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Continental in ‘Early Stages’ of Analyzing Organizational Structure

Continental is in the early stages of talks about a structural overhaul, the company confirmed to Tire Review.

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Continental is in the early stages of talks about a structural overhaul, the company confirmed to Tire Review.

“We confirm media reports that we are in the early stages of analyzing how our organization can become even more flexible in response to the fast-changing environment in the automotive industry,” said  Dr. Felix Gress, head of corporate communications and public affairs in a statement.”In this process, we are being supported by external advisors. As of today, it is wide open if and which changes could result from these early evaluations. To date, there are no plans which could be submitted for approval.”

Multiple news outlets reported the German auto parts and tiremaker is looking to announce a restructure in the next six months or a possible breakup of the auto parts supplier.

Reuters reported Conti’s aim is to “become more nimble amid the car industry’s transition to electric and self-driving vehicles.

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Although no decisions have been made, CFO Wolfgang Schaefer said in a telephone interview with Bloomberg News that the firm may provide an update within six months.

Bloomberg reports that under scenarios being considered, their sources said Continental “could create a holding company for its divisions and then sell shares in the more profitable units, such as the tire business, or combine some operations with rivals, said the people, who asked not to be identified because the matter is private. The shares ended 5.4 percent higher at a record 251.30 euros.”

 

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