From Automotive News via MEMA Industry News
If it wasn’t clear before, it is now. Continental AG wants to buy Siemens VDO Automotive Corp. – and it’s growing bullish about the prospects of such a deal.
"I think our interest is really about merging the two companies," said Karl-Thomas Neumann, the Continental executive board member responsible for the automotive unit.
Neumann’s comments put to rest a question that has lingered since Siemens AG on Jan. 25 announced plans for an initial public offering of its VDO unit:
Would Continental be satisfied with a minority ownership in its German rival, or is it going after the whole thing?
Continental had declined to say, until Neumann addressed the issue.
"It is pretty obvious that this is interesting," Neumann said when asked about a potential merger. "It would create a true world-leading supplier. We would be at least in the top five of all suppliers."
Continental and Siemens VDO posted combined sales of $25.97 billion in 2006.
By comparison, Robert Bosch GmbH, the world’s largest automotive supplier, reported sales of $34.20 billion last year.
