Volkswagen has announced that it and supplier Brose are planning to create a joint venture devoted to complete seats, seat structures and seat components. Volkswagen subsidiary Sitech will become part of the joint venture in which Brose will hold a 50 % stake with Volkswagen retaining the remaining half share.
Thomas Schmall, chairman of the Volkswagen Group Components Brand Board of Management, commented, “E-mobility and, above all, autonomous driving create new challenges for us as an auto maker – also in the area of seat manufacturing in particular. The interior of the future will be a newly defined environment where flexibility and personalization will be just as important as comfort and safety. The new joint venture will be able to perfectly address such needs. As part of the new joint venture, Sitech will become a global player.”
Ulrich Schrickel, CEO of the Brose Group, added that the firm would bring useful expertise to the partnership: “Our company also has the know-how needed to intelligently connect a vehicle’s interior by connecting mechatronic products with sensors and software. Sitech, on the other hand, is a highly capable developer of complete seat systems and excels at production and logistics. In the joint venture, we can work together and provide customers with interior solutions for the future.”
Volkswagen and Brose say they will review the transaction as part of a due-diligence process and finalize the agreement negotiations over the next few months. The agreement is scheduled to be signed by the end of the year.