Core Viewpoint - Aptiv is planning to spin off into two separate companies to enhance value for investors, focusing on better capital allocation and higher growth potential [2][10]. Group 1: Company Background - Aptiv, originally Delphi Automotive, specializes in automobile components, particularly in electrical systems and advanced driver assistance systems (ADAS) [4]. - The company was spun off from General Motors in 1999 and restructured after filing for bankruptcy in 2005, eventually becoming Aptiv in 2017 [5]. Group 2: Financial Performance - Aptiv is projected to earn nearly $7.50 per share in 2023, a significant increase from $2.61 in 2021, reflecting a compound annual growth rate of 30% [7]. - In 2024, the electrical distribution systems (EDS) business generated annual sales of $8.3 billion with an EBITDA margin of 9.5%, while the safety and software segment generated $12.2 billion in sales with an EBITDA margin of 18.8% [12]. Group 3: Strategic Shift - The spin-off aims to separate the slower-growth EDS business from the faster-growing safety and software segment, allowing each to pursue distinct growth strategies [10][11]. - The new Aptiv is expected to target a broader market beyond the automotive industry, potentially leading to higher valuations and improved investor returns [13][14].