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Mannesmann Sachs and Siemens Agree Upon Development Partnership

5 November 1999

Mannesmann Sachs and Siemens Agree Upon Development Partnership in the Field of Automatic-Shift Gearboxes

    DUESSELDORF, Germany, Nov. 4 -- Mannesmann Sachs and the
Automotive Engineering Division of Siemens have agreed upon a technical
co-operation in the development of automatic-shift gearboxes (ASG).  The
purpose of the co-operation is to bundle the partners' technical know-how.  As
a specialist in powertrains, Mannesmann Sachs possesses great expertise in the
field of electric motor-driven automatic-shift gearboxes.  Siemens, on the
other hand, has long-term experience in the area of electro-hydraulic ASG
systems.  A respective framework agreement has been signed recently.  An
equity interest is not planned.
    The joint development work, the exchange of existing know-how and the
bundling of the respective system expertise is aimed at a further expansion of
market share in the growing market for automatic-shift gearboxes; in future,
these will be installed in large numbers in various classes of vehicles.
    Mannesmann Sachs is a leading international development partner and
systems supplier for powertrain and chassis.  In 1998, the company employed
20,000 people in 18 countries and reported sales of euro 2.15 billion.