Hanover, Germany – Continental AG has acknowledged that rubber is part of its DNA: planning to retain full ownership of its Tire and ContiTech operations within a restructured group, though signalling that the position of the current Rubber Group units could change further down the road.
Under a major realignment (ERJ report) announced by the executive board on 18 July, Continental Tire and ContiTech “will retain their independent organisational structure” within the Hanover-based group.
From 2020, a new ‘Continental Group’ reporting structure will comprise three business sectors – ‘Continental Rubber’, ‘Continental Automotive’ and an independent ‘Powertrain’ division.
Under the group-wide plan, which still requires supervisory-board approval, both the Tire unit – to be renamed ‘Tire Technologies’ – and ContiTech will report business results in the future Continental Rubber group sector.
Describing its rubber business as “the nucleus and origin of the 147-year-old Hanover-based company,” the executive board said both units “will continue to be owned by Continental.”
However, the management went on to say that issuance of non-controlling interests, in the form of an IPO for example, was an option for the future.
The statement further noted that some years ago Conti had taken steps “making it possible to create a new legal entity out of this business. No further steps need be taken for this at present.”