Continental’s powertrain business now Vitesco Technologies; partial IPO planned for the 2H 2019
Vitesco Technologies: Distinct focus on electric drives together with further optimization of internal combustion engines aimed at halving CO2 emissions by 2030
REGENSBURG, 1-May-2019 — /EuropaWire/ — Continental has just announced that its powertrain business has become an independent entity and will trade under the name of “Vitesco Technologies” as the introduction of the new name is scheduled to happen during the second half of 2019. The unit is the first part of the group that has completed its realignment. The new entity’s management team has fully been assembled and is in place since April 1, 2019.
Establishing its powertrain activities as an independent group of legal entities is part of Continental’s far-reaching organizational realignment in response to the profound changes in the automotive industry. Furthermore, rapid changes that are expected to occur in the powertrain industry over the next few years have also played their role into the move of having the powertrain unit transformed. Government targets for emission limits will largely determine the way the powertrain market evolves ahead.
The reorganisation of the division has taken place as planned at the start of 2019. The new company’s management team, led by Andreas Wolf, is in active preparations for the planned partial IPO, with further details likely to be made available to the capital market in the second half of 2019 while the new company could begin trading in 2020.
Commenting on the Powertrain transformation, Andreas Wolf who will be the CEO of the newly established Vitesco Technologies, said:
“We completed the transformation of Powertrain into an independent group of legal entities in record time. We could not have done this without the support of our people. The fact that over 99 percent of our employees moved to the new company demonstrates their confidence in the path that we have chosen to follow. The decision to become an independent business and the preparations for the partial IPO clearly show that we are both willing and able to change. These qualities will provide us with a competitive advantage.”
Andreas Wolf commented further on the Government regulations:
“The pace of regulation varies from one region to another. This calls for a great deal of flexibility on the part of the industry. As an independent company, we have more freedom as a business to react quickly and individually to the many different requirements.”
What’s in the name
“Vitesco” comes from vita, which is the Latin word for “life”, building on the image of energy, speed and agility while the “Technologies”, which is in the second part of the name, highlights the company’s ambition to be a supplier of innovative, groundbreaking technologies, systems and services.
Leader in powertrain electrification technology with strong market positions
The business areas of Vitesco Technologies will be continuously and systematically developed and improved to meet the future requirements of the market and society, specifically when it comes to local and global emission targets.
Vitesco Technologies will include within the scope of its activities all future business that involves hybrid and electric drive systems as well as all current battery activities in addition to the combustion engine business.
Continental’s powertrain business, which will from now own be Vitesco Technologies, is a longstanding technology leader in the field of powertrain electrification. Few system suppliers in the industry are capable of offering full electrification of the powertrain from a single source and one of them is Vitesco Technologies. Starting from the 48-volt system and integrated hybrid solutions for transmission systems and axles to fully electric drives that are combined with highly efficient power and charging electronics up to a battery management system that is optimized through intelligent energy and thermal management.
The electric powertrain in the Jaguar I-PACE, which was voted European Car of the Year 2019, relies on innovative power electronics from Continental Powertrain.
Continental Powertrain (Vitesco Technologies) order book stands at approximately €11 billion in 2018, and out of it around €2 billion was attributable to the electric mobility segment.
Andreas Wolf on the business of Continental Powertrain (Vitesco Technologies):
“We are starting from a good position and are confident that the realignment will allow us to build strongly on this position. We plan to maintain an excellent range of products for a wide mix of drive technologies going forward. While the main focus will be on electrification, our intention is to cover everything from electrified internal combustion engines to full-battery electric and fuel-cell drives, as well as synthetic fuels. The reason for offering such a wide range of systems is to cater to the diversity of the markets and the different rates at which they are evolving, and the highly individual usage patterns of car drivers around the world.”
“Powertrain already enables extremely eco-friendly conventional drives. In both gasoline and diesel vehicles, our technologies deliver emission values significantly below the relevant limits. In the medium term, our comprehensive support for mild and full hybrid solutions will help to optimize the high-volume car market.”
