Continental to list powertrain division mid-2019
Continental is moving ahead with an initial public offering of its powertrain unit and new corporate structure in the car-parts maker’s biggest overhaul in decades.
The German company plans to carve out the powertrain division, whose products include parts for combustion engines, early next year into a separate entity and then sell a part of the unit to investors as soon as mid-2019, Hanover-based Continental said Wednesday in a statement.
The supervisory board must still sign off on the plan at a meeting later this month.
Listing part of the division would generate cash to invest in growth areas such as electric vehicles and self-driving features. Continental’s powertrain unit generated 7.7 billion Euro in sales last year and employed more than 40,000 people. The overhaul will also reorganize some of the company’s other units.
Continental plans to retain control of the new listed unit, it said, and may consider moving into making battery cells. A decision on that plan would come after 2020. The company, also a tire-maker, said selling a stake in its rubber division was an option in future, though that’s not planned at present.