BenQ weighs closing former Siemens unit
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BenQ has some pretty big decisions to make it would seem. Apparently, closing the former Siemens unit has not totally been ruled out of the equation.
PARIS The largest maker of mobile phones in Taiwan, BenQ, said mounting losses might prompt it to file for insolvency protection for its German unit, less than a year after taking over the operation from Siemens.
The unit employs about 3,000 people in Munich and western Germany. The move would be a setback for a company that aimed to capitalize on the Siemens name to become a consumer-focused international brand along the lines of Sony Ericsson.
German employees of the former Siemens unit had job guarantees until mid-2006, but the Taiwan company’s management and the IG Metall labor union were unable to agree on details to extend the deal.
BenQ has estimated that its mobile phone division has had losses of about €600 million, or $762 million, since it took over the Siemens business in October 2005…. Source: iht.com