Benzinga | Mar 22, 2021 08:52AM EDT

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

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 (euro)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 ((euro)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.