Moto sells auto biz to Continental for $1B

Motorola, which has been shedding non-core businesses for years (including its semiconductor business, which was spun off to become Freescale in 2004) will scrap another of its classic lines, the company's automotive electronics arm, which includes sensors, telematics and safety-related electronics. The division will go to Continental AG, a German company best known in the US for its tires. The sale further focuses Motorola's business on cellphones and other communications technologies such as cable modems, two-way radios and set-top boxes. The move takes Motorola out of the automotive industry for the first time since 1930, when the company created the first successful car radio (hence the name "Motorola"). Of course, Moto's been out of that sector for years, and most car owners are unlikely to notice that the current divestiture has even happened, since most of the assets being sold are related to behind-the-scenes systems that don't include heavy consumer branding.

[Julius @ Apr 3rd 2006 11:49AM]

Motorola actually makes OnStar, GM's telematics system which in fact does have heavy consumer branding, the public is unaware Motorola actually manufactures the device. My assumption is that Motorola has also sold this business to Continental.

[Ben @ Apr 3rd 2006 12:13PM]

Interesting. I never knew where the name Motorola came from.

[Josh Wardell @ Apr 3rd 2006 12:48PM]

Farewell AIEG.
Mot making dumb movies again, selling off its one arm that made guaranteed profits.
Yes, their telematics included OnStar.
But even more widely used are their Body Control and Powertrain modules..many cars have motorola engine controllers.
Or did.

[Jay @ Apr 3rd 2006 1:42PM]

Moto made OnStar which is used by GM which is getting closer and closer to bankruptcy as we speak hmm.... anyone see a trend here?

[raulr @ Apr 3rd 2006 2:01PM]

@ #3

It was profitable, but a very very minor part of Motorola's total business. It's profits were insignificant compared to the mobile devices and government/enterprise business units.

[Andrew Perkins @ Mar 22nd 2007 4:44PM]

I used to work there. Profits were reasonable and it was an innovative place to work -- I learned much in a short time, being fresh out of college. However, the new measuring stick is "killer profits" or else it is a waste of time. I left the company after my boss took credit for a couple patent ideas that were mine. I transferred out of AIEG to the cellular sector, and was laid-off within 6-months, major "suckage". I was much happier at AIEG, the small-fish so to speak. I really liked working in Seguin, but not so much Chicago. It is to bad engineering is losing its fun and innovation in favor of some stupid, blind bottom line. AIEG was a good place to work.