Conti May Re-Negotiate Siemens VDO Purchase
Continental AG may be looking at renegotiating its 11.4 billion euro acquisition of the Siemens VDO unit. Reuters has reported that a “source close to the matter” gave the news agency this information on March 12.
Reuters quotes the source as saying “In the Powertrain division, there are significant problems” – apparent confirmation of an article published that day in the Hannoverschen Allgemeinen Zeitung newspaper. The source added that Conti “would have to negotiate with Siemens because Siemens did not sufficiently inform Continental before the acquisition.”
The division, which makes fuel and transmission systems, is the only division not turning a profit. The Hannoverschen Allgemeinen Zeitung reported that the Powertrain division did not only have problems with orders that are not cost effective, but also had problems with productivity and on-time delivery.