Three major private equity firms have submitted bids for Volkswagen's heating and engine technology business, according to sources familiar with the matter. Blackstone, EQT, and CVC Capital Partners are among the suitors competing for the division, which is being valued at between €5 billion and €6 billion.

The business, which produces heat pumps and shipping engines, represents a significant industrial asset within Volkswagen's portfolio. The unit's technology plays a crucial role in both automotive and industrial applications, making it an attractive target for private equity investment. The bidding process has attracted multiple parties, reflecting strong interest in the sector.

Volkswagen's decision to explore strategic options for this business comes as the automotive giant continues to streamline operations and focus on core competencies. The potential sale would mark one of the largest divestitures in the company's recent history and could reshape the industrial heating and engine technology market. The German automaker has not yet announced a preferred bidder among the three competing offers.