90 IN THE SHADOW OF THE DRAGON of the revenue, which was 4 percent higher than the industry aver- age, and after-sales costs were running at 1.5 percent higher than the industry average. It was becoming increasingly apparent that the turnaround was not going to work unless TTE gained full con- trol of the sales and services network. After months of negotiations in 2005, Thomson sold the entire sales network, including Europe and North America, to TTE for $12.87 million. The turnaround team then decided to focus on the largest U.S. clients. The total number was reduced from 300 to 25. The restructuring created a sales organization of 80 people, down from 160 a year earlier. By the end of 2005, the total loss of the U.S. operations had been slashed in half to $45 million. TTE in Europe The European Union market that had been positive in 2002 experi-