Brose, Volkswagen establish JV Brose Sitech for seat systems

by Autocar Pro News Desk , 05 Jan 2022


German Tier 1 supplier Brose and Volkswagen, one of the leading vehicle manufacturers have announced joint venture for seat systems christened ‘Brose Sitech’ goes live. Both the companies had announced their intent to establish the 50:50 stake JV in July 2020, which is headquarters in Polkowice, Poland.

The JV employees more around 5,000 employees at a total of eight sites in Poland, Germany, China and the Czech Republic. Brose Sitech expects to double business volume to 2.8 billion euros (Rs 23,148 crore) by 2030 and employee more than 7,000 employees.

Thomas Schmall, Group Board Member for Engineering Volkswagen and member of the Supervisory Board of Brose Sitech, sees great potential in the joint venture: "We had an intensive period of planning and preparation. I am delighted that Brose Sitech is now launching on the market as an independent full-range supplier of seat systems. The merger continues to be supported by Volkswagen and at the same time opens up many new perspectives. Brose Sitech is becoming a strong, sustainable company."

The JV is perfectly positioned to meet the challenges of the changing automotive industry. The megatrends e-mobility and autonomous driving are changing the requirements for vehicle interiors. With the vehicle becoming a mobile living space, the importance of interior and seats as a differentiating feature is increasing. 

Ulrich Schrickel, CEO, Brose Group and chairman of the Supervisory Board of Brose Sitech said: "Brose Sitech has the expertise and know-how to meet current and future demands for interior comfort, safety and flexibility. With innovative solutions for changing market requirements, the joint venture has everything it needs to convince customers and succeed in a highly competitive market."

Brose will take over industrial leadership in the joint venture and completely consolidate its operations.

Thomas Spangler, previously executive VP Operations of the Brose Group, chairs the Brose Sitech executive board. The top management team also includes Tomasz Lewandowski, CFO, and Stefanie Wangemann, chief human resources officer. "The joint venture marks the beginning of a promising new chapter in the seat market," says Spangler. "The competencies of Brose and Sitech complement each other perfectly. We have the best opportunities to leverage our synergies in product development and manufacturing, jointly open up new markets worldwide and win additional customers."

The JV intends to further expand its business with the Volkswagen Group and also supply other automakers with seat systems. In addition to existing development and production sites in Eastern Europe, Germany and China, plans are underway to expand activities in Europe, America and Asia. In the long term, the joint venture's portfolio is to be expanded to include innovative solutions for the entire vehicle interior. "Thanks to the strong partnership between Volkswagen and Brose, we can make important investments for the future and pave the way for growth in the coming years," explained Lewandowski.

As a leading supplier of seat systems, Brose contributes many years of expertise in manual and power seat structures and their adjuster components to the joint venture. In addition, the automotive supplier combines its mechatronic products into intelligent systems using software and sensor technology. Sitech has extensive expertise in the development, assembly and logistics of complete seat systems as well as metal structures.