Skip to content

Continental weighs the future of its automotive division

Changes in the global industry are making Continental consider whether spinning-off its automotive business will improve profitability. By Will Girling

On 5 August 2024, Continental’s Executive Board announced that it would consider spinning off its automotive division into a separate company. The following day, Continental took what could be an initial step in that direction by suspending a previous carve-out plan for its User Experience for Vehicle Display Solutions segment, which had been announced in December 2023.

Automotive World Magazine – September 2024

Continental’s automotive segment employed 100,000 people and generated €23bn (US$25bn) in sales during fiscal year 2023. This makes it the company’s most profitable individual business area—the second, tyres, generated €14bn. Nonetheless, the transition from mechanical to electric vehicles (EVs) has clearly had a destabilising effect on Continental’s core business. In November 2023, the company announced the necessity of four-figure layoffs from automotive to stay in the black through to 2025.

Subscribe to Automotive World to continue reading

Sign up now and gain unlimited access to our news, analysis, data, and research

Subscribe

Already a member?

https://www.automotiveworld.com/articles/continental-weighs-the-future-of-its-automotive-division/

Welcome back , to continue browsing the site, please click here