The Executive Board of Continental has approved the separation of the company

The Executive Board of Continental has approved the decision to spin off the Automotive division (which produces automotive components such as sensors, displays, brake systems, etc.) into a separate company. Now, the separation of part of the business must be approved by the Supervisory Board and then at the Annual General Meeting on April 25, 2025. It is expected that the preparation for the reorganization will be completed in the third quarter of 2025, and the creation of a new separate company is planned by the end of next year.

According to the results of the third quarter of 2024, Continental's total revenue was 9.8 billion euros, and almost half of this amount was accounted for by the Automotive division - 4.8 billion euros. The tire business and the ContiTech division (which produces, for example, timing belts) received revenue of 3.5 and 1.5 billion euros, respectively, and both of these structures will remain part of Continental.

It is reported that during the preparation for the spin-off of Automotive, the company will "continue to strengthen the independence of the tire business and ContiTech". "We have strong and self-sufficient divisions with a clear structure, which are leaders in their market segments and are fully prepared for greater independence," emphasized Nikolai Setzer, CEO of Continental.

According to him, as part of the strengthening of the divisions' independence, the central moment will be the gradual transfer of various functions to them. "The goal is to create a flexible holding structure by the end of 2025," Setzer noted, adding that the divisions will have increasing corporate responsibility, as "it is most important at this level, closer to markets and customers".

"Our new structure will allow us to respond more flexibly to changes in customer and market requirements, which will enable us to use our capabilities with maximum efficiency," he concluded.