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Siemens forms auto JV
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March 20, 2000: 6:19 a.m. ET
High-tech auto electronics venture links Siemens, Mannesmann units
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LONDON (CNNfn) - Siemens linked up with Mannesmann Monday, to announce the creation of a joint venture in auto electronics with yearly revenue of 7 billion euros ($6.7 billion).
The Siemens Automotive Systems Group will join Mannesmann's VDO unit, both of which specialize in high-tech auto components such as braking and safety systems and cockpit electronics. VDO is part of Mannesmann's Atecs unit, which is slated for an initial public offering in June.
Britain's Vodafone AirTouch (VOD) last month agreed to buy Mannesmann in the world's biggest-ever acquisition. The U.K. firm wishes to dispose of all the German conglomerate's non-telecom activities.
The new venture, in which both partners will own 50 percent, had 1999 pro forma revenue of 7 billion euros and about 50,000 employees. In a statement Monday the companies said they plan to double revenue to 14 billion euros within five years. By cutting out duplicated administration and marketing expenses the venture plans to generate 400 million euros a year in savings.
The new company should commence operations on July 1, 2000, subject to the tie-up getting regulatory approval.
Frankfurt investors welcomed the move, driving Siemens (FSIE) stock 4 percent higher to 169 euros. 
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Siemens
Mannesmann
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