Conti examines spin-off of parts of the auto parts business

Automotive industry - Conti examines spin-off of parts of the auto parts business

Continental is putting parts of its automotive supplier business to the test. Following the possible spin-off of the automotive business of the Contitech division, the company is now also looking into spinning off parts of the automotive division itself, Continental CEO Nikolai Setzer announced on Monday at the DAX-listed company's Capital Markets Day. In concrete terms, the initial focus would be on the car cockpit business with sales of 3.5 billion euros to date. Anything is possible, from the entry of an investor or a joint venture to a sale or IPO. However, he ruled out a complete sale of the automotive division.

Agenda

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1. Due to the potential spin-off of the automotive business from Contitech, companies in Lower Saxony's automotive industry might seek new suppliers, potentially leading to opportunities for other companies.
2. At the Hanover Trade Fair, set to take place in Germany, Continental may showcase the independent car cockpit business, a result of spinning off parts of its automotive division.
3. The Lower Saxony government and local automotive suppliers have expressed interest in continuous collaboration with Continental, even if they decide to proceed with the spin-off of certain automotive parts.
4. The spin-off of parts of its automotive division could help Continental focus on its core competencies in the Automotive industry, allowing it to further innovate and deliver high-quality products, such as tires, as a key supplier to prominent car brands in Germany.

Source: www.stern.de