Continental’s Automotive Group recently took steps towards its planned independence, which could be completed by the end of 2025, according to a press Continental press release. 

The company’s Executive Board decided to spin off the Automotive Group following a strategic review, the release says. The Automotive Group’s independence would result in its own listing on the stock market. 

A board decision is expected to be made in the fourth quarter of 2024, according to the release. The decision also would be subject to the Supervisory Board and the 2025 Annual Shareholders’ Meeting. 

The Automotive Group sector employs about 100,000 people and generates about 20.3 million euros, the release says. 

“The group sector has a high level of technological and system expertise as well as vertical integration,” according to the release. “It has carved out a strong market position for innovative brake and comfort systems, sensor solutions and displays, and has also made great strides in developing software, architecture platforms and assistance systems for the rapidly growing future market of software-defined and autonomous vehicles.”

The carve-out of the User Experience business area announced in December 2023 will be suspended for the foreseeable future, the release says. Its business area will remain a part of Automotive, it says. 

U.S. Motor Works reports that the “profitable” Tires and ContiTech group sector will remain under the umbrella of Continental. 

The automotive group sector was consolidated into a single legal entity in 2022, the article says. The consolidation didn’t give the sector independence. 

“Our strategy aims to increase our value creation,” U.S. Motor Works reports Continental CEO Nikolai Setzer said on Monday. “This involves systematically analyzing how we can best position our group sectors for success. Markets and customers, especially in the automotive industry, have evolved extremely dynamically in recent months. Looking ahead, sharply fluctuating regional developments in the markets as well as the software-driven technology transformation will require even greater flexibility and entrepreneurial freedom. Against this backdrop, we are aiming to divide Continental into two independent companies.”

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Photo courtesy courtesy of Continental.