Hanover, Germany – Continental AG’s supervisory board has unanimously agreed with the company’s major reorganisation plan, which entails forming three group sectors under the umbrella of a new “Continental Group”.
The board also agreed with the transformation of Conti’s Powertrain division into an independent legal entity with a new name by the start of 2019.
In a 26 July statement, Conti said that Andreas Wolf will take over as head of the new powertrain company, with a partial initial public offering (IPO) is expected by mid-2019.
Earlier this month, Conti unveiled its major realignment plans, which will see the group divided to three business sectors – ‘Continental Rubber’, ‘Continental Automotive’ and an independent ‘Powertrain’ division – by 2020.
Under the group-wide plan both the Tire unit – to be renamed ‘Tire Technologies’ – and ContiTech will report business results in the future Continental Rubber group sector.
Continental has confirmed that it would retain ownership of the rubber business as the “nucleus and origin of the 147-year-old Hanover-based company”.
According to Conti, the issuance of non-controlling interests, in the form of an IPO for example, is not planned at present, but is an option for the future.