Supply and Demand
Automotive Industries staff
North AmericaHoneywell Acquires Sensotec Inc.
Honeywell’s Automation and Control Solutions unit has signed an agreement to acquire the assets of Sensotec Inc. Sensotec supplies sensors for measuring pressure, torque, load, temperature, force, acceleration and displacement. These products are used in test and measurement applications. Following the close of the acquisition, Sensotec will become part of Honeywell’s ACS Sensing and Control unit. The transaction is subject to government approval.Timken Completes Torrington Acquisition
The Timken Co. has completed its acquisition of The Torrington Co. that it announced October 2002. Timken acquired Torrington from Ingersoll-Rand for $840 million -- $700 million in cash and Timken shares valued at $140 million.
Timken expects the acquisition to be accretive to earnings per share by at least 10 percent in 2003. Timken’s acquisition of Torrington creates the world’s third-largest bearing company with approximately $3.8 billion in sales and expands the company’s portfolio of automotive and industrial bearings-based products and service solutions.EuropeVolkswagen/Siemens Diesel Injection Systems
Volkswagen has agreed in principle with Siemens VDO on a joint venture to make diesel injection systems. Speaking at the company’s annual general meeting, Siemens Chief Executive Heinrich von Pierer stated that the Siemens VDO unit was in advanced talks about diesel injection pumps with Volkswagen. No further details were provided. It has been announced that the two companies plan to invest $535.9 million in a factory in Stollberg, Germany.Penske Buys VM
The European Commission has approved the purchase of a stake in Italian engine maker, VM Motori SpA, a unit of DaimlerChrysler AG by Penske Corp. VM Motori manufactures approximately 70,000 diesel engines annually. The deal was approved under the Commission’s simplified antitrust procedure. This clears mergers or acquisitions after one month if no objections are raised by third parties. There has been speculation that when DaimlerChrysler bought Detroit Diesel Corp. from Penske that the VM operations were not to be included in the sale. The two companies eventually decided to include VM in the DDC sale and to revisit the ownership of VM at some point after the sale. Apparently that point has now been reached. AsiaHella Forms Alliance with Japanese Auto Supplier
Hella KG Hueck & Co. of Lippstadt, Germany, has formed a strategic alliance with Taiko Device Techno & Co. Ltd. of Tokyo, Japan, to market automotive plug-in and printed-circuit- board (PCB) relays. According to Hella North America, under the agreement with Taiko, both companies will sell Taiko automotive PCB relays with their own trademarks through their respective sales channels in the NAFTA region and in Europe. Hella has a major share of the world market for plug-in relays. Taiko has a top share of the Asian market for PCB relays, but is behind its competitors in other overseas markets. Hella's core business areas include automotive lighting, electronics, complete vehicle modules and the independent automotive parts aftermarket. Taiko Device Techno & Co. Ltd. specializes in the production of automotive PCB relays. The company has three production divisions in Asia: Taiko Device Ltd., Tochigi, Japan; Shenzhen Baoan Shajing Taiko Electric Factory, Chenzhen, China; and Jinyoung Electro-Mechanics Co., Ltd., Masan, Korea. The PCB relays are supplied to Japanese, American and European car manufacturers.