Back to the tires: Continental Plans to Make ContiTech Independent

Independence for ContiTech Back to the Tires: Continental Plans to Make ContiTech Independent

2025-04-14 From Susanne Braun | Translated by AI 2 min Reading Time

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Continental intends to focus globally on the tire business in the future and therefore announces the independence of the material specialist ContiTech and aims to sell it. Continental is thus putting its three business sectors on independent footing.

Continental intends to put ContiTech on its own feet.(Image: Continental) — Continental intends to put ContiTech on its own feet.
(Image: Continental)

The technology company Continental originally focused on the development and production of tires, but has since become much more diversified. However, in light of the current crisis in the automotive sector, the company is trying to refocus on its roots. This was already indicated in August 2024 by the announcement that the automotive division of Continental would be floated as an independent public company.

Going forward, in April 2025, with the independence of the ContiTech division, which specializes in rubber and plastic technology and primarily develops and delivers technical solutions outside of the traditional automotive business. This includes items such as conveyor belts, seals, surface materials, and hoses that are mainly used in industry. Nikolai Setzer, CEO and Chairman of the Executive Board of Continental, commented: "We are creating three strong, independent champions that will fully realize their growth and value creation potential as standalone companies."

So far, it is not yet clear which transaction form is ideal for achieving independence; this will be evaluated in the preparatory phase now starting. According to Continental, the most likely option will be the sale of ContiTech, which is to be implemented after the spin-off of the automotive division and the sale of Original Equipment Solutions (OESL). ContiTech's independence is expected in 2026, provided the necessary resolutions are obtained.

Three Companies for a Hallelujah

The reorganization of Continental, which was initiated last year, aims to establish the three business areas Tires, ContiTech, and Automotive as independent companies. As a result, "Continental AG would thus become a focused global tire company, into which the currently overarching holding functions will be transferred in a final step," the company states.

The Automotive division focuses on mobility solutions, such as displays, sensors, brake and comfort systems. Additionally, the division is poised for the automotive future with expertise in software, architecture platforms, and assistance systems, particularly regarding software-defined and autonomous vehicles. It currently employs 92,000 people worldwide and achieved sales of nearly 22 billion dollars in the 2024 financial year. The previously announced stock market listing of Automotive is currently targeted for September 2025 at the Frankfurt Stock Exchange.

Tires includes Conti's global tire business and smart solutions and services for fleets and tire trading. Approximately 57,000 employees work in Tires. The division achieved a turnover of nearly 15 billion dollars in the fiscal year.

ContiTech's material solutions are used in off-highway mobility, mining, construction and home, energy management, and automotive. Approximately 39,000 employees generated sales of 6.9 billion dollars in the 2024 financial year. "As previously announced, the majority of its business with rubber products for automotive manufacturers, bundled in the Original Equipment Solutions (OESL) business unit, will be spun off shortly. The business field with around 16,000 employees in 16 countries is currently being presented to potential buyers and partners," according to Continental. (sb)

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Date: 08.12.2025

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