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Continental AG has unveiled plans to spin off its Automotive group sector into an independent entity by the end of 2025. The move is subject to Supervisory Board approval in March 2025 and a resolution at the Annual Shareholders’ Meeting in April 2025. The newly independent company, set to be listed on the Frankfurt stock exchange as a European company (Societas Europaea, SE), will operate under a new brand and be led by Philipp von Hirschheydt.
Key Highlights
- Planned spin-off of Automotive group: The spin-off will establish Automotive as an independent entity listed on the Frankfurt stock exchange by the end of 2025.
- New leadership: Philipp von Hirschheydt, who has been leading the group sector since May 2023, will helm the independent company.
- Launch of a new brand: The new brand identity is expected to be unveiled by April 2025.
- Capital Market Day for Automotive: Scheduled for summer 2025, this event will outline the short- and mid-term goals for the independent company.
- ContiTech restructuring: Continental is preparing to sell its Original Equipment Solutions (OESL) unit, with the sale process set to begin in the first quarter of 2025.
Details of the Automotive Spin-Off
The proposed spin-off represents a strategic milestone for Continental AG, aimed at enhancing agility and focus during a time of transformation in the automotive industry. Wolfgang Reitzle, chairman of Continental’s Supervisory Board, commented: “The Automotive spin-off will unlock new strengths, because focused companies are more agile, especially in times of transformation. The entire Supervisory Board supports this ambitious plan.”
Plans for ContiTech’s OESL Unit
In line with its restructuring efforts, Continental is refining its focus on industrial customers within the ContiTech sector. This shift involves making the OESL unit—responsible for supplying rubber products to automotive manufacturers—independent. Employing over 16,000 people across 16 countries, the OESL business is currently being introduced to potential buyers and partners.
The sale process for OESL is expected to commence in early 2025, further aligning Continental’s strategy to concentrate on its core industrial operations.
Continental’s forward-looking initiatives highlight its commitment to innovation and adaptability in the face of evolving market dynamics. The planned spin-off and restructuring efforts mark a significant chapter in the company’s ongoing transformation.
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