Volkswagen reportedly said on Monday that Japan’s Sumitomo Electric Industries would take over its Volkswagen Bordnetze unit, which VW owns together with German industrial group Siemens.
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According to a Reuters report, Bordnetze generated 2005 sales of EUR440m (US$527m) through the exclusive supply to the German carmaker of harness fittings for electronic wiring.
VW had earlier said it was in talks with Sumitomo Electric on a sale. It gave no financial details for the transaction, which requires regulatory approval, the news agency said.
The deal reportedly will make Sumitomo Electric the world’s third-biggest provider of harness fittings for electronic wiring, a business in which it aims to achieve a market share of 20%, VW said in a statement cited by Reuters.
The deal comes amid Volkswagen’s review of options for its car parts operations, some of which are uncompetitive, the news agency noted.
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By GlobalDataWolfgang Bernhard, head of the VW brand group, reportedly said the sale better positioned Bordnetze for growth by opening it to a wider circle of potential customers.
