The automotive supplier Leoni is about to be taken over by the Chinese company Luxshare. CEO Klaus Rinnerberger sees this as a great opportunity for the future.
The Nuremberg-based auto supplier Leoni is about to be taken over by the Chinese company Luxshare. Leoni's CEO Klaus Rinnerberger sees the takeover as much more than just financing. “I am convinced that the partnership with Luxshare is the best thing that can happen to Leoni,” Rinnerberger told the Reuters news agency in an interview published on Friday. Contrary to original expectations, customers from the German automotive industry reacted positively to the Chinese partner.
Luxshare makes computer cables and also produces parts for Apple, but is now also a large supplier of car wiring. With this new partner, Leoni now wants to gain a stronger foothold in the Chinese car market. In Europe, Leoni is the market leader in its field, but Rinnerberger sees the future primarily in Asia: “The European car market will show the lowest growth in the next few years; the growth will take place primarily in Asia.”
Rinnerberger, a close confidante of investor Stefan Pierer, defended the partial sale to the Chinese company Luxshare. Pierer took over Leoni a year and a half ago through a StaRUG process for 150 million euros and saved it from bankruptcy. The company had overtaken itself with an aggressive growth course and was groaning under a debt burden of 1.5 billion euros.
The sale of 50.1 percent of Luxshare and the complete transfer of the profitable cable division to the subsidiary Time Interconnect are intended to reduce the company's debts. Rinnerberger emphasized that the majority of the proceeds go to the banks, not to Pierer. Pierer himself is planning a long-term partnership with Luxshare. Rinnerberger himself also extended his contract, which was originally limited to one year, until 2027: “I'm really enjoying getting this company back on track.”
Leoni continues to make losses due to the weak automotive industry. Rinnerberger explained: “We have expanded our restructuring program and expect that provisions will push us into the red again in 2024.” However, Leoni wants to achieve better results by 2025. The restructuring is also putting a strain on the workforce: outside of production, around 4,500 jobs have already been cut worldwide, 400 of which are in Germany and other high-wage countries.
