German automotive supplier Continental AG recently purchased majority interest in Seattle-based fleet management technology provider Zonar. Continental is hoping this deal to expand their mobility services will also strengthen their position in the United States.
Continental said that while they have purchased 81 percent of Zonar, Daimler AG will keep the remaining 19 percent interest that it already held in the telematics provider.
Established in 2001, Zonar provides telematics systems that enable fleet operators to roll out satellite-based connectivity services such as remote vehicle diagnostics. The company employs over 300 people.
This move by Continental is just the latest in a growing trend that is seeing car manufacturers and suppliers stray from producing and selling physical vehicles and parts. Because more and more people are beginning to rent cars rather than purchase them outright, they are beginning to switch towards mobility services. These services also typically command a higher profit margins.
Known predominantly in the U.S. as a tire producer, Continental also makes brake systems, powertrain and chassis components, and deals in automotive safety and vehicle electronics. Zonar will be integrated under the Commercial Vehicle & Aftermarket unit of the company.
Continental also announced that they purchased Indiana-based Hoosier Racing Tire on October 3 for an undisclosed amount.
NAFA Fleet Management Association
http://www.nafa.org/