Eaton Is Said to Consider Separation of $5 Billion Vehicle Unit

Eaton Corp. is considering strategic options for its vehicle unit, people familiar with the matter said, as the electrical equipment maker looks to focus on high-growth businesses under its new chief executive officer.

The US-listed company is working with an adviser to explore a sale or spinoff of the unit, said the people, asking not to be identified discussing confidential information. The business could be worth as much as $5 billion in a sale, the people said.

Deliberations over a separation of the vehicle unit, which makes products including controls and transmissions systems, are ongoing and there’s no certainty Eaton ...