Siemens VDO Completes Acquisition of Ballard Systems' Electric Drive Business

DEARBORN, Mich.--Siemens VDO Automotive Corporation today officially completed the acquisition of Ballard Power Systems Inc.'s Electric Drive Business located in Dearborn, Mich., solidifying the company's long term commitment to the hybrid electric vehicle market and further electrification of the powertrain.

"This is a great day for Siemens VDO, as the Ballard Electric Drive acquisition is representative of Siemens VDO's strategy for growing our core competencies in alternative powertrain areas, such as hybrid electronics," said Siemens VDO President and Chief Executive Officer John Sanderson. "By becoming part of Siemens VDO, a recognized world leader in automotive electronics, Ballard and its valuable, highly-skilled employees will be in a position to capitalize on new business opportunities in the $14 billion (by 2015) global hybrid market."

The Ballard Power System Corp. Dearborn-based employees will join Siemens VDO's Powertrain Electronics and Drivetrain division. The Dearborn location will serve as the organization's North American center of expertise for the advancement of power electronics, motor design and electrical drive systems for hybrid and fuel cell applications.

“We are very excited to welcome the Ballard Power Systems Corp. team of employees to the Siemens VDO family,” said Sanderson during his first official visit to the Ballard Dearborn office. “We look forward to merging their skills and expertise into a stronger operation for the future.”

With the acquisition, Siemens VDO now has complete access to the 66,000 square foot research, development and manufacturing operation in Dearborn and will be integrating approximately 80 highly specialized personnel into the organization. The manufacturing capabilities, technical expertise and highly skilled workforce at Ballard will elevate Siemens VDO's North American hybrid business to a new dimension in automotive electronics.

As a subsidiary of Siemens VDO, the Dearborn operation will help the company gain access to a broader range of new business opportunities within the global hybrid electric drives market. The acquisition also demonstrates Siemens VDO's commitment to helping the United States reduce its dependency on foreign oil, as well as to reinforce the company's commitment to sustainability through its own practices, while also helping customers address their own sustainability needs.

Siemens VDO is a leading international automotive electronics and mechatronic supplier. The group is part of Siemens AG and generated sales of $12.120 billion (€10.017 billion) in the 2006 business year (ending Sept. 30).