Volkswagen has received indicative offers from private equity houses for Everllence, the group’s unit that makes marine engines and heat pumps, as the carmaker advances plans to reduce its stake in the business.

According to the Financial Times, the suitors include Blackstone, EQT and CVC.

The first-round bidding deadline passed last week.

Sources familiar with the matter said potential buyers are pricing Everllence, formerly MAN Energy Solutions, at roughly €5bn ($5.9bn) to €6bn.

Those people added that other financial sponsors, such as CD&R and KPS, had previously explored a bid, while some industrial competitors also reviewed the opportunity.

Volkswagen is looking at carving out the asset by selling a controlling stake but intends to remain invested through a large minority shareholding.

A sale would support Volkswagen’s broader reshaping efforts amid softer demand and increasing competitive pressure from Chinese car manufacturers.

Volkswagen has also highlighted stronger cash generation than expected, reporting net cash flow of €6bn from its automotive division in 2025 as it pursues cost reductions.

The Everllence process is taking place alongside Continental’s auction of ContiTech, its belts and hoses operation.

Continental, headquartered in Hannover, is seeking to concentrate its activities on tyres.

The two transactions come as the European automotive industry grapples with competition from China and a slower transition to electric vehicles than previously anticipated.

One German investment banker said it was “a very rare situation where you have very similar assets in the same country at the same time”.

Continental has kept to its plan to sell ContiTech this year, despite the overlap with Volkswagen’s auction and a profit warning at the unit last month.

ContiTech posted an operating profit margin of 4.9% in 2025 after a weak fourth quarter, falling short of the company’s target range.

Even so, a person familiar with Continental’s thinking said the tyremaker believes there remains a “good deal” available in ContiTech and has been outlining the division’s potential upside to investors.

Volkswagen and Continental’s efforts to dispose of non-core assets mirror steps taken by other large European industrial groups that are streamlining portfolios while managing volatile energy prices, rising costs linked to environmental regulation and pressure from Chinese imports.

Private equity firms have been drawn to these situations, seeing potential to lift performance through further investment.

Representatives for Volkswagen, Blackstone, EQT, CVC, CD&R and KPS refused to comment.

In December, Volkswagen’s Audi division agreed to sell its controlling stake in Italdesign Giugiaro to California-based technology group UST, with Lamborghini retaining a significant interest.