In a bid to cut losses, German supplier Continental is looking to sell its turbocharger business after deeming it “not so strategically important and lacks the scale required to compete globally,” insiders told Automotive News. The move is part of the company’s major restructuring programme.
Continental, Europe’s second largest car-parts supplier, is working with Citigroup Inc on the sale. It’s understood that the company is having talks with several potential buyers, but a sale is not yet The Volkswagen Group and Ford are among the few companies which use Continental’s turbochargers.
It isn’t the only one, though. Just last month, supplier Garrett Motion also filed for Chapter 11 bankruptcy protection with the United States Bankruptcy Court. It cites its struggles with debt amid the Covid-19 pandemic, as well as a dispute former parent company Honeywell over asbestos liabilities.
Continental added that it will post yet another quarterly loss due to impairments and restructuring measures. Its supervisory board had approved a major overhaul last month, affecting up to 30,000 jobs, some of which will either be displaced or eliminated.
Tags: COVID-19
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