Business
Vitesco open to sale of ICE division – CEO
Published by maria gbaf
Posted on January 25, 2022
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by maria gbaf
Posted on January 25, 2022
2 min readLast updated: January 28, 2026
Vitesco may sell its ICE division as it focuses on electric car parts. Despite returning to profitability, supply chain issues pose challenges.
By Christina Amann
BERLIN (Reuters) – Powertrain supplier Vitesco is open to selling off its internal combustion engine division, which came out of the red in 2021 after years of losses, CEO Andreas Wolf said on Monday.
“If someone approached us wanting to buy that business, and it made sense for the company and workers, we would certainly do that,” Wolf said.
The powertrain supplier, which in September spun off from its former parent Continental, is in the process of building up its portfolio in electric car parts and recently obtained a billion-euro order from an unnamed American manufacturer.
Vitesco was seeing orders coming in for 2022, Wolf said, but it was still unclear what effect supply chain issues like chip shortages and rising raw material costs would have on how many cars automakers could produce.
“There is no reason to believe that we will fall behind 2021, but we don’t expect any leaps,” Wolf said.
Vitesco’s revenues dropped 13% in the third quarter of 2021, its first as an independent company, to 1.9 billion euros ($2.15 billion) amid continued shortages in supply of semiconductor chips, with an adjusted EBIT margin of 1.2%.
The company expects to achieve a 1.5% to 1.7% operating margin in 2021. It is due to report annual results on March 25.
($1 = 0.8846 euros)
(Reporting by Christina Amann, Writing by Victoria Waldersee, Editing by Miranda Murray)
The article discusses Vitesco's openness to selling its internal combustion engine division as it shifts focus to electric car parts.
Vitesco is considering the sale to focus on its growing electric car parts portfolio.
Vitesco faces challenges such as supply chain issues, including chip shortages and rising raw material costs.
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