Mahle buys Cosworth to expands its engine business

Stuttgart, Germany. The Mahle Group is acquiring UK engine specialist Cosworth Technology. The sales price was not announced.

The deal to take over Cosworth -- a specialist in the development, production and assembly of engines -- from the Audi group was effective January 1. It is still subject to approval by the German Federal Cartel Office.

In 1998, Audi purchased Cosworth Technology of Northampton, England, and its US subsidiary Cosworth Technology of Novi, Michigan, from Ford Motor Co.

Heinz K. Junker, chairman of the Mahle Group management board, said he sees the acquisition of Cosworth Technology as "another important element of the company's long-term plan to become a supplier of engine technologies and systems."

Jochem Heizmann, Audi board member for production, said the Audi link made it difficult for Cosworth to win contracts with other automakers. He said that Mahle ownership can give Cosworth the independence "that is necessary in this sensitive business."

Cosworth has four locations, including three in England and a total of 970 employees.

Cosworth achieved sales of around 162 million euros in 2003. Its US subsidiary managed sales of approximately 23 million euros.

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