BERLIN -- Thyssenkrupp and Japanese supplier NSK are considering forming an automotive joint venture, Thyssenkrupp said, as it continues to explore new ownership models for its key business areas to become leaner.
The two companies signed a memorandum of understanding to explore a tie-up between Thyssenkrupp's Automotive Technology division and NSK's steering business, Thyssenkrupp said. The goal was to develop an approach for a joint automotive business, the German steel company said.
"In the automotive business in particular, size and economies of scale are key factors for achieving success in global markets," CEO Martina Merz said in a statement on Thursday. "A collaboration between our automotive segment and NSK Steering could help us to further strengthen and expand this position," he said.
The companies aim to make a decision on a possible cooperation model by the end of the year.
Thyssenkrupp Automotive Technology accounted for a third of the company's adjusted operating profit last year and 13 percent, or 4.5 billion euros ($4.7 billion), of sales.