Rheinmetall has made its final preparations for the separation from its struggling automotive supply business. The Rheinmetall management has reached a comprehensive transitional agreement with representatives of the works councils from the automotive sector and IG Metall for the employees of the division up for sale, the company announced on Friday. In a transitional collective agreement, employee rights at German locations will be secured even after the transfer of their companies to the new owner. The package includes, among other things, job and site security for a period of three years for the German sites affected by the sale. The agreement is also binding for the buyer, emphasized Rheinmetall board member Vera Saal. Rheinmetall still aims to sign the sale contract by the end of March.
Rheinmetall stated that it had recently been negotiating the sale with two bidders. Talks are ongoing, a spokesperson said. The Düsseldorf-based group put the division up for sale as it has been struggling with declining revenues and profits. The Power Systems division, which manufactures parts for the ailing automotive industry, is no longer part of the DAX group's core business. Rheinmetall intends to focus on its profitable and currently rapidly growing defense business.
(Report by Matthias Inverardi, edited by Ralf Banser. For any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
Rheinmetall AG specializes in the design, manufacture and marketing of equipment, components and solutions for the military and civilian industries. Net sales break down by family of products as follows:
- vehicle systems (38.7%): multi-purpose wheeled and tracked vehicles (tactical military vehicles, support vehicles, logistics vehicles and special vehicles);
- weapon and ammunition systems (26%): automatic cannons for land, air and sea vehicles, smooth-bore weapons, artillery systems, smart projectiles, high-energy lasers, etc.;
- sensors, actuators and power systems (20.8%): actuators, exhaust gas recirculation systems, throttle valves, exhaust gas dampers for electric motors, solenoid valves, pumps, etc. used in thermal and fluid management applications in the mobility and industrial sectors;
- electronic solutions (13.5%): sensors and networking systems, cyberspace protection solutions, air defense systems, radar systems, technical documentation solutions, integrated electronic systems, drones and automated ground robots, training and simulation solutions;
- other (1%).
Net sales are distributed geographically as follows: Germany (30.4%), Europe (46.6%), Asia and Middle East (9.6%), Americas (7.6%) and other (5.8%).
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