Continental AG is planning a major shift in strategy, announcing this week that it will explore a separation of its ContiTech division—likely culminating in a sale—as part of its ongoing restructuring efforts.
ContiTech, which produces industrial products such as hoses, conveyor belts, and vehicle interior materials, is expected to become independent following the separation of Continental’s automotive business later this year.
Continental confirmed that, “as things stand, [it] considers a sale of ContiTech to be the most likely option.”
The German automotive supplier is already in the process of spinning off its automotive unit, aiming to list it on the Frankfurt stock exchange before the end of 2025. The two-stage restructure is designed to streamline the company’s operations and allow each business to respond more flexibly to its specific market.
The strategy includes a sharper focus for ContiTech on industrial customers, with Continental simultaneously working to sell its Original Equipment Solutions business—currently supplying rubber products to automotive OEMs. This move is intended to pivot the unit away from automotive supply and toward broader industrial applications.
Following the planned separations, Continental’s operations will focus exclusively on tyre manufacturing.
“We are creating three strong, independent champions that will achieve their full growth and value creation potential as independent companies,” said Chief Executive Nikolai Setzer.
The announcement comes against a backdrop of ongoing uncertainty in the global automotive sector. Sluggish economic growth, a slow-moving EV transition, and geopolitical pressures—such as proposed U.S. tariffs on automotive imports and parts—have impacted forecasts and long-term planning.
Continental has already taken cost-saving measures across its ContiTech business. This includes the closure of three production facilities and a halt to toolmaking at two locations in Germany, citing reduced demand from the automotive and mining sectors. Around 580 jobs are expected to be affected across its German ContiTech operations this year.
Light-vehicle production volumes are also forecast to decline by a mid-single-digit percentage in the first quarter, according to the company.
The sale or separation of ContiTech will follow the automotive spinoff and the sale of its rubber OE supply business, with the transition likely to be completed in 2026.
As part of this organisational shift, changes are also being made to the company’s executive board. Ariane Reinhart, currently responsible for HR and sustainability, will step down on 30 June. She will be succeeded by Ulrike Hintze, who will take over HR and labour relations responsibilities.
What is Continental’s ContiTech business?
ContiTech is a division of Continental AG that manufactures industrial rubber products including hoses, conveyor belts, and vehicle interior materials. The unit also supplies components to both the automotive and industrial sectors.
Why is Continental selling ContiTech?
Continental is restructuring to focus solely on tyre manufacturing. Selling ContiTech supports its goal of separating its core operations into three standalone companies with greater flexibility and market focus.
How will this affect Continental’s tyre business?
By exiting ContiTech and spinning off its automotive division, Continental will streamline its operations to concentrate entirely on its global tyre manufacturing business.
When will ContiTech become an independent company?
Continental has stated that ContiTech will likely become independent after the automotive spinoff is completed. The separation process is expected to be finalised sometime in 2026.
What other changes is Continental making alongside the ContiTech sale?
Continental is also divesting its Original Equipment Solutions business to reduce its exposure to the automotive supply chain and increase ContiTech’s focus on industrial rubber customers. In addition, the company is closing several ContiTech factories in Germany due to reduced demand in the automotive and mining sectors.
What challenges is Continental facing in the automotive sector?
Continental is dealing with a decline in global light-vehicle production, economic uncertainty, and increased pressure from proposed U.S. tariffs on automotive parts and imports. These factors have accelerated the company’s decision to reshape its business structure.
What is the future focus of Continental after the ContiTech separation?
Once ContiTech and the automotive division are separated, Continental will focus entirely on its core strength—tyre development and manufacturing for passenger, commercial, and industrial vehicles.
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