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Continental to transform Powertrain division into independent legal entity

ABR Staff Writer Published 19 July 2018

Germany-based automotive parts suppliers Continental is restructuring its organisation, which will see a spinoff of its powertrain business.

The restructuring will reduce its corporate structure to three divisions.

The powertrain business will be incorporated as a separate entity, starting next year. The other two will include the automotive and the rubber companies.

Continental CEO Elmar Degenhart said: “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.”

The Chassis & Safety and Interior divisions will become two businesses namely Autonomous Driving Technologies and Vehicle Networking Technologies and will become part of Continental Automotive.

The two divisions will be supported by a newly created central Automotive Research and Development function.

With this reorganisation, Continental is pursuing the goal of gearing its business with new technologies to continue towards profitable growth, while exploiting future growth opportunities. The new automotive business expects to increase its sales from €19bn in 2017 to approximately €30bn in 2023.

Continental aims that this integration will help in maximizing R&D productivity and achieve smooth, speedy product launch, which is crucial for the divisions relevant under the automotive group.

The Powertrain division will be converted into an independent company with a new name next year. This business unit will be in charge of all future businesses involving hybrid and electric drive systems and all the battery activities including the joint venture for 48-volt battery systems recently announced, besides the combustion engine business.

Continental Rubber Group will include two businesses Tire Technologies and ContiTech divisions. These two businesses will continue in the development of technology based rubber and plastic products. This is the nucleus and the origin of the company and will be continued to be owned by Continental.

Image: Continental Executive Board Chairman Elmar Degenhart. Photo: Courtesy of Continental AG.