Sign up for our weekly email to stay on top of the latest news and insights!
The Continental Executive Board has announced plans to spin off its Automotive group sector by the end of 2025, subject to Supervisory Board and shareholder approval. The spin-off is part of a strategic move to streamline operations and grant greater independence to the company’s Tires and ContiTech group sectors.
Key Highlights:
- Spin-off Timeline: Preparations for the spin-off will be finalized by the end of the third quarter of 2025, with the spin-off anticipated by year-end.
- Approval Process: The Supervisory Board will review the proposal in March 2025, and it will be presented to shareholders at the Annual Meeting on April 25, 2025.
- Focused Holding Structure: Parts of the group-level services and functions will transition to group sectors to create a leaner structure.
The decision follows an in-depth evaluation initiated in August 2024. Continental CEO Nikolai Setzer emphasized the strategic importance of this move, stating, “We remain fully focused on spinning off Automotive and achieving greater independence for our profitable Tires and ContiTech group sectors.”
Philipp von Hirschheydt, Continental Executive Board member and head of the Automotive group sector, highlighted the significance of performance improvements. “Our continuous performance improvements form the crucial foundation for making Automotive fit for the future and ready for the capital market. We are rigorously implementing all the measures necessary to achieve this,” he stated.
As part of the restructuring, Continental is strengthening the independence of its Tires and ContiTech sectors. According to Setzer, the group sectors have been established as strong, self-sufficient units with clear structures. He noted, “The group sectors are leading players in their product segments and markets. They have matured and are ready for greater independence.”
Setzer further elaborated on the company’s long-term goals, stating, “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 move to spin off its Automotive sector aligns with its vision of creating a more focused and agile organization that can adapt to market demands while enhancing value for stakeholders.
Subscribe Today!
Sign up for our weekly eNewsletter and get a free copy of our quarterly digital magazine.
