Conti agrees automotive spin-off, eyes ‘greater independence’ for Tires, ContiTech

Hanover, Germany – Continental AG’s executive board has decided to spin off its ‘automotive group sector’ following a detailed evaluation launched in early August.

Subject to approval by the supervisory board in March 2025, the spin-off is expected to take place by the end of 2025, Continental announced 9 Dec.

The Hanover-based group aims to complete preparations for the carveout by the end of the third quarter of next year.

While progressing the automotive spin-off, Continental CEO Nikolai Setzer said the group “continues to strengthen the independence of its Tires and ContiTech group sectors.”

“We have set up our group sectors as strong, self-sufficient units with clear structures, the CEO continued. "They have matured and are ready for greater independence.”

Continental, stated Setzer, remains “fully focused on spinning off automotive and achieving greater independence for our profitable Tires and ContiTech group sectors.”

Central to the independence, the Continental CEO said, is "the gradual transfer" of parts of the group-level services and functions to the group sectors.

The overall goal, according to the German group, is to create “a lean, focused holding structure by the end of 2025.”

“Corporate responsibility will increasingly lie where it delivers the greatest value – in the group sectors, close to markets and customers,” explained Setzer.

Continental’s new structure, he added, will let us respond “more flexibly to customer and market developments, enabling us to maximise our opportunities.”

Continental reported overal sales of €41.4 billion and earnings of €4 billion in 2023. The automotive sector contributed to half of the sales while the segment's earnings stood at €982 million.

Tires generated sales of just under €14 billion with earnings of €2.6 billion, while ContiTech reported sales of €6.8 billion and earnings of €693 million.