Continental AG’s executive board has approved a plan to spin off the company’s Automotive business by the end of 2025.
Preparations for the spin-off, which would make Continental’s Automotive group a fully independent company, are scheduled to be completed by the end of third quarter 2025, according to Continental officials.
The Automotive unit would become a fully independent company as a result of the planned spin-off.
In the meantime, Continental will continue “to strengthen the independence of its Tires and ContiTech group sectors.”
“We have set up our group sectors as strong, self-sufficient units with clear structures,” says Continental CEO Nikolai Setzer. “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,” he continues. “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 maximize our opportunities.”
Continental’s Tires business unit performed particularly well during the third quarter of 2024, posting $3.6 billion in sales. That represented a 1.9% increase from the same period in 2023. Adjusted EBIT margin for the company’s tire business was up 13.3% versus the third quarter of 2023.
