Automotive Part Maker Vitesco Eyes Apple Car For Its EV Foray: Bloomberg

Author: Anusuya Lahiri | March 22, 2021 08:52am

Apple Inc’s (NASDAQ: AAPL) debut in the electric car space has the potential to unlock newer revenue streams for Continental AG’s (OTC: CTTAF) (OTC: CTTAY) Vitesco Technologies powertrain unit, capitalizing on Apple’s unsuccessful attempts with Hyundai Motor Co (OTC: HYMTF), Bloomberg reports.

Soon-to-be spun-off Vitesco does not have many options, according to Bloomberg.
Volkswagen AG (OTC: VLKAF) (OTC: VWAGY) shares surged last week when it announced that it expected the electric vehicles (EVs) to account for 50% of the sales by 2030.
Vitesco Chief Executive Officer Andreas Wolf said in an interview that an Apple car would be an exciting development.
Vitesco estimated €2.5 billion in sales from turbocharger and injector manufacture that it expected to divest.
Vitesco expected to shift about a third of its sales into components for mild hybrids, plug-in hybrids, and fully electric cars over the next three to five years, including the deployment of existing products like engine controls into EVs.
Powertrain sales declined 11% to $8.3 billion (€7 billion) in 2020 due to the pandemic. Its business was also dented by the disruption in automotive production triggered by the semiconductor crisis that might persist the entire year.
Vitesco targeted a spinoff by the second half of the year, followed by its foray into the EV space with German ball-bearings maker and 46% Continental stake owner Schaeffler AG (OTC: SCFLF) as a potential partner.
Vitesco remains bullish over the company’s turnaround spurred by the electric-car components, sensors, electronics, and the divestment of unprofitable businesses.
Price action: AAPL shares traded higher by 0.68% at $120.79 in the premarket session on the last check Monday.