Motherson Sumi Systems (MSSL) has signed an agreement to acquire Bombardier Transportation’s Electrical Wiring Interconnection Systems (EWIS) activities.
The EWIS activities are carried out at the company’s manufacturing site in Huehuetoca, Mexico.
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Bombardier’s decision to sell these activities improves the company’s strategy of developing preferred supplier partnerships to enhance time-to-market, delivery and cost structure.
The sale will be conducted through MSSL’s Mexican subsidiary Motherson Rolling Stocks (MRS) among others.
MRS is part of the Motherson Rolling Stocks Division that designs and manufactures electrical cabinets, power packs and electrical distribution systems for rolling stock suppliers.
Bombardier Transportation chief operating officer Jim Vounassis said: “Bombardier Transportation aims to enhance its adaptability and agility to meet changing market conditions, in order to continue to increase its competitiveness and improve its global footprint.
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By GlobalData“This divestiture is in alignment with our global transformation strategy of reducing the activities to our core and integration competencies.”
EWIS offers harnesses and electrical assemblies based on standard solutions.
Following the acquisition, MRS will continue to produce the same electrical harnesses and assemblies that are currently manufactured at the Huehuetoca site.
Bombardier Transportation Americas president Elliot Sander said: “The transaction is beneficial to both parties since Bombardier Transportation has been seeking to establish a long-term supplier partnership for electrical harnesses and assemblies in the Americas region and MRS is an excellent partner for this.”
The sale and purchase agreement for the EWIS activities, which comprises an asset transfer, is expected to be completed within the coming months upon fulfilling certain closing conditions.
The companies have not disclosed the value of the deal.
