Electronics Production | March 27, 2006

Volkswagen sells its cable business

Japan based Sumitomo Electric and Sumitomo Wiring Systems announce the acquisition of Volkswagen Bordnetze, the major wiring harness manufacturer in Germany.
Sumitomo Electric Industries, Ltd. and Sumitomo Wiring Systems, Ltd. have decided to acquire Volkswagen Bordnetze GmbH (VWBN). VWBN is a manufacturer of wiring harnesses in Germany. After the completion of the contract to acquire the equity interest in VWBN owned by Volkswagen AG and Siemens VDO Automotive AG, Sumitomo Electric will own 60% of the equity in VWBN, and Sumitomo Wiring Systems will own 40%. The acquisition procedure is scheduled to be completed in the end of March 2006.

The Sumitomo Electric/Sumitomo Wiring Systems group, who is expanding the automotive wiring harness business around the world, supplies automotive wiring harnesses to international car manufacturers. The group presently holds the third place in global share, and is further strengthening its customer base both domestically and internationally, focusing especially on the promotion of business with overseas car manufacturers. By completing the acquisition of VWBN, the Sumitomo Electric/Sumitomo Wiring Systems group is expected to capture 20% of global share (the "Global 20" target) of the automotive wiring harness market.
The automotive wiring harnesses manufactured by VWBN are supplied mainly to Volkswagen group. The Sumitomo Electric/Sumitomo Wiring Systems group will participate in business with German car manufacturers in full scale, and attempt to enhance its presence in the European market.

Company name: Volkswagen Bordnetze GmbH
Establishment: 1986
President: Mr. Joerg Blecker
Capital: 2,045 thousand Euros
Present equity holders: Volkswagen AG 50%, Siemens VDO Automotive AG 50%
Annual sales: 446 million euros in 2005
Head office: Wolfsburg, Germany
Business activities: Manufacture and sale of automobile wiring harnesses and related products
Number of employees: Approximately 8,600 people
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