Audi Sells Cosworth Engine Group to Mahle

Division that Built RS6 Twin-Turbo V8 is Out of Audi Hands

If you've never heard of Mahle Gmbh, you're not alone. The Stuttgart, Germany-based automotive supplier is among the

Mahle Gmbh has purchased famed high-performance engine development company Cosworth Technology Ltd. from Audi. (Photo: Rob Rothwell, Canadian Auto Press)

world's top thirty, achieving sales of 3.2 billion euros during 2003.

The behind the scenes supplier has just come to the forefront in a big way, by purchasing famed high-performance engine development company Cosworth Technology Ltd. from Volkswagen AG's premium vehicle division Audi.

Cosworth developed the 450-horsepower twin-turbocharged V8 that motivates Audi's RS6 super-sedan, among other engines for a variety of automakers.

So why sell? While no direct reason was given, Volkswagen, and its Audi division, has been under tremendous strain in recent years, having developed many new models such as the upcoming Golf, Jetta and Passat, plus the overzealous Phaeton which has not performed as well as the automaker initially expected.

Also, sales are slumping throughout the product lineup, the automaker has experienced many expensive recalls, and money has

The sale of the Cosworth brand is mainly due to the financial strain currently felt by Audi, and its Volkswagen AG parent company. (Photo: Rob Rothwell, Canadian Auto Press)

been invested into improving the reliability of Volkswagen and Audi products, both underachieving in various J. D. Power and Associates studies, among others. Due to this, and its aging product lineup, customer retention is also down.

The sale should generate much needed capital for the beleaguered automaker, although no sales price has been reported. The company, headquartered in England, grossed 112 million pounds ($265 million CAD; $218 million USD) during 2003, with $31 million ($38 million CAD) in U.S. sales.