Hanover, Germany – Continental Corp. has delayed the spinning off of its powertrain unit Vitesco Technologies, due to the ongoing economic uncertainty caused by Covid-19 pandemic.
Vitesco was scheduled to be spun off with listing in 2020 but the move has been postponed until the market environment has “improved noticeably,” Conti said in a statement 30 April.
The unit will, in the meantime, become increasingly independent so the spin-off can be implemented with greater flexibility.
“In the coming weeks, Continental’s executive board together with the management of Vitesco Technologies will discuss and decide about the transitional period up to this point in time,” the statement added.
Commenting on the decision, CEO Dr Elmar Degenhart said 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,” he added.
The Conti boss went on to say that Covid-19 pandemic has temporarily halted the market but the basis for future market growth remained unchanged.