Automotive Components Group to be Separated | Continental AG

Citing “increasingly dynamic” automotive markets, Continental AG is considering spinning off its automotive parts business into a separate public company. The group will make a final decision on the plan before the end of this year, with the expected spin-off taking place before the end of 2025, pending board approval.

“Looking ahead, rapidly changing regional market trends as well as the transformation of software-driven technology will require even greater flexibility and entrepreneurial freedom. Against this backdrop, we intend to split Continental into two independent companies,” said Continental CEO Nikolai Setzer.

The company, headquartered in Hanover, Germany, which is famous for producing car tires, also produces brake systems, vehicle electronics, automotive security systems, drive system systems, AND chassis ingredients, tachographs, AND Other Parts delivered for automotive AND transport system production.

In its current configuration, the Automotive Group “has a high level of technological and systems expertise as well as vertical integration,” Continental said, “with strong market positions in innovative braking and comfort systems, sensor solutions and displays, and has also made great progress in developing software, architecture platforms and assistance systems for the rapidly growing future market for software-defined and autonomous vehicles.”

Group sales in fiscal year 2023 amounted to approximately 20.3 billion euros (approximately 22.2 billion dollars) and the number of employees was approximately 100,000.

“The spin-off of Automotive has the potential to create competitive opportunities, increase agility and enhance transparency. As a strong, independent entity, Automotive will be able to leverage its full value creation potential. In addition, investors will be able to invest in a company with a specific focus on automotive electronics,” said Continental Supervisory Board Chairman Prof. Wolfgang Reitzle.