Sep 3, 2019 - 12:53 pm

Continental considers splitting off powertrain division

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Parallel to the ongoing preparations for a possible partial IPO of its Powertrain division, Continental is now also considering a possible complete subsidiary of the Powertrain division (in future: Vitesco Technologies) with subsequent listing on the stock exchange.

This was decided by the Executive Board of the automotive supplier. Continental is thus expanding its room for maneuver “given an accelerating trend toward powertrain electrification and the hard-to-predict conditions surrounding a potential partial IPO in 2020,” the company announced. “The Executive Board and Supervisory Board will reach a decision regarding the actual implementation after the review has been completed.”

Continental had already agreed with the employees of the Powertrain division in 2018 to secure employment until 2023 for the partial IPO planned to date. According to Continental, this remains unaffected by current considerations. Originally, the company had planned the partial IPO for the second half of 2019, but the project was already postponed to 2020 in April.

In August, Andreas Wolf, head of Continental’s Powertrain division and future CEO of Vitesco, had already outlined his strategy. Within the drive mix, Continental anticipates varying dynamics. The market for high-voltage components and solutions for hybridization is growing “much more vigorously than expected.” This faster increase in production would “lead to an economically attractive business earlier than expected”.

“The future is undoubtedly electric. We are convinced of this,” Wolf said at the time. Continental, on the other hand, believes that “only selective growth opportunities will open up in the future” for pure combustion components.

continental.com

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Found on electrive.com
https://www.electrive.com/2019/09/03/continental-considers-splitting-off-powertrain-division/
03.09.2019 12:31