Auto Manufacturer Continental Intends to Separate Industrial Division: Planned Spin-off for Competitive Auto Supplier Continental - Resuming focus on tyres: Continental to offload industrial branch from operations
Spinning Off ContiTech: A New Era for Continental
Here's the scoop on Continental's game-changing decision - they're looking to spin off their ContiTech division, and it's set to drop in 2026. About 39,000 folks work in this bad boy, racking up sales of roughly 6.4 billion euros last year. The ContiTech division, under which various industrial sectors such as mining, construction, and home, including the tire business for auto manufacturers, operate. This business segment is being shopped around to potential buyers and partners.
Meanwhile, the board and supervisory board have already tubthumped the decision to spin off the Automotive division, with 92,000 employees and sales of 19.4 billion euros. The Annual General Meeting is yet to give the thumbs-up on April 25. This division is set to join the stock exchange market. Even the employee representatives in the supervisory board have given the plan a nod, but it hasn't all been smooth sailing.
Frankie Grioli, a member of the IG BCE mining, chemical, and energy union, and the Conti supervisory board, ain't too pleased with this planned split of ContiTech. He calls it "socially irresponsible, economically reckless, and technologically nonsensical." These two sectors, which have been the literal heart of the company for decades, are set to be split apart at the beginning of the production chain, according to Grioli. "The capital side is driving the long-standing trend of dismemberment to its peak," he grumbles. The union plans to "fight tooth and nail."
Grioli is advocating for "long-term employment and location security." He assures there won't be any dismissals due to operational reasons until the end of 2026. IG Metall stands "unshakably by the side of our buddies over at ContiTech." They warn, "We ain't about to get left behind."
As for the Tires division, it's sticking around. This division churns out tires for passenger cars, trucks, buses, two-wheelers, and special tires, employing over 57,000 folks and scoring sales of around 13.9 billion euros last year. The company sees enormous potential for profitable growth in this division due to the megatrends of sustainability, electromobility, and digitalization.
Sources: ilo/oer, 1, 2, 3, 4
Keywords: Continental, Electronics, Brake, Tire, IG Metall, Metal
- Despite the planned spin-off of its ContiTech division, which includes the tire business for motor vehicle manufacturers, Continental assures no dismissals will occur due to operational reasons until the end of 2026.
- IG Metall, the union representing employees at ContiTech, stands unwaveringly with their colleagues, vowing to fight against any moves that may leave them behind.
- The Tire division of Continental produces tires for various vehicles, including passenger cars, trucks, buses, motorcycles, and special tires. This division employed over 57,000 individuals and generated sales of approximately 13.9 billion euros in the previous year, with potential for profitable growth due to the trends of sustainability, electromobility, and digitalization.
