Volkswagen's Audi Courts Cosworth
Jun. 04, 1998
INGOLSTADT, Germany (AP) - German automaker Audi, a subsidiary of Volkswagen, said Thursday it was offering 350 million marks, or $197.7 million, to buy British-based Cosworth motor producers, a subsidiary of Vickers.
Audi said both companies have agreed to the deal, but it is contingent on whether Vickers stockholders vote to sell its Rolls Royce division to Volkswagen and the sale goes through.
Vickers stockholders will vote Friday to determine who will buy Rolls Royce. Top bidders are BMW and Volkswagen.
Audi also said the purchase of Cosworth still requires the approval of both companies' supervisory boards.
Cosworth makes motors for Formula One racing cars, among other products.
Last year Audi produced about 546,000 cars with sales of more than 22 billion marks. The German company employs some 38,000 people.