German industrial and telecommunications group Siemens AG has created a new business division for its automotive activities - Siemens Automotive AG.
The move comes ahead of the planned integration of VDO, the automotive components subsidiary of Atecs Mannesmann. Siemens and Bosch bid for Atecs Mannesmann in April - although they are still awaiting regulatory authority approval for the acquisition.
Siemens Automotive AG will have a leading position in the fast-growing cockpit and navigation and automotive electronic markets. It will have annual sales of E7 billion.
Financial analysts expect Siemens Automotive AG to be floated off by Siemens in a few years, following the model of Siemens' successful divestment of its semi-conductor business Infineon last year.