“And looking ahead to the long-term need for zero-carbon mobility, we are already developing next-generation electric drives and laying the groundwork for carbon-neutral, hydrogen-based fuels for use either in fuel cells or in the form of synthetic fuels for combustion engines.”
“Through electrification and the optimization of internal combustion engines, we want to help achieve a 50% reduction in CO2 emissions by 2030.”
Andreas Wolf
Continental’s powertrain division has been under the lead of Andreas Wolf, 58, since October 2018. Wolf has been appointed Chief Operating Officer (COO) and Chief Executive Officer (CEO) of the new entity following the change of the business into the new corporate setup on January 1, 2019.
Andreas Wolf is coming from the Body & Security business unit at Continental’s Interior division where he served as its head since 2007.
Under Wolf’s leadership, the Body & Security business unit trebled its sales, exceeded its break-even point and continually achieved attractive profit margins.
Werner Volz and Ingo Holstein
Werner Volz and Ingo Holstein have both been with Continental on leadership roles for many years. Werner Volz will be the Chief Financial Officer (CFO) of the new entity. He served as head of Finance and Controlling in the Chassis & Safety division from 2008 and had a significant role in the restructuring of the division during the financial crisis of 2008/2009, as well as in the successful growth management of the driver assistance systems business.
Ingo Holstein has been appointed Chief Human Relations Officer (CHRO) of the powertrain business (since January 2019). Previously, he was the head of Human Relations for the Tire division since 2010. Holstein has extensive expertise in shaping businesses through HR work, as well as in management guidance and development.
Engine & Drivetrain Systems (E&DS), Powertrain Components (PTC), Hybrid & Electric Vehicle (HEV)
The newly established Vitesco Technologies will have three business areas that will operate economically independent. In order to strengthen their portfolio and boost their performance, the former Engine Systems and Transmission units have now been merged to create a new “Engine & Drivetrain Systems” (E&DS) business area. The E&DS portfolio will range from engine and transmission control units to injection systems, turbochargers and exhaust gas aftertreatment. The head of the E&DS will be Wolfgang Breuer.
The former Sensors & Actuators and Fuel & Exhaust Management units have also been transformed to form the new Powertrain Components (PTC) business area. The PTC portfolio includes fuel delivery modules, catalytic converters and SCR dosing control units, as well as sensors and actuators for all types of vehicle and drive system. Klaus Hau will lead the Powertrain Components (PTC) business area.
There will be no changes to the Hybrid & Electric Vehicle (HEV) business area as a strategic growth area. Under the HEV unit are all the main components for drivetrain electrification in hybrid and electric vehicles. The Hybrid & Electric Vehicle (HEV) business will be under the leadership of Thomas Stierle.
Certain central functions, previously handled at group level, have also been affected by the structural changes. The Powertrain business has established a number of those functions as a part of the organizationally independent Vitesco Technologies. As part of the new organisation, one of the most important will be the new Operations unit, which will be responsible for all production and logistics functions. It will provide support to the global production facilities, which are now operated by Vitesco Technologies. The company will also have its own Sales & Marketing, IT and Quality & Environment functions.
All the major OEMs are clients of the Continental’s Powertrain business. Vitesco Technologies will run over 50 production and development facilities across all the regional markets and will employ some 42,000 people worldwide. The Powertrain business (Vitesco Technologies) will remain under the overall stewardship of its head office in Regensburg, a Bavarian city in southeast Germany.
Continental’s powertrain business new organisational structure
Media contacts:
Simone Geldhäuser
Press Spokesperson
Powertrain
Phone: +49 941 790-61302
Fax: +49 941 790-9961302
E-mail:
Simone.Geldhaeuser@continental-corporation.com
Dr. Anne-Kathrin Bräu
Vice President Communications
Powertrain
Phone: +49 941 790-4623
Fax: +49 941 790-994623
E-mail:
Anne-Kathrin.Braeu@continental-corp..