Each company will hold 50 per cent of the joint venture,which brings together Siemens' automotive branch and Mannesmann's automotive unit, VDO Kienzle GmbH. The combined operations will create the world's largest supplier of high tech electronics systems for cars and trucks, with sales of roughly 6.79 billion dollars and 50,000 employees worldwide, the companies reported. The new entity, which will take the name Atecs SiemensAutomotive AG, will begin operation July 1 and management said it aims to double sales to 13.58 billion dollars in five years.

Mannesmann AG was bought out by British mobiletelecommunications giant Vodafone AirTouch PLC in February. That deal only involved Mannesmann's telecom business. Before the takeover, the compan Y had already planned to spin off its engineering and automotive branches some time this summer.