The Executive Board of the technology company Continental has just decided today to undertake one of the largest organizational realignments in the company’s history. In doing so, the Dax-listed company will continue to grow faster than its relevant markets and take full advantage of new potential for expansion in the key future areas of mobility.
The decision involves the creation of a holding structure of Continental AG under the new “Continental Group” umbrella brand. This holding structure will be supported by three strong business sectors – “Continental Rubber”, “Continental Automotive” and “Powertrain.” The reporting structure and the new names are to be used starting in 2020. These business sectors will be established step by step or, where necessary, enhanced. This change needs to be approved by Continental AG’s Supervisory Board, as well as for the transformation of the Powertrain division into an independent legal entity with a new company name and management 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 in 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.
“This is indeed a historic day for Continental. We are heading into the future of mobility at full speed. Our proven readiness and capacity to change give us an outstanding competitive edge which we want to use to the fullest. Our realignment will make us exceptionally flexible and agile. In Continental’s successful values alliance for top value creation, we are growing to meet upcoming challenges, remaining competitive now and in the future. This continues to require pioneering and innovative excellence. With this alliance, we are opening up new, promising perspectives for our customers, employees, investors and all other stakeholders,” said Dr. Elmar Degenhart, Continental CEO, on Wednesday in Hanover.
“In the next decade and after, the global automotive industry will undergo the largest and most profound transformation in its over 130-year history. We are looking ahead and taking on this transformation at an early stage. Strong and confident, we are doing our part to shape and guide this transformation,” he added, pointing out that months of intensive preparation were required in order to come to this far-reaching decision.
