Motorola agreed to sell its worldwide automotive electronics business to Continental AG on April 3, 2006, for an announced purchase price of US$1 billion. The sale was completed in July 2006; Motorola said the business began operating as Continental on July 2.
What did Continental buy from Motorola?
The transaction covered Motorola’s worldwide automotive electronics business, not Motorola as a whole. Its products included electronic control units for powertrain, chassis-control and interior applications, along with sensors and embedded telematics. Telematics products connected vehicles with external networks to support functions such as telecommunications and navigation.
Continental said the acquisition would add telematics to its product range and expand its capabilities in body and sensor electronics, powertrain and chassis controls. That was the buyer’s stated rationale at the time, not a measure of results after the acquisition.
In its April 3, 2006 announcement, Continental reported that the business had generated approximately US$1.6 billion in revenue in 2005 and employed about 4,500 people. It also identified major production and engineering facilities in the United States, Mexico, France and China. Those figures describe the business at the time of the announcement, not its current scale or footprint. Continental’s announcement quoted Executive Board chairman Manfred Wennemer calling the business “a perfect fit” with the company’s strategy for sophisticated safety systems.
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- Replaces TR7412UB-OR
- Replacement stereo without all the disco lights
- Includes 12V AC111 ISO wiring loom pigtail
- Updated 4.2 bluetooth chip
- Siri/Google Assist compatible
When was the sale agreed and completed?
| Date | What happened |
|---|---|
| April 3, 2006 | Continental announced an agreement to acquire the worldwide business for US$1 billion, subject to regulatory clearance and other closing conditions. Continental announcement |
| June 23, 2006 | Continental said the European Commission had approved the transaction and that U.S. Hart-Scott-Rodino waiting-period clearance had also been received. It expected to close in July. Continental announcement |
| July 2, 2006 | Motorola said the former unit began operating as Continental. The announcement noted that China assets and employees would transfer after outstanding conditions were satisfied. Motorola completion announcement |
| July 3, 2006 | Motorola announced completion of the sale. Its announcement’s China qualification means the operational transition date should not be read as proof that every asset and employee transferred that day. Motorola completion announcement |
How much did Motorola receive?
The transaction’s announced price and Motorola’s later net-cash figures are different measures. Continental described the agreed purchase price as US$1 billion in April 2006. Motorola’s third-quarter filing later reported approximately $919 million in net cash received for the July sale of substantially all of the business. Its 2006 annual report, published in 2007, reported $856 million in net cash received and a $399 million pretax gain. Motorola’s 2006 annual report
The figures should be attributed to their respective announcements and filings rather than treated as interchangeable. The cited filings do not explain the difference between the third-quarter and annual net-cash amounts, so they do not establish a reconciliation.
Rank #2
- Replacement stereo without all the disco lights
- Includes 12V AC111 wiring loom
- OEM Quality unit
Why did Continental want the business?
Continental’s announced strategic case centered on broadening its automotive electronics capabilities: the acquisition added telematics and strengthened its presence in body and sensor electronics, powertrain and chassis controls. Motorola described the deal as a transition of its automotive business to an industry-focused buyer. These were the companies’ stated intentions when the transaction was announced, not evidence by themselves of its later commercial impact.
Quick Recap
Best Value
- INDUSTRIAL ELECTRONIC DISTRIBUTOR: Complete ignition distributor with integrated Ignitor module; replaces point-type Delco & Prestolite distributors with a maintenance-free electronic ignition system
- IGNITOR ELECTRONIC IGNITION TECHNOLOGY: Precision module switches higher energy than traditional systems, delivering improved combustion efficiency, faster starts, and reduced maintenance downtime
- COMPATIBILITY: For Continental F6 Series 6-cylinder engines: F170, F186, F209, F218, F224, F226, F244, F6170, F6186, F6209, F6226, F6244 (1940-1965) and F227, F245, F6227 (1965-Present)
- PRECISION TIMING PERFORMANCE: Maintains ignition timing within 1/4° accuracy down to zero RPM with an effective operating range from 0 to 6,000 RPM for consistent engine performance; for gas, propane & LP industrial applications
- DURABLE INDUSTRIAL DESIGN: Lightweight aluminum housing with superior venting system and O-ring seal helps reduce heat buildup and prevent oil leakage. Matching coil part number 40501, 40511 & 40611 available
Rank #4
- LINCOLN Continental 1998-2002
- Accommodates ISO double DIN mount
- Designed and manufactured with precision tolerances
- Designed for aftermarket double-DIN radios installation
- Made in USA
Rank #3
- INDUSTRIAL ELECTRONIC DISTRIBUTOR: Complete ignition distributor with integrated Ignitor module; replaces point-type Delco & Prestolite distributors with a maintenance-free electronic ignition system
- IGNITOR ELECTRONIC IGNITION TECHNOLOGY: Precision module switches higher energy than traditional systems, delivering improved combustion efficiency, faster starts, and reduced maintenance downtime
- CONTINENTAL ENGINE COMPATIBILITY: Designed for F4 Series (F124, F140, F162, F163) and Y4 Series (Y69, Y91, Y112) 4 cylinder engines; supports gas, propane, and LP industrial applications
- PRECISION TIMING PERFORMANCE: Maintains ignition timing within 1/4° accuracy down to zero RPM with an effective operating range from 0 to 6,000 RPM for consistent engine performance
- DURABLE INDUSTRIAL DESIGN: Lightweight aluminum housing with superior venting system and O-ring seal helps reduce heat buildup and prevent oil leakage. Matching coil part number 40501, 40511 & 40611 available
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