Automotive Industry

Conti is in position to create megasupplier; Fusion of German partsmaker with Siemens VDO would challenge Bosch for No. 1.(Continental Automotive Systems)(Siemens VDO Automotive AG)

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Byline: Jens Meiners, April Wortham

An acquisition by Continental of rival Siemens VDO Automotive would propel the combined group to the top tier of the global supplier industry.

According to estimates, a merged Continental/Siemens VDO would have combined 2006 sales of more than [euro]25 billion.

That compares with 2005 sales of [euro]26.3 billion at Robert Bosch, the world's largest automotive supplier.

Moreover, if the German suppliers merged, they would become the second-biggest supplier of parts to the European automotive industry.

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