AUBURN HILLS, MI — Siemens VDO Automotive Electronics Corp. has signed an agreement to acquire Chrysler Group’s electronics operation located in Huntsville, Ala. The facility produces automotive electronics products for Chrysler, Jeep and Dodge products and generates approximately $1 billion in sales. Details of the transaction have not been disclosed.
Situated on a 180-acre site, Huntsville Electronics is composed of two plants operating two shifts daily. The first plant opened in 1977 and is 232,000 square feet. The second plant opened in 1988 and encompasses 849,000 square feet. Currently, operations in Huntsville employ more than 2,000 people who are represented by the UAW.
“This acquisition elevates Siemens VDO Automotive’s NAFTA business to a new level in electronics leadership,” said Siemens VDO Automotive AG Group President and CEO Wolfgang Dehen. “It facilitates our strategy to grow within our core competencies, which includes vehicle instrumentation, driver information and powertrain electronics. Also, it will provide more value and synergy to our customers as we will be better positioned to cascade technical solutions and leverage our engineering capabilities across our main regions and OEM partners.”
According to Chrysler Group President and CEO Dieter Zetsche, the acquisition will benefit the automaker and its employees, as well as Siemens. ”As part of the transformation of the Chrysler Group, we have said the sale of a component operation must meet three requirements. It must make good business sense for the company, our employees and the buyer.”
“This transaction will enable the Chrysler Group to continue focusing on our core business of creating innovative cars and trucks that set us apart from the competition,” Zetsche said. “Additionally, the agreement with Siemens will give us access to the latest technology in audio products, instrument clusters and powertrain controls and will contribute positively to the future of the City of Huntsville.”
According to John Sanderson, president and CEO of Siemens VDO Automotive’s NAFTA region, Huntsville’s location and workforce were what drew the company to acquire the business.
As a subsidiary of Siemens VDO Automotive, the Huntsville Electronics operations will gain access to a broader range of new business opportunities within the global $125 billion automotive electronics market. Pending finalization of the agreement, Siemens VDO Automotive intends to assume full operational responsibility for the electronics facility in the spring of 2004.
For more information on Siemens VDO Automotive, go to: www.usa.siemensvdo.com
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