Punch Powertrain acquires German TEG
On July 1st Punch Powertrain has acquired TEG - a mainly engineering company, located close to Wolfsburg, in Flechtorf, Germany. The new location, with its 71 employees, will be further developed as a window into the German automotive market. While the existing development and production activities will continue, Flechtorf will also take over some of the development projects currently running at Punch Powertrain’s main R&D facility in Belgium.
TEG was founded in 2002 in Wolfsburg and has quickly established itself as a transmission developer, hydraulics specialist and service provider for drive testing, acquiring various customers in the German automotive industry, such as VW, Daimler and Audi, as well as the Swiss industrial group Sulzer. TEG’s additional activities included prototyping and small series production for customers as top brand, Bugatti, employing over 100 people in past years.
In recent times, however, due to “two unfortunate projects” the company faced financial difficulties and was forced to file for bankruptcy and initiate the search for new ownership.
The activities of both companies are a 100% match. For Punch Powertrain the acquisition can be seen as an expansion of its activities to Germany and an extension of competences.
Additionally, momentary expansion of the engineering work force was decisive for the purchase. Because of its rapid expansion, Punch Powertrain is facing the challenge of hiring sufficient employees to support the growth.
The new location bears the name Punch Powertrain Germany GmbH and will be developed into the new “German headquarters”.
The acquisition has expanded Punch Powertrain’s customer and product portfolio and has provided an active presence on the German market. Flechtorf’s portfolio will also be extended, as they will take over various development projects from the R&D center in Belgium.
In the future, the office will further support R&D projects and continue to produce prototypes and small series. In line with growth of other locations, Punch Powertrain seeks to grow in Flechtorf, tapping into a new employment market.