- It has signed a non-binding agreement with a well-established automotive supplier to divest Veoneer’s yet to be launched US brake control programs.
- Veoneer said that through this divestiture, it expects to achieve total reductions of negative cash flow of more than $80 million for 2020 and 2021
Automotive technology company Veoneer has decided to focus on its core electronics business and exit the brake control business. It said that it has signed a non-binding agreement with a well-established automotive supplier to divest Veoneer’s yet to be launched US brake control programs.
Veoneer is an auto tech company focused on hardware and software in the safety domain. After the divestiture Veoneer aims to further strengthen this core product offering and continue to build on this leading position as per the company.
Sale of the Asian portion of Veoneer’s brake control business
Veoneer said that through this divestiture, it expects to achieve total reductions of negative cash flow of more than $80 million for 2020 and 2021 because these programs are in an investment and ramp-up phase ahead of major launches. The company also said that the divestiture to a well-established automotive supplier follows the completion of the sale of the Asian portion of Veoneer’s brake control business. This new company will take over the entire team. This team will be able to continue to work on these important programs. The agreed purchase price is $1.
