BenQ-Siemens Europe faces collapse

Quakester2000

September 28, 2006

After BenQ unloading their Optical division, it seems their
European mobile phone operations are now facing bankruptcy. BenQ said
that the European mobile division will file for bankruptcy within the next
few days. The collapse of thee mobile division will mean the loss of around 3000
jobs inBocholt, Kamp-Lintfort and Munich. As well as job losses in Germany, design centres in Poland, and Brazil will also be affected. While Europe will see the end of the BenQ-Siemiens brand, operations will still be continuing in Asia.

Siemens was already in bad shape before BenQ took control and resulted in BenQ taking a massive $185.2 million loss for the 4th Quarter. Losses from the mobile division have reached $840 million after product release delays, along with high marketing costs and increased completion from Nokia and Motorola.

BenQ's mobile phone business - the former Siemens division BenQ took over less than a year ago for €250m - is facing imminent collapse. A spokesman for BenQ Mobile GmbH says the company will file for bankruptcy in the next few days as BenQ's board has decided to discontinue funding the German unit. At least 3,000 jobs in Munich and the production locations at Bocholt and Kamp-Lintfort are in danger. The design centre in Poznan, Poland, and a manufacturing site in Manaus, Brazil, will be affected too. BenQ says it plans to continue its Asian-based handset operations and the Siemens BenQ brand, but all European operations will end.

Siemens' mobile operations were already in bad shape when the Taiwanese bought the company last year. Since then losses have reached €840m, partly because of handset delays and increased marketing costs. BenQ is also in fierce competition with Nokia and Motorola. In July, BenQ planned to cut 10 per cent of its German workforce as part of restructuring, and slash the salaries of its executives.

Source: TheRegister