Germany-based automotive components supplier Brose has launched a corporate venture capital unit that will operate from Berlin.
Brose produces electronically commutated motors, car doors and seat systems. Its headcount stands at approximately 26,000 staff and it operates offices in 64 locations across 24 countries. The subsidiary will concentrate on innovations relevant to Brose’s existing operations and new areas of business, it said.
The announcement of a corporate VC unit forms part of an investment initiative that will involve the deployment of €1.5bn to €2bn ($1.6bn to $2.2bn), and which is expected to be up and running by 2021.
The decisions are driven by a fall in revenue for the company amid a sluggish automotive sector. It expects the situation to stabilise in 2020 but is also gearing up for a sharp rise in technology development costs.
To increase its turnover, Brose will recruit additional staff in IT, software and electronics while significantly cutting down on its sponsorship deals. It also plans to bolster the activities of its e-bike division.
Brose has additionally announced that Ulrich Schrickel, executive vice-president of its door technology division, will become chief executive of the company from the beginning of 2020, replacing Kurt Sauernheimer, who is retiring.
