Conti considers sale of ContiTech division

Sale of ContiTech possible as it is reorganised as part of a wider Continental restructuring due to poor profitability

Luke Martin August 22 2023

Continental is reportedly considering the sale of its recently established ContiTech auto division, specialising in belts and sealing systems, as part of a broader company-wide reorganisation. 

According to Reuters, the company has undertaken a series of moves to enhance profitability due to a significant drop in market capitalisation from EUR50bn to EUR13bn since 2018.

It announced a restructuring plan earlier this year which would involve consolidating ContiTech into three regional divisions (Europe, the Americas and Asia Pacific) as well as creating a separate unit focused on electromobility. 

Manager magazin said the tyre business and non-automotive section of ContiTech would remain core components.

The magazine also quoted an unnamed manager who warned of the potential for a rift in the workforce if the car business was continually funded by the tyres sector.

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