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Audi to offer its Cosworth business for cut price £50 million

Audi is to sell its Cosworth Technology business, its specialist commercial engine maker, for a price believed to be in the region of £50m.

Audi's decision to sell off its Cosworth Technology division comes at the same time that Ford is looking for a buyer for Cosworth Racing, the business created by the split up of the former Cosworth organization when Audi bought it from Vickers in 1998.

Audi paid Vickers £220m, then soon after sold Cosworth Racing to Ford for around £100m, whilst keeping the engineering, manufacturing and casting unit which it renamed Cosworth Technology.

Cosworth Technology builds specialist performance engines for the prestige market. The company makes the cylinder heads and engine blocks for the Aston Martin Vanquish's V12 and for Audi it designed the engine for the top of the range Audi RS6.

Cosworth Technology employs around 1,000 people at plants in Northampton, Wellingborough and Worcester, it also has operations in Michigan, US.

The move by Audi follows the decision by parent company Volkswagen to restructure its business to focus on core sectors. Audi has appointed Lazard, the merchant bank, to sell the business.

(Source: datamonitor.com)



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