Continental has agreed to purchase VDO, Siemens' automotive electronics unit but the deal is yet to receive regulatory approval. If all goes to plan, the deal should be finalized by the fourth quarter with full integration of the two suppliers expected by 2009.
Combined revenues of the two firms topped €25 billion last year, and together they employ over 140,000 staff. Continental is mostly known for its tire range but it also produces braking and vehicle stability systems as well as a number of other car parts. Siemens, meanwhile, is a specialist in the supply of information and in car electronics, navigation, control and fuel systems.