufacturer of blow-molded plastic fuel systems for cars, light trucks, all-
terrain vehicles, windshield and headlamp washer systems for automobiles and selective catalytic reduction systems used to reduce
emissions from diesel engines. Kautex serves the global automobile market, with operating facilities near its major customers
around the world. Kautex also produces cast iron engine camshafts and develops and produces plastic bottles and containers for
food, household, laboratory and industrial uses. Revenues of Kautex accounted for approximately 14%, 15% and 15% of our total
revenues in 2014, 2013 and 2012, respectively.
Our automotive products have several major competitors worldwide, some of which are affiliated with the OEMs that comprise
our targeted customer base. Competition typically is based on a number of factors including price, technology, environmental
performance, product quality and reliability, prior experience and available manufacturing capacity.
Specialized Vehicles and Equipment
Our Specialized Vehicles and Equipment product line includes the products designed, manufactured and sold by our Textron
Specialized Vehicles and Jacobsen businesses. Textron Specialized Vehicles, which includes E-Z-GO, Bad Boy Buggies and
Cushman, and the recently-acquired TUG Technologies and Douglas Equipment businesses, designs, manufactures and sells golf
cars, off-road utility vehicles, light transportation vehicles and aviation ground support equipment. Although Textron Specialized
Vehicles is best known for its electric-vehicle technology, it also manufactures and sells models powered by internal combustion
engines. Textron Specialized Vehicles’ diversified customer base includes golf courses and resorts, government agencies and
municipalities, consumers, and commercial and industrial users such as factories, warehouses, airports, planned communities,
hunting preserves and educational and corporate campuses. Sales are made through a combination of factory direct resources and
a network of independent distributors and dealers worldwide. Textron Specialized Vehicles has two major competitors for golf
cars and several other competitors for off-road and light transportation vehicles and for aviation ground support equipment.
Competition is based primarily on price, product quality and reliability, product support and reputation.
Jacobsen designs, manufactures and sells professional turf-maintenance equipment, as well as specialized turf-care vehicles.
Brand names include Ransomes, Jacobsen, Cushman and Dixie Chopper, which was acquired in 2014. Jacobsen’s customers
include golf courses, resort communities, sporting venues, municipalities and landscaping professionals. Products are sold
primarily through a worldwide network of distributors and dealers, as well as factory direct. Jacobsen has two major competitors
for professional turf-maintenance equipment and several other major competitors for specialized turf-care products. Competition
is based primarily on price, product features, product quality and reliability and product support.
Tools and Test Equipment
The Tools and Test Equipment product line includes products sold by businesses that design and manufacture powered equipment,
electrical test and measurement instruments, mechanical and hydraulic tools, cable connectors, fiber optic assemblies, underground
and aerial transmission and distribution products and power utility products. These businesses also encompass the Greenlee,
Greenlee Communications, Greenlee Utility, HD Electric, Klauke, Sherman & Reilly, Rothenberger and Endura brand names, and
their products are used principally in the construction, maintenance, telecommunications, data communications, electrical, utility
and plumbing industries. Their products are distributed through a global network of sales representatives and distributors and are
also sold directly to home improvement retailers and OEMs. The businesses operate 13 plants across four countries with almost
50% of their combined revenue coming from outside the United States. These businesses face competition from numerous
manufacturers based primarily on price, delivery lead time, product quality and reliability.
Finance Segment
Our Finance segment, or the Finance group, is a commercial finance business that consists of Textron Financial Corporation (TFC)
and its consolidated subsidiaries. The Finance segment provides financing primarily to purchasers of new and pre-owned Textron
Aviation aircraft and Bell helicopters. The majority of new finance receivables are cross-border transactions for aircraft sold
outside of the U.S. New originations in the U.S. are primarily for purchasers who had difficulty in accessing other sources of
financing for the purchase of Textron-manufactured products. In 2014, 2013 and 2012, our Finance group paid our Manufacturing
group $215 million, $248 million and $309 million, respectively, related to the sale of Textron-manufactured products to third
parties that were financed by the Finance group.
The commercial finance business traditionally is extremely competitive. Our Finance segment is subject to competition from
various types of financing institutions, including banks, leasing companies, commercial finance companies and finance operations
of equipment vendors. Competition within the commercial finance industry primarily is focused on price, term, structure and
service.
6 Textron Inc. Annual Report • 2014