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.
Wolfgang 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.
