- International Automotive supplier welcomes new employees
- Company to vigorously implement prepared integration plan
- Wennemer: Final decisions to be made in 2 to 3 months after detailed
review of data
- Customers and investors rely on the company's superior competence and
broad product portfolio, particularly in the megatrend areas of safety,
sustainability and information
HANOVER and REGENSBURG, Germany, Dec. 5 /PRNewswire/ -- Harnessing the
force of two high-performance and innovative companies in the top tier of
the global automotive supplier industry, Hanover-based Continental AG heads
into a new era after closing the deal for acquisition of Siemens VDO
Automotive AG. "We warmly welcome the employees from the former Siemens VDO
Automotive AG. By consolidating forces, we will forge our Continental into
one of the world's foremost automotive suppliers," said Continental
Executive Board chairman Manfred Wennemer on Wednesday in Regensburg.
Prior to this, the international automotive supplier had formally
concluded the purchase of Siemens VDO Automotive AG, agreed upon on July 25
and approved without conditions by the EU Commission on November 29, and
remitted to Siemens AG the purchase price of euro 11.4 billion,
incorporating tax benefits of around euro 1 billion. The corporate
operations acquired will be included on Continental's consolidated balance
sheet as of December 2007. In mid-October, Continental was able to secure a
consortium of 39 international banks to finance the purchase. On October
30th, the company additionally concluded a capital increase of just under
10 percent, bringing in around euro 1.48 billion.
"Following exhaustive preparation we can now tackle the integration
with a flying start. It will take us another two to three months, however,
to make a series of key decisions. This gives us enough time to thoroughly
examine data that antitrust laws have so far barred us access to,"
announced Wennemer.
"This applies in particular to information concerning sales, earnings
and the number of employees by product group and plant. In the final
analysis, the plans required for the operative business and especially for
production will form the basis for the generation of synergy effects,
paving the way for the emergence of a better and more efficient corporation
from two top-notch companies as well."
On the basis of planning to date, Continental anticipates net synergy
effects in the order of at least euro 170 million as of 2010. "From what we
know at the moment, we would be disappointed if it remained at this
conservatively estimated sum. The amount will presumably be higher. We will
be able to provide more details in the next ten weeks," announced Wennemer.
Dr. Karl-Thomas Neumann, Executive Board member in charge of
corporatewide technological development and the new Chassis & Safety and
Powertrain divisions, stressed that with its expanded global operations,
stronger product portfolio and more comprehensive automotive systems
competence, the new Continental will be able to profit in special measure
from future key auto industry trends: "Our innovative force and core
competence cover precisely those automotive industry megatrends that will
clearly dominate the upcoming years - safety, sustainability and
Information".
"In the Chassis & Safety division, we intend to integrate high-quality
components in the area of brake systems, sensors and chassis to form a
safety concept - called ContiGuard(R) - that will make for zero crashes and
injuries in the future. We are likewise well placed with respect to 'zero
emissions', as envisioned for the future. We have, for instance, set
standards with precise and highly-efficient piezo injection systems for
diesel and gas engines, as well as with hybrid drive solutions or
roll-resistance-optimized tires. In the Powertrain division we are
determined to live up to our motto 'Experience passion-driven mobility' by
offering innovative products and system solutions that make diesel- and
gas-engine vehicles more economical, reliable, powerful and eco-friendly,"
said Dr. Neumann.
The strategic goal of the new Interior division is expressed in the
slogan "Always On". "Viewing ourselves as information managers in vehicles,
we intend to optimize the flow of information. We will develop new
functions that establish a link with the vehicle surroundings and present
information in a way that motorists can grasp intuitively. The new Interior
division is perfectly positioned to do this. Its portfolio extends from
instrument clusters and access and control systems to audio and navigation
platforms for cars and commercial vehicles," added Wennemer, responsible
for the new Interior division.
With sales of more than euro 25 billion (2006) and a current workforce
of approximately 150,000 employees at more than 200 locations (plants,
research centers, test tracks) in 36 countries worldwide, the Continental
Corporation is now among the top five in the automotive supplier industry.
The Corporation is organized into six divisions:
-- With more than euro 5 billion in sales, over 27,000 employees and more
than 65 locations worldwide, the new Chassis & Safety division, headed
by Dr. Ralf Cramer, is positioned strategically as worldwide market and
technology leader for brake and chassis systems, the networking of
active and passive safety systems, and sensors.
-- With more than euro 5 billion in sales and over 27,000 employees at
approximately 70 locations worldwide, the new Powertrain division,
headed by Dieter Rogge, offers products and system solutions for
powertrain, engine management, injection technology, sensors,
actuators and hybrid technology. It lays claim to worldwide market and
technology leadership in the area of economical and eco-friendly
driving.
-- With more than euro 6 billion in sales, the new Interior division
positions itself as world wide market and technology leader for
information management with systems that provide a link between the
vehicle and the driver and passengers, between different vehicles, and
between the vehicle and the infrastructure in which it operates. The
division, with more than 33,000 employees and approximately 70
locations worldwide, is headed by Helmut Matschi.
-- With approximately 25,000 employees and annual sales of close to
euro 4.7 billion (2006) the Passenger and Light Truck Tires division is
under the responsibility of Manfred Wennemer. Following conclusion of
the joint venture with Matador, Continental is now No. 1 in passenger
car tires in Europe and No. 4 worldwide. Since 2003 Continental has
also been the leading supplier of original equipment passenger car
tires in the European market and the leading manufacturer of winter and
tuning tires.
-- With more than 8,000 employees and annual sales of close to euro 1.5
billion (2006), the Commercial Vehicle Tires division, headed by
Executive Board member Dr. Hans-Joachim Nikolin, offers bus, truck and
industrial tires for the most diverse service areas and application
requirements. The products are all successful in the original equipment
and replacement trade.
-- The ContiTech division is the world's major manufacturer in the field
of non-tire rubber and plastics technology. As a development partner
and OEM, the company develops and produces functional parts,
components and systems for the automotive industry, machine and
apparatus manufacturing, rail vehicles, printing, the building trade,
the chemical and petrochemical industries, maritime navigation and
aviation, and mining. Executive Board member Gerhard Lerch is
responsible for the division, which realized sales of close to euro 2.9
billion in 2006 and employs nearly 22,000.
With annual sales of more than euro 25 billion (based on 2006 figures),
the Continental Corporation is one of the top five automotive suppliers
worldwide. As a supplier of brake systems, systems and components for the
powertrain and chassis, instrumentation, infotainment solutions, vehicle
electronics, tires and technical elastomers, the corporation contributes
towards enhanced driving safety and protection of the global climate.
Continental is also a competent partner in networked automobile
communication. The corporation currently employs approximately 150,000 at
nearly 200 locations in 36 countries.
SOURCE Continental AG
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Related links:
http://www.conti-online.com
http://www.mediacenter.continental-corporation.com
http://www.prnewswire.com/comp/437525.html /
CONTACT:
Dr. Heimo Prokop, Vice President Corporate
Communications, +49 511 938-1485, or Hannes Boekhoff, Head of
Press, +49 511 938-1278, both of Continental AG, Fax: +49 511
938-1055, prkonzern@conti.de
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