Uncertainty, debt and car parts were not the smartest combination just as credit markets crunched. Continental, the German car parts maker, bought SVDO from Siemens at the end of July for €11.4bn and has since been shunned by investors. Over the past eight months the shares have fallen 40 per cent. Should the company stay in the sin bin?

Managers say they have ruled out more large purchases and the balance sheet is not creaking. Continental carries net debt almost equal to its €11bn market capitalisation but, after funding capital expenditure, it should produce €1bn of cash this year, before asset sales. There is breathing space within its covenants and no big refinancing is necessary before 2010.