Continental Executive Board Evaluates Spin-Off of Automotive Group

Continental Executive Board Evaluates Spin-Off of Automotive Group

(IN BRIEF) Continental is evaluating a spin-off of its Automotive group sector to create two independent companies, aiming to unlock greater value and growth potential. A decision is expected in late 2024, with the spin-off planned for completion by the end of 2025. The Automotive sector will focus on software-defined and autonomous vehicles, while Tires and ContiTech will continue under Continental’s umbrella.

(PRESS RELEASE) HANOVER, 6-Aug-2024 — /EuropaWire/ — The Continental Executive Board has announced plans to conduct a detailed evaluation of spinning off its Automotive group sector into a separate, publicly listed company. This strategic move aims to fully harness Continental’s value and growth potential by creating two independent entities. A final decision on the spin-off is expected in the fourth quarter of 2024, with preparations already underway.

If approved by the Executive Board and Supervisory Board, the spin-off will be presented for a vote at the Annual Shareholders’ Meeting on April 25, 2025, with the goal of completing the process by the end of 2025. The profitable Tires and ContiTech group sectors will remain under Continental’s umbrella.

Continental CEO Nikolai Setzer explained, “Our strategy aims to increase our value creation by positioning our group sectors for success. The dynamic changes in the automotive industry, including regional market fluctuations and the software-driven technology transformation, demand greater flexibility and entrepreneurial freedom. Dividing Continental into two independent companies is a step towards achieving this goal.”

Prof. Dr.-Ing. Wolfgang Reitzle, Chairman of the Supervisory Board, added, “A spin-off of Automotive can create competitive opportunities, enhance agility, and increase transparency. As a strong, independent entity, Automotive would harness its full potential for creating value. Investors would benefit from investing in a company focused specifically on automotive electronics.”

The interests of employees will be a priority during the evaluation, ensuring that they benefit from the creation of two robust, independent companies. Following a similar approach to the 2021 spin-off of Vitesco Technologies, Continental shareholders would receive shares in the new Automotive entity proportional to their current holdings.

Automotive Group’s Future in Software-Defined and Autonomous Vehicles

The Automotive group sector, already consolidated into a single legal entity since 2022, will become fully independent through the planned spin-off. In the last fiscal year, Automotive generated approximately €20.3 billion in sales and employs around 100,000 people. It holds a strong market position in innovative brake and comfort systems, sensor solutions, and displays, and has advanced in developing software, architecture platforms, and assistance systems for the burgeoning market of software-defined and autonomous vehicles.

Tires and ContiTech: Global Leaders in Tires and Material Solutions

The Tires and ContiTech sectors, employing around 100,000 people, generated combined sales of approximately €20.8 billion last year (Tires: €14.0 billion; ContiTech: €6.8 billion). These sectors are known for their global success in tire manufacturing and innovative material solutions with an industrial focus. Their regional diversification and varied distribution channels provide resilience against economic volatility.

For more details on the spin-off plans and updates, please visit Continental’s official website.

Media Contacts:

Vincent Charles
Head of Media Relations
vincent.charles@conti.de
@_VCharle

Marc Siedler
Spokesperson, Business & Finance
+49 511 938-1278
marc.siedler@conti.de
@SiedlerMarc

SOURCE: Continental AG