OE supplier Delphi has announced that it is to spin-off its powertrain department into a separate independent and publically listed company.
Existing shareholders will automatically own shares in both companies in the plan, which is slated for completion in March 2018.
The need to put powertrain systems into a separate company has been attributed by Delphi to ‘megatrends’ – in other words the switch in developed countries away from diesel and to electrical systems, while in developing economies, the trend is for highly efficient, but very basic conventional systems.
Kevin Clark, CEO said: ““At a time of unprecedented industry change, the underlying strength of both our operating businesses and strategic partnerships will allow each company to focus even more sharply on its unique opportunities, continue to develop the very best advanced technologies, and help our customers navigate the road ahead.”
Timothy Manganello, currently an independent Director on the Delphi Board, will become non-executive chairman of the new Powertrain company’s board of directors upon separation.