Continental considers sell-off of ContiTech automobile trade – supervisor magazin

BERLIN, Aug 21 (Reuters) – German auto portions provider Continental (CONG.DE) is thinking about the sale of the automobile department lately bundled inside ContiTech, supervisor magazin reported on Monday, mentioning corporate resources.

The imaginable sale can be a part of a much broader reorganisation of the corporate being deliberate by means of Supervisory Board Chairman Wolfgang Reitzle and the manager board round CEO Nikolai Setzer, the newsletter added, mentioning the resources.

Continental has taken a chain of steps in recent times to restructure and spice up profitability as its marketplace capitalisation tumbled to 13 billion euros ($14.17 billion) from 50 billion in 2018.

The corporate stated in February it was once reorganising ContiTech from six divisions into one in each and every of Europe, the Americas and Asia Pacific, whilst bundling its automobile actions right into a separate unit geared in opposition to electromobility.

Consistent with supervisor magazin, that unit – specialized in belts and sealing programs with a turnover of greater than 2 billion euros – is because of be separated from the trade inside two years. It may well be offered, cut up up additional or merged with every other corporate, the newsletter reported.

The extremely successful tyres trade and non-automotive a part of ContiTech might be retained as the long run core, it stated, quoting an unnamed most sensible supervisor who warned of the specter of a body of workers rift if the tyres trade persevered financing the automobiles trade.

Continental declined to remark at the document.

The corporate stated in Would possibly that ContiTech can be realigned with the purpose of improving its have an effect on and potency, with out offering additional main points.

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