Continental says Vitesco spinoff will not happen this year
Due to the coronavirus pandemic and the resulting ongoing economic uncertainty, Continental has decided not to implement the planned spin-off with listing of the powertrain business Vitesco Technologies this year and to complete this step as soon as the market environment has improved noticeably and is more stable.
The Executive Board also decided to continue preparing the powertrain business for the intended spin-off as planned at a later point in time. The intended spin-off at a later point in time requires the approval of both the Supervisory Board and the Annual Shareholders’ Meeting.
“Without a doubt, clean drive systems are the value-creating business of the future. We are therefore more convinced than ever that Vitesco Technologies has very good prospects for profitable growth. To make the most of these opportunities, a high degree of entrepreneurial flexibility and thus independence on the highly dynamic powertrain market are required. Although the effects of the coronavirus crisis have temporarily halted the market, the basis for future market growth has not changed. We are therefore continuing to rigorously pursue our plans for the spin-off. This is undoubtedly the right step, which Continental and Vitesco Technologies are committed to completing together, as soon as the market environment has improved noticeably and become more stable and more predictable than it is at present,” said Continental’s CEO Elmar Degenhart, explaining the decision.