Porsche sells a roof manufacturing plant that it owns

[Guest]

Very interesting article. Never knew they owned this company..

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New owner for Porsche’s roof system manufacturer

CTS goes to Magna InternationalStuttgart. Dr. Ing. h.c. F. Porsche AG, Stuttgart, has sold CTS Fahrzeug-Dachsysteme GmbH, Bietigheim-Bissingen, to Magna International Inc., Aurora, Ontario. CTS is one of the leading manufacturers of roof systems for the automobile industry. A contract has now been signed by both partners. The purchase price is approximately EUR 170 million. The sale is subject to approval from the European anti-trust authorities.

CTS was founded in 1996 by Porsche AG and what was then Daimler-Benz AG. Porsche AG acquired the company completely in September 2003. During that time, the CTS business developed successfully and numerous other vehicle manufacturers signed on as customers. At the same time Porsche enjoyed continuous success in its core business as a vehicle manufacturer. A strategic realignment was necessary to focus on this area. As Porsche is increasingly facing competition from other automobile manufacturers, it is advantageous for CTS to be able to operate under the umbrella of an independent automobile supplier.

Dr. Wendelin Wiedeking, Porsche AG CEO, “Both partners will benefit from this decision. Porsche can concentrate fully on its core competencies such as development, production and sales of complete vehicles, while with Magna, CTS now has a partner which allows potential for new growth. As roof systems are particularly important for us, the owner change ensures that Porsche will continue to be able to obtain the relevant top-quality systems.

Siegfried Wolf, co-Chief Executive Officer of Magna, is also convinced that CTS can develop positively in the Magna Group: “CTS is one of the technology leaders in roof systems, a product area that we see as having good growth potential. Together with our current capabilities, we intend to leverage this technology to grow in roof systems both by broadening the current CTS customer base and by expanding geographically.

CTS Fahrzeug-Dachsysteme GmbH is one of the world’s leading suppliers of softtops, hardtops and so-called retractable hardtops. Its customers include not only Porsche and DaimlerChrysler but also Ferrari, General Motors, Saab, Peugeot and Opel. In the 2004 fiscal year, the company generated sales of EUR 417 million. CTS employs some 1,100 staff at its eight locations in Germany and the United States.

Magna International Inc., the most highly diversified automobile supplier in the world, designs, develops and produces complete systems, modules and components, and engineers and produces complete vehicles under contract from automobile and light truck manufacturers in North and South America, Europe and Asia. Magna employs more than 82,000 staff in 222 production facilities and 58 development centers in 22 countries.

GO

12/1/2005