© Continental Electronics Production | September 03, 2019
Continental considers spin-off of powertrain division
Continental’s Executive Board has decided to consider the possibility of a spin-off of the Powertrain division (to be called; Vitesco Technologies) and subsequent stock exchange listing.
This review will be conducted in parallel with the company’s ongoing preparations for a potential partial IPO of the division. This is said to create more room for the company to manoeuvre, given an accelerating trend toward powertrain electrification and the hard-to-predict conditions surrounding a potential partial IPO in 2020. In addition the Board will aslo be examining the technical and legal requirements, the review of this option also includes the possibility of a complete spin-off. “This approach ensures that our powertrain business will be able to embark on its promising course under the best possible conditions in 2020 – regardless of whether it does so via a partial IPO or a spin-off. In addition, it provides all stakeholders with clear guidance on future planning so that they can focus on the actual business, its profitable growth and successful technological expansion,” says Continental CEO Dr. Elmar Degenhart, explaining the reasoning behind the review. In the press release he reaffirmed that the Powertrain employment guarantee would continue to apply through 2023 in the event of any changes to the company. “We are looking forward to 2020 and are eager to get started. We have a strong position, particularly in the areas of electronics and electrification, which are the foundations on which we will implement our profitable growth strategy. The important thing now is to step in early and play a greater role in shaping this unique growth market. In such a highly volatile and dynamic environment, we now need clarity fast regarding the next steps, as well as a high degree of independence and flexibility,” says Andreas Wolf, head of the powertrain business. Wolf went on to explain that the partial IPO has to date been the preferred option of many to achieve these goals. The review of a spin-off allows the company to consider a further option aimed at ensuring that Vitesco Technologies has the best possible starting position for success in 2020.