SITECH: Brose Group and Volkswagen AG’s New VentureBy Jorge Ramos Zwanziger | Tue, 04/20/2021 - 17:30
The Brose Group, an automotive supplier, and Volkswagen AG have signed an agreement to create a joint venture that would allow Brose to acquire half of SITECH, a subsidiary of Volkswagen AG, announced Brose on its website.
The agreement paves the way for the development and manufacturing of complete seats, seat structures and components along with solutions for vehicle interiors. Both companies will hold 50 percent of the shares of the subsidiary. This joint venture will allow SITECH to take a leading position in the global vehicle seats market, a highly competitive sector, according to Brose.
What Are the Plans for SITECH?
Brose, a leading provider of seat structures, aims to capitalize on its many years of expertise in the adjustment and creation of comfort components to propel the joint venture. “Our company also has the know-how needed to intelligently connect a vehicle’s interior by connecting mechatronic products with sensors and software,” said Ulrich Schrickel, CEO of the Brose Group, in an announcement published by Volkswagen AG. “SITECH, on the other hand, is a highly capable developer of complete seat systems, which excels at production and logistics. Through the joint venture, we can work together and provide customers with interior solutions for the future.”
Brose is also one of the world’s largest family-owned automotive suppliers, with 65 plants in 24 countries. In Mexico, Brose produces components for BMW, among other OEMs, at its plant in El Marques, Queretaro. “The El Marques plant focuses on electric motors for steering, transmission, HVAC and ABS braking systems, while other plants produce locks, window and door modules,” explained Manuel Guevara, General Manager of Queretaro-El Marques Plant for Brose Mexico, in an interview with MBN. “Mexico is bound to play a key role in the production of components for the car of the future inasmuch as the country continues to advance its capacities in this sector.”
The new joint venture will merge the strengths of both Brose and SITECH. According to Brose’s announcement, the company expects SITECH to sell about €1.4 billion (US$1.69 billion) during its first fiscal year and to double its business volume by 2030. Also, Brose and Volkswagen AG expect the joint venture to build a large workforce of around 5,200 employees that will eventually grow to 7,000.