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.
Looking to sell your car? Sell it with Carro.
Too many players in a small market. Might as well merge the few struggling turbo makers so there is business for all.
I think it’s something to do with battery powered cars and hybrids that killing turbochargers.
It’s the era of electric car la bro. EV rules
“Small market”? Around 95% of all cars in Europe are turbo charged.
Which many typically source from a single brand supplier ie car brand A will sourced turbo only from Brand A turbo for all their model ranges, leaving only few smaller turbo brands to scrape on a few contract manufacturing.
The turbo market in passenger vehicle will decline due to manufacturer are realising that small turbo engine is not the way forward in term of meeting emmission regulation.
Market is still there but its shrinking and shrinking and shrinking.
Always thought Continental is local brand coz Proton uses them and is considered cheap ttyre brand.
Just shows not everything coming from the Westerners are premium and of high quality.