Motorola Sells Automotive Electronics Unit German Company to Pay $1 Billion for Operations
Kane, James, Daily Herald (Arlington Heights, IL)
Byline: James Kane Daily Herald Business Editor
Motorola Inc. said Monday it is selling its Deer Park-based automotive electronics business to Continental AG of Germany for $1 billion.
Continental also is buying the office building and it plans to keep on the 800 employees there, who work in areas such as development, engineering, marketing and operations.
Continental sees a promising future for the telematics business whose international headquarters will be in Deer Park, said Karl- Thomas Neumann, president of Continental Automotive Systems, a division of Continental AG.
"This place is very important to us. We want to grow in North America," Neumann said, adding that Continental, with 80,000 employees, is the second-biggest automotive supplier in Europe and in the top 10 worldwide. The acquisition will double its U.S. business.
Motorola's automotive electronics business has 4,500 employees and had nearly $1.6 billion in 2005 sales.
Motorola decided to get out of the business because it lacked the scale and category leadership to compete in a consolidating industry, said Greg Brown, Motorola's president of networks and enterprise businesses. …