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16/09/05

Permalink 03:03:02 pm, Categories: Companies, 155 words  

Motorola seeks sell-off of automotive products unit

US electronics and telecommunications company Motorola is said to be considering selling off its automotive products unit, a move some say could bring in over $1 billion.

The sale would fit into the plans of the company’s chief executive, who has been focusing more on the telecommunications side of its business. Selling the automotive products unit, which mainly makes products used in vehicle navigation and safety devices and sensors used in steering, braking and other systems, also makes sense in light of competition in the auto parts sector and the trend toward lower vehicle production and rising prices.

On the other hand, the company’s mobile phone handset business, which is gaining ground on sector leader Nokia by introducing products such as the super-thin RAZR mobile phone, brought in more than 50 percent of Motorola’s $31.1 billion in revenues last year. The automotive products unit employs around 5,000 people and had sales of around $1.7 billion last year.

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