- Continental’s Supervisory Board approves one of the largest organizational changes in the company’s history
- New holding structure: Three group sectors under the umbrella of Continental AG
- Transformation of the Powertrain division into an independent legal entity by the start of 2019 with partial IPO possible starting mid-2019
- CEO Dr. Elmar Degenhart: "With the Supervisory Board’s approval of the realignment, we are heading into the future of mobility at full speed"
Hanover, July 26, 2018. At its meeting today, the Supervisory Board of Continental AG, Hanover, approved one of the largest organizational changes in the company’s history. The Executive Board had decided on the change on July 18, 2018. With this approval, a new holding structure of Continental AG will be created under the new “Continental Group” umbrella brand. In this context, the Supervisory Board approved the transformation of the current Powertrain division into an independent legal entity under a new name by the beginning of 2019. Andreas Wolf will take over as head of the new company starting at the beginning of 2019. A partial initial public offering (IPO) is expected starting mid-2019.
“The Supervisory Board supports Continental’s rapid and profitable growth. The early and foresighted realignment of the organization opens up new possibilities and adds value for the company. It makes Continental even more competitive permanently. That is why the Supervisory Board has unanimously agreed to one of the largest organizational changes in the history of the company,” said Supervisory Board chairman Professor Wolfgang Reitzle, following the Supervisory Board meeting on Thursday in Hanover.
Dr. Elmar Degenhart, Continental CEO, was pleased with the decision of the Supervisory Board: “In light of the profound transformation in the automotive industry, we scrutinized various scenarios for a realignment in the past months. We do, after all, want to continue to grow faster than our relevant markets. Furthermore, we see new potential for expansion in the key future areas of mobility, and we are going to take full advantage of it. On behalf of the entire Executive Board, I would like to express my thanks to all Supervisory Board members for their trust. With their approval of the realignment, we are creating additional value for our customers and are heading into the future of mobility at full speed.”
With its approval, the Supervisory Board has paved the way for the creation of a new holding structure of Continental AG under the new “Continental Group” umbrella brand. It will be supported by three “group sectors,” namely “Continental Rubber,” “Continental Automotive” and “Powertrain.” The reporting structure and the new names are to be used starting 2020. The group sectors will be established step by step, or enhanced where necessary. The current Powertrain division will be transformed into an independent legal entity under a new name by the beginning of 2019. Its partial initial public offering (IPO) is expected starting mid-2019.
Furthermore, the current Chassis & Safety and Interior divisions will be reorganized by the beginning of 2020. They will become two business areas newly named “Autonomous Driving Technologies” and “Vehicle Networking Technologies,” with their business results being reported under the new “Continental Automotive” group sector. Both areas will be supported by a newly created central Automotive Research and Development function.
The two current divisions Tires (“Tire Technologies” in the future) and ContiTech will retain their independent organizational structure. Their business results will be reported in the future Continental Rubber group sector. Continental will retain ownership of this business, which is the nucleus and origin of the 147-year-old Hanover-based company. The issuance of non-controlling interests, in the form of an IPO for example, is not planned at present, but is an option for the future. Several years ago, Continental already undertook preparations, making it possible to create a new legal entity out of this business. No further steps need be taken for this at present.