Conti Restructures, Readies IPO for Powertrain Unit

Continental AG is restructuring as a holding company and preparing to launch an initial public offering for its Powertrain division.

The company says it will reorganize its powertrain business into an independent legal entity by early 2019, give it a new name and launch a partial IPO for the unit at mid-year. Conti emphasized that it has no plan to give up control of the business.

The overhaul will turn Continental AG into a holding company with three business sectors: automotive, powertrain and rubber. CEO Elmar Degenhart says the restructuring aims to maximize the company’s ability to compete as the global auto industry undergoes its most profound transformation ever.

The company’s automotive operations will be renamed in 2020 as Continental Automotive. At the beginning of that year, the unit’s Chassis & Safety division will become Autonomous Driving Technologies, and the unit’s Interior business will be renamed Vehicle Networking Technologies.

Conti will centralize its automotive r&d functions, bringing together at least 12,000 software and hardware engineers.

Conti’s Tire (eventually to be renamed Tire Technologies) and ContiTech divisions will remain independent but report their financial results through the company’s Continental Rubber group sector.