Continental AG's supervisory board approved the reorganization of the German automotive supplier and tire manufacturer, allowing for the creation of a new holding structure and transformation of the Powertrain division into an independent legal entity.
Initially approved by the executive board July 18, the reorganization will result in a new holding structure with three group sectors — Continental Rubber, Continental Automotive and Powertrain — under the Continental Group umbrella brand. The new structure and names will be used from 2020.
The company's powertrain division will be converted into an independent legal entity under a new name by the start of 2019, with the division's partial IPO expected to start in mid-2019. Andreas Wolf will take over as head of the new company at the beginning of the year.
The Chassis & Safety and Interior divisions will be reorganized into two business areas, namely Autonomous Driving Technologies and Vehicle Networking Technologies, that will be supported by a new central Automotive Research and Development function.
Continental said it would retain ownership of the future Continental Rubber business and does not plan an issuance of noncontrolling interests in the form of an IPO at present, but could consider it in the future.