Continental considers sale of ContiTech auto unit amid broader reorganization, report says

The company said in February it was reorganizing ContiTech from six divisions into one in each of Europe, the Americas and Asia Pacific, while bundling its car activities into a separate unit geared towards electromobility.

According to Manager Magazin, that unit — specialized in belts and sealing systems with revenue of more than 2 billion euros ($2.2 billion) — is due to be separated from the business within two years. It could be sold, split up further or merged with another company, the publication reported.

The highly profitable tires business and non-automotive part of ContiTech would be retained as the future core, it said, quoting an unnamed top manager who warned of the threat of a workforce rift if the tires business continued financing the cars business.

Continental declined to comment on the report.

The company said in May that ContiTech would be realigned with the aim of enhancing its impact and efficiency, without providing further details.

Continental ranks No. 9 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $25.4 billion in 2022.

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