Dear Business Partner,
On December 20, 2022, Veoneer signed an agreement with one of the world’s largest automotive suppliers, Magna International Inc., pursuant to which Magna will acquire Veoneer’s Active Safety business.
Active Safety
Veoneer sees Magna as a very solid and suitable long-term home for the Active Safety business, as our products and capabilities are highly complementary. Magna’s strong support in infrastructure and build-to-print solutions will back up our technical expertise in ADAS systems. Jointly, we will be able to offer a stronger and broader ADAS portfolio to our customers. We strongly believe that our suppliers, customers and ultimately consumers will benefit from the combined businesses.
Upon the completion of the transaction, Veoneer’s Active Safety business will be integrated into Magna’s electronics operating unit. The transaction with Magna is expected to close near mid-year 2023, subject to approval of applicable regulatory authorities and other customary closing conditions. Until the closing of the Magna-Active Safety transaction, Veoneer continues to run as it has prior to today’s announcement.
Restraint Control Systems
We are progressing the process of finding the right long-term home for Veoneer’s Restraint Control Systems (“RCS”) business. The RCS business has highly competitive products, is well-capitalized and has a strong operational leadership team. This will ensure uninterrupted operations and customer deliveries throughout the process of separating Active Safety and Restraint Control Systems, the closing of both transactions, and beyond. It is imperative for us to have your continued support with securing our component supply, especially with the upcoming operational separation.
The short message is that through the sale process and beyond, Veoneer’s Active Safety and Restraint Control Systems businesses will have solid financials, operational capabilities, full customer focus and will execute on deliveries, new launches and production ramp-ups, while targeting new business from existing and new customers.
Please reach out to your normal contact in the coming days and weeks if you have feedback or with any questions you might have related to these transactions.
We hope you share our excitement for the future and, as we count on continued collaboration, thank you.
Best regards,
Håkan Söderlund
SVP Sourcing