The Japanese Sumitomo Group is to take over Volkswagen Bordnetze GmbH, a joint venture of Volkswagen AG and Siemens VDO Automotive. With the acquisition, the Japanese group plans to expand its presence in the field of wire harness systems in Europe and win new customers in the automotive industry.
The Chairman of the Volkswagen brand Board of Management, Dr. Wolfgang Bernhard, said in Wolfsburg: This solution forms the cornerstone of dynamic growth and thus of the future of Volkswagen Bordnetze. Expanding the potential customer base lays the foundation for safeguarding jobs at Volkswagen Bordnetze. He added that the sale of the company represents an intelligent solution in the interests of the Volkswagen Group and is a good example of responsible action.
The parties agreed to keep the purchase price confidential. The take-over is subject to approval by the cartel authorities. A decision is expected in the next few weeks.
Sumitomo will integrate 60 percent of Volkswagen Bordnetze into Sumitomo Electric Industries and 40 percent into Sumitomo Wiring Systems. The Sumitomo Group already delivers wire harnesses to numerous automakers and would be the world's third largest supplier in this sector.
The corporation plans the further internationalization of its business, and the acquisition of Volkswagen Bordnetze GmbH marks another step in its efforts to achieve a 20 percent global market share. The take-over of Volkswagen Bordnetze is particularly helpful to expansion in Europe. So far, Sumitomo has not held a major presence as a supplier of European automakers. Apart from a development center, the German headquarter will also be located at the Wolfsburg site.
Established in 1986, Volkswagen Bordnetze is a 50/50 joint venture between Volkswagen AG and Siemens VDO Automotive AG. As a developer and system supplier, the company employs some 8,600 people at 13 sites round the world, including approximately 600 at four locations in Germany.
Up to now, Bordnetze GmbH has supplied wire harnesses for Volkswagen Group vehicles.