Continental considers sell-off of ContiTech car business

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<span>© Reuters. FILE PHOTO: The name of German tire maker Continental is pictured on a wheel at the IAA truck show in Hanover, September 22, 2016. REUTERS/Fabian Bimmer/File Photo</span><br />
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<p>BERLIN (Reuters) -German auto parts supplier Continental is considering the sale of the car division currently bundled within ContiTech, manager magazin reported on Monday, citing company sources. </p>
<p>The possible sale would be part of a wider reorganisation of the company being planned by Supervisory Board Chairman Wolfgang Reitzle and the executive board around CEO Nikolai Setzer, the publication added, citing the sources.</p>
<p>Continental has taken a series of steps in recent years to restructure and boost profitability as its market capitalisation tumbled to 13 billion euros ($14.17 billion) from 50 billion in 2018.</p>
<p>The company said in February it was reorganising ContiTech from six divisions into one in each of Europe, the Americas and Asia Pacific, while bundling its car activities into a separate unit geared towards electromobility.</p>
<p>According to manager magazin, that unit – specialised in belts and sealing systems with a turnover of more than 2 billion euros – is due to be separated from the business within two years. It could be sold, split up further or merged with another company, the publication reported.</p>
<p>The highly profitable tyres business and non-automotive part of ContiTech will be retained as the future core, it said, quoting an unnamed top manager who warned of the threat of a workforce rift if the tyres business continued financing the cars business.</p>
<p>Continental declined to comment on the report.</p>
<p>The company said in May that ContiTech would be realigned with the aim of enhancing its impact and efficiency, without providing further details.</p>
<p>($1 = 0.9175 euros)</p>
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