From Agence France-Presse
BERLIN — German industrial group ThyssenKruppp plans to restructure its struggling car parts business in the United States by either selling the unit or closing some operations, a spokesman for ThyssenKruppp Automotive said last week.
The spokesman said the complete sale of the business, the third-biggest for the group in terms of sales and active in 17 countries, was not envisaged.
French business magazine Focus reported last week that ThyssenKruppp was considering both a complete sale or partial divestments of its automotive division. It named supplier Magna and investment group Wilbur Ross as potential buyers.
ThyssenKruppp’s car parts business has suffered from a decline in profitability in recent quarters because of weakened demand in the United States, where it supplies to General Motors, Daimler Chrysler and Ford.
The spokesman warned that the company would consider plant closures or divestments in Europe if the US market failed to recover.
ThyssenKruppp has taken provisions of approximately $120 million to cover the costs of the restructuring in the US.
Copyright 2005 Agence France-Presse. All rights reserved.
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