FRANKFURT (Reuters) – Volkswagen is expected to launch shortly the sale of transmissions maker Renk as the German carmaker streamlines operations to free up funds for investment in electric vehicles, people close to the matter said.
The world’s largest carmaker last month announced a corporate restructuring. It has 12 brands spanning trucks, buses, motorbikes, cars and electric bicycles.
Among other options, Volkswagen is exploring a full or partial sale, joint ventures or partnership for Renk. That comes two years after Volkswagen’s powerful works council thwarted an earlier auction of Renk, which makes transmissions and bearings used in ships and wind turbines.
Renk is 76%-owned by Volkswagen’s family ownership holding Porsche SE, with the rest of the shares being widely held. Its market capitalization stands at 700 million euros ($785.89 million).
Reporting by Arno Schuetze; Additional reporting by Edward Taylor; Editing by Michelle Martin