Continental AG plans to split up its business

German multinational to spin off its automotive division

Move aims to 'harness full value potential'

German multinational Continental AG is planning to split up its business, separating its automotive division from its other operations. The move is aimed at "harnessing the full value potential" of both divisions, the company said in a statement.

The automotive division, which includes technologies for passenger cars, commercial vehicles, and industrial vehicles, has been struggling in recent years. The company has been hit by falling demand for cars in China, as well as the rising cost of raw materials.

The spin-off would create two independent companies: Continental AG, which would focus on its automotive business, and a new company that would focus on the company's other operations, such as tires, hoses, and cables.

The move would require the approval of Continental AG's shareholders. A vote on the spin-off is expected to be held at the company's annual meeting in 2024.

Continental AG is a longtime partner in a wide range of industries, providing technologies for passenger cars, commercial vehicles, and industrial vehicles. The company is also a major supplier of tires, hoses, and cables.

The planned split-up is a significant move for Continental AG, and it could have a major impact on the automotive industry. If approved, the spin-off would create two independent companies with different strengths and weaknesses. It remains to be seen how the two companies will fare in the competitive global market.