FRANKFURT -- Continental is postponing the planned listing of its powertrain unit Vitesco Technologies, citing ongoing economic uncertainty.
Shareholders will not be asked to sign off on the plans for a Vitesco spinoff at the annual general meeting on July 14 and the deal will not take place this year, Continental said in a statement on Thursday.
"We are now arranging the organizational and procedural requirements so that Continental and Vitesco Technologies are in a position to swiftly implement the spinoff with listing once the market environment is suitable. The decisive preparations for this will have been completed by the end of the year," Vitesco CEO Andreas Wolf said.
With the listing, Continental is hoping to capitalize on the industry's rapid move toward electrification. By 2025, Vitesco expects 40 percent of all powertrains to be electrified because of a combination of tougher global emissions regulations and rising consumer demand.
Automotive News Europe contributed to this report
