Continental evaluates division of the automotive sector into an independent company

Continental is considering spinning off the automotive sector into an independent company. The decision was taken after a strategic review carried out by the company's executive board. The objective is to make the most of the value and growth potential. The executive board will make a final decision on the spin-off in the fourth quarter of 2024. If approved, the proposal will be voted on at Continental AG's annual shareholder meeting on April 25, 2025. If the vote is favorable, the spin-off will be completed by the end of 2025.

Preparations for the split are already underway. As part of the restructuring, the profitable Tire and ContiTech sectors will remain under the Continental umbrella. This structure will also be evaluated in detail. The supervisory board of Continental AG was informed of the executive board's decision at its meeting today.

"Our strategy aims to increase value creation. This involves systematically analyzing how we can best position our sectors for success. Markets and customers, especially in the automotive industry, have evolved extremely dynamically in recent months. Looking ahead, regional developments Extremely volatile markets, as well as software-driven technological transformation, will require even more flexibility and business freedom. In this context, we intend to split Continental into two independent companies," said Continental CEO Nikolai Setzer in Hannover on Monday. .

"The demerger of the Automotive sector has the potential to create competitive opportunities, increase agility and improve transparency. As a strong, independent entity, Automotive could leverage its full value creation potential. Additionally, investors could invest in a company focused specifically on automotive electronics", said the chairman of the Continental Supervisory Board, Prof. Wolfgang Reitzle.

“We will keep the interests of all employees in mind when carrying out the detailed assessment – ​​they would also benefit from having two strong, independent companies,” Setzer added.

As with the spin-off of Vitesco Technologies in September 2021, Continental shareholders would receive shares in the independently listed automotive entity in proportion to their stake in Continental.

Automotive sector looking towards the future of autonomous and software-defined vehicles

Continental's automotive sector, which has already consolidated its activities into a single legal entity since 2022, would become a fully independent company as a result of the planned spin-off. The automotive sector generated sales of around €20,3 billion in the last fiscal year and currently employs around 100 people. The sector has a high level of technological and systems expertise, as well as vertical integration. Continental has established a strong market position for innovative braking and comfort systems, sensor and display solutions, and has also significantly advanced the development of software, architecture platforms and assistance systems for the growing future market of software-defined and autonomous vehicles .