German technology firm Continental Corp. has put on hold spinning off its powertrain unit Vitesco Technologies this year, due to the coronavirus pandemic and the resulting ongoing economic uncertainty. It says it will “complete this step as soon as the market environment has improved noticeably and is more stable”.
Continental also adds that its Executive Board together with the management of Vitesco Technologies will discuss and decide about the transitional period up to this point in time. The goal is to further strengthen Vitesco Technologies future independence and to help it successfully use the time and opportunities until the day that it is organisationally independent. By doing so, Continental says it is “ensuring that the spin-off planned for later can be implemented with the shortest possible lead-in time and great flexibility once the market conditions change”.
CEO Dr. Elmar Degenhart: “We are continuing to rigorously pursue our plans for the spin-off. This is undoubtedly the right step, which we are committed to completing together, as soon as the market environment has improved noticeably and has become more predictable than it is at present.”