Joint venture for seating systems and interior solutions
Brose and Volkswagen intend to join forces to create a leading global supplier of seat systems and interior solutions. This is the result of a recent press release from the automotive supplier Brose.
The new company will be called Brose Sitech. Brose and Volkswagen already signed a contract for this in the spring. Now the antitrust authorities have given all the necessary approvals for the joint venture, as Brose reports. This means that the new company could start operations as planned at the beginning of 2022.
Seat systems and networked interior solutions
According to Brose, the new company will be active in the development and production of complete seat structures and components as well as networked interior solutions.
According to Brose, vehicle interiors are evolving into mobile living spaces. Requirements for comfort and safety are being supplemented by new and flexible options for personalized design, as the Coburg-based family company explains.
Independent supplier of complete vehicle seats
To establish the new company, Brose is taking on half of the Volkswagen subsidiary Sitech. The planned joint venture will then be held 50 percent each by Brose and Volkswagen, according to the press release. In addition, there is an agreement that Brose will take over the industrial management and consolidate the joint venture in terms of accounting.
The press release also states that the new company will be an independent seat supplier. Thus, while Brose Sitech will continue to expand its existing business with the Wolfsburg-based automotive group, it will also be active for other vehicle manufacturers.
Thomas Schmall, Member of the Board of Management of Volkswagen AG responsible for Technology and Chairman of the Board of Management of Volkswagen Group Components, explains: “The joint venture between Brose and Sitech opens up completely new possibilities for both partners. An independent full-range supplier of seat systems is being created, which will provide a breath of fresh air in the industry and enter the third-party market business.”