Continental buys Motorola auto electronics unit
3 April 2006, HANOVER, GERMANY - German auto supplier Continental AG announced Monday it was acquiring the automotive electronics business of US concern Motorola for 1 billion dollars.
3 April 2006
HANOVER, GERMANY - German auto supplier Continental AG announced Monday it was acquiring the automotive electronics business of US concern Motorola for 1 billion dollars.
The transaction is expected to be completed in the first half of 2006, and is subject to customary closing and regulatory conditions, a statement by the company said.
Motorola's automotive unit employs nearly 4,500 persons worldwide, 80 per cent of them in North America. It also has manufacturing and development centres in Japan, China, Mexico, France and Britain. Sales last year amounted to 1.6 billion dollars.
The deal includes Motorola's controls, sensor, interior electronics and telematics businesses, which will be integrated into Continental's automotive systems division.
"This strategic move will further strengthen our position as a safety and systems supplier to the automotive industry and will give us a real push forward in automotive electronics," Continental's executive board chairman Manfred Wennemer said.
Continental is a leading supplier of brake systems, chassis components, vehicle electronics and tyres, racking up sales of 13.8 billion euros (17.2 billion dollars) in 2005. At present, it has a worldwide workforce of 80,000.
"We are pleased to work with Continental to transition our automotive business to an industry leader," said Greg Brown, president of Motorola's Networks and Enterprise business, in a statement released in the US.
Motorola, one the world's leaders in wireless and broadband communications, recorded sales of 36.8 billion dollars in 2005. It has been cutting back its workforce over the years and currently employs around 70,000 worldwide.
Motorola's automotive electronics business covers embedded wireless vehicle communications, control units for steering, suspension and stability control as well as electronics for power doors, window lifts and electric mirrors.
Subject: German news