The supervisory board of Continental AG has approved the planned spin-off of the powertrain division Vitesco Technologies with a subsequent listing on the stock exchange. In addition, Vitesco has moved into a new regional headquarters in China.
Continental had postponed the plans for the spinoff indefinitely last year. The reason given in May 2020 was the coronavirus pandemic and the continuing economic uncertainties associated with it. The intention was to take this step “as soon as the market environment for this has noticeably improved and strengthened”.
That is apparently the case now, at least that is how the supervisory board sees it. However, the shareholders still have to give their consent, which is to be done at the annual general meeting on 29 April 2021. Once approval is given, the company aims to spin off Vitesco Technologies in the second half of 2021.
“If the shareholders agree, we will turn one global champion into two in the future – each in their own area,” says Supervisory Board Chairman Wolfgang Reitzle. “Vitesco Technologies is a trailblazer in the field of powertrain electrification, and Continental is a pioneer for connected, safe and sustainable mobility.”
As part of the strategic realignment, not only will Vitesco be listed on the stock exchange, but on 1 January 2022 the areas for systems for driver assistance and automated driving will be bundled as an independent business unit “Autonomous Driving”. “The autonomous mobility market will more than double in the next three years,” says Conti CEO Nikolai Setzer. “Owing to the strategic significance of the necessary technologies and their promising growth prospects, we are intensifying our focus here by creating new structures to research, develop and industrialize these technologies.”
Meanwhile, Vitesco Technologies has opened its new headquarters in Shanghai. Around 450 employees have moved into their new 6,000 square metre offices in Yangpu District in the past few days. The opening and recognition as a regional headquarters was preceded by certification by the Shanghai Commission of Commerce.
“The Chinese market remains essential for the further development of e-mobility and thus also for Vitesco Technologies. With the new regional headquarters, we now have a firm foothold there to drive forward the mobility of the future hand-in-hand with strong partners in the market,” says Andreas Wolf, CEO of Vitesco Technologies.
Vitesco Technologies operates several production, research and development sites in China. The opening of the new research and development centre in Tianjin is planned before the end of the year.
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