BorgWarner BERU Systems has announced it has reached an agreement to make the Federal-Mogul Corporation the exclusive global distributor of its BERU aftermarket products. The agreement will be effective on January 1, 2013, subject to regulatory approvals.
Over the next few months, the companies will work to integrate the existing BERU Systems aftermarket distribution networks within Federal-Mogul. The end result is expected to provide a broader product offering to the aftermarket and a more global distribution network.
Products covered in the agreement include petrol ignition components, sensors, glow plugs and diesel cold start systems. These products will continue to be manufactured by BorgWarner BERU Systems to the same original equipment quality levels and sold under the well known BERU brand. This agreement does not impact BorgWarner BERU Systems continued direct support of customers in the original equipment assembly and service markets.
"This agreement further demonstrates Federal-Mogul's commitment to attain a leading market position for ignition products in both the original equipment and aftermarket segments," said Michael Broderick, Federal-Mogul co-CEO and Vehicle Components Segment CEO. He added "With the October 1, 2012 acquisition of BERU's spark plug business and this new license and aftermarket distribution agreement effective January 1, 2013 for all remaining BERU ignition products, the Federal-Mogul ignition portfolio brings new scale and choice to our large European aftermarket customer base. These are strategic investments in growing our ignition product portfolio, which will make a broader range of quality ignition products available to our aftermarket customers."