Siemens sells auto unit for $16.72B

Tuesday, December 04, 2007

From staff, wire reports

Huntsville Times

Huntsville plant included, but little change expected

FRANKFURT, Germany - Siemens AG said Monday that it had completed a $16.72 billion deal to sell its auto electronics unit VDO to car parts and tiremaker Continental AG.

That came after the European Union approved the deal last week after its investigation concluded that the deal would not harm rivals.

VDO, which makes electronics that control car brakes, has annual sales of approximately $14.67 billion.

The Siemens VDO plant in Huntsville employs about 1,700 people. The plant, which Siemens purchased from Chrysler in 2004, is part of the sale, but little is expected to change, said spokesman Brad Warner.

"Right now, it's business as usual," Warner said. "The only thing changing with Huntsville is the sign on the outside of building. The Huntsville plant's research engineering and development and manufacturing really complement Continental's existing product portfolio."

Continental North American CEO and Continental Deputy Board Member Bill Kozyra will address employees at the Huntsville operations Wednesday, Warner said.

The deal broadens Continental's product range, making it the fifth-largest electronics supplier to the global car industry behind Bosch Corp., Denso Corp., Delphi Corp. and Magna International Inc.

Continental manufactures brake systems, chassis components, vehicle electronics and tires and employs some 89,000 workers worldwide.

Shares of Continental slipped 0.1 percent to $129.99, while shares of Siemens fell 1.2 percent to $150.05.



Siemens sells auto unit for $16.72B Tuesday, December 04, 2007 From staff, wire reports Huntsville Times Huntsville plant included, but little change expected FRANKFURT, Germany - Siemens AG said Monday that it had completed a $16.72 billion deal to sell its auto electronics unit VDO to car parts and tiremaker Continental AG. That came after the European Union approved the deal last week after its investigation concluded that the deal would not harm rivals. VDO, which makes electronics that control car brakes, has annual sales of approximately $14.67 billion. The Siemens VDO plant in Huntsville employs about 1,700 people. The plant, which Siemens purchased from Chrysler in 2004, is part of the sale, but little is expected to change, said spokesman Brad Warner. "Right now, it's business as usual," Warner said. "The only thing changing with Huntsville is the sign on the outside of building. The Huntsville plant's research engineering and development and manufacturing really complement Continental's existing product portfolio." Continental North American CEO and Continental Deputy Board Member Bill Kozyra will address employees at the Huntsville operations Wednesday, Warner said. The deal broadens Continental's product range, making it the fifth-largest electronics supplier to the global car industry behind Bosch Corp., Denso Corp., Delphi Corp. and Magna International Inc. Continental manufactures brake systems, chassis components, vehicle electronics and tires and employs some 89,000 workers worldwide. Shares of Continental slipped 0.1 percent to $129.99, while shares of Siemens fell 1.2 percent to $150.05. © 2007 The Huntsville Times © 2007 al.com All Rights Reserved.