Continental AG has announced plans to spin off its Automotive group sector by the end of 2025, subject to necessary approvals.
The decision, made by the Continental executive board, follows a comprehensive evaluation that began in early August.
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The company plans to present the spin-off proposal to the supervisory board in March 2025, with a resolution to be made at the annual shareholders’ meeting scheduled for April 2025.
The preparations required for the spin-off are expected to be completed by the third quarter of that year.
This strategic move is an important step for Continental, marking a new phase in the company’s focus and operational structure.
Continental executive board member and head of the automotive group sector Philipp von Hirschheydt said: “Our continuous performance improvements form the crucial foundation for making Automotive fit for the future and ready for the capital market. We are rigorously implementing all the measures necessary to achieve this.”
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By GlobalDataThe company also highlighted its efforts to strengthen the independence of its Tires and ContiTech group sectors, while simultaneously preparing for the upcoming Automotive spin-off.
Continental CEO Nikolai Setzer said: “We have set up our group sectors as strong, self-sufficient units with clear structures. The group sectors are leading players in their product segments and markets. They have matured and are ready for greater independence,”
“We remain fully focused on spinning off Automotive and achieving greater independence for our profitable Tires and ContiTech group sectors.
“And central to this is the gradual transfer of parts of the group-level services and functions to the group sectors. The goal is to create a lean, focused holding structure by the end of 2025.
“Corporate responsibility will increasingly lie where it delivers the greatest value – in the group sectors, close to markets and customers.
“Our new structure will let us respond more flexibly to customer and market developments, enabling us to maximise our opportunities.”
