Motorola Inc. has hired J.P. Morgan Chase & Co. to pursue a possible sale of its 5,000-employee automotive-products unit, The Wall Street Journal reported on Thursday.
The newspaper cited people briefed on the matter as saying the unit could fetch $1 billion to $2 billion. Private-equity buyers are expected to be strong contenders for the business.
Spokesmen for Motorola and J.P. Morgan declined to comment, the Journal said.
Motorola’s automotive unit makes so-called telematics products that are used for vehicle navigation and safety services, as well as sensors used in steering, braking, and power doors and windows. Motorola sensors, for instance, alert drivers to oil-pressure problems and are used for remote keyless-entry systems.
The automotive division had sales of $1.68 billion last year, according to the company. Motorola’s largest division is its phone handset business, which accounted for more than 50 percent of the Schaumburg, Illinois-based company’s $31.3 billion revenue last year.
The Journal said the offer comes at a time when the auto-parts sector is in financial turmoil, squeezed between rising costs, lower vehicle production and cost cutting by customers.
