VW buys 8.2% stake in carbon fiber SGL Carbon. BMW unware

News | March 3rd, 2011 by 5
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At the Geneva Motor Show, Volkswagen announced that it has taken an eight-percent stake in SGL Carbon, BMW’s partner in the new carbon-fiber venture announced …

At the Geneva Motor Show, Volkswagen announced that it has taken an eight-percent stake in SGL Carbon, BMW’s partner in the new carbon-fiber venture announced back in 2009.  A Volkswagen spokesman said for Automotive News that there is currently no intention to increase the SGL holding above 10 percent.

According to an estimate based on last closing price of SGL, deal is worth 136 million Euro or $187.6 millions.

The acquisition came as a surprise to  BMW and it seems to have produced a conflict between the two carmakers. In a statement at Geneva Motor Show, Norbert Reithofer, BMW CEO, said that BMW was not aware of situation ahead of time.
VW buys 8.2% stake in carbon fiber SGL Carbon. BMW unware

VW did not tell us about it. We weren’t warned in advance,” Norbert Reithofer, CEO of BMW, told reporters on Tuesday during the Geneva auto show.

The joint venture between BMW and SGL Group included also the plans to build a high-tech carbon fiber factory in Washington State and investment was said to be as much as 230 million euros. The plant will produce carbon fiber material which will be used for the upcoming BMW i electric cars.

First vehicle to be take advantage of the carbon-fiber is the BMW Megacity Vehicle which launches in 2013.

  • http://www.facebook.com/profile.php?id=100001688446429 Giom Mouton

    This is highly unusual. Something smells fishy – and I’m not refering to VW – I mean about the deal. The very reason that SGL wouldn’t consult BMW on the deal is suspect.

    This, in effect, means that VW now has access to BMW carbon technology – taking away the edge that they had. I’d be pretty peeved if I was BMW.

    It also beckons the question… Can’t VW do something of their own?

  • http://www.facebook.com/darrenyoon Darren Yoon

    Definitely fishy! VW Group has made BMW enemy #1 seemingly & while I respect them doing good products, buying any VW Group car is like buying from the Third Reich… wanting to conquer the world with their current inventory. Perhaps a grudge that BMW ‘took’ Rolls Royce from them…? RR is back in full flight in automotive history.. can’t say the same about Bentley…

  • tweer

    unware really, I was unaware of the existence of this word until today, I will add it to my dictionary.

  • Alex

    SGL is a publicly listed company in both Germany as well as the US and VW may well have accumulated its stake on the open market or from a third party. Rules regarding communication of significant ownership in shares are apparently not as stringent in Germany as they are in the US.

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