Veoneer Inc. said Tuesday that it completed the sale of its money-losing U.S. brake business to German supplier ZF Friedrichshafen for $1.
Veoneer, which spun off from Swedish supplier Autoliv in 2018, announced the divestiture plans in late April but didn't identify the suitor. The company will cooperate with ZF during a "limited" transition period.
The move is expected to reduce Veoneer's negative annual cash flow by more than $80 million for 2020 and 2021, the company said when announcing the divestiture.
The sale comes after Veoneer completed the divestiture of its Japan and China joint venture operations in February.
"For Veoneer today's announcement is another step in our strategy to focus on our core active safety and restraint control business," spokesman Thomas Jönsson told Automotive News in an email. "We started this process more than one year ago and we are very satisfied to have found a good new home for our U.S. based brake business.
"Our key objectives have been to find a solution that would be good for us, our customers, our employees and the new owner and we are happy that we have now achieved that."
Veoneer makes radar, vision systems and software for advanced driver-assistance systems. The company employs 7,600 people in 13 countries and generated 2019 revenue of $1.9 billion.