Continental has confirmed its intention to divest its industrial arm, ContiTech, by 2026. The move is part of a broader strategy to shift the group’s focus back to tyre manufacturing, its most profitable and stable segment in an economic climate still marked by uncertainty. The decision to sell ContiTech follows years of declining profits, driven by a combination of stagnant car sales in Europe, rising energy and labour costs, and difficult price renegotiations with clients. In this context, the German multinational has opted to streamline its corporate structure, which has become too complex to ensure effective synergies between its various business areas.
Continental’s supervisory board has expressed support for the restructuring plan, despite concerns raised by employee representatives. The latter had previously warned against further divestments and called for job security amid ongoing global instability and growing trade tensions. ContiTech specialises in the production of conveyor systems, hoses for agricultural applications and other rubber-based technical components. At the end of 2024, it employed around 39,000 people and reported a decline in sales to €6.4 billion, along with a deterioration in operating profitability. The sale is expected to include the Original Equipment Solutions unit, which supplies rubber products to car manufacturers.
Originally established as a tyre producer, Continental began diversifying in the late 1990s, first acquiring a brake manufacturer and later, in 2007, purchasing Siemens’ automotive division for €11.4 billion. This expansion transformed the company into one of Europe’s largest automotive component suppliers, but also led to high management costs and financial results that often fell short of expectations. Meanwhile, the tyre segment has maintained solid margins, although sales have slightly decreased. Forecasts for 2025 suggest either flat or marginally declining profitability, reflecting the challenges even this division is facing.
Alongside the sale of ContiTech, Continental is preparing to list its automotive components division on the Frankfurt Stock Exchange in September 2025. This move is also intended to improve transparency around the performance of its separate business units and to create additional value for shareholders.
