Continental AG's supervisory board has approved the planned spin-off of the company's Automotive division.
Continental CEO Nikolai Setzer says that “as part of this realignment, we are strengthening the independence of all our group sectors: Automotive, Tires and ContiTech. This will enable them to be even more agile and closer to customers and markets so they can achieve their full growth and value potential.”
The spin-off is subject to Continental shareholder approval.
In December 2024, MTD reported that Continental AG’s executive board had 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 will 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," said Continental officials at the time.
Tire sales were a bright spot for Continental during 2024. The company’s Tires group achieved $14.6 billion in revenue for the full year, slightly less than a 1% difference from prior-year results.
Overall, Continental AG achieved $41.7 billion in sales during 2024, down around 4% on a year-over-year basis.
The Hanover, Germany-based firm generated an adjusted EBIT of $2.8 billion, a year-over-year increase of 6.1%.
