Continental AG's supervisory board has unanimously approved the company's proposed organizational overhaul.
The executive board had decided on the reorganization on July 18, and the supervisory board's approval sets the plan in motion to create a new holding structure under the "Continental Group" umbrella.
“The supervisory board supports Continental’s rapid and profitable growth," says Board Chairman Wolfgang Reitzle. "The early and foresighted realignment of the organization opens up new possibilities and adds value for the company. It makes Continental even more competitive permanently. That is why the supervisory board has unanimously agreed to one of the largest organizational changes in the history of the company."
Continental CEO Elmar Degenhart says, “In light of the profound transformation in the automotive industry, we scrutinized various scenarios for a realignment in the past months. We do, after all, want to continue to grow faster than our relevant markets. Furthermore, we see new potential for expansion in the key future areas of mobility, and we are going to take full advantage of it."
Degenhart says the board's decision means the company is "creating additional value for our customers and are heading into the future of mobility at full speed."
Under the new Continental Group umbrella, the company's business will be divided into three sectors: Continental Rubber, Continental Automotive and Powertrain. The Powertrain division will be transformed into an independent legal entity under a new name by the start of 2019. A partial initial public offering is expected mid-2019.
For all the details of the reorganization, visit: Continental Announces Reorganization With an Eye on Increasing Sales.